THE RAILWAY SERVICE.

New Zealand Herald, Volume LX, Issue 18296, 12 January 1923, Page 9

THE RAILWAY SERVICE.

AIM OF THE DEPARTMENT.

LOWER FREIGHTS AND FARES

PROMOTION OF SETTLEMENT.

Railway matters formed the subject of an address Riven by Mr. J- -Mason, commercial agent of the Railway Department, at "the luncheon of the Auckland Chamber of Commerce yesterday. The Hon. George Fowlds, president of the chamber, presided, and Mr. V. A. Grant, who is associated with Mr. Mason, was also present. In opening his address Mr. Mason sadd it was the keen desire of the department to get into closer touch with the users of the railways, and it was the duty of his colleague and himself to endeavour to do this Hind so obtain the viewpoint of those who used the railways.. The Dominion had invested in its railways £40,000,000 and had 3000 miles of opened lines. Taking into consideration the fact that we were at young community he thought wo could regard ourselves as doing fairly well in having such a, large service. The responsibility of running the railways rested mainlv upon the General Manager, Mr. R. W/McVilly, who had the best interests of. the country deeply at heart. Any individual who made a request which was not acceded to should give the management credit for having considered it in a proper spirit. . If it was rejected it would be only because it was held not to bo in the best interests of the community. Concessions to Agriculturalists. At present the General Manager was awaiting the opportunity to do something in regard to 'reduction of freights and fares. The country had been passing through a period of slump and depression. The, increases that had been made in freights and fares were not so great as the increases in older countries — Canada!, the United States, Australia and the Continentwhich in some cases amounted to 150 per cent., 100 per cent., and anything between 50 and 100 per cent. In New Zealand the average increase to meet war conditions was 33 per cent. Thalt increase was not made in one jump, but in three stages, the first rise being made in 1915, the second in 1917, and the third in 1920.

Mr. Mason referred to the concessions given by the Railway Department to agricultural, pastoral, amd industrial communities in .respect of the carriage of different classes of goods and live stock. It had been the policy of the various Governments to use the railways as a means of promoting settlement and assisting industry. During the period from 1896 to 1921, in addition to paying interest, the department gave away in i concessions to farming, pastoral and in- j dustrial interests the sum of £12,000,000. From excess profits in the same period £1,700,000 was paid into the Consolidated Fund. In 1922, owing to the prevailing conditions which affected not only the railways but all sections of the business community and all parts of the world, there was a deficit of £1,000,000. In other parts of the world the railways not only failed to make a profit, but failed to pay working expenses. If it had been an ordinary business concern ■ the £1,700,000 . paid into the Consolidated Fund would have been held in reserve, and it would have been available to meet last year's deficit. In the course of time, as the population of the Dominion increased and closer settlement took place, the railways would become a very valuable national asset. Need for New Stations. The increased expenditure necessarv for the purchase of coal and stores and the higher rates of wages and salaries were mentioned by the speaker. Many of the department's difficulties were " passing away with the improvement in the condition of the country, and it would be able to do things which at present it- was not in a position to do. One of these things was the construction of new stations in some of the larger centres. The department had not had the money to effect these improvements before, and had had to get along as best it could. He knew that the general manager would, at the earliest possible opportunity, recommend such reductions in freights" and fare 3 as could be made, and would put in hand some of the works which had been postponed.