ROAD V. RAILWAY

Hokitika Guardian, 27 August 1925, Page 1

ROAD V. RAILWAY

TRANSPORT COMPETITION. DEPARTMENT'S NEW POLICY. Special reference to the new policy of (lie Railway Department in meeting the competition of motor transport is "made in the Railway Statement . “Tim most important departure I rum the Department’s pits! policy (says the Statement) lias been the creation ol special rates to meet special conditions due to serious motor competition in certain localities. Investigation showed that this competition was securing a good deal of the best paving, business. and leaving the lower-1 reighteu commodities for the Department to handle. There were instances in which carrying linns brought tin. l Witt or clas.s of goods to the nearest railway station, while carrying those in the higher classes right through to destination byroad. . .. “Ben/.ino and dairy produce constituted the backbone of the motor competition, and to the carriage of those much attention lias been given bv the offices of tlm commercial branch aiul the board. Benzine has been reclassified from Class A (rale and a ball m 1922 to Class B (plus 2n per cent. P" „,,V quantity). representing a rc-duc-tion from £3 Its to £2 11 s ltd per ton lor a distance of K><> miles. In addition, special rates have been arranged to secure traffic in certain districts. As a result, our benzine traffic is increasing, and the position is being very closely watched. ••For dairy produce, special rates have been arranged to recover traffic from competitors, and the latest reports indicate that in the forthcoming season the result will be highly *nu>factorv. It is natural that diiierentialiou (if rate should give vise to some complaint against such a policy tn a •state-owned undertaking such as the railways, but the study given the problem bv those concerned made it. cl.-ai that in localities where the motor could compete under the conditions cxistin extraordinary measures would ha\o 1 l>o adopted. Unless it was checked, this comnotition would make such - o„s inroads in the Department s revenue as to leave the Government m> alternative but to increase freight rales all round to make ends meet In addition, the further loss ol traffic would mean reduced service which in itself is sufficient under modern conditions to drive traffic away. “Undoubtedly the steps taken «eie |„ the public interest. In this connection it is clear that tlw position of rat wavs versus roads is economically unsound. inasmuch as commeom lorry-owners have not been cal ed upon to pav a, quota of the cost ot construction and coni tlir> service o»>i*uiku. liionsnnite \\nn mi ‘ whereas the railways have to meet 1 such obligations. 1 have stat.ul fion time to time that where it is found that districts are more economical y ami conveniemlv served by road Dm bv raihvav. tbev should have one. am ' S, ball,: It » clrar.. hovrewr. fh«t tbit ran bn only awsrtaincd bjJ> “»>- ' both systems on an even tooting as fai ' ns „.av be possible, and scientifically comparing the relative cost » sen > • The Railway Board states that the Department was practically - l »'“ l ; ing the con-tructinii and main ena ' of roads to the extent ot £(.•>• -'>o l K * 1 annum by carrying mad metal at an ’ unpayable rate, which , 1111 ' 1 '. 1 • ‘ cause of the Department s h.u U- • reduce its rates on the. higher clameet rood competition- _____