THE BOOMERANG

Hawera Star, Volume XLVIII, 17 December 1924, Page 5

THE BOOMERANG

CUT RAILWAY RATES,

HAVE OPPOSITE TENDENCY. TO THAT EXPECTED. Some time ago the Railway Department decided, in order to meet the competition of motor lorries, to cut transport charges for produce between certain points, such as between Palmerston North and Wellington. Dairy factories outside these points, instead of utilising the railway, have actually enr gaged motor lorries to convey produce to the nearest point where the cut rates prevail. The good intentions of the Department have, therefore, had a boomerang ten-

dency. (By Telegraph—Special to the Star.) WELLINGTON, .Dec. 17. The Railway Department’s policy of making special freight rates to meet motor competition has had remarkable and unforeseen results in the Manawatu and Taranki districts. Your correspondent is informed that as motor competition is very severe between Palmerston North and Wellington for dairy produce transport, a partieularly low rate to Wellington is quoted to dairy factories using the railway. Those situated beyond the competitive area do not share in the benefit, but some groups of dairy producers, resenting this partial treatment, have utilised motors for transit to the rail point which brings them within the range of the special low rates. Thus the Department’s efforts to drive the motors off the roads have,. in some cases, had the result of encouraging their use even on a wider area. Examples of this kind are reported from several parts of the Manawatu and Taranaki districts.