TENSE FEELING.

Auckland Star, Volume LXV, Issue 134, 8 June 1934, Page 7

TENSE FEELING.

STATE'S CHALLENGE.

South Australia to Resist Federal Butter Law.

RELATIONS VERY STRAINED

(United P.A.-Electric Telegraph—Copyright)

ADELAIDE, June 7.

The Premier of South Australia) Mr. R. L. Butler, intends to fight the Commonwealth Government in regard to its powers to enforce the provisions of the butter equalisation plan. Under this plan South Australia is compelled to export 50 per cent of its butter and to import almost an equivalent amount from the larger States for local consumption.

Mr. Butler points out that if the butter, trade of Broken Hill is taken away from South Australia there will be no alternative but to test its rights in tho interests of those engaged in the dairying industry. Further, he indicated that the relations between his State and the Commonwealth, like those of West Australia and the Commonwealth, are very strained at present.

Fortunately for West Australia, said Mr. Butler, it had refused to be a party to the equalisation plan which replaces the Paterson scheme

A message from Canberra states that the Prime Minister, Mr. J. A. Lyons, is determined to take appropriate action to meet Mr. Butler's resistance in challenging" the Commonwealth's power to seize butter sent across the border into Broken Hill.

PAY-OFF IN SYDNEY.

SHIP STEWARDS OBJECT.

SYDNEY, June 7

The Maunganui's departure for Wellington was delayed one hour this afternoon, owing to a dispute among the stewards. It was understood that the vessel -was to remain a month in New Zealand, and there was a protest by the stewards resident in Sydney, owing to being paid off hero instead of accompanying her to the Dominion. Shortly before sailing time a number of tha stewards walked off the ship.

OVER-SUBSCRIBED.

NEW COMMONWEALTH LOAN.

CANBERRA, June 7,

The Prime Minister, Mr; J. A. Lyons, announced this evening that the £12,000,000 loan was definitely closed this afternoon.' The Government will ration the large subscriptions in order to meet the convenience of small investors as it is understood that the loan has been heavily over-subscribed.