DEVELOPMENT SCHEME

New Zealand Times, Volume LIII, Issue 12431, 27 April 1926, Page 7

DEVELOPMENT SCHEME

TIMBER AND L AND

LARGEST ATTEMPTED IN DOMINION COMPAJNY FORMED IN ENGLAND Per Press Association. AUCKLAND, April 26. What promises to be the largest timber and land development scheme ever attempted in New Zealand has been inaugurated in the past few days by the flotation of the Tongariro Railway Company with a oapital of £425,000, all of which is being subscribed in Great Britain. The company’s plans include the building of a standard gauge branch railway from Kakahi on the Main 'Trunk line to a point near Tokaanu, on Lake ’lnupo, a distance of about _4O milts. This railway will open up the largest single area of milling, timber in the North Island, comprising 00,000 acres estimated to contain 1,600,000,000 super feet. The nominal capital of the new company consists of £200,000 worth each of ordinary and preference shares and £25,000 worth of deferred shares. The preference shares are being subscribed in England, and of the ordinary shares £IOO,OOO worth will be made over to the Tongariro Timber Company in return for its rights over a large arei of forest. This company will also he relieved of liabilities amounting to £IBO,OOO. ENGLISH CAPITAL ■ It is expected that the total capital subscribed in England will be £325,000. The company is assured of the British Government’s assistance, under the Trade Facilities Act, in raisinglarge sums for the purchase of railway material and plant in Great Britain. Mr Bertram Philipps, a Welsh financier who had considerable farming ex-

perience in Taranstki an a young man is tho originator of the scheme. Tho new company does not propose at present to undertake timber milling itself, but will open np the country and dispose of its rights over the forest to a number of miflmgeompanies. Under its agreement with iftie Government it is requited to build eight miles of railway in the first two years, and to complete the line to Lake Taupo in eight years. It is thought probable that the contract for the line will be let to Sir W. G. Armstrong, Whitworth and Company, Ltd., which has much railway construction plant in \the Dominion.