THE MIDLAND RAILWAY.

New Zealand Herald, Volume XXXII, Issue 9830, 27 May 1895, Page 5

THE MIDLAND RAILWAY.

GOVERNMENT TAKE POSSESSION OF LINE AND PLANT.

[By TELEGRAPH.— ASSOCIATION. Greymodth, Sunday. On Saturday afternoon Mr. Thompson, resident engineer, acting under instructions from the Government, and being armed with the Governor's warrant, proceeded to Stillwater, accompanied by Mr. Blow (UnderSecretary for Public Works), Mr. Gully (Crown Solicitor), Mr. Mcintosh (Railway Manager), and Mr. Hannon (Crown Prosecutor), and took formal possession of the Midland Railway line and plant. Possession was taken in accordance with various provisions in the Railway Construction and Land Act, 1881. Section 123 of that Act provides that if there be unreasonable or inexcusable delay in the completion of the line or works, or if there be breach of contret, the Governor may take possession and assume the management of any railway belonging to a company, and, if lie thinks fib and wise, conduct traffic thereon, charging the company with the expenditure which may be entailed or expended, and crediting the company with all earnings and receipts. Accounts shall be taken at intervals of not longer than six months, and the balance if any, paid over to the company, or if it be loss, payment may be demanded ; and if such payment be not forthcoming within twelve months from due date the Government have the power to give three months' notioeof their intention to assume the ownership of the railway, and failing payment within that period the railway will vest in the Governor absolutely. Under section 24 the company have the right to apply to the Supreme Court, consisting of a Judge only, and his decision, given in a summary manner, will be final. He, however, can only decide whether there has been unreasonable or inexcusable delay, or wilful broach of contract, and if he finds there has been either or both of those, the action of the Governor in taking possession cannot be interfered with, but such application will not prejudice any security given by the company tc the Government for the due performance of the contraot. Mr. Thompson was the instrument used to execute the Governor's order, whioh is datod Auckland, 13th May, 1895, and arrived in Grey mouth on Friday. The warrant sets forth at length that in the opinion of the Governor unreasonable and inexcusable delay has taken place, and p. wilful breach of the contract has been committed. The contract expired on January 17th. The Government estimate that less than one-fifth in the expenditure and one-fourth in the mileage of the total amount has been expended, and completed. Mr. Thompson, accompanied by the gentlemen named, proceeded to Stillwater, and producing the Governor's order, informed Mr. Wallace of the proceedings, and then drove a peg marked with the broad arrow in the railway line, declaring at the samo time that the property became vested in the Governor. Mr. Wallace and his staff were informed that their services would be required as usual, bub that the line would be under the control of Mr. Mcintosh, district railway manager. The running of trains on the line will bo exactly as heretofore.

Application has been made to Mr. Robb. Wilson for all plans, specifications, and documents connected with the Midland Railway lines, and if these are given over ib is generally understood the extension of the Ghristchurch line will bo proceeded with at once by the Government.

Wellington, Sunday. The Minister of Railways states that the action in connection with the Midland Railway was taken on legal advice, and says that the company have undoubtedly committed a breach of contract.