THE MANAWATU LINE.

Marlborough Express, Volume XLII, Issue 216, 11 September 1908, Page 6

THE MANAWATU LINE.

SUCCESSFUL NEGOTIATIONS

The purchase by the State of the j "Wellington-Manawatu Railway Com- j pany's property has been successfully! arranged. A Bill to give effect to the purchase is entitled "An Act to carry into effect the purchase of the Wellington and Manawatu Railway by the Crown," and its chief provisions are as under:— On the 7th December, 1908, the railway and lands of the company are to become the property of the Crown. The amount of the purchase money is fixed at £900,000, and stores are to be paid for at their book value. The sum of £500,000 is to be expended in the purchase pf the company's debentures, and the balance is to be paid to the company on 27th February, 1909. The company is to pay interest to the Crown on the £500,000 at the rate of 4 per cent, per annum as from 31st August, 1908, to 7th December, 1908.

The Crown will pay interest on the balance of £400,000 at the' rate of 4 per cent, per annum, from 7th December, 1908, to 27th February, 1909, or until the purchase money isr fully paid. An additional sum of £15,000 is to hp paid to the company in consideration of the Crown getting possession i)f the line by 7th December next.

The £400,000 balance of the purchase money is to be paid either in «ash, or, at the option or the company, in debentures, or partly in cash and partly in debentures. Such debentures will bear interest at 4 per cent., and have a currency of seven,years. Those debentures will, if the company so requires, be issued subject to the right of the holders to convert them into inscribed stock, which will be issued at £101 per £100, at 3J per cent, per annum. Prior to the taking over of the railway on 7th December next, Government officials are to have the right of entry on. the railway, and to do what the Minister deems requisite or expedient for the working of the railway as a Government railway on a*hd af,ter the 7th December, provided that tMe officials do not thereby interfere with the safe and convenient working of the railway by the company. ' Existing contracts are', to be taken over by the Government— The company must keep the property in good order until it is taken over by the Government, and' must not create any additional incumbrance after the. passing of; the Act. It must also maintain existing fire policies. » For winding-up .•' purposes the company will be granted, the use of > its head office at Wellington for one year after the passing of the Act. The purchase money is made payable either in London or New Zealand.

Disputes as to the interpretation of the Act are to be settled by arbitration.

On and after 7th December next the railway is to be regarded as a Government railway in every sense of the term.

Provision is made for the payment of compensation to persons who, are deprived of property by virtue of the Act.

Liability to pay compensation for land taken compulsorily by the company is transferred from the company to the Crown. Outstanding debentures of the company, which are guaranteed not to exceed £6000, are to be paid by the Crown.

Public roads and streets are not to be affected.

The Minister for Finance is empowered to raise £1,000,000, at a maximum of 4 per cent., for the purpose of the Act. The money is to be paid into the Public Works Fund,and asfter paying off half a million of. debentures the balance is to be expended in the making of improvements and additions to I'olling-stock, and so on.

The total amount paid to the company for the property is not to exceed £930,000. It is provided that officers of the company may be appointed permanent officers in the Government Railways Department, and that service will be counted for superannuation purposes as from the date on which they entered the service of the company. ;'Any employee cf the company who does not enter the service of the Government Railways Department will, if less than 60 years of age, be entitled to a refund of his contributions; if he is 60 years or over he will be entitled to the same retiring allowance as if he had gone on the fund at that date;