THE CLUTHA RAILWAY.

Evening Star, Volume VIII, Issue 2184, 7 May 1870, Page 2

THE CLUTHA RAILWAY.

Some correspondence on the subject of the Port Chalmers and Clutba Hailway schemes was laid on the table of the Provincial Council yesterday afternoon. There are three letters on the subject of the Clutha line. One is an extract from a letter of a Mr Morrel to the late Mr Paterson, in which the writer states that he has come out to the colonies as consulting engineer to an association of English capitalists who are willing to initiate railway construction in any of the colonies, on the guarantee principle. His people are all lirst-rate, of high standing, and under various designations and registered as companies have carried out and are carrying out railways in all parts, principally North America ; J. P. Bidder, Kicardo, Pumbard, Edwin Clark, Sir J. Lubbock, E. Sutherland, Colonel Cole, &c. Mr Morrel after stating that he came out in the first intention of ncgociatiug a line in South Australia, and

are in a fair way of arranging eventually for a 54 per cent, guarantee for 30 years on L 5,000 per mile, says : “ I see you advertise tor tenders in your part of the world for some 50 miles at 8 per cent., for 15 years, on L 400,000. If I remember aright, the country is formidable in some pacts—would LB.OOO do it ? Again, 8 per cent, for 15 years is not sufficient to make the stock worth purchase. L 95 10s is the actual value, which is reduction of some 5 per cent, on the capital While making objections, I would say that the security clause near the end of agreement is impossible. No English shareholders would consent to run the risk’of seeing their property cleared off at one full swoop. It might be modified without prejudice to anybody. I think that our people are the only association capable of carrying out such a work just now. As for Melbourne, the place is eatenup by penniless jobbers. English contractors, too, have suffered fearfully. By-the-bye, we do not profess to be contractors. Asa company we undertake to have the line constructed, and it is with a company, aud not with contractors, that the Provincial Gc vermnent would be dealing. Do you think it would be worth our while to consider the matter at all, bearing in mind that we shall ask for certain modifications to make the scheme palatable at home ; but at the same time we are quite prepared to give you the most lavish proofs of bonajides, and are desirous that everything should be conducted on a thoroughly equitable fo ding. Shortly, does your Government wish to have the line completed? If so, do they wish to deal openly aud liberally with responsible parties ? ” The Secretary for Land and Works writes to Mr Blair, C.E., in reference to Mr Morel’s letter :—“The extract has been laid before the Executive Council, and 1 have now to request that you will be good enough to write Mr Morel by the mail leaving for Melbourne to-day, asking him to state what alterations of the conditions he would require in order to make them acceptable to the company or body of gentlemen for whom he is acting, informing him at the same time that the Government are willing to make any modification in the conditions which may reasonably be required within the terms qf the Ordinances which have been passed on the subject. You are authorised to state to Mr Morel that the Government are tho. roughly in earnest in the desire to have the Railway constructed, and are prepared to deal fairly aud liberally with any responsible persons who may wish to undertake its construction. It would perhaps be as well that you should suggest to Mr Morel the advis* ability of coming to this Province, and investigating the matter for himself. The Provincial Council is convened for the dispatch of business on the 26th instant, and the session will probably last a fortnight or three weeks ; so that if Mr Morel comes down at once, he will be iu a position, owing to the session of the Council, to name the terms upon which his principals will be willing to undertake the construction of the line. This will enable the Government to obtain the sanction of the Council to their acceptance, should the terms proposed be satisfactory.” Mr J. R. Davies writes to the Supeiin* tendent as follows : 8, Chamber of Commerce, Melbourne, April 9th, 1870. “ Sir, —I have the honor to acknowledge the receipt of six copies .of conditions for the construction of the Clutha railway ; and also yours of Bth March, intimating that no tender had yet been accepted. Since my arrival here the subject has been thoroughly ventilated and discussed, and I may mention that the greatest obstacle to the formation of a company is that there is no mention made iu the Ordinance that the Government will purchase the Railway. It merely reserves to itself the right to purchase at any time after the same shall be completed, &c Capitalists here require a guarantee that the railway toil I he purchased at the end of 15 years by the Government, I therefore respectfully suggest for your Honor’s consideration that the Government reserve, sa} r , 400,000 acres of land for the purpose, and sold when opportunity offered, the proceeds to be placed in a fund for the ultimate purchase of the railway at the end of 15 years. I have to state if your Honor is prepared to do this, I am clirec'ed to announce that a company will at once be formed for the construction and the working of the Otago Southern Trunk Railway,—l have, &c., Jas. R. Davies. “ His Honor the Superintendent of Otago.”