RAILWAY ARBITRATION CASE.

New Zealand Herald, Volume XXXII, Issue 10008, 20 December 1895, Page 5

RAILWAY ARBITRATION CASE.

[Br TELKQIIAPn. -—PIIKSS ASSOCIATION.] Wellington, Thursday. The Arbitration Court resumed at 2 p.m. to-day.

Mr. Coopor, in addressing tho Court on behalf of the Company, sketched the echouie upon which the contracb was formed. Firstly, the Company was formed for taking ovor the contract made by certain parties in 1881. If tho contracb woro oxaiunod, it would bo found ib was never in contemplation by oifchor party that the speculation was to bo a payable one. _ The colony desired to carry out a work which it had not funds itself to do, and as an inducement for others to enter into such a venture, other bodies were subsidised with land grants to enable them to do so. Tho colony hold out to financial bodies that the work was one which could well be carried out if such a subsidy wero granted. Sir Dillon 8011, tho Agenb-Gonoral for the colony, had assured tho promoters of the Company that the Government looked upon the contract; as a valuablo ono for tho colony, as ib took from the people tho cost of construction, and for tho Company, as ie proposed to give them advantages of land grants represented to bo of great value. As to tho dobonturos, thero was no doubt from Mr. Burcholl's evidence that tho total sum required for the completion of the work was availablo up to the end of 1891. Thoro was, and would havo been, no difficulty in financing up till that date. In discussing tho question of damage.*, Mr. Coopor assumed thero was a breach of contract, on the part of the Crown, and he contended the moasure of damages should be equal to tho injury. Ho argued that whore two parties entered into a contract, and one of thorn by his acts prevented its performance, tho other party could suo for branch of contract, and was entitled to recover spocial and general damages. With regard to tho mining reserves, tho position ho took up was that they wore all improperly made, but in saying this ho did not make charges of misconduct against tho Government, but ho did charge them with breach of contract. Ho argued at soino longth in support of his contention that the mining reserves were improperly made, and that consequently thero had boon a broach of contract on tho part of tho Government. Tho Government had also oxceeded their powor in tho manner of making the various proclamations in connection with these resorves, the proclamations not boing made as provided in the contract. Mr. Cooper dwelt at considerable length on this point, his main contention being that no more than ten thousand acres should have been reserved at one time, and an independent judgment should havo boon formed by tno Government on cacli sopirato block. This was provided for in the contract for the protection of tho company, and having beon disregarded a breach of the contract had beon committod. Ho also submitted that these proclamations woro bad inasmuch as it had nob beon shown that the land was required for bona fide mining purposes. lie thought) it reasonable to deduce from tlio mass of evidence given that a groat bulk of tho land was taken, not for presont requirements, but for future requirements. At 5 p.m. the Court adjourned till next morning, wbon Mr. Coopor will continue his address. He intimated ho would finish by one o'clock to-morrow.