TAUPO TIMBER COMPANY.

Grey River Argus, 22 September 1911, Page 6

TAUPO TIMBER COMPANY.

PETITION FOR A PRIVATE LINE

(Per Press Association.)

WELLINGTON, Sept. 21

The Parliamentary Select Committee which was appointed last "week to incuire into a petition of Taupo to .give the Timber Company power to. extend its railway line and purchase a large area of native land met to-day.

The first witness wa,s F. G. Dalzicll who said that an order in Council was not accessary tor the purchasing ot native lands or ior the extension of the line, but he recognised that nothing could be, done until the fullest publicity had. faien given to the proposals. The Company was formed in 1900,- and its capital consisted of £341,780. There was an accumulation of preferential dividends amounting to £50,000. The Company timber available when the. company started working, although the estimates showed between tour and five, hundred millions. The Company had had always paid interest on th.o debenture loans but had paid no dividends. During the first two years a substantial loss wa,s made, but a profit was now being secured. There were about 120.,000 feet of milling paid £10,000 in railway freights and £6,000 in rates and taxes during the past six years. His object i-n stating the financial position was not to ask for assistance but to suggest that a company working on lines o* such magnitude had a claim to consideration. Witness maintained that there could be no re:ason at all lor the State o: 1 anyone else shouldering the Company's loss. It must meet that itself. What it was hoped to do was to moka this railway of permanent: value.

Continuing his evidenco Mr. Dalziell saAd that 'tho Company had arrived at the. conclusion that any proposal which involved financing by tlv.: Government was not likely to be acceptable in the near future. The line would not bo sufficient to tempt capitalists to invest money, but the money would 'be av.a viable- '>i the scheme, was associated with the proposal for tlv. purchase arid development of a sufficient area of land served by the line. The Company owned 50,000 acres of freehold which could b.-i devoted to the purchase, and it was desired to acquire 20.000 acres out of the 81,000 in the district. The line would serve between 1.500,000 and 2,000,000 acres. Nearly tho whole of tho land was unoccupied and nearly all was .excellently adapted for cultivation. The Company was not asking -any concession from the Crown, nor for any sacrifice by the natives. The price to bo paid be'.ng ':he- present value.

Witness also dealt with a number of objections which had been rawed and contended that so far from the proposal being injurious to thsi State, it would be highly profitable in every way.