PARLIAMENTARY SELECT COMMITTEE.

Stratford Evening Post, Volume XXXI, Issue 31, 21 September 1911, Page 6

PARLIAMENTARY SELECT COMMITTEE.

iPer Pi ess Association.) Wellington, September 21.' The Parliamentary Select Committee which was ; op.anted last week to inquire into the petition of the Taupo Totara Timber Co. for power to,extend its railway lino and to purchase a largo area of ‘native land met to lay. The first witness was F. G. i vi/idl, who said an Order-in-Council was not necessary for the purchase of native lands or for the extension of the line, but he recognised that nothing could he done until the fullest publication had been given to the proposals. The company was formed in 1930 and its capital consisted of £341,780. There was an accumulation of. .preferential dividends amounting to £50,000. The company had always paid interest on debenture loans but had paid no dividends. During the first two years a substantial loss was made but a profit was now being secured. There! were about 120,000,000 foot of milling timber available when the company' started ’working although estimates showed hot ween four and five hundred millions. The company' had paid £IO,OOO in railway freights, and £6OOO in rates and taxes during tlio past sir; years. His object in stating the financial position was not to ask for assistance but to suggest that a company' working on lines of such magnitude had a claim to consideration. Witness maintained that there could lie no reason at all for the State or anyone else shouldering tho company’s loss—it must meet that itself. What it. was hoped to do was to make this railway of permanent value. The companyhad arrived at the conclusion that any proposal which involved financing by tho Government was not likely to be acceptable. In the near future the lino would not. be sufficient to tempt capitalists to invest money, but money would bo available if the scheme was associated with tho proposal for the purchase and development of a sufficient area of land served by the line. Tho company owned.so,ooo acres freehold which could bo devoted to lhe purpose and it was desired to acquire 200.000 out of the 800,000 in tho district. The lino would serve between 150.000 and two million acres. Nearly the whole of the laud was unoccupied and nearly, all was exceptionally adapted for cultivation. The company was not asking any' concession from the Crown, nor for any sacrifice by tho natives, the price to be paid being the present value. Witness also dealt with a number of objections which bad been raised and contended that so far from the proposal being injurious to the State it would be highly profitable in every way.