H.-40

20

Between 1927-28 and 1928-29 the tonnage of benzine, &c., handled increased from 61,753 tons to 123,937 tons, or approximately doubled, while the revenue from this business increased from £118,694 to £200,239, or by 68 per cent. Here again are found the two main economic advantages of rail transport —viz., distribution in bulk of relatively long hauls. And here again motor transport is found in the distribution beyond the railways, where, of course, both the bulk and the length of haul are on much smaller scales. Having outlined the principal facts concerning the relationship between the principal industries and the transport services, and indicated more or less roughly the part played by motor transport and rail services in each, it is proposed to conclude this industrial review by referring to the distribution of manufactured articles. This field constitutes the main flow of commodities outwards from the main centres to the rural areas, and represents in the main relatively high-class freights—i.e., commodities the intrinsic value of which is relatively high in proportion to bulk. The average haul for this business is relatively short, and the average revenue, due to the shortness of the haul and the nature of the goods, is relatively high. The following table sets forth the principal statistics relating to this miscellaneous group of commodities for the years ended 31st March, 1927, 1928, and 1929 : —

Since 1926-27 the volume of miscellaneous commodities handled has shown a decline from -1,684,899 tons to 1,450,430 tons, or by 14 per cent., while the revenue has decreased from £1,269,806 to £1,241,859, or by 3 per cent. At the same time, it is rather significant that the average haul has gained from thirty-six miles to forty-six miles, indicating either that the haul of these commodities has increased, or that competition from motor transport has accounted for some of the shorter-haul freights, thus increasing the average haul for the remainder. In view of the decrease in tonnage, this would appear to be the more probable. It is significant in view of the present financial position of the railways that they depend on this class of freights, which for reasons that will be outlined hereafter is most vulnerable to competition from road transport, for just over 25 per cent, of their total revenue. Broadly speaking, the results of the preceding review may be briefly stated as follows — (a) By virtue of our economic structure the prosperity of New Zealand is closely allied to the existence of up-to-date and efficient transport facilities. (b) In the coal and timber industries rail transport, by reason of its suitability for handling large quantities over long hauls, shows to advantage, and plays an essential part in the welfare of these industries. Similar facilities could not under existing conditions be furnished by road transport. (c) In the primary industries, particularly in the carriage of live-stock and manures, rail transport does the bulk of the long haulage. Motor transport, however, connects many outlying districts with the railways or the ports, as the case may be, and m a number of instances has offered effective competition to the rail, in the haulage of commodities such as butter, cheese, meat, &c. (d) Generally speaking, the road and rail facilities are utilized in the timber, coal, and manure industries as complementary units, the rail being utilized for the long haul and the road for the short haul. (e) There are, however, more or less definite areas where the road and rail are in competition. These areas exist mainly around the overseas ports, their traffic comprising, inter alia, the haulage of high-class manufactured commodities, outwards from the main centres ; this allows what is known as back-loading at competitive rates with primary or other products ■available. (/) Although it would appear that there are more or less definite spheres for the road and rail, and that for economic reasons these spheres have been roughly observed up to the present, it is clear, with the improvements to vehicles and roads, that the debatable margin of traffic being competed for by both services is rapidly increasing as the operating field of motor transport is extended. (g) The time has arrived when some regulatory authority is necessary to define, from time to time, in a general way, the field of activity for road and rail services. This would enable the question of existing and potential wasteful competition to be dealt with, and would ensure that the community would receive the best transport services available at the least cost. (/«) There is ample room for both road and rail facilities working in complementary manner, but it is very doubtful if this country could afford to allow motor transport to duplicate, to any appreciable extent, the rail services.

j I "o Revenue. . Year ended Tonnage J » ~ Average & . SLUtah, »,di. || »-—• Haul. || p „ T „ n . 2 Total. s A Per Ton. S . SO mile. I j £•* \ . | Tons. Number. Miles. £ £ s. d. d. 1927 .. 1,684,899 23-08 61,158,246 36 1,269,806 27-38 0 15 1 4-98 1928 .. 1,520,195 20-66 62,035,702 41 1,199,940 25-43 0 15 10 4-64 1929 .. 1,450,430 19-05 66,414,678 46 1,241,859 25-35 0 17 1 4-48