FREIGHT RATES

Manawatu Herald, Volume L, Issue 3992, 3 September 1929, Page 3

FREIGHT RATES

PREFERENTIAL TARIFF DISCUSSED.

The question of the granting of a preferential freight rate by the Railway Department for goods distributed through the district from the port of [Foxton was discussed at the monthly meeting of the Harbour Board held in Palmerston N. yesterday, when representatives were present from the Palmerston North, Levin and Foxton Chambers of Commerce. Owing, however, to the paucity of information available concerning the factors influencing the position, the hoard decided to await of a promised letter from the General Manager of Railways before taking definite action.

[Dealing with the matter under discussion, the board’s secretary (Mr. Rangiheuea) submitted a report to the effect that the commercial agent for the department had visited Foxton to investigate the merits of the board’s claim foir preferential railway rates on goods ex. ship, classed A, B, C, and D. The following facts were pointed cut to him on that occasion:—

1. —That, by giving Wanganui a preferential railway rate, the department has placed Foxton at a disadvantage in serving its ratepayers and their goods on the same basis as obtaining at Wanganui. 2. —That the department is compelling the hoard .to cease operations and to continue levying the harbour rate which is £7OOO for the current year.

3. —That the taxpayers in the Foxton harbour rating area receive no differential scale of taxation in respect of their contribution to the Consolidated Funds from which the department receives monetary assistance during lean periods. 4. —-That the request for a preferential rate is to affect the rating area only if the department is unable to grant more.

5. —That the department by its action in creating preferential rates for Wellington and Wanganui has encouraged a. firm to penalise all flour landed at Foxton with ,a tax of 10/- per ton in order to equalise the price of a loaf of bread throughout the country.

Minor details were discussed at considerable length when the commercial agent assured us that he was quite unable to recommend anything as his order of reference did not permit him to do so. In regard to the question of reducing the minimum load per truck from the board’s private siding from 1A tons to a i-ton, the agent assured us that he would recommend the general manager to reduce the minimum to 1 ton in lieu of It tons,

NO REPLY FROM GENERAL

MANAGER

Mr. J. A. Nash, M.P., stated that he had been informed by the General Manager of Railways that the freights from Foxton to Feilding were cheaper than from Wanganui to Feilding, and had given an assurance that he would forward advice to the board on the matter, but unfortunately no letter had yet been received.

Mr. M. E. Perreau (Mayor of Foxton) and representative of the Fax ton Chamber of Commerce, considered that the present position was grossly unfair in that there should be a preferential rate from (Wanganui, while those in the Foxton Harbour Board were liable for rates to the extent of £7OOO per annum in addition to the full freight charges for goods handled through the port. At the same time Wanganui was obtaining the benefit of a reduced rate.

Mr. Nash: You are up against a brick wall. The Railway Department does not want to encourage freights through Foxton. Mr. J. Linklater, M.P., chairman of the board, commented that the Railway Department seemed rather obstinate in the matter, as preferential rates should be in its interests.

Ah'. Nash'. suggested that the Chamber of Commerce representatives combine to form a deputation to the Minister and General Manager of Railways. They would never get anywhere until they took that course of action.

Mr. Winks, representing the Palmerston North Chamber of Commerce, expressed his agreement with Mr. Nash on certain points, but stated that the objection had boon raised that the port was not suitable for a constant service in freight rates, and, further, that a 1 referential system would be detrimental to the railway traffic between Wellington and Palmerston North. There were a great many difficulties which had to he recognised.

The chairman: The best thing that we can do it to send a good deputation to the Minister. We should push this matter ahead.

LEVIN’S SUPPORT,

i Mr. Blenkhorn (Levin Chamber of 'Commerce) said it had to he remembered tlia.t the wharves were purchased from the Bailway Department at a cost of £SOOO, and the board should be given the full benefit of the business accruing. It would have the full baching of the Levin Chamber, which would be glad to be represented on any deputation. It was pointed out by Mir. H. E. Garbett (Foxton Chamber of Com-

nierce) that practically nil the goods handled were from southern ports and railway business on the Wellington section would not be affected. Efforts were being made to establish a connection with the South Island ports as a progressive policy. It was only fair that Foxton should have the same advantages as other ports. There were two good boats now trading there.

The chairman: And very suitable 'ones, too. Mr. Garbett added that the district was penalised to the extent of 10/- per ton on flour and 7/6 a ton on biscuits above Wanganui. The chairman observed that, if the preferential rates were obtained, the trade of Foxton would be greatly increased. Mr. F. S. Goldingbam stated that the whole district was affected. Daunevii’ke drew its flour supplies from Wanganui or Wellington and not from Napier. Foxton could supply at a cheaper price iLpgranted the preferential rate. He would do anything to support the port of Foxton for the sake of Palmerston North.

Mr. Winks pointed out that, if the preferential rate were to operate from Foxton to Palmerston N., goods could be forwarded by sea from Wellington to Foxton and then transhipped to the detriment of the freight on the railway between Wellington and Palmerston North. He was not opposed to the preferential rate, but every aspect of the question should be considered.

The chairman: Then why should there be a, preferential rate from Wanganui? The same applies there.

Mr. R. Edwards stated that it seemed to him the Railway Department was penalising about 60,000 people in this district in order to make the system pay. RELIEF FROM R ATES.

Mr. W. G. Ross: In the event of he preferential rate going through, ,vill the increased trade lighten the ates in the hoard’s area.

The chairman: Certainly, it will. We have two good boats and I don’t think that there will be any need to strike a rate at all next year.

Mr. R. Edwards stated that, with the support of the business community, an excellent port trade could be developed at Foxton. The chairman stated that the matter was an important one calling for immediate action. He said that it was reassuring to receive the support of Palmerston North. The preferential rate had been given to Wanganui and the same consideration should be extended to Foxton.

A special committee was set up to await the airrival of the, letter from the General Manager of Railways and to consider it. prior to deciding whether a deputation to Wellington was necessary to deal with the matter.