HOW THE RAILWAYS ARE FIGHTING THE LORRIES.

Shannon News, 9 April 1925, Page 3

HOW THE RAILWAYS ARE FIGHTING THE LORRIES.

j BUTTER FREIGHTS FROM LEVIN.

EXPLANATION BY COMMERCIAL MANAGER OF RAILWAYS. ("Leyin Chronicle.") Occasion was taken by Mr S. A. Broadbelt, chairman ol tne Levin Coop. Dairy Co., during Tuesday afternoon's round-table conference with, the commercial representatives of. tne Railway Department, to draw the attention of Mr D. RQdie (commercial manager oi 'the New Zealand Railways) to the discrimination shown again§t Levin in the matter of freights on dairy produce. Two years ago, Mr Broadbelt said, the Levin Dairy Factory was sending butter from Levin to Wellington hy motor lorry. •The Railway Department bad sent up representatives to interview his Board asking them to patronise the railways and promising to give a materia] reduction in freights in the I near future. This was two years ago j and nothing had yet been done. Twelve months ago the position be- | came so serious that a great number of lactories throughout tne Manawatu •began sending their butter by lorries. The Department's commercial agent had again interviewed the Levin Company's Directors, promising agahi to make a reduction of 40. per cent, on freights. The Levin company Had, therefore agreed to send their butted toy rail. During the war butter had been moved from one class of freight to: another plus 40 per cent, in rales. Nothing had been done on the second occasion, however, despite the definite promise, although the Rata Dairy Company, near Marton, had got a concession, and wag getting its butter to Wellington for only 5s per ton more than Levin, though so much further away. All- factories in the Manawatu were getting butter to Wellington for the same price as was Levin, no matter what their distance from the port. This, he held, was unfair discrimination against Levin.

The people of the: district wished to patronise the railways, Mr Broadbelt concluded, but he wished to make it definite that they recognised that they could always go. back to the lorries.

SPECIAL RATES TO MEET LORRY COMPETITION. jfcr Rodie stated that many years ago the butter industry wa.s. in a struggling position and the Railway Department with the intention of encouraging what twas (recognised as being of importance to the country, had placed dairy produce in a very low class of charges. With this encouragement, and the undoubted industry and hard work of the farmer, dairying had flourished until the carnage of dairy produce became one of the biggest lines handled by the railways. S'tUl the freights did not go up. Freights on other goods in the meantime went up 10 per cent., 20 per cent., and gradually up to 40 per cent, above the original charge, but butter was earned at the old rate. The industry at last reached such proportions, and was so prosperous, that the Government felt that it could well bear its share of the increased cost of running the railways. The only thing that could be urged against this decision was that the 40 per cent, had been put on dairy produce all at once Instead of being spread over a series of smaller rises as had been done with other goods. Some time ago it had been felt that the lorry traffic was entering into serious competition with the railways in the camage of dairy produce, and they had gone into the matter very carefully. > It was recognised that the average man did not consider a question from the. point of economics, but dealt where he could get the cheapest market. The only thing to do was to reduce freights in order to get tins business back. The competition was there, and like any business concern the Department had reduced ireaghts where the competition was. keenes • The same thing had occurred with Parker: Where was this? Mr Broadbelt: At special stations: don't you see the point? Mr Rodiei Does that meet yuui point, Mr Broadbelt? ■Mr' Broadbelt: It certainly does not We feel that any. reduction should be on a general basis. \ voice: The inference is clear, Mi Broadbelt. Put up the competition. (L Mr g ßroadbelt; It may be the way ' is done in business, but where u. thing is a public utility as arc tin railways, it does not seem right. Mr D \V. Mathesom. No the businessman does things like that Mr Rodie (to Mr Broadbelt): W approached you some tune ago as w why we did not get your businessMr Broadbelt: But \xm had our business I thought 1 made that clear. After a lot of negotiation we got a reduction of 5s per ton, but in comparisons with other places we arc not Ling treated fairly. Why should i oiAurn get produce earned through on the same freight basis as Levin which is 30 miles closer to WeUjn&ton, whilst Rata Just OUtsideMaiton, double the distance from Wellington, is only 5s dearer. Mr Rodie: Do you think 1 hut the freights should be dearer U any change is made, it will not be downward but up. Mr Broadbelt: If we are put on a fair basis, we would n °V h "™ i{J|; v complaint. It is the unfair disci •- ination that we object to Why should T.ongburn be treated better than we Mr Rodie: For reasons which were considered good to the Department. Mr Broadbelt: What will you do n we force you to consider our position? . . Mr Rodie; We will give it consideration. „ ~ "Now vou! know the answer, Mr Broadbelt," remarked a member of the conference. MEETING LORRY COMPETITION. In answer to a question from Mr Broadbelt as to what the Government was doing to meet the competition from the lorries, Mr Rodie stated that the Government in other places where competition had been keen was meet-

ing the situation by entering Into arrangement with the lorry owners. Where they could get good men wb.o would agree to reasonable charges, the stationmastcr had been instructed to get into touch with people receiving or sending goods at a station and •informed that the lorry owner would •handle their gt ods at certain rates. In cases where were being codsigned the charge for carriage by lorry to a station was added to the railway freight, the Department taking it on itself to pay the lorry owner. Mr Rodie offe ed to meet Mr Broadbelt next day to discuss the question of freights from Levin, an offer that was accepted.