ROAD TRANSPORT

Hokitika Guardian, 21 September 1937, Page 6

ROAD TRANSPORT

QUESTION OF COMPENSATION. (Dor Dress Association—Copyright). AUCKLAND, September 21. The estimate .that for an expenditure of £IBOO the Railway Department and public of New Zealand will make an annual profit of £24,000 through the purchase of road goods transport services, was made to-day bv Mr L. R. Leary, before the transport tribunal in suggesting tlmt compensation offered for goods transport services that were being taken over by the Government represented much less Hum justice to the operators. I The case of Felton’s Waikato Trans-j port Ltd., occupied the attention of the tribunal to-day. Air Leary representing the company and Mr Meredith the Crown. Sir Frazer presiding. Opening for the Grown, Mr Alereditli referred to the chaotic competition of j load transport which had engag-

ed official attention in every part of the world. It wa s obvious their operations must ultimately come under control, and inevitable cease.

lie spoke of the ill effects brought about-by road transport, and said companies were asking for compensation on something they never had, namely, the right to run in perpetuity. During evidence before the tribunal it had been pointed out that the gross earning of Felton’s and AJcElrmond’s services in Waikato were £36.000 annually. As an allowance in compensation for the loss of their businesses the two firms are offered a total of £IBOO by the Government, in addition to the valuation of plant, equipment, etci

It was admitted by Henry Valentine. second assistant-general manager of railways this morning that be would, estimate the additional costs to the railways in running these services at one third of their earnings. This. Air Leary submitted, would give the Department a profit of £24,000 per annum in perpetuity. Even if the Government took them over as road services rather than including traffic ‘in /railways earnings an annual profit of £12,000 would resultf