TIMBER MILLING.

Press, Volume LXII, Issue 18676, 27 April 1926, Page 10

TIMBER MILLING.

( ❖ BIG NORTH ISLAND SCHEME. FINANCED IN ENGLAND. (F8238 ASSOCIATION TELBOBAM.) AUCKLAND, April 26. "What promises to be the largest timber and land development scheme ever attempted in New Zealand has been inaugurated in the past few days, by the notation of the 'l'ongariro Railway Company, with a capital of £420,G00, all of wnich is being subscribed in Great Britain. The company's plans include the building of a standard gauge railway from Kakahi on tho Main Trunk line; to a point near Tokaanu on Lake-Taupe, a distance of about 40 miles. This railway will open up the largest single area of milling timber in the North Island, comprising 60,000 acres, estimated to contain 1,600,000,000 super, feet. The nominal capital of the new company consists of £200,000 worth each, of ordinary and preference shares and £25,000 worth of deferred shares. The preference shares are being subscribed in England. Of the ordinary shares £IOO,OOO worth will be made over to tlio Tongariro Timber Company in return. for its rights over a large area of forest. This company will also be relieved of liabilities amounting to £IBO,OOO. It is expected that the total capital subscribed in England will be £325,000. Tlie company is assured of the British Government's assistance under the Trade Facilities Act in raising large sums for the purchase of railway material and plant in Great Britain. Bertram Philippe, a Welsh financier, who has had considerable farming experience in Taranaki as a young man, is the originator of the scheme. The new company does not propose, at present, to undertake timber milling itself, but will open up the country and dispose of its rights over the forest to a number of mining companies. Under its agreement with tlie Government it is required to build eight miles of railway in the first two years, and to complete the line to Lake Taupo in eight years. It is thought probable that the contract for the line will be let to Sir W. W. Armstrong, Whitworth and Co., Ltd., which has a good doal of railway construction plant in the Dominion.