RAILWAY POLICY.

Otago Witness, Issue 2928, 27 April 1910, Page 34

RAILWAY POLICY.

SPEECH BY THE PRIME MINISTER. MORE ABOUT THE 34 PER CENT. POLICY. Whilst at Levin on Thursday (says the Dominion) the Prime Minister (Sir Joseph Ward) made some interesting re-marks on an important phase of the railways policy, when replying to representations from the Horowhenua County Council and the Levin Borough Council in favour of the construction of a line from Levin to Greatford. Referring to the proposed line, Mr Field, M.P., said that it would pass through much valuable flat country. In addition, it would mean that the journey from Wellington to Auckland would be shortened by 16 miles, which would be equivalent to one hour. Mr Gardener (Mayor of Levin) declared that scores of people would be willing to put capital into the proposed line, which should pay handsomely. If, however, the Government would agree to construct it, there would be no difficulty in getting a guarantee to make up any difference in the earnings up to 3g per cent, on the cost. They wished to know exactly what were the intentions of the Government in the matter. Some years ago a promise was made that the line would be surveyed, but that had never been done. Mr M'Leavey pointed out that there might at any time be difficulty in connection with the present line owing to the fact of the Makerua Swamp, 'which was being drained, sinking. Sir Joseph explained that the Government was not in favour of private people making railways. Almost everywhere that there had been private railways in addition to State lines the former had been a failure, and as a rule pressure was sooner or later brought on the Government of the country to purchase them. In fact, it usually turned out that it would have been better for the Government to have constructed the lines in the first place. He knew something about negotiations for the acquisition of private lines, as, for instance, he took part in those in connection with the Manawatu line. If the Government allowed the proposed railway to be built by private enterprise it would be charged with the stoppage of the circulation- of the money that _ was expended in it, and told that if the line had been necessary it should have been built by the Government. As regards the decision, of the Government that future railways must pay 3i per cent, on the ecst of construction, he would like to make the position quite clear. If the proposal had been in operation 25 years ago he was sure that one or two of the present railways would never have been built. The fact was that the Government would require to get a guarantee of a return over a period of years of the 3-i_ per cent, on the cost of construction of a proposed line. If that were not insisted upon the result would be one of two things either a less vigorous policy of construction or a < very great increase of the cost of-freights and ,rates to make a reasonable return in respect of the whole of the radways. Before starting on a line the Government .should ascertain whether it wenld be able to nay 3s ner cent, on the cost of obstruction within a reasonable time. Lines which would be a -very heavy burden for all time were undesirable. To orevent the construction of really unprofitable lines the Government was following a sound route by saying that there should be a svstom—he did not sav as inflexible as the laws of the Mede™ and Persians—under which there would be what was only a reasonable return on the cost within a reasonable time. Districts benefiting: would be required to guarantee to contribute any difference between the earnings and 3i per cent, of the cost That was exactly what the Government orooosed to ask the country to agree to. It should be agreed to in order to get the uinci.mpleted lines finished as early as possible. as, in the meantime, these railways could not give their full return on their outlay. He realised that the present railways fell far short of the requirements of the future: many hundreds, or he should sav thousands, of miles had yet to be made. There was oma irr particular, and for its inauguration the prewnt Government wais not responsible, which oaid only about 7s per cent, on a very large sum.'* about two millions. The fact of the loss on that I»ik> was being u«od against. the whol-p- Twi'hvny «v«tem —the Piuth Island particidarlv —as though the whole cf them did not my. A* he had maid before, the Government could not heto the present nofiition H that line. The people should be aeked to nvotect the Govpmment ag&irwt the of undertaking the construction of Hne* which woidd rmi; pay a reasonable pero Q ntos«\ Tf the Government were to undertake to make all the ra.ilwavs wherever a guarantee was given to moke up -inv loss up to 3A p CT cent., jt would require to a. very large ■amount, perhaps ?.0 millions in one year. The dutv of th« Government, however, whs to rvitfvt th-> Tv*or.V agatost, themselves. _ If New ZAnlnrrd wonted to pr~vserve its name ft-iJicvdW. it. pjbon'd not po in for over-railropdinr. «J---t.hough o-usranitees were nffwd. T-f f}u* Government wbi» to sr o ,} n f o r -"heSesVle borrowing fn" raflw*»vs. vr.rW <«reum'tene'is the >«**«l* be +.Kit, ite s - r/>d na.mn trwn]d sttoV fa* financial and the effects ■*"" »ij<? "w-anrfc on evervhodv in tlie coun+rv. Tho Government )r«ns* yot vipM to npor>!° were rjart'V'dsrlv anxious to ppt railwnvc—th° re">n?ist.«i should receive m»*iir«» <H)TH>vtm > i>tk» n . for it rmVht tn* - " out. that +he railwav •'" question would -pr-x-av -~«« q •"Vtmrwi.bla nero^nta T n hit o.rn''nio.n. x b«" host. twjrt& tor fhe Go'"err Tr, prt to .idor>t would Ko to lav ''own a. str»'*'- t >+-ont *tolic*\ airo 1 to +Ur» +,i Ve.n. fl, *st .°nd *'- ; fhi'-> •>. r~.";<s->n" I dio time. pr.o -1-r,, it,„ nv hf. *W,' t>P R u O"M (>.«'- the to o.csjpf jf; f~ to ito tv»lv*»- to t,ho -n.stto" to order thi.h too muo" ro.Vhf not be urd-ortoj.wi r - one fime. Tf i-karp -wp" a. TvronjJß" mado to }l9v« ■••'hi ]i"o cnr'-r>vp.d P'v' TV>tv\rted unon'. t.Kn.* TOtM'V *v* dio«M«». Vnf fv-nwe. wo"W not v .-> Governmenrt w«"H n »*" ;+ *> the work.