THE MIDLAND RAILWAY.

Temuka Leader, Issue 2821, 28 May 1895, Page 3

THE MIDLAND RAILWAY.

Gebymouth, May 25. Ou Saturday afteruoon Mr Thompson, resident engineer, acting under instructions from the Government, and being armed with the Governor’s warrant, proceeded to Stillwater, accompanied by Mr Blow, Under-Secretary for Public Works, Mr Gully, Crown solidfc’r, Mr Mclntosh, railway manager, and Mr Hannan, Crown prosecutor, and took formal possession of the Midland railway here. Possession was taken in accordance with various provisions in tho Railways Construction and Laud Act, 1881, section 23, which provides that if there bo unreasonable or inexcusable delay in tho completion of works, or if there be a broach of contract, the Governor may take possession and assume tho management of any railway belonging to a company, and if he thinks it fit and wise may conduct the traffic thereon, charging tho company with tho expenditure which,may be entailed or expended, and crediting tho company with all earnings and receipts. Accounts shall be taken at intervals of not longer than siif mouths, and tho balance, if any, paid to the company; or if there be a loss payment may be demanded, and if such payment ba not forthcoming within twelve months from its due date tho Government Ijavo power to give three mouths’ notice of thsir intention to assume tho ownership

of the railway, and failing payment within that period the railway will vest in the Governor absolutely. Under section 24 the company have a right to apply to the Supreme Court, consisting of thej Judge only, and his decision, given in a summary manner, shall be final. He, however, can only decide whether there has been unreasonable or inexcusable delay or wilful breach of contract, and if he finds that there has been either or both the action of the Governor cannot be interfered with, but such application will not prejudice any security given by the company to the Government for the due performance of the contract. Mr Thompson was the instrument .used to execute the Governor’s is dated Auckland, 13th May, 1895, and arrived in Greymouth on Friday. The warrant sets forth at length that in the opinion of the Governor unreasonable and inexcusable delay has taken place, and that a wilful breach of contract has been committed. The contract expired on January 17th. The Government estimate that less than one-fifth in expenditure and one-fourth in mileage of the total amounts have been expended and completed. Mr Thompson, accompanied by the gentlemen named, proceeded to Stillwater, and, producing the Governor’s order, informed Mr Wallace of the proceedings, and then drove a peg marked with a broad arrow in the railway line, declaring at the same time that the property had become vested in the Governor. Mr Wallace and his staff were informed that their services would bo required as usual, but the line will be under the control of Mr Mclntosh, district railway manager. The running of the trains on the line will be exactly as heretofore. Application has been made to Mr Robert Wilson for all plans, specifications and documents connected with the Midland railway line, and if these are given over it is generally understood that the extension of the Christchurch line will be proceeded with at once by the Government. Wellington, May 26. The Minister for Railways states that the action in connection with the Midland railway is taken on legal advice, and says that the company have undoubtedly committed a breach of contract. The company does not admit that the Government in seizing the line is acting within its rights, though Clause 123 of the Railway Construction and Land Act gives the Government power, if the company fail to complete the line, to take possession and to finish the work at the company’s expense. It is agreed, by the way, that should the Government finish the work at the cost of the company the latter would bo entitled to the whole of the laud grant. The company takes up the position that the non-completion of the contract is not due to any fault of its own, and that, therefore, the latter has no right to exercise the power of seizure given by the clause ; that the questions in dispute having been referred, by mutual consent of both parties, to arbitration, the point whether or not the company has forfeited the line is one of the matters depending upon the result of the arbitration. It is stated that the company intend to “ sit still ” as far as actively opposing this last act of the Government is concerned, until the whole question has been decided by the arbitrators, It is not improbable, however, that a claim for further damages on account of the seizure will be made before the arbitrators. Mr Wilson, the company’s representative, intends to send a letter of protest to the Government. —Lyttelton Times.