KAWHIA-RAGLAN RAILWAY

Waikato Argus, Volume XXXVI, Issue 5668, 23 July 1914, Page 2

KAWHIA-RAGLAN RAILWAY

MEETING OF COMMITTEE. A meeting of the committee formed for the promotion of the railway line from Frankton Junction to Kawhia and Raglan was held this morning in Mr I\ E. Smith's office, Victoria street, Hamilton. There were present Messrs F. E. Smith, chairman, Bend, Clark, Jolly and Darke.

The chairman asid they had met to hear the views of their solicitor on the Act under which the railway was to be undertaken. Mr Northeroft said he would have the particulars re-ingrossed. He then read his opinion, as follows;

"I have considered the various statutes which give power to local bodies to construct railways. The Railway Construction Act of 1008 was designed to give power to companies to construct railways under agreement with the Government. An important development of the Act took place hist year, when an amendment was passed which gave to a local authority, or to two or more of such bodies, the right to exercise the powers given to companies by the principal Act. The Act of 1913 went further still in that it made applicable to borrowing of moneys for railway purposes the provisions of the Local Bodies' Loans Act, 1913, which provides, among other things, for State guaranteed loans. The financial aspect of the matter is, of course, the most important, and the one 1 will deal with first.

■gUnder Hie Railways Construction Act of 1908, local bodies undertaking railway construction may mortgage the railway to raise the necessary capital for its construction, and may issue mortgage debentures. These debentures must be repaid within 25 years, and may not carry interest at a greater rate than 6 per cent. For the purpose of guaranteeing to the local bodies a fund from which to pay this interest and principal, certain rating areas called in the Act railway districts, may be created. In respect to companies, this district may not extend for more than 15 miles on each side of the radway, but with local bodies tflis restriction does not prevail.

The local bodies, therefore, in my opinion, could declare the whole of its district a railway district, similarly witli more than one, or, in the alternative, the whole of one local district and a portion of another could be constituted a railway district. This is done by notification in one or more newspapers circulating in the district, setting out the relative proportion of the rate which is to be struck, to be borne by the different classes. The council receiving information under the Act is required to notify in writing all the persons affected, forwarding also a statement as to the classification within which each person's land falls. Any person claiming to be injuriously affected by the classification may object by using the machinery provided for objection under the Rating Act, 1908. ! Within 60 days from the submission of the information to the county council or borough Council a poll of the ratepayers and owners of the property within I the district ahull be taken and if

the majority representing at least

two-thirds in number and value consent to the establishment of the district then the distiict becomes established. The district having been established the local bodies maj strike a special rate within the district and apply the proceeds up to F> per cent, in the making good ot any shortcoming of the railway in paying principal and interest. The special rate must be raised in accordance with the provisions of the Local Bodies Loan Act, 1913, The machinery provided for the construction by local bodies of railways is also contained in the Railways Construction Act, 1908, as recently amended and commences by giving power to the Government to enter into a contract with one or more local bodies lor the construction of a line of railway which is to become the property of the Crown on its completion or at the termination of a period of years. This contract must also contain various general terms for the safeguarding of the Government. Notices must be advertised ef the fact of the plan and book having been deposited and a copy of the notice sent to each one of the occupiers whose name is in the book of reference.

All persona whose land is to be taken for railway purposes may claim compensation in manner prescribed by the Public Works Act, 1908, ami upon the order of the Court, under that Act, being registeied, the land becomes available for the purposes of the railway free , from all mortgages. In my opinion the machinery referred to fur the establishment of a railway district and for railway purposes does not preclude any one or j more local bodies from applying i generally the provisions of the j Local Bodies Loans Act for the purposes of railway construction. In referring to the requisition of I a special loan for a special area | Mr Northcroft said the local bodies j would require a big majority to establish a railway district. Pastor Clark; You spoke of two- I thirds of the value. Supposing we got two-thirds of the value, and could not get two-thirds of the people, we would still be defeated. Mr Northcroft: Yes.

Replying to another question Mr Northcroft said they had two Actß somewhat in conflict. The Act of 1913 amended that of 1908, and the local bodies might provide a special rating area the same as thev did for drain age works. With regard to the occupancy of lands, Pastor Clark asked if there were any regulations for compensation,

Mr Northcroft said no. If a person wdiose land they were going to occupy considered that they would damage it, they were compelled to purchase.

Pastor Clark: Is there any rule as to recovering rates'.' Mr Northcroft: You must take him before the Court under the Publie Works Act, and the Court wili decide the proper value. The chairman thanked Mr Northcroft for his lucid and explanatory report. The railway would increase the value of the Mperangi Block, and at the proper time they should make overtures to the Government, who should iii"et them either by direct contribution or a guarantee to a certain extent each year towards the loans.

Mr Northcroft pointed out that the Government lands, of which then; were 12 miles out of 40, would not be rated, theoretically. The Government was asked to guarantee the loan and must have a quid pro quo. Mr Bond pointed out that the land would he immediately rateable when it was disposed of. He did not think they need worry about that. The company came into immediate occupation. The chairman said it must reflect on the credit and development of the country, and if the ratepayers wero going to accept the responsibility now, the Government should assist them to soire extent. Pastor Clark: The chief advantage of that would be that the Government's favouring smile would cheer n crowd of people. Mr Northcroft: If they can see people in their own community building railways it is going to relieve them of a lot of harassment. Pastor Clark: The statement is most implicit. We have to do with the law of the land. Questioned by the chairman about the rates affecting native lands, Mr Northcroft quoted the Railways Construction Act. Land partitioned by the Court wa no longer under native custom. It was capable of being dealt with as European land. The present machinery was that if they did not get their rates paid, an adjournment was given with permission of the Government, and it became a charge on the land. Pastor Clark: Call again. Mr Northcroft, continuing, said

j he did not see anything in the Act to prevent the boroughs of Hamilton and Frankton being made part of the district. The chairman moved that Mr Northcroft report be received with thanks for the careful manner in i which he had gone into the matter. Mr Bond seconded and the motion was carried. Mr Bond called attention to the fact that there were differences of opinion about the route. There were reports that the surveyors of Maeorangi had been instructed to look out for evidence of the railway route, and that they had reported adversely to the proposition. Whether that was true or not, before the committee did much they munt satisfy I themselves on that point The chairman emphasised the necessity of utilising the present session of Parliament. It was agreed to involve the services of a competent engineer.