MIDLAND RAILWAY.

Star (Christchurch), Issue 5427, 30 November 1895, Page 7

MIDLAND RAILWAY.

THE ARBITRATION COURT.

SENSATIONAL DEVELOPMENT.

WITHDRAWAL OP THE ARBITRATORS. [Per Pkkss Association.! WELLINGTON, ¥ov. 29.

At ten o'clock this morning the umpire in the arbitration case (the Hon Mr Blake) took his seat alone. H9 said that ho wrs Borry to annonnco that the Justices appointed to settle the difficulty iv this matter had intimated their inability to concur, and had withdrawn from the case and placed the onerous duty of. hearing and deciding upon tbe matter upon him alone. He had received from the arbitrators notice that they could not agree upon the points placed before them, and calling upon him to proceed without them. Ho, therefore, would have to undertake the duties devolving upon him as to hearing evidence, and would participate in any argument which might be raised by counsel. Under the circumstances, if counsel desired to again raise the pointß already heard by the Court, he would be prepared to haar argument upon them. He would exprees his views as regards the points already raised, which he had had no opportunity of doing before. The principal question to be decided to-day was the objection raised by the Crown that there wae at this time no power for the arbitrators or umpire to dispose of the matter or to act in it under the provisions of the deed of contract, first because the seizure of the line had taken place, and secondly because of the alleged breaches of contract on the part of tho company. He did not regard the seizure as having this effect, and notwithstanding the seizure and assuming that it was valid, he thought that the power of the arbitrators aud umpire remained. As to the seizure of the line, that was a mixed question of law and of face, and he would not decide upon it till mora evidence had been led and further argument taken. He did not propose to uphold the objection of the Crown against the reception of certain evidence at present, both because his impression was adverse to the position taken by the Crown on thip point and because he was doubtful whether it would serve the interests of both parties best. He had therefore decided for the present; toadmit the evidence. If this course proved right the additional coat would be small as compared to the very large cost which would arise did he prove to have wrongfully excluded the evidence before being fully aware of its nature, and so involve the very great expense of reopening tho whole proceedings, by rendering quite abortive those at present entered upon, and involving great further delay. Thore waa iv his mind a balance of evidence in favour of the course he proposed to adopt, and which he considered would serve both parties best. As to the further particulars asked for by the Crown, he did not think that ho was called upon to make .any further order. •' The company had partially met the demands of the Crown, and if it appeared that these demands had not been fully complied with he would feel it necessary to call upon both parties to see that they gave particulars necessary and were prepared for what they had to meet. As to the further objections on certain other pointß it was obviously better not to express any opinion' until the proper time came. And as to the question of the power of the arbitrators to deal with the seizure of the railway under the contract, hia present impreß&ion was that the company's contention as to the contract applied. That would be extremely difficult to maintain, but for convenience he would adopt the same course with regard to thia as with regard to tbe other points upon which the samß question of power was involved. 'He would, therefore, permit evidence to be heard. Aa the notice of arbitration seemed to him at present to have regard to the seizure it would be unfair if these matters were not considered, and ho would therefore ask both sides to consider this question of the scope of arbitration as it would have been had it been a little larger, and the Crown to consider its duty to deal with these points, in which case he would reconsider them at a later stage. As to the conduct of the case, he asked both sides, under the circumstances, to supply him with copies of the correspondence, and of tho previous evidence to which they proposed to refer, and he would take an opportunity of acquainting himself with them while the Court was not sitting. The time which he was told would be necessary when he agreed to come from England, and the time which it was now suggested the hearing would take, did not quite agree, and he must therefore ask counsel to be as concise as possible, and above all to have so delay in the production of evidence. Oa hi 3 part, bo would sit early and late in order to get. the matter settled in reasonable time, without at the same time hampering counsel as to their conduct of the caee.

Mr 4 Hutchison intimated that he would endeavour to meet Mr Blake's views, and Sir E. Stout Baid that he would give the decision of the Crown on Monday aa to whether he would agree to the question

relatiner to tbe seizure being considered in this arbitration, as suggested by Mr Blake.

Mr Robert Wilson woo tho first witness.

Mr Alan Scott's exam ination«in- chief was taken, end his cross-examination will b> fcevd in tho morning, after which an a-.: j ■•■■•■ :ienb will be mado for the day.

Kir rv>',;,?rb Stout left for the south this eve-iii.''. -rad "frill bo ab3aat three or four days. in his absence, Mr H. Gully will have charge of the case for the Crowo.

[FBOM OUB OWN CORRESPONDENT/}

When the umpire, the Hon E. Blake, took hie seat alone at the Midland arbitration there waß intense excitement in the little Court. I believe that this feeling communicated itself to the public assembled to watch the proceedings. The number of tbe attendant public, let us cleariy understand at tbe outset, is doubtful. Some authorities assure me that ,it was composed of one individual. On the other hand, competent authorities make no secret of the fact that the attendance did not reach to tho dignity of a single Bpeoimen of the "genus Homo." You will believe that at all events there waß excitement among the lawyers nnd others present in the businees. When Mr Blake apoke that feeling was muoh quieted down ; in faci; I may say that the impression on both sides is that Mr Blake is a strong, capable man, eminently practical in hia view, very quiet, very ahrewd, very clear-sighted and very decided. Let me get back to the report on hia remarks. Mr Blake said that he waa sorry to announce that the eminent jurists who had been appointed by the parties to settle the difficulties iv the matter had intimated to him their inability to agree, and had withdrawn from the matter, consequently the onerous duty devolved on himself alone. After reading the formal notice sent him by Sir Charles Lilley and Sir Bruce Bum side Mr Blake explained that he proceeded to undertake the duties which now devolved upon him, and although the request of the parties to be present had enabled him to participate in the argument, yet, under the circumstances, he wished to say that he was quite prepared, if counsel desired to address any observations on any of the points already submitted, to hear them {it not, he would proceed to indicate his views, so far aa he thought it necessary to express them, on the subject under consideration.

On both Bides, counsel intimated that they did not wish to say anything further.

Mr Blake continued : In the first place, it was not convenient, perhaps, that he should direct tbat the Crown should file a written statement of ita case on the second reference as had beon done on the first. Aa to the objections raiead by tha Crown that there was at this time no power to the arbitrators or umpire to aot under the provieion.in the deed, firat on the score of the time which had elapsed, assuming, of course, the validity of seizure, and secondly because of the alleged resciaion of ttie contract, he thought that notwithstanding tbo fact of the seizure the power of the arbitrators remained. As to the alleged rescision of contract, that, of course, was a mixed question of law and fact, and although some of the evidence proposed to be tendered might be contested ou the ground of itß relevancy, he was prepared to receive that evidence eubject to considerations which would arise when it came on in due order, but he did not propose to decide to accede to the suggestion made on behalf of the Crown to immediately reject evidence; first, because hia impression was adverse at the time to the legal position of the Crown ou this point; and, second, because in doubtful matters as to power, he believed he served the interests of both parties best by proceeding on the assumption that he had power. If he decided for the Crown and waa wrong on the point of law that wrong could be easily and speedily and inexpensively redressed, but if he wrongly declined to exercise his power the consequences to both parties would be very serious, inasmuch as tbe whole proceedings up to this time, and the great expeußs involved, would be abortive. There would ha great delay and there might be very serious complications in the result. So it seemed to him that he served the interests of both parties best in taking the course of not declining jurisdiction. As to the further particulars which were requested by the Crown, he did not think he was called, upon at this moment to make auy further order. He understood that the demands of the Crown for further particulars were substantially met by agreement on the part of the company to provide them ; and if it appeared on further investigation that these demands were not fully complied with, he would be glad to receive any. further _ applications or suggestions aa to additional particulars, because he deemed it of great importance that at the earliest possible moment both sideß Bhould be in a position to know what was to be met. Ab to the objections made by the Crown aa to the admissibility of certain particular**, he had formed an opinion on thoso objections, but thought it better to reserve it until they cam 3to the evidence. It might be expedient to hear the evidence aa to some of them even although he entertained an adverse opinion aa to the objectiona made by both sides, but mainly on the' aide of tho Crown, to certain evidence. It was obviously the meat convenient course to

express no opinion until the evidence was formally tendered, at tho proper time and in the proper way. So much as to the firat reference. As to the second reference tho main question, doubtless, was the power to deal under the arbitration with the seizure of the railway. His present impression was that tho company's contentions as to the "arbitration clause applying to that seizure wero extremely difficult to maintain, but he thought ib convenient to both parties to tnks the sarrs9 course as to this that he did in the question of power under the first reference. On thi3 question there waa but little evidence to be taken, and, therefore, but little consumption of time would be involved, and tbe same results would be achieved. As to the other particulars the notice seemed to him to have regard to the seizure. There were certain general words in the reference, but without absolutely deciding at the moment he was disposed to think that these had regard to the seizure. It would be a very unfortunate thing if the other matters were not disposed of at the same time as this, and he ventured to ask the Crown to consider whether it was not as well that these questions should be dealt with under the arbitration as if they were covered by the notice, aud to ask the company to consider whether they would press the claim that these should be dealt with in case the Crown persisted, as it had a right to do, in declining. Meantime he had to deal with the opinions as to the particulars which bad been furnished. The suggestion of Sir Robert Stout on behalf of the. Crown that the particulars in the first two paragraphs were entirely too vague was quite true. He understood that counsel for the company had attempted at anyrate to remedy that vagueness in his opening speech. The Crown desired a written communication of particulars, and in some respects it was promised. He would be glad to receive an application at any moment so as to take care that the preliminary steps were really taken, and that there should be no chance of either side being taken by surprise. He wonld suggest, without presuming to make an order for the consideration of counsel, whether it would not conduce to the expeditious treatment of the subjeot that there should be marked copies handed to him of certain official papers received as the originals of thoso which were to be tendered in evidence. Those for the company could be marked with one colour and those for the Crown with another. In conclusion he might say that the probable length of time over which these proceedings would extend had rendered him very reluctant to undertake any additional burden such as the second umpirage. He had done co only at the request of the arbitrators and to meet the convenience of the parties. He waß afraid, therefore, that he would have to sit long hours, ond to take care that there was no delay on account of the absence of witnesses. Ho waa sure that counsel recognised the spirit in which he made these remarks. He did. not wish to unduly press anything, but he felt assured that they would conduct the proceedings with a view to aB muoh despatch as waß consistent with the attainment of justice.