THE MIDLAND RAILWAY.

Otago Witness, Issue 2416, 28 June 1900, Page 32

THE MIDLAND RAILWAY.

IMPENDING CONFISCATION BY THE

GOVERNMENT.

ONE MILLION POUNDS CLAIMED BY

THE DEBENTURE-HOLDERS.

(Fkoii Our Own Cokbespondent.)

■WELLINGTON, June 25

The Government ba-ve been advised that a petition to the New Zealand Parliament "from the Midland Railway debenture-holders has been received by the Agent-general in London through counsel ior the foreign bondholders, and thai it will be posted to the colony by the first mail. In view of this it will be interesting to state the present position of affairs. The debenture-holders claim that £800,000 of their money has been expended in connection with the railway, and, further, thai they have received no interest on this suia. With the accrued interest they claim that they are due over a million pounds. This is the amount they are now claiming from the colony owing to the impending confiscation of the railway. It appears to be absolutely certain that the line, with the railway, plant, etc., will be confiscated by tho Government on the 18th July. Notice has been gi^en to that effect, failing payment of tho amount expended on the railway by the Government. This amount i? about £100,000, and as Ihe company is in liquidation its payment ii out of the question in the ordinary course of events : therefore the line will become Crown property on 18+h July.

It is understood that Mr Seddon is favourable to the completion of the railway, and that the loan foreshadowed in the Governor's Speech will, if agreed 10. be par+lv used for this purpose. It is thought thai the expected petition of the debenture-holders which is to arrive shortly will result in their receiviug some recompense after the properly is finally annexed. Lord Avebury, formerly Sir John Lubbock, is the moving spirit in the endeavour to obtain recognition for the claims of the debenture-holders, but. in accordance with the decision of the Chief Justice, the petition to Parliament will no doubt have to come from the receiver appointed by the Supreme Court.