DENIES RAILWAYS COMPETE UNFAIRLY.

Star (Christchurch), Issue 18469, 22 May 1928, Page 8

DENIES RAILWAYS COMPETE UNFAIRLY.

SPECIAL RATES ARE OFTEN ARRANGED, SAYS OFFICER. (Special to the “ Star.”) AUCKLAND, May 22. A reply to statements by Mr Charles Rhodes, chairman of directors of the Northern Steamship Company, Ltd., to the effect that the company was at. present faced with unfair competition by the Railway Department, was made yesterday by Mr E. Casey, Divisional Superintendent of Railways. Mr Casey also outlined the policy of the Depart ment in regard to business competition. “The fixation of special rates to meet competition is one that is common to railways the world over,” Mr Casey stated. “The railways have a commodity to sell, namely transport, and are often compelled through competition to accept a varying price and to depart from the ordinary classified rates in order to get business. In England 75 per cent of the total tonnage carried is conveyed at special rates, as distinguished from the ordinary scale rates laid down in the tariff. While the principle of supplying special rates in New Zealand is on a comparatively small scale it must not be thought that this principle is applied only where the Railway Department is in competition with the Northern Steamship Company. There are special rates in force between Lyttelton and Timaru, Port Chalmers or and Timaru and Dunedin and Invercargill, as well as in other parts of New Zealand. Notwithstanding what has been stated to the contrary, none of these rates is below economic level.”