THE MANAWATU RAILWAY.

Gisborne Times, Volume XXVI, Issue 2292, 10 September 1908, Page 2

THE MANAWATU RAILWAY.

PURCHASE BY THE GOVERNMENT.

TERMS OF THE TRANSACTION

(Special to “Times.”)

WELLINGTON, Sept, 9. By message from liis Excellency the Governor yesterday afternoon, the House was put in possession of the Bill making provision for the purchase of the Wellington and Manaivatu railway. The terms and conditions of tlie purchase have been Settled by a provisional agreement entered into by the company and the Alinister of Railways, and £500,000 has already been expended by the Government in the purchase of debentures issued by the company, which debentures are now held by the Crown. The Bill is to make legislative provision for the carrying out of the agreement arrived at. It provides for tho taking over of the railway as a going concern on. the 7th December next. The Crown is to pay the company £900,000 by way of purchase money for tho railway, land, and property, together with an additional amount for stores on band on tlie 6th (estimated £10,000). The purchase money is to include tlie £500,000 expended in the jiurchase of debentures, which are to be cancelled and realised. The residue of tlie purchase money is to be paid to the company on tlie 27th February next, and the company is to pay interest on the £500,000 debenture money up to the 7th December next, the rate being 4 per cent. The Crown will pay similar interest to the company on the ramainder of the purchase-money, or on any such part thereof as "is for tlie time being unpaid from 7th December to 27th February, or until tho purchase money is fully paid. The company is to get an additional £15,000 for giving possession of the railway on 7th December. Tlie residue of the purchase money is to be paid in cash or debentures at tlie option of the company, the debentures, if issued, bearing interest at, 4 per cent, and having a currency of seven years, and they are to bo issued at the rate of £IOO of capital for every £IOO of stock, if desired to convert them into New Zealand stock, in which case the interest will be 3) per cent. The purchase money is to be payable either in London or in New Zealand. The Alinister for Finance is to be empowered to raise £1,000,000 at a rate not exceeding 41 per cent in connection with the purchase of the railway. Sec. 29 of the Bill provides that servants of the company may be appointed permanent officers in the Government Railway Department.