The northern parts of Manawatū and Horowhenua were linked by the
Foxton - Wanganui railway during the 1870s. Foxton was connected to
Palmerston North in 1876 with the opening of the
Foxton Branch. The southern part of the Manawatū, including major settlements at
Waikanae and
Ōtaki, lacked railway communication. A military road through the Ngaio Gorge to Porirua harbour was completed in 1846 to support the
Paremata barracks during the early part of the
New Zealand Wars. In 1856, a horse-drawn coach service was established using this road to Porirua, from there along the beach to
Paekakariki, and finally inland along a rough road to Ōtaki. A trip between Foxton and Wellington could take up to 12 hours. A railway line between Foxton and Wellington was first mooted in 1854. By 1878, the New Zealand Government had completed some preliminary work for a railway between Wellington and the port at
Foxton. Construction of a government line between Foxton and Wellington was approved in 1878. Work ceased in August 1880, although a further Wellington to Porirua Railway Bill was presented to Parliament later that month. It was voted down on 24 August, with members expressing that a line to Porirua would be "nothing more than a branch line" and therefore a waste of money.
1880 – 1881: Company formation On 16 September 1880, a public meeting was held at the Odd Fellows Hall in Johnsonville. At the meeting,
John Plimmer proposed the formation of a private company to build and operate the line. The Wellington Chamber of Commerce supported the move, and a group of Wellington businessmen formed the Wellington and Manawatu Railway Company Limited. The company approached the central government to take over the railway works, and permission to reclaim part of Wellington harbour at Thorndon. The central government agreed to this in December 1880. To restart construction, the company needed to raise capital. In February 1881 the company released its prospectus and issued 100,000 £5 shares, paid up to 5 shillings per share. Shareholders would be called upon to pay the remaining £4 15s. per share in 5s. increments when requested by the company. By May 1881 43,000 shares had been sold, including a substantial package to Māori landowners in the Manawatū, who exchanged land along the proposed route for shares in the company. The biggest shareholders were John Plimmer, George Shannon and William Levin, who each purchased 2,000 shares. In May 1881, the company signed a contract with the government to purchase the land, formation and materials used for preliminary construction, which had already cost £30,000. The government made certain undertakings limiting the company's profitability and dividend payments, and made substantial grants of Crown land () to prevent land speculation and make the railway a viable entity. The total land grants were valued at £96,000.00. The contract stipulated the line was to be built within five years of commencement;, and included provision for the Government to purchase the company in the future at a "fair value", something that was later to prove contentious. On 23 August 1881, the company was registered as a limited liability company, and the Railways Construction and Land Bill was presented to parliament for its first reading. The Bill allowed joint-stock companies to build and run private railways, as long as they were built to the government's standard
rail gauge of and connected with government railway lines. The Bill was passed in September 1881, receiving Royal assent on 24 September. The Act had the effect of authorising the W&MR to proceed, and also the
New Zealand Midland Railway Company. On 22 March 1882, the company entered into a contract with the government, as required by the Act, to construct the railway within five years or forfeit any incomplete railway to the government.
1882-1886: Land purchases and construction Harry Higginson oversaw construction, which began in April 1882 and proceeded simultaneously from each end. Reporting to Higginson, engineer
Arthur Fulton was responsible for the northern section between
Longburn and
Waikanae. Arthur's brother,
James Fulton, was responsible for the southern section, between Wellington and Waikanae. The government had proposed to route the line via
Foxton. The company decided upon a more direct route to Palmerston North via
Linton, bypassing Foxton and connecting with the NZR at Longburn. The decision was strongly debated (see from Foxton. The company met with
Te Ati Awa chief
Wi Parata at
Waikanae in June 1884. Parata agreed to grant WMR the right for the company to build the railway across of tribal land at Waikanae, but said that the owners would not subdivide their land. In 1885, the WMR issued an additional 40,000 shares, increasing nominal share capital to £700,000. By November 1886, the company had also raised £560,000 in debentures. A total of £700,000 was spent during the construction period. Passenger service on the WMR commenced on the 21st of September 1885, with a regular service between Wellington and Paremata. Construction was completed by 4 November, when the last spike was driven by His Excellency
Sir James Fergusson, Governor of New Zealand. The line was formally opened at a ceremony in Palmerston North on 29 November 1886.
1886 – 1908: Operations The WMR was relatively successful and generated considerable revenue. Its land holdings proved to be a major revenue stream for the company; as sections of the lines opened, the land value around it increased and thus the WMR profited from its own operations. The new line opened up 5 million acres (2 million ha), and as the line length was 84.5 miles the company was entitled to £126,375 of land. The government allocated £96,570 of land within a 15-mile radius from the line and agreed to allocate £29,805 more of land from land acquired in the next five years. While the company gained agreement from Māori land owners to sell the Horowhenua Block, the government did not act within five years and ignored petitions to parliament to acquire the land from Māori. The government offered in settlement with WMR only £5,339 worth of land in 1894, knowing the company could not afford a lawsuit. The company had paid the government and local bodies £118,550, amounting to two-thirds of its paid-up capital and 20% more than the total value of the land grants. The cost of the railway and equipment to February 1905 was £1,010,197, with land grants amounting to £98,644. Since the grants were made, the value of the land had appreciated by £6,369,837, and land sales raised money to complete the railway. The railway's operations were advanced by standards of the time, having comfortable carriages, dining cars, electric lighting, and telephone communication between stations. By comparison, the government-operated network did not introduce dining cars until 1902. From 1895 the 53 lb/yard (26 kg/metre) rails on the Wellington-Plimmerton-Paekākāriki section were replaced with 65 lb/yard (32 kg/metre) rails. In 1900–02 the rolling stock was fitted with Westinghouse air brakes.
1908: Acquisition The WMR was bought by the government in 1908 (as soon as it could be purchased without penalty), and was integrated into the New Zealand Government Railways from Monday 7 December 1908. The staff, 123 in 1886–87, grew to 382 by 1908, of whom 324 transferred to the NZR. The NZR also took over 20 locomotives, 56 bogie passenger cars, 14 brake vans, 343 wagons and two 10-ton hand cranes. The company had paid a 6% or 7% annual dividend, a return averaging 13½% per year, and when the company was taken over shareholders received 55 to 60 shillings a share. Of the 633 shareholders on the Wellington register, 307 were "originals". ==Railway line==