RAILWAY FREIGHTS

New Zealand Times, Volume L, Issue 11660, 26 October 1923, Page 7

RAILWAY FREIGHTS

FARMERS’ UNION EXECUTIVE WANT CONCESSIONS DISCUSSION WITH GENERAL MANAGER REASONS AGAINST REDUCTIONS Railway freights were discussed by the Dominion executive of the Farmers’ Union yesterday with the General Manager of Railways, Mr R. W. McVilly. The Union representatives asked for a number of concessions, chiefly by way of lower rates for the carriage by rail of the goods they produce and the goods they receive. Mr McVilly explained to the gathering the reasons for the attitude the department took up, and gave no indication of a change in this attitude. He pointed out that in some cases rural industries had been helped by the railways, and he mentioned that in the case of the dairying industry it had grown beyond the stage of needing help, and had reached giant strength. Mr McVilly emphasised the fact that the costs of running the railways had increased, and said it was the business of the administration to give the best service it could and make a fair charge to the users for the service rendered.

DEPUTATION'S VIEWS FREIGHT CHARGES HIGHER "ISO PER CENT. RISE FOR DAIRY PRODUCE.” The president of the South Island Dairy Association, Mr H. J. Middleton, said there had been a rise of 150 per cent- in the freight on dairy produce, and this, increase had driven the traffic from the railways to the roads. One effect of this transference of traffic was that the burden of the farmers in keeping up the roads was increased. Speaking of the freight on chaff, Mr G L. Marshall said the railway rate from Marton to Auckland was about the same as the boat rate from Melbourne to Auckland. The Railway Department was losing revenue because tho e'sttlers found it paid better to send Koode by road. The high rate on fertilisers also was a point which needed attention CARRIAGE OF FERTILISERS. Mr A. E. Harding said that a reduction on beef for boning and canning was needed, just as had been given on the finer class of beef for export. Speaking of the fanners’, desire to have the scale for- carriage of fertilisers reversed, Mr A. Ross said that if one thing more than another was going to increase the productivity of the conntry it fertilisers- A point worthy of serious consideration was the _ rate for long distance carriage of fertilisers. Mr A. S. Holmes spoke on the question of tho carriage. of pulp. He asked for the right to send small consignments by express trains. Ml- G. L. Marshall expressed the opinion that breeding stock which were bein'g consigned long distance* to im prpve the stock of tho country should be carried at reduced rates. He also deplored the shortage of trucks for the carriage of stock in busy seasons, a shortage which frightened people from buying at certain sales. Mr Middleton said the destruction of stock on the railways was simply terrific, and never had been approached in former times. He thought some of the bumping was absolutely wilful, and said that not only was the department killing the far me re’ stock, hut it was destroying its own business. LOSSES OF STOCK. Mr Nevins: I might say that, out of a truck of nine head of cattle, I lost three between Pahiatua and Levin. Mr G. W. teadley asked for a reversion to the 1915 rates for the oarriage by rail of wheat, chaff, potatoes, arid coal. Mr W. J. Poison. president of the union, eaid there was very grave discontent 1 just now with the administration of the Railway Department. The Union felt they were suffering under an autocratic adrninistration. They felt that commonsense things were not being done, and they were very anxious and determined there shpuld he changes. Mr Poison remarked that he said this with all respect to Mr McVilly, ap he realised the General Manager had a tremendous task, and everyone was throwing bricks at him. MR McYILIY REPLIES DEPARTMENT’S ATTITUDE. Mr MoVilly said the Railway Department was out to give the best service it could to the people of the country. The railways belonged to the people, and the administrative officers j had to see that a fair charge was paid, ; for when anyone paid lees than cost it meant that some individual who was securing no benefit 'had to foot, the bill at the end of the year. With £40,000,000 of capital invested in the railways, it meant that every person in the country had a £4O stake in the undertaking. As General Manager, he was in the position of trustee for every individual who was part owner of the railways. At the present time, with the cost of wages, coal, material, etc., it was imppsssible ’to make any wholesale reduction in rates. Every request that had been made by the gathering was one to reduce the earning power and revenue of the railways. Every business man knew that before he could make reductions he must get back his expenditure. That was wliat the department had been trying to do ever since the war. ' | UNTIL THE WAR. Until the war broke out, the railway •rates had never been increased, and tho tendency was to reduoe. When the department had to meet increased costs, it had to do what every other concern had done: it had to charge more for its services. But it did not increase its costs by 100 per cent. The total increase in rates was 40 per cent., and there was no other country in the world which had made so small an increase. The department was expected to got .'H pci- cent, on its capital, hut did not do it last year or the year before. They were endeavouring to get back to the right aide of the ledger by economies, and when they were on the right side it would he time to talk of reducing tho 40 per cent, increase in freights. It would not be economically sound to run the service at a loss, and if the service did not return the amount needed, tile general taxpayer would have to inako up tho deficiency.

No one would be happier than he when a reduction could be made, hut he wan afraid the time was not yet. UNDER REVIEW. The freight rates were under review and the financial position was being WotohetJ very closely. Referring *o the cost of carrying dairy produce, Mr McVilly reminded the gathering that the producers for many years hod a rate designed to assist the, industry. It could not bp said the industry waa r,ot now able to stand on its own feet'. it had grown to giant stage. Last year thg runway carried 150,000 tons of dairy produce, an average of 48 mites at one-ninth of a penny per pound. If it cost 10 pence per pound to maun facture and market hutter the railway freight represented one-ninetieth part of that, which could not be said to be excessive. Replying to Mr Marshall’s statement respecting the freight on chaff, ho said he had inquired as t-a the sea rate between Melbourne and Aucklandand had found it was not less than 45s a ton- That being the case he could not see how a rate of £1 a ton from Marton to Aucklaoxl could detrimental ly affect New Zealand competition on a New Zealand market. . A concession had been given in the carriage of prime meat for export, and it was not playing the game to come along and ask for the concession to be extended to all sort of things. EFFECTING ECONOMIES This policy Was pursued in the broad interests of the country, and he did not see his way to chauge hie attitude. In this he had the support of the meat board. The highest increase in wool freights was about- 14 per cent, since l!iO?, and the price of wool was mere than 14 per cent, higher now than in that year. The department could not Undertake to carry goods by express tiains. Parcels carried in the guards’ van would ibe charged parcels rates, not goods rates. Regarding the carriage of breeding pigs, he had decided to mar ease the weight limitation. Concerning the destruction of stock ho had sent out special officers to observe the handling of stock tiains, and only on one occasion had he been able to find a case of deliberate lough handling. He drew attention to the fact that Mr McLean, who bought about 7000 head of stock for Australia, had said that he lost only five head on the railway and that of the five three were lost owing to his own overloading of trucks. Cheaper rates for locally pro duoed goods had been given to encourage local industry. Reductions had been made recently for the carriage of motor spirit, and the only result the department had experienced was that they were conveying slightly more spirit and losing about £BOOO a year. Mr MoVilly remarked that economics were being made and already this year £156,000 had been saved.