TAUPO TIMBER LINE.

Waikato Times, Issue 12185, 21 September 1911, Page 5

TAUPO TIMBER LINE.

SELECT COMMITTEE SITTING. SITTING.

(Per Press Association).

WELLINGTON, Thursday. The Parliamentary select committee which was appointed last week to inuoiirei into the petition of the Taupo Totara Timber Co., for power to extend its railway line and purchase a large area of native land, met today.

The first witness was F. J. Daiziell, who said that an Order-in-Council was not necessary for the purchase of the native lands or for the extension of the line, but be recognised that nothing could be done until the fullest publicity had been given to the proposals. The company was formed in 1900 and its capita] 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 profit was n u w being secured. There were. ,about 120,000,000 feet of milling- timber available when the company starts working, although the estimates showed between four and five hundred million. The company h a d paid £lO.000 in railway freight and £6,000 in rates and taxes during the past six 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 any one else shouldering the company's Lass. It must meet that itself. What it was hoped to do was to this railway of permanent value.

Continuing his evidence Mr DaLziell said that the company had arrived at the conclusion that any proposal which involved financing by the Government was not likely to be acceirbalile in the near future. The line would not be sufficient to tempt capitalists to invest money, hut money would l»e available if the scheme was associated with a proposal for the purchase and development of a sufficient area of land served by the line. The company owned 50,0f10 acres of freehold which could be devoted to the purpose, and it was desired to acquire 300,000 acres out ol the 800,000 in the district. The line would serve between 1,500,000 and 2,0110,000 acres. Nearly the whole of the land was unoccupied and nearly all was excellently adapted* for cultivation. The company was not asMng any concession from the Crown nor for any sacrifice by the natives, the price to be paid beimr the present value. Witness also dealt with a number of objections which bad Veen raised and contended that so far from the proposal being injurious to the State it would be hrigihly profitable in every way.