DEPUTATION TO THE GOVERNMENT.

Globe, Volume IV, Issue 411, 6 October 1875, Page 3

DEPUTATION TO THE GOVERNMENT.

A deputation from the Chamber of Commerce, consisting of the chairman (Mr W. H. Lane), and Messrs L. E. Nathan, J. Inglis, and George Stead, waited on the Government yesterday with reference to the increased railway charges on the Canterbury lines. The deputation was received by his Honor the Deputy-Superintendent (Mr R. J. S. Harman), the Provincial Secretary, Secretary for Public Works, and Minister of Education.

Mr Lane, who introduced the deputation, said they had been appointed by the Chamber to confer with the Government on the subject of the increased charges now prevailing on the railways of the province, and he hoped that the Government would, after hearing their representations, see their way clear to meet the wishes of the deputation, whose views on this subject, he believed, represented those of the public generally. Mr Nathan deßired to point out to the Government that the operation of the increased rates was prejudicial to the true interests of the province, inasmuch, as it increased the difficulties to those already existing, of fostering and carrying on a coastal trade; the present rates rendering this next to impracticable in the face of the competition of the lower rates on the Otago lines, which the mercantile community here had already to contend against. In Otago, the system of carrying all goods through to Dunedin, and sorting there, was found to work well, and even those goods intended for Port Chalmers were so carried, and taken back agaiu free of charge, which plan had answered very satisfactorily, and was found to be more economical than employing a double staff of hands. It was his opinion that if the same plan were brought into operation here, it would prove a saving of expense, and thus enable the Government to make a reduction in the present rates without aff. cting the net returns from the lines.

The Secretary for Public Works said the Government had been made acquainted with the mode of working referred to on the Otago lines, and the matter was then under their consideration.

Mr Nathan would again refer to the very great difference in the rates charged on the Otago lines compared with those of Canterbury. While the former carried merchandise at a through rate of 7d per ton per mile, iucluding terminalchavges,the rate on theLyttelton and Christchurch line was 13d per ton per mile, exclusive of wharfage. He thought it unnecessary to dwell longer on this point, as the difference in the charges was so considerable that it must be obvious to all that with such extreme rates the merchants of Canterbury could not possibly hope to compete successfully with those of Otago, where so much lower rates prevailed. There was a feeling obtained outside that these high rates were levied in order to secure a return of interest on the large outlay expended in the construction of the tunnel. That work, he considered a provincial one, and the expense of which should be a charge upon the general revenue of the province. The Provincial Secretary said that the opinion formed that the interest on the cost of constructing the tunnel was made a charge on the Lyttelton and Christchurch line was a misimpression, as it was not so charged. A large amount of money had been, and was now being expended on the wharf accommodation at Lyttelton, and this must in return be made to produce an amount commensurate with interest on the capital so expended. Mr Stead would offer the opinion that even though the Government might have found the late rates unprofitable, he still thought the enormous increase which had been made was unwarrantable and unnecessary. The wharfage rate previously existing was Is per ton. This rate continued to be charged for a considerable time, when the appliances for the despatch of business were very inefficient. Under the present tariff and with increased facilities for discharging vessels by lie aid of the steam cranes now in use, the

wharfage rate was raised to 2s 61 per ton, exclusive of fid per ton craneage. Even if the former rate of Is did not pay. sur<iy C'ie increase of 200 per cent (aud such the sent tariff had reached if craneage whs added) was too great an advance for the purpose of bringing up any small deficiency that might have been found to exist in the wharfage, account. He had good authority for slating that a private wharf in Lyttelton had been worked by the lessee—who paid a large rental per annum— under the old rate of 1 sper ton, which rate had left a viofir to the lessee afterpayment of rent ; and he thought that ii a private wharfinger cou'd managu to make a profit out of one shilling per ton, it ought to be altogether unnecessary for the Government to make a charge equal to three times that amount.

The Secretary for Public Works said the Government were differently circumstanced to that person, as they were extending their wharves, aud expending a large sum of money in increasing the wharf accommodation, the interest on which must be paid, and the wharfage account must be made to show a char profit equal to the interest, which would amount to £6OOO on the money they proposed borrowing, before it would be accepted as a security by lenders. Mr Nathan urged the opinion that it was impolitic to make the present traffic bear rates equivalent to interest on the money in course of expenditure on works which would undoubtedly accommodate increased traffic, aud so bring in of itself increased revenue. In estimating the charges for labor on wharves he thought that all the labor which was incurred under the through rate was charged by Government against the wharves, instead of appearing against the terminal charges, to which he considered it properly belonged. He feared that if the present almost prohibitory rates were adhered to, they would induce competition by small crafts, which would tend to lessen the revenue receivable from our railways. As a proof that that idea was not an improbable one, he might mention that last week it was announced that a schooner had arrived at the steam wharf in the Heathcote river with a cargo of coals from Lyttelton; and that morning a gentleman had informed him that he had counted no less than four vessels in the same river laden with cargo for the Plains. Now it certainly could not be advisable to create this competition, which it was not unlikely might be increased to a very great extent if the high rates prevailing on the railways were adhered to.

Mr Inglis cordially agreed with the remarks made by the previous speakers, that the excessive rates charged on the railways placed the commercial men of Canterbury at a great disadvantage, and he feared that the principle prevailed of making the short line between Lyttelton and Christchurch bear heavier charges, in order to meet a portion of the deficiencies of the unprofitable working of the branch lines of railway. The Provincial Secretary said it was yet to be ascertained that the branch lines were unprofitable in their working. Mr Inglis must acree with what had been said about the present high rates of wharfage, and felt that if such wharfage rates were maintained it would be much better for the community if the harbour works had never been undertaken. If the Government would give an assurance that these rates would be continued tor some time, he could assure them that a large quantity of merchandise would be brought round by the Heathcote instead of being carried by rail. The Secretary for Public Works said the former rates charged had not been found to pay, and the Government did not compel any one to use the wharves unless they liked. Mr Inglis said the expenses for labor attending the wharves were comparatively trifling, and if the Government lost that traffic they were losing a profit towards paying the interest on the loan. He would also point out that, although vessels obtained an advantage from the use of the cranes, the Government also derived an advantage from the quick discharge of the vessels, which were not now compelled to lie so long at the wharves, and in times of pressure they (the Government) were thus enabled to use the wharves to much greater advantage than when the facilities for discharging were not so good as at present. The Secretary for Public "Works said that up to the present time the Government had only received one fortnight's accounts of the new rates, but in a few days they would receive another month's accounts, and until then they had not sufficient data to go upon to determine what the increased rates were likely to yield. It was not the desire of the Government to impose additional charges unnecessarily, and if it were found practicable to reduce the rates consistent with makiDg the railways pay their working expenses and interest on cost of construction, then the Government would favorably consider the matter with a view to reduction. Mr Lane was glad to hear the Government express themselves that the present rates were only tentative, and that a prospect existed of a reduction being made in the rates if the returns warranted. He trusted the result would prove sufficiently satisfactory to enable the Government to meet the wishes of the Chamber. Mr Lane having thanked the Government for their courtesy, the deputation withdrew.