SYDNEY'S BIG DAY.

Auckland Star, Volume LXIII, Issue 121, 24 May 1932, Page 9

SYDNEY'S BIG DAY.

EJECTION OF MR. LANG-1 THE GOVERNOR'S LETTER"SEEKING OTHER ADVISERS." PREMIER SAYS, "I'VE FINISHED." (From Our Own Correspondent.) SYDNEY, May 20. When I wrote last, Mr. Lang's Mortgage Tax Bill had been rushed through the Lower House and was under discussion by the Legislative Council. It seemed quite possible at the time that it would be defeated, as Mr. Scullin and the Federal Labour party had repudiated Langism and condemned the bill. But persistent lobbying and that perverted devotion to "solidarity," which has provided an excuse for so many blunders before, and the bill was passed. The voting was close, but some of the Labour members deserted Scullin for Lang, casting their votes in tlie bill's favour.

Friday morning thus broke gloomily for New South Wales. There could be no doubt that the attempt to enforce this measure would ruin both Sydney and the country districts and would destroy the credit of New South Wales, while reacting most disastrously on the financial status of the Commonwealth, and a wave of pessimism seemed for the moment almost to overwhelm the city. Though it was known that the Federal Government had promised aid and that the Governor, with the Imperial authority behind him, might in the last resoit intervene, the outlook seemed singularly cheerless, and scores of reputedly wealthy men —to say nothing of the directors of even wealthier companies—were anxiously revolving in their minds the expedients to which they might be compelled to resort if the mortgage tax were enforced and they were called upon to find £1000, or £10,000, or even £1,000,000 in cash within 14 days. And then when hope for the moment seemed almost gone, the clouds broke and light came. Federal Power Acts Swiftly. The first ray came from Canberra, where Mr. Lyons had been at least as good as his word. Parliament met early on Friday morning and the Prime Minister submitted to the House of Representatives a measure carefully devised to nullify Lang's" Mortgage Tax Act. For it provided that "notwithstanding anything in any law of any State, or anything done under such law to the contrary, no mortgage or mortgagee is to be rendered liable to pay by way of taxation any heavier impost than would have been charged or liable under the laws of the State in force on April 30, 1932." It further provided that "no capital levy shall be struck" if the striking of it would impede or conflict with Commonwealth taxation, and it supplied special protection for the companies and | corporations which would have been virI tually ruined by Lang's bill.

To get this measure through promptly, Mr. Lyons had to convince Parliament that the country was facing a great emergency, and he succeeded completely. He was opposed by the handful of Langite.i under Mr. Beasley, and by Mr. Scullin, who, with a few followers, while rejecting Langism, professed to regard tho bill in principle as a dangerous encroachment upon State rights. But by 2.15 p.m. the bill had passed its third reading in the Lower House. It went straight to the Senate, and the opposition was confined to Senator Dunn, one of Mr. Lang's "stalwarts," and a few "State Righters" like Sir Hal Colebatch. But it was through the Senate in a little over an hour, and by Friday afternoon Sydney knew that Mr. Lang had been checkmated. Enter His Excellency. But Mr. Lang was still "the man in possession." The city was still gloomy, those who had anything to lose were still doubtful and apprehensive, the Langites were making no effort to conceal their confidence; and then, before the close of this momentous day, the impossible had happened. By 6 o'clock the paper boys were shrieking to a listening world the tidings that "Lang is out." What had happened? To answer that question, I can only refer briefly to the correspondence that passed between the Premier and the Governor on May 12 and May 13. On Thursday Sir Philip Game drew Mr. Lang's attention to the fact that the Government had issued to various administrative departments a circular, directing that revenue must not be paid over to the Federal officials, though this transfer was authorised and dictated, by the terms of the Enforcement Act. The Governor asked Mr. Lang if this did not mean that Federal legislation was being deliberately flouted and disobeyed. The Premier replied that the circular was issued with the object of "maintaining the essential and social services of the State." As to his Excellency's polite suggestion that, if the circular were illegal, it must be withdrawn, Mr. Lang simply and bluntly refused to obey. Tho Governor then suggested a personal interview, which took place at 3 p.m. on Friday, just after Mr. Lyons had succeeded in getting his bill through at Canberra. What passed at this interview is, of course, not public property; but it is credibly reported that Mr. Lang warned the Governor that if he interfered ho might find himself returning to England on an early boat. However, this may be, Sir Philip, after the interview was over, wrote again to Mr. Lang, pointing out that the Government had admitted breaking the law, and adding these significant words: "If Ministers are not prepared to abide by the law, then I must state, without any hesitation, that it is their bounden duty under tho law and practice of the Constitution to tender their resignations." "Your Request is Refused." Mr. Lang's reply is a. striking example of the boorish discourtesy and brazen hardihood that he so frequently displays. "If your letter means that you are requesting the resignation of Ministers, you are hereby informed that your request is refused." To which Sir Philip very naturally returned the only appropriate rejoinder: "I feel it my bounden duty to inform you that I cannot retain my present Ministers in office, and that I am seeking other advisers." And at G oclock on Friday evening Mr. Lang, having finished whatever correspondence was still on his desk, came down from his room, remarked, "I've finished here" to his Under-Secre-tary, shook hands with office boys and messengers, and went off to his farm at Windsor. Perhaps the most characteristic feature of the whole episode is this, that Mr. Lang's colleagues and followers did not know that the end of the Lang regime had coine till they saw the news of his dismissal in the evening "extras."!