DAIRY PRODUCE.

Otago Witness, Issue 3769, 8 June 1926, Page 79

DAIRY PRODUCE.

RAILWAY FREIGHTS. At tbe meeting of the South Island Dairy Association held on Wednesday Mr-G. Greig, commercial agent for the Railways Depait ment ;n the Otago district, gave an address on the department's standpoint in regard to milage fieighls on dairy produce. The said be noticed that in the annual report of the association the following statement was made: "luxcepting in one or two districts where concessions have been made on account of motor transport competition, the rates on dairy produce are from 140 per cent, to IGO per cent, higher than obtained piior to the war.’ This statement, he said, might appear to give reason for complaint, and it would be his duty to put the position before them from the department’s standpoint. Mr Greig then quoted a mass of figures, reviewing the charges for many years back, and said that, far from having any legitimate complaint, he thought the dairy industry had much to be thankful for.— (Laughter.) lie said that the actual increase in the railway rates was only about 83 per cent.. The department had stuck to the dairy companies in their lean years, and they should stick to the department now. He was pleased to say that the companies had loyally stuck to them. The railways had to return a revenue at the rate of 4 1-8 per cent, to cover interest and working expenses. This year the department had had a more sucessful season both in its passenger and goods departments—there had been an increase in both dairy produce and in wool. The Railway Commission which had recently sat in New Zealand had gone exhaustively into the representations of the dairy people for a reduction in the freights for butter and cheese, but it had been unable to recommend a reduction. Increased business meant lower rates, and reduced business meant higher rates. The department felt that it was carrying dairy produce at the lowest rate possible. He thought it could carry the slightly increased rate. The department had to get the revenue, and they tried to work the freightage on as fair a basis as possible. If it reduced the freight on dairy produce it would have to raise it on other commodities, and it would thus open the door for outside competition in the carriage of goods. Mr D. Ruttledgo (Invercargill) said that while ho agreed that tho Railways Department was giving them a very efficient service, there were anomalies in the existing charges. He did not desire to criticise unduly the department, but to try to clear up certain points. He would mpve a hearty vote of thanks to Mr Greig for the information he had given them, and he hoped he would realise the value of the information they had given him.— (Laughter.) The motion was carri y acclamation.