PARLIAMENTARY SELECT COMMITTEE.

Stratford Evening Post, Volume XXXI, Issue 32, 22 September 1911, Page 6

PARLIAMENTARY SELECT COMMITTEE.

iPcr Press Association.) Wellington, September 21. The Parliamentary Select Committee which was appointed last week to inquire into the petition of the Taupo Totara Timber Co. for power to extend its railway lino and to purchose a large area of native land met to day. The first witness was V. Gr. P-..-Jxiell, who said an Order-iti-Council was not necessary for the purchase of native lands or for the extension of the line, but he recognised that nothing could ..fullest,,publication had been given to the proposals. The company' was formed in 1900 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 wopo about 120,000,000 feet of milling 'timber available when the company ■started , working although estimates showed between four and five hundred millions. The company had paid £IO,OOO in railway freights and £6OOO in rates and taxes during the past sh; 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 be no reason at all for the State or anyone else shouldering the company’s loss—it must meet that itself. What it. was hoped to do was to make this railway of permanent value. The company had arrived at the conclusion that any proposal which involved financing by the Government was riot likely to bo 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 the proposal for the purchase and development of a sufficient area of land served by the line. The company owned 50,000 acres freehold which could be devoted to the purpose and it was desired to acquire 200.000 out of the 800,000 in the district. The lino would serve between 150.000 and two million acres. Nearly the whole of the land 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 the natives, the price to be paid being the present value. Witness also dealt with a number of objections which had been raised and contended that so far from the proposal being injurious to the State it would be highly profitable in every way.