THE RAILWAY DEPARTMENT AND MOTOR TRAFFIC.

Manawatu Herald, Volume XLVIII, Issue 3568, 27 November 1926, Page 2

THE RAILWAY DEPARTMENT AND MOTOR TRAFFIC.

On Thursday evening Messrs V. Stanley and Pringle, Business Agents, N.Z. Railways, were present at the monthly meeting of the Foxton Chamber of Commerce, held in Ross’s Rooms, to explain their Department’s policy in regard to vehicular traffic, at the request of the Chamber.

The President (Mr J. K. Hornblow) extended a welcome to the Agents on behalf of the Chamber. Mr Stanley, in returning thanks for the welcome, said that his Department was willing at all times to meet public bodies and the public generally as it was only by giving the public a knowledge of the difficulties under which the Department labours, and how it arrived at its tarriffs that they, in turn, could understand how to give the Depart; ment support.

In dealing with the Railway Department’s policy in regard to vehicular traffic, Mr Stanley said that all would agree that until a few years ago his Department held the monopoly in goods and passenger transport in New Zealand. With the advent of the motor bus and lorry conditions had altered. These vehicles had taken most of the payable traffic away from the Railways, particularly so in suburban areas. The Railways had many arguments in its favour. They gave valuable concessions to workers which the buses could not give and they charged very low rates on some commodities. These low rates were charged for developmental purposes, but despite these facts, the motor buses who charged for service, had taken away the cream of the traffic.. Consequently, the Department had decided to go in for bus transport. It had decided on certain area? where they thought 'best, and intended to put buses on in these localities. They would not bind themselves to purchase competitors’ plants, although in many cases, it was doing so. Mr Stanley instanced the Napier-Hastings run. Here the Railway Department had taken over five buses from a private firm and they were now negotiating in another big concern elsewhere. If these ventures were successful the Department would continue with them and enlarge on the plant according to the business offering. He eolud not tell just how or where the scheme would be extended. The Government buses would not be bound down to run between two set stations. The Department was out to extend its operations as a transport service and carriage of passengers and was out to make the scheme pay by getting back the cream of traffic that they had lost to private enterprise. The co-opera-tion of buses and trains might save a considerable amount of money as some trains could probably be cut out. Money so saved would be, a valuable sinking fund for the buses. Continuing, Mr Stanley said that it might appear an unfair thing for the Government to compete with private enterprise in this manner, but the State has no concessions. Tt will purchase its buses in New Zealand, pay the same tax as those in private business do, will pay standard wages and charge a reasonable fare. It could not be'said that the Department was trying to seek an advantage over private enterprise. It, must also be remembered that private enterprise took all the traffi,c from the Railways, and they were only out to get it back. In the future when applications were received for new lines to be put down, the matter would be given careful consideration, and where it would be a more payable proposition, buses and lorries would be put on. The great advantage about these vehicles was that they could operate on practically any road and could run in one direction to-day and a different one to-morrow. In this connection they had a. great advantage over the train in the suburbs and certain other parts.

Air Stanley said that where possible, his Department w r ould buy out existing transport’businesses and this, he thought, would tend to remove any soreness. This would he the general principle on which they would work, but certain factors would operate and the Department would use its own discretion, but as far as possible, they would buy out.

In regard to finance, Air Stanley said that the bus finances w’ould be kept strictly separate from that q£ the running of trains and it would be possible, when the statements were published, for anyone to see exactly how. the buses were paying. Holders of season’s tickets on the railway, he said, will not be able to change over to the buses with those tickets. The Department intended to go cautiously and deal with each individual application for buses on its merits. Preference would be given to places where the Department had lost most traffic. Touching on a matter referred lo by the Foxton Harbour Board, in a letter to the Chamber wherein the Chamber was asked to support an application for a reduction in the railway charges on certain commodities carried by the Railways, and where it was also pointed out that the same class of goods was carried between Wanganui and Palmerston N. at a much lower rate, Air Stanley said that the Department had found the competition of road vehicles between AYanganui and Palemrston N. a serious proposition and the charges had been lowered on this line to try and regain the lost traffic and make up for the deficiency by carrying a greater bulk of goods. One point that was very often lost sight of in connection with the Railways was that

the great bulk of traffic carried by them was at rates that just paid for the cost of haulage and no more. All Railway rates were fixed on what a connnodity could bear. He was safe in saying that threequarters of the goods were carried by the Railways at “developmental” rates —actual cost of haulage. This developmental rate was made to assist the farmer. Manure was one commodity so carried. By assisting the farmer in this manner they were assisting to increase productivity and so add to the general welfare of the Dominion. The more manure carried, the more grass produced and consequently the greater number of sheep and cattle can be carried by that'land, and, indirectly the Railways should benefit by the farmers transporting more commodities. But unfortunately that was ’where the Railway Department was up against it, to a great extent, because a great number of farmers were in the habit of getting the commodities carried at the cheap rates by rail and letting the lorriesdo their other work because they were a little cheaper than the rail. It was impossible for the Railways to pay if this was going on. The Railways, it must be remembered, were a Slate concern and were run • for the benefit of the whole country. It. was only fair that they should be patronised for high and low rated commodities and so strike a balance. Unless the Railway Department could get a fair share of the high rated goods they could not pay. The Wanganui traffic, said Mr Stanley, had dropped to zero since the motors started running. When this happened the Department asked the question: Cant we reduce our charges to those of the motors and get a sufficient quanitty of the traffic to do so This had been done and the sole object of the reduction of freights on this line was to recover the lost traffic, and he was pleased to say, that to some extent, this had proved successful.

The Foxton line could not be compared with the Wanganui line with regard to the prospect of traffic to be recovered.

In conclusion, Mr Stanley put up a strong appeal for the people to patronised the Railways. Any deficiency, he said, must come back on the people. If you persist in using both methods of transport, it will be impossible for the Railways to pay and don’t blame us. Mi' McMurray asked if the Railway Department intended to insure in the same manner in which the private bus companies were compelled to do. Mr Stanley said that the Department would not insure in any particular insurance company but would put aside each year an amount equivalent to the insurance premium and in the event of any accident occurring claims would be met out of this fund. The payments would be shown in the balance-sheets as separate balances. The result of this scheme would be in favour of the public as the profit so shown would go back to the people in reduced rates, or go to pay off other train systems. The solvency of the State could not be questioned.

Mr McMurray asked why it was that the Government did not now bring its coal through the port of Foxton.

Mr Stanley said that he did not think they could get boats to trade here with coal. He promised to look into the matter, however, and inform the Chamber as to liis Department’s reason for not bringing its coal thi'ough the local port. The President (Mr J. K. Hornblow) asked if the Railway Department would consider running a goods and passenger lorry and bus service between either Foxton and Shannon or Foxton and Levin, Mr Stanley said that the service would have to be a payable proposition before the Department would consider it. It was not an urgent service as compared with others, but' it would be given due consideration.

Alessrs Perreau and W. E. Barber returned thanks to Air Stanley on behalf of the Chamber, for his instructive address and a vote of thanks was carried by accumulation.