53

D.—4a,

Sir B. Stout: I may mention that there is a case (29, Ch. Div.) where one of the parties to the case was a man named Devala, which went to this effect: " Supposing the chairman, at a meeting of shareholders or directors, makes a statement, can it be said that that statement can be used against the company ? " It was a case where a man wanted to get his name removed from the share-list on the ground that he had been misled, and he wanted to use the admission or statement made by the chairman that the prospectus was wrong, and it was held that it could not be so held. Statements made by members of Municipalities are not binding on the Municipalities. Mr. Hutchison: But an admission made by an officer of a Corporation in relation to a claim by a ratepayer would be evidence, and that would be this case. I do not think there need to be any tenderness about statements made by those in authority. The Minister for Public Works is the representative of the Queen for the operative works of this contract. Sir B. Stout: Is he in authority; that is the question? Mr. Hutchison : It will be seen under clause 4 of the contract that the plans of the railway are deposited with the Minister of Public Works. I will, however, pass by for the present the statement I intended to open, made by the Minister on the introduction of the Midland Bailway Bill, until we have been able to gather a little more light on the subject; but Ido not abandon the point, and, as at present advised, will, at the proper time, tender it in evidence. On the 18th October, 1894, another letter was written by the manager to the Minister on the subject of extension of time :— " The New Zealand Midland Bailway Company's Contract. " I have the honour to state, for reasons of which the Government are fully aware, that the above company will not be able to construct and finish the railway within the period limited in the contract of 3rd August, 1888. " I have the honour, therefore, to apply through you to His Excellency the Governor to extend, by indorsement upon the original contract, the period thereby limited for the completion of the railway for such further time as His Excellency may deem reasonable, having regard to the circumstances .of the case. "It will hardly, I think, be suggested by the Government that the delay has been caused by the wilful default or neglect of the company, but, as I make this present application in the terms of clause 42 of the contract, I am advised that it is necessary that I should formally offer to satisfy His Excellency in Council upon the point, should it be raised. " In making the request, I must be understood to be doing so without prejudice to the position which the company may be compelled to adopt with regard to the other matters in question between the Government and the company. " I trust that I may have the favour of a reply at your early convenience, and that you will inform me what extension the Government will be prepared to advise His Excellency to grant." The reply was, on the 30th October, 1894, as follows : — " The Neiv Zealand Midland Baihvay Company's Contract. " In reply to your letter of the 18th instant, applying for an extension of time for the completion of the above-nientioned contract, I am directed by the Minister for Public Works to state that before submitting the application to the Cabinet for consideration he should like it to be accompanied by a full statement of the grounds on which it is based, and he will therefore be glad if your company will be good enough to furnish such information at their early convenience with the view of the application in question being considered in Cabinet at an early date. " I have,&&o f "H. J. H. Blow, " Under-Secretary for Public Works." The reply to that was as follows: — " Sir, — " Christchurch, Ist November, 1894. " In reply to your letter of the 30th ultimo, requesting the company to furnish a full statement of the grounds on which the application to His Excellency the Governor for extension of time for the performance of the contract is based, I beg to submit that if it be suggested as a bar to the extension of the time that the delay has been caused by the wilful neglect or default of the company, that a statement of the facts (if any) constituting neglect or default should m the first instance be prepared by the Government against the company, in order to enable the company to satisfy His Excellency the Governor that the delay has not been caused by such acts. " I have, &c, "The Hon. the Minister for Public Works, Wellington." "Bobert Wilson. Then came this letter:— "Public Works Department, Wellington, 6th November, 1894. " Sir, — " Midland Bailway Contract: Application for Extension of Time. " I have the honour to acknowledge the receipt of your letter of the Ist instant, in reference to the above matter, and in reply to state that I think you have somewhat mistaken the position. The contract provides that the Governor shall, before granting any extension of time, be satisfied that the delay has not been caused by the wilful default or neglect of the company; but it by no means follows that the Governor is bound to grant an extension of time simply because the company has not wilfully or negligently caused the delay. " Under the circumstances, therefore, it is only reasonable, I think, that the company should furnish a statement of the grounds on which its application is based, and for what period an extension is sought. I shall be glad, therefore, if you will kindly let me have such a statement at your convenience. " I have, &c, "B. J. Seddon, " Minister for Public Works, "The General Manager, New Zealand Midland Bailway Company (Limited), " Christchurch." 10—D. 4a.