THE MANAWATU RAILWAY.

Otago Daily Times, Issue 13543, 16 March 1906, Page 5

THE MANAWATU RAILWAY.

THE GOVERNMENT'S POLICY. (Per United Press Association.) WELLINGTON, March 15. Speaking at a banquet to Mr Field, M.11.R., last night at Levin, the Premier referred to the question of the purchase of Iho Manawatu Railway Company's lino by the Government. lie "said that under the original agreement if tho Government took over the line within 21 years it had to pay 10 per cent, on the cost of construction. Taking the latter at half a. million sterling, it meant £50,000. The line, was opened its entire length in 1836, so Hint in November of next year the 21 years would expire, and after that no percc-ntiiKO would have to he paid.' The Government had to give five company 12 months' notice before purchasing, and it had up till November to give such notice.; and as the term was now nearly expired the Government could not see its way to make a prevent of £50.009 to the company. Strenuous efforts, he said, were being made to complete the Main Trunk line within the next three years, and the present Parliament would have to deal with the question of taking over the Manawatu lino.

(Fkoh Ouit.Otnr Coebbrposdest.) WELLINGTON. March 15. It seems pretty clear from Iho statement made by the Premier at Levin last, night that tho Government will fake over the Miinawaiu railway after November. 1907. By waiting- until 21 years from the date of opening have, elapsed, tho Premier contends that the Government, will not require i j pay tho 10 per cent, special compensation, and that in consequence tho colony will be saved it sum of £50,000. It is doubtful, however, if the company agrees with Mr Soddon's interpretation of the law. Asked if lie had anything to say on the subject, Mr Hannay, the > able and courteous general manager of the company, diplomatically replied: "Tim Premier, of course, is at liberty Io say what ho likes; I can say nothing." "Not even about the personal reference concerning your contemplated trip to London on company business and the allusion to the debentures?" pursued the reporter. ."No; I can't say anything about that cither." replied Mr Ilaniiav geniallv. The chairman of directors (Mr John Kirkcaldie) is out of town, but Mr David Anderson, a member of the board, referring to the Premier's speech, remarked: "There is nothing imich in what he stirs. I would not, tako any notice of it. I 'road it this morning, and I think very little of it. I have no doubt, that when wo wind up it will bo all right. Mr Scddon talks about 30s a share, but the figure will be more like £2." " Dnt did you see the statement bv- the Premier that after November of next, year there would be no need for the Government, to pay special compensation, and that this would mean a loss of £50,000 or so to the company?" queried the interviewer. Mr Anderson showed n disposition to abstain from further comment. "I think the less said about the railway at present the belter," he said. "I can'only 101 l you this, as one of tho directors, the thing is all right,"