OTAGO CENTRAL RAILWAY.

Ashburton Guardian, Volume VII, Issue 1845, 19 May 1888, Page 4

OTAGO CENTRAL RAILWAY.

After all the vicis-itudes through which it has passed the Otago Central Railway seems at last likely to become au fait accompli at a reasonably early date. It will be remembered that a Bill authorising the construction of the uncompleted portion by means of the land grant system passed the House of of Representatives last session, but was thrown out m the Council, Sir Frederick Whitaker, however, promising the pro moter of the Bill, Mr Pyke, that if he could succeed m obtaining a syndicate or company ready to enter into a con tract, he, Sir Frederick, would prepare \ and support a Bill to ratify a contract v?ith such syndicate. Mr Pyke has succeeded m his part of the work, and Sir Frederick has fulfilled his promise by drafting the necessary Bill which is now under the. consideration of Parliament. The Bill itself is contained Within the compass of 26 short clauses to which the contract is annexed, the former authorising the Governor m the name of the Queen to enter into such contract with the syndicate (termed the ** contractors "), or any person or company to whom the contract may be assigned. The names of the syndicate are Messrs James Hazlett, William Lawrence Simpson, Montague C. L. Pym, John Mitchell, Thomas Brown, and Alexander Burt, all of LViinedin, who upon their part undertake the construction of the railway from .Middlemarch to Lakes Hawea and "Wanaka, and are to be handed over that portion of the line between its junction with the Dunedin-Invercargill railway and Middlemarch, upon payment to the Queen of the value (to be fixed by arbitration) of the work already dove and of the rolling-stock, plant, tools, materials, buildings, etc. The estimated cost for the purposes of the contract of the works to be constructed by the Company is set down at £850,000 and they are to be granted lands of the Crown to the value of 33 per cent of this amount, the land being estimated at its market value at the date of the commencement of the construction of the railway without regard to any prospective value conferred by such construction . Within six months of the date of the contract the contractors are to place a deposit of £5000 m the hands of the Government which is to be forfeited if the contract conditions are not complied with, but is to be returned so soon as permanent works to the value of £10,000 have been executi d. The contractors are also bound under penalty of annulment of the whole contract to expend on the railway works a minimum sum of £1 50,000 within three years from date of contract, and m such manner as to enable one complete section to be opened for traffic. In no case is the land granted to the Company to be reckoned as of a less value than 10s per acre. Any land not required for the purposes of the railway may with the Governor's consent be sold by the comryany by public auction or may be leased for terms not exceeding 21 yearSj an d the proceeds of sales are t^ form part o f the capital fund for tb' . construc tion of the line, and all rep' tS are to form part o f the income of the ra .;i way# All necessary provj«- olong for the mok i n g o f bylaws fo r^ tne re g U i a tion of the traffic, and * 1P .g of tolls, rates, fees, rents, etc., are pr . _t out as also for the issuing by the company of debentures for such sum as may be necessary to complete the construction of the line, the Government of the colony being exempt from all liability as regards either principal or interest. Power is reserved to the Queen to purchase the railway at any time within ten years from the date of its being opened for traffic upon twelve months' notice, at a price to be agreed upon or to be fixed by arbitration subject to the provisions of the following clauses, viz : In determining the price to be paid to the contractors, the arbitrators shall observe and abide by the following provisions, vj z : — (l) They shall not award any compensation m respect of the Crown lands which shall have been acquired gratuitously for the lino of the said railway or for stations or other purposes connected there with. — (2) They shall not award any sum for goodwill. — (3) The valuations shall be on the basis of the estimated cost, at the time when the railway is taken over, of constructing a similar line, and of purchasing the plant and rolling stock belonging thereto, and erecting the buildings and other works connected therewith, and deducting therefrom a fair jillowarice for wear and tear and depreciation. — 4.4. If the power of purchase be exercised after tea years and before fourteen years from the date when the whole line is open for traffic, there shall be added to the amouut of compensation so to bo fixed as aforesaid 5 per centum on the said amount, and if such power bo exercised after fourteen years and before twenty one years there shall m like manner be added 10 per centum. — 45. The compensation so fixed, with the percentage added thereto as aforesaid, shall be accepted by the contractors m full for all claims and demands for the purchase of the said railway and rolling-stock, plant, works, implements, and buildings, and all rights, powers, and privileges m possession of the contractors m respect thereof. —46. The said railway and appurtenances shall not be purchased unless and until the General Assembly shall have passed an Act authorising the purchase thereof. — 47. The purchase-money so to be fixed as aforesaid shall be paid out of money to be appropriated by the General Assembly for that purpose. — 48. If at the time of purchase the said railway, or any part thereof, is charged with or liable as a security for any money borrowed by the contractors, and such moneys shall bo less than the purchasing price go fixed as aforesaid, the amount to be paid to the contractors shall be the difference between the money so charged and the purchasing price. — 49. If the money charged shall be more than the purchasing price the contractors shall pay the Queen the difference between the purchasing price and the money charged. — 50. If the money charged or any part thereof shall bear interest at a higher rate than 5 per centum per annum the arbitrators shall allow a deduction from the .purchase money m respect of the interest payable m excess of 5 per centum. On a careful perusal of the Bill (of which the foregoing are the principal features), it appears to us to have been cast upon very fair lines and to provide for all possible contingencies, and we imagine that it will probably pass with very little I alteration. If so, Mr Pyke may cer- J tainly be congratulated upon the success | which he will have achieved and? wljicb he. hag mos{; certainly degeryed, *