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The New Zealand Railways Magazine, Volume 7, Issue 2 (June 1, 1932)

Cut-throat Competition Abolished — in Germany

Cut-throat Competition Abolished
in Germany.

The German railways have for long suffered greatly from unfair road competition. Now, as a result of Government legislation, cut-throat competition has been abolished, and unified conveyance rates have been fixed for both rail and road movement. The new legislation provides, so far as passenger movement is concerned, that undertakings engaged in the operation of bus services must secure a license from the public authorities before embarking upon any new service, and such licence will only be granted in cases where the lack of existing transport facilities by rail or road justifies the introduction of the additional service.

On the freight side, the new laws are even more far-reaching. Rail and road conveyance rates have been more or less brought to an equal level. All road carriers of merchandise are required to be properly licensed, and no new road services are authorised unless these can be justified by lack of existing means of transport.— (From Our London Correspondent.)

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