918 THE FEDERATIONS AND THE UNION [PART IV 
Government institutions passing automatically to the Federa- 
tion the moment the transfer took place.! As a considera- 
tion for the surrender of an area of 523,620 square miles, 
including many large navigable rivers, 1,300 miles of coast- 
line, and several good harbours, South Australia was released 
from a financial burden which weighed very heavily on it, 
and of the obligation to develop territory which its means 
were inadequate to deal with. The Commonwealth took 
over the present loan liability on the Northern Territory, 
which amounted on June 30, 1908, to £2,725,761, repre- 
senting the capital cost of the Port Darwin-Pine Creek 
Railway, harbours, public works, &c., plus the sum of 
£602,222, the accumulated deficit or advance account on 
the whole administration, bringing the total liabilities to 
be taken over to £3,327,983. In addition the Common- 
wealth Government is to acquire at cost price the Port 
Augusta-Oodnadatta Railway in South Australia, involving 
a liability of £2,242,342, and it is to complete the railway 
between Pine Creek and Oodnadatta at an estimated cost of 
£4,500,000. The state is to authorize the Commonwealth, 
under s. 51 (xxxiii and xxxiv), to construct a railway also 
to the western boundary of the state (as part of a railway to 
link the east and west), and to maintain and work the 
railways thus acquired. There is, it may be added, a serious 
difficulty as to'the route of the railway in question. According 
to the interpretation placed by the Crown Solicitor of South 
Australia on the agreement for the surrender, which is to be 
carried out bv the Acts passed in 1907 by the Parliament 
! See Commonwealth Parl. Pap., 1907, No. 4 ; 1909, No. 21 ; 1910, Nos. 
22, 26; South Australia Act, No. 946. The Commonwealth Bill failed to 
pass in 1909 by a majority of two votes in the Senate. The Labour Ministry 
in the state in 1910 then returned pledged to repeal the Act of 1907 for 
the surrender, but on obtaining office Mr. Verran was, it is said, overruled 
by his colleagues and decided to accept the position. The Legislative 
Council passed through the House a Bill to repeal the Act, but the Lower 
House declined to accept the Bill, and ultimately, on the Commonwealth 
Parliament passing its Act, an Act, No. 1029, was passed in the state 
and the representation of the territories in the State Parliament was 
repealed. See Parl. Pap., Cd. 5582, pp. 27, 28, 41.