CHAMBER OF COMMERCE. North Island Trunk Railway.

Te Aroha News, Volume III, Issue 127, 7 November 1885, Page 4

CHAMBER OF COMMERCE. North Island Trunk Railway.

A spxoia;l general meeting' of the Chamber of Commerce; for the purpose of considering the action of the Government iv regard to the North Island Trunk Railway Million Loan, took place on Friday, October' 30, -Mr Graves Aicken, President, being in the chnir. There was a large attendance of members of the Chamber present, including Messrs G. Hofckhip, Vaile, Byron, G. Harper, W. Taite, Johnson, Waddell (Mayor), Mkin, J. Wink*, Brnce, Whitney, Milne. Lamb, McMillan, Jakins, A H.Nathan,Shera, Sharland, Lodder, Brett, J. Reid, J. Rose, E. Bell, J Batger, L. Ehrenfried. The following members of Parliament also attended :— Sir George i^rey, Thomas Peaoock, W. Buckland, T. Thompson, Colonel Fraser, F J. Moss, and R. Uobbs. In opening the proceedings, the Chairman explained the action the Chamber had taken i<o far in this matter. Ue paid that the Committee were requested to keep a vigilant eye on the Main Trunk Railway, and tbat as it had appeared recently, both from the Premier'*) speech and in other ways, there was a disposition on the part of the Government to lay hands on the railway loan, he wired to the Colonial Freasuer with the Committee's sanction and received the replies which had already been published the answer was rather startling, and as the question was one of great moment to the people of the North Island, the only course left was to call a meeting of the Chamber, more especially as the Government were settling a danger* ous precedent in seizing on money set apart by Act for a specific purpose in one part of the colony, and diverting it to works in another part of the colony without the authority of Parliament. The result of thi9 would be the endangering of this great colonial work. Once the money wss diverted what guarantee was there that would be refunded, and when? Referring to the position that had been taken up by the Auckland members, be said that they had voted for Captain Russell's motion, knowing tbat it would delay the railway but, he asks, were they so blind as the Tr asurer says in not foreseeing tbat the present exigency or necessity would arise. The Auckland members had been invited there that day, in order that they might have an opportunity of stating whether or not the Colonial Treasurer was right in interpreting the reasons which actuated them in voting on Captain Rus pell's motion. It was time, too, that the (government should not be law-speakers, for if they carried out their apparent intentions they would incur this reproach. If they raised the million loan it would only be on the express understanding that it was for the North Island railway. If it was not, therefore, devoied to this purpose it would be obtained on false pretence. He had received the following telegram frcm Mr Mitchelebn, M.H R. :—" Regret unable be present at meeting to day protest against proposed action of Government. Dishonest attempt punish Auckland, and Wellington. As one of those who voted for reductions, I emphatically deny statements and insinuations of Sir Julius Vogel. Ample funds available to carry out votes of House action is therefore unnecessary. Further unauthorised expenditure upon defence or other works unwarranted and unjustifiable. Parliament bhould be called together earlier than usual decide question of misappropriation." Mr McMillan moved that theChamberem-phatic-illy protests against the intention of Government to negotiate the North Island Main Trunk Railway off the million loan in April next, with the avowed object of diverting it to other works than those which the Act specified." The speaker deprecated any tirade being directed against the Government, but censured their immoral conduct with regard to this loan. He appreciated the fii m opposition by the Auckland members to the West Coast Railway job, and accused the Premier of showing, in his Dunedin speech, that he had been guiltv of low trickery. Mr G Holdship seconded the resolution. Mr Thoa. Peacock proceeded to show that there were sufficient funds in the hands of the Government apart from million loan to carry all works authorised by Parliament, and for a period longer than the interval between now and the next session of Parliament. Last session £2.600 s 00fr was voted for all purposes, but a great portion of this were liabilities. Over £100,000, however, which was voted for the purchase of notive lands, it was not intended to spend this >ear. The amounts coming in for payment, before next session had been stated to be £1,250,000, and as the whole £2,r00 000 had been cut down by £500,fi00, the proportion of this amount taken off the £1,250,000 was only £250.000. By the end of this year the Government would have £750,000 in hand altogether, apart from £&. 0,000 already in the bands of officers. It was never contemplated by Parliament that any part of the million loan should be devoted to defence or other purposes, and the Government were unable to spend money at all unless as Parliament had decided. Mr Moss was inclined to think that this intention of the Government with regard to the million loan was a pure afterthought, ard that during the currency of Parliament it was neither contemplated by them or any other member of the House. He en dorsed the clear statement of Mr Mitchelson, and, like Mr Peacock, he repudiated emphatically the construction placed by Government upon members' action. If they were in financial difficulties it was their duty to call Parliament together. Sir George Grey, who was received with applause, said that while one of the two speakers "voted for Captain Russell's proposal, and the other against, he himself had abstained altogether from voting, believing that it was a pre arranged plan between memcers on both sides of the House, Captain Russell, however, did not seem to be a party to it. His belief in a preconcerted arrangement was borne out by the fact that when the reduction was proposed, the Government eagerly showed how it might be carried out. At the same ime he corroborated the statement of Messrs Moss and Peacock that no one at the time contemplated the action of the Government were now adopting. He looked upon it as an attempt at intimidation and he did not think it would come to anything, Mr Buckland added his testimony to wh-tt the preceding members had said with regard to the Government's action. He also said that Sir George Prey's explanation concerning collusion over Captain Russell's motion bad been told him in Wellington by the gentleman himself. Ho did not think the Government intended to raise the million loan, for he recollected the Premier saying tbat probably Parliament would be called together m early as March. To his mind, Governmenment were bent upon destroying the milliun loan, in order to render feasible a compact betw3en Northern and Canterbury members for the constriction of the North Island line on the condition that the We&t Coast line was also constructed, . ~

Colonel Fearer did not think Sir George Grey was right in saying that there was any collusion on the part of the Government, re Captain Russell's motion, which he himself voted against. He was sure no member contem plated that there would be any interference with the million for the trunk line. Mr Thompson corroborated Mr Mosss ■tatement of the case. Mr Bobbs thought that Mr Peacock ha( very clearly shewn that Parliament had voted enough money for all purposes. The Government's proposed action was simply an afterthought designed for [political purposes. At the present time the Government all over the colony were playing their cards in a deep game. He voted for Captain Russell's motion, and felt proud of having done so. The Chairman remarked upon the unanimity with which the members had disavowed any intention on the part of Parliament to interfere with the million loan for the Trunk line The motion waa then put and carried. Mr J Lamb then moved, " » hat the raising of an additional loan for general purposes is unnecessary 98 well as unjuftitiabla, and that from statements submitted to the House, thbre we'-e sufficient funds provided to carry out the works authorised by Parliament until the Hou«-e mot." The motion was seconded by Mr J. Milne and passed unanimously. It was agreed to telegraph bath resolu tions to the Premierand Colonial Treasurer, and a vote of thanks was passed to the member* of the House of Representatives who had been present this afternoon.

Sir J. Vogel's Reply. Ok Nov. 2 Mr Graves Aickin, Chairman of the Chamber of Commerce, received the following reply from Sir J. Vogel to the resolutions passed at the Chamber of Commerce meeting. Sir J. Vogel's Telegram. Dunedin, Monday. But that I was travelling on Saturday, I would have acknowledged your telegram conveying to me the resolution of the Chamber of Commerce, Auckland. I take exception to the words "avowed object ot diverting to general works," etc., etc I he loan will be negotiated after the 3 1st March, when the market is favourable, and the money required, bearing in mind that it i-» not safe to leave these matters too long. The money will be applied only as the law permits. Owing to expenditure not contemplated on railway and other purposes, including Hefenee, tbo loans hitherto sanctioned will not suffice to fulfil the objects designed, and to set free puffi iient money to do so, another loan will be required. I do not know why the Trunk loan should be less subject to this than other loans Why, for example, ehouH the money borrowed for the Otago Central be not kept intact as much as that for the North Trunk line? The practice of not conforming to lo »n schedules is a bad one. It has gradually grown up. In 1878 all previous loan schedules assigning expenditure were actually re pealed. I am adverse to such a course, and think that the next loan authorised should provide for the lapsed provision. As regards the second resolution, I do not know that anyone is better able to judge of the probabilities at present existing than I am. The resolution assumes that funds can be provided immediately the Hou*e meets. This is contrary to experience. As far as I can forecast, there will be about half a million available at the end of March, and by law the expenditure may proceed at the Bame rate as during the preceding financial year until the end of June. If we curtail this expenditure, there will be great miser throughout the colony. Afterwards", until the Appropriation Bill passes, the expendi ture will depend on the Imprest Supply Acts. I am glad to say we are doing away with nearly all the advances in the colony, but the English advances require a margin of some £200,000 beyond actual expenditure. Bearing this in mind, I estimate the loans already negotiated will be practically exhausted about May or June, and thereafter something over £100,00 • a month will be required up to about £l50,<)00. The trunk loan will repay payments already made on account of the Trunk Kailway. You must bear in mind that it is dangerous leaving loans too late. Market may be unfavourable, and advantage may be taken of necessity as on previous occasions. Supposing Parliament meets earlier and authorised a fresh loan without delay, the authority to realu-e it could hardly reach London before the autumn exodus, and we could not hope to realise before October You will see, therefore, it will in all proba bility be necessary to use part of the Trunk Loan, and when once negotiated, it would be want of economy Dot to use it. The new loan may supply the place of the part used for other purposes. As to the new loan being required, that is not a question of policy. The current liabilities will make it necessary I desired to avoid negotiating the Trunk loan because I wished to keep it intact Not long since an Auckland paper attacked me for not negotiating it. I will shortly be in Auckland, and will be glad to confer with you It is just possible we may be able to dc with half the loan. If there is any furthei information I oan give you, I shall be happy

to do so. I regret that I was in error in supposing that the Auckland members had made themselves acquainted with the subject before they voted with Captain Russell. Julius Vogel.