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New Zealand Herald, Volume XI, Issue 3992, 28 August 1874, Page 2

The Railways Bill tiirown out by the Legislative Council will in many ways derange the policy of the Government as foreshadowed by the Treasurer in his Financial Statement. The old Southland Railway, the first made in New Zealand and which lay so long a dead letter in that province, was to have been taken over with its continuation to Winton Bush, by the General Government. Having been constructed by the province out of provinoi.il loans, this operation would have replaced the cost of the railway ir. the provincial treasury. Otago, with which Southland is now united, would thus have had the railway am; the money too. Its treasury would have been recruited with some £200,000 or £250,000 which the 30 miles of railway in question have cost. The case is analogous prcenely to that of own Waikato lino, of which so large a part was constructed from *'ia provincial loans. But in our casn tliu General Government have always refused u- repay to the province the cost of the v.vri:s, which would have placed £70,000 or £60,000 in the Auckland treasury. Otago has doubtedless relied on the reimbursement promised in the Treasurer's Statement, and we have to learn how the disappoinment will be taken. The following schedule will shew the works affected by the bill, among which it will be seen is included our own little Kaipara and Biverhead line : —

Existing Additional Appropriation. Appropription. Kiiipara to Itiverhead £51,000 £14,000 Waniranni to Mananatu SOIi.OOO 1V2,0>.0 V.'aitaki i'.ridge 00,000 15,000 G.-cymoutli to IJnmncr 74,000 10,00 In addition to the above there are the following new lines : — rxtmision of the Manawatu .. £30,000 Foxton to Jlanuwatu .. CO.OOO The two peculiar features in the bill are—Firstly, that tke appropriation of £90,000 for the last two small items is stated to be for th« cost of the works, " and to include interest during construction" ; nnd secondly, that the sums expended under the bill should "be charged against the land fund" of the province in which the expenditure is made. The bill being thrown out on the second reading, implies that the objection of the Council wr.s not to details, but to principle. Possibly, the objectionable principle may have been the paying interest out of loans ; or tjuite as likely it may have been the proposal to charge the expenditrre specifically against the land fund—that "apple of the eye" which the South so jealously gu.irds.

It will be seen by later telegrams which we publish elsewhere, that the action of the "Lords" in throwing out the Railways Bill has occasioned considerable consternation amongst the Otago and Canterbury members in the House of Representatives, whose interests it aft'ects to even a much greater extent than it does ours. Brought to bay at this period of the session, the Otago members especially appear to be at their wit's end what course to pursue, and a most extraordinary proposition was niado by Mr. Reid to over-ride the veto of the Upper House. The Government expressed great sorrow that they did not see their way out of the diliiculty, but declined to be a party to any action which would be a breach of etiquette between the two Houses, or which would be constitutionally iiltrit rircx. To meet this the Otago members held over the House the threat that they would sacrifice their land (although in the interest of the public unwilling to do so !) and construct their line- at any cost on their own responsibility. The most sensible rosolut:>>n was that made by Mr. Montgomery, which, in oii'eet, was that the Uo\ eminent should proceed, during the recess, to negotiate for the yuruhaso of the lines referred to in the schedules, and again bring down the necessary bill at the next meeting of Parliament. This, however, was not considered to be going far enough. After very considerable pressure the Premier promised that in order to test the matter again he would be prepared to bring down a bill at the evening sitting, in which he proposed to authorise the payment of £'00,0UU on account of the purchase of the railways in question. Here our telegrams end. and we shall look with some degree of concern to discover in.what way the mutter has ended, it does seem strange that as Auckland interests are also materially concerned in the rejection of this b : ll, not one of the Auckland members (except Mr. Creighton, wlio spoke for Otago), had a word -o say upon the matter. Mr. Curtis has secured a promise that a sopa.ate bill shall be brought in at the same time in the interests of Nelson, the loan bill for which province had also been thrown out. Why could not our representatives have been equally alive with regard . o tho Kaipara Railway construction, which has fallen throiigh with the rejection of the bill in question ? :