THE MIDLAND RAILWAY.
The poStion of affairs in connection with the Midland Railway contract is about asmsatisfactory as it is possible to imagin that it could be. Only a few milesif line have been constructed, and it is nw impossible that the work could unde, any circumstances be completed witha the contract time of ten years, fully two-thirds of which has already expit>d, while a vast area of land is lockedup to the serious disadvantageoftheolony. Nor only is it now apparent that he Company is unable to complete its Undertaking within the time allowed, bit, further, it now very coolly intimates hat it has no intention of attempting to construct the Nelson-Reef ton sotion, and as regards the through line Irom Springfield to Brunnerton now pits forward fresh demands, which lave been very fittingly characterised as " simply insolent in their audacity." Those demands are that the cdony shall give them £850,000 for tHe surrender of their land grants, take over the line f roraßelgrove to Motueka at £100,000, purchase the lines already made from Brunnerton towards Christchurch, and relieve them of their liability to construct the Nelson-Reef ton section. It is clearly impossible that the Government could consent to such proposals, and it is certain Parliament will never sanction their acceptance. What then remains ? Either the Company must complete its undertaking in terms of the contract, or if it is not prepared to do this the sooner it throws up the sponge the better. In the latter event it will be for Parliament to consider as to what scheme can be adopted to secure the completion of the work. Unfortunately, if we recollect the terms of the contract correctly (we cannot at the moment lay our hands upon it), there are no sureties to fall back upon, nor, indeed, we think, any penalties to enforce other than the forfeiture of claims to land grants. Under the terms of most contracts, in case of the contractor's default, the person or authority letting the work can employ others to complete the work at the contractor's or his sureties' risk and expense, but (we write subject to correction) we do not think the Midland Railway contract enables this to be done. At unyrate we have a distinct recollection of questions being put on this very point in the House of Representatives at the time the contract was made, the answers to which j firmly fixed this impression in our mind. If we are wrong in this particular then all the Government has to do, is to fall back upon the guarantors' of the contracting Company, but if we are right then all that remains to be done is to consider what is tho best j course to be taken to retrieve a position which ought never to have been possible, and could never have occurred had a properly worded contract been entered into.
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Bibliographic details
Ashburton Guardian, Volume XIV, Issue 2970, 11 May 1893, Page 2
Word Count
480THE MIDLAND RAILWAY. Ashburton Guardian, Volume XIV, Issue 2970, 11 May 1893, Page 2
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