RAILWAY REFORMS.

Hawera Star, Volume XLV, 1 July 1925, Page 11

RAILWAY REFORMS.

AN ACTIVE DEPARTMENT

WHY IT SHOULD BE SUPPORTED

Representing a business concern owned by the taxpayers of tile country, Mr A. AV. AVellsted, of the commercial staff of the Now Zealand Railways, to-day placed before delegates to the annual conference of the National Dairy Association arguments in favour of wholehearted support for New Zealand’s State enterprise. He mentioned the numerous concessions and improvements made, and pointed out that at present many people were mistakenly saving money on some railway freights, only to pay* more in road upkeep and taxation.

Air AVellsted said: As the biggest transport concern in the Dominion a few figures may he of interest to you. The number of miles open for traffic on March 31, 1925, was 3064. while the capital, cost of opened lines was £44,570,746. For many years the policy rate of interest was fixed at 3 per cent. It was subsequently increased to 3tj per cent, but owing to the changed condition of the money market during the last few years it lia® been decided to increase this rate to 4J per cent, and also- to make provision for renewals. The interest alone therefore on the capital cost of the railway system on Alarch 31 last at 4§ per cent would amount to £1,838,643, while our revenue totalled £7,112,525 and our exxienditure £5,545,415. I would point out that the aim of the department is to place the system on a sound, economic basis, hence the increase in the policy rate of interest and the provision for renewals. In this connection a prominent paper in a leading article on the new tariff puts it as follows: “They (the Railway Board) are trying to make the railways an honest, economic proposition.” You will -agree with me that things have moved apace in the department during the last few months. Many reforms have been instituted, and the aim of the management and every member of the staff is to give the best possible service to the people of New Zealand, to whom the railways belong. Al-any I mention one or two of these reforms. There is the commercial branch, which came into being in August last,, and which is now an important and integral part of the railways. Most.of you I expect- have coijie into contact at some time or other with our business agents. These officers move freely round the country, keeping closely in touch with our customers, actual, and prospective. Those of you who temporarily forsook the old love (the Railway Department) and flirted with the new love (motor transport) have probably listened to the reproaches of our business agents and have, I hope, decided to revert to rail transport as a result of their representations.

The availability of tickets lias been extended, and they may now be purchased from 14 days in advance of the .date it is intended to travel. This concession has been of great advantage to travellers, and has bellied to relieve the congestion at booking offices. The through booking system of passengers, parcels and goods between the two islands has also proved a great boon.

One of the minor innovations that is much appreciated is the hiring of pillows, at 1® apiece on th© Alain Trunk through trains. ROAD COMPETITION,

Coming back to the question of road competition, it is now a generally accepted fact among thinking men that road competition with the railway is economically unsound. There is ample scope in New Zealand for motor lorries to operate in their proper sphere as “feeders to the railways,” not to compete and run on what is practically a free road bed, taking the higher rated commodities from the railways and leaving th© lower rated commodities for the department to convey. The owners of the lorries or their shareholders certainly benefit, hut at the expense of the general taxpayer, who has to make good any loss that may -he incurred in the working of tbe railways and who also has to pay for the upkeep and maintenance of the roads. RAIL FREIGHTS.

\Yc now come to a question which has agitated and exercised your minds to a large extent in the past, but which, I understand on good authority, is no longer such a bone of contention between us. I refer to the vexed question of dairy produce. We have nothing to hide in this connection and are prepared to lay all our cards on the table —in fact we have already done so. . In 1897, when dairying was 111 its infancy and struggling to establish itself, as one of the Dominion’s primary industries, the rates charged by the Railway Department for the conveyance of dairy pioduce were considerably reduced and the products of the farm ' given a most advantageous schedule of freights. From 1994 to 1924 the .value of butter increased 81s 6d per cwt., an increase of 92.94 per cent., and the value of cheese increased 46s 8d per cwt. an increase of 196.81 per cent., whilst for the same period the cost of administering the railway service rose from 5s Old per train mile to 11s 11 Id per train mile, an increase of 137 per cent. . Notwithstanding the extraordmary increase in the value of butter and cheese between 1897 and 1919 the Department made no move towards placing these commodities in their correct classification (i.e.. class D), although during the period stated the working costs of the Department went up over 3s 2d per train mile and meanwhile dir dairy industry had been well established. However, in 1920, after butter and cheese had received the benefit of the lower rating for a period of 28 years’, the heavy increase in railway j working costs rendered it necessary for j the Denartment to make an adjustment of the charges and place these commodities more nearly in their correct classification.

Not onlv i n the carriage of the raw materials,'milk and cream, and the finished products, butter and cheese, has tlie Department assisted the dairy fariner. Goods such as fodder, hay, meal, molasses, turnips, grass seed, lucerne, calf feed, fencing material, and butter boxes, etc., are carried under the lower schedules in the Denartment’s tariff, and whilst low freights on these commodities (and other similar lines), formincr the bulk of the dairy farmers’ expenditure. have meant a substantial concession to the industry, the return to the Department has. similarly to that on cream, butter and cheese, been practically nothing' beyond the actual cost of transport service. Another aspect of this question relates'to the ,help extended by the Railwav Department to the dairy farmer when misfortune bv (ire. drought, or flood have overtaken him. When such calamities have occurred and threatened the dairy farmer, with financial ruin the Department has come to the rescue by granting free railage of live

stock Lo pasture lands, free railage ot fodder, and free railage of grasses, etc., for repasturing the denuded land. THE NEW TARIFF. There ca n be no general reduction of rates until the railways are on a better financial footing, but I can tell vou unit the rates on dairy produce will not be increased in the new tariff which is now being circulated. The Royal Commission which inquired into the* railway service, and who took evidence on tiie question of dairy freights, found themselves unable to conclude that a ease had been made out for a reduction. On the contrary, they stated that “the experience of the pastfour years had shown that there is no margin for reduction of rates unless by so doing more traffic can be secured.”

At the conclusion or the address questions were asked. Air. Roberts (-Park vale) asked if there was any chance of dairy farmers obtaining excursion fares during the winter, when they could leave their farms. AYihen excursion fares ruled in the summer, dairy fa miens could not leave their farms.

Air. Sinclair pint in a claim for the dairy factory employees on the same grounds. Air. AVellsted pointed out that it would mean issuing excursion tickets all -the year round, and ho did not think that the Railway Board would consider that.

Air. T. Arineent (Levin) said that if dairymen lowered the price of their produce, consumption was increased. Correspondingly, if the Railway Department lowered their tariffs they would increase their business.

Air. AVellsted asked if the dairymen intended! to reduce the price of their article in order to increase the consumiptiqn. Mr. Broadbelt (Levin) said ho did not think it was >a fair thing that the department should bo making the railways pay at the expense of the dairy farmers. They wanted an' abolition of the preferential tariff ithat operated to the detriment of the dairy larmens.

In reply to a further question, Air. AVellsted -said that in 3.966, when the railways were on a good footing, coa-l freights were reduced and the railway was losing money on coal carried for a long distance. They had to remember that coal was a one-way traffic. The Minister, however, would be going into the matten 1 - an a few days, when a deputation would wait on him. Mr. We listed said that there were few alterations in the new tariff affecting the dairy farmers. Mr. Barker (Parapaiaumu) asked what responsibility .the department took an -regard to loss occasioned by delay in despatching dairy produce. He instanced three cases where delay bad caused loss’.

Air. AVellsted: said that in any large concern there were always failures on the part of individuate. 1 Several speakers dwelt on the high cost of the carriage of New Zealand made rennet. American rennet could be landed at Featherstoii 6s cheaper than rennet made at Elt-ham, They wanted the Railway Department to put New Zealand in a position of being able to compete with the foreign article.

Air. AA’elisted saiid lie had had po idea that the question o-f rennet was such a burning one, but he would go thoroughly into the matter when he got hack to AYellington. At the conclusion of the questions, Air. AVelhse-d was accorded -a hearty vote of thanks, and “while th© iron was hot” it was decided that the N.D.A. appoint a •committee to- go into railway matters with the Riai.lway Board.