MIDLAND RAILWAY.

Lyttelton Times, Volume XCIX, Issue 11593, 31 May 1898, Page 5

MIDLAND RAILWAY.

THE- PETITION OF THE DEBENTUREHOLDERS. [Pbe Press Association.] WELLINGTON, May 30. The petition by debenture-holders of the Midland Railway Company for relief consequent upon the action of the Government in seizing the line, and for the appointment of a receiver, has been filed in the Supremo Court, The petitioners, who nominally represent the whole body of debenture-holders, are Messrs Clement Horace Thomas, Peter Moir and Henry Cowie, each of whom holds a debenture' of the value of £IOO, which debentures are part of the series of an issue of £745,000, first mortgage debentures of the company. The debentures, the petitioners state, were issued subject to certain provisions, one of which was that the principal became payable if tho company should commit any breach of or incur any penalty of forfeiture under the contract for the construction of the line or under the terms of the East and West Coast (Middle Island) and Nelson Railway and Railway Construction Act, 1884. On May 25, 1895, the railway was seized by tho New Zealand Government on account of an alleged breach of contract. On Sept. 7, 1897, tho petitioners caused their respective debentures to be presented for payment, but payment was refused, and has not since been made. On or about Nov. 19, 1897, the petitioners gave notice to the Governor of the colohy of their intention in case the Governor should not, within three months after receipt of such notice, give the petitioners under the sixteenth section of the Act notice pf intention to purchase or not to purchase, to apply to a judge of the Supreme Court for relief, and particularly for an order that such part of the New Zealand Midland Railway Company’s property as is liable under tho provisions of the Act for payment of the principal moneys secured by debentures should be sold, and for the appointment of a receiver of the rents, income and profits of such property. More than three months having expired since the service of the notice, and the Governor having failed to give the petitioners notice of his intention to purchase or not to purchase, the petitioners therefore ask: (1) For relief under the East and West Coast (Middle Island) and Nelson. Railway and Railways Construction Act, 1884 ; (2) that an inquiry be ordered as to what property exists in New Zealand belonging to tho company or to which tho company is entitled and which is liable under the provisions of the said Act for payment of money intended to be secured. by the said debentures; (3) that it he ordered that such property he absolutely sold at such time or times, place or places and either altogether or in parts and subject to such terms and conditions as may be directed; (4) that in the meantime a receiver of the rents, income and profits of such property be appointed'; (5) that your petitioners be granted such further or other relief as the circumstances of the-case may require.