The Railway Commissioners to the District Railway Manager, Auckland.

Your memo., No. 89/1673, of 22nd October.

"Differential Rating."

The Commissioners are indebted to Messrs. Devore and Cooper for endeavouring to learn and explain what the Railway Reform League means by "differential rating."

The many meanings said by Messrs. Devore and Cooper to be attached by the League to the term "differential rating" might be supplemented by a great many more according to individual views.

The objectionable practices such as are known as unjust discrimination, undue or unreasonable personal preferences, drawbacks, rebates, discounts, allowances, secret rating, etc., are not in operation on the New Zealand Government railways, and never have been.

The practice in rating in operation on the New Zealand railways does not go beyond that sanctioned by the Inter-State Commerce Act referred to.

Messrs. Devore and Cooper state they cannot "say whether the introduction of the stage system is or is not open to the same objections and liable to the same abuses as they claim arise, or may arise, in the present system."

The Commissioners have looked up information supplied to the Parliamentary Committee of 1886, to whose report the Secretary of the League has referred them.

It appears to be the defect of this "stage system" that such extreme divergencies in fares should be created. The passenger from New Lynn to Auckland is to be charged 1s for 10 miles, while one from Mercer to Frankton is only to be charged 6d for 42 miles.

This makes a local preference to an extent quite unknown in ordinary practice.

As Messrs. Devore and Cooper do not seem to have learned of this aspect of the "stage system" to which the Commissioners have been referred by the Secretary of the League, you may refer this letter to them for their information.

The "stage system" is, of course, as liable to abuse as the ordinary practice.

For the Commissioners,