THE MIDLAND RAILWAY.

Colonist, Volume XXXVIII, Issue 8258, 27 May 1895, Page 2

THE MIDLAND RAILWAY.

POSSESSION TAKEN BY THE GOVERNMENT. (Per United Press Association.) Gbkymouth, May 26. On Saturday afternoon, Mr Thompson, the Resident Engineer, aoting under instructions from the Government, and being armed with the Governoi'e warrant, proceeded to Stillwa er, accompanied by Mr Blow, Undersecretary for Public Works; Mr Gully, Crown Solicitor ; Mr Mclntosh, Bail way Manager ; and Mr Hannan, Crown Prose-, cutor, and took formal possession of the Midland Railway here and place. Possession was taken in accordance with tbe various provision* in the Railway Construction and Land Act, 1881. Section 123 provides tbat in the event of any unreasonable or inexcusable delay in completion of works, or if there be a breach of contraot, the Governor may take possession, and assume the management of any railway belonging to the Company, and, if he thinks fit and wise, conduct the traffic thereon,' charging tbe Company with all expenditure which may be en ailed, and crediting the Company with all earnings and receipts ; accounts shall be taken at interval of not longer than six months, and the balance, if any, paid over to the Company; or if there be a loss, payment may be demanded, and if such payment be not forthcoming within 12 months from due date the Government bava power to give three months" notice of their intention to assame ownership of the railway, and failing payment within that period, the railway will vest in tht Governor absolutely. Under section 124, the Company have the right to apply to the Supreme Court before a Judge only, and his decision, given in a summary manner, shall be final. He, however, can only deoide whether there has been unreasonable or inexcusable delay, or a wilful breach of the contraot, and if he finds there has been either, or both of these, the action of the Governor in taking possession cannot be interfered w th, but suoh application will cot prejudice any security given by the Company to the Government for tbe due performance of its contraot. Mr Thompson was the instrument used to expedite the Governor's order, which is dated Auck'and 13th May, 1895, and which arrived in Greymouih on Friday. The warrant set 3 forth at length that in the opinion of the Governor unreasonable and inexouiable delay has taken place, and a wilful breach of the contraot committed. The cootract expired on January 17th. The Government estimate ihat less than one-fifth in expenditure, and one-fourth in mileage, of the total amount have been expended and completed. Mr Thompson, accompanied by the gentlemen named, proceeded ta Still water, and producing the Governor's order, informed Mr Wallace of the proceedingg, and then drove a peg marked with the broad arrow in tbe railway line, declaring at the same time that the property became vested in the Governor. Mr Wallace and hia staff were informed that their aervices would be required as usual, but the line would be under the control of Mr Mclntosh, District Railway Manager. The running of the trains on the line will be exactly as heretofore. Application haß been made to Mr Robert Wilson for all plans and specifications and documents connected with tbe Midland Railway lines, and if these are given o*er, it is generally understood that the extension of the Christchurch line will be proceeded with at once by the Gjvernment. Wellington, May 26. The Minister for Railways 3tates that the action in connection with the Midland Railway was taken on legal advice, and says that the Company have undoubtedly committed a breach of the contract.