F.—ECONOMIC SCIENCE AND STATISTICS 133 
long-distance milk traffic in bulk, generally, though not always, goes by 
rail; short-distance collections from farms or deliveries to neighbouring 
towns go by road. 
In the case of passenger traffic, the road has gained most on the short 
haul. Motor-buses can be operated so as to give a more frequent service ; 
they can go right into the centre of the towns, and they may pass by the 
door of the traveller. ‘They do not require a very heavy traffic in order 
to prove remunerative. But on the long journey, the motor-bus is slow— 
even the long-distance express services in operation just prior to 1930 
were generally competing with the railways in price only. Costs were 
low because of the user obtained from the vehicles and the cheap ‘ summer’ 
tickets had not then been introduced. Road transport cannot deal so 
successfully with intensive passenger traffic as can the rail. 
In the case of air transport competition depends almost entirely on 
speed. Air transport in this country shows to the greatest advantage 
where rail transport is slow because of roundabout routes or where transfer 
between rail and sea is involved. 
It must, I think, be admitted that until the last few years the railways 
either did not realise the extent to which road transport was likely to 
develop or, at least, were slow to take steps to meet the competition which 
was arising. Prior to the advent of road transport the railways relied 
too much on their established position. ‘They were inclined to wait for 
traffic to come to them, since in most cases no other mode of transport of 
equal efficiency was available. It is true they employed canvassers, but 
canvassing for traffic was not undertaken to the same extent or with the 
same Zeal as it is to-day. The needs of their customers were not made a 
special subject of study. There was a tendency to wait for complaint 
to arise before altering an existing mode of operation or the kind of service 
offered, except in those cases where an operating economy to the benefit 
of the company was likely to be effected. Examples are not far to seek. 
On the passenger side they failed to see the latent demand for a more 
frequent service of trains at more regular intervals, especially on branch 
lines. On the goods side they took insufficient notice of the changes in 
the needs of traders. Owing to the more rapid changes of fashion, to the 
necessity of holding a greater variety of goods and at the same time 
keeping working capital low, traders to-day keep smaller stocks of each 
commodity. Frequently they need to replenish stocks at short notice, 
and consequently demand a more expeditious delivery of small consign- 
ments. In consequence of these changes, merchandise traffic by goods 
train has definitely tended to go in smaller lots, and in many depots the 
increase in the number of consignments per ton of goods handled has been 
remarkable. 
These demands of the passenger and the trader are admittedly ex- 
pensive to meet. The costs of providing such services with the existing 
equipment or mode of operation are higher than for the kind of service 
hitherto rendered by the railways. A monopoly holder under such 
conditions may refuse to supply the public with what it wants, but where 
competition exists a firm can only do so at the risk of being driven out of 
business. 
