THE MIDLAND RAILWAY COMMISSION.

New Zealand Herald, Volume XXXVIII, Issue 11679, 14 June 1901, Page 7

THE MIDLAND RAILWAY COMMISSION.

[BY TELEGRAPH.—PRESS ASSOCIATION.] Wellington, Thursday. ?AT the sitting of the Midland Railway Coramission yesterday the addresses of counsel ■were taken. Mr. Bell, counsel for the Crown, in the course of his address, said the question whether Parliament should or should not decide to waive the prior rights of the Crown was a question for Parliament to determine, and one not referred to the Commission, but the Crown misrht think it right to estimate the proportions in view of the contingency and the possibility of Parliament deciding to waive the rights of the Crown. li the Commission determined to take lias course then he submitted it should he made plain ii* the report that the computation under which anything was found to he divisible among shareholders and debenture-holders depended entirely upon the contingency of Parliament so deciding to waive the Crown's rights. If the Commissioners found that the line was not duly maintained by the company he asked them to remember that the net gross earnings during the company's period ought to be "reduced by a further annual sum ■which ought to have been expended on maintenance, and he suggested that the increase in earning- during *he last year but one of the company's period might possibly be accounted for bv 'be financial currencies of the company, which demanded extreme economy of even necessary expenditure. Summing UP the evidence Mr. Pell said the net normal earnings of the railwa'* averaged over a period of 11* years were considerably less than £W per" annum (omitting tho year 13"3-i9. wlipn there was a flefioit'i, while from 1393 to 1900 they averaged about £3250 per annum. Dr. Findlay. for the receiver and debentureholders, urged the Commi-sif-n to give the de-h'mturo-holders' a benevolent and fair con!>ider;iti'>r of the evidence, and to give them the advantage of nn v reasonable doubt whore the evidence seemed doubtful or uncertain, and in particular in determining the future prosrects of the railway to make every fair that could he made in th°ir favour, so tbnt as far as was consistent with mbatantial justice, the Commission would in ▼iewint. their ca'o be generous rather than restrictive. The present position of the railr:-\->- was. he nrcerl. not dne to nnvtliine for which the comnartv or the debenture-holders were responsible. If the delientnrs-holders wore to be re'-finried their absolute loss, he nrged that loss could not be fairly valued on the ba«i* laid down h" the term' of flip romm'-=i"P. The total not fost of construction, including !ntero«t allowed, mn-t. be nrtred be. .f77Z.°B? which wan an amount far Jess than the amount actually paid bv the comw-tf. A good deal bad been made of the liigb prices paid to Kngltsb contractors, but Tip pointed out that that. was due to the desire of tbp oopinanv to enrrv out the terms of tbp rontraot nnder which it wa= oomrellcd to *pend £150.000 in one vear after the "it-nie? of contract.. The contract" werp lot, in En?Jand !>nd it wis mad" a condition that the vnrl should be done within a vear. All other work" wpre snbmi*tp'l to nub'-'c tender or conidrncted at pricps fixed fo v the main contract