Anomaly in Railway Freight Rates

Manawatu Times, Volume 63, Issue 81, 6 April 1938, Page 2

Anomaly in Railway Freight Rates

PALMERSTON NORTH AT A DISADVANTAGE

A complaint was recently forwarded to the Railway Department by the Palmerston North Chamber of Commerce regarding the rail charges between Palmerston North and Napier which are higher than between Wellington and Napier although the latter distance is : almost twice as great. Last evening a reply was received from Mr. G. H. Mackley, General Manager of the Railway Department. He stated that admittedly freight charges on class A goods from Palmerston North to Napier were higher than from Wellington to Napier but this was brought about through the intense road competition between Wellington and Napier for the large volume of traffic offering. It had been the department’s earnest endeavour to maintain the standard rates and so prevent anomalies but the competition which developed on the Wellington-Napier route necessitated drastic reductions in rail cnarges in order to conserve the department’s interests. It was also necessary to introduce a system of free delivery on certain classes of goods at Hastings and Napier so that the railway could equal the door to door service of competitors. On the other hand neither the volume of business offering from Palmerston North to Hastings and Napier nor the extent of the competition warranted the introduction of special rates between the points referred to. Mr. Mackley regretted that he could not make any adjustment in the Palmerston North-Napier rates. A manufacturing firm, commenting on Mr. Mackley’s reply, considered that taxpayers would view with alarm the cut rates and the loss at which the Railway Department was carrying goods from Wellington to Napier. Allowing for the fact that the railways might have considered it necessary to run at a loss to meet road competition, it would be reasonable to expect, now that the Railway Department was assuming control of road services, an early return to standard rates that were payable. Mr. K. Henderson thought the chamber should not take the reply of the manager lying down or the position .would frighten manufacturers away from Palmerston North.

Mr. A. J. Graham (president): Manufacturers here are at a distinct disadvantage. It was decided to forward the chamber’s opinions to the department.