OUR RAILWAY COMMISSIONERS AND THEIR POWERS.

New Zealand Herald, Volume XXVI, Issue 9437, 7 August 1889, Page 6

OUR RAIL WAY COMMISSIONERS AND THEIR POWERS.

No. V. By Samuel Vaile.

"In the beginning. . . . the earth was without form and void , . . and the spirit of God moved on the face of the waters . . . and God said let the dry land appear; and it was so."— Genesis i, 1, 2, and 9.

On the very first page of the oldest book in the world, the book of Holy Writ, we are taught this important lesson, that motion preceded everything else, that without motion there would not have been any land, nor any life. As it was then, so it is now,

nothing can live without motion ; the very world would fall to pieces without it, and yet we expect our commerce to grow and prosper when we block the channels through which it flows by every expedient it is possible for human ingenuity to devise, merely to put money in the pockets of an infinitesimal portion of the community. What we want at the present time is something to attract population to our shores and to keep it here. We can only expect to do this by finding out some plan by which people can settle on the land, not only with profit, but also with pleasure to themselves. Under the present transit system, this is simply impossible. Land without motion to it, over it and from it, is absolutely without value. Its value will always be in exact proportion to it* transit facilities; therefore, if we wish to increase our national wealth, it is absolutely necessary to improve our national transit system. The mere existence of a railway does not mean transit facilities. A railway may run through laud without improving itrf value in the slightest degree. Railways have frequently been used to destroy, not" to improve value. As I write the first report of our railway managers under their new name of Commissioners is before me. It is eommendably brief, its compilers evidently believing in the old adage " least said soonest mended," but in the few lines they have written they could not help condemning themselves. After stating that the interest earned for the year ISSS-S9 is only £2 12s per cent., they go on to say that the trade of the country is based " chiefly " on the development of its natural resources and manufacturing industries (wonderful discovery, cute Commissioners), and add, "There can, therefore, be no great increase in the gross railway revenue of any one year over the preceding. Any improvement in the net revenue result will depend quite as much on economy of working as on increase of business." Imagine our three Commissioners in grave consultation over this absurd paragraph. Was there over a more contemptible confession of incapacity? Here arc three men who have been given a monopoly of the internal carrying trade of the country, and i."lo,000.000 worth of plant to work "it with, deliberately stating that because the trade of the colony is "chiefly " dependent on its natural resources, and manufacturing industries, it cannot be greatly developed, and that they must rely on their miserable cheese-scraping policy to earn the wretched £2 7s '2d per cent, they earned last year, for this is what they really did earn, and not £2 12s per cent., as they say. The fact is, they know they are already a failure, and are trying to prepare the public minds. The honorable the Premier, when speaking in Auckland, said, "I am sure our Railway Commissioners will prove a irreat success." I say, lam sure they will prove a most miserable, complete, and contemptible failure, and that the colon y will stiller seriously from their appointment. They have a country to operate upon that contains a greater amount of natural wealth in a small space than can probably be found in any other part of the world, and yet they tell us there can be no great increase of business done. Theyspeak the truth, no great increase of business will take place so long as they are allowed to remain in office. We have had a pretty long experience of them under another name. They have always failed, and they will fail. They have not the ability to initiate a policy of their own, and they are determined that nobody else shall so long as they can block the road. They will cling to, and light for, their "abominable no-system ; ' till the very last. A great deal of credit has been claimed

for our Commissioners, because we have had so few collisions. Collisions ! ! It is difficult to see how collisions could occur, except through wilful carelessness, on lines where so few trains are running. All who know Mr. McKerrow will respect him, and no one will suspect that he will do anything but what he believes to be right. It appears to me that a great wrong has been done to this gentleman by taking him from a position where he was eminently useful and placing him in one that he stands very little chance of filling with credit to himself or profit to the country. No man could successfully carry out his duties unless he had a large commercial ana financial experience, and it cannot be pretended that Mr. McKerrow has had any experience in this direction. As Abraham Lincoln would have said, lie is "A square man in a round hole." We have in fact committed the gross absurdity of placing the chief commercial institution of the country in the hands of a surveyor and two engineers, who have not as much business experience among them as would- enable them to successfully manage the affairs of an ordinary tcarehowse.

I consider the appointment of this Commission is one of the grossest frauds that ever was perpetrated on any community, and I again say that it ought to be at once got rid of. If we cannot shake them oS without payine, then the cheapest way is to pay, and put up with the loss. The present cash value of their salaries

for four years at 7 per cent, is £10,839. If allowed to remain in office till the end of their term they will cost the country at least a hundred times this amount. Unfortunately, the public seems to have settled down to the conviction that as these Commissioners have been appointed for five years we have nothing to do but to submit to them and all the injury they may choose to inflict upon us for that period. I hold that their appointmoht is such a gross breach of faith that they ought to bo dismissed without compensation, but at the worst we

have to pay £11,000. For the last eight years we have felt their curse, and we should be well rid of them at the price, as they would be gone fur ever. I have already shown what they have done with the grain rates. This is what they have done with timber. When Chief Commissioner McKerrow was in Auckland a number of gentlemen interested in the timber trade interviewed him and asked for a reduction in the timber rate. I believe I am right in saying he promised a reduction. At any rate after his return to Wel-

lington a pretended reduction of 25 per cent, was made. The rate was lowered by that amount, but at the same time an alteration in the system of measurement was made ; and a log, which formerly was said to contain 1000 feet, is now made to measure 1250 feet. Thus, a pretence of giving relief was made, but the old rate was maintained ; a regular railway trick. Mr. McKerrow may not know much of general business, but he does understand mensuration, and ought to have known that the alteration made was simply a low, contemptible fraud. Is he already contaminated ? It is my belief that no man can long administer a system that was cradled in fraud, and built up by lying, robbery, and deceit, without becoming degraded ; but never mind, "get revenue." I hope M. McKerrow was ignorant of what was going on, but the incident proves that he is powerless to prevent our railways being made a disgrace to us. It was an evil day for the colonies when Victoria introduced the Board system. The increase of revenue for a time, and the glittering splash, led people astray. Two years ago no Melbourne paper would publish a word of complaint against the Victorian Commissioners. Now columns after columns of their principal papers are filled with complaints of their miserable management and wretched accommodation. They are beginning to find out that the money wa3 made nob by increase of trade, but by running the lines and rolling atock to death, and that is precisely what is now being done here.

When the Victorian system was started I said it would fail; it has failed ; and so will our New Zealand Commission utterly and miserably. Let me again repeat that both in Victoria and here the railways are worked, nob as though they belonged to the people, bub as though they were the private property of the Ccmmissionera.

As showing what can be done on railways under direct State control, let me call attention to the results obtained on the Prussian State railways. In ISBO they earned a net surplus of £3,400,000, and year by year the profits have increased, till in 1888 it was more than £13,000,000. A marvellous increase for eight years, bub the profit for the current year is estimated at £15,500,000. I do not know the capital cost of the Prussian State lines, but in 1883 the total cost of all the lines of the German Empire, both public and private, was £407,000,000. It is stated that the profit made by the Prussian railways provides for the interest not only on the Prussian, but also on the Imperial German national debt, and I venture to say that if ow Ihits were iwrked- intelligently in the interests of the whole public, they could soon be made to pay the interest on our debt, if it were thought desirable so to use them.

Tho enemies of direct State control assert that the marvellous result obtained in Prussia has been procured by starving the lines, but a little reflection will show that this is impossible, for the improvement has been continuous for the last nine years, which could not be the oase if the requirements of the traffic were not at any rate more than fairly met. The net earnings of the whole railways of the United Kingdom in 1885 was only £32,767,000. So much for Company as against State management. I have no doubt whatever that active prosperity might be restored to this country within a year by a right use of our railways, and I am also certain that we shall not have any permanent real prosperity until we alter our railway system. It is simply impossible. Just as the whole world is awaking to a proper sense of the importance of the transit question, wo are content to adopt the " no-system" they are discard -

ing. lb is my honest belief that the chief object of the wire-pullers who promoted tho setting up of this Commission was to stop all real reform, and to continue the working of our railways in class interests only. The reply of the Government to my heavy indictment will bo, Well, we gave Mr. Vaile an opportunity to have his system tried, and he refused to avail himself of it.

I say that no such opportunity has ever been afforded me, but that an effort was mado to induce me to place myself in a false position, and to allow my system to be tried in such a fashion that its failure could be assured.

1 do not mean to accuse the Government, as a Government, of londing themselves to this, but without hesitation I say that the Hon. Edwin Mitcheison, Minister for Public Works, and his advisers, know that this would be the result, if I allowed myself to fall into the trap laid for me. I call attention to the following correspondence :—

Railway Department, Head Ofllce Wellington. December 1, 18SS. To Messrs. S. Vaile, H. Green, A. H. Nathan, A. Bell, and J. Reid, Auckland : Gentlemen, — With reference to my interview with you on the 14th September, about the Auckland railways and Mr. Vaile's scheme. I have the honour to inform you that the Government has considered the statements made to me, and the opinion expressed that it would be advisable that trials should be made by the Government subject to a committee of advice. To deal with this matter comprehensively would doubtless require special legislation, hut the Government is not at present in a position to form any conclusive opinion in the absence of particulars of the scheme and proposals. Up to the present no such information has been forthcoming so far as the Government is aware. Indications of the outline on which ordinary passenger fares were proposed to be based were suited by Mr. \ aile in a letter to the Railways Management Committee, dated June 9, ISSG (sec Parliamentary Paper 1., 9, ISSG), which provided for fares of (3 pence and 4 pence, first and second class respecI Lively, for 7-mile or 50-mile stages ; beyond | this no data were given, and it was intimated ' to the committee by Mr. Vaile that his ; knowledge of the goods traffic was not | enough for him to found proper charges or j proper classification on, and that he had not ! considered details of the rates and regulaj tions. The scale of rates, fares, and charges, i as relating to the Auckland section of the | railways, is enclosed, portions not having j reference thereto being erased." A complete : compilation of tables and regulations cover- .' ing all the traffic operations, and suitable for 1 the daily use of all the traffic employes, j accountants, aud auditors, would be needed i to replace the system to be superseded. ] This would have to cover the ordinary fares, ; season tickets, parcels, and luggage, and j charges for carriage, storage, cranage, demurI rage, cartage, haulage, loading,.unloading, in. ; surauce, wharfage, weighing, labour, etc., and \ be subject to the ordinary free traffic in operai tion —such as mails, etc. Such a compilation must be in proper form, fit for issue in the Gazette under the hand of the Minister. The charges and regulations should be fair and reisonable; no undue or personal prej ference, and no private contract would be , permissible : all persons would be entitled to ; like treatment under like conditions. There ! must be proper restrictions precluding undue I detention of stock, and preventing undue and needless running of trains, which may be beyond the resources of the appliances at command, or which may involve expenditure beyond what the traffic would justify. All operations as between the public and the railways, in connection with such rates, fares, and charges, and regulations, should, generally speaking, accord with existing statutes relating to revenue, audit, and railway working. It would also be desirable that you should state the security which you would propose to give as a guarantee against loss by the colony, should the scheme prove a failure. If you will be good enough to supply this information, the Government will be glad to give vour request and proposals the fullest consideration and attention.l am, &c, (signed) Edwin Mitch klsuN, Minister for Public Works.

This letter was evidently intended for me to answer. No one having the slightest knowledge of the subject could by any possibility believe that it was written in good faith. Along with it was sent a copy of the existing tariff, a distance tabic, and the railway by-laws. I saw at once that the real object was to entrap me into laying down a goods tariff that would mean financial loss to the country. If I had been silly enough to be caught, what I proposed would have been tried sharply enough, and my system ruined.

I drew up the following memorandum in reply :—

Memorandum. To Messrs. 11. Green, A. H. Nathan, A. Bell, and J. Reid.— In reply to the statements made in the second and third paragraphs of this letter, i may mention that a Parliamentary Committee composed of the present Premier and Minister for Public Works, three ex-ministers for Public Works, and five other well-known members of Parliament, spent nearly ten weeks in investigating my system and reported that " the Committee bearing in mind the great importance of the subject is of opinion that a trial should be given to the system on an isolated section of our railways." It is quite clear that mere "indications of the outline on which ordinary passenger fares were proposed to be based" could not be tried. When a new goods tariff is framed, whoever does this work, must have free access to the records of the department, if serious risk of severe financial loss is to be avoided. As to the numerous regulations and traffic charges mentioned ; under the proposed new system fully two-thirds, if not three-fourtlis of than would disappear altogether. They are worse than useless, and are merely so many devices for extracting from the users of railways " all that the traffic will bear." As a rule they have been brought into existence for no other purpose. The new system being so exceedingly simple it would be folly to attempt to make it fit in with existing railway working. In my opinion it would be extremely unwise as well as unnecessary to bring the whole system into force in one day, as appears to bo contemplated in this letter. It should be applied first to one branch of traffic and then to another, as the experience thus gained would be very useful, and lead to the avoidance of many mistakes. I estimate that it would take six months to properly and carefully apply it to the whole of the Auckland lines. If the railways are to be leased it is right that a guarantee should be given, but if a trial takes place under the supervision of a committee no guarantee should be asked. It would certainly be unfair to ask Auckland citizens to guarantee a trial made in the interests of the whole colony, unless they also had an opportunity of reaping a corresponding reward in case of success. It has been my earnest wish to render the Government every assistance in my power in solving the difficult problem of railway administration, and I am still most anxious to do so. I have carefully thought out all the details of my plan as also of the method and manner of bringing it into practical operation at any time the Government may think fit to place me in a position to do so. What I now want is such information as will enable me to fix ' the several amounts to be charged for the services to be rendered in connection with the various items of goods traffic. To arrive at this stage has cost me a large sum of money, and a vast amount of labour. I am quite willing to give the public the full benefit of all this, but I am not prepared to place myself and my nlacn in tbn hajads of

the General Manager of the Department who from the very first has shown the most determined hostility to the proposed new system. I wish it to be most distinctly understood that I am not seeking either place or pay for myself. Any appointment or powers given to me I should wish to bo of the most temporary nature, and merely for the purpose of introducing the new system. —Samuel Vailk, Auckland, 28th December, 1888.

If I had gone to the immense trouble and expense required, and had produced, as I could do, a workable, and also payable, goods tariff, then my proposals would no doubt have had " the fullest consideration and attention" from Messrs. Mitchelson, Maxwell, and Han nay, and would most certainly have been condemned. I do not suppose there are a dozen men in the colony who believe that the department would hesitate to spend from £30,000 to £40,000 of the public funds if by so doing they could prove me in the wrong. The truth is, they will nob allow my system to be tried, because they know that it would be a great success. I am aware that what I have said in this paper as regards the Minister and his subordinates (I should say masters) is extremely "rough," but I believe it to be the truth, and think the time has gone by in New Zealaud for speaking "smooth things." It is time all true men spoke out honestly and fearlessly. Auckland, August 3, ISS9.