THE POOR MAN PAYS.

Hawera Star, Volume XLV, 4 July 1925, Page 4

THE POOR MAN PAYS.

RIISEi IN RAILWAY TARIFF. STRONG OBJECTION TAKEN. The new railway tariff rates which will, if Drought- into operation on July i’J, add to the cost- of coal timber, flour and .sugar to the consumer, and also be- a big hurdle to the small freezing companies which operate away from the main ports, were taken .strong exception to by the Hawera Chamber of Commerce last evening, when it was decided to wait on the Minus-tea- of Railways (Hon. J. G. Coates) in connection. with the matter. Mr. J. B. Murdoch said that the dairy companies, were taking action with regard to the increase in. coal freights. He .said that Taranaki factories used mostly Taupiiri and Hunitly coal, and that meant that the new tariff would add an extra 8s per ton. A committee set up by the National Dairy Association would be interviewing the Minister. Mr. H. G. Dickie pointed out that for the Pa-tea Freezing Clo. the carriage of frozen mutton and lamb wouid be increased from 3'ls to 3Ss 9d, while frozen beef would jump from 29s lOd to 39s 9d. The Paten company had a tremendous amount of meat in store from, animals which had been bought on the ordinary basis of working costs, and on this meat alone the increase in the tariff would mean an extra cost of from £I2OO to- £ISOO. The unfortunate part of it was that- there was no increase in the freight on live stock, which meant that the big meat companies operating at the main ports were hot handicapped, and so had a “pull” over the country companies. If the freezing business were driven into the big companies it would mean that the producers, would get less for their stock.

The increase in freight on coal would also- affect the Paten company to the extent- of several .hundred pounds a year, and to the small consumer hero It would mean an inoreiuse of about Is per sack. “The Government lias reduced the duty on tobacco £70,000 per annum,” said Mr. Dickie, “and the other smoke should he reduced too.'’ The .speaker -also pointed out that dairy companies would very .soon be out of wood, and would have to depend entirely on coal. Mr. W. Gilbert said that the new tariff would mean tan increase in the freight on. flour between New Plymouth and: Hawera of 274 per cent. 1 The president of the.. Chamber, (Mr. J 1). Dixon) said that lie had had a conversation with Mr. Wei listed, of the commercial .staff of the railways, and that gentleman had .siaid that the department • was out to make the railways pay. The president said that the argument might be .sound for a commercial house, but not for a Govern men b railway. He pointed out that the new tariff affected the poor man. The speaker also .said that the increases would mean a rise in the cost of timber, which at the present time should be available for housing purposes at as- cheap a rate as possible. Mr. SVellsited li-ad said that it -was a long time since the tariff rates on some commodities had been altered, but the president contended that the rise was on articles that of necessity made the increase fall heavily upon the people. He wa.s of the opinion that if the people of the Dominion called out loud enough -the Minister would listen.

Mr. P. Bond contended that- it was only fair that -such works as the Pa-tea freezing works, where there was meat in .store, -should be /allowed to rail its present stocks at the old rate. The animals had been purchased on a certain ba-sis, and -any loss would fall bade on the farmer, seeing that t-hd Patea. company wins a formers’, company. A lose of £I2OO would bo a big setback to- the Patea- works. Mr. Diclue said, that the company had been cutting things pretty fine a»s competition -hail been keen. It had had to pay 3s per head more for lambs simply because other companies were pressing. Railage freights were inclined by frozen meat- consigned from Patea to New Plymouth, where it was shipped. Some- meat was railed to Wellington when time was a necessary factor, but the greater proportion of the Patea meat was shipped from New Plymouth.. Mr. Dickie also drew attention to the fact that the freight on road metal would be /increased. As metal came frorii Wellington, it was a serious matter. Mr. Dixon said that Mr. Wellsted had pointed out to him that the Railway Department bad been carrying metal -at a cheap Hate and enabling people to lay down good roads, with the result -that they competed with the railway. Mr. Dixon said he was sorry to see the meat being railed to New Plymouth. When the- loan for the Patea harbour had been proposed it bad been sa-id that it- would never be necessary to strike a rate, .as the amount of meat being shipped from Patea would bring in enough revenue to pay all expenses in connection with the harbour. 'Mr. Dickie pointed out that New Plymouth was not ia-n overseas' port- at that time.

Referring to the revenue made by the Mr. Dixon reminded the Chamber that the North Island lines paid and had to carry the burden of non-paying lines in the'South Island. Mr. Murdoch said that if the new tariff were bio tight -into- operation imported coal could he- purchased in South Taranaki cheaper than the New Zealand coal. As far as tie road metal was concerned, he considered it would pay Hawera better to use local metal' in any eaise, although the Belmont metal might- be a lit-tU better. It was decided that the- Chamber protest against die increase in freight on coal, timber and frozen meat- and t h at- Messrs. Mu (clock and Dickie be a deputation to writ on the Minister in connect on with tie matter.