I.—6a.

B. W. MCVILLY.J

37

lections at the time that I used to get paid a commission of 1J per cent, from the Government liife Insurance Department for collecting life-insurance premiums.* I should have put a question to Mr. McPherson at the time, but I was not certain, and wished to be certain of my grounds before making any statement. I, however, communicated yesterday with the Commissioner of the Government Life Insurance Department, and asked him to state what commission, if any, »,is paid to country Postmasters, including those at combined railway-stations, for the collection of Government life-insurance premiums. Since I came into the room this morning I have received a note from my office stating that the Government Insurance Commissioner telephones that the rate paid by the Government Insurance Department to Postmasters is 2 per cent, lhat shows that that portion of the Stationmasters' work is not done as a labour of love. The payment may be small, but still it is made, and by another Department. Then, great stress was laid on the grave responsibilities of Stationmasters in crossing trains; but under the tablet system the crossing of trains is quite a simple matter. The worst thing that can happen is a delay of a few minutes. The Stationmaster in a case of that kind has only to give an explanation showing that he had reasonable grounds for the action he took, and that ends the matter. The person who is responsible and who takes the responsibility is the man who gives the " line clear " from the other end —not the man who sends the train on. The work connected with the crossing of trains at the present time is altogether different to what it used to be before the Department installed the tablet. Before the tablet was installed there was great responsibility, and the whole of the train-running was carried out and directed from the District Traffic Manager's office by telegraph. Now the Stationmasters and tablet-men have authority to send a train on under safety of the tablet. We will suppose, for the sake of argument, that the tablet porter at B is told by the man at C that the train is three-quarters of an hour late, and two trains pass at B. If there is time for B to get the train on to C, he just obtains " Line clear " and sends it on, and saves delay. Then we had the statement made by Mr. McPherson about the enormous increase of work that had taken place at stations. Well, the Department knows very well that an increase has taken place; with increased settlement that naturally follows: but the Department likewise knows that for the small business it was doing years ago it was paying practically the maximum cost for the minimum service and minimum revenue. You cannot expect, and no system or no business expects, that the ratio of cost is going to continue at the highest all the time irrespective of the business. A business man expects that the greater the business the lower the working expenditure will be in proportion, and so with the Railway Department. However, it has not been so with the Railways, because coincident with the increase in the business wages and salaries have gone up all along the line, and so have other costs increased. Now, just to show what some of those enormous increases in traffic have been, I was curious enough to look up the business at Woodlands. That is the station Mr. McPherson is at. My recollection of Woodlands dates back to 1882, and my recollection of the place at that time is that it was very busy, and that there was then a considerably larger traffic than there is at the present time. On looking it up I found that the traffic at Woodlands for the year ending 31st March, 1883, was £13,000 in round figures, with a staff of three men. The traffic at Woodlands to-day is about £5,500. Ihe staff, -Mr. McPherson has told us, is three; but there is this difference: that the Stationmaster to-day gets paid £220 per annum, and the Stationmaster in 1882 was getting £140. Then, the next statement Mr. McPherson made was that Railway officers were experts who had been very much sought after by outsiders, or were keenly sought after to fill important positions. He mentioned one instance, in reply to Mr. Ross, I think, of a gentleman who was filling an important position as auditor, and he said that a Postal officer could not do that kind of work. The list of Postal officers who have succeeded in outside work is somewhat large, and I will read it later on. Then, he stated the Postal officers were unable to do the work of Railway officers, while the Railway officers were quite able to do all or any of the work of a Postal officer. Now, I have done the work of both Departments, and. while I am quite prepared to admit that a Stationmaster at a country station can do without very much difficulty the work of a small combined office, it is a totally different matter altogether to undertaking the work of a large office. The work that the Railway Department's officers do for the Postal Department is of a most unimportant character —that is, it is the simplest class of work. Now, with regard to the statement that Postal officers could not undertake Railway work, I just drew on my memory, and I will give you a few cases of men I know. Mr. T. E. Donne was transferred from the Postal Department and took charge of Caversham Station with no training, and he ultimately attained to the position of District Traffic Manager. Mi , . Russell was transferred from the Dunedin Postal Department and took charge of Abbotsford, subsequently at Waikouaiti, and was an Audit Inspector when he left the service; Mr. Wallnutt the same; and Mr. Wellsted Stationmaster in charge of a district. There was also Mr. McKellar, of Outram, Mr. Baxter, Stores-manager, and so on. I have a list here of twenty-five names which I will put in of those men who came to the Railway Department from the Postal Department, and without having previous experience they unquestionably made excellent Railway officers. Then a statement was made that a large number of Railway officers resigned because the conditions of the Railway service were irksome. General statements of that kind are easily made and just as easily refuted. Now, I have had taken out a list of officers in the lowest grade who have left the service since April, 1910. I will not give the names. The first was dismissed for drinking, the second was superannuated, the third was dismissed for being intoxicated while on duty, and the fourth resigned to avoid dismissal owing to drinking habits. In that case the Department accepted his resignation in order to give him a chance outside. The fifth was superannuated, the sixth resigned as he refused to accept transfer which was necessitated on account of misconduct, the seventh resigned through drinking habits, another for a bona fide reason, another resigned owing to the fact that application for extended leave was declined i another dismissed for shortage of cash, another for unsatisfactory work, another for shortage of cash, another suspended for being under the influence of liquor, four cases of bona fide resignations,

• See Exhibit No. 5.