In order to examine the issue, a Royal Commission was established in 1924 consisting of English railwaymen Sir Sam Fay and Sir Vincent Raven.
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A couple of weeks after the new company was officially launched, the State Owned Enterprises Minister Trevor Mallard announced that the government was investigating the possibility of assembling new locomotives at Hutt Workshops, then operated by United Group Rail, from imported parts.
A further seven locomotives were assembled at the Hutt Workshops and two at Addington Workshops for use on the Otira - Arthur's Pass section of the Midland Line.