THE TAUPO COMPANY

Wairarapa Age, Volume XXXII, Issue 10430, 22 September 1911, Page 5

THE TAUPO COMPANY

ENQUIRY BEFORE SELECT COMMITTEE. Ay Telearavh — Prm Association. WELLINGTON, Last Night. The Pladtomentary Select Committee' which was appointed Hast week to enquire into the petition, of the Taupo Totara Timiber Company for power to extend its railway line and purchase a large area, of Native land, met to-day.

■Hhie first' witness .wo® F. G. Dalziell, wifoo said an Oirdleir-in-Oo'uncil was not necessary for tihe purchase of Native lands, or for the extension of tihe line. But he recognised that nbthing couM.' be done until the fullest pwblaciity had /beicH* given t(li!e proposal. line Oomipiamy was fiarmed in 1900 and its capital' consisted of £341,780. There wais. am, accumulation, of preferential dividends amounting to £50,000. Tihe Company had always paid interest on its debenture loans, but had paid no dividends during the first two yisiars. A substasitiail loss was made, but a profit was now being secured. There were about 120,000,000; feet of rocOil&njg tdncfbeir available when the .oomipany started working, although tine estimates shiow.ed between fouir and five hundred millions. The Company had paid £IO,OOO in railway freights and £6OOO in rates and taxes during the past six yetars. 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 a. oliaim to oon-r sid.era.tion. Witness maiinitaaied there cou'ld be no reason at all for the Stat© or anyone else shouldering the Company's loss. It must meet that itself. What it 'was hoped to do was to make this, rafilnvay of pei'mianent value.

The Company had arrived at tine conclusion, that any proposal wMch involved financing by the Governmienifc was not likely to be acceptablein the near future. The line would not be sufficient to tenijpt capitalists to invest money, but money Would be avtaiiaibla if the'scheme was associated, witih xlbe proposal for the purchase and development' of a sufficiennt, area of land served by the line. Tftile Qompansy owned 50,000 acres of freehold wlhicli could ba devoted for the purpose, andi it was desired to acquire 200,000 acres out of the 800,000 in the district. The line would serve betweeiv 1,500,000 and 2,000,000 acres-. Nleatriy the wihtole of the Land wais unoccupied, and nearly all wias excellend'y adapted for cultivation. The Company was not asking any concession, from the Crown, nor for any saordfiffe by the Natives. The price to be paid was present value.. Witness also dealt with a numiber of objections which had been raised, a.nd ccntended that-, so far from the. proposals being injudouis to the State, it would be highly profitable in every, way.