The Mount Alexander and River Murray Railway Company.

This Company was projected in 1852, with a capital of £750,000, but, as this proved insufficient, it was increased to £1,000,000. The Government advanced £5,000 towards the payment of preliminary expenses before one shilling had been subscribed by the shareholders, and not more than £1,500 of that sum had been expended, when the Bill, the details of which did not receive sufficient attention from the Legislature, was passed.

The Act conferred upon the Company a complete monopoly of the chief railway enterprise of the country. The Government could exercise the right of purchase only after the expiration of ten years, and between that time and twenty-one years, on condition of paying £250 for every £100 of the capital stock of the Company, or a sum equal to 25 years’ purchase of the annual divisible profits, estimated on the average of the three preceding years.

For some time after the passing of the Act, the whole of the capital consisted of the balance of the £5,000 granted from the Public Treasury. Although the Government had guarantee share-holders for 25 years, a dividend of five per cent. on their paid up capital out of the public revenue, the directors had to announce at their first half-yearly meeting that only £2,281 in shares had been subscribed. During the ensuing months sufficient shares were sold to enable the Company to commence work, and a contract was let for a portion

Motor generator sets and switches in the Hutt Valley Sub-Station. The illustration shews a 324 k.w.d.c. generator in the foreground and a 225 k.v.a. single phase alternator in the background.

of a branch line from Melbourne to Williamstown. Within twelve months of the incorporation however, the directors realised that their position was hopeless, and offered to dispose of the Company's rights and privileges to the Government, which, however, declined to accede to the Company's terms.

The directors then made a final effort to obtain sufficient funds to complete the Williamstown branch line, and, although they sold additional shares, increasing the number on the share register to 5,127, representing a subscribed capital of £130,000, it was found to be insufficient to complete the line. The directors recognised that their only hope of being able to finish even this small portion of their undertaking entirely depended upon an effort to raise money in England, but this expectation also failed them.

At it was impossible to raise the necessary capital in the Colony, the Government was again approached with a view to purchasing the Company's property and assuming its liability. After lengthy negotiations, it was agreed upon that the Government pay to the Company the amount of capital then paid up by the shareholders, payable in debentures issued at par, bearing interest at five per cent., payable in October, 1873. The Government also agreed to execute unfinished contracts and discharge all reasonable liabilities. In March, 1856, the Legislative Council passed the necessary measure to enable the Government to take over the Company's properties.

“Oh! what a goodly scene. …!”
—Coleridge.
(Photo, G. S. Desgrand, Brisbane.)
The majestic setting of the Dart River, at the head of Lake Wakatipu, South Island, New Zealand. (Reached by rail and Government lake steamer from Invercargill or Dunedin.)