TAUPO-TOTARA LINE

Evening Post, Volume CV, Issue 124, 26 May 1923, Page 13

TAUPO-TOTARA LINE

QUESTION OF ITS SALE

VIEWS OF TIMBER-OWNERS

Under the Finance Act, 1922, provision was made for the constitution of a district railway board for the purpose of facilitating the purchase by the board, if it thought fit, of the TaupoTotara Timber Company's railway. The district was defined by Gazette, and it is known as the Putararu-Taupo Railway District. A proposition is now before that board for the acquisition by the board of the railway; and the board convened a meeting of the owners of timber-bearing lands in the board's district for the purpose of ascertaining whether such owners are prepared to make themselves liable for the proposed payment of Is per hundred feet superficial of standing timber to provide funds for meeting the debentures which it is proposed to give to the TaupoTotara Timber Company in payment for the railway. Owing to the fact that some of the owners reside in Wei-' lington, the board arranged for a meeting to be held here. so as to enable the wishes of such timber owners to be ascertained.

The meeting was held in Wellington yesterday, and there were present: Dr. F. J. Rayner (Auckland), representing the Taupo-Putararu Railway Board ; Mr. Cox,, a member of the board; Mr. R. B. Morris (Secretary Post, and Telegraph Department); Mr. H. H, Sterling, representing the Railway Department; and Mr. A. W. Blair, representing the owners of the Whakamaru Block. The Hon. J. G. Coates (Postmaster-Gen-eral) was also present. .

Dr. F. J. Rayner explained that as a member of the Taupo-Patararu Railway Board he had been asked to ascertain the views of the timber owners. He read a letter from the actingcliairman of the board, in which he stated that the Act gave the board power to purchase the Taupo-Totara Timber Company's railway line if it thought proper. They had received an offer from the i company for the sale of the line. Before proceeding with negotiations with the company, it was thought desirable that owners of tim-ber-bearing lands in the district should express their opinions as to their timber being rated to provide interest and sinking fund toward the purchase money for the line. If this course were not taken, it was possible that the board might incur considerable expense in obtaining a valuation of the line and plant and then find the timber people hostile to the purchase. The present meeting was only a preliminary "canter," so to speak, of the board in the carrying out of its power under the Railways Act under which the board was acting.

The areas of timber-bearing land, and estimates of the timber on their land, of the owners present were stated. The Railway and Post and Telegraph Departments own such areas of timber land for departmental purposes.

In reply to questions asked by Mr. A. W. Blair, Dr. Rayner said the sale of the lino, according to the offer, was to be at the replacement value, or £167,000, which represented the book value of the line and the rolling-stock. The' Totara Timber Company was prepared to accept the purchase .money on debentures. The security of the debentures was to be the rate on the timberbearing land. I

Mr. Blair said 'his clients understood the proposition put before them originally that the rate was to be by. way of royalty on sawn timber. How did it come about that it. was now. suggested that the rate should 1 be or\ timber-bearing land? .

Dr. Rayner replied that he did not know how the "provision, with respect to rating timber-bearing land came to be in the statute.

Mr. Blair: "We will assume that there is 50 ■million feet of timber on a block of land. At Is per hundred feet on the standing timber that would mean that the owners would be called upon to pay £25,000?" . ■

Dr. Rayner: "That is correct." Mr. Blair: "What is the currency of the debentures to be?"

Dr. Rayner: "I believe that twenty years has been mentioned, but w.e have not come to any finality in respect to that."

Mr. Blair: "That would mean, roughly, about £1200, a year for the next twenty years as far as my clients are concerned; and for the Kailway Department, assuming they have 100,000 ft of timber, it would mean the payment by that Department of £2500 a year." After alluding to the lights of the de-benture-holders, and the taxing of the settlers for the maintenance of: the line, Mr. Blair said he understood that the line had been run for a good number of years at a loss. He quoted from a report of the Commission which sat in 1920, and which Commission reported against the Government purchasing the line. The Commission' expressed' the opinion that the acquisition of the line would not be in the best interests of the State. Mr. Blair strenuously objected to the proposed acquisition of the railway by the board. If the railway experts were opposed to the Government acquiring the line, the argument was much stronger against it being taken over by a board dependent for its income upon a mere handful of settlers. His clients while agreeable to a rate on the sawn timber were opposed to a rate on the standing timber and to the new condition, which" they thought, would be not only an injustice to them hut to every 1 settler in the district. The rate, added Mr. "Blair, could not he imposed without the consent of the owners. The settlers being liable to be rated for cost of maintenance and loss on running would run the risk of losing their lands if unable to pay such rates. The same applied to owners of timber-bearing lands for the rates to provide purchase money for the railway.

Dr. Rayner said he regretted the attitude which had been taken up by Mr. Blair. He had hoped that the timber owners would come in, and at least give the board the opportunity of further investigating the-purchase, as to whether it was a proper one or not. If they found that £167,000 was a fair and reasonable value for the line, he could see no reason why the board should not purchase it; but the board would make very sure on that point before they did anything. They desired to know that the step was a right nnd proper ono to pursue, and in the interests of the settlers. He pointed out that the future supplies of timber for New Zealand must come largely from the Taupo district. He would report to the board what had transpired at the meeting that afternoon, and it would be for the board to say what the next move would be.