Local Uniform Rates.

The introduction of the principle of local uniform-rates as a method of preventing the exploitation of our low rates for certain commodities by firms who use road vehicles for competitive transport against us in other classes of goods, has proved successful in two ways. It has drawn public attention to a misuse of the railway rating system which was tending to bring about conditions likely to cause a rise in railway freight rates all round, and it has induced many important business firms to decide to send all their goods by rail in order to avoid the disadvantages which the application. of this principle to their traffic would entail. I have been very pleased to find the general good spirit and understanding attitude in which the new conditions have been accepted by the bulk of the business people affected. This has increased my confidence that the action taken was the right one and strengthens the case for definite action in the one or two instances where our representations have not been accepted.

Empire Farmers' Delegation.

The important delegation of Empire Fanners at present touring the Dominion, under the auspices of the N.Z. Farmers' Union, will, I feel sure, gain much valuable information regarding producing, trade and travel conditions in this country. The transport and accommodation arrangements for the party throughout the Dominion are being handled by our staff, and I have been very gratified to find how appreciative the members of the party are of the value of the tour and of the openings for improved commerce within the Empire which such missions reveal. It appears to be certain that a considerable impetus will be given to tourist traffic from other parts of the Empire to New Zealand as a result of this visit.

Staff Ideas.

I would like again to impress on members of the staff my desire for an open expression of their ideas and opinions upon any of the problems with which we are grappling. On more than one occasion I have found some diffidence on the part of members of the staff to venture an opinion or to reveal a piece of knowledge due, possibly, to some feeling that if this did not happen to coincide with the beliefs of the management it might be harmful to the man advancing it. Now, I want to have that idea banished completely. The member who does not think for himself and who endeavours to mould reports or verbal statements in the hope that they may fall in with what he thinks might be the General Manager's ideas—or any other individual's ideas for that matter—can never be 100 per cent, valuable to the Department. While decision must, of course, rest with the Department, the approach to decision must be based on the best information obtainable from all sources, and if some useful information or opinion, based on sound knowledge, is withheld by anyone in a position to supply it, the problem of making right decision upon any point is made unnecessarily difficult.

General Manager.

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