MIDLAND RAILWAY.

Temuka Leader, Issue 1839, 10 January 1889, Page 3

MIDLAND RAILWAY.

The third ordinary general meeting of the shareholders of the New Zealand Midland Railway Company was held on November 18th, at the city Terminus Hotel, London, Mr Thomas Salt, M.P., presiding. In moving the adoption of the report, the Chairman observed that, although there had been a certain amount of progress during the year with the work of the railway, the period had been one essentially of negotiation. The negotiations had now been brought to a close, and a very fair contract had been given to them by the Government of the colony. Yaluable as the undertaking was, and must he hereafter, to the shareholders, it was equally, if not more, valuable to the people of New Zealand. The railway would open up the country, bring land on the market in a convenient manner, encourage immigration of the best kind, and provide labor. It was provided that the line was to be finished in ten years from January 17th, 1885, hut they hoped it would be in prosperous working order long before the expiration of that period. They had practically come to an agreement with the Government for the substitution of an incline for a tunnel, and if they in that manner were able to reduce the specified cost of the railway below £2,500,000, they would take in proportion so much less land from the Government. The land on which the railway ran would be given to them, except that portion which was already in private hands. Arrangements were included in the contract for working certain portions of the line, if the Company required it, by the Government; and there were mutual running powers. The amount of land they were to receive was about 2,000,000 acres, and they would take it in certain proportions as the railway was completed. Clause 36 was the most important, for the Government had therein agreed to this provision, that if, when the line was completed, this land, sold by the Company, had not produced £1,250,000, they would give them further land sufficient to realise that sum. The Government of New Zealand had, therefore, practically agreed, when the railway was finished, to pay half its cost. If they obtained £1,250,000 clear, and the line cost £2,500,000, they would i require to take about £lO per uuie

per week to pay 5 per cent. They had effected one sale of land for £28,000, which was more than double the amount of interest they had, so far, had to pay on their capital. He believed they would sell their land for £1,250,000, 'and in addition, clear enough to cover interest and expenses during construction. Mr E. Brodie Hoare, M.P., seconded the motion. In reply to a question, the Chairman stated that a large proportion of the arrears of calls had been paid since the date of the accounts. The report was adopted, and the retiring Directors and Auditors were subsequently re-elected.