THE MIDLAND RAILWAY.

Auckland Star, Volume XXXI, Issue 42, 19 February 1900, Page 5

THE MIDLAND RAILWAY.

APPEAL CASE DISMISSED.

LONDON, February IS. The New Zealand Midland railway appeal ease has been dismissed, with costs.

This case was an appeal by Mr J. Coates, receiver on behalf of'the debenture holders in the Midland railway, against a judgment of the Court of Appeal, declaring that the Crown was. entitled under the seizure, of three years ago to retain possession of the railway and of everything connected therewith which comes within the meaning of the word "railway" under the Act of 1881. When the case was before the Court of Appeal argument turned chiefly upon the meaning of the words "first charge" given to the debenture holders by the Act of 1881, and on the question of whether these words overrode the rights of the Crown to forfeiture of the line as a consequence of failure by the company to repay Government expenditure. The Appeal Court held that the rights of the Crown were in no sense a charge, and that had the Legislature intended to give the company's creditors the prior claim it would have said so in plain terms, which had not been done. Hence the appeal to the Privy .Council1 by the debenture holders. Mr H. D. Bell acted as one of the Crown's counsel, and Mr H. J. H. Blow, Under-Secre-tary for Public Works, was also at Home in connection with the case.