With this article Mr. Bowden begins the new series of special articles (from the viewpoint of business men, manufacturers, and others), which will appear regularly in the Railways Magazine.

Business men is general will appreciate the innovation of the “Co-operation Page” in the Railway Magazine, as affording an opportunity of free expression of opinion on the service provided by the N. Z. R. At the outset I desire to acknowledge the compliment of the invitation to contribute the first article, and look forward with interest to reading other contributions from commercial men well qualified to write on various matter affecting the transport of the Dominion's produce and imports. This page in successive months will be the clearing house of commercial opinion. In it there will be no mere dogma-no expression of views which cannot be supported by reasoned argument, and need it be said that naught will be set down in malice? Doubtless some of the suggestions made in successive issues will be controverted by other writers. So much the better. In the multitude of counsellors there is wisdom, and the voices of critics may indicate the royal road.

To criticise the Department is not the purpose of this article. One appreciates the work of its officers, and recognises the improvements introduced by them of late years. But the onlooker sees most of the game, and sometimes his views are of interest!

Expansion of Original Functions.

First, then, it may be said that the New Zealand Railway Department has interests now beyond its original functions. It is interested, actively and indirectly, in road transport, conveying both passengers and goods; and in steamer traffic also. In fact it would better be described to-day as the “Department of Transportation.” Accordingly it is not out of place in this article to refer to or consider, all transport matters.

In recognising the widespread interests of the Department, may I be permitted just a word of warning. The tendency toward nationalisation is causing-has caused-serious unrest in commercial circles. There is a growing feeling that the excursions and incursions into the business field, made by an enterprising government, are too many and varied, and are (in many cases) economically unsound and commercially unjust.

Co-ordination of Rail and Road.

It must be apparent to all that the problem of co-ordination or competition of rail and road services is one of the most difficult problems of our day. I consider the cost of distribution in New Zealand to be probably the highest factor in our cost of living budget; certainly it is one of the most important. The length and configuration of the country are admittedly a contributory cause, but the fact remains and is worth inquiry.

Royal Commission of Transport.

I put forward, earnestly, the suggestion that a Royal Commission on Transport be appointed to deal fully with this matter. I am aware that a Ministry of Transport is foreshadowed, and that this is more or less a committee of inquiry by responsible heads in departments such as the Railways, Marine and Public Works. Should it not go farther in its scope and representation? Surely the Harbour Boards, Highways Board, Municipal Association are also vitally interested. So too are the shipping companies, the carriers, and, above all, the great, inarticulate, long suffering general public, and the commercial interests who serve them.

Road Competing with Railways.

I do not need to refer here, except in passing, to the petrol tax. In another place I joined in a protest; but the voice was raised not against the tax per se, but against the lack of policy behind it. To me it did not appear that its effects had been well considered, or that it was part of a co-ordinated plan. If designed to penalise the road users and to protect the railways, it will do neither. Generally speaking, the charge will be passed on (except in respect of page 5 pleasure cars) and the huge sum collected will be used to further improve highways and so intensify the competition against the railways.

Roading Ahead of National Need.

I believe the time has come to call a halt in the policy of road construction, at least till a general transport policy is evolved. I do not attack the roading policy or suggest that value has not been obtained for money spent-it may or may not have been-but this Dominion should not allow the pace in road construction to be set by comparison with other countries. England has probably about the same length of roads as New Zealand, but has forty times the population to pay for them. Sydney has about the same population as New Zealand, but less than onefortieth of the area to be served.

Let the roading policy be considered in relation to the rail-leave the main highways for a time and consider the backblocks, and the roads to and from the railways.

Some Unnecessary Harbours.

Millions of pounds have been spent in the past in harbours around our coasts. Many of them should never have been started.

The Local Bodies Loans Board (advocated years ago by Chambers of Commerce), is doing excellent work. The pity is that it did not exist 15 years ago. What is the result of the expenditure on roadsteads? It is high freights in respect of all New Zealand produce, and high insurance rates, too. The ships must be compensated for the lost time and the risk involved in loading or waiting at open roadsteads, and the good ports pay for the bad, for the flat rate applying to all ports is fixed with regard to the risks mentioned.

The second class ports take a big toll of New Zealand and a general transport policy is required. It might pay the Dominion to load or discharge at central ports, and utilise road or rail transport or coastal steamers in conjunction therewith. The quicker “turn round” of overseas vessels would of itself effect savings of considerable magnitude.

These matters may fall a little outside of the purely railway purview, but are relevant and proper to consideration of a general transport policy, in which the railways are so vitally interested.

Other Matters.

Other writers will probably deal with certain aspects of railway finance and activity, e.g., the sawmill and housing scheme, losing money on every 100ft. of timber sold and every house built, besides competing unfairly with the sawmillers who are amongst the railways' best customers; the limitation of liability for loss or damage; the unfairness of the exemption of railway dwellings from payment of local rates; and their 'bus competition in certain districts.

Has a serious attempt been made to retain the suburban traffic by means of small electric or petrol driven trains, running at frequent intervals?

I have not the time nor the knowledge to go fully into these questions; nor have I set out to expound the law and the prophets, but merely to direct attention to the biggest question of all-a comprehensive transport policy in all branches.

Just in passing, what about the amalgamation of the Railway, Tourist, and Publicity Departments? Their work necessarily must be closely allied-almost overlapping in some cases!

The Railway Capitalisation.

In conclusion, a few words as to Capitalisation. It sometimes happens in business that obsolescence of premises or plant, or changing methods, or a new process or vogue, or some other cause, forces on the shareholders the realisation that their company cannot be expected to continue earning profits on the amount invested. In such case the company reconstructs; the losses are faced and written off the capital, or in other words the capital is written down. Are the Railways in that position? Does the capital account contain thousands of entries of which the assets are no longer in existence? If so, it is not reasonable to look for “dividends” still to be earned on them. Write down the capital account to a proper figure, and set out to make a commercial profit on the reduced amount.

The Call To-day.

The call, to my mind, is for a co-ordinated and complete transport policy in the interests of the whole population of the Dominion, present and future. Years ago the canals of England were the last word in transport-(in many parts of the continent they are still)-but the railways superseded them. Perhaps in time something will supersede the railways.

Call together the all too numerous bodies who have to do with transport-the Railways Department, Highways Board, Road Boards, Harbour Boards, Marine Department, Public Works and Electrical Department and formulate a policy in conjunction with the Shipping and Transport Companies. But a Royal Commission is necessary to do the job properly.

Efficient transport is vital to a nation's trade! (Certain points referred to in Mr. Bowden's article will be dealt with in out next issue; others are covered by a statement made through the press by the Prime Minister on 1st December, but subsequent to the writing of Mr. Bowden's article.-Ed., N. Z. R. M.)