THE RAILWAY CONTRACTS.

Evening Star, Volume IX, Issue 2697, 9 October 1871, Page 2

THE RAILWAY CONTRACTS.

Objections have been raised to the pro* liminary arrangements with Messrs Brogde* for construction of railways, principally upon the ground that the land grant of threequarter acre for every pound expended by the contractors, is excessive. We are not prepared to express an opinion whether

tetter terms might not have been obtained for the Colony, as this subject requires a more thorough knowledge of the English money market, and of the feeling of British capitalists in reference to New Zealand securities, than we cm claim ; but wo are able to judge to a certain extent by comparing the proposed terms with those entered into for the construction of other railways through at P re.e„t Hoad, fiom Texas to lira Coast of Lower iVlifornia with a branch line to San Fran- ° f 2 The North Pacific Road, from the head of the American lakes to Puget Bound. These lines harcbeen named such officially, to distinguish them from the present hue from the present line from San Franciscoi, which will henceforth be called the Central Pacific j>oad Those two lines, although rivals, to » oprfcain extent, of eich other end of the existing Vne, which has been so liberally endowed by the United States’ Government in land grants and money, have free grants nf land as follows ; The South Pacific Road receives 8000 acres per nailes through Texas, 24,600 acre* per mile through Ariozna and New Mexico. 12 800 acres per mile througa (.aliiorma, with the privilege of selecting along the line of road, or, if the lan s are sold, the comoanv may choose anywhere in the particular State from unseld lands. In addition to this, the company received a strip of land, 200 feet wide, all along the line and grants not exceeding 40 acres in one block, for stations and other purposes, where required. This trives to the company the advantage of having everywhere sufficient land for working the line, leaving them at liberty to select onlv land along the road where they choose, and going fuither back should the land be worthless near the line. The North Pacific Road receives a grant of 50 millions acres (sixteen times the area of Hawke’s Bay), to be selected along the line which is at the rate of above 40,000 acres per mile. A large proportion of the land near Puget Sound is magnificently timbered and hounded by well-sheltered bays, accessible to ships of large tonnage. Comparing these grants with those proposed to be made to Messrs Brogden, the fatter appear insignificant, not only in the aggregate (even if i ll the projected railways should be carried out), but likewise at the rate to be granted per mile. Allowing that the cost of our roads shall average L4OOO per mile (which is above the estimate), the grant will be 3000 per mile ; while the United States grants are from 8000 to 40 000 acres per mile. Farther, the grantees in’ the United States have the right to select their land along the line of road, or anywhere else they may choose in the State through which the line passes, while our contractors on the other hand are entitled to only one-fifth agricultural land (which not necessarily from the line) ; the other fourfifths arc supposed to be uuagricultural land, the whole of it to be taken where the Government may direct. The American contractors derive in this way the benefit of the enhanced value of the property along the line, while in New Zealand very little land is likely to be granted to them along the road. The profit ’ accruing to them in America on this account must be very considerable, as for instance, on the present overland line, in the State of Nebra ka, the company have sub-divided their estate along the' line into farms, which are selling from 10 to 30 dollars per acre, while the United states’ lands-owing to their distance from the stations, sell on defeirod payments, at one dollar twenty-five cents only. Another great source of revenue for American contractors, does spring out of their privilege of receiving a bonus from the districts through which the line is taken, the Government indicating in their charter merely the general direction of the road and the principles of construction, such as gnage, Ac., leaving to the company the right of determining the details and the opportunity of driving a good bargain between rival neighborhoods, bidding against each other for the benefit of the line. Special rates, authorised by a General Act, are levied for the payment of these local subsidies to the railway companies. No extra profit of this sort appears to be instore for Messrs Brogden and Co.— Hawke's Bay Herald.