RAILWAY CONSTRUCTION AND LAND BILL.

Globe, Volume XXIII, Issue 2300, 17 August 1881, Page 3

RAILWAY CONSTRUCTION AND LAND BILL.

[By Tbx.hqba.ph.]

[PBOK Till! OWN COBBBSPONDENT OP THE “ PBBBS.’ ]

'WELLINGTON', August 16 The Railway Construction and Lands Bill contains 114 clauses. It ia entitled “ An Act to Provide for the Construction of Railways by Joint-Stock Companies, and to Authorise Grants of Crown Land to be made to such ! Companies.” The preamble reads thus—- " Whereas, it would conduce to the more speedy settlement of the colony if provision were made enabling joint-stock companies to enter into contracts for the construction of railways, or for the construction and working thereof, upon receiving aid for all or any of such purposed by grants of Crown lands upon the terms and in the manner orovided by this Act, bo it therefore enacted,” &c. The Bill ia divided into fire parts. Part 1 gives power to the Governor in Council and companies to enter into contracts on the following terms and conditions: —1 ha Governor in Council may enter into contracts with railway companies. No contract to be made for any line which docs not connect with a Government railway. Railway works partially made may bo included in contracts. Contracts entered into by a company to bo under seal. The company to transmit a plan of the railway to the Minister. The Governor may require the company to furnish all information, Ac.; when a contract is entered into, the Governor; to gezstto the general purport of such contract. The Governor may cause the company to give security, and the directors with the consent of a majority ef the shareholders, may give security. Contracts not to take effect till approved by the General Assembly. Contracts to be binding unless either House of the Assembly pusses a resolution disapproving thereof, with a provision that the Governor ia Council may allow certain privileges before approval, including power to enter on lands to survey, and take preliminary steps. If an Order in Council ia made then certain provisions of the Act as to entry and compensation are applicable. Part 2 relates to the construction of railways by companies. The companies to cause a plan ot the railways and a book of reference to bo made. Copies are to be deposited in a public place to bo open for public inspection. Notice of deposit to be gazetted and published, and copies of the notice to be given to owners and occupiers of land. Notices may be given to the principal or agents. A surveyor may enter upon land for the purpose of making a survey. Notice to bo given to the owner or occupier, and damages caused by such entry to be made good. The company muy enter upon and take land. Fences are to bo erected in certain cases before entry. Certain lands are not to be entered on without consent. Compensation is to be given for land taken or affected. Part 3 of The Public Works Act, 1831. Companies shall be responsible to any claims for compensation upon ascertaining the amount of compensation, and on payment thereof the Court may grant an order. When the title is doubtful, or the owner absent, compensation is to be paid to the public trustee. Compensation is to bo paid out of the capital of the company. The company is to have the usual powers of construction. The gauge of the railways to ha 3ft 6in. Right of way at} railway crossings, alteration of roads, Sci., to be made without detriment to the public or to owners; plana of such alterations to be agreed upon with owners ; if no agreement, two justices to settle disputes. Land may bo occupied temporarily ; previous notice of occupation to be given, justices to decide if occupation is necessary, and settle the conditions. Occupation of Crown lands to be arranged for in the contract deed. The company may make deviations, and no advantage ie to be taken of errors in the plan or book of reference. In certain cases the Governor is to give possession of the land to the company. The company only to acquire a right to use Crown lands, but the fee simple of such'lands or any part thereof may be granted to tho company after the completion of tho railway, if such grant shall be necessary to give effect to any such contract. The company may proceed forthwith [with tho construction of works. Land not wanted may bo sold by tho company, tho proceeds of tho sale to form part of the capital. Part 3, gives the company power to borrow money. The company may borrow in the form of mortgage debenture bb is scheduled, tho lime and place of pay to be fixed; interest payable rot to exceed 7 per cent. Debentures and coupons are transferable by delivery. Agents for raising loans may bo appointed ; such mortgage to bo a first charge on the . railway and all property of tho company pre- i sent and prospective, the directors’ certificate as to tho amount of debt of the c >mpany and as to the ameunt to be borrowed to be evidence in Court. There is a penalty for falsely sealing or signing certificates. Creditors of the company aroto have no claim on tho colonial revenue. A sinking fund may , be provided and may be charged on the net profit Ot the company. Tho sinking fund to be applied to pay off loans. If a mortgage bo not paid when due a receiver may be appointed. Company’s property to vest sr. receivers. Powers tor the recovery of nt’ es to vest in receivers. Receiver to give security. Receiver to apply money to pay debts. When the loan is paid off the receiver’s powers are to cease. A mortgage to be a debt of the body corporate. Act not to authorise tho Government to require mortgogee to receive the principal moneys before the term agreed upon. Tho mortgagee not to sell or apply for an order to sell without first giving notice to the Government. In case ot purchase by the Government the moneys to be paid to tho company to be tho net balance over liabilities. If the price is less than the liabilities of the railway the company is to pay the Government the deficiency. Part 4 authorises grants of Crown lands to company. When a contract is entered into tho Government shall cause the withdrawal from sale of Grown lands adjoining the proposed lino five miles on each side, tho lands to be withdrawn by Order in Council and gazetted. The land is to be surveyed, but blocks to be rectangular in shape, and not less than 100, nor more than 200 acres each in area, and not to have greater frontage to the line than one mile. The company is entitled to each alternate section. Natural boundaries may be taken advantage of. Progress drawings may be made by tho company for land where complete sections of railway are finished ; the Crown to draw for an equal area. If no land adjoining the line is available, then land in the neighborhood bonefitted by the construction of the railway is to bo set aside. The value of the land to be granted under this Act shall bo calculated upon the estimated market value thereof, immediately prior to the making of any contract under this Act, irrespective of any Land Act or regulations made thereunder, and without regard to any prospective value that will be given to such lands by the proposed undertaking ; shall be ascertained by tho Sur-veyor-General, and his certificate in writing of such value, given for the purposes of any contract under this Aot, shall be binding ar d conclusive, both upon the Governor in Council and the company. The company is to pay the value of improvements to person holding land as a tenant or license of the Crow”. In case any land comprised in blocks to which the company is entitled is not Crown land, an equal area ia to be set apart for company in the nearest Crown lands. The issue of Crown grants to the company and terms thereof. Such grants may include sites for stations, &c. Tho maximum area of Crown lands to bo granted to tho company not to exceed 30 per cent, of tho cost of the railway. Part 5 deals with tho management of the railways by companies and regulations for traffic. Companies may make regulations and prescribe tolls, &o. Tho railway to be open to tho publio. Governor may reduce the maximum of fares, Ac., under certain conditions. Part 6 contains general provisions. The Governor may agree with companies for running powers of tho lines, &0., and also as to payments to bo made under such agreements. Power is given to the Governor to purchase railways on giving twelve months’ notice, after ten years, tho price to bo determined by arbitra'un, bn 1 / in determining tho price to be paid to the company tho i rbilrators shall observe the following provisions : shall deduct from suon price 50 per cent, of the value of all land grunted to the company under part 4 by way of endowment. (2) They shall not award any compensation to the company in respect of land the use of which for a line of railway shall have been acquired from the Governor under the provisions of tho Aot or been gratuitously grantc-u to the company for the construction of permanent way, but the company shall require in respect of such

'and*, and be entitled to, the fair value of all improvement* made by them on such land*, to be ascertained as provided. Company to convoy and assign upon payment of agreed price ; the mortgagor to join in the conveyance on being paid hi# principal and interest No compensation shall be paid for the goodwill of any railway, but the arbitrators in determining the price to be paid, #hall take as a basis of valuation the cost of other similar railway*,the works, plant, and rolling stock at the time when the works form ■ ing the subject of arbitration were constructed, or plant or rolling stock was acquired, a# the case may be. The arbitrators shall also lake into consideration the depreciation of the permanent way, plant and rolling stock, buildings, and other works, or railway, including therein any onerous or burdensome provisions respecting the price of the railway or works thereof, or any covenants, rights, or privileges in connection therowi-h. If tho power of taking is exercised within a certain period, a percentage is to be added to tho compensation as follows :—Seven years and not exceeding fourteen years, 5 per cent.; fourteen years and not exceeding twenty-one years, 10 per cant. ; the amount of per centago to bo ascertained by arbitrators and paid as part of tho compensation, the compensation as ascertained to bo accepted by the company. Tho railway purchased to become subject to the by-laws in force on the Government railways. Tho company is not to sell or assign without consent. Power is given to the Governor to tako possession of the railways in case of delay in the works or neglect to run trains. Railways constructed under this Act to bo subject to p-M 7of Public Works Act, 1881. Tho Act, not ; o give tho company greater powers than those lor which it ie incorporated. Stamp duty is payable upon certain contracts or debentures, &o. Trees dangerous to tho railway may be removed. Penalties are provided for trespassing on tho railways in course of construction, not exceeding £5. Lands purchaser! are to be tho properly of the company. The penalty for obstructing persons in tho discharge of their duty is £SO. Penoltics are recoverable summarily. Tho schedules prescribe the forms of debentures, coupons, and certificates required by the Act.