PILLAGE ON RAILWAY.

New Zealand Herald, Volume LXIV, Issue 19792, 12 November 1927, Page 13

PILLAGE ON RAILWAY.

REPORTED EXTRA FREIGHT.

DEPARTMENTAL EXPLANATION

[Bl* TELEGRAFH.—OWN CORRESPONDENT.] MORRINSVILLE, Friday.

A curious position has arisen following the discussion at the last meeting of the Morrinsville Chamber of Commerce on the supposed decision of the Railway Department to charge an extra sixth of the freight rate, to cover loss by pillage. A special meeting of the executive was convened to meet Mr. A. M. Wellsted, business agent of the department.

"I have :eally come up here for information," said Mr. Wellsted, "as the first I knew of the proposed additional charge was when I read the report of your meeting, and of the conference of Associated Chambers of Commerce." He said that hitherto the policy of the department had been not to shelter behind its protective clause when it could be shown that liability rested with the department. The clause was similar to provisions made by railway companies throughout the world for such risks. According to the report of the proceedings of the associated chambers, it was considered that the rate charged was too High. He had later read a full account of the bulletin, issued by the Warehousemen's Association, of the existence of which he had not previously been aware. Mr. Wellsted asked to hear the views of the members of the executive, which would lie useful when the matter was discussed at a conference in Wellington next week. He did not think that a legitimate claim lodged with the department for loss by pillage had been refused. Mr. C. M. Gummer said other carriers had to accept liability for the goods they handled, and the Railways Department should not dodge its responsibility. Mr. Wellsted: If you were getting goods in the future, would you consider it necessary to insure by paying the extra freight? Mr. Gummer: In the past 20 years I have.not found it necessary to claim for pillage. Nevertheless, my view is that if it were known that certain goods were carried free of liability by the department, there would be more pillaging. The circular seems to indicate that pillaging is increasing, and that the Railway Department is unable to effectively cope with it, and so puts the responsibility upon the owner of the goods. Mr. W. C. Cargill said it was incon- i ceivable that the question should be placed on the agenda paper of the Asso- j ciated Chambers of Commerce conference as a remit from Dunedin, and yet be unknown by the department's officers in Auckland.

Mr. McGregor:- Can we take it that if the business people of Morrinsville suffer from pillage, the department will meet the risk ? Mr. Wellsted: Yes, in the meantime.