THE RAILWAY PROBLEM IN NEW ZEALAND.

New Zealand Herald, Volume XXVII, Issue 8196, 6 March 1890, Page 6

THE RAILWAY PROBLEM IN NEW ZEALAND.

No, V.* [BY SAMUEL, TAILS*] THE DIF7ERENOB BETWBBW W&EJMHB AND. STACfB RATING. - In. order to fully understand the railway problem, fit is very to have a ; clear idea of the essential • difference between reckoning fares and rates on the pre* sent and on the proposed system« the vast s importance of the difference bebwoea these; systems is very imperfectly ■? understood. This is not -to be wondered at, as, indeed, the issue has only recently been raised. So far as I am aware, the proposal to reckon fares and rafcoa by stages was first made in this city in 1882, and subsequently in 1886 in London by the late Mr. Charles Waring. , Up to quite ft recent period the railway men • have asserted that their basis of rating was actual "coat of service" per mile, and they oontend that charges can only be fairly made ,at per miie, modified by differential rates, the controllers of railways to have ; the right to ; make these differential rates as they please, ■" f*Other writers and myself have so mercilessly assailed and exposed this fraudulent system, that we now hear nothing of the pretence of " cost of service," but the rail«way men openly assert that they,' have the right to regulate their charges by " what the. traffic vrill bear." In plain English, to take all they can possibly get from the users of railways, the only limit to their impositions being ' the fear of losing their traded ': I speak of this system as "fraudulent* advisedly, and aeserttbat it was invented for the sole purpose of defrauding the public. That I am justified in speaking thus strongly is proved by the recent severe legislation of England and America against it. In those countries it is now prohibited under very severe penalties. In March, 1889, the American Senate passed an amendment to their Inter-State Commerce Bill, imposing penalties of any sum up bo £1000, am two ymrf imprisonment for each and every differential rate given. ] Must not differential rating, be worse than j fraudulent to draw such an Act from the i Americans, of all people in the world? ' This then is the system in force on the New Zealand railways," and the real object' 1 of the Government Railways Act of 1887 was to give speoial-facilities for working it to the," fullest possible extent. Differential rates are now being imposed as fast as possible on some of our branch railways, that is to say, against the poorest and most undeveloped districts, with the inevitable result that these districts must become poorer and poorer every year. Could any policy be more insane. I am well aware that this was not the intention of Parliament, but I emphatically eay, that it was the intention of those who framed and procured the passing of this most disastrous piece of legislation. ; The great defect of any mileage system is that it must of necessity, and actually I does, force trade, commerce, and population back on the great cities, ; and depopulates the country districts. " j What I mean is this : Under the present I system, almost invariably, the rate per mile ! for passenger fares in city and suburban districts is greatly lesr'thstn the rate per mile in country districts. For 16 miles round Melbourne the rate ilfl only half the country rate. This is also the case in most city and suburban districts in England, America, and, indeed, almost everywhere. Now, this system of rating appears to me to be extremely vicious. It is unjust to a degree, its social effects are most disastrous, and ib is financially unsound. It is unjust, because ib places country residents and producers under such fearful disadvantages. ' Its social effects are disastrous, because it is, undoubtedly, the chief cause of the congestion of population in the great cities of the world, and this, again, is the * chief producer of disease, poverty, and crime. It is financially unsound, because it preys on its own vitals, by destroying the country districts and towns, and thus, ultimately, crippling the trade of the great cities and seaports. That this must be the effect of mileage rating the railway officials themselves have given the most convincing proof. In' Parliamentary paper 1.-9, on page 89, will be found a table prepared by Mr. A. C. Fife, the accountant of the Railway Department,* anil this is what it tells us :— ;Th total number of passengers that travelled on the Auckland lines during 1885-86, was 424,914, and the gross amount they paid was £39,909. , Of this number 292,949 travelled distances of 10 miles and under, "and paid £9596. They; represented the city population, and formed 68*8 per cent, of the whole ■ they, however, paid only 24 per cent, of the revenue. , Travellers of over 10 miles and not exceeding 50 miles numbered 107,202, and they paid £15,647. They represented the most favoured of the farmer class as regards railway rating, and formed 25'2 percent, of the whole, but they paid 39-2 per cent, of the revenue. **■ ■' ■-*

The unfortunates who had to travel over 50 miles numbered only 24,762, and they had to pay £14,666. Thus only s'B per cent, of the travellers paid 36"7 per cent, of the whole revenue. '■■./■

It must be remembered that all goods rates are levied on the same system. Is it any wonder that people crowd down, upon the cities ? Is it possible for them to do anything else? Can we ever settle the country and develop its resources under such a system ? - I commend ; these facts to the consideration of my country friends. A great effort has beetynade latoly to convince thorn that they will secure an advantage over the cities if they obtain cheap mileage rates for manures, produce, and stock. Can any such reductions redress the wrong pointed out?

The railways of the colony belong to the whole people. Why then should 292,943 colonists bo able to reach their homes and transact their business for a payment of £9596, while another 24,762, or say onetwelvth of the number had to pay £14,666. lam nob arguing for the universal fare, but I say that a discrepancy like this is not only a grievous injustice, but as a financial arrangement is as silly and unsound as it Can possibly bo. As a colony we shall have no real progress until this is altered. ■' :-' ?-' .... /if ■

As to a stage system, it must on no account be a system of equal stages, as such a system would,' although in a loss degree, embrace all the evils of milage rating. .1 fully expect to find our Commissioners before long endeavouring to introduce a system of equal stages, and 1 warn my fellow-colonists to resist to the utmost any such attempt... , '■.':. The system proposed for New Zealand is one of unequal and the 'basis of rating is average coM and population. This, I hold, to be the only true basis. The following letter to the Chairman of the Railways Bates and Charges Committee of 1886, briefly describee this system » — MB. 3. VAILK TO THE CHAIRMAN, RAIIVWAY , MANAGEMENT COMMITTEE. .

- Wellington. 9th Juno, l:« 6. Sib,ln compliance with your request, I have the honour to submit in writing a description of my proposals for altering the system of levying the fares and rates payable on the New Zealand railways. 1.1 propose to abolish computing fares and rates by the mile. 2. To abolish all differential rating. 3. In place of the present system, I propose to reckon all fares and rates by stages in the following manner:— Starting from any capital town (for this purpose i treat any town having a population of not lees than 6000 as a capital town), I propose to place on every line running out of that town four tioket stations or stages, as near as may be, seven miles apart, ana then, should there be a stretch of country of fifty or more miles not having a town of 2000 inhabitants, to make the stages fifty miles each. Outside each town of 2000 inhabitant*, I propose to place one seven-mile stage on each line, and outside towns of 4000 two seven-mile stages; towns of GOOD, as before stated, to be treated as capital towns. 4. All fares and rates to be of one uniform charge, from stage to stage, for the whole or any portion of the distance. 5. Passenger fares to be charged 6d first and 44 second class for the whole or any portion of afltage. 6. All parcels and goods rates to be reckoned in the same manner—that is, one uniform charge for the whole or any portion of a stage; but as there are no statistics published on which I could found a reliable

estimate, 1 am unable to fix any scald of rates ; those I hare previously quoted being, • »s I novo many i times said, merely sugges'.] tiona. | ■■' . " ," ~ <■ % From time : to to© revenue shall stand'it, the fares and rates fromfltage? to, stage to bo ! reduced to { the lowest possible, ■ limit. If 8. When the lines ; become; filled iu> ; with; seven-mile stages, and the revenue will admit of it, then I " propose that the outside seven-; mile stage from eaohoapital town shall be removed, thens the ; next ,< stage, ': so on. until the stages are only between towns of 6000 or more , inhabitants. By persistently following this plan we may ultimately floor pur way, as regards passengers, at any rate; :to making ' one < faro only for any distance within the ooloay. ". Memorandum.—! do not propose to fix the stages arbitrarily at the distances mentioned, but at the best collecting and distributing points nearest to them. :. ¥ ; *' " 9. That the Government should bo relieved of their present responsibility as carriers. ' _ 10. That an insurance department should be established in connection with the Bailway Department, where, by payment of a,small fee, either life, limb, or goods could be insured. . 11. That, in place of the present tickets, railway-stamps should be issued and sold by every licensed stamp-vendor. ' 12. That stamps of a different colour or description should be issued which would entitle the bolder to pass from a station immediately preceding a < ticket-station to the next station beyond it, and thus save him from paying a double fare for a very short journey. The same will apply to goods traffic. . , _ From the adoption or the proposed plan 1 should expect the following results to take. place»~ (1) Th* rapid settlement of the country j ■;■• (2) The creation of numerous inland towns; " (3) The doing away with the great evil or massing large numbers of people in a fewoentres; (4) A moro*ven distribution of population! and wealth „- • (5) A more equitablo adjustment .of the* burden of taxation; (6) A " very large increase in the railway revenue.— am, Sir, very faithfully yours, . : Samuel Vaii^ E. Mitchelson, Esq., M.H.R., _ ' Chairman Railway Rates and Charges Committee. Auckland, March 4,1890. "