TRANSPORT WAR

New Zealand Herald, Volume LXXIII, Issue 22350, 22 February 1936, Page 15

TRANSPORT WAR

PROBLEM IN AMERICA RAIL, ROAD AND AIR EXTENSION OF SERVICES NEED FOR CO-ORDINATION The fierce competition that was taking place among the 'American railway, motor transport and air transport companies for goods and passengers was referred to by Mr. W. W. Reilley, a director of the Missouri-Pacific Railway Company, who was a passenger by the Mariposa yesterday on his way to Australia to spend a holiday. He was accompanied by Mrs. Reilley. The main source of competition to the railways in America, said Mr. Reilley, was the motor-bus, especially over the shorter distances. In -meeting this competition the railways were placed at a great disadvantage. The various companies were operating under the Interstate Commerce Commission, which governed the manner in which the railway services were conducted and fixed the fares. The bus companies, on the other hand, were comparatively untrammelled in their operations. They were carrying out their services on highways built at the expense of the public, and at present were cutting fares and freight charges. Moreover, their operations were expanding, buses were now to be seen running between New York and San Francisco. Some of them, Mr. Reilley said he understood, were fitted for night travel with sleeping berths. To meet this competition, he continued, the railway companies were running extra trains and improving the service. In some cases the companies themselves had commenced bus services over the shorter distances. These were also intended to counteract the use of the private motor-car. Using motor-trucks in conjunction with the railway, some companies had instituted door-to-door services. However, these were still an experiment and the outcome was as yet uncertain. Although various steps had been taken to meet competition by road, the problem, Mr. Reilley said, had not been solved, and the outlook was still serious. Were it not for the financial assistance of the Government, many companies would now be in the hands of the receivers.' Railway shares had come back a little of recent months, but not many of the companies were paying a dividend. Mr. Reilley considered the solution lay in the co-ordination of rail, motor and air services. Government control, but not Government ownership, was required. At present, he believed, was a move in the direction of Government control. In his opinion the time would come when the air would be used chiefly for fast de luxe services.