MY COUNTRY NOTEBOOK

Otago Witness, Issue 3888, 18 September 1928, Page 33

MY COUNTRY NOTEBOOK

By

MURIHIKU.

(Special for the Otago Witness.) The introduction of the motor car to New Zealand caused much dislocation in many ways. The farmers of Otago and Southland who each year sowed and harvested thousands of acres of oats have found that these commodities arc not in demand. Those who are responsible for maintaining the county roads discovered that the new form of traction smashed up the beautiful macadam roads that were eminently suited for horse traffic. And the introduction of the motor vehicles gave the officials of the Railway Department problems which as yet have not been solved. We get some idea of the magnitude of the problem when we realise that in the years 1925 to 1927 . New Zealand made a world’s record in the absorption of motor vehicles, a gain of 58 per cent., the greatest increase—from 13,000 to 23,000 —occurring in the demand for commercial motors.

In the old days when the railways had a monopoly of the transport of the Dominion, it was possible to work out a certain schedule of rates. It is quite obvious that bulk goods, such as chaff, timber, and coal, being comparatively cheap commodities in relation to their bulk, could not stand very heavy transport charges. If the transpo.rt charges were heavy then it would not pay an owner to transport the goods. On the other hand, valuable freights, such as butter, cheese, and meat, can stand heavier charges, and it still pays the owner to consign them. Just so Ion" as the railways, had an absolute monopoly it was possible to group goods under two headings—low valued goods, which paid a cheap rate, and high valued goods, which paid a high rate. It was the old story of what we lost upon the roundabouts we made upon the swings.

If we consider the classification of goods we find that the earnings of the railways per ton per mile on the different classes of goods during the year ended March 31, 1928, averaged 2.44 d. Taking this, figure as. the average it is quite obvious that in the following table all goods which earned above the averao’e were probably caried at a profit, while items falling below the average earnings of 2.44 d were carried at a loss. I know that this statement is not quite true, because there was a loss on the whole railway account; but with a very slight increased charge, perhaps to about 2-9 d of revenue per ton mile, the whole of the railways might have been shown to have paid. For a moment or two consider the earnings per ton mile on these different commodities:

Grain ' 9 nQ . Fruit .. . ” L77d' Root crops, fodder . i 924 Agricukural lime .. Coal, N.Z. brown .. ’’ I'l qs’ Road metal .. * * Timber, N.Z. .. ’ " rnaj Manu f es :: Ls3d: It will be observed that the earnings per ton mile on all the above are below 2.44 d per mile. The items listed below are all above that average:— Meat c 1 Butter ”.15d. •’ '' ” Benzine ? ” ” ” It is quite obvious that motor lorries do not endeavour to take from the railways such low paying freights as coal, timber, and lime;, but the motor lorry has cut in, and gets from unthinking tradesmen and farmers the carriage of those goods from, which the railway has in the past derived a fair amount of revenue to counterbalance the losses it has made on the low earning commodities. * * * The New Zealand Railways have apparently always been used for protecting local industries. We have only to think of the low rates charged for New Zealand-grown fruit as against importedfor the low rates on New Zealand coal as against the high rates on imported coal. Study these comparisons between the earnings per ton mile on coal:— Coal, imported ... q rrh Coal, N.Z. hard . . ” i 86d Coal, N.Z. brown .. .. 1.13 d” We often hear complaints from County Councils and Farmers’ Unions as to the high rates charged on imported timber: Timber,, imported ... 4 qgh Timber, N.Z ’’ Jajj Firewood, posts, etc. .. . L2ld” Timber for bridges up country is generally hardwood, imported, and on this imported hardwood a high rate is charged in order that a low rate may be charged on our indigenous timbers. * * * It is quite obvious that if the motor competition is'to take away the payable commodities, and if the railways are to be expected to earn a certain interest on the capital expended, then it is quite obvious that the rates on the lowest items must eventually be raised. That means no more cheap lime or coal or local timber. * * « The question as to whether any more railways should be built in New Zealand is a much debated one; but if our railways are to be used for development purposes—and unquestionably they must be—then it is not practical politics to talk about the cessation of railwayJiuildang. One of the great areas still unde-

veloped in New Zealand is the pumice country round about Rotorua and Taupo. The recently authorised railway will go through that district, and until the land is~ properly settled a great deal of production cannot be expected; but in the long run this development of the railway will be considered the means of contributing a very considerable sum to the national wealth and production of New Zealand. * * * It is undeniable that in 'tlie past many branch lines have been constructed that cannot possibly pay. It is also perfectly obvious that these railway lines cannot be closed down or pulled up; for if that were done land values in the districts concerned would drop considerably. There is a real problem facing the Railway Department in the branch lines of Otago and Southland. I. drew attention to the losses on these lines last year, and it is a melancholy business to have to again record these serious losses. Take, for instance, the case in the South Island where there is the heaviest loss per mile of line open. This is the Orawia branch in Southland: Mileage .. 9 miles Loss on working . . . . £2,358 16 5 Feeder value 719 2 11 Total net loss 1,639 13 6 Loss, including interest . . 6,326 16 10 Loss per mile of line . . 703 0 0 Now consider the Otago Central branch:— Mileage 147 mlle3 - Loss on working . . .. £12,988 15 1 Feeder value 3,391 15 1 Total net loss 9,097 0 0 Loss, including interest .. 16 11 Loss per mile of line .. 497 0 0 The Lawrence line, which has recently been opened to Roxburgh, probably never has paid, and it is very problematical whether the recent extension will make the line loss less than it lias done in the past. The following are the figures:— Mileage .. .. .. .. 52 miles Loss on working .. .. £11,632 22 Feeder value 2,592 3 5 Total net loss 9,039 18 9 Loss, including interest .. 33,710 7 7 Total loss per mile of line .. 648 0 0 To set down the whole of the figures in detail would be a very tiresome business, but it might be as well for everyone in Otago and Southland who are interested in transport costs to know the average loss per mile of line on the different branch railways, for in the final analysis the farmer has to pay for the loss on both railway and road transport combined:—

There is no question that the Minister of Railways and his new General Manager have a tremendous problem in front of them. When we realise that the capital investment already made by New Zealand in regard to our railway system is aproaching £60,000,000, and that the capital commitments are somewhere in the neighbourhood of another £15,000,000 for the completion of new lines now under construction and improvements to existing tracks, it is quite obvious that a tremendous problem is set before anyone who attempts to reconcile this heavy capital'expenditure with present transport conditions. * * * We are getting quite used now to an annual loss on the railways. This year there is a deficit shown of £291,452. But the most alarming position is disclosed in the statement that there is a falling off of over a million ordinary passengers in the traffic returns for the year. It is only reasonable to assume that the lost million passengers have changed over into motor buses or their own cars. And as the roads get better, more and more people will use the roads. The answer is plain; if the public, who own the railways, are going over to road transport, then we shall have to pay through the nose for both. * * * It is quite obvious that if all the goods carried on the railways could pay an average in revenue of 3d per ton per mile, the railways would pay. A moment’s consideration must show everyone interested that the cost of carrying a ton per mile by means of motor lorries bn the road costs somewhere in the neighbourhood of Is 6d per mile; and as has been before remarked, the taxpayers of the Dominion have 'to pay for any deficiency in the railway revenue, and the same set of people have to pay for the construction and maintenance of roads, which will inevitably be used for competition with the railway service. We in New Zealand are maintaining two costly systems of transport, and solemnly allow one to play out the other. , * * * With our new main highways system, and the accumulated funds raised by way of the petrol tax, our roads are going to be made better and better every year. This will.,cut down the cost of motor transport on the roads, especially for the carriage of passengers. It is difficult to see how the railways are going to stop the present tendency for people to travel by road and not by train. Everybody’s sympathy should go out to the Minister of Railways and his new General Manager in the big and thankless job they have before them.

Kurow Mileage Loss per mile o£ line open. 38 £254 Ngapara-Living-stone 27 £375 Waihemo 9 £188 Otago Central . . 147 £497 Lawrence 52 £648 Tapanui ., 27 £419 Waikaka .» 13 £325 Switzers 14 £382 Glenham 10 £589 Seaward Bush . . 34 £299 Orawia 9 £703 Forest' Hill 13 £331 Mararoa 12. £101 *- * *