“UNDUE BURDEN”

Dominion, Volume 24, Issue 66, 11 December 1930, Page 10

“UNDUE BURDEN”

Railway Competition CARRIERS PROTEST Need for Co-operation The difficulties being experienced by master carriers throughout the Dominion as a result of competition from the Railways Department were placed before the Minister of Railways, Hon. W. A. Veitch, by a deputation yester day morning. Speakers urged upon the Minister the need for greater co-opera-tion between carriers and the department The Minister expressed the opinion that suitable transport legislation would do a great deal toward overcoming anomalies, and he promised to give attention to the question of doing away with unnecessary waste through competition. Mr. A. J. Curtis said the interference of the Railways Department in the carriers’ business had been considered at a conference held that morning. The department was launching out on a system that would Interfere with the legitimate business of the carriers, in spite of the fact that they served as feeders to the railways. The carriers had been asked by the department to lower their charges for the carriage of goods, and it was felt that the time had arrived to call a halt in this respect.

Aiding Merchants.

The department had reduced the freight on goods between Wellington and Palmerston North to £2 a ton on certain classes, and this included the carriage of goods to the railhead. Allowing for this and overhead costs, tt was probable that the department was not receiving more than 30/- a ton on goods carried between Wellington and Palmerston. In the past the carriers had assisted the Railway Department, but instead of them being helped in return, the department was now aiding the merchants. The carrier was being asked to carry a burden which he should not be called upon to bear. Following upon the action of the department several carriers in Palmerston had had to reduce their wages by half and if they refused to lower their charges they would be liable to be thrown out of business altogether. Reference was also made by Mr. Curtis to the Railways Department entering into competition with customhouse agents and he remarked that the department did not have to, pay the same fees as did the carriers.

The fact that heavy traffic fees wdre falling heavily on the carriers was emphasised by Mr. W. Stevenson, of Invercargill, who said that the carriers were entitled to some consideration in view of the fact that they had stood by the department in the past. He expressed the opinion that the Government should tackle the whole problem by bringing down a comprehensive Transport Bill. Mr. E. Smith said that many carriers had been threatened with direct competition by the railways if they did not bring down their charges. The carriers were of the opinion that co-ordination in transport was a primary consideration in meeting the difficulties that has arisen. Forced to Reduce Prides. The Minister said that the successful competition with the railways being carried out by private enterprise between Wellington and Palmerston North had led to the introduction of the new system. The department had been forced to reduce its prices to meet that competition. He realised that the carriers had been “playing the game” with the Railways Department. • The fundamental weakness with the heavy traffic fees system was that motors that served the railways paid exactly the same as dicl those that competed with them. This meant that the carriers who had in the past made it their policy not to compete with the railways were being penalised, and this state of affairs was absurd. Justice had not been done. It was obvious that heavy traffic fees should be adjusted in the interests of the railways so that those who helped to avoid national waste should not be penalised and those who were responsible for unnecessary competition with the railways should be discouraged in their business. Co-operation Welcomed. Mr. Veitch said he was a firm believer in co-ordination, and he urged the carriers to study the transport legislation already introduced and to give their opinions on it. The Government had already made a start on the preparation of its legislation for next year and he was sure tHixt the Minister of Transport would welcome any suggestions that might be made to him. Referring to customhouse agencies, the Minister said the railways had been forced to go to the customhouse for its business in order to meet competition from private interests. The department had no desire to compete unduly with the carriers. Transport legislation, would go a long way toward eliminating that competition. 'He appreciated the loyalty of the carriers to the department and he looked forward to the time when they would be able to work hand in hand with the department. He could, not give a definite reply at once, but if he were supplied with facts and figures he would investigate them carefully.