THE MIDLAND RAILWAY.

Greymouth Evening Star, Volume XXXI, 5 November 1901, Page 3

THE MIDLAND RAILWAY.

Report on the Petition. £130,000 Recommended to be Paid. [per press association.] "Wellington, Nov. 4. The Public Accounts Committee reports as follows on the Midland Railway petitions :—" That although the Colony has received injury by the non-completion of the contract and the action of the debentureholders, and notwithstanding the Colony's proved legal rights, still in consideration of the losses debenture-holders and shareholders of the company have sustained, arid taking into computation all moneys that have been paid by the debentureholders or the company pursuant to demands made by the Crown, and also all profits that have been derived from working of the open sections of the railway during the period between the seizure and the vesting in the Crown, the committee have the honour to recommend that a sum of £IIO,OOO b > offered to the Receiver for the debentureholders on condition that he give a receipt on behalf of the dcbenturehjlJery, setting forth that the Colony has dealt equitably and justly and that be is fully sa isfied on their behalf, that the sum of £20,000 be offered on similar terms to Mr Dalston on behalf of the shareholders. That a bill be pissed this session to give effect thereto with such conditions as may bo deemed advisable to completely safeguard the interest of the Colony ; th*t each debentureholJer and each shareholder shall give receipt to the receivers and attorney for the company for the money, stating that the Colony has dealt equitably and justly with him and that he is fully satisfied."

THE CHAIRMAN OPPOSED THE VOTE,

Mr Fisher (Chairman of Committee) moved that the report of the Committee lie on the table and bp primed. He said it was his duty to move this motion, although he totally dissented from the repoit. Ho complained tht.fc these petitioners were seeking redress after having tried by every means in their power to injure the credit of this Colony at home. He had always opposed the Midland Railway Company and all its works as being nothing better than a gross political job of which the colony' was now reaping the fruits. Had it not been for the fact some of the pititioners were persons who were capablo of exercising great influence at Home, they would not have succeeded in getting this favourable recommenliition. He strongly condemned the action of the debentureholders throughout the whole pied?, and especially resented the action they took to prevent the quotations of New Zealand loans on the stock exchange. These men having na legal or equitablo claim on the Colony now appeared as supplicants, but he hoped Parliament would not agree to make them any grant.

RUSSELL ASKS FOE HONOUBABLE SETTLEMENT.

Mr G. W. Kussell said the honour of the Colony required that this matter should be settled on honourable lines and he could not help feeling that justice was on the side of the petitioners!. According to the last railway statemen t the Midland railway was making a profit of £5,000, equal to 4 per cent on the grant, the House was now being asked to pay a much better result than some of the lines built by Government. As to the position of the "debentureholders, he said, if they had not been men of more than ordinary influence, the money would not have been subscribed to construct the railway, which was he declared, an integral part of our railway system and would have to be completed. Mr Buddo thought the petitioners were entitled to some consideration, but he would agree to give them the whole amount recommendsd by the committee. SEDDON DOES NOT LIKE PBEVIOUS BOUKCE 1

Mr Seddon said the thing he took mo3t exception to was that when the case was pending before the Privy Council, the debenture holders influenced the press at Home against the Colony and asked the Stock Exchange not quote or register our loans. A House that in tao face of such conduct would make a grant to tbe petitioners was generosity itself. However, ho thought something should be given, because there were a number of poor shareholders who were induced to invest their money by the "coloring" put on the speculation by some persons from the Colony, and thedebentureholders thought although wrongly, that they had a c'aim above the c'aim of the Colony, having advanced the money under misinterpretation of the law. The debentureholders were entitled to some consideration besides which if tho company had not dono the work, the Government forced by political pressure would have hid to make the line. His advice was to clear this matter up at once and for all. He did not foar that anyone could injure our cred t, but they should have some regard to the circumstances of the case and by such a gift as proposed, heal the wounds which had been caused. They must, however, see that what they did, left no loopholes for any further claims. ?; A GBNEBAL DEBATE. James Allen had no sympathy with the debentureholders but the colony had a railway which it would have cost a large sum to contract and he supported the recommendation of the committee as being generous in the extreme,

Mr M'Guire could not see that the colony had armed the shareholder or debentureholders and that being so moved the report be sent back to the Committee for further consideration.

Mr Hogg supported tho amendment urging that it was very well to be generous but that they must he just to the taxpayers of the colony. Mr Tho 3. .. Mackenzie thought the generous recommendation of the Committee should have the support of the House.

Mr M'Gowan considered it advisable for the House to agree to the Committee recommendations.

Mr R. M'KeLzie urged that debentureholders should receive the difference between tho value of the line and what they had already caid, that would amount to more than £130,000.

Mr Hall-Jones suggested that the issue in which the question should bo decided was when the Bill came down

Mr Hornsby was speaking against the Committee's re commendations when the House took the 5.39 adjournment.