The “Wairarapa Age” states that in a forceful and interesting address at a meeting convened by the Masterton Chamber of Commerce, Mr. G. H. Mackley, General Manager of Railways, observed that they must concede from the point of view of efficiency and in the national interest, the railway case was unanswerable.

Mr. Mackley said that in his dealings with prominent business men throughout the country who handled important transactions, he had been impressed by their appreciation of the problems confronting the executive officers of the Railways Board. It was certainly an encouragement to the administration to know that its efforts to render the best possible service were interesting the commercial community. Contacts with business leaders were both necessary and desirable and such meetings invariably resulted in good. The Department was vigorously attacking the difficult task of coping with the transportation needs of the Dominion. The railways had played an important part in the progressive development of transportation facilities and, he said, the rapid growth of New Zealand's industries was directly the result of railway expansion.

Railways Vital.

Continuing, Mr. Mackley said that the railways were not an obsolete form of transport as was so frequently suggested. Road and air transport had not supplanted the railways as the latter had superseded the canal and coach. The new forms of transport were restricted in their scope, though it would be admitted that they possessed some differential advantages. The railway, however, must remain for many years to come the backbone of the transportation service. Throughout the world railways were playing as important a part as they had ever done in the destiny of countries, and he felt they would continue to do so. There was a revolutionary development in railway equipment all over the world, and in New Zealand the introduction of the rail car was an effective answer to all criticism. Mr. Mackley went on to quote statistics in support of his claim that the railways were a vital part of the Dominion's economic and social life. If the railways were a back number would it be likely, he asked, that the Home Government would guarantee £25,000,000 in loans to finance the principal railways’ programmes? In New Zealand they had anticipated similar developments to those in England, and their programme along the same general lines was well forward. Renewals, replacements and new works provided for in the 1935–36 programme would cost £1,460,913, while a further expenditure of £42,353 was contained in a supplementary programme to be carried out with the assistance of the Unemployment Board. Consideration had already been given to the 1936–37 programme in which provision would be made for an expenditure of £1,665,-659. He quoted those figures to indicate the stupendous expenditure necessary to maintain the railways in a reasonable state of efficiency.

Quality of Equipment.

The equipment, passenger and goods, that was provided by the Department, Mr. Mackley observed, was equal in quality to anything produced by a railway concern anywhere in the world. After stating that the railways were still vitally essential as an agency of transportation, Mr. Mackley said:

“Rightly or wrongly, we have a huge capital equipment invested in our railways, and it is idle to suggest that it should not be used to its full capacity. The extent to which we do so is the real test of its social effectiveness.”

Notwithstanding extensive competition, Mr. Mackley added, the railways were steadily gaining ground, but the ratio of gross ton miles to net ton miles could be improved considerably. That meant that better loading per wagon could be obtained. “We believe,” he declared, “that we can give you a service that, taking due consideration of all factors, is as economic as any other form of transport can offer you. If you, and all the primary producers, gave us the whole of your business, our contribution to the Consolidated Fund would be such that the Government would be enabled to reduce some of the taxation you are now subjected to. It would also enable the railways to lower its rates.” (Applause.)

Mr. H. Valentine, Chief Accountant, gave a very comprehensive analysis of the incidence of railway rating which fully bore out the General Manager's statements on the financial aspects of the competitive problem.

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