TAUPO RAILWAY

Manawatu Herald, Volume L, Issue 3954, 11 June 1929, Page 2

TAUPO RAILWAY

REASON'S FOR STOPPAGE. SOME CONVINCING FIGURES. Rotorua, June 7., Figures and facts of a convincing nature were quoted by the Prime Miinisitelr here to-night when he ex - plained in his policy speech why the Rotorua-Taupo railway was stopped. 'Sir Joseph Ward said the estimated cost of constructing the railway (taken from the Commission's report in 1922) was £700,000, exclusive of additional rolling stock, which'would cost a further £50,000. With present day costs, the estimate had since been increased to approximately £BOO,OOO. Expenditure on ithe construction of the line to the 31st March, 1929, amounted to £35,809. The length of the proposed line was about 541 miles. The estimated the annual revenue at £61,492, and working expanses at £52,547, leaving a balance of about £9OOO towards interest charges, which they estimated at £30,000. Assuming an interest rate of 4 per cent, on the total capital cost of £750,000, it would be. noted that the capital cost had been increased, and the rate of interest was also higher, so that interest charges would be £40,000, making the deficit still lodger.