RAIL TO TAUPO.

CABINET'S DECISION.

WORK TO START AT OKOE. OPENING UP FARMING LANDS. OUTLET FOR STATE TIMBER. (By Telegraph.—Owe Correspondent.) WELLINGTON, thie day. The Government has decided that, work «hall be started immediately the extension of the railway line i'v6j?i Rotorua to Taupo. The objects, Mr. Coatcs stat><j, \ ait night, are the fostering of settlement »"<! the provision of, transport f.cilitice for timber. In addition, employment will be given 4j an y men who vere recently on the completion of the East IC'oast railway to TinMtua. They -will be gradually tnntttrrcd to Taupo line.

The Prime Mr. Coatcs, sai l the had been considering for iome the. opening up- of • fdither I real o*' Crowu and other land which night, 'be suitable setticmVnt.' ' ' it wM, well known how very scattered yntt such areas ot' mutable country, but from experience gained by the use of fertilisers and the pursuit of research a better a|iprec>atio«i had been obtained of the possibilities of second a'ncl" {liifdcl«ss land.

'•.There me mar.y obstacle to be ov»vcome. but it is confidently bclieve<l t'.i-y will b® -mastcieil, ttius rendering Silile ihe development of the land," said Mr. Co*ten. "A careful sur\ey of siil-Ii land has been .undertaken. and indications all point to the piimitv country «f the and Taupo districts lioMing out Opportunities. A first ne.fcs•»ity to 4ny development or' t'.ie k!n.l jßDst to road and rail coinmp.ii-ation.''

Transport of Timber. ' lii about rtve years, said Mr. Coates, it 4rould lie necessary, for the Forestry Department to have access by rail fo. th* transport of timber to the ma; ,;ots. WAen this time Arrived a continuous •apply of timber would be available for railway transportation.

Already two commissions of inquiry had dealt with the question of continuity tit* line from Rotorua and both h:i*l recommended its construction. 1 >iu question of providing a road auflicieiriy •trong to carry the loads necessary for economic transportation had been very thoroughly gone into and tiie decision was in favour of transportation by rail. Tie successful working of large areas of forest land in this locality depended largely on cheap transport, and the railway would also provide the cheajHsit ferm of transport for the thousand* oi tons of fertilisers necessary tor farming itfceie linds beiore any real progress eeuld be made.

After full consideration of all these factors the Government had decided to extend the line and the work would be put in hand at once.

, The route suggested for the Taupo railway hy the commission of 1022 was Iff way of the He mo Gorge and W%iotapp, and thence along the right bank of ike Waikato River to Taupo.

Hie commission considered that a line •f ft length approximately 54} miles could be constructed within seven years for 1700,000, including the cost of stations, but excluaive of roiling stock, which would coat £50,000. Interest charges of 4 per cent would be £30,000 • year. It would be necessary to run each way one passenger and two goods •r mixed trains daily at an annual cost •f 162,547. Traffic within 10 years was estimated as follows: Average of 00 passengers a day each way,' £15,650 a year; 30,000,000 superficial feet of tim--1?r ft year from indigenous forest?, ."100,000ft of timber ana 2614 trucks of

»t, mining timber and firewood from

.ate plantations, £39,892 a year; farm produce, £1380 a year; inward traffic, £1570; making a total estimated revenue of £61,492.

The commission said there was, r.o likelihood of the railway returning sutfitient revenue to meet working and interest charges. A large area of Jand —from 1,250,000 to 2,000,000 acres—would be served by the railway, including Crown and native Isnda at present unoccupied and unproductive, as well as occupied country said fcy witnesses to be greatly restricted by tke absence of suitable means of transfer*, the commission reported. Among tile possibilities of the line were the greater exploitation of the thermal regions of Taupo, the easier and cheaper working of great indigenous forests and State plantations and the cartage of fsrtilisers to the interior pumice county

It Was expected that exportable proiwa from the Taupo district would ulti»ately find an outlet by way of Bay of W&nty ports. If Rotorua were cosi»«cted by rail with the East Coast rail*NJT» stated the commission, the line fronr Rotorua to Taupo would complete the outlet from the Taupo district to water in the Bay of Plenty.