The New Zealand Railways Magazine, Volume 3, Issue 7 (November 1, 1928)
In July, 1926, the State Railway of Switzerland formed a company with a capital of 1,000,000 page 30 francs for the purpose of dealing with road and rail co-operation. In addition to the State Railway, 38 other railways are members of the Company and are represented on the executive and the management committee. On this executive are also representatives of the chief commercial associations, forwarding agents and cartage agents. Since the formation of this Company the cartage charges at terminals have been reduced by 20 per cent., the reduction being due to the superiority of the organised system now in operation as against the wasteful methods previously in force.
The agreement between the railways and the Company referred to provides that the latter shall not enter into competition for goods or passenger traffic. In July, 1927, the State Railway (and a great number of narrow gauge railways) came to an important agreement on the subject of freight rates. Under this agreement (in specified circumstances) it was agreed to convey all employees and ordinary goods traffic at a rate similar to that ruling for carriage by road. The conditions are as follows:—
(1) That the trader states that without the grant of these rates it would be more economical for him to despatch by road vehicle and that he is in a position to do this.
(2) That the rate must be such as will cover all primary costs and leave normal profit for the railway.
(3) That the trader must give to the railways every year a certain minimum quantity of traffic.
(4) That the trader either entirely or within certain specified limits, abandons all road transport in favour of the railways.
The Company guarantees the conditions of transport and contracts with the traders, but by arrangement is subject to the rule “There shall be no undue Preference.”