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The New Zealand Railways Magazine, Volume 4, Issue 11 (June 1, 1930)

Reasons for Hesitation

Reasons for Hesitation.

Why, then, did the Department hesitate? It hesitated for two reasons. The first was that, if it increased those rates to an extent that would balance the ledger, it would be collecting from the users of the railways more than a private company would collect—from this point of view: that inasmuch as the community was receiving a benefit through the developmental rates from the railway expenditure, the community as a whole and not the users of the railways, should pay for that. The community enjoyed the benefit and should pay something for that benefit, and the Department should not require to obtain more in the way of revenue from the customers than a private railway would do.

The second point was that the Department might find that an increase on those low-rate goods would not be in the best interests of the community.