The Evening Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News, and Echo. MONDAY, APRIL 21, 1902. THE MANAWATU RAILWAY.

Auckland Star, Volume XXXVIII, Issue 93, 21 April 1902, Page 4

The Evening Star: WITH WHICH ARE INCORPORATED The Evening News, Morning News, and Echo.

MONDAY, APRIL 21, 1902. THE MANAWATU RAILWAY.

For the cause that lacks assistance For the wrong that needs resistance For the future in the distance A.nd the good that we can do.

The notice served by the Minister of Railways upon the WellingtonManawatu Railway Company, to the. effect that it is the intention of the

Governrnent, at the expiration oC six months, to terminate the existing agreement with the Company, is dictated, we believe, by sound business principles. The Company at present exercises the right of running its carriages and trucks over the Government line between Longburn and Palmerston North; it also taps the greater part of the through traffic on the Government trunk lines to New Plymouth and Napier, although the Government have a through line of their own. The gift of a huge block of valuable Crown land to a

private company for the construction of this line was one of the biggest blunders committed i« ffie course of Sir Harry Atkinson's long connection with public affairs. Not only does the route shorten the distance between Wellington and New Plymouth by 43 miles, and to Napier by 9 miles, as compared with the Government line via Wairarapa. but it is a much better grade, and the country through which the line passes is fertile enough to have justified the construction of the railway, irrespective of the fact that every extension the. Government may make of its railways through the southern half of the North Island, including the North Island Trunk railway, enhances the value of the monopoly held by the Manawatu Railway Company. The capitalists by whom this railway was constructed realise the strength of their position, and although the Governiinent have made liberal offers for the purchase of the line, no agreement has resulted.

The notice which Sir Joseph Ward gave to the Company last week is simply designed to secure for the colony the traffic created by its own lines, the profit from which is now reaped by the Wellington-Manawatu Company. In the course of a recent interview, Sir Joseph Ward stated that "the Government had offered what it considered a very fair price

for the Company's property, bxit the shareholders evidently preferred to retain it, and Cabinet had therefore

decided that in the best interests of the country it must obtain for the State railways the through traffic which was now passing over the Manawatu line. The freight and" passenger charges for long-distance travelling on the Government lines were to be considerably reduced, and the Government felt that the finan-

eial results of these concessions

would prove to be satisfactory. Most of the goods which now passed over the Manawatu line Wellington-wards would, he believed, be sent via the Wairarapa. as the charges would justify consignees in selecting that route."

The. influence of Wellington shareholders over the public policy in relatiion to the Manawatu line has been all powerful. The construction of the eighteen miles of railway through Manawatu Gorg-e before the Government line to Wellington was completed, affords a foir example of the manner in which the wires were pulled. By that operation the Napier through traffic originating upon Government lines was thrown on the WellingtOn-M'anawatu, and has never been recovered by the line via Wairarapa. So long as the Government is complaisant enough to give the company the cream raf the traffic flowing from the Government lines, offers of purchase, however fair, are not likely to, command much attention from the directors. The average interest earned on the Government railways for the year ending 31st March, 1901, was £3 9/8, but the Wellington - Manawatu Company, notwithstanding the high rate at which its capital was obtained shows a very different result. Mr John Kircaldie, Chairman of Directors, speaking of Sir Joseph Ward's ntoiice, informed a "Wellington Post" interviewer last week that Ihe directors "had expected that there would be a cutting of rates, which had been hinted at during the negotiations for sale of the line, and were now mentioned as likely to come into force shortly. The company was prepared for that, and as regards its present prospects, lie might say that he had every reason to believe that at the date of the termination of the agreement, in October, the company would have earned on eight months* working sufficient to pay ita shareholders a

6 per cent, dividend for the current year. As to the future, it was impossible to say to what extent the company would be affected until it was' known to what lengths the Government was prepared to go."

We do not hesitate to say that public opinion will support the Minister of Railways in going as far as is necessary to secure the traffic that is created upon Government lines for its own railways, even if, for this purpose, he absolutely severs all connection with the Manawatu line and refuses to grant a through rate. No private 'railway company would allow such a state of things to exist as that which has enabled the Manawatu Railway Company to skim the cream of the Government railway traffic, and we heartily welcome the step, which Sir Joseph Ward has now taken to protect the important public interests which are involved.