EXPLANATION OF THE POSITION.

Marlborough Express, Volume XXXIX, Issue 63, 15 March 1906, Page 2

EXPLANATION OF THE POSITION.

SAVING THE COUNTRY £50,000,

[press association.]

WELLINGTON, March 15. Speaking at a banquet to Mr W. H. Field, M.H.R., last night, at Levin, the Premier referred to the purchase of the Manawatu Railway Company's lino by the Government. He said that under the original agreement, if the Government took over the line within 21 years, it had to pay -.10 per cent, on the cost. Taking the latter at half a million, it meant £50,000 per centage. The line was opened in its entire length iii 1886, so that in November next year the 21 years would expire, and after that no percentage would have to be paid. The Government had to give twelve months'" notice befoi'e purchasing, and it had up till November to give such notice; and as the term was now nearly expired the Government could not see its way to make a present of £50,000 to the Company. Strenuous efforts, he said, were being made to complete the Main Trunk line within three years, and the present Parliament would have to deal with the taking over of the Manawatu line.