"LOCAL" RAIL RATES

Taranaki Daily News, 3 December 1938, Page 6

"LOCAL" RAIL RATES

QUESTION IN TARANAKI MORE THAN 10 PER CENT.? POSITION IN PROVIltCE Merchants and other Taranaki business people are Concerned lest the Railways Department intends to abolish "local" freight rates when it flattens out the higher rates for general merchandise next April. It is pointed out that if that step is decided upon it would be possible for class C rates to advance more than the 10 per cent. general increase to operate from December 11. The Minister has announced the elimination of the two highest tariff classifications (classes A and B) and their merging with the next lower classified rate (class C). With the object of meeting road competition "local" rates have been in operation on certain sections of line since about 1930. For example, freight on goods carried from New Plymouth as far as Hawera has no A, B or C ratea. Goods in thOse classifications and in class D are charged a special rate of 21 a ton, compared with £1 3s 8d, the schedule rate for class D goods. There is also a special rate of 21 7s 6d a ton for rail transport from Wanganui to Hawera.

Not on the Reverse. Such "local" rates do not operate on the reverse journeys from Hawera to New Plymouth or from Hawera to Wanganui. A reporter was iriformed yesterday that the reason for one-way reductions only was that the special rates were directed to meet he&vily-lo&ded sections of private road transport. The lorry services were bfest patronised on th~ southward journey as far as Hawera and on the northward journey from Wanganui as far as Hawera.

Another special rate operated from Wellington to .Wanganui with the object, It was stated, of attracting trafflc froto both road and coastal shipping services. "So the abolition of A and B rates will not be as widespread a concession as it would appear from the Minister's statement," commented a New Plymouth business man yesterday. The fear was expressed that in merging the three top ratingS "local" rates would be abolisthed and the level of charges fixed about clase b rates. Thus the rates for class C freight would be raised to the next class before having the proposed 10 per cent. increase added. General groceries and household linen were included in.A, B, C and D classifications, it was explained. Manures wcrt rated class E> so th.at these would be affected only by the proposed 10 per cent. increase. Complicating factors as far as Taranaki is concerned, the reporter was informed, are anomalies arising from differentiation between rates inland froni the port. In some instances it costs more in rail freight from the port to New Plymouth than it does from the port to Inglewood and Waitara.