WHEAT FREIGHTS

Evening Star, Issue 19017, 12 August 1925, Page 5

WHEAT FREIGHTS

NO CONCESSION POSSIBLE COMPROMISE OH MEAT AND STOCK [From Our Paultamextahy Reporter.] WELLINGTON, August 11. In explaining that the Government has not made any change in the Railway Board’s proposals regarding the freight! on wheat, Mr Coates, Minister of Railways, states that this commodity was partially exempted from the 40 per tent, increase that was made on pre-war goods rates, the increase thereon having been fixed at 20 per cent, instead of the general rate of 40 per cent. Other classes of grain were subjected to a general increase, and it was considered that circumstances did not justify the anomaly that was caused by differentiation in respect of the charges on wheat. “ Class E rate, at which grain is carried, is an extremely low rate, being only very slightly higher than that charged on commodities of such small value as sand, gravel, etc. The average distance that wheat is carried is also comparatively low, being only fifty-three miles, and the amount of the increase on this distance amounts to only 1-od per ton, equal to 17-40tlis of a penny per bushel. It will be readily understood that a concession at this rate distributed over all persons who have wheat transported by rail is quite negligible, but as being felt by the department in concentrated form it lias a material effect on the department’s finances.” MEAT AND STOCK.

In his statement allowing the final decision on the new railway tariff, the Minister, dealing with freights on meat and live stock, says; “ The board’s proposals in connection with rates on frozen meat involved, the removal of the concession of 25 per cent, on prime frozen beef, and of the exemption of 30 per cent, from the 40 per cent, increase that was made in railway rates during the war and post-war periods. It was ppinted out. however, by the Meat Board and other representatives of the freezing industry that this would have a very disturbing effect on the industry, particularly as affecting inland freezing works. It was emphasised that the relation of rates on live stock to those on dead meat _ already placed these works at some disadvantage, and, it was urged that if this handicap were increased, as proposed in the new tariff', it would practically mean the closing down of a number of these works. It was generally agreed, however, that the meat-produc-ing industry { except possibly those branches of it connected with frozen hoof and pork, was in a position to make an increased contribution to railway revenue, and after full discussion an arrangement was arrived at whereby the rates of live stock should be increased by 7£ per cent. Pigs were excepted from this increase, as it was urged that development of tho pig industry involved very groat possibilities from a, dominion point of view, as there was no reason why this industry, as a counterpart to the dairy industry, should not ultimately develop into a very valuable on?. It was urged that, owing to keen competition (from tho Argentine particularly) the hoof industry, which was a very essontial_ one to the dominion, was not in a position to hoar any increased charges, and that it required all the assistance that could be given it. The concession that has hitherto been allowed only on prime beef has been extended to cover all hoof for export, and the rates on frozen mutton, lamb, 'and pork have been retained at practically their old level. Even with the proposed increase, the rates on live stock in the dominion will still compare more than favorably with those in operation in the Australian States. In this case also the increased revenue from the new proposals is estimated to be approximately tho same os would have been received under the board’s original proposals.”

HO MARGIN FOR REDUCTIONS £65,000 ADDITIONAL REQUIRED. [Per United Press Association.] WELLINGT'ON, August 12. Commenting on the railway tariff, the Prime Minister points our, that the department has to bo placed on a business footing, and the Commission had shown that there was no margin for a reduction In rates unless by so doing more traffic could be secured. Owing to the rise in interest, increases in superannuation, and other causes, an estimated additional ,C6o,UUU would be required for the current year. With regard to coal, discus-don centred largely round New Zealand smt coals. The owners recognised that the department was entitled to reasonable remuneration, and agreed that, there should ho an increase spread over ilia whole traffic, both for long and short distances, so that at no point should the position of the mines be jeopardised. As to distant markets, the rates on live slock, except pigs, would be increased! 7} per cent. Even ibon they would compare more then favorably with the rates in Australia.

Slight concessions would he made in newspaper privilege tickets by allowing them to be used by newspapers publishing less often than once a week, and iu the rates on commercial travellers’ luggage. Sir Coates expresses pleasure at the reception given the land' and the general admission that lids difliniit matter had boon handled wit hour pressing with undue harshness on the general community. '' ' • coal

OTAGO GOALS WILL RISF 111 PRICE (hie of the leading men in the co;d trade spoke as follows this inorning when asked as to how the alterations would affect the industry in Otago and Southland: — Somewhere about. 100-i the Railway Department brought in a special tariff for coal carried for distances over seventy-five miles. This remained practically unaltered until the railway increased its charges on account of the war, when the railage on coal was increased by 40 per cent. Thai, made the raihme on coal up to seventy-live miles rougfily equivalent to IJd per ion. Beyond that distance the railage fell to slightly over id per ton per mile. The department maintained Unit when the conditions were altered through higher wages and shorter hours in the service all coal carried beyond scve.nty-fivc miles was at a loss to the department. Tho new tariff brought out by the .Railways Board proposed that the special rate beyond seyonty-five miles he abolished, and tha.t_c.oaf be carried under tho original tariff plus 40 per - cent, —that is, class Q. The of tho Waikato and Southland collieries have resulted in tho board modifying its proposals by increasing tho railage on all coal up to 100 miles by an amount varying from Is to 2a per ton, and that the special long-distance rate will be maintained with this addition: that a charge of 2s per ion will be put on to all coal carried ](JO miles. .Had the board’s proposals been put into effect, coal to Dunedin from all points between Gore and Oamaru would

have remained at the same price to' consumer. I* Under the arrangement announced this morning all coal delivered in DunA 1 edin will be increased in price, on ao 1 count, of the railage, from Is to 2s port ton —that is, the coal that comes from places between Gore and Oainaru. You can boil it down to this—that under the hoard’s original proposals Knitangata, Tnratn, Waronui, Green Island, and Shag Point coals would have stood at the old price. Now! however, those coals will have to bear an increased railage of as near as we can tell from the announcements so far made Is fid per ton. We had hoped that the new arrangement would help us in the South. It would not have affected the railage of Otago coals to Dunedin, and at the same time it would have got the Government out of the difficulty of carrying at a loss. _ ■ The manager of another firm stated that the modification of the Minister’s original proposal came as a great surprise to those iu the trade. Ihe tariff on Southland coal would now amount to at least .is per ton, and, of course, the increase would he passed on to tho consumer. The rates on coal would be increased by Is Ga, and if this increase was passed on it would mean that Knitangata coal would now be sold at the same price ns Southland* there previously having been a difference of Is 6d to tho advantage of tho latter. Under the original proposal neither the tariff on Knitangata or Waronui coals would have been increased; but this naturally did not appeal to the Southland concerns who had waited, on tho Minister, and, no doubt, succeeded in having the altera-, lion made. MORE INFORMATION WANTED. • Local traders are awaiting more definite information about tho proposed ’ tariff, iis business men seen to-day stated that, although the original proposals had boon discussed «uk! general approval given to them, modifications had been made in certain directions, and until more specific information came to hand they could not be expected to say anything about the matter.