THE MIDLAND BAIL WAY

Otago Daily Times, Issue 8021, 5 November 1887, Page 1 (Supplement)

THE MIDLAND BAIL WAY

(Fbom Ode Special CoKnBSPONDEOT.)

Wellington, November 3.

Re the Midland railway, the Post this evening deals with the question in such a very lucid manner that I thought its remarks would be interesting. Here is the article:—" The resolution yesterday given notice of by Major Atkinson as to the Midland railway contract fairly embodies, we think, the alterations which the company, through Mr Alan Scott, requires to be made in the supplementary, contract psrsonally arranged with Mr Brodie Hoare in December last. The directors at Home made very extensive and important alterations in the terms of this contract; and as these were outside the authority given by Parliament, the Government, of course, were unable to concede them. In the now reainended contract several of the alterations made by the directors have been accepted by the Government, and others modified or rejected. The contract a3 now submitted to Parliament for its ratification appeurs to us fair and reasonable to oil parties. Clause 2, the sub-sections of which formed the principal stumbling-block, as they made the value and extent of the company's land grant absolutely dependent on the extent to which the Government might at any time exercise its right of making reservations for mining purposes, has been greatly altered. As the contract now stands, the Government abandons sub-section B, which provided for the Government taking alternate blocks with the company; and also sub-section C, which provided for the Government taking lands for settlement. In sub-section D, the words " tenancy or other occupancy," which the company had struck out, are retained; and sub-section C, which reserved from the company's selection any lands which, until the date of final settlement, might be taken up in any way under the mining laws, is etruck out; and sub-section F is altered so as to limit the Government's right to reserve land for mining purposes to a total of 750,000 acres. The proviso that all such reservations shall be of land bonafide worked for mining is omitted, If any lands within the area which the company may have selected are subsequently reserved, land of equal value, also within the area, is to be given in exchange. Clause 3 has been made to read so that if the company's 2,304,000 acres and the timber thereon -when sold do not realise the sum of £1,250,000, then such additional lands within prescribed area shall be granted as may be necessary to bring the total selling value up to the sum specified. The Government refuse to undertake the entire cost of survay, and therefore clause 8 has been restored to its original terms, by which the expense of survey is to be shared equally by the company and the Government. The Government also decline to accede to the company's proposals in regard to the grant of mutual running powers over each other's lines, or to undertake the working of the company's sections of the line at the Nelson and Canterbury ends on the terms proposed; but the Government guarantees to the company that it will undertake to work these lines on terms as favourable to the company as shall be given in regard to any other privately-owned railway in the colony. With regard to the power of deviation in respect to route, it is provided that no steeper grade or sharper curves shall be made in any deviation than is provided for in the original plans. The time for the payment of the £150,000 provided for in clause 50 of the original^contract is extended from July 31,1887, to December 21, 1888; and the provision that the company is not to be bound to commence work at the Belgrave and Springfield ends, or until the necessary capital is obtained, is struck out. The clause allowing land to the value of £30,000 in respect to each of the sections of railway to be placed in trust for the benefit of the_ company as soon as contracts to the satisfaction of the Agent-general are entered into for the construction of the said sections is accepted by the Government. The right sought for to bringany arbitration under the High Court of Jurisdiction in England is refused. It is required that the company shall be incorporated in New Zealand under the Companies Act; that the works at Springfield and Belgrave shall be commenced at once; and that the company shall not sell any of its land at a less price than the minimum to be agreed to by the Surveyor-general. In its present amended form the contract is certainly one of which the House should approve as fair to the company and satisfactory to the colony.