THE RAILWAY BOARD.

Waipa Post, Volume XXI, Issue 1242, 13 May 1922, Page 5

THE RAILWAY BOARD.

TE AWAMUTU-PUTARURU. MEETING OF MEMBERS. The first meeting of the recentlyelected Te Awamutu-Putaruru Railway Board was held at the Farmers’ Institute on Thursday afternoon, when there were present: Messrs G. R. McGhie, N. M. Lethbridge, F. C. Daniell, E. J. Darby, E. Allen, J. M. 'Scott and j. W. Garland. Election of Chairman. The secretary took the chair as it was the first meeting of the new (Board, and invited nominations for the position of chairman, j Mr Allen proposed, and Mr Darby seconded, that Mr McGhie be elected chairman. —Carried. Mr McGhie then took the chair, and thanked members for the honour conferred upon him. He welcomed the new members, and trusted that their relations would always be harmonious and directed toward attainment of the progress and development of the district, though he could not hope that their association would be of long duration. The returning officer (Mr J. 'G. Wynyard) presented a formal report of the recent election, which was reppivpfL The Revenue. The secretary reported that the revenue from rates up to 31st March had been £1494 14s lid, while there was outstanding £2374 6s 2d, of which £9l 10s 7d had since been collected.

Agreement With Engineers. Mr Daniell asked that, arising out of the minutes, an explanation be given of the contract entered into with the engineers, this being the only liability the old 'Board had contracted. The chairman said the contract could be divided into three sections, under jvhich the Board agreed to pay, as follows: (a) For estimates, plans, and information necessary to secure order-in-council required by clause 50 of the Act, and to place loan proposal before electors, £3OOO. Should the Board be unable to proceed by reason of failure to carry the loan proposals or of inability to arrange the necessary finance this was to be the sole payment to the engineers, (b) When order-in-council had been obtained and loan proposals were carried and fully detailed, working surveys, plans, specifications, estimates, and other necessary information had been supplied to the satisfaction of the Board, and after the money had been secured, a further sum of £3OOO should be paid, (c) A further sum of £6500 (making a total of £12,500) should be paid to the engineers by the Board when the line had been opened for traffic and the scheme certified to as being complete. It would therefore be seen'that as they had failed to get the order-in-council the contract terminated in 'accordance with clause (a). When called for, there had been twenty applications for the contract, and the (Board thought it had then made the best possible arrangement, preferring the contract system to appointing a resident engineer. The sum of £950 was still owing to the engineers. Payment for the Plans. Messrs Toogood, Jones, and Holmes, the engineering firm in question, wrote asking for payment of account, which they thought should bear them interest while outstanding. Mr Daniell said that the plan as submitted was not in compliance with the conditions of contract. So far as he could ascertain, the only reason the order-in-council was refused was because it had been stated that the Board proposed to get the Government to take over the line, and it certainly was not in the plans and specifications.

Mr Lethbridge moved that the engineers be requested to lodge the plans in the office for inspection and approval Mr Daniell seconded the motion. When the Board received the plans it could point out where they did not comply with the contract. He thought they would be well worth the £3OOO. The position was that the Board had fixed Putaruru and Te Awamutu as the terminal points of the line, and the engineers had chosen the route. But the engineers had failed to ,say what material would be required, the bridges to be built, etc., and, as the Board had no exact information, it wanted a supplementary report providing it. He wanted to see the plans and specifications in complete form, as that was the only asset they had; and he thought they could rightly regard it as an asset, for any proposal for a railway from Te Awamutu to Putaruru would have to be based upon it. The motion was carried.

•It was then decided, on the motion of Mr Daniell, seconded by the chairman, that a progress payment of £l5O be made the engineers on account of the outstanding balance on the contract. Outstanding Rates. The secretary reported that, in accordance with a resolution passed by the old Board, he had instructed the solicitors to take legal proceedings for the recovery of all outstanding rates. This was necessary as it was desirable to get judgment before two years lapsed since the date of striking the rates, otherwise the Board could not recover. By getting judgment the rates would become a charge against the property. To save expense the solicitors desired to sue, where necessary, for the two years’ rates upon one summons. He therefore suggested that the Board should pass a resolution enforcing the ten per cent additional for non-payment by a certain date, that amount representing approximately the legal costs involved by this process of recovery. Mr Allen strongly protested against ten per cent being added. He regarded it as grossly unfair. Mr Daniell said it was desirable to get all rates on record, and as the two-year period was lapsing it was necessary to sue. Probably they would be “ washing up ” their affairs, and it was desirable to get a proper statement of their assets and liabilities. They should collect their rates, pay their liabilities, and then be in a position to deal with anyone who cairie along and wanted the engineers’ plans. The Board would have to remain in existence until its liabilities were squared up. After that they could form a new railway area if they liked. He himself had advised

people to confess judgment if sued. The Board would then be in a position to deal with the matter. They could not get another railway district till this one was dissolved. By doing that they could make way for another board.

Mr Allen: We don’t want anything to do with a railway. Mr Daniell moved that ten per cent be added to all unpaid 19i21-T922 rates.

Mr Lethbridge seconded, the motion.

Mr Allen reiterated his contention that it would be unjust to enforce the ten per cent payment. Two or three years ago they would not have missed the money; that was the hard part about it, as they had not now got the money.

Mr 'Lethbridge said it was hard on the men who had paid. The motion was carried, and it was then further resolved, on the motion of Messrs Allen and Darby, that the ten per cent be remitted to ratepayers who had paid the first year’s rates and who paid the 1921-1922 rates by 30th June. General Business. The chairman said that that was the only way they could get a “ clean up ” —get a proper statement of their assets and liabilities. Mr Allen presumed that when the liabilities had been met they would Wind up, and then those who wanted a railway could go about forming a new district with fresh boundaries.

Mr Daniell said that those objecting to the boundaries should petition the Minister, who would consider the matter.

The question of payment of members’ expenses was deferred till the old members had supplied the necessary certificate. The Board decided it had no power to remit the rates, as applied for by a soldier-settler.

Accounts amounting to £45 19s Id were passed for payment. The next meeting was fixed for 16th June, at '2.30 p.m. Plea for the Railway.

Mr Darby said he was strongly in favour of constructing the line. He had heard it said that the Government contemplated constructing a light line from 'Putaruru to Arapuni in order to rail in material for the hydro-electric works there. The distance was nine miles, and be thought they should undertake that as part of the main line. If they did they should be able to command as a subsidy the £50,000 which the 'Government had allowed in the estimates as the cost of transport. If the Board was unanimous and put that line in it would be a payable proposition. As they all knew, the construction of the Arapuni dam would create a great inland lake, 18 miles long and a third of a mile wide. Through this agency very fine land would be opened. It had very heavy timber on it, and it was all good, millable stuff. They should lose no time, as the Government had an enormous amount of work to do at Arapuni, and would need the line for transport. If they went in for the Putaruru-Arapuni section they would get a line which would be constructed practically out of Government subsidy and would therefore not need any assistance by way of rates, and would be a benefit to the whole area. Having .this payable proposition, they could then go for a loan for the Ara-puni-Te Awamutu section of twentyfive miles. He appealed for their support in advancing the project. He moved that when the boundaries are amended the Board undertake the construction of a railway from Te Awamutu to Putaruru.

Mr Daniell seconded the motion. There was not the faintest hope of putting the line through as the Board was at present constituted. They could if they desired re-constitute the area, but going on as at present they were merely blocking any other proposition. They should set the Board’s affairs into shape, and they would be then in a position to conduct negotiations.

The motion was carried, and the meeting terminated.