Levin-Kakariki Railway.

Manawatu Herald, 14 June 1894, Page 2

Levin-Kakariki Railway.

At the meeting of the_Horowhenua County Council on §aturday the following letter was reid from Mr J. Wright Stewart in reference to the proposal to construct a railway from Levin, to connect with Greatford, via Foxton and Sandon •.—t'f^wing to the little interest shown by the ratepayers in the proposed Junction Railway, and the want of monied men in the district, I have had to abandon the attempt which I intended to have made to raise a small portion of the capital in, the district. I have therefore entered into'nego- • tiations with the -representative of a London syndicate to float a Company on the London market, but in order to do 60 it will be necessary for your Council to enter into an agreement with reference to granting all rights to construct the line, &c, and I send you herewith the agreement, which J| I think you will find embraces all the powers which your Council cau legally grant, and nothing beyond:

._„ . . . ._ ..„ __^_>_^. I have to say that it is proposed to pay your Council £1500 in lieu of paid up shares as formerly proposed, for the rights and privileges. You will observe that the agreement is conditional on the money being paid to your Council, which I feel satisfied will be done, and it will be found money for your Council, and further save any expenditure by you in bridging the Manawatu. I hope "your Council will agree to the pro.'PQaal, and that you will have the ii^agreeinent signed so that it may be • forwarded to London by the next mail. An opinion on the proposed agreement in connection with the above matter was received from Mr M*. Chapman, of Wellington. It was to the effect that the agreement as to • one and all of the matters would be ultra vires and void. Apparently the ultimate object of the agreement is to procure the construction of a railway as defined. The object to do this could, in Mr Chapman's opinion, be acquired only by the promoters not being a company, by a special Act of Parliament, or by a previously formed company under the District Bailways Act, 1877, and the Amending Act 3. As at present advised, he did not see that any agreement which could be proposed for authorising the construction of a railway over country roads could be valid. He therefore could not advise the Council to enter into the proposed agreement. The Chairman said it was quite clear that the Council could not entertain the proposal, and he suggested that a copy of the legal opinion be sent to the promoters of the railway. On the motion of Cr Hurley, seconded by Cr Venn, it was resolved to adopt the Chairman's suggestions. — M. Times.