THE MIDLAND RAILWAY.

Evening Post, Volume L, Issue 124, 22 November 1895, Page 2

THE MIDLAND RAILWAY.

ARBITRATION PROCEEDINGS. The Arbitration '""onrt in connection with tie depute between the Midland Railway Company and tho Government mot at the Legislaiivo Council Chamber tbia morning — Sir Cbar!e3 Lilloy and fcir lirace Burnside constituting the Court. Measrs. 5. Hatcliisan (Wellington), Tbeo. Cooper (Auckland), and Jones (Ureymouth). appeared aB connsol for the Company, and Sierra. Gully (Wellington), Stringer ( hri£tcburch), and Jr. Fiudlay ( Welliueton) on bebaH of tbe Goven.ment. Mr. Gully intimated that Sir Robert st~ut wou!d lead the case tor the Crown. Tho Arbitrators said they deeired that the Hon. K. Blake, QO, MP, the umpire sele -tod, should sit with them and hear the evidence. This course was agreed to. 'Ihe Court then called upon counsel for tbe Company to proceed with its case. Mr. Gco Hutonison asked to be allowed till to-morrow to file particulars, as counsel were not aware that they would be called on to-day. This request was grauted. .After Mr. Gully bad raised various points touching jurisdiction for subsequent consideration, the Court adjourned until 10 a.m. on Monday, the Arbitrators indicating that they wonld 6it from 10 a m. to 5 p m. on each day, with an interval for luncheon. It is expected that tho proceedings will last three months. The circumstances ont of which the present proceedings have arisen are as follows : -In 1884 tho East and West Coast, Middle Island, and Kelson Railway and i ailwavs Construction Act was passed, offering various advantages to induoo the construction of the railways referred to. Ciown lands for a dittinco not exoeeding 15 miles on either side of the line were to be withdrawn from sale and surveyed into rectangular blocks the constructors to be allowed the choioo of altornate blocks. ■Should these not be sufficient, suitable land adjoining the line, and other lands specially affeced by the construction of the railway, were to be set apart lor a similar purpose. Tho constructors were further to be entitled to any coal found on the land comprised in the endowments. Certain lands described in the schedules of tho Westland and Nelson Goldfields Administration Aotof 1877, and lands then used or about to be used for ni'ning purposes, were not to be affected by tin contract. The Act was passed in oonsequenoe of negotiations which had taken place between Government and certain gentlemen interested in the construction cf the line, with whom a contract was entered into on tbe 17th January, 1885, an'l tubaequently ratified by Parliament, and oil tbo 30:h April, 188(3, tho promoters tr.-.nbterrcd their contract to the Midland Wailway Company, fr rmed for tbo purpose of construotiug tho line. An amending Act was passed, authorising tho Governor to enter into anew contract with the Company, as Eome of the pr- .visions of the original coutraot were found to be unworkable, and on 3rd August. 18*8, tho now contract was exeouted. It provided that tbe works were to be completed within ten years from 17tb January, 18S5, the date of tho original contract, or such further time aa might be allowed under the provisions of the contract. In 1889 tbo Company applied to the Government for permission to change, the route of tho line from the western to the eastern sido of 1 ako jjrnnuer, and this was given legislative eff.jct to in 1890. when other modifications were also made. Die* pntes arose from timo to time between the Ccmpany end tbe (loverninent as to the interpretation of oert&iu sections of the contract and the work of tho line generally. In 1802, the Company, without prejudice to its legal rights, petitioned for the appointment of a Committee to coneider the position and renort on its proposals for modifications of the coct-act, and tbe numerous grievances which had developed. The Committee had before it voluminous correspondence between tbo Company and the Government as to these things and as to extension of time for the completion of tbe work / 1 recommended oortain modifications of conditions. »With those the Company was dissatisfied, and lost year a Peleot Committee was appointed to cons'.der the position and the correspondence subsequent to the finding of tho previous committee The rt-snlt was a recommendation that, a new oontraotbo entered into, materially modifying tbe original scheme and its scope. A Bill embodying tho recommendations was brought in by the Premier and thrown out by tho House, and the Company forthwith served tho Govornment with a notice of its desire for arbitration, under soot ion 47 of its contract, on the points at issue. Sir Charles Lilley, late Chief Justico of Queensland, and Sir Bruoe Burnside, late Chief Justice of Ceylon, were eub c equenlly appointed arbitrators by the Government and tbe Company respectively, and met in Wellington last April, but as thoy ware unable to agree upon an umpire, the time for tbe making of their award was enlarged to 30th January next, a period which will, no doubt, bave to be further enlarged. Meantime, the Government, acting on the advice of counsel, seized the line under the provisions of the Railways Construction and land Act, 1831, on 25th May last. The Company's claim will not be filed till to-morrow, bnt it is understood that it will mainly urge delayß to which it is claimed it wan subjected by Government action since 18S2, in respect of applications for extension of time, dealings in connection with land grants, and various other matters, refusal of extension of time, improper reservation of land grants for mining purposes, regulations made under Beotion 33 of the contraot injuriously affecting the Company, and alterations in the incidenoe of taxation detrimental to the Company's interests.