THE RAILWAYS

Evening Post, Volume CVI, Issue 90, 13 October 1923, Page 13

THE RAILWAYS

FREIGHTS AND BRANCH LINES

STATEMENTS BY THE MINISTER AND GENERAL MANAGER.

Continuing hig tour of the Taranaki district, the Hon. J. G.Coates, accompanied by Mr. R. W. M'VMy (Geneml Manager of.Eailways), Mr. A. T. Markman (Secretay of the Post and Telegraph Department), and other, departmental officers, arrived at Eltham by train, and were given a civic welcome "at the Borough Chambers on Wednesday. Replying to the welcome and to deputations, the Minister and the General Manager of Railways made some important statements in regard to freights: branch lines, and the Government policy relating to railways ' Mr. R, W. M'Villy gave some inter-' estmg records of the freight on butter since 1895, when the dairy industry was in swaddling clothes and when the Gov eminent decided to give a reduction in freights. The Government wanted always to help struggling industries. At that time the railways cost 4 S 2d per mile to run, whereas now the cost was 14s 3d. He added that, even assuming that freights had gone up 132 per cent.t the cost of.running had gone up 200 per cent. Until 1917, he said, no increase had been asked, but then' the necessities of nnance demanded ■an increase and- the rates were raised 10 per cent' and again in 1918 another 10 per cent! He referred to the huge amount of increased cost caused by the fact that railway employees secured increases 'in wages that totalled £1,000,000 per annum, and that for shorter hours of work He considered, it wa - B notVr'easdnablo""to ask reduction, considering the grcai; value of the produce" and the service rendered.. Tho avorage freight worked out at one-ninth of a penny per-pound for an average distance of 48 miles, and it was asking the impossible to expect^ reduction. The freight on presentprices o£ produce represented only onenmetieth part of the cost. The question of rates gave matter for serious though to the heads of the Department, and if the cost of running the railways had remained'as it was years ago it would have given him the greatest happiness to grant reductions. The better position shown in railway finance was brought about by rigid economy, and the expenditure had always to'be looked into very carefully, just as the revenue had to be fostered with equal care until times are better. He urged, in conclusion, the fact that for somany years no increase had. been made. Referring to. freight on road-making materials/ he said that metal was carried at a huge loss annually, and they saw metal going in to make roads.to allow lorries to compete with . the rail, without any extra charge. But freight- on metal was fixed at this low rate to assist local bodies. The idea, of the roads was to enable the farmer to get to the {owns, to feed the railways, and ,to increase settlement.. He had to give mighty close consideration to all proposals to reduce freights on materials so long as lorries were allowed to use the roads free of charge. The rate oh bitumen was low, and one of which the counties could not complain. .: - - ... .■'■■•'

"ON A BUSINESS. FOOTING.'

Subsequently, speaking at Manaia, and alluding to the request for the construction of a branch, line, the Hon. Mr. Coates said if Manttia would not give {heir business' to the railway, it would not Day to run the lino, for manures and lime would not keep it going. If there is a dead loss to the country by running the line, what, he added, would the country say? As a plain fact, he added, the whole matter was in their hands. If custom was available the Department -would go for it, for they were out for business all the time. He was expected to see that the railways paid, and at once he was asked to reduce rates of freight.. It was not fair and reasonable to ask that they should risk the line to Manaia while someone, else should pay for it. He hoped it would be possible to grant a rebate to produce. While he was Minister of Bailways he was going to carry out the work on the principles he had laid down, and no. lines would be laid where there, was not a reasonable prospect of them being payable. He must see income beat expenditure ■ before rates could be reduced. He knew Manaia was keen on the line. They wanted to benefit, but they must give the return. He believed there were districts where the lorry could be used more cheaply than railways, and there they must be used. He suggested that the proper method was for inquiry to be mads to see what business could be cot and then they could talk business. He must see what the dairy companies could offer. He was anxious to do the right thing, and was not afraid to tell them exactly what he thought. If " the district would make an agreement to give their business to the railway so as to ensure a good return, then only could they expect fa curable consideration He would sooner be badly thought of by the people than fail in his duty to the country. Some lines would never pay, and all should be considered on a business footing. Mr. E W. M'ViUy stressed the fact that as General. Manager it was his duty to carry on the service • efficiently and economically ■ m the interests of the country as_ a whole. Everyone had a &40_share m the railways, and on behalf of the people generally he was resisting demands to get services at less than cost. The cost of a small branch line as Manaia would be very heavy, and as much as a main line, and the revenue not large. There were 26 branch lines not paying their way, and costing the country a. matter of £234,000 plr anT™' *iSI *n .axi°m in railway circles^thsat^good roads served better wrthin twenty miles of a main line, and on these small branch lines it was his deliberate judgment that they had no chance of paying" their way. However as suggested by the Minister, arrange^ mentswould. be made for the oommfrcial agent and the Public Works emrinn! r 00*" 16 the district and.mike the fullest and most complete inquiries, so that a definite pronouncement can be made on the subject..