RAILWAY FREIGHTS

Dominion, Volume 31, Issue 163, 6 April 1938, Page 17

RAILWAY FREIGHTS

Reply To Palmerston North Request Dominion Special Service. Palmerston North, April 5. Stating that though railway freight rates between Wellington and Napier were cheaper than from Palmerston North to Napier, and that the position was brought about through intense road competition, a letter from Mr. G. H. Mackley, General Mnnager of Railways, in reply to a request by the Palmerston North Chamber of Commerce for adjustment, was received at to-night s meeting of the chamber. The department regretted that no alteration could be made at present. The letter also suid that road competition compelled the department to reduce its freight rates to compete with other services, but the relatively small volume of business from Palmerston North to Napier did not warrant a reduction in charges. 'l'lie secretary. Mr. S. I. McKenzie, reported that the general manager s letter had been referred to the local firm from whom the request originated, and its reply stated that the fact that the railways were operating at cut rates and at a loss should be viewed with alarm. As road services were being taken under control an early return to payable standard rates should be expected; then the department could give equitable treatment to its taxpaying supporters. The chairman Mr. A. J. Graham said that- the anomaly put Palmerston North manufacturers' at a distinct disadvantage. The chamber decided to pursue its request to the department to forward the firm's letter to the general manager with its endorsement.