THE MIDLAND RAILWAY LITIGATION.

Otago Daily Times, Issue 11301, 20 December 1898, Page 6

THE MIDLAND RAILWAY LITIGATION.

WELLINGTON, December 12. The hearing of the Midland Kailway case was begun before the Chief Justice and Mr Justice Edwards UKliy- Sir B. Stout, Mr Theo. Cooper, and Dr Findlayappeared for the receiver (Mr Coates), Mr Quick for the debenture-holders, Messrs Bell and Gully for the Government. There are two motions before the court-one is for a summons directine the Crown to show cause why an absolute Kile of the railway should not take place, under which the receiver^ should, obtain possession of the railway and sell it if he thinks fit ■ ?he otheris a summons by the Crown to fie receiver to show cause why an order apfl o!ntogl him1 -should not ]* roscndeoVor varied, inasmuch as. that order directs^abso: lute sale of the railway, which, th Oj Crown alleges, the court had no power to order ■ S?rK Stout said the contention of the Crown Was that the debentureMders had no; security\t He submitted that the'LegiSlature never intended inich. Muraboa, Mr

Cooper' contended that •■ undor the act of 1884- paople who lent: the company moneyhad a first charge, over the company's proP' Mr '8011, for the Crown, admitted that, the debentures-holders had 'first, charge, but' argued' that it: was'subject to the right of the Crown to step in for breach of contract. ' .:.. ";,: ,'t" -.: ."■'.•■■■. "■ /December 13/ : Th? hearing of ihe Midland Eailway case was briefer than was expected. Mr Gully ' followed Mr Bell for the Crown, arguing ■ that • what ■ the < debenture-holders ■ wanted was to tget the'constructed portion of the line; which was of value, and be discharged from iill obligations binder the contract. Sir E. Stout replied. He.asked the court :in deciding the case; to settle the questions First,- whether., the debenture-holders were entitled to possession 'of the constructed part of. the railway; and secondly, whether they were;i entitled to ■■ have an ■ order for the sale of either two ; constructed portions "of the.line.: Judgment was reserved..