THE MIDLAND RAILWAY.

New Zealand Mail, Issue 1057, 2 June 1892, Page 38

THE MIDLAND RAILWAY.

PROPOSED RELINQUISHMENT OF LAND GRANT. GOVERNMENT GUARANTEE WANTED. It transpires that within the past few days an important proposal for modification of agreement has been made to the Government by the Midland Railway Company through Mr Wilson, their manager in the Colony. Substantially, the proposal is that the Company should release the land grant, which would then revert to the Colony, on condition that the Government guarantee 3 per cent upon the total cost of the railway. As the cost, including the Foxhill and Motueka Valley section, will be L 1,600,000, this means an annual liability of L 48.000, against which has to be placed as set off the profits made by working the railway, which are estimated at L 60.000 a vear, beginning at the end of three years from the present time. In support of the proposal, Mr Wilson urged that the land, if released, would ba subject to the ordinary land laws of the Colony, and would be available for purposes of settlement. It is supposed, however, that considerations connected with the English money market have weighed with the company in making the offer. No doubt financiers would rather have the guarantee of the Colony instead of the security of the land, subject to the conditions attached to the grant. The Cabinet, after full consideration, have resolved not to accept the proposals in their present simps, believing that they are not in the interests of the Colon- - . In all probability Mr Wilson will submit modified proposals prior to the meeting of Parliament, and these proposals the Cove- M>.ent will have submitted to a committee for reportTiefore coming to a final decision.