RAILWAY CONSTRUCTION

Dunstan Times, Issue 496, 20 October 1871, Page 5 (Supplement)

RAILWAY CONSTRUCTION

Much interest having been evinced as to the exact nature of the contracts entered into on behalf of the New Zealand Government for the construction of the proposed railways, we give the official statement thereon ; The contracts entered into by Messrs Brogden and Co. are two in number, and both have many stipulations in common, but differ as to the amounts to be expended in railways, the amount of the guarantee of dividend, the application |of profits, and the terms of purchase. The stipulations that are common to each, are that the Government are at their absolute discretion to select the lines of railway, and may regard the requirements of ihe Colony, irrespective of the remunerative character of the railway. When a railway has been decided on, the Government are to have the necessary surveys, <fcc., prepared, and are to determine the order and course, and the terms of constructing the railway, as also the specification ol works and material. Eych railway is to have a single wire telegraph with the necessary apparatus. When the probable cost of a railway is ascertained, the Government are to divide it into sec tions of about ten miles each, and the time within each section is to be completed is to be arranged between the Government and the contractors or settled by arbitration; and of this prime cost 5 per cent there m is to be added for the agreed profits of the contractors. The Government has the sole power of altering any agreed line of railway. The Government engineer at the commencement of each railway and at the beginning of each calendar month, is to estimate the probable expenditure in New Zealand during the next three months, and the contractors are from time to time to deposit wi hj the Colonial Treasurer enough money to meet the same, and payments are to be made therefrom, according to the certificates of the Government engineer. The Government has powci to declare any completed portion of a line open for traffic, and the contractors are at their own cost to maintain the railway for twelve months. All necessary plant is to be subjected lo the approval of the Government engineer in England. Proper books of revenue and account, subject to Government supervision, are to be kept by the contractors, who collect all tolls, &c. The contractors are to maintain the railways in thorough efficient working order, and not run less than two trains each way daily, unless the Government otherwise direct, and such further number of trains as the Govern ment may require, charging only fibres and rates within limits to be fixed by the Governor in Council. The question as to running more than two trains a day may be referred, and as may also the question of rates and fares when the Government have to pay nothing under their guarantee The trains are to be run at a speed including stoppages of not less than ten miles an hour on railways costing under 30007. a mile, fifteen miles an hour on those costing 40007 a mile, and twenty miles an hour on those costing over that amount, except where the Government consider the gradients or curves do not justify so high a rate of speed. The members of the General Assembly and Provincial Councils are to be convoyed in the ordinary trains at 25 per cent below the ordinary fares and rates, and in the event of war or civil commotion, the whole resources ot the railways are tobe placed at the disposal of the Governme-’t at cost price. Power is given to the Government to enlarge existing lines of telegraph, and it may use the same without charge, so long as railway traffic be not interfered with. In case of the bankruptcy of the contractors or theirfailing to carry out their contracts, the Government has power to take possession of the lines. Upon determination of the contract from the latter cause, the provisions of the con tract with respect to guarantee of dividend division of profits and purchase are only to apply to the section or sections of railway then completed and opened for traffic and not taken possession of and the plant belonging thereto; and in the case of bankruptcy the contractors’ assignees or trustees may within twelve months repay to the Governments any moneys expended, and enter into proper contracts for the completion of the lines. No contract is to be sublet without the approval of the Government, and if assigned to a company, the company has to enter into a formal contract with the Government for the due observance o*’ the same. The Government are to have the right to appoint an ex ofjicio director on the board of vhe company, both in England and in the Colony, with a right to vote at all proceedings of the Board, and only such charges for management and direction are to be allowed as the Government shall approve of In the

event of the Government purchasing the railways, they are to pay for the I same in England within twelve months after the price is agreed upon. The special provisions are thus stated. Of contract No. 1 . Be ore the 21st of June, 1879, the Government are to entrust to the contractors the making and providing of railways and plant to cost 4,000,0007., and the contractors are to make and provide the same. The interest on capital employed during construction of a railway and in providing plant, is to be estimated and added to the settled cost, The moneys deposited with the Colonial Treasurer for expenditurein New Zealand are not to bear interest. The police and other forces, when proceeding on duty, and the public mails, are to be carried by the ordinary trains at 25 per cent, below ordinary fares and rales. Payment for lines and plant is to be made in Government debentures, having thirty years to run with interest at five per cent. Government are to grant to the contractors such land, and so situate as the Government think fit, at the rate of three-quarters of an acre per 17. of the cost of the railways and plant—one-filth of which land need be suitable for settlement. Such portions of this fifth as may be required for immigrants are to bo granted as required, and the contractors are to be allowed the use of the residue as long as is convenient. From the opening of a railway till the expiration of forty years, if no purchase is effected in the meantime, the Government are to pay the contractors such a sum as with the receipts of the railways, after deducting all expenses, will give a dividend of 5| per cent, per annum on the total cost of railways and plant. When such receipts are sufficient to pay a divident exceeding 8 per cent., the excess is to be applied to recoup any advance made by the Government under their guarantee exceeding 5 per cent., with the interest at 5|- per cent, and subject thereby, is to be divided equally betweeu the Government and the contractors. At the expiration of forty years, and at any time previous by giving twelve months the Government are to purchase a line or section thereof, deducting therefrom the amount of any deterioration for wear and tear, etc. Within ten years after the commencement of any railway the contractors are to land not less than 10,000 European immigrants, to be ap- 1 proved of by a Government officer before sailing from Europe,iunot less than th“ following proportions : First year 500; second year, 750; third year-, 1 |: 0(); fourth year, 1000; fifth year, 1000 ; sixth year, 1000 ; seventh year, 1250 ; eigh hj year, 1250; ninth year, 1250 ; tenth year, 1000. The Government to pay for each immigrant so landed, whether or not employe;! on the railway, 1/. in the month of December in each year for ten years from the time when each immigrant landed, unless in case of death or ceasing to reside iu the colony. ’To encourage improvements the Government are to guarantee mortgage bonds with interest not exceeding five per cent., for not exceeding ten years, to an amount not exceeding one half of the moneys expended to the satisfaction of the Government officers, in such improvements as may be approved by the Government, such bonds are to exceed 500,0007. The Government to have all the mortgagee’s rights to recoup themselves for any moneys paid under such guarantee. The principal features of No. 2 Contract are these : The Government are, with all convenient despatch, to entrust to the contractors the making and providing railways to cost 500,007. and during construction pay interest at the rate ot 51, per cent on all moneys expended by the contractors. As in the other contract military, A-c., when on duty, and mails, are to be be carried free. The railways are to be demised to the contractors for ninety nine years at the nominal rental of one shilling per mile, at the end of which term they become the property of the Colony. The Government guarantee is 5i per cent for thirty five years, unless the lines are purchased earlier; but yvhen the receipts are above 5| per cent., the excess is to be first applied in recouping to the Government any sums paid for working expense, with interest at 5| per cent, and the balance divided a quarter to the Government, and three quarters to the contractors, until the Government are recouped all advances under their guarantee, with a like interest thereon yvhen the contractors are to take all the profits. The Government can purchase any line or section thereof before the expiration of tyventy ye irs, by giving twelve months’ notice, at cost price, after-deducting for wear and tear. Mr. Mackrell who prepared the agreements for the General Government, shows in what manner the Colony obtains advantages which the Government of India failed to obtain. In India the same contractors select their oyvn lines of railway, and of course on ly those yvhich arc likely +o be most remunerative to them ; they are underno restrictions as regards cost, anysirm they expend being alloyved by Government ; they pass their capital into tire Indian treasury as fast as they think fit, and the Government pay 5 percent interest from +he time of such payment, paying out the moneys as yvanted, but continuing to pay interest ; the railways are granted to them for ninety nine years, and the Government have the right to buy them up oxr'y at the expiration of the first

twenty five or fifty years, when they have to repay to the companies the market price of all their capital, according to the last three yearn average price of the stock or shares, taking over all their property ; and lastly the companies have the privilege of relinquishing their undertaking at any time during the ninety-nine years, in which case the Government have to pay their capital. The New Zealand Government have the absolute right of selection of the lines of railway, and may choose those best calculated to develop the resources of the colony irrespective of the question of immediate profit, nevertheless very properly taking upon themselves any risk of the railways not paying their working expenses whereas the Indian Government have no such advantage. The cost of the railways in New Zealand is limited to the net prime cost, with a simple addition of 5 per cent only for contractors profits, whereas there is really no limitation as to cost in the Indian contracts. The New Zealand Government may alter the lines during construction in any way that they may think fit, which is a privilege not accorded the Government in the case of the Indian railways. The New Zealand Government may purchase at a y time they think fit, under arrangement No. 1, within forty years, and under arrangement No. 2, within twenty years any of the railways, or any sections of any of the railways opened for traffic with the plant belonging thereto, and at the bare cost of the same, with 5 per cent only for contractor’s profits, and with deductions in respect of any deterioration in value, whereas the Indian Government can only buy up the whole of a railway at certain stated periods of twenty-five and fifty years, and have then to p y the full va'ue of all the stock or shares of the company according to the average of the three proceeding years, which, in the case of railways selec ed by promoters, will probably be at that distance of time at a very considerable premium. Moreover, the railway companies can at any time relinquish their undertakings and call npon the Government to repay their capital. Writers to the Brisbane Courier state ths.t the revelation concerning the threatened burning of the world by Snmmerfield (published in a local paper) is a hoax—being a sensation story written by a person named William H. Rhodes, for the Golden City, a San Francisco newspaper—and that names of persons and places were only inserted to give colour to the tale. Mr Rhodes was at one time editor of the True Californian , and is now engaged in practice as a solicitor. His brother, Mr. R H Rhodes, has lately arrived at Brisbane from California, and vouches for the truth of the above statement. Writing of the little war that America is carrying on at the distant Corea, the New York Tribune asks—“jj.ave we killed Coroans enough to avenge the manes of the slaughtered American sailors! If so let us haul off and say no more about it. But if Minister Low’s instructions impel him to the capital, which is 70 miles inland, the difficulties of the way and the brutality of this bombshell diplomacy may well give ns pause. When the Fijians ate our shipwrecked sailors we exacted a penalty in coin of the cannible islanders, and took a mortgage on their kingdom until it was paid. But the large-statured, brave, and warlike Coieans will never come to such terms, and whether the violent blows which the American expedition is now hammering on the Corean sconce be meant in vengence for the past or civilisation for the future, we shall find the contest long, expensive, and resultless They can afford to part with many thousands of their people. Men who commit suicide as we give compliments set no great store by their own or their fellow-countrymen’s lives. It is plain that we are not wanted in the Corea, Whether we go with olive branch and Yankee notions, or firebrands and war, we are alike unwelcome. Why should we force the privacy of an ancient nation ! Why break in upon the seclusion of ages because it has existed for ages! Is our sort of civilisation so saving so precious that men must have it forced upon them at the cannon’s mouth! We have surely spilt blood enough to wash the stain of the original Corean barbarity. Now let us stay our hand, nor think we shall compel the Corean of to-day to be a civilised Christian gentleman, like Admiral Porter, by holding a pistol to his ear.” An interesting contribution to insurance literature lias been made by “Mark Twain.” He finds that the Erie railway only killed about twentythree persons in six months, out of 1,000,001) passengers, whilst 13,000 died in their beds out of 1,000,000 inhabitants of ew York in the same time. He thinks railwas accidents insurance a mistake, and wants to get his insurcuce on going to bed instead. Shakespeare roust have had a vision of the modern bonnet, when, in “Taming of the Shrew,” he wrote the following : Petruohio—“Why tliis was moulded in a porringer; A velvet d'sh—fie, fie ! Why, ’tis a cockle or a walnut-shell, A knack, a toy, a trick; a baby’s cap ; Away with it! come let me have a bigger. " Katharine—“l’lbave no bigger; this doth fit the time; and gentlewomen do wear such caps a-* these,’