RAILWAY REFRESHMENTS

New Zealand Herald, Volume LXX, Issue 21564, 8 August 1933, Page 5

RAILWAY REFRESHMENTS

REDUCTION IN PRICE COUNTER ITEMS CHEAPER v An announcement that a reduction of one penny in the principal items obtained at refreshment counters of the Railway Department would come into force on Sunday was made yesterday by Mr. H. H. Sterling, chairman of the Railways Board. The alteration in price affects the cost of tea, coffee, cocoa and sandwiches. Mr. Sterling said that at its Jasfc meeting the board had given very full consideration to the results that had been achieved in the last financial year in the operation of the department's refreshment branch. The net result showed an increase in the profit on tha year's work of £1247, as compared with the previous year. This had been achieved notwithstanding a drop of £12,728 in the revenue. .<■ While this position could be regarded as reasonably satisfactory, continued Mr. Sterling, the board had given considerable thought to the question of further improvement. The hoard was fully seized of the fact that in recent times there had developed a body of public opinion which considered that a reduction of prices could be made* to advantage. More recently publio opinion had" been centring round tha charges made for refreshments served over the counter, and the board, after consideration of all the factors, felt that it would be justified in making a reduction in the principal items of consumption in this category. The reduction'woiild involve the department in some loss at the outset, but the board felt that thp experiment was worth while with a view to exploring the possibilities. It was the board's " policy to endeavour to provide all its services at the very lowest possible-cost " commensurate with sound business;' operation.