RAILWAY FREIGHTS

Taranaki Daily News, 5 September 1935, Page 11

RAILWAY FREIGHTS

ohura asks reduction request made to department. CONFERENCE HELD AT MATIERE. Arising out of recent communications between the Matiere Chamber of Commerce and the Railway Department, a combined meeting of the Matiere Chamber of Commerce, Ohura Chamber of Commerce and the Otangiwai Ratepayers Association ’'was held during the week, when Mr. Grant, railway business manager for the Wanganui and Taranaki districts, and Mr. Mackay, business manager of the Hamilton-Marton section, were present to discuss freight prices as charged for the Ohura and King Country districts. Mr. M. J. McAvady presided. Mr. A. K. Margan outlined the case for reduced railway freights, pointing out the discrepancies between the rates ruling where competition by road and sea existed and where the railway was the only means of transport, as in the Ohura district and King Country. Some places of equal distance from Auckland in outside areas paid only half as much as Matiere and Ohura people did, c.g., Auckland to Tauranga 51s 6d a ton on class A goods (179 miles) and Auckland to Matiere 92s 5d (177 miles). The sugar charges also showed large variations, the prices from Auckland to Eltham being 48s while to Matiere, a much less distance, the charge was 595. SPECIAL SCALES. Mr. W. K. Williams, president of the Ohura Chamber of Commerce, also urged reductions. It appeared that where competition existed special rates were charged by the railway. The people living in the heart of the North Island had suffered many difficulties, having come into a wilderness to make homes for themselves and were now saddled with a very high railway freight on all their goods. The railway had a special scale of reduced freights for the carrying of sugar to Taranaki, but had somehow forgotten to include the Ohura district in it. It carried sugar from Auckland to Stratford for 44s but to Ohura, /70 miles less, for ,625. When Mr. Sterling visited Ohura the people promised to stand behind the railway and they had done so loyally. If the railway gave fair treatment there was not likely to be any road competition for many years to come; • In all other ways the railway had treated the district very well since the line was opened. Also the country was a compact valley of 370,000 acres approximately, of Crown settlements, and as such deserved special treatment. In the early days in winter time it cost £l2 to carry 25cwt of goods from Okahukura to Ohura, and six .horses took three days to do it Potatoes were sold for as much as 22s a cwt. A rise of Is a ton in the freight on coal cartage would allow a very big reduction on the highly charged goods classed A,'B and part of C. The hulk of the people living in towns on the sea coast do not pay their full share towards the railways while those in the country did. The railways should be purely as a development scheme for the country and to induce people to go on the land, thereby improving things for the railways. They should not be for interest payments. Many things, such as manures, stock, flour, potatoes, cement, lime were carried for very reasonable charges but grocery sundries, drapery, ironmongery, kerosene, benzine, wire, staples and others were charged much too highly and it was these they wanted reductions for. TO MEET DIFFICULTY. To meet the difficulty of partly-filled trucks they suggested holding them at Auckland for a few days until by a combined load for the business men of each township a full truck was ensured. During 1934-35 year 6000 tons of goods were handled in the Ohura, and at present there was 600 tons of coal going out weekly, and soon there would be 1000 tons. With all these facts they considered they had a strong case to put before the railway -authorities in asking for reduced freights. _ Messrs. J. Crozier, J. C. Higgie, H. Stoddart and Salmond also spoke. Mr, Grant thanked the Matiere Chamber 6f Commerce for the opportunity to meet the people of the district and to discuss railway matters for the benefit of both sides and also to make clear certain points about which there were misunderstandings. He then gave a very full account of the workings of the railway, including freight rates, 1934 tonnages, expenses, etc. Freights to Matiere (as an instance suitable for the whole Ohura) were: Class A, 92s 5d a ton or 6.23 d per mile or less than .5d a lb; class B, 74s 2d, sd, .4d; class C, 595, 4.55 d, .35d; class D, 48s 9d, 3.28 d, .33d; Class E and a-half, 30s, 2.02d;'.18d; class E, 21s Id, 1.42 d, .Id. When worked on price per lb or per mile these were very reasonable, especially when often 5 or lOcwt were all that was in a truck. To reduce general merchandise Is a ton would mean a loss of £50,899 and to reduce all classes Is would be to lose £282,109. For 1934 gross earnings of railways was £6,332,711, working expenses £5,247,153, net profit £1,085,558 but interest charges were over £2,000,000. The railway used huge quantities of coal, in 1934, 387,596 tons at a cost of £496,282. The Taneatua line referred to in low freight charges was run at a loss including interest for 1934 of £115,704, but rather than close it because of the existing sea competition the department decided on reduced charges to secure some additional revenue. He then explained the reason for varied sugar rates, due also to extensive road, and sea competition: Freight charges from Auckland to New Plymouth on class A goods was 118 s Id so the 92s 5d to Matiere compared very favourably. For 1934, 69,378 tons less manure was carried than in 1933, showing the effect of the economic conditions on the farmers and the impossibility of increasing freights there. Matiere people could get their manure from Westfield, 170 miles, for 10s 7d a ton. An increase on coal would mean restricted labour at the mines, lesser sale to the users and reflect back on the farmer through the dairy factories and freezing works. To decrease the highly charged goods, the low charged ones must be increased and they could not stand that. They needed whole-hearted support but as trustees of the railways, they must examine any changes very closely. However, the representations would be placed before the Railway Board. Mr. Mackay dealt with several aspects of the situation. Manures were being carried at less than Id a mile, and the proceeds only met operating expenses and nothing towards interest. Where road competition existed, these carried only the higher rated goods, refusing such as coal, manures, timber, etc., whereas the railway was a carrier for everything. Twenty-five per cent, of the rail traffic for 193-1 was coal, 1.400,000 tons being carried for 1.31 d per ton per mile, and 10 per cent, was manure at less than Id. At the conclusion of the meeting refreshments were provided and toasts honoured were: Railway Department (Messrs. W. K. Williams and J. Crozier— Messrs. Grant and Mackay); Ohura Chamber of Commerce (Mr. J. Gray— Messrs. W. K. Williams and A. McClure); Otangiwai Ratepayers’ Association (Mr. R. Dench—Messrs. J. C. Higgie, R. Etherington and T. B. R. Julian); president (Mr. Mackay—Mr. M. J. McAvady); secretaries Ohura and Matiere Chambers of Commerce (Mr. H. Turner—Messrs. A. K. Margan and Salmond); Press (Mr. M. J. McAvady—Mr. T. B. R. Julian).' .