NEW RAILWAY.

Manawatu Standard, Volume XLV, Issue 126, 1 May 1925, Page 5

NEW RAILWAY.

CONSTRUCTED BY LOCAL BOARD. Per Press Association. INVERCARGILL, April 30. The Minister of Railways (Hon. J. G. Coates) to-day performed the ceremony of opening 13 miles of railway constructed by the Ohai Railway Board, which was the first body of the kind to be incorporated under the local Railways Act, 1914. The line runs from the main. Government line at Wairio through part of Nightcaps to Ohai and Birchwood, the centre promises to be an extensive mining industry, large deposits of coal having been proved in the immediate vicinity. A special train, conveying about 600 guests of the board, including the Hons. J. G. Coates and G. J. Anderson, and Sir Joseph Ward, left Invercargill in the morning and on arrival at Reeds siding, 42 miles from the town, the guests were welcomed by Mr A. W. Roger, ohairman of the board. Mr Coaler referred to the occasion as unique in the history of New Zealand as it was the first line constructed under the special legislation of 1914, and its undertaking showed the confidence of the people of tlie district, in its great natural resources. The line, thanks to the large increase in the coal output, had been constructed without a special rate on the settlers. The achievement was one that reflected to the credit of the board, whose efficiency he comdiended Regarding the railways generally, Mr Coates said that during the past 12 months and at the end of the year there was a deficit. approximately, of £78,000 on a 3J per cent earning basis. During the year £BO,OOO had been paid into the superannuation fund and a larger amount would be required next year, but after that it would gradually get smaller. A second fact that operated against the successful running of the system was the recent epidemic, which resulted in a loss of approximately half a million' iiassengers’ fares and a drop in revenue of approximately £IOO,OOO, when oompared with the revenue obtained for the corresponding period last year. The railway strike also caused e, loss of approximately £160,000. Taking these figures into consideration, the railways had showed a wonderful improvement and he hoped for much better improvement next year. The objest*of the department would be to cater for every legitimate requirement of the community. He wished the new- line a prosperous run and hoped it would bring about wide industrial development in the district. *

The Hon. G. J. Anderson also spoke. Sir Joseph Ward added his congratullations on tlte completion of the railway. In referring to tho re-introduction of the gold standard, he said it would considerably reduce the rate of exchange and thereby mean increased returns for all. Mr F. W. Furkort hoped the example of the board! in building a railway out of revenue and thus avoiding going on the market for a loan would be largely copied, as self-reliance was desirable in New Zealand.