East and "West Coast Railway.

Thames Star, Volume XVII, Issue 5152, 22 July 1885, Page 3

East and "West Coast Railway.

[Pee Peess Association.) Wellington, Yesterday. In the House of Representatives this afternoon, Sir ijulius Vogel read a state ment regarding the East and West Coast railway. He Baid :—lntelligence has been received by cable from the delegates who went Home to arrange for the construction of the East and West Coast and Nelson railway lino that they have concluded an arrangement with Messrs McGigts and Sons, whom they describe as of good standing and repute. They further say that powerful financial houses known to them promise support, and are ready to take substantial interest in the contract. Messrs McGiggs and Sons (a well-known firm of railway contractors and financiers) bare agreed in writing to construct the railway provided further concessions are granted. They ask, in addition to land grants, a guaranteed payment of £97,000 in excess of working expenses per annum for 20 years, payable in London halfyearly, commencing after the railways are finished, and they state it is intended to finish them in from three to five year 9. The amount of £97,000 is arrived at because of its being 2| per cent, on the C08t77 which is thus estimated .—Actual v^frjtjf bf works, £3,025,000 (which closely our o.wn estimate); interest during construction, £400,000; engineer's administration, £50,000; and expenses of. underwriting, £885,000; making in all £3 860,000, 2£ per cent, on which would equal (within £500) the £97,000 asked for. In considering this proposal, it is desirable, first, to compare it with the one for constructing the railway ourselves. If we have to construct them ourselves by borrowing money, wo should save the £385,0C0, the last of-the items I have mentioned. The railways would, however, cost us more for interest during construction. The £400,000 is evidently computed on the basis of about four years occupied in construction,, but if we have to con struct them ourselves, we should be very unlikely to do the work in less than ten years, and calculating interest at four per cent, for the mean period of five years, that would give us £615,000 as cost of interest. We propose to ask the House to consider this most important subject in Committee of the whole on Friday next. We shall prepare a resolution approving of the proposal on the condition that after the works are completed, and when payment of the £97,000 begins, half the cost (whatever it may be, and it is not likely to exceed £60,000 for the railways, should at least yield 1 per cent, to start with) shall be charged to the Provincial District of Canterbury, north of the Eangitikei, and to the Provincial Districts of Nelson and Westland, as well as the entire cost of maintaining the roads between Nelson and Greymouth, and between Christchurch and Hokitika. As regards the mode of imposing the charge, we propose that it should be done by means of the Property Tax. The amount within the districts just mentioned I estimate the maximum as unlikely to amount U one half-penny in the £, and that it will dwindle soon to a very little, if anything, as the line continues open. Now, as regards the whole colony, this departure is of great importance. From all parts of New Zealand there come up requests for railtrays more or less desirable. As long as provision is not made up for the East and West Coast and Nelson Hail, ways, the way is stopped to a fair extension of other lines, or to finish the routes, but if these great lines be provided for, and if they are to be constructed at so cost to the colony excepting when they are completed, and then at a cost which, compared to tl.eir value, will be a mere trifle, the way is open to consider other HneF, and the plan we now adopt will be applicable to other parts of the countryThere are lines which we consider should be made en the responsibility of the colony, such as the main line to Auckland and its extension northwards, the extension of the Otago Central to Wanakß.and the extension from H.okitika to Greymouth ; but if Southland or Otago wishes to penetrate to the West Coast, if the Haketeremea or Waimate are to be extended, if Marlboroughand Canterbury are to be connected, if Gisborne, Tauranga, and New Plymouth are to have openings to the main line, some plan of the districts interested, providing half the annual cost, can be adopted.