THE MIDLAND RAILWAY.

Hawera & Normanby Star, Volume XXXI, Issue 3037, 5 June 1895, Page 2

THE MIDLAND RAILWAY.

As to tbe legality of tbe eeizare of the Midland Bailway, that is a issue which will have due consideration by tbe law oonrte. Tbepoiotof the matter appears to be tbe question whether tbe default oi tbe company was " wilful" within tbe meaning of the Act. Tbe oase for tbe company is understood to be that the aotion of the Government and the Parliament has prevented it raising money, and Abat in oonseqcwnoe of tbia, and not by reason of any wilful default of its own, it has so far been unable to complete Ub contraol. Therefore, tbe seizure by, tbe Government addß another, big item to tbe bill presented against tbe colony. The whole tbing v a terrible muddle, nnd will, we doubt cot, prove a, very txpeueive matter both for shareholders and for the taxpayers in New Zealand. In tbe end the colony, no doubt, will have to bear tbe brunt of tbe Joes, and deserves to. Tbe great misfortune is tbat Canterbury, Nelson, and Weetland— the parties to the huge logrolling sobeme of 1888— and the other constituents of the majority whioh foroed tbroUKh the Act under which a company w«s induced to undertake tbe work, oaunot be saddled witb tbe responsibility. A minority gallantly fought against the scheme, bat to no purpose, and now must help to pay tbe cost of its advioe being nejileoted. But, apart from the direct loss, little or much, which is sure to be the outcome of the impending litigation, a grave danger appears to threaten, in tbat the Government propose to fioieb tbe line, for wbicb, if tbe proposal be carried out, there must inevitably be borrowing The Wellington Post prophesies, further, tbat this means tbe renewal of a general borrowing polioy on very undesirable lines. The Post is so Btrong an opponent of the Government that its fears may be discounted somewhat, but with contiderable force i» suggests Hie following as tbe probable coarse of events:— ••If the work is to be proceeded wiib.money mast bo borrowed for the purpose. And jf n ban is required for tbe Midland Railway, sufficient will also have to be borrowed to satisfy other portions 6f tbi oolooy with regard to the construction of

lines in whiob thay are interested. Canter* bury and Wjsstland will.no doubt, support a loan for tbe completion of i the Eaßt to West line, and the Kelson vote, " necessary, will be seoarsd by tbe promise to go on with the Reefton Foxtail] extension. Bat Nelson, Canterbury, and the West; Coast do not command a majority in the House. Otago, Southland, Anokland, Wellington, and Taranaki votes must also be secured. The loan, therefore, mast be sufficient to provide for large works on the Otago Central, Main North Island Trnnk line (by ihe Central Route and with branch to New Ply* month), Seaward Bash line, and probably some extension north of Auckland. And then under tbe influence of this revival of a Publio Works polioy things will boom for a time. The money can no doubt be obtained cheaply now, and it will be easily spent. The only way in which the Government oan obtain means and authority for proceeding with the Midland Bailway is by giving sops in form of other lines to* other parts of the colony. It is to be in a position to buy support in this way that the Government has been shaping its polioy in regard to the Midland Railway Company tor a oonple of years past. With a large railway loan to expend, it thinks it oan make its position secure for a fresh lease of offib?. If tbe Government does not intend to go on witb tbe Midland Railway its -seizure of tbe line musl alienate Canterbury and Westland sup* port, as patting a final stop to aay hope of getting th,e line made. This support the Government oannot and dare not risk. It will retain it 05 providing for the construction of tbe line, and it will bay support for the scheme by inclnding other lines as well. It is desirable that the pablio should clearly understand what ftje aotion taken by Government towards the company portends, and to what the colony is now in a measure committed."