MIDLAND RAILWAY CASE.

Waikato Argus, Volume V, Issue 370, 13 December 1898, Page 2

MIDLAND RAILWAY CASE.

(])Y TELEGRAPH—PRESS ASSOCIATION). Wellington, List Night. The hearing of the Midland Railway case was began to-day before the Chief Justice and Mr Justice Edwards. Sir E. Stout, Messrs Cooper and Findlay appear for the Receiver, Messrs Coates and Quick for the debenture-holders, and Messrs Bell and Gully for the Government. There are two motions before the Court; one 13 for a summons directing the Crown to show cause why an absolute sale of the railway should not take place, under which the Receiver should obtain possession of the railway and sell it if he thinks fit; and the other is a summons by the Crown to the Receiver to show cause why the order appointing him should not bo rescinded or varied, inasmuch as that order directs the absolute sale of the railway, which the Crown alleges the Court has no power to order. It is understood that the case, which is expected to last several days, will go to the Privy Council. Sir R. Stout said the contention of the Crown was that the debenture-holders had no security at all, and he submitted that the Legislature never intended such an injustice. Mr Cooper contended that under the Act of 1883 peop'e who lent the company money had a first charge over the company's property. Mr Bell, for the Crown, admitted that the deben-ture-holders had a first charge, but argued that it was subject to the right of the Crown to step in for breach of contracts. The argument will probably finish to-morrow.