SUING GOVERNMENT.

New Zealand Herald, Volume XXVI, Issue 9325, 30 March 1889, Page 5

SUING GOVERNMENT.

ACTION BY THE MANAWATU

RAILWAY COMPANY.

BREACH OF CONTRACT.

CLAIM FOR £30,000. [BY TELEGRAPH. —OWN CORRESPONDENT.]

Wellington, Friday. Tiie Manawatu Railway Company have resolved to sue the Government for the payment of £30,000, under the following circumstances :—The facts have been brought before Parliament during the last two sessions, and were the subject of inquiry by the Lands Committee. They now seek the judgment of a Court of law under the Crown Suits Act. The contention of the plaintiffs is that the Government undertook to complete the company's endowment out of lands to the value of £30,000, which the Government might acquire within five years from tho native owners. These lands were to be selected within a certain radius, unless the Governor should be advised that such lands were required for public purposes. Some time after the Government of the day entered into negotiations with Major Kemp for the purchase of the Ilorowhenua block, and some money was paid on account of it. The purchase was ultimately completed. The question that arises is whether this was land acquired within the five years stipulated. The subordinate questions are whether tho negotiations with Kemp, and the mon<jy paid to him, brought the purchase within the terms stipulated ; whether the agreement to purchase from Kemp imposes an equitable obligation upon the Government to fulfil the arrangement made with the company. Legal opinion of very high authority has been given on this point before the committee of the House of Representatives. Mr. ravers is counsel for the Manawatu Railway Company.