MIDLAND RAILWAY.

Waikato Argus, Volume V, Issue 330, 20 August 1898, Page 2

MIDLAND RAILWAY.

(BY TELEGRAPH.—PRESS ASSOCIATION). Wellington, Last Night. The defence has been filed by the Crown to the action of Mr Coates, Receiver for the Midland Railway. It is contended that the interest and debentures are subject to the right of the Crown under the Railways Construction Act of 1881, and all other rights of the Crown ; that the property has not become vested in Mr Coates ; that the debentureholders had knowledge that their security was subject to the rights of the Crown ; that the seizure was specially authorised by law. The defendant denies that any of the notices complained of were wrongly made, and that both the company and debeuture-holders had agreed to waive any irregularity in order avoid the statuary alternative—namely, the retention by the Government of the property. As to the complaint that they had not becu allowed to complete the selection of the land grant, the respondent says this point was pending at the time of arbitration, and the company had then committed a wilful breach of contract. It is further alleged that the provisional, title to the proceeds and certain land sales lias been for some time ready for issue, I ut it has neverbeen made clear who was entitled to them. Other defences are raised, the main one being, practically, that the company had never attempted to carry out their contract, as, after ten years, only 7(J miles out of 235 has been constructed, and those were the easiest to make; that the contract was wilfully broken, and that neither the coir.pany nor the petitioner has any claim. The whole of Mr Blake's arbitration award is inserted as a schedule to the plea.