The Midland Railway.

Ashburton Guardian, Volume XIV, Issue 2889, 3 February 1893, Page 3

The Midland Railway.

[per press association.]

Wellington, February 2. The Government have refused the offers of the Midland Railway Company to surrender their land grant for a fixed sum of money, to be paid as the line is completed, and a guarantee of three per cent, on new capital. In a letter which the company's general manager (who is leaving by the Arawa) has received, the Government intimate that any further proposals for modification mast come from the company. The Government claim to have executed their part of the contract fairly, and ask what the company intend to do with the Nelson section of the line. It is suggested that if the company like to surrender the right to select land, and take 3£ per cent, colonial debentures to the same value, the Government wttl submit the proposal to Parliament; but this must apply to the whole line and not; to the Canterbury section only. All laud now withdrawn from sale would then revert to the colony. As to the extension of time asked for, the Government think it too Boon to consider the question, as the contract has still two years to run. Mr Wilson, generaL manager of the Midland Railway Company, left for England in the Arawa to-day. He expects to be back again before Parlia^ ment opens. He had an interview with the Hon Mr Seddon before taking his departure, and handed in a letter stating thac the company dc not propose to go on i with the Nelson section unless the' proposal for a guarantee of 3£ per cent on , the whole cost is entertained. He thought that the Government was aware of this, as the company's views were clearly stated before the Parliamentary Committee. He would place the offer to substitute colonial debentures for a . land grant before his directors, but viewed the offer a3 quite inadequate to the conditions which have arisen. He comments on the new taxation and themethod of making mining reserves to the com? pany's injury, and again urges their claim to an extension of time. In reply, Mr Seddon reminds him that fche Government only promised to lay the proposal to substitute debentures before Parliament, and denies that any promise of extension had been given. He also points out that while the Government has a reserve of 750,000 acres for mining purposes, 200,000 acres so far have been withdrawn.