New Zealand Railway Lines.

Manawatu Standard, Volume X, Issue 47, 23 July 1885, Page 4

New Zealand Railway Lines.

IMPORTANT -KTATRMEHT BY SIR JUMUS YOG EL.

lii tho Houso on Tuesday afternoon Sir Julius Yogel read a statement rogardin« the East and West Const Railway. lie said : — lntelligence has been received by cahio from the delegates who went Home to arrange for tho. construction of. the E ist and West Coast and Nelson railway lines .that they have!' concluded arrangements with Nlessrs Weiggs and Sons' linn, whom they describe as of good standing and repute. Theyfurtherstateth.it several powerful financial houses known to them also promise support, and are ready to take substantial interests m the contract. Messrs Weighs and Sons (a well-known firm of. nil way contractors and financiers} have agreed m writing to construct tho rai'ways provided further concessions are granted. They ask, m addition to 'laud grants, a guaranteed payment of £97.000 m excess of working expenses per annum for twenty years, payable m Londou half-yearly, commencing after the railways are lin ishod ; and they state it is iut<jnd;d to finish them m from three to five years. The amount of £97,000 is irri vod at because of its bsing 2J per cent, on the cost, which is thus estimated —Actual cost of works, £3,025,000 (which closely resembles our own estimate) ; interest during construction, £400,0.00 ; engineers and administration, £50,000 ; and expense of'underwriting, |£335,000, making m all £3,860,000, 2£ pur cent, on which would equal (within £500) tho £97,000 asked for. In. considering this proposal it is desirable first to compare it ' with one for constructing the raitways ourselves. If we have to construct them ourselv-s by borrowing the money wo should save £385,000 m thelaatof the items I have mentioned. The rail. vay would, however, cost no more for interest during its construction. £400,000 is evidently computed on the basis of being about four years occupied m its construction, but if we have to construct it ourselves we should be very unlikely to do the work- in(less .than 10 years, and . calcula tihg iufefestat 4 per cent, for the mean period of five years, that would give us £615,000 as" tho cost of interest. We propose to ask the House to ..consider this most important subject m Committee of a whole, on Friday next. We shall prepare a resolution approving of the proposal on condition that after the works are completed, and when payment of the £97.000 begins, half the cdst,(vvhatever it may be, and it is not likely to exceed £60,000, for the railways should at least yield a dividend of 1 per cent, to begin with) shall be charged to the, Provincial ■ district of Canterbury '.north of the Kangitata, and to the Provincial Districts of Nelson and Westland, as well as the entire cost oT 1 maintaining the main roads between Nelson and Greymouth, and between Christen urch and Hokitika. As regards the mode of imposing the charge, we propose that it" should be done by means s of . a property .tax imposed within the '■ districts mentioned. • I estimate that '• the maximum is unlikely to amount to ■ one halfpenny m the pound, and that it ; will dwindle to very litttle, if anything, as^ the line continues. Now, as regards the whole, colony, this departure is of great importance. From all parts of New Zealand coma up requests for rail • ways'niore or less desirable. As long as poo vision is not made for the East and ' West Coast and -Nelson railways the way is stopped for the fair extension of other ; lines, or to fresh routes, but if these .' great lines be provided for, and if they are to be constructed at no coat to the colony excepting when they are completed, and then at a cost which, compared with their value, ; will be a mere ;' trifle, the way is open to consider other I lines, and the-p'lW we now -adopt will be i applicable to other parts of the country. There are lines wo consider should be made on the responsibility of- the colony, such as the-main line to Auckland and its extension northwards ; the extension of the OtasO Central to Wanaka. the extension from Hokitika to Greymouth; but if Southland or Otago wish to peneItrate to the West Coast; if the Hakaiteruinea or "Waimate are to be further > extended ; if Marlborough- arid Canterbury are to be connected ; if Gisborne, Taur'angaj and New Plymouth are •to .have openings to the main line, the same plan of districts interested providing half ■the annual cost can be adopted.