MANAWATU RAILWAY AND THE GOVERNMENT.

Dominion, Volume 1, Issue 41, 12 November 1907, Page 3

MANAWATU RAILWAY AND THE GOVERNMENT.

Sir,—To those who arc of opinion that nil tho railways in the, Dominion should belong to tho State, the announcement of tho determination of tho Government to purchase tho Mamnvatu lino will ho particularly gratifying. That' it will be a profitable transaction for the country at tho figure your article named—£l,oo6,ooo—tho figures of the balance-sheet abundantly bear out. But it does not follow that 525. 6d. per share is all at that price that shareholders would get for thoir shares. A close scrutiny of the balance-sheet will disclose assets to allow of even a larger payment than 525. per share. There arc, however, only two points that I would lileo to direct attention to, namely, the prico formerly offered by tho Government, and tho profit-earning 'capacity of the line. Your leader states: "It is true that some years ago the late' Mr. Seddon offered to purchaso. tlie railway on the basis of 325. Gd. per share, but the price was so much below the true value that tho offer was incontinently declined by tho majority of tho shareholders." As a matter of fact this statement is not , correct. In tho first placo Mr. Seddon's' offer was not 325. 6c1., but 305.; secondly, tho directors wanted 325". 6d.; and thirdly, tho question was not submitted to the shareholders at all. Ono director had conducted the negotiations and desired to conclude tho sale on Mr. Seddon's terms, 'and it is to tho credit of tho other directors that they prevented the slaughtering sale of the company's property. It is matter for argument, based on speculation, whether tho line has, as you observe, "almost reached the limit of its profit-yield-ing capacity." If this wero so in respect to tho Manawatu line, then it would be as equally and as correctly applicable to all railway lines in this country, and the least sanguine can hardly ontertain so pessimistic a view of 'the Dominion's development. What will strike tho average business man with respect to the Manawatu line is this. The Main Trunk is ncari'ng completion. The through traffic to Wellington will become yearly greater, and tho profits of the Manawatu lino, will proportionately increase. The divergence of traffic by tho Government will no more affect tho Company's line in tho future- than it has dono in tho past, and every year for years past tho gross earnings of the Company's proporty .have shown marked increases. Last year they exceeded those of tho previous year by twelve thousand pounds. All this goes to demonstrate that shareholders have nothing to fear from competition or divergence of traffic. Tho intrinsic value, of the line will bo found to approach 60s. per share, and the goodwill of the Company's business which shareholders must loso will not be-taken into account. But. at whatever prico the lino is acquired, however great tho profits to shareholders in the division, tho interests of tho country render it imperative that this now profitable property shoujd be under ■ tho control of tho State; and the only regret the community may express is that tho determination of the Government was not made: ten years ago.—l am, etc., J. D. SIEVWRIGHT) November 9, 1907. THE NATIONAL MUSEUM AND SIR JAMES HECTOR. v Sir,—lt is somewhat strange thatthoro is not now. living any. one of thoso who camo from Dunedin to Wellington when the Geological Survey and Colonial Museum were established'here. They were:'W. Bayer, Museum assistant, who (lied many years ago; ,T. Buchanan, botanist and artist, who died in Dunedin' a few years ago; W. Skey, the chemist), who died a'few years back; W. R. B. Gore} the curator and meteorological observer,- who "died no', long ago; and, lastly. Sir James Hector. What worthy, clever, and retiring men were they. It will be many, years ere others can take thoir nlace. Eew know the hardships the chief who has just gone on his last long journey, and tho, man Bayer, who was his sole companion in. many a rough trip, underwent. Ho\v easy and with what luxuries the nrescnt work is carried on, and at what an enormous expense!— Yours, etc.,! ONE WHO KNEW THEM.