THE MIDLAND RAILWAY

Auckland Star, Volume XXIX, Issue 254, 27 October 1898, Page 8

THE MIDLAND RAILWAY

DEPUTATION TO THE PREMIER

WELLINGTON, October 10.

A deputation of Canterbury, Westland and Nelson members waited on the Premier and the Minister for Public Works this afternoon witli respect to the present position and intention of the Government as to the Midland Railway. Mr Seddon, in reply, said the colony could not take possession of the line until default of 15 months had been made by the Company of payment of moneys expendo;). If claims Avere met Avithin that period the Crown lost its right to take the railway over. It Avould be a sign of great weakness if the Governmenb asked for a compromise for the purpose of having the Company's lands opened for settlement. The representative of the Company had suggested to him while in London a new contract Avhereunder, instead of land grants, the colony should guarantee, at 3 percent, for 10 or 15 years, all the moneys expended on tlie line. This proposal involved a guarantee of £450,000 for 15 years, and the land grants yield Avas £500,000. The Government Avas prepared to accept this, but Mr Young had informed him that it was not likely to lie accepted by the debenture holders. The opinion of'the Government Avas that the time had arrived when the colony should bring an action against the Company for.damage incurred by their default, and ask the Courts to declare the lands open for settlement.