Joint Stock Enterprise.

Naturally these findings were not favourably received in many parts of the Colony, and considerable impetus was given to the construction of private railways—either under special legislation or under the Railways Construction and Land Act, 1881; which provided for the construction of railways and/or the working thereof by joint stock companies; grants of Crown Land to such companies being author- page 42 page 43 ised, as being conducive “to the more speedy settlement of the Colony.” Contracts betwen Companies and the Crown under this Act had to be ratified by the General Assembly. There was power under the Act for the companies to receive (under certain circumstances) rating powers over the areas benefited; and to have grants of alternate sections of Crown Lands in designated areas set aside for that purpose (usually within 15 miles of the railway). At any time ten years or more from the opening there was power for the Crown to purchase the railway at a price to be determined by arbitration.

The most important railway constructed under this Act was that of the Wellington and Manawatu Railway Company Limited. This Company was formed as a result of a public meeting held in Wellington on 30th September, 1880, when it had become known that the Commissioners had reported against the line from Wellington to the Manawatu River. The Company was registered in 1881 and commenced construction in 1882, the last spike-being driven at Waikanae in 1886. Its line, 84 miles long, ran from Wellington to Longburn on the Manawatu River, there connecting with the Government line from Palmerston North to Foxton. The rails were mostly 53 Ib. to the lineal yard, but 65 Ib. rails were laid on most of the steeper gradients; of which one was as severe as 1 in 36. The land allotted this Company under the Act was some 215,000 acres. In 1900, the share capital was £170,000 and there were 51/2% debentures outstanding to the value of £680,000. The Company had paid £31/2% in 1891, and thereafter dividends of 5%, 6% and then 7% per annum were the order of the day till the Company was bought out by the Government for £933,759, on the completion of the North Island Main Trunk Railway in 1908.

The next most important company formed under this Act was the New Zealand Midland Railway Company Limited (formed to link Belgrove in Nelson with Springfield in Canterbury through Westland). This Railway was taken over by the Government in 1895 after 75 miles had been constructed at a cost of about £1,300,000, litigation on the matter dragging on till the end of the Century.

Not all private railways authorised under the 1881 Act have seen the light of day (e.g., the Tauranga, East Coast, and Hot Lake District Railway).

On 30th October, 1884, a resolution was passed by the House of Representatives in favour of purchasing most of the smaller of these railways. The majority of the negotiations were completed in 1885, though it was 1886 before the negotiations with the Waimea Plains Railway Company Limited were completed. The Kaihu Valley Railway-another private railway in North Auckland-was not taken over till 1893, it having defaulted on its debenture some time previously.

(To be continued.)