THE RAILWAYS

Evening Post, Volume CV, Issue 146, 22 June 1928, Page 8

THE RAILWAYS

LIFE BLOOD ARTERY ■ / - ___ (By Telegraph.) (From Our Special Reporter.) PALMERSTON N., This Day. Tho part which the railways have played in the development of the country was referred to by the Prime Minister (the Right Hon. J., G. Coates) at the smoke concert of the Manawatu and West Coast A. and P. Association at Palmerston North last night. "It is all very well," paid Mr. Coates, "to talk about the railways and say they are losing- so many hundreds of thousands of pounds a year,! but there is one point that is overlooked. The railway system is the life blood artery of the' trade and commerce of the country. (Applause.). Could you do without them? Of course you couldn't, and I am sure I am safe in assuming that that is the opinion of you all. The railways have been up. against a difficult period. We havo been going through a settling down process. We have to take these matters as they come, and take them steadily, and I believe that in the end the railways will be found to bo the most economic form of transport for the primary producer." , Mr. Coates said there was a good deal of misunderstanding about tho non-pay-ing lines, and it was said that the 'Government was paying a subsidy to those lines. That was not the position at all. In an ordinary .firm, the non-paying lines would be ripped up, but it was not possible for the Government to do that. It was essential in the interests of the country that those branch lines should' be kept open. The Prime Minister said the Railway Department was building up a renewal fund, which now amounted to over £1,000,000, and generally every endeavour was being made to place the Department on its own feet and to give it the incentive to run its business on commercial lines.