OUT FOR BUSINESS

Sun (Auckland), Volume III, Issue 891, 7 February 1930, Page 11

OUT FOR BUSINESS

NEW RAILWAYS POLICY JHREAT TO CERTAIN CLIENTS

In accordance with its policy of going after business, the Kailway Department is making a new move to combat the encroachment of motor traffic on its revenue. "Help us or we may not be able to help you.” is the basis of the department's attitude toward those firms whose practice is to divide their carriage business between motor and rail. In a word, the new scheme plans to deprive business firms of the cut rate now allowed on “D” class commodities such as cement, fertilisers, wheat, flour, chaff and other bulk stuff in erent of their continuing to consign highest class goods by motor traffic. Discussing the new policy, a prominent railway official said today that there would be no precipitate action, but the scheme would be given trial and if found successful would be extended. “We simply find this,” he said. "The concession rates on ‘D’ class goods cannot be continued in ‘the case of those firms who send other merchandise by road. We cannot afford to make concessions unless we pet a fair proportion of high rated stuff. It is only by averaging freight charges that the railways can oppose motor carriage. Road competition being most severe between Auckland and the Waikato, ihe projected policy would apply between Auckland or Newmarket and any point south of Otahuhu to Te Awamutu. The North Auckland -oute would not be affected, at present at all events. In the past few months the quantity of goods carried to the Waikato by rail had shown a considerable increase, but a number of the department's clients were continuing to give the cream of their business to the motor lorries, said the official. The motors were thus reaping an unfair harvest at the expense of the railways. In future only those firms who. as far as practicable, had their goods carried wholly by rail would enjoy the minimum rates on "D” class goods.

Under the new system flour now carried from Auckland to Hamilton for 7s 8d a ton will be charged 34s Xd a ton. The tariff on cement, for instance, would be increased from 19s Id to 34s 8d a ton.