MR MAXWELL'S REPORT.

Evening Star, Issue 7472, 16 March 1888, Page 1

MR MAXWELL'S REPORT.

The report of Mr Maxwell, general manager of railways, of his recent examination into and inspection of the railway systems of Europe and the United States is a very able document, and especially interesting in the comparison he institutes between the working of the lines in New Zealand and the latter country. The facts he cites in explaining and illustrating his subject should tend to remove the cotwebs which obscure the mental vision of politicians and others who will have it that the States are a veritable paradise for the working man, who there, under the regis of Protection, secures constant employment at a high rate of wages. We have over and over again asserted that this is very far from being the oase; and now we have the evidence of a purely disinterested, unprejudiced witness, who gives details as to wages and hours of labor in explanation of one phase of American railway economy. In the States, says Mr Maxavell, the usual practice is to work ten hours a day; whilst unskilled regular labor on tlie eastern

side of the continent "seldom com- " mands much more than Idol (4s 2d) " a day." In the West, and notably on the Pacific slope, where population is scanty and where mining prevails, wages are higher; and "unskilled " labor is paid as high as 18 cents an "hour"—i.e., 180 cents, or 20 cents short of 2dol—for the day of ten hour?. But it is important to note that cheap Chinese labor is much resorted to, especially in heavy consti-rctive works. Mr Maxwell compa.es these rates with those paid for unskilled labor on the New Zealand railways—6s 6d a day of eight hours being as nearly as may be 19 cents an hour. Considering that under the established fixed system every article, except the barest necessaries of life, is much dearer in the States than here, the condition of the laboring man must

be very considerably worse, take it for all in all. Mr Maxwell declares that " there is perhaps no element connected " with working railways which affects "the expense of working more than " the rate of wages." In our system, he says, wages "probably absorb "£500,000 a year out of £700,000 " expenses." Comparing the character of the traffic on New Zealand and American lines, Mr Maxwell very satisfactorily demonstrates that, from a variety of circumstances, our railways cannot be expected to return large profits. There are numerous ports, and no part of the railway system is anywhere as much as 100 miles distant from points of water competition, whilst nearly all the best productive country is nearer than this to a port, and the larger centres of population are all situated close to ports. " This, from " a colonial point of view, cannot but "be a source of congratulation, but it "is not conducive to large profits on

" railways." The argument is, indeed, irrefutable; and it was an absurdity to construct the main trunk system in this island parallel with and close to the coast, where the competition with sea carriage was inevitable, instead of taking it through the interior, opening up the country, and connecting with the ports by branch lines. Notwithstanding, however, the short average distances that traffic is carried, Mr Maxwell asserts that, "as a "general rule, New Zealand settlers " and producers obtain all their goods "and despatch all their produce to "market much more cheaply than "is generally the case in the "States." He enters very fully into the question of the carriage of wheat, and affirms that under existing conditions the cost of transit from country stations in New Zealand to England may be approximately placed at 34d to 39d per ton, against the charge to American producers in the Central and Western States of from 40d to 60d a ton. It is " within the

" capacity of New Zealand so to regu- " late charges as to retain this advan- " tage, provided that sufficiently low " sea freights are obtainable "; but he maintains that the short distance rates on the railways do not admit of reduce tion if any profit is to be realised at all. It would be far better, however, he adds, speaking generally, for the colony "to look to getting the re- " moter land under cultivation, rather "than to be striving merely to make, "direct interest on the railway "capital. The colony ought to be "prepared to face this question, and "to realise that, with our small "population and high wages, very low " rates and high profits cannot be oh- " tained. With wheat as low as it is "now, we ought to be prepared to " make sacrifices if necessary." These are words of wisdom, dictated, evidently by sound experience. Whilst it is no doubt desirable that the railway system should be worked with

most oavef ul economy, it should at the sa.i»e time be recognised, both ia the administration and in judgment thereupon, that to pay interest on the cost of construction is not the first object, which should be the development in every possible legitimate manner of the resources and trade of the colony. The only remedy for the depression which appears at all reasonable or likely to be successful is the extension of the field of production. Mr Max well contends that a New Zealand settler is much better off as to railway freights than is an American producer, and is "in a favorable position to " compete with the United States ia "the European markets." If this indeed be the case, there would appear to be a practically unlimited market

open to our produce, especially as the average yield per acre under wheat culture is double that of the United States. Mr Maxwell attbrds no encouragement to the idea that additional revenue should be attempted to be obtained by raising tariff rates under any scheme, differential or otherwise. Public opinion is, however, so distinctly opposed to such a course that the discussion is quite unnecessary. If is rather in the other direction, especially in regard to passenger fares, that reform is looked for; and we believe that in respect to these the revenue •would profit by a considerable reduction on the longer distances. There is no doubt further that the rates charged on produce for shipment should be regulated with consideration to the circumstances prevailing in the outside markets, and that the " capacity and means of the com- " petitors in the colonial markets should

"be closely scrutinised." Everyone will agree with the very sensible remarks of Mr Maxwell relative to improvements, that these should run concurrently with increased population. "At the present time our railway " system and appliances, with a few " exceptions, are far greater than the "present population can properly "utilize; and one of the essential " points to be observed in the future, "if economy is to be practised, is to limit the extension of railways until "the population is greater, and to " abstain from outlay on works, accom-

"modation, and appliances which " often are not only not needed but are "positively objectionable from a public " as well as from a departmental point "of view, and which add to the ex--11 pense of maintenance and working «' without bringing any additional re- " venue or traffic."