THE RAILWAY "CUT":

Dominion, Volume 12, Issue 5, 1 October 1919, Page 2

THE RAILWAY "CUT":

SITTINGS OF ROYAL COMMISSION .COAL TRADE COMMITTEE'S ACTIVITIES The Royal Commission which is inquiring into the cause of the railway "cut" .advanced)another stage yesterday after-: noon, when its sittings were continued. Tluj commission wns presided over by Sir. J. P. .Maxwell. Associated with him . woro Messrs. J. March banks and W. D. Hunt. A. 11.. Miles, a member of the Coal Trado Committee and the Munitions and Supplies Board, gave evidence touching tho activities of the board. Its aim, Jin said, was to advise the Minister as to where ho could secure supplies of coal. It was only after August, 1917, that they undertook tho work of rationina the conl. Tliov had regular advice from tho railway's us to their requirements, but they had oonio difficulty in obtaining the figures from the Department. Air. .Myers: At what.stagef Sir. Slilesti Practically throughout the whole of our association with tho Department. Mr.' Miles went on to say thai; all along tiio line his committee did.not set tho "hand of fellowship exI ended to them from tho Kailway Department that, thev were entitled to. 'X very much regret,' he continued, that M,-; Aekins in his evidence has'chosen to mako an unjustified arid vicious attack on tho board. I call it very outrageous and nothing else—unjustified by the circ.uiristiinces. Our main object was to keep tho' railways supplied with all the ooa[ wo could possibly obtain for them. Preference wnfl given to the Railway Department on every possible occasion where wo could exerciso this preference. Thi9 fact has evidently not been appreciated by the Department, b'roiti the start of tho difficulty wo realised the importance of tho railways to this country. Wo realised, however, if the Railway Deptft'tinent were in control of the coal:distribu-. tion. what would, happen to our other industries. No wonder that Sir. Aekins is somowhat irritated with Coal Trado Committee, becauso he evidently wanted his own way. If the Coal Trade Committee had not existed, there ivould havo'becn great disaster throughout tho country to other industries. The Railway Department ivould have had tne c'oal, and you can see from their, evidence how difficult it wotild liavo been to have mado them disgorge tho coal onco they got hold of it." Mr. Slites "wciit on to point out that the committee had really allowed the Department more coal than it should have got, witU the result that Auckland narrowly averted being plunged into darkness, and it had to borrow V quantity of' coal trom the Department'to leiul to the Auckland Gas Works. . : Tho chairman ■.■Well,' sir;'l would liko to say at this stage that the board's reputation will survive 'all the attacaa mado on it. ... . v "Unwarranted and Ungenerous." , Witness, continuing, considered that it was his duty to his, colleagues an d thoso associated with thein to say tnat . tne charges -made by the Kailway Department officials against tho committee were not only'• unwarranted but ungenerous. "Although they will not admit it," ho. added, "they got more coal with the assistanco of the committee than they would have without it. . Of course tlfCy, won't admit this.They won't ad■mit. anything!" -. ■ 'In"' : aiißwer to tho '.vitness sijid that the? committee did not exercise any control over local shipping. Tta chairman r Did, the . Government exercise any control over local shippint? ■ --'■■~ ■ Witness: My committer urged tho tjqrernnient to appoint. a local cont/bller of shipping. We found vessels, going in other directions -which should lave been kept in the coal trade. Our advice to the Government in this connection did not, however, prevail.* Witness added that the Union Company had boats engaged' in. cargo-carrying to Vancouver; and fcSan' Francisco, which he at the time; considered might' liavo been diverted. to 1 the coal trade, but doubtless there wero reasons for their being kept in their original channels. Referring again.' to the allegations of the. Railway Department, witness remarked: "Had Mr. Aekins only known 'what had taken placo between Sir. Hiley and our board he would have been, less ungenerous to us than ho has been. I can only stignia'tiso; Sir., Ackins'S'attack on tho board, as contemptible."

Witness, .continuing, gave three-in-: stances where the Railway Department had turned down offers of freight to import coat to the Dominion for its uses. He''quoted the" case'of the Rnuronga, which in February, 1917, was offered to tho Department at 21s. per ton, 1 3000 "tons. To tho .board's surprise the Department turned the oil'cr down. This ivas not a high freight rate. Mr. Myers: 1 say that our (tho ' De'partmental). file, as far jas it goes shows that it was .accepted. ; .In the last letter I. have on February.l9l7, the General Manager states "in 'tho circumstances 1 am prepared to accept it." Jf you havo ; 'any files to the contrary .put them, in, ' Witness rejoined that there, should bo a filo at the office to. the effect that tho Offer-was turned'down. .. If this did not turn out to bo the case, ho wouldWith-. draw the charao he had made. His impression was, nowever,. that tho Department refused to accept it.

In answer to further Questions witness said that in April, 1917, the Department accepted a freight rate of 21s. per: ton tor the Kumara, showing that they realised that they had-made a mistake in not previously accepting the "offer of the Rauronga at a similar figure. With an offer such as tho Rauronga turned down the board was less keen in hunting around for other ships for the Department. To Mr. Blair": Tho Railway Depart ment asked for coal control in 1916. Ships were the difficulty. Coal could be, got provided transport could be made- Available. He entirely disagreed with the suggestion of the' Railwa y( Department''that if it had been left to its own devices it would have got along all' right, Had the Railway Department' taken all tho offers of ships made to it it would liave had'more coal. , •".■ .■■ Tho chairman: We are not horo to sit on judgment on the board. iMr.-Miles; I.clearly understand that my board is not on its-.trial. "Reading English." 1r..-!insr\ver to. Mr. Blair witness said that he took it that the late Minister of Railways' farewell statement on his relinquishing his portfolio was a- grace, ful acknowledgment of the efforts of tlie •board to Cope with the coal situation. Mr. Blair: Mr. M'Villy suggests that tho Minister's letter really refers to tho RailwaV Department officers. Mr," Miles: M-. M.'Villj; lias got a different way of reading' English than I have.. That's all.

Returning again to tho vexed question 6f the shortage, wituess: remarked: "Wo had only a lew small'loavos and fishes to go round,-, and wo could not. perform miracles." ' • -'■ ;

Sir. Blair: What caused the railway '|CUt"? . : ■ Witness: The railway representatives soy that the Munitions'and Supplies Board was responsible for it. . To my liiiud there can bo no question but that Die causo.was shortage, of coal and nothing else. The "go-slow" policy, strikes, aiid the acuto position of Shipping during the war period—theso were the rcusonu. The Railway Department could not get coal, and nobody could get it for them. 1 ■ • Further cross-examined by- Sir. Myers witness said, that he considered that rightly or- wi'6'ugly .Sir. Sl'Villy had followed. Sir. /Aekins; in blamiug, tho board for the shortage. • Tho chairman.: I think there is no use in pursuing- this.point any further, S.Witnoss:. Mr."Aekins and Sli:. Sl'Villy have had'-.their shot at us. Let them take their gruel in tlioir turn. i Sir. ■ .Myers; in : referring lu t'lio complaint of witness about -tho difficulty in from the Railway* De- . partmbiil,.tasked: If the-records I show - that you'had got these returns ! every week? . '< . | '" Witness: Then I aui mistaken. ;

All'. Slyers: Well, .they do show it... Witness: 'Well, 1 am only speaking from memory. • * i Alter liciiig cross-examined on si' 1 , few other- points witness concluded hisi.ovidcnco. . i

A Suggestion Refuted. Brief evidence wits given by Francis AVilliam Mac Lean, Chief Engineer of In answer to the chairman witness said that tlioro was_ absolutely no foundation for tho suggestion that tho stuto of tho railroad was in some degree lesponsiblo for the curtailment. of tho service.. Witness -pointed out that if tho Department kept the line in sufficiently good repair for, say'one train, there was 110 reason why two trains or moro 1 should not run over the same line. The 6toek of rails had been sufficient to keep the, railroad in thorough repair. Witness having concluded his evidence the commission adjourned till to-morrow morning.