POLITICAL INTELLIGENCE.

Press, Volume XLIV, Issue 6902, 7 November 1887, Page 5

POLITICAL INTELLIGENCE.

Bt Teleghaph. [from our connESPCNnENT.] WELLINGTON, November 6. The question of making railways by means of land grants is likely" to assume prominence. I have reason to believe that the present Government are disposed to favor this mode of solving the problem how to complete tbe remaining railways of our colonial trunk system. This plan has long been urged by Mr Pyke with reference to the Otago Central, and a deputation of Otago members waited upon the Premier yesterday to ascertain the attitude the Government intended to take with regard to Mr Pyke's Otago Central Railway Bill, whether they would remain neutral, or actively oppose or support the measure. The Premier said he was not then in a position to give a decided answer, but would do so after Tuesday next. I believe that if a majority of the House are favorable to this course a proposal may po-sibly be brought forward to the effect that the North Island Trunk line shall bo completed gradually, »n tlie same way as the laud is acquired from the Natives ; also that a similar arrangement may be suggested with regard to the Mauawatu Gorge line. It is considered that if this were done the necessity of raising ' such a largo sum by loan as the two millions proposed in the Financial Statement (which appears already to have alarmed the London money market) might be avoided. It is thought that all these three lines, as well as the north of Auckland extension, might be done by means of land grants, and most likely on more favourable terms than the Midland Railway. The idea has not taken definite shape as yet, but there are several indications that this maybe

theease before the session closes, especiaUy m view of Ministers being ndvt^ be favourably disposed towards the principle. . . x It is stated that the Government intend to obtain from England or America a thoroughly qualified man as Reneral n_a_ager and Chairman of the new Railway Board which they propose shall be constituted, and to leave the Board tree to reorganise the whole system. They are disinclined to make any alteration m the tariff at present. There is a good deal ot divided opinion as to the advisableness oi introducing the Board system, in spite of Victoria's experience, many members being unwilling to relinquish the power of "working little points" by means of political agitation, and recognising that this very convenient means of conciliating constituents is too useful to be readily given up. However, so far as can be judged at present, the majority of the House are eager to trvany new plan that looks at all feasible, in the hope of obtaining more satisfaction out of the railways than at present. I understand that General Schawwill probably report strongly in favor of maintaining eflicient defences at the principal ports, concentrating all defeusive efforts of the colony on these all-important points instead of spending money broadcast over the country in supporting volunteer corps, which would be utterly useless in ease of invasion, and that he will urge the necessity of keeping up such defences in the chief port., as shall secure shelter and coaling grounds for the colouiai fleet. I bear that both Sir W. Jervoi3 and General Schaw concur in the opinion that there can be no security without maintaining a capable fleet at sea, and that they consider New Zealand should contribute as proposed toward the cost of the Australasian squadron, wliile also providing, as already mentioned, suitable places of refuge where vessels could obtaiu needful supplies and repairs ia full security. It is reported that the Government are in favour of this course, aud that it will form a portion of their defence scheme. -'here are rumours of disaffection among the Ministerial party on the question of the loan, several members being strongly adverse to any further borrowing, or at any rate to so large an amount. They are not inclined, however, to run the risk of puttlug Sir J. Vogel in power on this. account, which they look on in the light of "jumping out of the frying-pan into the fire."

The Midland Railway proposals are still viewed with great disfavor by a large number of members, and there will be strenuous resistance to any concessions. It is expected that there will be a further acrimonious discussion on the subject when the adjourned debate is resumed.