COMPETITION OF RAILWAYS

Taranaki Daily News, 23 October 1930, Page 10

COMPETITION OF RAILWAYS

EFFECT PORT’S COASTAL TRADE 1 The decision of the Railway Department to carry certain goods, such - as sugar, from Auckland to New Plymouth at a rate elightly under the cost by steamer and more than 50 per cent, tinder its own schedule rate was discussed at a meeting of the Taranaki Chamber of Commerce in New Plymouth. Th© meeting was held in committee. The view of the chamber was that as sugar and cement were the mainstays of the coastal steamer service of the north with New Plymouth, the coastal service would probably have to be discontinued with consequent losa to the harbour board. The view was also advanced that it was doubtful whether the new railway rate would be a paying rate, in which case the Dominion taxpayer woiild have to pay the loss. The Railway Department had access, as agent for the harbour board in the collection of harbour charges, to the ships’ inanifdst and could discover what the cost was to the importer to land goods by coastal steamers. With this knowledge the department approached importers With the object of having future consignments Sent by rail from Auckland or • Wellington instead of by coastal service.

At its meeting the chamber passed the following motions;— That' the chamber protects against what it regards as the unfair competition of the Kail way Departmen ‘ with existing transport services 1. offering to carry goods at uneconomic rates, thus depriving the New Plymouth Harbour ißoard and other similar bodies of revenue without any benefit to the Railway Department. That records lodged with the Railway Department by shipping companies and the harbour board for the purpose of haulage and collection of charges should not be used by the commercial ■branch as propaganda to secure traffic for the Railway Department.