RAILWAY FREIGHT CONCESSIONS

Manawatu Times, Volume XLIX, Issue 3479, 15 October 1926, Page 8

RAILWAY FREIGHT CONCESSIONS

Abetfmg Unfair Waikato Competition DAIRY ASSOCIATION ON THE 'WAR-PATH ■Recently the Manawatu and West Coast Dairy Companies Association wrote to several members of Parliament, protesting against the provision regarding the carriage of butter and cheese as appearing in Gazette 27, which fixed lower freight charges on long railage. This arrangement was deemed to have been made in the interest of one particular Dairy Company, and to Uiat extent to prove a disadvantage to all dairy companies in the Wellington province. For this reason the Association decided to call a special meeting of the Executive to take steps to combat • the arrangements.

Testerday the meeting was held, fike president, Mr. S. A. Broadbelt (Levin Dairy Company) occupying the chair. Other members of the executive present were Messrs T. Radford (Whakaronga), C. G. C. Dermet (Cheltenham), J. Teale (Kairanga) P. Hansen Awahuri). H. E. Pacey (Jos. Nathan and Co). Visitors invited to discuss matters were Messrs J. Linklater, G, Eliott, J. A. Nash, E. A Ranson M’s.P. and W. A. Marshall commercial agent for Railway Department). The chairman explained why the meeting had been called. Concessions had been granted to companies railing produce over distances of from 175 miles to 340 miles, and this concession amounted to about fl a ton. This the speaker contended, was most unfair to those companies not so far away from the shipping centre. It was essential that the railways be made to pay, but it was unjust to inflict hardships on the smaller companies. A good number of companies had stuck to th e railways, and had received only a smaller concession, if any. The allowance made to companies in Palmerston North amounted to about 4/- a ton, while a concession of £1 a ton to those companies over 175 miles from Wellington was made, to the detriment of the interests of the Dominion. Certainly the amount of produce from S4O miles was not very great, but the companies in the Wellington district were railing a fairly large quantity of produce. Should the Department continue its present classification, several companies in the district were thinking of conveying their produce per medium of lorries. In some instances the companies would be able to !save anything from S/l to 6/- or 7/- per ton if put on the road. The companies had no wish to do this, but if the Department made concessions 'to large companies and none to the smaller ones, then they would have to consider their own interests and not that of the railways. It was essential that they received a fairer classification than they were getting at the present time. Suggestion: of Motor Transport. Mr.'Hansen explained that a charge for produce over 340 mileis amounted to IJd per mile, while that from Palmerston North was 24/10 per ton or 27-16 d per mile. His Company (Awahuri) railed about 500 tons, and had done so on principle, the company having supported the railways for 20 years. If the present classification was adhered to .then the companies would be justified in looking for some other means of transport. “On the face of it, it would appear that this reduction was made to suit the wishes of one big company, to allow it to come down on us,’’ stated Mr. Dermer. Mr. Linklater, though agreeing that the Association had cause for grievance, wished the meeting to take into consideration the fact that the railways must be run economically, and in fairness to the Department it Should be remembered that many concessions had been made on different products. The dairy companies in the north Istill had to pay more per ton in freight to Wellington than those in this district, but apparently some diferential treatment had been made.

Mr. Paccy stated that since the war time the increase of charges amounted to 150 per cent on dairy produce, while on other goods the increase was only 40 per cent. Mr. Nash advised that the Association appoint a deputation to go to Wellington and there place the matter before the Minister of Railways. If the present charges were to be adhered to, then the companies should combine and make arrangements for the produce to be transported to Wellington per motor, His own company certainly would adopt, this course, if som e change was not made in the charges. Mr. Eliott contended that the Department should not allow the Waikato interests to smash the, trade In this district on the Wellington market.

/ The chairman pointed out that his ■company had recently turned down an offer to transport itts product by road, and thought that the country companies were justly entitled to same consideration from the DepartH Waikato Smashing the Market. Nash; “X think the whole thing lls scandalous, and we are being rent ashed.” Mr. Marshall explained that the alteration in the tariff rate was for the purpose of assisting export industry. The new rate applied to all factories throughout New Zealand, and the eWclliuKloh companies could, i£ they

wished, avail themselves of the long distance tariff by sending their produce to Auckland. The Department had not any intention of granting benefits to any particular factory. The rates had been reduced 2/ 7d in all cases, and the same scheme applied to the fruit industry. Mr. Nash enquired how much butter had been railed from the Waikato and placed in co,ld storage since the new tariff reductions.

Mr. Marshall replied that he did not know and Mr. Nabh informed him that the butter sent from the Waikato to Wellington was being placed on the local market at a reduced price to the detriment of the local companies output. The Waikato companies were prepared to make a loss of £40,000 to place their products on the Wellington market and that would smash the local companies. Then the Waikato would raise the. price again. Mr Marshall: “Are the Hamilton interests cutting-in on yqur market at Wellington?’' Mr. Nash: "Of course they aro! They’re busting us.” Mr. Marshall: ‘‘What is their price?”

Mr. Hansen: "A penny below the market price of our companies.” Catting-in on Hawke’s Bay.

Mr. Radford: “It is rumoured that the Waikato company are going to open up a depot in Palmerston North to cut into the Napier market. Mr. Teale: "They’ve done it already.” Mr. Ransom stated that the Department was carrying cheese from Ormondvillc at cheaper rates than from Dannevlrke. Mr. Eliott contended that the concessions should bergiven to companies that intended sending their produce for export only. This would prohibit the Hamilton concerns from placing their butter on the Wellington market.

Replying to a question as to whether the farmers wore satisfied with the railway charges as compared to the motor transport fees, Mr. Marshal] stated that the Department in making concessions had to bear In mind the effect of motor competition. The real use of the motor was to feed the railways, but the competition was keen, and the Department had to consider this as well as fixing a tariff that would make the railways pay.

Mr. ‘Nash then moved: "That in the opinion of this meeting the long-dis-tance freights for dairy produce should apply to export butter and cheese only, and that Mr. Marshall be requested to bring the matter before the Railways Board and send the reply to the Association at the earliest possible moment.” Mr. Hansen seconded the motion. Mr. Dermer: “Suppose wo get that through, arc we going to bo satisfied?” Personally he thought that the same rate ishould not apply to the factories 175 miles from Wellington as those 345 miles away. Mr. Radford: "Far enough at present anyway.” Tfie motion was carried unanimously, and a vote of thanks to the members of Parliament and Mr. Marshall for attending, concluded the meeting.