MANAWATU RAILWAY.

New Zealand Herald, Volume XXXIX, Issue 11949, 25 April 1902, Page 3 (Supplement)

MANAWATU RAILWAY.

THE ACTION OF THE GOVERNMENT. Notice to terminate the agreement between the Government and the Wellington-Mana-watu Company in si:: mou.iis. lias been served upon the company by the Minister for Railways. The effect of this will be that the company will not be able to run trains or vehicles between Longburn and Palmer-ion. or on the Government lines at this end. Sir Joseph Ward states that the Government believes that its duty is to obtain for its own railways the through traffic now going over the company's line. Additional engines will be placed on the Wairarapa line to deal with the increased traffic. WELLINGTON, April 17. The Acting-Premier (Sir J. G. Ward) informed a Post reporter to-day that the action of the Government in connection with the termination of the running rights held by the Manawatu railway was not taken with the object of depreciating the value of the company's property, and there was nothing of the dog in the manger policy about it. He contended that what the Government was doing was in the best interests of the colony. Personally he had been indifferent to taking over the railway so long as the Government got the traffic for its own lines. He further stated that the Government intended to maintain the present connection with the Manawatu railway, and was arranging to provide accommodation at Longburn. Mr. Kirkcaldie, chairman of the Manawatu Railway Company, says he is not alarmed at the action of the Government in terminating the agreement with the, company. Interviewed to-day Mr. Kirkcaldie said he assumed that the Government would not attempt to interfere with the present passenger and mail services, but would keep up the connection from Longburn in this respect as heretofore. The decision mainly affected the carriage of goods, particularly frozen meat, produce, merchandise, and coal. The company had been accustomed to pay to the Government all terminal haulage charges on such goods, so it was not losing anything in this respect under the agreement. It was impossible to say to what extent the company would be affected until it was known to what lengths the Government was prepared to go. Personally Mr. Kirkcaldie doubted whether, in view of past experience, the Government rolling stock could cope with any increased traffic, such as was apparently anticipated, but he thought that the saving in time effected by sending goods by the company's line would prove a factor that consignees would consider when they faced the question of which line to patronise. April 21. When it was announced that the Government had given notice to terminate the running agreement with the Manawatu Company, the Wellington shareholders in the company cabled to Mr. Seddon at Sydney, stating what liar] been done and inquiring if he approved of it. The Premier replied as follows:—"No cause for anxiety. The notice was necessary in accordance with the settled policy of the Government announced in the House last session. Rest assured the present amicable relationship with the company will be maintained."