THE MIDLAND RAILWAY.

Otago Witness, Volume 25, Issue 2321, 25 August 1898, Page 43

THE MIDLAND RAILWAY.

WELLINGTON, August 19. In the defence filed by the CroAvn to tnfc action of Mr Coates, receiver for the Midland railway, it is contended that the interest and debentures are subject to the rights of the Crown under the Raihvays Construction: Act of 1881, and all other rights of th© CroAvn ; that the property has not become A'ested in Mr Coates; that the debentureholders had knoAvledge their security Avas subject to the right of the Crown ; that theseizure Avas specially authorised by law. Defendant denies that any of the notices complained of were Avrongly made, and that both the company and debenture-holders had agreed to wa,ive any irregularity in. 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 Avas 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 lias been made clear Avho 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 years only 76 miles out of 235 had been constructed, and those the ea.siest to make ; that the contract had been Avilfully broken, and neither the' company nor petitioner has any claim. The Avhole of Mr Blake's arbitration award is inserted as a schedule to the plea.