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Hokitika Guardian, 8 October 1929, Page 4

As is remarked in the thought for the umes to-day, the main interest in the annual railways statement presented to Parliament last week, is attracted by the aide review of tiie railway workings by the General Manager. As a contemporary lias put it, »\ir Sterling’s report shows a grasp of railway problems and an unusual gift of exposition. He points out that i.ie railways are being judged from a commercial standard, but are not run entirely 01. commercial lines. The Minister says a similar tiling when he points to the consideration given in the past to the developmental as opposed to the purely profit-making factor. Non-com-mercial aspects have to be considered, says the General Manager; the Government determines nali.y and the management lias to carry it out. The question is whether this non-commer-cial policy had been pushed too far. 1 lie greatest problem before the Government and the management is motor competition, and this, .Mr Sterling examines with courage and candour. He says that much motor competition is uneconomic; that motors are catering for the cream of tlie traffic; and that if the railways try to recoup themselves by raising rates on other goods the results to the primary products will be serious. He appeals to the public to support State transport—that the customer of the motor must pay his share of the deficit on the State system. Such however, have little effect. The public will use the svstem, that suits it best, and Mr Sterling admits that where it could be shown that a service' can he better performed by rotor than by rail it would be irrational to employ rail. In these terms he defends State regulation of transport; no regulating institution whose decisions were irrational could long survive. Let us hope he is right.