The Timaru Herald. TUESDAY, NOVEMBER 18, 1902.

Timaru Herald, Volume LXXVII, Issue 11917, 18 November 1902, Page 2

The Timaru Herald. TUESDAY, NOVEMBER 18, 1902.

Sir Joseph Ward appears to bave had a very good reception at Winton last night when he addressed his constituents. In another column we publish what purports to be an abstract of the speech, but. it is for the most part dry bones, and conveys very little idea of what Sir Joseph Ward said. The speech was chiefly on the lines of the one which he recently delivered in Auckland, and that was a clever piece of special pleading on behalf of the Government.' There is one rather curious remark which he is reported to have made at Winton. He was speaking of the financial position, and strongly denied that it was insecure, adding that " he for one would not have continued to hold office had matters in that respect, not been all right." That appears to us fo be a most extraordinary statement for a. Minister to make. It meant that as long as things went prosperously, and the credit and revenue of the colony were well maintained, Sir Joseph Ward would stick to his post, but that lie would desert it if hard times came and the State ship was" in difficulties. It strikes us as being a rather pusilanimous avowal on the part of a prominent public man, and we are inclined to think that the reporter did Sir Joseph an injustice. However, it may be addded with confidence that when the hard times come, and the colony begins to feel the effects of the present system of extravagance. Sir Joseph Ward and those with -whom he is politically associated will not be allowed the option of continuing in office or of going into Opposition. They will be ousted from their positions to make way for less unscrupulous leaders and more trustworthy and efficient administrators. The bald abstract sup2>lied by the Press Association gives very little room for criticism. He spoke of the Midland Railway, but we are not told what he said. He defended the Government system of land settlement, but we are not enlightened as to the arguments which he used. He, however, touched upon one subject which gives us a peg upon which to hang a few remarks. Our readers are aware that- the Government, recently bought out the Lake Wakatipu Steam Service Company. There has been a. good deal of hostile comment as to the te;ms oi the bargain, most of the shareholders, and a large section of the outside public, having formed the opinion that the Government, having forced the company into a tight place, took advantage of the position and practically compelled the com--1 pany to sell their property for about half the sum which it would have realised in the open market if the Government had not announced their determination to compete with the company for the lake traffic. Sir Joseph Ward of course defended the action of the Government, and opinions will differ as to whether he made out a good case or not. This is how be put the matter to his Winton audience :—" He felt that the means of traffic on Lake Wakatipu should be greatly improved, not only for the development oi the tourist traffic, but for the benefit of the settlers concerned. As the present steamers were deemed inadequate to cope with the public demands, the Government intended to put an up-to-date steamer on the lake." He went on to say that tbe company need not have taken the Government's olfer unless they pleased; and that in case of a refusal the Government would have been justified in establishing an independent service on behalf of the colony. Xo doubt- they coitld legally have done so under Parliamentary sanction, but that admission does not cover the whole ground of the controversy. The case of the company has been thus stated : They acquired the business from a former company, and shortly afterwards the £1 shares rose to a premium and realised 255. As soon as the question of the State putting on steamers was. mooted by the Government in Parliament, the shares commenced to decline, aud ■ in addition to that the Government announcement practically compelled the company to lower the fares. Xot liking the position, and fearing that worse might be expected as the outcome of the impending State competition, the company offered to sell cut to the Government for £30,000. Wc do not. know the whole of the data on which that sum was fixed, but the amount appeared exorbitant to the Government, and thev offered £15.000, which was the sum finally accepted. It is impossible without full information io say what- was the true value of the piopeity; but it seems to us that in the case of the State threatening competition with a private erne: prise such as the company were engaged in, the direct consequence being the serious injury of the business, the State should be prepared to purchase at a price based on the value of the property as a going concern immediately before the threat of competition. That price would include not only the value of the assests but the value of the goodwill, supposing it to have a value. Arbitration would be the fairest way of arriving at the sum to be paid. The actual assets of this company —three steamers, wharves, and general plant—were worth £20.000. or thereabouts, and

to that must be added the goodwill, which must be regarded as of substantial value with shares ut a premium of ss. fjir Joseph Ward made a good bargain for the colony, but we cannot avoid coming to the conclusion that the company were deprived of a considerable part of the value of their property by the intervention of the Government. We cannot say that wc are sati.-lied that justice has been done. but we should like to see ihe full report of what Sir Joseph Ward said on the subject at Winton. People in South Canterbury are not much interested in ihe affairs of the Wakatipu Steam Service Company, but there is a great principle involved in the case which wc have briefly discussed. State interference with private enterprise is generally bad. but there may be exceptional cases, and when tlrey arise care should be taken that owners receive full value for their property.