RAILWAY FREIGHTS

Hokitika Guardian, 25 February 1930, Page 4

RAILWAY FREIGHTS

A HAMILTON PROTEST. HAMILTON, Feb. 22. Perturbation is felt by traders doing business in a variety of lines requiring load or rail carnage, over Mr Sterling’s,declared change of policy regarding railway frieghts. Mr Walter Seavill, chairman of the Fanners’ Auctioneering Company, which has large ramifications throughout. .South Auckland, says that what a mr Sterling advocates is not equitable,, notwithstanding his assertions to the x contrary, in that the policy lie isr adopting is frankly (vide his second, paragraph) one of robbing Peter to pay Paul. Neither is it'good business. “If the Government engages in commercial pursuits,” lie said, “it should do so on a competitive basis,’ and not take advantage of its unique -position, to ride roughshod over private enterprise. If the'railways are rendering good national service by carrying manure, etc., at below cost, and I think they are, the Department concerned should be recompensed by th'e Departments of Land and Agriculture.. I believe' this' is being' done up to a certain amount, and this principle might be given further effect'to. Thiswould be equitable, cintl would be. an. example . of;'; (-lie Government’s ability to take a long-sighted view of the matter. To try and make up . the leeway lost oil' the' transport of one class .of gco-s by taking advantage of their position' by extracting it from the pockets of those who are; affected by the rates ruling on other classes ris obviously unfair. Freights have to be reflected in the retail price .charged, and what hope would ,certain companies have of successfully conducting that part of their business coming under thfe classifications A, B or C. with firms dealing in these goods only, ■ and who, by carrying them by lorries at'-a cheaper'rate than the railways will do the work, can snap their fingers at the Railway Department, seeing, that the Department has no way 1 of successfully retaliating by penalising them on goons classified under D or' E. 1 '

REPLY BY GENERAL MANAGER

WELLINGTON, February 24

The General Manager of. Railways, Mr H. H. Sterling, interviewed Regarding the statement made by Mr AYi' Seaville, Chairman of the Farmers’ Auctioneering Co., of Hamilton, in regard to the railway’s rating policy, said that he was quite at a ioss -to understand . 'Mr Seavilie’s idea I pF equity -and sound, business, it .was the very opposite to equity .that the Farmers’, Auctioneering. Coy should send its high-rated, goods by- road while continuing tc send its low-rated goods by rail! Act this was what \it y/tis doing.. , Mr Seaviffe (added Mr Sterling) said that the business should, be-ear* ried on a competitive basis. Even accepting Mr . Seay ille’s own statement in this respect, they still had to consider what was fair competition. The present action of the company in question was obviously unfair to' the Railway Department. Every business must iise e pvery reasonable means in its power to protect itself. There could be no possible doubt that, the action that had been taken by the Railway Department was justified, from every ponit of view of equity and sound business. It war. unfortunate that Mr Soaville’s company had, notwithstanding every 'effort of the Department’s officers to prevent it§ doing so, adopted a. short-sighted policy in; its relations with the Department.