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The Pamphlet Collection of Sir Robert Stout: Volume 75

A Great Danger

A Great Danger

that overhangs this community. In 1887 in America, and in 1888 in England, "Differential Rating" was made illegal under very severe penalties. In America, each rate so given renders the giver liable to a penalty of £1,000 and two years in jail. No language is strong enough to describe the utter vileness and immorality of this system.

Prior to 1887 this practice was illegal in N.Z., but by the Act appointing the irresponsible Commissioners it was made legal, and express power was given them to work it at their pleasure. In section 36, subsection (m) of that Act these words occur:—

"For imposing differential rates and charges for the carriage of passengers and goods upon any railway, and the circumstances and conditions under which the Commissioners will make special rates for the carriage of goods in quantities."

The object of the Commissioners in seeking to obtain this enormous power is best explained in Mr. Maxwell's own words:—

In his report for 1884 he says: "The system of rating differentially in this colony is not carried far enough, and the difficulty that stands in the way is the impatience of the public in submitting to different treatment in different cases, and the reluctance to place in the hands of the railway officers the power which would be necessary for carrying out the principle extensively. While retaining publicity by gazetting each rate, were such a principle more widely introduced, the public would not be able to do what it now, to some extent, essays to do—read and interpret the rates generally; but the practice followed elsewhere page 13 would be necessary; the customer would appeal to the station each time he required a rate quoted; and, whether the railways were managed by a Minister or a Board, more power and freedom in respect to rating would have to be placed in the officers' hands." The italics are mine.

By the Act repealing the appointment of Commissioners, the Government took over their powers, but in order to make assurance doubly sure, in one of the amending Acts it is expressly provided that all the powers exercised by the late Commissioners may be exercised by the Government.

May I ask, Sir, if the intention was to deal honestly by the public, why the late Commissioners were so anxious to have the power to multiply and confuse the rates until no one could "read and interpret" them?

Speaking with a full knowledge of the subject, I say that the intention of this system is to enable the controllers of railways to plunder the public to the utmost possible extent, and to use the railways for the personal aggrandisement of themselves and their friends. As the, Americans put it: "all those who are in on the ground floor with them."

Let me again, Sir, direct your attention to the fact that this abominable system is now legal and in full force on our railways.

To show some of its dangers, let me instance a possible case that will be at once understood. We have lately heard a great deal about the "Ward Association." Suppose a "special rate for the carriage of goods in quantities" had been given that firm, and say that a concession of so much per bushel on grain had been made, what would it have meant to that Association, and what would it have meant to opposing firms? Yet such a transaction would have been strictly legal.

Here is an actual instance. There is a saw-miller at Mamaku, and a special rate has been made in his favour of 2/6 per 100ft. for the 108 miles to Paeroa, or 85 to Te Aroha.

There is another saw-miller at Wirangi, and his rate for the 74 miles to Paeroa is 2/11. Why is this? In the districts the question is freely asked if the special rate is a reward given to a political supporter. It is a disgrace to us as a community that such practices should be possible.

It must be borne in mind that this abuse of our railways was introduced by the late so-called non-political Railway Commissioners, and has been continued by the present Government. It will be seen how enormous and how dangerous is the power it confers on the controllers of our railways.

page 14

No change of Government, no irresponsible Commissioners, no change of men of any kind, can free us of this danger. It can only be done by reducing railway rating to a scientific system, which no man, or set of men, can tamper with. This the Stage System does, and that is why railway controllers hate it, and are determined to prevent its adoption if they possibly can.

Mr. J. P. Maxwell's evidence on this question of differential rating is very instructive. (See the Parliamentary Paper above-mentioned, page 50. Mr. Maxwell cross-examined by Mr. Vaile).

If a trial of the new system is entrusted to the railway men, it is its scientific character which they will seek to destroy. What they strive for is a system where all the rating depends on their will, and consequently all their effort will be to assimilate it as much as possible to a mileage system, and this is how they will proceed:

They will say, Oh, yes, Vaile's system is all right; but then, like all reformers, he is too extreme. It is not possible to do all he asks, but with slight improvements it will do well enough; and, if they are allowed, they will carry out their improvements in this fashion:

They will place more stage stations on the long distance stages, without regard to the location of population, and will thus largely destroy its value as a distributive and land settlement system. The effect will be to raise all the fares and rates to the distant and least accessible lands, and, by thus compelling the most thinly populated districts to pay more than their fair share of the revenue, retard their settlement and progress.

Even in this mutilated form it would give greatly better financial results than the present system, and the railway men would claim that these results were due to their "improvements," whereas they would only have secured a part of the revenue that might have been obtained had the system not been tampered with, and its great distributive capabilities most seriously injured.

Again commending this important matter to your careful attention,

I have the honour to remain,

Faithfully yours,

Samuel Vaile.

The Avenue, Auckland.

Wilsons and Horton, Printers, Auckland.