Mr. Monk (Waitemata).

I quite agree with Mr. Monk that Sir Joseph Ward has made an earnest, honest effort to administer the railways in the interests of the country, but I believe he has been very badly advised by his chief officials. Mr. Monk speaks of a 30 per cent, reduction in page 5 charges during the next 20 years. I say that passenger fares could at once be reduced to an average of one-fifth of the present charge, and goods rates to an average of one-half, with enormous advantage to the country and to the railway revenue. I am aware that to most people this statement will appear outrageous, and it most certainly cannot be done in the way the Government are trying to do it; but I would remark that the Hungarians followed my lead, and reduced their fares to an average of one-fifth, and that so long as they kept them at that figure they paid well, but as soon as they raised them they began to lose profit. (See Parliamentary Paper, 1901, D—7, p. 10.)