In July 1885 the deputation accepted an offer from a committee that became the New Zealand Midland Railway Company.

The company contracted with the Government in 1886 to build 235 miles (376 km) of railway between Christchurch and Nelson via Brunnerton (later Brunner) within ten years.

With insufficient capital and a London management remote from the realities of railway construction in New Zealand it had little chance of success.

Legal argument and court actions between the parties ensued and was not finally resolved by the Privy Council in England until May 1903.

[1] The government took over 131 km of track plus 21 stations, 80 bridges, 3 tunnels, 6 locomotives and rolling stock (seven passenger cars and three brake vans).