EAST COAST RAILWAY

Southland Times, Issue 25308, 11 June 1935, Page 7

EAST COAST RAILWAY

“EVERYTHING IN THE DARK.” OFFER FROM LONDON. Asked by a Dominion representative last week if there were any fresh developments in connection with the Gisborne-Napier railway, Mr W. D. Lysnar said: “Everything is in the dark, and I have no word whatever up to the present. There is a great risk that, through this delay, the offer may be withdrawn at any moment. It seems unreasonable that London financiers should be expected to hold something like two millions of capital for an indefinite time. “I feel confident that if the Government attempts to vary the terms, disagreement will result, and the offer will be withdrawn. I consider the London financiers are better judges as to how much should be raised by bonds and how much by shares than the New Zealand Government. This, so far as I am aware, is the only issue of importance outstanding. The Government and indeed the Dominion can lose nothing in this venture, but has everything to gain, as the public blot of having two and a-half million acres of fertile land in this district unconnected with the railway system of the Dominion would be wholly removed within about two or three years from the date when the Government chooses to agree to the London offer.

“it is hardly necessary for me to point out that acceptance of the offer would mean the useful employment of about 2000 men at the expense of English capitalists for the above period. My patience with the Government in this matter is becoming exhausted, and I am terribly disappointed with the delay,” concluded Mr Lysnar. A DIFFERENT VIEW “EVERYTHING POSSIBLE DONE.” (Per United Press Association.) Wellington, June 8. Referring to a published statement by Mr W. D. Lysnar about the present position of negotiations for the completion of the Gisborne-Napier railway by an English syndicate, Mr C. O. Morse, Mayor of Napier, who was leader of the deputation that recently waited, on the Acting-Prime Minister, Sir Alfred Ransom, and the ActingMinister of Railways, the Hon. R._ Masters, informed a reporter in Wellington that he definitely dissociated himself from such opinions, as declared, _ that the deputation had been dissatisfied with what had been done by the Government and the Ministers now in London. On the contrary he was well satisfied that everything possible had been done by the Ministers in looking into a matter involving an expenditure running into over £2,000,000, “Any reasonable man,” said Mr Morse, "necessarily would adopt the attitude of thoroughly investigating an issue particularly if it meant putting into the hands of a private company a portion of the New Zealand Railways.”