UNFAIR COMPETITION

Northern Advocate, 22 May 1928, Page 10

UNFAIR COMPETITION

STATEM EX T RE 13 UTT ED.

RAILWAYS CASE STATED,

(Special to “Northern Advocate. ’’) AUCKLAND, This Day.

A reply to the statements by Mr Charles Rhodes, chairman of directors of the Northern Steamship Company, Ltd., to the effect that the company was faced with unfair competition by the Railways Department, was made yesterday by Mr E. Casey, Divisional Superintendent of Railways. Mr Casey also outlined the policy of the Department in regard to business competition.

“Fixation of special rates, to meet competition, is one that is common to railways'the world over, ” Mr Casey stated. “Railways have a commodity to sell, namely, transport, and arc often compelled, ,through competition, to accept a varying price and to depart from the ordinary classified rates in order to get business. In England, 75 per cent, of the total tonnage carried is conveyed at special rates as distinguished from the ordinary scale rates laid down in the tariff.

“While the principle of applying special rates in New Zealand is on a comparatively small scale, it must not be thought that this principle is applied only where the Railways Department is in competition with the Northern Steamship Company. There are special rates in force between Lyttelton and Timaru; Port Chalmers jor Dunedin and Timaru, and Dunedin and Invercargill, as well as in other parts of New Zealand. Notwithstanding what has been stated to the contrary, none of these rates is below an economic level.”