ROAD TRANSPORT

Wanganui Chronicle, Volume 80, Issue 225, 22 September 1937, Page 8

ROAD TRANSPORT

GOVERNMENT POLICY DISPUTED PURCHASE PRICES [ Per Press Association. ] AUCKLAND, Sept. 21. An estimate that for the expenditure of £lBOO the Railway Department and public of New Zealand will make an annual profit of £24,000 through the purchase of road goods, transport services was made to-day by Mr L. P. Leary before the transport tribunal, in suggesting that the compensation offered for the goods transport services that were being taken over by the Government represented much less than justice to the operators.

The case of Feltons Waikato Transport, Ltd., occupied the attention of the Tribunal to-day, Mr Leary representing the company and Mr Meredith the Crown, Sir Francis Frazer presiding.

Opening for the Crown, Mr Meredith referred to the chaotic competition of road transport which had engaged official attention in every pari of the world. It was obvious that their operations must ultimately come under control and inevitably cease. He spoke of the ill-effects brought about by road transport, ano said that companies were asking for compensation on something they never had, namely, the right to run in perpetuity. During evidence before the tribunal it had been pointed out that the gross earnings of Felton’s and McClymont-j services in the Waikato were £36,000 annually. As an allowance in compensation for the loss of their business the two firms are offered a total of £lBOO by the Government in addition to valuation of the plant, equipment, etc. It was admitted by Mr Henry Valentine, second assistantGeneral Manager of Railways this morning that he would estimate the additional costs to the railways in running these services at one-third of their earnings. This, Mr Leary submitted, would give the department a profit of £24,000 annually in perpetuity. Even if the Government took them over as road services, rather than including traffic in railway earrings. an annual profit of £12,000 would result.