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RAILWAY MATTERS.

COKOJESSIONS TO THE PUBLIC.

COMPETITION BY MOTORS.

Messrs J. Mason and F. A. Grant, ' the recently appointed commercial agents for the ]\ew Zealand railways, met the Taranaki Chamber of Commerce at the Victoria League rooms yesterday afternoon, when matters of general public interest concerning the railways generally, and of New Plymouth's needs in particular, were discuss©^ Speaking with regard to the affairs of the Railway Department generally, Mr. Mason said he would like to give a few facts and figures as an indication of how the department had been up against it during the past few years in consequence of the war. The railways, in the first place, were constructed to expedite the settlement of the country; they had never been regarded fcs a purly business proposition at any time during their history. The Govern•ment, in 1896, set the policy of the de- j partment earning 3 per cent, interest on the capital cost, and this policy was continued until 1910, when the rate was raised to 3f por cent. Unfortunately the department was unable to contribute that rate last year; it produced only 1£ per cent., there being a shortage of just over one million pounds in the revenue. That shortage was brought about by the trade depression and the general slump conditions. Prior to that the department was required to pay its interest charges, and, according to the 1896 policy, any surplus was devoted to the reduction of freight charges and improvements in the service. During Hie'period 1896-1910 the department had given in concessions to the public something like £2,000,000, as well as paying-interest and contributing about £1,700,000 to the -Consolidated Fund. In a business concern this last amount would havu been placed to reserve, and had the railways been able to draw on it last jear it would have enabled them to pay. The .department had been largely. used to foster industries and assist in settle merit. It had been carrying, for farm-: ing purposes, lime free for distances up to 100 miles, cream and milk at rates which were not remunerative, and also stud stock and returned empties, etc., for the purpose of assisting the pastoral and farming community. In addition it had performed a-v§ry gfeat sendee to the country in carrying very large numbers of children to school. It received "12s; 6d per quarter for each child, which rate could not possibly, pay. "Regarding motor traffic,'' Mr. Mason went on, "anybody who has given, any thought to this subject must realise that the motor traffic has come to stay, but they should realise that, it is going to compete against a greatnational undertaking. 'We, as a community, have spent £40,000,000 and have 3000 miles of railway, and we must consider whether the motor competition is to be allowed to continue under the existing conditions.'* Tho department'had carried road metal for local bodies at a nominal rate which was unremuneratlve, he continued, and this metal had been carried for the very roads on which the motor competition was taking place. . The question was whether the lorries were to be permitted to destroy the roads, as they were doing, without contributing to the national revenue. If the lorries..and other motor' vehicles were to bejpermitted to use the roads practically free of any charge::—which it seemed would not be the c&se under the Highways Bill^—he did not think that the railways should be asked; to compete under the conditions now prevailing. Thto iorne» weie depriving the of .their legitimate traffic. They were picking the eyes out of it by taking A"class goods, but they would not undertake to carry road metal and such commodities as manure. Mr. Mason concluded by stating that the department always welcomed honest criticism, which could do a lot of good. —Newi». . ■ . •• ■ |

Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/HNS19221031.2.4

Bibliographic details

Hawera & Normanby Star, Volume XLII, Issue XLII, 31 October 1922, Page 2

Word Count
630

RAILWAY MATTERS. Hawera & Normanby Star, Volume XLII, Issue XLII, 31 October 1922, Page 2

RAILWAY MATTERS. Hawera & Normanby Star, Volume XLII, Issue XLII, 31 October 1922, Page 2

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