The Daily news

Taranaki Daily News, Volume LI, Issue 225, 16 September 1908, Page 2

The Daily news

WEDNESDAY, SEPTEMBER 10. TilK MAXAWATU LINE. Next to the completion of the Main Trunk lino, the purchase by the Government of the XJaiMwalu Company's ra'lway marks the most important event in tile material development of the North Island within recent years. Ero'n jAa-Kiiber 7th next, the 84 miles of railway bcLween Longlmrn and Wellington will become 'part of the State system, leaving only some 2'J miles of privatelyowned railways in the Dominion out of a total mileage of nearly 2IJOU miles. It i s interesting at this point to recall that the contract for the construction of the

first New Zealand railway was let in ISUO, and up to the year 187(J there were only 4(> mile< of railway in upei ation. 11l that year the construction of railways came to be part ol' the pujlie works policy just then initiated, and the Railway Act of 1870 authorised certain lines to be made and surveys 0! others. In 1870, the abolition of the .provinces placed the earlier-const Tiu-t'.'d railways in the hands of the General Government, when there were 718 miles I open for trallic. The .ManawaUi (.'Olll- - pany's railway, which was opened oil November 2l)th, 188(i —nearly 22 year's ago—has served its purpose, anil the. I development of the West Coast of th:s Island, well. By reason 01 its well-se-lected route, however, as compared with the costly Government system running out of Wellington over tlie Rimutaka, success has been of recent years tremendously assisted by the extension of the State railways radiating north, east and west. It was obviously incompatible with the railway policy of New Zealand that such an anomalous position could exist indefinitely, and absorption by the State was inevitable. Under the original authorisation, it was provided that ten years after the completion of the line it could be purchased by the Sta'e by payment of tU<* cost of "construction, plus 5 per cent If purchased between 14 and 21 years after completion, a 10 per cent, atldi tion to the cost ol construction was tc be paid, but no premium wan lo be paid if the line bail been running 21 years. The latter period expired in November, I!>U7, and 011 December 7th last year notice was served of the intention of the country to purchase the iliac. At th« outset it'seemed quite possible that the company alight still hold on to tilic line for perhaps two years during the currency of arbitration pro cec.dings after the expiration of the Is months' notice, in doing which the com pany woiibl have been quite within ' l ; legal rights. That the. Government ha: been able to announce the actual takinj I over of the line within 12 months 0 the serving of the notice is. 11 matte for congratulation. The negotiation appear to have been carried 011 bctwee. the Premier and Under-Secretary fo Public Works 011 behalf of the eountrj and the officials of the company, wit frankness and expedition, and withou recourse to the tedious process of a: bitration and possibly litigation. Tli price at which the railway has been a< quired (.0)25.000) appears to be a juand reasonable one, considering tl costlv nature of portion of the constnr tion "works, and tlie fact that compiel equipment capable of furimhing much greater mileage of railway t hi the company possessed has been ke| H in commission.

Under Government management, and running as tin integral part of the Stale system, it is only natural to anticipate that a great increase in the trallic over the line will result, but as further train facilities and concussion will have to be provided, it is not to be expected thai the railway will show sack a return o! profit as it was the company's good fortune to secure, for its shareholders. The profit to thv country will principally accrue from the more up-to-date and comprehensive service that will be provided by the Government oil this highly important section of the railway system. With re.spect to the employe"* of 'the company, it is satisfactory to know that the Government propose to take all tin- men of the company—cs cept two superior officer* —ami to I real them fairly and squarely. The men*position, the Premier has s tatcd, would not be prejudiced, aud efforts would be maile to merge them with the other railway employees that would in no , way be lo their disadvantage, -lust as : fo how the company's employees will stand regarding the superannuation 1 scheme, ill wlrch. o! course, they have not had the opportunity of participating, is not quite clear, although the Premier announced that it had been provided for. Their case would seem to be one that the company, which has concluded a satisfactory sale, might well consid"r with a. view to recognising its employees' loyal services by payment of an amount, by way of bonus, that would secure to 'the employees the benefits they would have been entitled had they been in the Government instead of the Manawatu Company's- employ. The completion of *nch a satisfactory deal l is in marked contrast to t ; hc wrangle | that ensued over the taking of the Midland railway by the Government. Un- : der the terms of the purchase, the shareholders in the "Manawatu Company receive the wlion; of the money mentioned in the Purchase Kill without any deduction whatever, so there is not likely to be any criticism from financial circles ihtvinuMital to the. Slate's reputation for straight dealing. The only discordant note in the transaction i s that very naturally raised by the local bodies in whose districts the company has landed interest, for by reason of the line in the very near future belonging to the State they will be losers of a considerable sum in rates, OX TIIE FOUKTH PAGE. Commercial. Amusements. Volunteering. Te Ngutu-o-le Mami. Taranaki Land Board. An Extraordinary Case. spring and Summer Fashions. West Coast; Settlement Reserves.