THE MIDI AND RAILWAY.

Auckland Star, Volume XXXIII, Issue 232, 30 September 1902, Page 6

THE MIDI AND RAILWAY.

The vote of £150,000 placed on the Supplementary Estimates in settlement of the claims made >by the de-benture-holders of the Midland railway is, we presume, the outcome of Mr Seddon's negotiations with th<» representatives of that unfortunate and ill-advised corporation in England. The protracted litigation which ensued after the company failed to carry out its agreement with the colony for the construction of the line terminated in a decision of the Privy Council that neither the company nor the debenture-holders had any lega 1 claim against the Government for their seizure of the line. At the same time, we think: that on ground-

of equity -and expediency, it was in advisable for the colony to stand o^-

its strict legal rights. Th© company actually spent £1,108,628 in connect.on with the railway, but £454,21? of this money went in supervision C( mmissions, salaries, cost of raisincapital, interest charged to capital account, and other incidental matters The colony also contributed £313,000 in money realised from the sale o lnnd endowments. When all fair deductions were made, it was shown b\ evidence adduced before the Royal Commission that the line seized by the Government wiould have cost th< Public Works Department £600,0GC bo construct, and on that basis the colony was a gainer 'by the seizure to the extent of £287,000. Th< Royal Commissioners, however, in view of the unreproductive character of the railway, estimated its selling value at £ 192,000 only, or £121,000 less than the colony had contributed in land endowment. Tht

Public Accounts Committee, to whicr this report was referred, however, in view of the fact that Parliament ha\ dtcicled to continue the construction of the railway, regarded the work actually) done toy the company as o1 <>reater value than the Commissioners' estimate, and they recommended the payment of £20,000 to the shareholders and £110,000 to the deben ture-holders in full and final settlement of all their claims, on condition (hat "each debenture-holder and each harebtolder shall give a receipt to 'he Receiver and the Attorney for the company for the money stating that the colony has dealt equitably and justly with him, and that he is fully satisfied." The debentureholders declined this offer, and. st 'matters stood when Mr Seddon went to __nig_and. The present offer i-. £20,000 more than that made last year, and if it be the means of settling up a very unpleasant business, which has been made the pretext for a good deal of misrepresentation to .he injury of the colony in England, we believe the settlement will give general satisfaction throughout New Zealand.