DAIRY FREIGHTS

Hawera Star, Volume XLVIII, 4 December 1924, Page 5

DAIRY FREIGHTS

140 PER CENT. INCREASE. . PRODUCERS’ CASE. BEFORE RAILWAY COMMISSION. [A strong case for a reduction in railway charges on dairy, pro- : duce was made before the; RaU- ; way Commission yesterday, when the secretary of the Dairy Control / Board emphasised the fact that, ' with Denmark, Australia, the Argentine and eventually Siberia as competitors, cheap freight charges were absolutely essential. The ’ cheaper facilities afforded by road transport in some instances was also mentioned.] , (By Telegraph.—Special to Star.) ; WELLINGTON, Dec. 4. • Tlie principal point submitted to the > Railway Commission yesterday by Mr. T. C. Brash, secretary of the Dairy | Control Board, was an objection to the 140 per cent, increase in railway freights on dairy produce. Mr. Brash ; said that, the .dairy producers did not make much objection to an increase in ■ railway freights on dairy produce at a time when the rates were largely increased. Producers were then receiving very gobd prices—almost double what they were getting to-day. It was felt now, however, that there should be a reduction, because of the increased cost of production, due to increased wages and other charges. Witness gave a number of instances of heavy railway freights on dairy produce, including sections of th e line north of Patea. In. 1911 freight on one section was 5s lid a ton; on which there was first imposed an increase of 10 per cent. Sir Sam Fay : Would 22 miles be the average length of the haul for dairy produce? - Witness replied in the negative, and added that increased rates on those stations had been approximately 130 to 140 per cent. There was no harder worked class than dairy producers, who worked long hours. Their families assisted in the work, and they got a very low rate of wages. It was felt that the increase, compared with increased charges on other classes of produce, was too great. As he had said, it was roughly 140 per cent, on what they were paying in 1914. . The net return to the dairy producer for butter was less to-day than it was in 1914; therefore • they felt they .were entitled to special consideration. ; MOTOR COMPETITION. Witness gave instances of lower motor cartage charges than railway charges. Sir Sam Fay: Can these motors actually. take traffic 22 miles at 6s 9d per ton? . . . Witness: Yes, they are doing it under contracts actually in existence. Witness gave further instances of the differentiation in rates on several kinds of produce. : It was agreed, he said, that railage must have some relationship to the value of goods, although shipping companies said they could not argue from tliat point of view •at all. He, thought that railway companies. all over the world took into consideration the cost of the produce carried. Continuing, witness said that m the case of cheese loaded at stations where there was a stationmaster, and consigned through to Wellington, the Railway Department took no re* sponsibility for cfates of cheese going astray. It was felt that where cheese was lifted from flag stations there was some excuse for the attitude of the Department. He admitted that the provision of trucks was fairly satisfactory. Sir Sam Fay: Has the geenral effect been to transfer the traffic from rails to road, or a very large proportion of lt» P. * . Witness thought he was safe in saying that prior, to 1920 there was no cartage in competition with the rail--way. ; Sir Sam Fay:.lt is a very difficult problem dealing with the produce of the country. Witness: Yes, we recognise that it is a very.knotty problem. All we ask for is fair and reasonable consideration. “I am afraid,” said the commissioner, “we cannot be here long enough to devise for produce a scale of rates that would be satisfactory to all. Ido not suppose anyone ever did produce scales of rates that would be satisfactory . If you say that the effect of the rates is to drive traffic from the railways to the roads it is in the interest of the Railway Department to meet it.” \\itness: They are now taking up the attitude of meeting the competition. 11l reply to Sir Sam Fay, Mr. Brash said he admitted that the increased freight quoted represented only a small fraction per pound of butter for the distances mentioned. Th e producers were fighting also for • lower ocean freights. Every small reduction brought them nearer to' a point of a better margin for the producer. Sir Sam Fay: Your main competition, I suppose, is from Denmark. Witness: At the present moment, I suppose, that is so. There.is a fairly large output from Australia this year; the Argentine trade is growing, and eventually, no doubt, Siberia will become a competitor. Sir Sam Fay said the commission would give the representation of the dairy producers their best consideration. It was, however, a very difficult problem for the Railway Department to face. Brash: We do not ask for a reduction lightly, but we feel that an mcrease of 140 per cent, is a little bit heavy.