TOPICS OF THE DAY

Evening Post, Volume CXIII, Issue 142, 20 June 1927, Page 8

TOPICS OF THE DAY

Speeches and statements by members of the Railways Board give an indication of the problems with which the service is grappling and how it is meeting them. The pressure of motor (J^mpetition is severe, and naturally it is most felt in those sections of the transport business which have hitherto been most profitable. The motors are taking the cream of the business, leaving the railways with their skim-milk. This process cannot go on for ever. The railways cannot carry on if they are loft with only those sections of transport which the motors do not want— the carriago of workers at a farthing a mile, coal at threc-fa*things a mile, and race and show traffic which, demands an elastic organisation for its handling. The Board members suggest two lines of approach to the problem: (1) equitable regulation of the competition; (2) improved railway service to win back and retain the traffic. The first measure must be applied sooner or later. If the railways are not maintained in profitable operation the public will pay by the loss of those services in suburban and long-distance transport which are essential to the community., But profitable operation cannot continue on an inequitable basis. Wo are not greatly enamoured of the method which has been, applied to the control of motor-bus traffic in competition with the tramways. It lends itself too easily to measures which stifle healthy competition. Between this extremo and the equally undesirablo scheme of uncontrolled . competition, however, there should be some mean which will truly conserve the public interest. The first step,' in'- pur opinion, is to put the permanent way charge upon a proper basis. It is not fair to the railways, nor to the public, that the trains should be loaded with the whole cost of the lines'on which they run while the rival service has a permanent way constructed in great part at the public expense.

In applying either taxing or regulative measures, however, the aim must be to place both forms of transport in their proper place. Monopoly and undue protection are as much to be avoided as'unregulated competition. It is fair that there should be a more reasonable division of patronage. The motors should toko some of the skimmilk with the cream; but if the whole can of milk is locked up and labelled "Railway monopoly" it may go sour. There must be a measure of regulation, but such a measure that the railways' and the motors will be kept in healthy, though not wasteful, competition. ''Experience proves that this is necessary. A monopoly service, however closoly watched, becomes careless of its patronage. Tho Railway Department is not careless now. It is applying its bost efforts to rogain patronage, and tho improvement, as business men and travellers ecknowledgo, is noticeable everywhere. Greater offorts 'aro in prospect under four main headings, outlined by Mr. Mason: (1) speed; (2) comfort; (3) convenience and safoty. It would be bad policy to apply protection with such liberality "as to remove the incentive to improvement. But itois equally bad policy to tell the railways: "You should improve' tho service and carry on. We aro going to make good roads for the motors and expect you to compete with us on the old terms." It is good to make the railways fight for business, but tho contest must be on conditions that give a fair chance of winning.

Extension of tho hire-purchase system to articles of luxury, in the opinion of some members of the Auckland Chamber of Commerce, is a menace to the prosperity of the Dominion. Hirepurchase is not, of course, the same as the simple instalment system. Only certain classes of goods having a substantial value can bo dealt with undor registered hire-purchase agreements. The trader who sells other wares by instalments has not the protection of an agreement which assures him legal ownership of the goods until the last instalment is paid. The protection of tho trader by law has been extended quite rightly to those articles which are necessities—furniture and various classes of machinery. It is recognised that trade and production may be reasonably encouraged by' enabling would-be purchasers to obtain tho use and benefit of such goods though they may not be able to pay'the full price at once. If it were not for the instalment system of buying in one form or another, life would be much more restricted. Fewer people would be in possession of houses, farms, furniture, pianos, and many other things. To some such people the instalment system is a wonderful boon. It does not encourage them to waste, but it helps them to save. The shillings a week which they pay on the piano would go

otherwise in something having Icbs enduring valuo. Yet ovon applied to substantial purchases the instalment system may be abused. It is abused when a man obtains possession of a farm though he has insufficient capital to work it, or when he ib tempted to buy a luxurious house or something else •which is beyond his meajiß. It is much moro abused when it is applied to the purchase of articles which have no enduring value.

It cannot bo denied that soino people arc tempted to buy what they would recognise as beyond their means if they had to pay cash. While times arc good they can keop up the payments, but whpn bad times como they are weighed down by tho instalments. It is useless advising such people to refrain from extravagance. There are always some who will buy while anyI ono is willing to sell. In great moasure the remedy lies in tho hands of the traders. They can control the system so that its useful features are retained and its abuses limited. There is, however, another means of counteracting tho ill-effects. Ono of tho results of the system is that some capital which would otherwise be available for reproductive enterprises is invested instead in articles which produce nothing. A man who buys £50 worth of luxuries by instalments might merely waste tho money if ho did not buy; but he might save it by investing in some good security. There can be little doubt that, if all the" money now spent in luxuries were to be added to the national reproductive capital, tho complaints of lack of money for development would quickly cease. How can/this capital bo secured? One means is by adopting the-methods of the instalment sellers and enabling buyers to save by small instalments. Of course, ,they can do so now by the savings banks and the purchase of saving , certificates. But the - opportunities are not put before them as plainly as they might be. There are private organisations' also—-such as insurance companies—which sell capital by instalments; but generally it may be said that they do not push their wares with the salesmanship and art which are used by the vendors of luxuries. During the War there was an attempt to apply such methods in the sale of War Saving^Certificates, and it was highly successful? Even without the direct inducement of patriotism, similar methods now should meet with some success. * * .-*■ ' * ■ *■ '■ ■* Particulars of the scheme for continuing Lincoln College while yet establishing an Agricultural College in the North Island have not yet been made public; but a speech by the college director, suggests that Lincoln will continue its grain research and instruction in arable farming. To such an arrangement there can be no great objection. Indeed, it is advisable that j the research should be carried out in the area to which it relates, so that there may be the best facilities for study and instruction. But it will |be necessary, nevertheless, to watch ,the procedure closely, in order to j prevent overlapping and the expense; entailed by duplication of effort. The complete agricultural research scheme will make full use of the assistance of Lincoln, the Cawthron Institute, and other institutions. But if the best | results are to be secured it is essential I that there should be some central body charged with the duty of co-ordinat-j ing all the work, and directing the instruction. If each institution is allowed to develop according to its own ideas it will be impossible to avoid wasto; and the return from expenditure will be reduced. In time there may be funds and work for two fully-equipped I colleges, but until that time arrives it is highly inadvisable to divide effort and money to produce two imperfectly co-ordinated institutions.