THE WELLINGTON-MANAWATU RAILWAY.

Otago Daily Times, Issue 13942, 29 June 1907, Page 8

THE WELLINGTON-MANAWATU RAILWAY.

The nearer tlia, construction of the North Island Main Trunk line of railway is carried to its completion the more distinct' oecomes the necessity for the acquisition by the Government of the Wellington-Manawatu Railway Company's line and assets. The company has rendered a service of very great value to the community by the construction of its railway from Wellington to Pahnor.-itoa North, for the result of its enterprise, npon which it entered at a time when the State was not itself prepared to build a railway along the West Coast of the North Island, has been to open up large tracts of country that had previously been more or lesa undeveloped through the lack of meafw

of convenient access. And it is gratifying to know that the shareholders are reaping a fair return upon the capital they invested in the undertaking—a return, moreover, which lias not been secured at the cost of the comfort of passengers or of the denial of facilities to producers, since the railway has, from the day on which it was opened, been conducted upon liberal lines. But it will he generally admitted that it is advisable that the. State should acquire control of the line, and thus secure the complete management of all the important railways of the colony. There is, we suppose, no controversy upon that matter. From all sides in Parliament the necessity for the acquisition of the line has from time to time been pressed upon the Government. And probably the only point upon which there can be any difference of opinion is that of the terms that should be arranged. It may bo recalled that, in the closing hours of the session of 1901, Mr Seddon brought down a, Bill to deal with the matter and that this was passed, not ■without vigorour. opposition on the part of members, who protested against such a proposal being introduced without any warning at such a time. This measure provided for the colony taking over the company's debenture liability and in addition paying the company 30s pe. share upon its isnio of 170,000 shares—in all, about £943,000. The company was, however, not prepared to transact business on the basis of a pnyment of 30s per share. It had in the previous year offered to dispose of its line to the Government on a G per cent, basis, which would have represented about 35s per share, and subsequently there wore negotiations for a sale at 31s 9d per share. But the Government and the company have never been able to come to terms. It is pertinent, in these circumstances, to refer to the provisions of tbe enactment under the authority of which tho company's line was constructed so far as they relate to the question of acquisition by the State. It is prescribed that the colony may, upon twelve months' notice, purchase the railway at n price to be determined by arbitration, and there are special provisions under which tho method of ascertaining the value of the railway is kid down. The arbitrators aro not to award nny compensation to the company in respect of tho lands granted to it, but the company is to bo entitled to fair value of all improvements made by it upon the lands. Agniu, no compensation whatever is to be allowed for goodwill. The arbitrators are to talce as a basis of the valuation the cost of other similar railway works, plant, anil rolling stock at .the time when the line was completed or when the plant or rolling stock was acquired, as the case may be, and they aro also to allow for depreciation of permanent way, .plant, rolling stock, and buildings. A provision under which a certain fixed percentage was to be added to the compensation in the event of the power to acquire being exercised by the State within a certain period after the opening of the railway for traffic need not now be considered, since ir lias uecome inoperative through lapse of time. It is apparently under the •provisions we have sketched tiiat Mr Field, who has given notice of a question to the Government on the subject, thinks the line should be acquired, awl it may be that it will only be by the exercise of the statutory power of acquisition by the State that a reasonable settlement will be obtainable.