RAILWAY PROBLEMS

Rotorua Morning Post, Volume 2, Issue 348, 8 October 1932, Page 5

RAILWAY PROBLEMS

("Post" Special Commissioner.)

BOARD FINBS DIFFICULTY WITH TRANSPORT COMPETITION. RESULT OF DEPRESSION.

Wellington, Friday. In the course of the Raihvays State- ■ ment for 1931-32, the Board refers to the question of competition in transport and emphasisos the difficulty fvhich has been experienced in stahi- * lising rates. "The statute lays down," says the report, that the service must be given at an eeonomie rate, and this leads to a consideration of the revenue and expenditure of the department. On the revenue side the principal faetor with which the board has found itself faced has been that which is affecting trade and industry generally throughout the Bominion, and, in-

decd, throughout the wnoie world — naniely, the very severe depression that is now being experienced. While the depression has tended to limit the total quantity of transport business that has been available, the question still remains as to the share which the department is receiving of this business. In this connection the board has continued the policy of maintaining* very close contact with all sources of the transport business. Braiich Activity. The commercial branch has heen maintained at full strength and activity, while ihe employces at the various stations have boen encouraged in every way possible to take aetive measures to safeguard the interests of the department in the m&tter of securing business. The position has heen made much more difficult by the pressure on the department's competitors which arises out of the present trade depression and the degree of unemployment that is existing. It fs found that road operators are cutting rates to figures that are wholly uneconomic, and there is litfle doubt that in most cases this is being done

by owner-drivers under a fear of unemployment. While individuals may be able to carry on their business for a time hy such methods, it is not open to the department to do so. I11 every case, however, where it was found that an adjustment- of the rates for the carriage of goods was necessary to enable the business to be secured, and the eivcumstances were such that it was better for the department to take the traffie, the board has authorised the necessary rate adjustment. This has beeii the general procedure and is superseding the method of general alteratjions in the railwiay tariff — as v.ras the method usually adopted in times past with reference to the adjustment of the goods tariff — > and the board finds that the necessity for bargaining for traffie is, under present conditions, inevitably growing. The board does not regard this as desirahle, as tending to discrimination and instability in transport rates which, as a general principle, . cannot he.regarded as at all satisfactory from a general trade standpoint. The Passenger Side With regard to the passenger traffie is was found that, some months before the board eommeiiced to function, an increase in passenger fares had been made as a result of the recommendation of the Royal Commission (1930). There had heen a sharp decline in the passenger business, which the board felt would soon lead to a serious position if the decline could . not be arrested. The procedure of raising the fares having besn adopted, and, as appcared, having rather accentuaterl the decline in the business, the board, after full consideratioiij decided to make a reduction in fares. The effect of that reduction was distinctly encouraging. A further aspect of the passenger business that has had consideration has heen- the provision of services to cater for passenger business in the "mass" ,at cheap rates. Experience has shown that there is a very extensive demand for services of this kind. Practically all the trains which the department has provided in this connection have been well patronised with the consequent beneficial effect on the department's revenije.