HIGH RAILWAY FREIGHTS

Hawera Star, Volume L, 19 December 1930, Page 5

HIGH RAILWAY FREIGHTS

BLOW TO RENNET COMPANY

WILL CONSIGN OUTPUT BY ROAD

(By Telegraph—Press Association.)

ELTHAM, Dec. 18

The recent increase in the tariff on certain classes of railway freight comes as a bornbsheel to the New Zealand Rennet Company. Three years ago the company made an arrangement with the department for the carriage of rennet at a certain figure, but on December 15, the day after the new tariff came into force, the company learned that the freight had been materially increased.

The freight from Elthani, to Hamilton, 325 miles, was 65s 8d; now it is 95s 8d per ton. As a largo proportion of the output is sold freight forward, and the contracts wore made before the commencement of the season, the company is unable to pass on the charge and will have to bear the loss. The company’s manager stated today that it was a severe blow to the industry, and the only option was to arrange that the bulk of the output be consigned by road transport. He oointed out that it cost more to rail a keg of rennet than a keg of beer. The Railway Department states that the freight on rennet is still below the rate on general goods, pointing out that the freight fr-om Eltham to New Plymouth lias been increased from 20s Od per ton to 30s Id. whereas the ordinary rate on goods over the same distance is 36s 6d a ton.