The New Zealand Times (PUBLISHED DAILY). SATURDAY, OCTOBER 25, 1879.

New Zealand Times, Volume XXXIV, Issue 5795, 25 October 1879, Page 2

The New Zealand Times (PUBLISHED DAILY). SATURDAY, OCTOBER 25, 1879.

Although we are heartily glad that the deadlock has been at last ended, we are not prepared either to welcome Mr. Wood as a patriot, or to execrate him as a traitor. It appears that he and his following offered these terms to the Hall Government :—They demanded—first, that the Liberal measures mentioned in the Speech from the Throne should be carried; secondly, that the existing system of education should not be disturbed ; and, thirdly, that a return should be prepared showing the amount of public money spent within the several provincial districts of the colony, and that if it appeared from the return that the Auckland Province had received leas than its fair share, the Government should undertake to make good the deficiency out of the new

At first sight, it must be admitted that the agreement has every appearance of fairness. The basis to be adopted, in estimating the claims of particular provincial districts, was stated to be according to the population and the revenue derived from them. If the only question in the expenditure of loan money on public works were the equal apportionment of that expenditure, we should have nothing further to say ; but we maintain that it is not. The Government of the day has to consider not only the first outlay of the borrowed capital, but also the nature of the investment. They have to consider, in fact, two points—first of all, had that district a claim for such expenditure ? and secondly, will it pay 1 This latter point seems to have been lost sight of. We have a strong suspicion that the Auckland people would be very sorry to undertake to make good the deficiency of interest due on loan money expended on public works within that province, which has at present to be paid by the colony, because the net profit derived from the Auckland railways over and above working expenses is exceedingly small. We believe that the return asked for will be incomplete, unless it also shows the burden of interest imposed upon the colony in respect to the Public Works expenditure in each Province. We have been assured that public money invested in Auckland railways only returns from 1 to 2 per cent., and that in Otago and Canterbury it returns about 4 per cent. If this be so (and the " Gazette” returns confirm the statement), then it would appear that a small Public Works expenditure in Auckland implies as great an addition to the public burdens as a much larger ex capital expenditure in the South.

It cannot be too often repeated, or too clearly stated, that the whole future of the colony depends upon the commercial soundness of the investments made with borrowed capital; an unprofitable political railway, either in Auckland, or anywhere else will never be anything but a “white elephant” of the most expensive description. The terras come to with the Auckland party may prove to be exorbitant, if this phase of the question is not carefully considered.

Although Mr. R. Wood, in his first speech, professed to be in doubt whether the return, when made out, would show whether Auckland had or had not received its fair share of public expenditure in the past, yet it afterwards appeared that he had himself expressed • an opinion in the lobbies that a balance of nearly half a million sterling would be found to be due. If this opinion should be confirmed, and the generally unprofitable nature of the public works expenditure in the Auckland District can be also proved, then it would appear that the Government may have inadvertently promised to make a very large addition to the unprofitable railways, and consequently to the burdens of the colony, in order to extricate themselves and the colony from the deadlock. It may be well to explain that, in speaking of the profits to be derived from the expenditure on public works, we are quite prepared to take both direct and indirect profits into consideration, and in certain cases to advocate the formation of a railway througb’an unsettled district, if it can be shown that the land to be opened up is really fertile, easily worked agricultural land belonging to the Crown, which is certainly able to support a large population.

It is unfortunately true that the agreement entered into between the Government and the Auckland party yesterday has been accepted by a large number of men of both parties as the price paid for so many votes. We believe that Mr. Hall is quite incapable of agreeing to any proposals which are not apparently both fair and equitable. But an accession of strength, by which votes coupled with conditions are secured, is sure to encourage the already too prevalent belief that votes may be bought and paid for. About the House last night nothing was talked of but the half-million supposed to have been paid for the Auckland support; and although it may ultimately appear that no such sum is due or will ever be paid, we cannot but regret that any such demands should have been made or acceded to. We think that the Government might

fairly have said to the interviewers : “ We will make no bargain with you ; if “ you have not enough confidence in ua “ to believe that we will see justice done “ to all parts of the colony, wo must be “ content to do without your support.” It was worth a heavy sacrifice to get rid of the deadlock, and to preserve the colony from another reign of financial terror under Messrs. Sheehan and Macandrew, and we are afraid the sacrifice has been made.

The Parliamentary Committee appointed to inquire into the validity of Sir George Grey's election for Christchurch came to a decision yesterday. Although the official report will not be made known before Tuesday, it is understood that Sir George Grey has been declared ineligible to hold the seat by a majority of one, and that Air. Richardson, as the next on the poll, will be declared duly elected. It is stated that Air. Allwright asked for two hours’ consideration before coming to a decision upon the matter, but eventually he decided against Sir George Grey holding the seat, and thus turned the scale in favor of the petitioner. It is rumored in well-informed circles that Air. W. T. L. Travers, who appeared before the committee on behalf of Air. Richardson, made a very eloquent appeal in favor of the case put forward by the petitioner.