THE MIDLAND RAILWAY.

Hawke's Bay Herald, Volume XXX, Issue 10000, 27 May 1895, Page 3

THE MIDLAND RAILWAY.

THE LINK TAKEN OV£K BY THE GOVERNMENT.

tions, and documents connected with the Midland Railway lines, and If these are given over it is generally understood that the extension of theChristehurch line will ba proceeded with at once by tbe Government. LATER. The Minister of Railways states that the action in connectiou with the Midland railway was taken on legal advice, and says the company have undoubtedly committed a breach of contract),

[BY TELEGRAPH.] Greymouth, Snnday. On Saturday afternoon Mr Thompson, Resident Engineer, acting unoer instructions from tbe Government?, sod being armed with tbe Governor's warrant, proceeded t,o Stillwater, accompanied by Mr Blow, Under-Secrotary for Public Woiks, Mr Gaily, Crown Solicitor, Mr M'lntosh, railway manager, and Mr Hannon, Crown Prosecutor, and took formal possession of the Midland railway Hue and plant. PosseeoiQu was taken in accordance with the various provisions in the Railway Construction and Land Act), 1881. Section 123 provides that if there be unreasonable or inexcusable delay in the completion ot tbe line workß, or if there be a breach of contract, the Governor may take possession and assume tba management of ariy railway belonging to the company, and if ho thlnka Gt and wise conduct) the traffic thereon, charging the company with any expenditure which may be entailed or expended, md crediting the company with all earnings and receipts, Accounts shall be taken at Intervals of not longer than six months, and the balance, It any, paid over to tbe company, or if there be a loss payment may be demanded, and If such payment is cot forthcoming within 12 months fiom dna date, Government) bare power to give three months' notice of their intention to assume the ownership of the railway, and failing payment within tbat period the railway will vest In tbe Governor absolutely. Under seotlon 24 the company have the right to apply to the Supreme Court, constating ot one Judee only, and his decision, given In a summary manner, shall be final. He, however, can only decide whether there has baen unreasonable or inexcusable delay, or wilful breach of contract, and if he finds there has been either or both of these, the action of the Governor in taking possession cannot be interfered with ; but such application will not prejudice any Becnrlty given by the company to Government for the due performance of the contract. Mr Thompson was the instrument nsed to expedite the Governor's order, which is dated Auckland, 13th May, 1895, and bo arrived In Greymouth on Friday. The warrant set forth at length that In the opinion of the Governor unreasonable and nnexcusable delay has taken place, and a wilful breach of contract been committed. The contract expired on January 17th. Government) estimates that less than onefifth in expenditure and one-fourth In nlleage of the total amount baa been expended and completed. Mr Thompson, accompanied by tbe gentlemen named, proceeded to Stlllwater, and producing the Governor's order, informed Mr Wallace of the proceedings, and then drove a peg marked with a broad arrow ip tbe railway lice, declaring at the same lime that the property became vested in the Governor. Mr Wallace and his staff were informed that their services wonld be rt quired as nsual, bnt the line wonld be nnder the control of Mr M'lotosb, district railway manager. Tbe running of trains on the line will be exactly as heretofore. Application has been made to Mr Robert Wilson for all plans. Bpeoifioa