RAILWAY TO TAUPO

Taranaki Daily News, Volume LIV, Issue 78, 22 September 1911, Page 7

RAILWAY TO TAUPO

t CASE FOR THE COMPANY

I Wellington, Thursday. ; The Parliamentary Select Committee, which was appointed last wee]; to inquire into the petition of the Taupo Totara Timber Company for power to extend its railway line and purchase a large area of Native land, met to-day. The first witness was Mr. F. <i. Dalziell, who said an Order-in-Council was not necessary for the purchase of the Native lands or foT the extension of the line, but he recognised that nothing could be done until the fullest publicity had been given to the proposals, lite company was formed in li) 00, and its capital consisted of £341,780. There was an accumulation of preferential dividends, amounting to £50,000. The company had always paid interest on debenture loans, but had paid no dividends. During tin first two years a substantial loss was made, but profit was now being secured, There were about 120,000,000 feet of milling timber available when the company started working, although the estimates'showed between four and five hundred millions. The company had paid £IO,OOO in railway freights and £OOOO in rates and taxes during the past six years, His object in stating the financial position was not to ask for assistance, but to suggest that a company working on lines of such magnitude had claims to consideration. Witness maintained there could be no reason at all for the State or ayohe else shouldering the company's loss. It must meet that itself. What it was hoped to do was to make this railway of permanent value. Continuing his evidence, Mr. Dalziell said the company had arrived at the conclusion that any proposal which involved financing by the Government was not likely to be acceptable in the near future. The line would not be sufficient to tempt capitalist* to invest money, but money would be available associated with a proposal for the purchase and development of a sufficient area of land served by the line. The company owned 60,000 acres of freehold, which could be devoted to the purpose, and it was desired to acquire 200,000 acres out of the 800,000 in the district. The line would serve between 1,500,000 and 2,000,000 acres. Nearly the whole of the land was unoccupied, and nearly all was excellently adapted for cultivation. The company was not asking for any concession from the .Crown, nor for any sacrifice by the Natives, the price to be paid being the present value. Witness dso dealt with a number of objections which had been raised, and contended that so far from the proposal being injurious to the State, it would be highly profitable in every way.

Mr. Dalziell said that, as the company's sole purpose was to get back the cost of the present line, it was prepared to accept any reasonable conditions as to purchase by the State. He objected to the purchase ib.v the Government at an increase of 10 per cent, on the cost. It had been suggested that the company would sell land at exorbitant, prices, but the area it was proposed to secure was only a sixth of that available, and other land, part of which belonged to the Crown, would he in eonv petition:with it. The number of Natives concerned was between 1500 and 2000. The cost of purchase of the railway and kind would bo over £200,000. The company had not yet entered into any contract with the syndicate to which it desired' to sell. i

The. enquiry was adjourned till Thaws day next.