The Evening Star. PUBLISHED DAILY AT FOUR P.M. Resurrexi. SATURDAY, JUNE 11, 1881.

Thames Star, Volume XII, Issue 3885, 11 June 1881, Page 2

The Evening Star. PUBLISHED DAILY AT FOUR P.M. Resurrexi. SATURDAY, JUNE 11, 1881.

It will be remembered that some months ago it was stated that Sir Julias "Vogel was about organising a company to purchase from the Government all the railways of the Colony, and work the same under certain conditions. It appears that his attention was called to thin statement, and in a letter to Mr Curtis, of Nelson, the late Agent-General not only refers to the matter of the railways, but takes occasion to discuss other questions of colonial importance. He accounts for the rumour getting about, to the fact that he wrote some time ago to a member of the Government that he intended to suggest a plan by which thel stoppage of railway construction might be averted, and said he would write his ideas to Mr Richardson, of - whose administrative abilities he speaks in the highest terms. On learning that the Government were dead against colonising works he did not Write, because, as Agent-General, he thought it would be opposing his employers, and therefore disloyal. He subsequently telegraphed to the Government that he could arrange for converting colonial stocks on profitable terms, Bnd for providing funds to take up unnegotiated Treasury Sills. In another column we publish one of the papers laid on the table of the House on Thursday last, a despatch from Sir Julius Vogel in which he prefers certain claims for compensation for services rendered. In that document he discusses at length the ■teps taken by him in negotiating loans and advancing the reputation of the colony. In the letter to Mr Curtis, which has been published in Nelson, he proceeds to give his;opinions upon late colonial legislation, and proceeds as follows :— " In common with all other countries and colonies, New Zealand is suffering from depression, and the Government, instead of recognising, its temporary character, was seized with a panic, and the course adopted was hasty. They magnified the difficulties so as to nearly produce a distrust which might have wrecked every financial institution and every mau of means in the colony. The falling off' in revenue . should, have been replaced by reinstating the tea and sugar duties, but a property tax at such a time was dolefully inexpedient, because the depreciated value of'property was the main cause of depression, and it was obviously unwise to still further reduce it. The great mistake was made in spending the five million loan too quickly, and arrangements should have been made for extending v the execution of existing contracts over an increased period. By its stupid fears the Government fatally discouraged thousands- of farmers with means and experience and knowledge, who would have made the most* valuable settlers, from emigrating to New Zealand. Half-a dozen ship-loads of such; men were prepared to go, and would have set the colony on its legs, but how could they make up: their minds to go to a country whose rulers befouled it with Mich gloomy prognostications P All experience shears that New Zealand was, justified iv its railway policy. He at once disclaims all sympathy with the idea of a Government parting with railways, or making forced sales of land, or permitting continued stagnation of railway* jwfinished, and land unsettled. Sir Julius then gives ; his idea of securing proper railway! administration. The, management of' them should be absolutely and entirely free from political inluence, and be vested in Commissioners—one nominated by the Government, and 'two elected by the. members 'of each island for such island, to perform the duties of a Board for each island, but for the purpose of borrowing money to be associated, in ope corporate body. There *bould hate the judgment to know how much of present profit it would be wise to sacrifice to the object of developing the railways. The' Commissioners should recommend to Parliament additional railways, with this exception—that the railway policy was based pu a bargain which should be held sacred ;Jtlift.i .(here; should be two trunk line^ brtujtinft(into; inter-comnmnication Wellington Napier,: Wangauui, New Plymouth aad Auckland in the North; aud Nelson, Hokitika,

Blenheim, Picton, Christchurch, Timaru, Oamaru, Dunedin, Milton, and Invercargill in the South Island. To ignore this compact is to biake a united community impossible. Granted >hese lines, the rest should be left, 'to the Commissioners, who would be, poor creatures if they were not able to give proper heed to the question of future development. The management in each island should be quite distinct, for it will be an ambitious enough design to make identity of a system in each island without insisting on the same identity for both. The Commissioners might be made 'use of for" future borrowing, and the absurdity of placing railway servants on, the estimates as Civil Servants be dispensed with. As regards borrowing, a limit shoujd be set to the indebtedness to be charged to the consolidated revenue for railway purposes. The revenue ought; to be recouped to the amount paid for interest during the construction of railways, and in the next colonial loans such amount might be provided to relieve the floating indebtedness added to that of railways. The ten millions already spent on railways have brought into existence an estate of sufficient value to remain for the futurei fhepf imary security, for further borrowing to complete the railway system. With the exception of putting apart certain land as a railway estate, the borrowing of the Commissioners should be authorised by Act of the Colonial Parliament, as borrowing of companies in England, only the Acts should be public not private ones. These railway loans should constitute a new era, and there should be a first rate security in the nett railway receipts. It might be urged that the railways have already been assigned as security for existing debts, and so this would be a departure from an existing obligation, but I do not think so, as the fresh liabilies incurred are merely for the purpose of perfecting and extending the system,.with the view of enlarging the ultimate results, which results go in the consolidated revenue to I surmount the technical difficulty of railways having been included in the consolidated revenue. In Acts relating to loans, provision should be inserted fcnat the security given over railway receipts should not prejudice the claim of the consolidated revenue to any part of the receipts required to satisfy the liabilities. On the other hand, to complete the security, the railway loans must be guaranteed by the colony. One great advantage of this would be that although the loans would be Government loans, bo far as the security is concerned, they would not be in that sense which so often injures New Zealand loans. They would not be a direct part ot the public debt; to be quoted as such. Two great advantages would accrue—first, the opportunity would be gained of converting the present public debt and save immensely on the yearly costs; and secondly, the railway loans would be made to suit the circumstances they have to serve. Supposing arrangements were made for clearing off the present floating debt, New Zealand should not require to come into the market for years to come. Its railway extension otherwise provided for, its liabilities merged in its public debt, it should start fair and within its income, except perhaps occasional borrowing for some great public works other, than railways. By a judicious conversion, the present burden of public debt can be greatly lightened, and especially if railway loans in future be severed from the public debt. Twenty years hence, New Zealand railways would be worth more than the whole public railway districts, as anyone must see who is not a child in intelligence of railway history. The Government which divested the colony of the contingent profits derivable from keeping the railways for the benefit of the State would deserve to be hanged. Scarcely less should be the punishment of a Government which sacrificed the public lands, which through railways make every year more valuable; and, again, only scarcely less should be the punishment of a Government that had not resource sufficient to continue with intelligence, the prosecution of the railway system from its present incomplete to a complete condition.