NEW RAILWAY

Dominion, Volume 18, Issue 151, 23 March 1925, Page 8

NEW RAILWAY

TAUPO TO PUTARURU “NO CALL FOR CONSTRUCTION” SPECIAL® COMMITTEE’S VIEW That there is no call for the construction of a railway from Taupo to Putaruru is the opinion expressed by a special departmental committee, whose reasons are set out in a report to the Minister of Railways.

The Minister of Public Works (Hon. J. G. Coates) has now released for publication the following report of a special committee set up to consider the various proposals for railway access between Putaruru and Oruanui. The committee consisted of Messrs. F. W. Furkert, Engineer-in-Chief and Un-der-Secretary, Public Works Department, F. J. Jones, chairman, Railway Board, and L. C. Hamann, chief accountant, New Zealand Railways:— “Putaruru-Taupo Railway.—We have investigated the proposals for railway access between Putaruru and Oruanui and have to report as follows:

“The principal difficulty is to strike a balance between receipts and outgoings which will enable the timber to be carried at a reasonable 1 rate. Three proposals may be considered:— “1. Adopting the present line with bridges, etc., put into proper repair and with six mile extension.

“2. Adopting the present line strengthened and improved with six miles extension in accordance with Messrs. Vickerman and Lancaster’s proposals. “3. Adopting present line as far as the 19-mile peg, and constructing new line from there to the 60-tnile peg. “The costs of these proposals may be put as follow : —l. £290,000. 2. £330,000. 3. £450,000. “Note. —This figure has been taken from Messrs. Vickerman and Lancaster’s report, but in our opinion there is no warrant for the presumption that the line shown by them as valued in the company’s books at £136,000 can be obtained for £BO,OOO. “The working costs of these three proposals would be, assuming 20,000,000 feet of timber carried per annum over Nos.- 1 and 2, and 14,000,000 feet per annum over No. 3:

“1. On present line: £ Interest on £165,000 at 5J per cent 9,075 Interest on £125,000 at 64 per cent. ... 8,125 Working costs, 65,000 train' miles 32,000 Transfer charges 6,300

£55,500 “2. On present line strengthened: Interest on £lOO,OOO at 5J per cent. 5,500 Interest on £230,000 at 6j per cent 14,950 Working costs as previously 82,000 Transfer expenses 6,800 £58,750 “3. On new line: — . £■ Interest on £450,000 at 64 per cent. 29,250 Working costs, 48,000 train miles 28,500 £57,750 Sinking Fund. “We consider provision to pay off the line should be so made that the cost of the line will be paid off ia 20 years’ time. “Cost of freight to Putaruru to cover expenses must therefore be with—--12 8 Interest charges ... 1/9 2/1 4/2 Sinking fund ... lOfd. 1/- 1/11 Working exps. and any transfer costs 8/4 3/5 3/7

C/111 6/5 9/8 plus freights over Government lines, which will remain as at present. In view of the previous note, the middle column, No. 2, is of little value. “Should the traffic be less than, that anticipated, then no doubt the freights necessary would have to be increased. “In cases Nos. 1 and 2 it will be noted that the cost’is based on all the timber, including Taupo Totara Timber Company’s, say, 20,000,000 feet per annum, coming over the line. In the third case the Taupo Totara Timber Company’s timber is excluded. “We are of opinion there is no call for the construction of a new line. The present line is sufficient to do all the business necessary. “If the money were borrowed we are of oninion that within a year or two the finances of the board would be in such a position that the board would use every endeavour to get the State to take over the line. “In order that amicable arrangements may obtain, we are of opinion that the management, of the line should be in the hands of a board on which all interests are represented.”