The Westport Times AND CHARLESTON ARGUS. In the cause of Truth and Justice we strive. TUESDAY, SEPTEMBER 19, 1871.

Westport Times, Volume V, Issue 863, 19 September 1871, Page 2

The Westport Times AND CHARLESTON ARGUS. In the cause of Truth and Justice we strive. TUESDAY, SEPTEMBER 19, 1871.

The negotiations with Messrs Brogden and Sou, iu respect to railway construction, have resulted in two proposals or agreements, either or both of which the Government have the power of adopting. Under agreement No. 1, the conditions are to make and provide railways and plant to cost £4,000,000 before the 21st of June 1879. The interest on capital employed during construction of a railway and in providing plant is to be added to the settled cost, and upon that sum the Government are to pay to" the contractors such a sum as shall give them five and a quarter per cent, interest upon the total capital expended, after defraying all working expenses, maintenance, &c. The Government are further to grant to the contractor three millions of acres of land, one fifth only of which land need be suitable for settlement and for settlers to take immediate possession of. This guarantee is to continue until the expiration of forty years, or the purchase of the railways or any section thereof at an earlier period. Payments on account equivalent to one-third of the cost of the railway and plant are to be made to the ; contractors as follows :-— u When any moneya are paid out to the contractors from the fund deposited by them with the Colonial Treasurer, a sum equal to one-sixth of the amount so paid out is also to be paid to them on account of the subvention and when manufactured materials or plant are delivered, the Government are to pay one-sixth of the value to the contractors according to the certificate of the Government Engineer; the balance of the subvention namely, one-sixth of the cost of construction and plant to be paid on the completion of each section of railway." When the net receipts are sufficient to pay a dividend exceeding 8 per cent, on the aggregate cost after deducting the subvention, the excess is to be first applied to the repayment of any advances made by the Government beyond the 5 J per cent guarantee with interest at the rate of 51 per cent added, and any available balance is to be divided between the Government and the contractors. The contractors, within ten 'years after the commencement of the railway, are to land not fewer than 10,000 immigrants, the Government paying for each immigrant £1 annually for ten years. The foregoing are the chief features of the larger scheme which will be submitted to the approval of members. Mr Vogel has felt it necessary to comment on the impossibility of realising the expectations of last session as to the terms upon which the colony could obtain the construction of railways; and, certainly, looking at the terms of the larger proposal it must be admitted that that they fall very far short of what it was supposed English capitalists would have been willing to enter upon the speculation. Apart from the heavy bonus to be paid upon the immigration, and the alienation of three milions of acres of land, it will be seen that one-third cf the entire capital must be immediately provided, and the Government are tied down to an expenditure within eight years' of £4,000,000 representing an annual interest of £210,000. Nor does this represent the whole of our liability, as the Government take upon themselves the risk of working expenses. It is too much to hope that many sections of the railway for a number of years will yield sufficient revenue to pay for their working, and in view of this contingency, the financial burden is

likely to exceed considerably the amount of interest payable annually on the expenditure. Were it not that an alternative arrangement remained for the Government to accept, the negotiations must have been deemed a failure. The terms of proposal No. 2 are such as to render it almost certain that its acceptance will be preferred. The expenditure is limited to £500,000, and, although a quarter pur cent, higher guarantee is demanded, it is freed from the land bonus, and the payment in advance of one-third of the total capital required. The guarantee is to be paid for thirtyfive years; and at any time within twenty years from the completion of any railway, the Government may purchase upon 12 months' notice. We accept it as certain that if the Assembly is limited to the question of choosing between the two proposals, it will select the smaller, as offering greater advantage and less risk.