TAUPO RAILWAY

New Zealand Times, Volume LII, Issue 12094, 23 March 1925, Page 7

TAUPO RAILWAY

THE COMMITTEE’S REPORT . ■“■NO CALL FOR CONSTRUCTION OF NEW LINE.® THREE ALTERNATIVES. The Hon. J. G. Coates, Minister for 'Public Works, released for publication on Saturday the following report of the special committee set up to consider the various proposals for railway accesses between Putaruru and' Oruanui. The committee consisted: of Messrs F. W. •Furkert {engineer-in-chief and Undersecretary, Public Works Department), ■F. J. Jonesi (chairman, Railway ■Board), and L. C. Hamann (chief'accountant, New Zealand railways):— “Ptltaruru-Taupo Railway.—We have investigated the proposals for railway aeoess between Putaruru and Oruanui. ' and have to report as follows: — “The principal difficulty is to strike a balance between receipts and outgoings which will enable the timber to be carried at a reasonable rate. Three proposals may be considered : —-(1) Adopting the present line with bridges, etc., put into proper repair, and with six mile extension ; (2) adopting the present line strengthened and improved with six mile extension In accordance with Messrs Vidkermam and Lancaster’s proposals; (3) adopting present line as far as the 19 mile peg, and constructing new line from there to the 60 mile peg. “The costs of these proposals may be put as follows: —(1), £290,000; (2)*. £330,000; (3), £450,000. "Note:—This figure has been taken from Miessrs Vickerman and Lancaster’s report, hut :n our opinion there' is no warrant for the presumption that the line shown hy them as valued in the company’s books at £136,000 can be obtained for £BO,000. WORKING COSTS COMPARED. “The working costs of these throe proposals would oe, assuming 20,000,000 feet of timber carried per annum over ■Nos. 1 and 2, and 14,000,000 feet per annum over No. 3:— £ (1) On present line— Interest on .£165,000 at 5$ per cent. 0.075 Interest on £195,000 at 6| per. cent. 8,125 Working costs, 65,000 train miles... 32,000 Transfer charges 6,300 ■ 58.500 (2) On present line strengthened— Interest on £IOO,OOO at 5i per cent. 5,500 Interest on £230,000 at Of per cent. 14,950 Working costs as previously 38.000 Transfer expenses 6,900 58.750 (3) On new line— Interest on £450,000 at 6j per cent. 29,250 Working costs, 48,000 train miles... 28,500 557760 SINKING FUND. “We consider provision to pay off the line should be so made that the cost of the line will be paid off in twenty years’ time. Cost of freight to Putaruru to cover expenses must, therefore, be •with:—

plus freights over Government lines which will remain as at 'present. In view of the previous note, the middle column (2) is of little value. Should the traffic be less than that anticipated then no doubt the freights necessary would have to be increased. “In cases (1) and (2) it will be noted that the cost is based on all the timber including Taupo Totara Timber Company’s, say, 20,000,000 feet' per. annum coming over the line. In the third case the Taupo Totara Timber Company’s timber, is excluded. “We are of opinion there is no call for the construction of a' new line. The present line is sufficient to do all the business necessary. If the money were borrowed we are of opinion that within a year or two the finances of the board would be in each a position that the hoard! would use every endeavour to get the State to take over the line. In order that amicable arrangements may obtain, we are of opinion that the management of the line should be in the hands of a board on which all interests are represented.”

th : — a) (2) Interest charges 1 9 2 1 4 2 Sinking fund; Working expenses 0 10i 1 0 1 11 and! any transfer costs ?... 3 4 3 5 3 7 i ■■■ 5 Hi 6 6 9 8