Midland Railway.

Feilding Star, Volume XVI, Issue 276, 27 May 1895, Page 2

Midland Railway.

GOVERNMENT SEIZE THE RAILWAY LINE. THE COMPANY'S BREACH OF CONTRACT. (Per Press Association). Grkymocth, May 20. <}n Saturday afternoon Mr Thompson, Resident Engineer, acting under instructions from the Government and being armed with the Governor's warrant proceeded to Stilhvater (accompanied by Mr Blow, Under Secretary for Public Work?, Mr Gully, Crown Solicitor, Mr Mclntosh, Bailway Manager, and Mr Hannan, Crown Prosecutor), and took formal possession of the Midland Railway hue and plant. The possession lias been taken in accordance with various provisions-in " The Railway Construction and Land Act, 1881." Section 128 provides that if there be any unreasonable or inexcusable delay in the completion of the line or works, or if there be a breach of contract, the Governor may take possession and assume the management of any railway belonging to a company. Under section 24 the Company have a right to apply to the Supreme Court, consisting of a judge only, and his decision given in a summary manner to be final. Mr Thompson was the instrument used to expedite the Governor's order, which is dated Auckland loth May, 1595, and he 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 a wilful breach of contract committed. The contract expired on January 17th. The Government estimate that less than one fifth in expenditure and onefourth in mileage ot the total amount has been expended and completed. Mr Thompson, accompanied by the gentlemen named, proceeded to Stilhvater 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 lines, declaring at the same time the property became vested in the Governor. Mr "Wallace and his staff were informed that their services would bo required as usual, but the line would be ander the control of Mr Mclntosh, District Railway Manager. The running of trains on the line will bo exactly as heretofore. An application has been made to Mr R. Wilson for all plans, specifications and documents connected with the Midland Railway lines, and if these are given over, it is generally understood the extension of the Clmstchnrch line will be proceeded with by the Government. Later. The Minister of Railways states the action in connection with the Midland railway has been taken on legal advice and says that the company have undoubtedly committed a breach of contract.