POLITICAL NEWS.

Taranaki Herald, Volume XLIV, Issue 10199, 3 January 1895, Page 2

POLITICAL NEWS.

— ' — «. PROPOSED PURCHASE OF MANAWATU RAILWAY. [per prlss association.] Wellington, January 3. — The New Zealand Times states that the Government intends to buy the Manawatu line, and that tho documenus are now being prepared. The Times also adds that there is no difficulty about the necessary finance, the only objection likely to arise will be from the local bodies, who draw a revenue from taxes on the line. The terms are not mentioned. Under contract between the Manawatu Railway Co and the Government the latter now have the right of purchase of the line and everything connected with it on giving twelve months' notice. The price is to be ascertained by arbitration in the usual way, and they have to be guided by cost of construction of similiar lines at the time the railway was built. An allowance for depreciation is provided for, and to the sum thua 7 ifixed 5 per cent has to be added. All endowments are outside the contract and if tho Government desire to take these tco, special arrangements must be made. The company still holds over a hundred thousand acres of land including valuable reclamation at- the station, part of which only goes with the buildings.