THE MIDLAND. RAILWAY ARBITRATION.

Auckland Star, Volume XXVI, Issue 308, 30 December 1895, Page 2

THE MIDLAND. RAILWAY ARBITRATION.

From the very oubßob, we regarded it as quite inconceivable thab bho Midland Railway Company could substantiate its claims against tho colony. The Company had so notoriously failed bo carry oub tho undertaking which ib had contracted for ; had come so repeatedly to the Government} for concessions, and bad finally intimated definitely its abandonment of the Nehon section of tho work, while demanding a subsidy in cash instead of land, as agreed upon under the contract, ior the uncompleted section between Christchureh and tho West Coast, thab wo were puzzled to know on what grounds any claim was made. Apparently, however, tho Company's representatives entered upon the proof of their claim for a million and a-half sterling with a light heart. It thia was genuine, and not assumed, tho award of Mr Blake, M.JP., Q.C., muab have groatly astonished the Cotnjuany's solicitor when ho lifted ib thia morning. Nob only has bhe arbitrator found that tho Company tins no claim for damages with respecb to transactions under the contract while the Company retained possession of tho line, but he further docides that there had beon such wilful breaches of the contracb on the part of tbo Company that tho seizure of tho Hue by tho Government wan juetitiod. With regard to the ofl'ecb of this seizure it muyb bo» boriro in miud thab the Company do nob thereby ltfse tueir intoresb in the property ; thoy can recover ib ab any timo within twelve months by ro-paying the amount expended by the Government upon the line. N»p doubt eomo ninicabio arraogemont will bo como to by which tho debonturo holders will get) a fair consideration for the value of tho work uctually done.

Thero could bo no more complete vindication of tho action of the Government with respect to this lino than ia cout-uined in Mr Blako'a award. Tho arbitration was forced on by tho Company againab tho wiah of tlio Government, who v/oro of opinion that the matter was one for tho Supremo Comb to deal with. Mr Blaka, therefore, came to tho colony certainly without any prejudice in favour of the Government. Theu again tho Government arbitrator, Sir Charles Lilley, dissented from, bho Company's arbitrator Sir Bruco Burnaide, uncl also fiom tho umpire Mr Blako, with regard to the legal right of tho arbitrators to deal with the./ Company's claim for damages on account of the seizure of tho lsne. Tho umpire believing that this question came within tho legal powers of the arbitrators, proceeded to adjudicate upon it at tho request of tho Company, despite the opposition of counsel for the Crown. Hia finding, adverse to the Company, after a most painstaking investigation, is therefore the more notable

Our telegrams do not abate whether tho Company intend to appeal, bub wo presume thab there is a likelihood of that course being followed, and the case may yob find its way to the. Privy Council. In the meanwhile, however, tho finding of a man so eminently qualified bo siib evidence, and so conspicuously impartial, as Mr Blake is, wilH furnish tho besb answer to those who have besmirched tbo good name of the colony in connection with its dealings with tho Midland Railway Company. <