RAILWAY TARIFF

Hawke's Bay Tribune, Volume XVII, 28 September 1927, Page 3

RAILWAY TARIFF

NOW UNDER REVIEW NEW ISSUE AT END OF CURRENT YEAR. MOTOR COMPETITION. The Rt. Hon. J. G. Coates, as Minister of Railways, in presenting his Statement in the House of Representatives yesterday, stated in regard to tariff matters; — “The present railway tariff has been in force since August 30, 1925. It is now under review, and in pursuance of the policy to keep the tariff up to date it will be replaced by a new issue towards the end of the current year.

“With a view to further assisting in the development of the agricultural and pastoral industry, a substantial reduction was made dueling the past year in the rates for artificial manure, that this concession, which dated from the Bist August, 1926, has brought about considerable increase in the quantity of artificial manures conveyed by rail is indicated by the fact that for the seven months ended the 31st March, 1927, 261,400 tons of this commodity were coilveyed—an increase of 73,620 tons over the corresponding months in 1926. It is pleasing to note from the foregoing how fully the farmers of the Dominion have appreciated the reduced rate, and 1 anticipate’ that the resulting increased production will to some extent compensate the Railway Department for the concession made.

“The tonnage rates charged for goods conveyed by rail are based on a classification which, although varying considerably in detail, enables a general distinction to be made between what may be termed ‘low-grade’ am ‘high-grade’ traffic- The low-grade commodities—artificial manures, agricultural products, coal, firewood, gravel, metal, and suchlike goods—comprise a considerable proportion of the total .tonnage, and upon these freights are charged which (having been determined almost wholly with a view to encouraging settlement and development) are in themselves barely sufficient to cover the cost of transjort. The road-motor carrier does not compete for this traffic, but directs his attention to the more valuable commodities and more highly rated freight—that traffic, in fact, upon which the railways have depended to balance the loss made in carrying low-grade freight. It is reasonably contended that the low rates could be expected to remain only so long as the Railway Department was able to secure its usual profit from the higher-rated traffic. Now, however, the road vehicle has in many instances been successful in securing the latter. The Railway problems arising out of these changed conditions cannot lightly be passed over, and it is doubtful whether those who patronise road services, which are in many instances parallel with the railway route, realise that, through the loss in railway revenue consequent on the conveyance of goods by road, they (the public) are the direct losers.”