CHAMBER OF COMMERCE.

Manawatu Standard, Volume LVII, Issue 232, 31 August 1937, Page 4

CHAMBER OF COMMERCE.

ADDRESSES ON RAILWAYS. The monthly meeting of the Feilding Cliamber of Commerce was held last evening, Mr A. J. Humphreys presiding. Also present were the Mayor (Mr T. Collins) and Messrs D. Finlay, J. B. Purcell, A. C. McCorkindale, C. M. Sargisson, Geo. Dnrragh, V. E. Smith and G. J. Fitzpatrick (secretary), also Messrs H. J. Williams and S. McDowall, representing road transport interests, who were present by invitation. The president extended a welcome to Mr A. G. Grant, Railway Department business agent stationed at "Wanganui, who gave an interesting address on the railway business and the duplication of railway services by road transport. Briefly outlined, Mr Grant said, tho reduction of £147,619 in tlie net earnings of the railways was due to increased expenditure by restoration of wages and salaries to the 1931 level, the 40-hour week which involved an increase iri staff, tho increased cost of materials, additional expenditure in providing modern equipment and improved facilities and in overtaking works curtailed during the years of depression. It was also due to a substantial loss in passenger revenue on account of the infantile paralysis epidemic during the holiday season last summer, and to more intensive competition of road transport operating services in direct competition with the railways. In regard to Feilding, the figures relating to the outward and inward traffic at the local station were of particular interest; Feilding was the outstanding sheep forwarding station in the Dominion. The principal sheep forwarding stations in 1936 were: Waipukurau which handled 214,867 sheep and pigs first, with Addington, 201,135 second and Feilding third with 159,368. For the year just ended Feilding handled 238,335 sheep and pigs and Mr Grant understood that "YVaipukurau was still a little ahead of Feilding this year, although the department regarded Feilding as the principal sheep forwarding station in the Dominion. Details of the outward traffic for the past year with that for the previous year given in parentheses, were as follow: Cattle and cnlves, 21,862 (24.083); sheep and pigs, 238.335 (195.368); goods tonnage, 15,213 (15,796). Inwards traffic: Cattle and calves, 30,343 (34,717); sheep and

pigs, 167,598 (187,677); goods tonnage, 33,004 (26,017). ROAD SERVICES. “Competitive road services are established between points where a volume of traffic is available and duplicate the railway system which is capable of handling it," said Mr Grant. These services did not embrace tlie whole of the highway, but only patches where there was higlily rated traffic to be handled. Goods were handled by the railway from Auckland to Feilding, and there was no such road transport service. Why ? Because the road service, if there were one, could not compete with the railway over that distance. In support of his contention, the speaker pointed out that the cost of railing 2cwt. of grass seed from Feilding to Taumarunui, a distance of 153 miles, was only 3s 2d. Coal from tho Glen Afton collieries was landed in Feilding at a cost of 19s 9d per ton, the distance being 272 miles. Road transport, licenses were issued only for one year, and there was no security for a definite period of years, whereas the railways were a permanent convenience and were available for all time.

The speaker considered that under the Government’s proposals oi purchase the road transport services had been generously treated. Feilding had the service of 33 motor transport feeder services, and such conveniences were of importance to the community, the speaker added. Their co-ordination with the railways resulted in every point being served. The feeder services conveyed all classes of goods to and from the rail, and were thus essential services:

Wages paid to railway employees stationed at Feilding aggregated £7700 per annum, the staff permanently employed numbering 26. Regarding the elimination of lengthy road services, some might be retained, but as far as Feilding was concerned,' owing to its centra.] geographical position, it was well served by the railway, 6aid Mr Grant. “We have to prove that our service is capable of catering for the traffic handled by road services, and that will not present any difficulty. The service has the necessary equipment and system to develop its activities to accommodate the road transport service by diverting it to the rgil.”

Referring to a statement that had been made by the Feilding branch of the New Zealand Road Transport Alliance, to the effect that it would he a serious position if, when the occ.i-

sion arose, the Railway Department was unable to handle the volume of tralfie from the Feilding stock sale, Mr Grant said that there had not been an instance during the past year when the railway had not been able to cope with the business offering, and if such a position arose more trucks could be speedily despatched to Feilding. Mr Smith asked how long it would tako to deliver a load of livestock to Dannevirke from the Feilding stock sale.

Mr Grant: Not very long. Perhaps a little longer than by road, but not long enough to cause inconvenience. Mr Smith: But it would take all night, whereas the road transport could deliver its load the samo day. Mr Grant said that if there were a hundred trucks of sheep to be sent away, could the road transport handle them? The railways could. • Mr Grant said that his department did not administer the Transport Act. It did, however, make representations for restrictions of services in direct competition with the railways. Mr S. McDowall, replying to the matters brought up by Mr Grant, said that his alliance made no objection to the restriction of carriage of general goods to a 30-mile limit, but he instanced cases in the live stock, transport industry wherein the services by road were essential, particularly in back-block country. Road transport as far as Feilding was concerned was a service which had been appreciated by the public. Had that no been so the services would not have been supported and would thus have eliminated themselves. To the speaker it looked as if the department was endeavouring to make up its loss on passenger traffic by monopolising the goods carriage service.

Replying, Mr Grant admitted that passenger revenue had depreciated in volume with the advent of private motor cars, but there had been a steady improvement and for long distance journeys the train service was becoming more and more popular. Regarding stock from the Feilding stock sale, he contended that most of the entries were destined for parts a considerable distance from Feilding, a.nd the rail service was of more importance to buyers than the road service. The majority of the sheep and other 6tock which made up the Feilding stock sale hailed from long distances, and when the Gisborne -line was opened up properly there would be further business enjoyed by the stock sale in Feilding from that part. Mr Humphreys said tha.t he realised that in many cases the railway service was the more economical, but he did not know if it applied in all cases. Mr H. Williams, in defence of the road services, said that he had never refused to carry any class of goods he

was allowed to carry over the area defined by his license. He contended that his services were comprehensive. The wages paid by his service amounted to £2200 per annum, and direct taxation £7OO per annum. He contended that his service did not only carry the cream of the freight, but catered for all requirements. Mr Grant stated that two road transport services in the South Island had been eliminated and the people had not missed them. Mr Fitzpatrick congratulated Mr Grant on the able manner in which lie had stated the department’s case. He agreed that the railway passenger service was the more comfortable one for long distances, but regarding the AVel-lington-Feilding road transport service for goods he said that Feilding did not wish to be deprived of it. The service was widely appreciated by the business community and he did not think that Feilding should bo forced to give it up. Ho read a letter which had been sent to Mr Williams, and which in effect meant that if he did not sell to the Government his service would be eliminated. On the motion of Mr Fitzpatrick, seconded by Mr Smith, the railway business agent was accorded a hearty vote of thanks for his address.