RAILWAY POLICY WRONG.

Star (Christchurch), Issue 17183, 29 October 1923, Page 7

RAILWAY POLICY WRONG.

“FINANCIAL TIMES” ON NEW ZEALAND. TOO MUCH FREE FREIGHT. By Telegrraph—Press Association—Copyright Sydney “ Sun ” Cable. (Received October 29, 12.5 p.m.) LONDON, October 28. The “ Financial Times,” commenting on the ,Ncw Zealand railways’ report, says that one of the features of the administration that is not to be regarded with unmitigated satisfaction is the virtual subsidising of industry at the expense of transportation. “ Thus we find.” it says, “ many services performed below cost, which moans at the cost of other users and taxpayers. Lime, for manuring farm lands, was carried. 4,506,500 tons miles for a trifle over a farthing a ton a mile. Butter, cheese rind road metal (the latter being for the benefit of motor competition, and entailing a- loss of £50.000 per annum) were in much the same position. In many other instances exceptionally low rates, granted to assist in establishing industries which are now flourishing, still remain in force, although the need for such help is past. “ The Minister states that any increase in freight rates, at this -juncture, to enable the Railways to earn interest charges, would tend to divert more traffic, to the roads. We imagine the solution of the problem could be found in ceasing to subsidise flourishing or competitive industries.”