I,—6b

8

must not only have a very bad social effect, but it must have a disastrous effect upon the railway revenue. I account for the great increase in the depopulation of the country during the last half of the decade by the fact that during this period there have been very many more through rates than there were in the first half. Now, the through rates must operate in favour of the big centres, whatever you do with them, under the present system. It was, I think, in 1895 that through rates were first given on fruit, parcels, &c. The department said it was adopting my system. I have no doubt in my own mind that a very large proportion of the prosperity of our railways during the last five years is due to the fact that we are absorbing the country into the great towns. The same thing took place, if you will remember, over in Victoria, and I fully pointed out that it would be so, and it was so. And they have never recovered to this day the position that they had before. Now, what I have tried to do is to devise a system whereby these evils will not come in—to devise a system by which the railway rates can be fixed scientifically and made the same in every district and be fixed until a general alteration is made all over the colony. And I say, if this could be done, the advantages are very obvious. It would place every district on an equal footing, and so obviate much of the present discontent. It would enable producers to calculate more closely the cost of production, which is a very important item. I find both producers and traders are constantly complaining that they cannot calculate their railway charges. I get numerous letters from all parts of the country about it, so that if we could do what I propose to do we would get rid of a great deal of difficulty. Now, that brings us on to this stage system. If you take the distance from Auckland to Frankton Junction you have eighty-five miles, and under the present system you have eighty-five toll-bars. In all the old railway charters in the United Kingdom this is the phrase used : " the company is hereby authorized to charge a toll of so-much per mile for the transport of first-class passengers, a toll of so-much per mile for second-class passengers, and a toll of so-much per mile for coal and other articles of freight." But the word "toll" is used throughout, showing the connection with the toll-bar in the minds of the framers of the Bills. When the charters were given to these companies it was evident that the idea of the tollbars was in. the mind of the British legislators. Although you do not see them, the toll-bars are there. For every mile they pass over, the goods have to pay, or the passenger-has to pay ; and consequently, if you are dealing with goods, every mile you pass over takes away from the profit the man has in his goods before he can get them to the market. I sought to do away with that, but I know that you cannot do away with it altogether ; but I say you can abolish most of these invisible toll-bars. On the trip from Auckland to Frankton Junction I abolish eighty out of the eighty-five of these toll-bars, and the man at the eighty-five-mile distance would be able to compete with the man at the seven miles, because he would get his land very much cheaper. Of course, he has always got the disadvantage of time against him, which we cannot remove; but-we can do away with the multiplication of charges, which weigh him down. I propose to average the charges, and so equalise them more, and place the distant man more on an equality with the man close to. For the purposes of finance I had to place these stages as shown on the diagram —that is, four stages covering from twenty-eight to thirty miles. If I had been quite free, however, I would have put the first stage at seven miles, the next stage at ten, the next stage at fifteen, and the next at twenty-five, and then the fifty-mile stages if the location of population allows it. I think it would be a better adjustment as regards social effects, but I do not think it would be so good for financial effect. However, being tied down to get the revenue, I place them so. Well, I want it to be understood that what I propose to do is only to give these distant points on the longdistance stages temporary protection. I contend that by the system that now obtains we give permanent protection to the big cities. I do not care how you adjust these through rates, the big cities must permanently get the advantage of them. I only propose to give temporary assistance to these distant points. I assume that any man wishing to go into the country, whether he is a professional man or a trader, a mechanic or a day-labourer, would select a point on the lines like Frankton Junction, and settle there, because he could travel from there in five different directions, all over fifty miles in each direction —assuming the lines are open that far— for a fare of 4d. or 6d. first class each journey. This, of course, would give him command of a wide range of country over which he could carry on his business or profession for the same charge. You will see that Frankton Junction occupies a very important position on account of its command of the country in so many different directions. I expect from this the population would rapidly increase round Frankton and all sections of our railway similarly situated, of which there are a good many in both Islands. If this took place, we should create a town there, the trade between which and Auckland would largely increase the traffic of the railways. This I hold to be a most important point. A man could come from Frankton fifty miles along the direct North Island Trunk Line, he could go to Cambridge, or further, if the line were extended, for the same fare. He could go to Pukekohe and to Te Aroha for the same fare, he could go to Tirau for the same fare ; and consequently I say that a trader, a professional man, or even a day-labourer or mechanic, is sure to locate himself there, and consequently a town would soon largely increase instead of decrease, as has actually occurred with this town of Hamilton. You would accumulate a population at those places I have mentioned, and if you accumulate a population there you not only make trade for the railway, but you develop local markets for the farmers, which is a very important point, as the local market always pays the farmer best. From all round people would be coming in with produce, and, as I have said, you would not only get the accumulation of people but you would get a large extension of railway traffic. Every stage-station along the lines would share in these advantages to a greater or less degree, and, as I have said, there being several towns on each of our railway sections situated like Hamilton, a large development of railway traffic must ensue, and nowhere would this development be so great as on the Hurunui-Bluff Section.