RAILWAYS REPORT

Southland Times, Issue 21218, 20 October 1930, Page 8

RAILWAYS REPORT

INCREASED FREIGHTS

FARMERS’. EMPHATIC PROTEST

CONTINUATION OF CONCESSIONS

URGED

Pertinent criticism of the suggestions contained in the report of the Railway Commission recently presented to Parliament that freight charges on farming requirements and produce be increased was forthcoming at the monthly meeting of the Southland executive of the Farmers’ Union on Saturday. Particular reference was made to the suggestion that the concession of free carriage of lime should be discontinued and it was declared that this would seriously affect the farmers as the great increase in primary production in Southland and other parts of the South Island was largely due to the free carriage of lime. The executive was emphatic that the farming community could not at the present time bear any increased charges and carried unanimously a protest against freight charges being raised in any way. “We must admit that the report of the Commission contains many valuable suggestions,” said Mr A. R. Johnston. At the same time, there were some aspects of the report which affected the farmers very seriously. At the present time the farmers were endeavouring to procure additional concessions- and the report of the Commission actually suggested that some of the present concessions should. be removed. For instance, it was suggested that the freight on fertilizers should go back to the 1926 standard which would involve an additional payment of £60,000 direct from the primary producers. The report also stated that the time had arrived when the free carriage of lime was no longer justified. He disagreed with this statement absolutely. He was prepared to admit, however, that the Department should be paid for the carriage of the lime, but he did not think any extra charge should be imposed on the farmers. This suggestion would involve a payment of £30,000 a year from ‘the farming community. Another suggestion .was that an increase of 10 per cent, be made in freight charges in class E which included potatoes, grain, etc., estimated to produce a further £12,000. Mr Johnston considered that the executive should pass a resolution expressing its views on these • proposed impositions. Other Increases. Mr Dickie said an increase of ten per cent, in the freight on gravel, chaff, hay and lime was , proposed and this estimated to produce £20,000. Mr W. J. Martin suggested that the special committee set up by the executive should go into the*questions carefully and bring forward a recommendation. Mr W. H. Ward stressed the necessity for urgency as Parliament would have gone into recess before the next meeting of the executive. The matter was a very serious one from the farmers’ point of view as they could not at the present time bear any additional burden -and such charges would make the position more serious. Mr T. McCann considered it reasonable that the farmers should bear some portion of the extra cost in making the railways pay. The president said he hoped there would be no difference of opinion on this very serious question. Referring to the value of the free carriage of lime, Mr Bowmar said that this had played a very important part in the remarkable development of Southland’s stock carrying capacity.. With the continuance of the free carriage of lime, districts further back from the railway were being limed and it was necessary that the concession should be continued for the benefit of those who had not yet had the benefit that the farmers situated near the railway had.

Mr D. Dickie said that in giving evidence before the Commission, the representatives of the executive had stressed that the bulk of lime was such that it could not bear much increase in distribution without seriously affecting the price. With free carriage of lime every railway station within 100 miles of the quarries became a centre of distribution, but when freight charges were imposed by the railways the quarries themselves became the centre. An illustration of this argument was that some farmers found the cost of delivery to the less accessible back sections of their properties amounted to as much as three shillings per ton in comparison to delivery to the nearer portions of the farms. The imposition of freight on lime would seriously affect the development of the Southland farm lands. Mr Dickie said he did not agree with those who regarded the proposed recall of the concession as an injustice, but he regarded the present as a very inopportune time to impose an extra charge on the farming community. Any resolution passed should approach the question from this aspect. Free Use of Lime. Mr E. K. Sim sr.id that comparisons had been drawn between the profits earned by the lines in the North Island and the South Island. It was contended by the speaker that the freer use of lime in the South Island had increased production with the result that the lines in the South Island had proved more profitable to operate. Mr J. Johnston said it had been proved that the concession granted by the Department in the free carriage of lime had been very-profitable.

' After consideration of the matter during the luncheon adjournment, Mr A. R. Johnston moved:

“That while appreciating the value of many of the recommendations of the Royal Commission on Railways, this executive views with alarm the suggestions that the reduced rates for fertilizers should not continue and that the free transport of lime is no longer justified. This executive is informed that in the case of .fertilizers a restoration to the 1926 freight involves an increased charge of £69,000 for the farmer and in that of lime a sum of £30,000 is involved. In view of the very serious drop in the prices of primary products, the farming industry cannot bear any increased costs. Furthermore, any such increased charges must inevitably curtail the use of fertilizers and lime with resultant decreased production. We, therefore, emphatically protest against any curtailment of the

present concessions to the industry.” The motion was seconded by Mr T. Major and carried unanimously. It was agreed to forward the resolution to all Southland members of Parliament.

BRANCH LINES

CREDITING FEEDER VALUE.

The question of crediting branch railways adequately with the feeder value of traffic induced to the main lines was discussed briefly at the monthly meeting of the Southland executive of the Farmers’ Union on Saturday. The secretary of the Mossburn branch (Mr A. Roy), wrote stating that at a meeting of his branch he had been instructed to ask the executive to consider the advisability of requesting the Railway Department to credit all branch lines with one-third of the revenue earned by such lines. “We consider the present feeder value allowance too small,” stated the letter. .

Mr W. H. Ward said that when the closing of the Mossburn branch had been threatened, it had been found that the Department only allowed 10 per cent, to the branch lines of the value of the traffic they produced. This was considered to be unfair as the main lines would not do

nearly as much business unless fed by the traffic from the branch lines.

The president suggested that a committee should be set up to go into the matter. Mr A. R. Johnston spoke in support of the Mossburn branch’s suggestion. On the motion of Mr Ward a committee consisting of Messrs Roy, E. K. Sim, S. Shaw, Johnston, T. Hanning and the president was set up to go into the matter.