THE MIDLAND RAILWAY.

Otago Daily Times, Issue 11197, 20 August 1898, Page 4

THE MIDLAND RAILWAY.

(Pjik United Pbess ■ Association.) WELLINGTON, August 19.

In the defence filed by the Crown to th« action of Mr Coaues, receiver for the Midland railway, it is contended that the interest and debentures are subject to the rights of the Crown under the Railways Construction Act of 1881,. and all other rights of the Crown; that the property has not become vested in Mr Coates; that the debentureholders had'knowledge their security was subject to the right of the Crown; that the seizure was specially authorised by law. Defendant denies that any of the notices complained of were wrongly made, and that both the company and debenture-holders had agreed to waive any irregularity is order to avoid the statutory ■alternative— namely, retention: by the Government of the property. As to 'the complaint that .'they had not been allowed to complete the selection of the land^grant, respondent says this point was pending at the time'of the arbitration, and the- company had then committed a wilful breach of contract. It is further alleged that the provisional titles to the proceeds of certain land sales have been for some time ready for, issue, but it never has been made clear who was entitled to them. Other defences are raised, the main one being practically that the company had never attempted to carry out the contract, as after ten yearstonly 76% miles out of ;235 had been constructed, and those the easiest to make; that the contract had been wilfully broken, and,neither the company nor petitioner has any claim. The whole of Mr Blake's arbitration award is inserted as a schedule to the plea.

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