THE T.T.T. COMPANY’S LINE

Matamata Record, Volume III, Issue 202, 25 November 1920, Page 1

THE T.T.T. COMPANY’S LINE

Railway Engineer’s Evidence At the sitting of the Taupo Totara Railway Commission in Wellington, evidence was given by Government oflicials. This was mostly antagonistic to the proposal. OFFICIALS’ VIEWS. Mr. F. W. McLean, the Chief Engineer, stated that to make the railway fit for passenger traffic under an Or-dcr-in-Council would cost approximately: Formation, widening the banks and cutting £IOO a mile, total from Lichfield to Oruanui siding, 413 miles, £10,700; renewal of bridges, £8300; strengthening of track, £8400; four sidings £1200; altering clearances. £200; shelter sheds and conveniences, £1200; Orunui to Mokai, £2450; contingencies, £1550; total, £40,000. In addition to that there would be required in the way of rolling stock two additional engines, £10,000; 25 waggons, £17,500; two passenger cars, £2000; a total of £20,500, or a grand total of approximately £70,000. He had not included it in his estimates, but it might be necessary to insist on the installation of air-brakes, which would add about £IOO per engine, and £SO for a vehicle vehicle. 'Pile extension of the line from Mokai to Taupo seemed quite practicable. As a financial proposition the thing was hopeless. On the Kaihu line, over which 4,000,000 ft. of timber and 35,400 passengers were carried last year, the loss, without taking into account interest on capital, was £3400, while on the Nelson line, which carried 2,000,000 ft. of timber and 117,000 passengers, the loss was £IOOO last year. , To bring the line to the secondary line standard would cost about £1,000,000. Ho was opposed to the State taking over the line. Mr. R. W. McVilly was in accord with the Chief Engineer’s views, and was opposed to the State taking over the line.

THE COMPANY’S ATTITUDE. Mr. F. G. Dalziell, chairman of the Taupo-Totara Company, said his company was not seeking any help or concession from the Government. He proceeded to survey the history of the company’s relations with the Taupo district. He said the Railway Department had encouraged the company to proceed with the building of the line, and had given a good deal of assistance, but the company had never undertaken to carry on a tramway business for the general public for any definite time or for all time. The Ordcr-in-Council of 1908 was only a license. He stated that -when in 1913 Mr. Massey had visited the district he had told the settlers they could rely on the line being permanently available. Subsequent to Mr. Massey’s visit the company was given power to make a levy for the extension of the line to Taupo. When the company took up the matter again after the war it was found that the rate would no longer be adequate. The company’s position under the Order-in-Council had become worse but, on the other hand, the value of the timber in the company’s area had greatly increased, and it looked is if the company could get back its capital and interest, with some contribution by way of sinking fund to the railway. The company had the choice cither to relinquish its Order-in-Council and revert to the old position, when it had a right to carry what goods it liked, or to join with the settlers in getting the railway put on a better footing. It decided to act with the settlers, anti the appointment of a commission was the outcome ot that decision. The question to be considered was whether or not the line was required for settlement. If it was so required the company was prepared to enter into any arrangement that would secure to it the present value of its estate and to accept payment in Government stock or in debentures of a local board guar-

anteed by the Government. It was willing alternatively to accept, any such stock or debentures on account of the outlay with interest to date. If the company’s assets were estimated by the Government to amount to more than its capital and interest the ccjp'pany, nevertheless, would accept' the smaller sum. If the line was not required for settlement there was no reason why the company should continue to run it. The company was willing to hand over the railway line, or the railway with the timber, or the railway with 48,000 acres of land, or the three assets together, to the Government or to a local board on any fair arrangement. The company’s view was that the money put into the venture had been necessary for the development of the-land, and that the company therefore should get back its capital expenditure before other people made profits. Tf the income tax charged on the timber in the district were set aside as a sinking fund and to assist a settlement it would enable the settler to get Government rates on the line. He thought the capital cost on the"' railway should come out of the timber still to be cut on the company’s land and other land served by the line. The company were prepared to enter into an arrangement with this object. •