TAUPO-TOTARA RAILWAY.

Hawke's Bay Tribune, Volume I, Issue 235, 21 September 1911, Page 6

TAUPO-TOTARA RAILWAY.

- --- - —— PARLIAMENTARY i OMMITTEE MEETS.. COMPANY’S <-LABI F< >R CONSIDERATION. ; PFR PHI" »--<r iln. IX W.•llirmton. Sept. 21. The PiirEar-u ritar;. >*-l»‘<'t « ter which was appointed La-t to inquire into the pet item <4 tin Taupo Totara Tinib* r ('l'mpany fin jMiwer to extend it' ra:.aa;. itrie are purchase a laru’r area "i cat-ve land nirt to-day. The firrt witrir-" w i' Mr. F. DalzmU. who »a >i that an Order in Council »a« r.ot nrir’-an tor tin purcha-<- of Nat.v* larui- >t for tt.< extension of the line, but h<- rn-oK nisrd that nothin:: coul>l he doin until the fullest public.ty l.ad Lee: given to the pr*»po-.al'. A ■ ■ompan.’ was Formed in H*»>. and ;t~ cap.tn consisted of £34 i .*’*>. There was ar accumulation of preferential *nvi (tends amounting to £so.i'»:n. Tin company had always paid -.ntere-t <>r debenture loans, but had paid n< dividends. Dur.ne trie tir-i t«< years a substantial !<>-s wa.- made but profit was now being -eeurcd There were about feet o milling timber available wr r-n tin company started working, ahhoiurr the estimates showed between four and five hundred millions. The com pany had paid £lo.l**' in railway freights, and £6ooo in rates and taxes during the past r-x year'. His object in stating the finam- al position was not to ask for a'.'i'tanee. but to suggest that a companv work ing on lines of such magnitude had a claim to consideration. M itness maintained there could be no reason at all for the State, or for anyone else shouldering the company's loss. It must meet that itself. M hat it was hopeed to do was to make thi.-, railway of permanent value. Continuing his evidence Mr. Dalziell said the company had arrived at the conclusion that any proposal which involved financing by Government was not likely tto be acceptable. In the near future the line would not be sufficient to tempt capitalists to invest money, but money would lie available if the scheme was associated with the proposal for purchase and development of a sufficient area of land served by the line. The company owned .->o.im.».> acres of freehold which could be devoted to the purpose, and it was desired tto acquire acres out of theh in the district. The line would serve between !,.W.tW and acres. Nearly the hwhole of the land was unoccupied and nearly all was excellently adapted for cultivation. The company was not asking any l oncvssion from the Crown, nor for any sacrifice by the Natives, the price to l»e paid bring its present value. Witness also dealt kith a number of objections which had been raised, ami contended that so far from the proposal being injurious to the State it would be highly profitable in every Mr. Dalziell also said the company's sole purpose was to get back the cost of the present line. It was prepared to accept very reasonable conditions as to its purchase by the State. He objected to the purchase by Government at an increase of ten per cent, on the cost. It had been suggested the company would sell the land at exorbitant prices, but the area it was proposed to secure was only one-sixth of that available, and other land, part of which belonged to the Crown, would be in competition wit 1 it. The number of natives concerned was between 15<** and 2»>00. The purchase of the railway and land would lie over £200.000. The company had not yet entered into any contract with the syndicate to which it desired to sell. The inquiry was adjourned till Thursday next.