CONFISCATION OF THE LINE

(FROM OUR SPECIAL CORRESPONDENT.)

WELLINGTON, June 25. The Government !hae been advised that a petition to the New Zealand Parliament from the Midland Railway debenture holders lias been received by the Agerat- Generaa in London, through the counsel for the fofeign bond-hoiders, and that it will be posted to the colony by the first mail- In view of this it will be interesting to state the present position of affa-irs. .The debentoireliotaere claim that £800,000 of their money has been expended in connec tion with the railway, and further, that they have received no interest on this sum. With the accrued, interest they claim that they are due over a million pounds, and this is the amount they are wow claiming from the colony, owing to the impending confiscation of the railway. It appears to be absolutely certain that _ the line with the railway plant, etc., will be confiscated by tho Government on July IBth\ Notice has been given to that ef fect, failing payment of the amount ex pended on the railway by the Government. This amount is about £100,000. and as the company is in liquidation its payment is out of the question. In the ordinary course of events, therefore, the line will become Crown property on July 18th. It is understood that Mr Seddon is favour able to the completion of the railway, and that the loan foreshadowed in the Gover nor's speech will, if agreed to, be partly used for this purpose, it is thought that the expected petition of the debenture holders, which is to arrive shortly, will re sult in their receiving some recompense after the property is finally annexed. Lord Ave bury, formerly Sir John Lubboek, is the mov ing spirit in the endeavour to obtain recog nition for the claims of the debenture holders, but, in accordance with the decision oi the Chief Justice, the petition to Parliament wiU, Ao doubt, have to come from the re ceiver appointed by the Suvreme Court.
