Quality of Equipment.

The equipment, passenger and goods, that was provided by the Department, Mr. Mackley observed, was equal in quality to anything produced by a railway concern anywhere in the world. After stating that the railways were still vitally essential as an agency of transportation, Mr. Mackley said:

“Rightly or wrongly, we have a huge capital equipment invested in our railways, and it is idle to suggest that it should not be used to its full capacity. The extent to which we do so is the real test of its social effectiveness.”

Notwithstanding extensive competition, Mr. Mackley added, the railways were steadily gaining ground, but the ratio of gross ton miles to net ton miles could be improved considerably. That meant that better loading per wagon could be obtained. “We believe,” he declared, “that we can give you a service that, taking due consideration of all factors, is as economic as any other form of transport can offer you. If you, and all the primary producers, gave us the whole of your business, our contribution to the Consolidated Fund would be such that the Government would be enabled to reduce some of the taxation you are now subjected to. It would also enable the railways to lower its rates.” (Applause.)

Mr. H. Valentine, Chief Accountant, gave a very comprehensive analysis of the incidence of railway rating which fully bore out the General Manager's statements on the financial aspects of the competitive problem.

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