SUPREME COURT.

Timaru Herald, Volume LXII, Issue 2888, 13 December 1898, Page 3

SUPREME COURT.

Per Fbess Association. WELLINGTON, December 12. The hearing of the Midland Railway case began to-day before the Chief justice and Mr Justice Edwards. Sir R. Stout, Mr Cooper, and Mr Findlay appear ' for the Receiver; Mr Coates and Mr| 1 Quick for the debenture-holders, and Mr Bell and Mr Gully for the Government. 1 There are two motions before the Court. 1 One is for a summons directing the ! Crown to show cause why an absolute sale of the railway should not take place, 1 under which the Receiver should obtain | possession of the railway and sell it if he > thinks fit, The other is a summons by the Crown to the Receiver to show cause '. why the order appointing him should not 1 be rescinded or varied inasmuch as that order directs the absolute sale of the railway, which the Crown alleges that the Court had no power to order. It is r understood that the case, which is ex- " r pected to last several days, will go to the Privy Council m any case. In the Midland Railway ease Sir Robert Stout said that the contention of the Crown was that the debenture- > holders had no security at all, and he | submitted that the legislature never in--1 tended such an injustice. Mr Cooper contended that under the Act of 1891 ' people who lent the company money » had a first charge over the company's 7 property, Mr Bell, for the Crown, ad- £ mitted that the debenture-holders had * a first charge, but argued that it was subject to the right of the Crown to " step m for breach of contract. Argu--1 ment will probably finish to-morrow. i ~" ■