TRANSPORT CASES

New Zealand Herald, Volume LXXII, Issue 22008, 15 January 1935, Page 11

TRANSPORT CASES

SERVICES TO ROTORUA J CASE FOR THE RAILWAY UNECONOMIC ROAD TRAFFIC BOARD'S DECISION RESERVED [by telegraph—oto correspondent! ROTORUA, Monday The Transport Co-ordination Board •concluded its sitting to-day, Mr. Justice Frazer, acting-chairman, announcing that he would give his : decision in writing later. The hearing was one in which J. C. Fleming and E. J. Andrews (Mr. Hampson, assisted by Mr. Knight) appealed against decisions of the No. 2 Transport Licensing Authority declining their applications for permission to run an increased number of trips on their goods transport services between Auckland and Rotorua. The appeals, which were heard together, were opposed by the Railways Board (Mr. Aickin). The first witness, William Henry Wackrow, manager of the Rotoiti timber mill, stated that at least 90 per cent of the mill's output was delivered by rail, but where customers specially requested it, timber was sent - by motor transport. This would represent about 10 per cent of the total output. As far as his firm was concerned it had no reason to. complain. As a matter of fact, if it was not for the railway, his firm would not be milling at Rotorua. In reply to Mr. Hampson, witness said that during the last few months his firm had been selling timber to the Railway Department. Mr. McLean, town cjerk, Rotorua, stated that his council had passed a resolution at its last meeting instructing him to appear in support of the appeals. He also handed into the Court a petition signed by 53 business people asking that the motor services be allowed to continue. No Great Faith in Petitions In accepting the. petition, Mr. Justice Frazer stated that he had not a great deal of faith in petitions. The board was required to give petitions a certain amount of consideration, and as far as he was concerned he always gave petitions a minimum of consideration. Mr. Aickin addressed the Court at length, his address being a reply to Mr. Hampson's address, which was delivered on Saturday morning. "It is all very well for Mr. Hampson to say that these people can run over the roads as they phoose," said Mr. Aickin. "Have the people as a whole, who pay for those roads, no say in the matter ? The Statute has laid down the principles by which these services must be judged, and Parliament has made the interest of the public paramount. "In the first place it would not, and could not, be said that the railway to Rotorua could be done without. If it ceased to function, Rotorua would wilt and die. Therefore, any service which will have the effect of injuring. the railway service must be undesirable in the public interest. Limitation oi Small Concerns "Only with plant such as ours and a system such as ours can a proper distribution of goods be carried on. Small carrying agencies taking only the high-grade goods cannot cater for all the classes of traffic upon which the Dominion depends for its existence, because they cannot afford to. "Mr. Hampson stressed the agricultural advancement of the Rotorua district. His statement is borne out by the figures regarding lime and fertiliser brought cheaply to Rotorua by the railway as follows: —1932, 4098 tons; 1933, 4553 tons; 1934. 5334 tons. The railway made no increase in freight for the nasty grades between Matamata and Rotorua. Now there was, generally speaking, a decling in the figures for other -places so J it shows that the Rotorua district is going ahead agriculturally with the help of the railways. Uncompleted Lines Not a Charge "It has been said that if the motor transport is eliminated the railway will increase the freight rates, but there is no evidence of this. Mr. Hampson mentioned the Rotorua-Taupo railway. Probably he wishes to infer that that uncompleted railway was a charge against the Railway Department, but this is not so. Most of our lines were constructed in the early days when labour was cheap and construction costs light. "Our renewal of plant is paid for out of a proper renewal and depreciation fund and not out of capital. I suggest that the earning value of the railways is sufficient to pay interest on capital after providing proper depreciation and insurance funds and still return some profit to the owners, the public. "The roads do not pay their way. They are much more short of their interest bill than the railways. If the user paid for them and for their upkeep, these long-distance services would not be running to-day, at the low rates of freight. Monopoly Necessary lor Success

"The whole requirement of transport to-day is for monopoly. Give a monopoly to the railway and I venture to say that the general transport costs of the Dominion would be cut down by many millions. The large sum spent for coal annually would stay in this country. It would not go to America for spirits, oils, vehicle tyres, or parts. There would be increased employment on the railways and in the workshops. The number of persons economically employed at a decent living wage and under civilised conditions would counter-balance those displaced in the motor business." Mr. Nicholson, Waikato County Council, also made submissions to the board.

His Honor then intimated that he would give his decision in writing at a later date.