RAILWAY FIGURES.

Evening Star, Issue 23292, 14 June 1939, Page 5

RAILWAY FIGURES.

TO THE EDITOR. Sir, —“ Traveller’s ” comparison of railway revenue is enlightening, but 1 think he is wrong when he says that the Government has resorted to what it blames private business for. The Government has only raised its prices by 10 per cent., but private businesses have raised them in many cases from 20 to 40 and in a few instances to 50 per cent. What the Government aims at is to prevent prices rising more tha nwages. The trouble is that “ those who nave raised their prices

out of proportion have reduced purchasing power from the business and industry which have raised prices to a reasonable level, and if a big enough proportion of goods are raised m price out of proportion, it will create an all-round reduction in purchasing power.” If the Government can afford to raise its prices only 10 per cent, and show increased profits, why cannot other industries do likewise? In some cases the retailer charges double what the manufacturer charges; in other cases the manufacturer finds his costs increased, because_ the material has rise/i out of proportion before he deals with it.—l am, etc,, June 14. A. Hall.