FARMERS AND THE RAIL

Stratford Evening Post, Volume II, Issue 88, 7 November 1932, Page 10 (Supplement)

FARMERS AND THE RAIL

NEED FOR RECIPROCITY Various official statements made during the past few weeks have indicated unmistakably that, the Railways Department expects reasonable support from farmers if they wish to continue receiving the benefit of free carriage of lime (up to 100 miles), low rates for fertilisers, and other concessions. The railway authorities have given frequent reminders that the help of the railways for farmers must be related to farmers' help for the railways. It should be well-known by now that the old political scheme of control has gone. The definite responsibility on the Railways Board is to run the railways in accordance with business principles, and the Board is acting firmly in accordance with the letter and spirit of that mandate from Parliament. It is distinctly a case of "business is business" —and there must be two sides to it —reciprocity. Some "home truths" on this question were spoken recently at a meeting of Taranaki producers by a representative of the Railways Department. It was necessary, he said, to view the position from a wide standpoint. To the individual supplier to the dairy factory the rail charges on the output were not a matter of vital concern. The directors of some factories had stated that it was impossible to patronise the railway system on account of the rail charges being slightly more per ton than the price secured from road operators. Owing to the loss in revenue from that source, due to factories using road transport, it would be reasonable for the railways to increase the charges on low-rated goods to offset the loss in business. Any such action would be most serious to the farming community and would, no doubt, be the means of reducing the rate of production. That was, no doubt, an old argument. The concession freight rates by rail had been so long in force that they were inclined to be overlooked by those who received the benefit.

The position simply developed into reciprocal trade. At the present moment the railway was not receiving a fair proportion of the payahle freight. The railway system was essentially ail industry of the Dominion. Practically the wh6le'.'equipment was purchased an'd made within the 1 country. Engines, carriages, 1 vans, "wagons' and other vehicles were made in their own workshops. The Department provided work for more than 15,000 employees and had a wages bill of approximately £4,000,000. He could safely say that practically all of this money was circulated in the Dominion. The purchase of stores, supplies, coal and material approached £2,000,000.