RAILWAY TRAFFIC.

Hauraki Plains Gazette, Volume XXXVIII, Issue 5186, 3 October 1927, Page 2

RAILWAY TRAFFIC.

MOTOR VEHICLE COMPETITION. BOARD OF MANAGEMENT REPORT Referring to traffic matters in the annual report of. N.Z. Railways Board of Management the Minister of Railways (Rt. Hon. J. G. Coates) states: The present railway tariff has been in force since the 30th August, 1925. It is now under review, and in pursuance of the policy to keep the tariff up to date it will be replaced by a new issue towards the end of, the, current year.

With a view to further assisting in the development of the agricultural and pastoral industry, a substantial reduction was made during the; past year in the rates for artificial manure. That this concession, which dated from the 31st August, 1926, has brought about considerable increase in the quantity of artificial manures conveyed by rail is indicated by the fact that for the seven months ended the 31st March, 1927, 261,400 tons of this commodity were conveyed —an increase of 73,620' tons over the corresponding months in .1926. It is pleasing to note from the foregoing how fully the farmers of the Dominion have appreciated the reduced rate, and I anticipate that the; resulting increased production will to some extent compensate the Railway Department for, the concession made.

The tonnage rates charged for goods conveyed by rail are based on a classification which, although varying considerably in detail, enables, a general distinction to be made between what may he termed “lowgrade” and “high-grade” traffic. The low-grade commodities —artificial manures, agricultural products, coal, firewood, gravel, metal, and suchlike goods—comprise a considerable portion of the total tonnage, ajid upon these frieghts are charged which (having been determined . almost wholly with a view to encouraging settlement and development) are in themselves barely sufficient to cover the cost of transport. The road-motor carrier does not compete for this traffic, but directs his attention to the more valuable commodities and more highly-rated freight — that traffic, in fact, upoop which the; railways have depended to balance the loss made in carrying low-grade freight. It is reasonably contended that the low rates could be expected to remain only so long as thej Railway Department was able to secure its/ usual profit from the higher-rateid traffic. Now, however, the road vfehicle has in many instances bean successful in securing the latter. The railway problems arising out of these changed conditions cannot lightly be passed over, and it is doubtful, whether those who patronize) road services which are in many instances parallel with the railway route, realize that, through the loss in railway revenue consequent on the conveyance of goods by road, they (the public) are the direct losers.

A stable and equitable railwayrate system is essential to the success of the commerce of the country.