“BUSINESS IS TIRED OF FACING LOSSES.”

Star (Christchurch), Issue 19117, 9 July 1930, Page 6

“BUSINESS IS TIRED OF FACING LOSSES.”

DO FARMERS ENJOY UNFAIR ADVANTAGES? The position of the railways in New Zealand to-day is being watched very closely by business men, who are hoping to see some steps taken to remedy the present succession of losses. The necessity for cutting down public expenditure all round is being continually stressed. Free Transit. “What,” asked a business man meditatively this morning, “does an engine driver see? “What does he think as he takes his trucks, with lime and manure out to the farmer in the country'? “He knews quite well that the fanner gets these things carried absolutely free on the railways. Therefore, he knows there is nothing in his trip towards his wages, towards the cost of running his engine. “And he knows that in many cases these very* farmers will be sending their stock and produce away from the farms by motor trucks.

“Surely* there should be some reciprocity. The farmer can only get these services free provided he is prepared to give some quid pro quo and ship his merchandise back by rail. - A Fair Thing.

“The argument in the old days was that it was good business to carry lime to the farmer free—that it would result in mpre produce being carried away from the farm on the railways. But, with 1 letter roads and motor trucks that are able to go right on to the farm the farmer feels that he is not justified in using the railways for the reason that he can get better service. “Therefore, this may be the time to ask the farmer to pay for th* carriageof his lime and manures as only a fair thing towards the cost of running the railway**.

“While the town benefits from the country and the country should benefit from the town, the man in town cannot see why he should make good the losses on the railway's when certain interests can get services that cost a great deal of money and not pay* anything for them. Past Mistakes. “The past Government cannot pride themselves on any administrative acts' towards bringing the railways to a paying point. It is claimed, of course, that the New Zealand railways wilt, never pay until they are entirely outside the control of political agitation 1 and interference. “If Mr Stirling is the man to run the railway's he should be given a free hand to sack anyone, in any* position -whatever, notwithstanding his tenure of office, provided that he can do without his services and reduce running costs. “Take the eighty men that have been put off at Addington workshops Assuming that the annual wage of each of them was £250, the saving in labour costs would be about £20,000 that they use £40,000 worth of materials, there would be a reduction of £60,000. It is possible that similar batches of men could be put off from other parts of New Zealand, and it may be that we could save a quarter of a million pounds under this heading. A Trier. “Therefore, instead of being blamed, Mr Sterling should be commended as a trier—as one , trying to get the railway financial chaos into decent order. It is much better to have a trier than a drifter. We have had an example of drifting in Australia for many y*ears It would be better for New Zealand to get its house in order now than wait until the necessity becomes very much more pressing. We do not want to wait until a director of the Bank of England is sent out to discuss our affairs, as is being done in Australia at the moment. “If Mr Forbes is strong enough to put his house in order and cut down departmental expenditure drastically, he is certainly the man New Zealand wants, and undoubtedly the business community would stand to him to a man. “The business community is exceedingly tired of facing losses and facing increased taxation.”