The Timaru Herald. SATURDAY, JULY 27, 1889.

Timaru Herald, Volume XLIX, Issue 4602, 27 July 1889, Page 2

The Timaru Herald. SAT URD AY, JULY 27, 1889.

Vi'v. UQinmonli'd a week <ir two ago on the appointment of Sir Francis Dillon Hull, the Agent-General of the colony, to the post of trumee for the debenturcholders of the Midland Railway Company, and oxpreflscd the opinion tbc safer course would be for tbc Government to take hack their assent and ask 1 Sir Frnncis to resign. It seemed to us that though the trusteeship m tbc ' linndii of the Agent-General might not cast on the colony any legal responsi- > bility m case of any future disaster to tl.c company, there would nevertheless 1 Da a moral responsibility, or at nil 1 events v strong contention on the part of those interested that tberc wns nncli , a moral responsibility. Snrely it would i be wiso to avoid placing the colony m n position m which such a risk 1 would be incurred. We notice m | the Krm Zealand Hci-ahl of a latoj i date an article wbk L takes precisely i tbc same view of tb» cbbc, the ] ' argument being mainly based on the 1 fact thnt the responsibility of the trustee ia tbat of seeing that thu cotnj pany deal with moneys received for the ■ land grauts " m accordance with the I prospectus on which the amount tiny • recently raised was lent." Thus, says | our northern contemporary, tbc pros- ' pectus becomes an important factor m , thi: o.ucstion. We Lave not a copy of f the document by ns, but the following • abstract will supply ila place for tbo ' t occasion. The prospectus states that the Government is pledged to giv<> the , company lund to thu value of £ 1 ,250,000, > and that it is anticipated when thu whole tine is finished that tbiu land will realise | i-2.5W.000 at the leaßt. Mr Thomas Privctt, of Cbristcburcb, an experienced timber valuer, bad also estimated the timber alone on '.'I,OOO acres m Gantcr- ' bury m tbc vicinity of the line ns worth — " apart from the value of thu land when cleared "— £ti3.»,ooo. The prospectus also states that tbo Greymouth Government line, of which tbis was a direct extension, earned i'JUO- per mile

for tbe year ending :Hst M;iro!i, IS-SSi,l and for ISBSI was expect.-d t.i maintain tbat figure. It was intimated, tlio prospectua adds, lb-.it an annual gros3 receipt of £1100 per mile on tbe Reefton section of their railway would pay eight per cent, on the capital cost. Certain specific security ia tben offered for thu issue of five per cent, debentures, to be sold at £*J- 10a, to the amount of £715,000. This security is : — (1) The railway nlready constructed, and on which £'220,000 has been spent. ('.I) Tbe railway to be constructed out of the loan then issued, £515,000. (3) About 300,000 aon-8 of land to be granted by the Government for this portion of the line, £150,000. (1) The limber nbove-mentioned, which Mr Privett hud valued on the ground at £035,000. The A 7 no Zealand Herald says : — " It would appear from Sir Francis Dillon Bull's letter that the trustees have to deal only with the 300,000 acres, bnt we presume that the ' growing timber ' is also included m their deed." And now as to our contemporary's views as expressed m the article to which we are referring. He says : — " In nny case tlie Government, by allowing the Agent-Ginerul to net, have given a moral endorsement to the accuracy of the calculations m the prospectus, on which, or the AgentGeneral says, the money has been lent. Why should this have been done ? The Government is evidently by this act connecting itself with the company m a manner that may lead to serious complications, which can only have one end- ] ing. Tbat endiug would be m case of reverses that interfered with the company promptly pitying interest to the debenture-holders, 11 dedaratiou that the Government was morally responsible, and could not with honour or with safety to the credit of the colony do less than accept the legal responsibility also. It is an unwarrantable position. Thu colony ought not to have been placed m that position, nor subjected to the risks which it involves. The AgentGeneral should be called upon without delay to retire from the trusteeship. He cannot serve two masters. The colony, not the debeuture-bolders or the company, has upon his services the first and only claim." We repent that that is exactly the view which we took of the situation when writing on it recently, and we aiv glad to find tbat we do not Btaud alone m our opinion. If trouble cornea of the Midland Railway trusteeship, Sir Harry Atkinson will have no one to blame but himself, for he has had ample warning of the possible, and we may perhaps say not very improbable, consequences. At the time these lines are being 1 penned, the House of Representatives is still sitting- with closed doors. With the exception of the dinner hour adjournments, which are provided for m the Standing Orders, the debate has been continuous since half-past seven o'clock on Wednesday evening on the Premier's motion " that the Speaker do leave the chair m order that tbe House may go into Committee on the Representation Bill." In the early hours of Thursday morning the galleries were ordered to be cleared on tbe motion of Mr McGregor, the member for Akaroa. Since then the public have bad no report of the proceeding?, nor would they have profited much if every word bad been laid before them, for the so-called debate is simply a supreme effort of stonewalling by the town party, who object to the proportion of country representation being increased as provided for m the. Bill now under discussion. It is thought by some that the objectors to the Bill, though m a minority, are yet sufficiently strong to carry their point by wearying out the majority. Bat tbe country party are very determined, and it is probable that their powers of endurance are quitn as great as those of their adversaries. Numbers must m the end carry the day, unless the Government, influenced by ulterior considerations, should see fit to give way, m which case we presume that the Bill would be allowed to drop for this session. At present, however, Ministers show a firm 1 front, and we are inclined to think that if they had intended to yield they would have done so before, and not have allowed Parliamentary feeling to be roused to such a pitch as it has now attained. Of the stoncwnllers we have only to say that they are entirely m the wrong and that their coureo of action is discreditable. We siy so without any reference to the point at issue between tbe two parties. However unfair the decision at which a Parliamentary majority arc desirotiß of arriving, they Bhould m every case bo allowed to bave their way nfter reasonable debate has been exhausted. There should )>e no exception to the rule. Tbe only constitutional remedy for an unfair decision by the majority ia an appeal to the constituencies at the next election. It is no answer to say that m many cases the mischief once done cannot be recalled. Tho great principle of constitutional government is that the majority shall rule, and those who seek to set that principle nt defiance arc not true friends of the people.