THE MANAWATU RAILWAY.

Greymouth Evening Star, Volume XXXI, 21 August 1901, Page 4

THE MANAWATU RAILWAY.

Further Negotiations with the

Government.

(special to “star.”)

Wellington This Day. I have authority for stating that the directors of the Wellington and Manawatu Bailway Company are again negotiating with the Government for the sale of the railway lino and land under their control. At a meeting of the directors yesterday the matter was gone somewhat fully into, and it was decided to again place the line under offer, but on different terms to those submitted" by Mr T. G. Macarthy, the chairman of directors, to the Premier on the IVth September of last year.

It will be remembered that at that time, acting under pressure from the English shareholders of the. Company, Mr Macarthy wrote to the Premier ininforming him that the directors were prepared to sell to the Government, the whole of the assets of the company for a sum equal to the paid-up capital of the company (£170,000), with compound interest thereon, at the rate of 6 per cent per annum, calculated from the various dates when the calls forming the capital of the company were paid, to the date of the offer, and thereafter to the completion of the purchase. The offer also stipulated that when estimating the amount of the the purchase money, full allowance was to he made for all dividends paid to the shareholders, with compound interest thereon at a similar rate. The Government was to be asked to assume the responsibility of payment in London at the due date of the debentures (£680,000) issued by the company, with the interest thereon, and all other liabilities and engagements, as they became due. The reply of the Premier was to the effect. that the Government found that the offer, as contained in the directors’ communication, was not such as could bo accepted, for the reason that the purchase money would come to considerably more than if the lines were purchased under the original agreement. The Government was also of opinion that 6 per cent, during the full time was too high. They expressed themselves prepared, however, to consider further proposals for the acquirement of the land and line on hotter terms.

Apparently these better terms have now been offered, but what they are has not transpired. It does not seem, however, that the renewal of the negotiations has occurred at a very propitious time, if the finaricial barometer is to be relied upon. Any agreement that is come to, is subject to ratification by Parliament under the Empowering Act.