THE MANAWATU RAILWAY.

Evening Post, Volume LXII, Issue 79, 30 September 1901, Page 4

THE MANAWATU RAILWAY.

After years of negotiations tvo have at last a definite declaration of the intentions of the Government with respect to the purchase of the Mauawatu railway. At the opening of the Waikanae traffic bridge on Saturday the Premier publicly announced that the Government were prepared to purchase the lipe on the basis of 30s per share, The history of the Manawatu railway and tho negotiations for the sale of the line to the Government are pretty well known. Still, it may be stated that the line was constructed' at a time when the colony was suffering from a. severe financial xrisis, and the project was carried through successfully in spite of the fact that its' practicability was doubted by Government engineers. The Hue was built under th& authority ol: the Railway Construction and Land Act, 1881, which also contains the conditions of purchase' in the event of the Government wishing, to purchase the line. As soon as the Wellington-Woodvillo line was completed the Government Railway Department initiated the policy of cutting against the company, a.nd in pursuance of this policy the Government lmo carries traffic for a distance of about 50 miles practically for nothing. The rates of freight from New Plymouth to Wellington via Woodville are the name as via Manawatu notwithstanding that the distance by the former is ntty miles greater. Another feature of this cutting policy was that tho Maimwatu railway, although the natural outlet for tho Hawkos Bay traffic, was denied the benefit of this by an ingenious arrangement of tho time-table. This attitude of tho Government occasioned alarm amongst the English shareholders, and tho principal London shareholders, after consultation with others submitted an offer of sale to the Government through tho local directors. This offer was equal to a payment of 35s 6d per share, bub after a gront deal of delay the offer was finally rejeotod by tho Government hi April last. Since then the directors have submitted another offer which, according to tho Premier, amounts to 52s 9d per shnro, and this also is refused, tho Government defining to purchase at above 30s per share. According to the last issued balance-sheet of the company the estimated value of the aaieti waa I

equnl to 29s per share, so that the price fixed by the Government allows a shilling per share .premium by way of goodwill. Tho company, as wo havo repeatedly pointed out, has not received fair play at the hands of the Government, but it is now apparently weary of the unequal fight, ajid offers to sell at a price considerably under the amount the State would bo required to pay did it exercise its right of resumption under the contract. At thß same time, since, it is tho company that desires to sell, the Premier is within his rights in making the best terms for the country that he cnn. One thing is cjear, and that is that tho time has long since passed when the Manawatu railway should become a part of the State Bystem, and the sooner it is acquired the better for the colony.