TAUPO TOTARA

New Zealand Times, Volume XXXVI, Issue 8219, 6 September 1912, Page 4

TAUPO TOTARA

THE COMPANY’S PETITION I HEARING BY SELECT COMMITTEE OF PARLIAMENT. The select Parliamentary committee under the chairmanship of Mr G. J. Anderson appointed to hear the petition of the 'iaupo-'i'otara Timber Company met yesterday from its adjourned sitting of last week. The sitting commenced with the reading in full of the petition, and was followed by the reading of a petition in support from tii© settler's residing in lijast Taupo County. The Native Deportment forwarded a petition from 149 native owners entering objections to tho proposal. The Rotorua Chamfer of Commerce asked to lie advised when its evidence could be heard and tho Wellington Trades and Labor Council entered its objection. Sir John Findlay appeared to repre-s.-nt the petitioning company, Mr Blair for Tc lieu Heu and other natives, Air A. 11. Graham for tho Taupo Hail way League, and Air C. B. Collins for the Wellington Trades and Labor Council. AN OBJECTION. Some preliminary objections were raised by Air Collins upon the point of hearing the petition. The first clause, lie said, could only be given effect to by private legislation, and, therefore, the petition was informal, because the standing orders of the House had not been complied with. Secondly, the matters raised could be dealt with only by the Government, which must accept responsibility, and the first resort should be to that power itself. In the third place, tho petition contained matters of policy, and so could not be dealt with by the committee. Sir John Findlay said the objection was novel. The members cf tuo committee knew quite well that it nas on established practice to inquire into matters of this kind, A private Bill was not asked for. On the motion of Mr Buchanan, seconded by Mr Young, it was decided that the objections be not upheld. THE COMPANY’S CASE. Sir John Findlay said that this jetition differed radically from that of last year, after considering which the committee had recommended that the question should bo considered by Parliament this session after inquiries had. been made as to the best means of connecting Taupo by rail with the existing railway system. Last year’s petition was bound up with the request for permission to purchase 200,000 acres of native land for improvement and subdivision, but this year’s proposal offered tho line to the Government for purchase. The company contained only New Zealand capital, and though it had paid interest on debentures it had not, and was not likely to pay dividends on tho other classes of shares. It was not, however, in financial difficulties of any kind, and was not appearing as a bankrupt company or insolvent enterprise appealing for sympathy. It had a business proposition to make, which ho invited them to reject ■f deemed unsuitable. The line offered to the Government was at present fifty miles in length, and ran in from Putaruru to the company’s sawmill, and if completed to Taupo would be sixty-five miles in length. It was well built, and had been certified as being capable of taking goods and passenger traffic on the straight at twenty-two to twentyfive milea per hour, and on an average at sixteen miles per hour, so that tho journey .could be don© in four hours. THE REASONS FOR SALE. Tho cost of constructing and equipping the railway had been £130,000, and it was offered to the Government completed.at £IBO,OOO. The reason for selling now was that tho lino was a dwindling asset to the company. The forests now available would last perhaps for, fifteen or twenty years, and then the line would have to be pulled up and sold unless taken over by tho Government and used in the best fashion possible. It would be profitable to the company to sell now, but it would be even more profitable to tbo Government to purchase. It would get good value for its money. The company would guarantee to pay (in the obligatory sense) £11,600 a year for fifteen or twenty years as freight on timber. Already the company (which was empowered to cany goods but not passengers) earned £2OOO a year by freights and another £875 by other goods. Passengers from Rotorua (4000 a year at present, but bound to grow) would yield £3OOO a year, so that the total revenue would be £17,481. The cost of maintenance of the lino was £9450, leaving a profit of £BO3I. At 4i per cent, this meant £IBO,OOO, and at 4 per cent. £200,000. OPEN UP THE LAND. The land affected was pumice land, but scientific reports approved its capacity for cultivation. A total of 2,000,000 acres—one-twenty-fifth of the cultivable land of New Zealand—was affected, and could be opened up to healthy and prosperous settlement. Of j this 800,000 acres was native land, 350.000 acres unalienated Crown land, and tho rest educational reserves or j privately owned. At present the na- j tire hind was tho breeding-place of , noxious weeds and rabbits. The land I was suitable for subdivision .in holdings of from 300 to 800 acres. The Crown could acquire at its present valpe at least a part of the 800,000 acres of native land, and the difference between tho buying price and the selling price to settlers would pay for the railway. If the Government purchased the land thel company could complete the line immediately to Taupo and receive payment as the Crown sold the land or on arrangements to bo made. Calculations showed there was room fgr -500 settlers, who would support probably 10.000 or 12,000 souls altogether. • ROTORUA’S OBJECTIONS. It was Rotorua which would damn this proposal if it wore damned at all. There were two proposals affecting the opening up of this land. One was that a railway should be run from Rotorua down to Taupo and the other was that the company f a line should be extended to Taupo. This contrast was the crux of the case. The Rotoma-Taupo route would put Taupo twenty-three miles further from Auckland than through Putaruru by the company’s line. The cost of the Rotorua line would be at least £500,000 (including the cost of bridging the Waikato twice), jrhilja.

■he price of the whole of the company’s ! ine and stock was only £IBO,OOO. The I atter route could bo made available in. Tom eighteen months to two years, vhrJo tho other might take ton or ■welve years. Then the company guar- I inteed £11,600 annually from its line, | rut where would tho revenue come Tom on tho Rotorua line? The Roto•ua line would not serve the same county as the present line, because of the ’n ct-rposrtrori of a high range of moun■ams. i DOG-IN-THE-MANGER. The company recognised its main dificulties would come from the people of Rotorua; but was this great developnent to be stayed by a dog-in-tho-mau-jer policy? Last year it was said the July objection from Rotorua was that if private ownership of the line. Tho company now offered tho Government ts lino. The true reason of Rotorua’s apposition was that it desired to concentrate in Rotorua the whole tourist traihe of the thermal regions. It hoped to create a block in tho means if access and this position was selfish and insincere. The demand that goods should come through Tauranga ustead of Auckland meant an expenditure of £400,000 on railway construction, and it would take an equal amount to convoy goods through to Taupo if they had their way. In view of what tho country had done for Rotorua it was unjustifiable on its part to sacrifice the interests of New Zealand in this way. HIDDEN REASONS. Hidden reasons had been alleged for the company’s action. Those were in.am uniustifiablo. There was so alliance as was alleged between the I'aupo-T'otara Oompauy and the Tbngariro Company with tho view of securing a monopoly and injuring Rotorua by building lines through to the Main Trunk railway. Tho companies were independent and competitive. It was incorrect also that the company desired to secure options over all tho hotels in the thermal regions and establish a monopoly. Some options had been held, but they had been dropped. Duly two remained on the Taupo property and these had been secured bemuse of the terminus. If the Government bought the line it would be given the options. QUESTIONS. In reply to Mr Buchanan Sir John said it would bo_ a distinct advantage to the company in one way if it were allowed to extend the line itself and use it for passenger traffic, but it was not easy to find the capital required for the extension. They considered

! that what might not pay the company I would pay the Government very well, becauso of tho increased traffic over Government lines that would follow and also the increased revenue derived from I the extension of settlement which I would not go to tho company, i To the Hon. A. T. Ngata ho said j that the company’s offer was not subi ject to any conditions as to freights. , Tho company Would bo content to take the 200,U00 acres anywhere in tho Taupo district that the natives chose to sell it. Tho lino should be thoroughly investigated by a Government expert. Questioned by Mr Macdonald he admitted that there was no hope for the railway ultimately unless tho laud wore settled. All would depend upon tha manner in which settlement was carried out.

To the Hon. Dr Pomare he stated that if tho company got tho concession asked for it would expend at least £SOOO on improving tho line. Mr Collins asked tho chairman to request Sir John Findlay to set out in writing exactly what was required by tho petitioners. Sir John Findlay said he would havo this done. The request was perfectly reasonable, as ho admitted that tho matter was not adequately set out. Another request made by Mr Collins was that the committee should call for the papers in connection with the Or-der-in-Council authorising the constitution of tho existing Putaruru-Mokai line. Tho committee adjourned until 10 o’clock this morning, when the first witness will bo called.