THE LAKE WAKATIPU SERVICE.

Otago Witness, Issue 2539, 12 November 1902, Page 18

THE LAKE WAKATIPU SERVICE.

>' WELLINGTON, November 1. In order to improve th-e facilities for tourist traffic at the southern Takes the Government has purchased the business of the Lake Wak&tipu Steam Navigation Company, and is to take possession to-day. The property includes three steamers and the wharves and plant. These wil be improved, and the timetable arranged go that the services may be run in conjunction with th© railway?. The Government will make further efforts to popularise the- southern lakes district as a tourist resort, and endeavour to give increased facilities^ to persons wishing to visit that veritable wonderland.

(From Oue Own Corbespoxdent.)

WELLINGTON, November 2. The Government, having purchased the steamers and wharves of the Lake Wakatipu Steamship Company, is now likely also to acquire the steamers on the Wanganui River owned by Hatrick and Co. The Wanganui River traffic, Sir Joseph Ward considers, ought to be run in the interests of the travelling public and practically at railway rates. The action at the Government in regard to tl.e Lake Wakatipu eteamer service is strongly condemned by Mr Duthie. For the last 20 years, he said, a company had ran steamers on the lake, and three years ago a nevr company was floated with a capital of £30,000. In two years it had declared dividends of 10 and 6 per cent. Then the Minister of Railways announced that the company's 11-knot steamers were too slow, and stated his intention of starting a 16-knot service on the lake. Who, asked Mr Duthie, wanted to travel at 16-knot speed when viewing scenery? People wanted to go leisurely and ccc the grand scenery. — (Applause.) But the Government made this announcement, and the result was that the value of the company's property depreciated and shares fell from 23s to 12s 6d. Then the Government offered £15,000 tor the property, exclusive of a small reserve. Was it reasonable, was it just, Mr Duthie asked, that the Government should suddenly depreciate the comrany's property and coercs the company into taking the offer? Was it right? — (Cries of "No.") It was an outrage upon public morals — (loud applause), — and on a par with the treatment of the Manawatu Railway Company. This coercion by the Government degraded and lowered the whole tone of publio life. Mr Duthie added that he noticed by that night's paper that the company had succumbed, though he did not know on what terms. (A Voice: "Oh, the Government will give the other £15,000 directly, the same as it did with/ the Midland railway.") With reference to the above Sir Joseph Ward states: — "The outrage oa public morals referred to by Mr Dnthie may be judged from the fact that the Government has acquired the property at a price which, in my opinion, is a fair one, inasmuch as the company retains both its reserve fund and its book debts, which means, in round figures, £5000. If the Government had not negotiated for= the purchase of the steamers and had put on steamers independently of the company to give effect to its railway policy without acquiring the company's steamers there might have been some justification for saying that thepropeity had been depreciated ; but such a course would have meant that instead of £15,000 the company would have got nothing." In regard to the Manawatu Railway Company, Sir Joseph Ward says: — "The reports furnished to the Government for its guidance gave the value of the whole of the assets of the Manawatu railway as many thousands of pounds less than the amount offered by the Government."