CIVIL WAR.

Auckland Star, Volume LXIX, Issue 67, 21 March 1938, Page 10

CIVIL WAR.

N.S.W. LABOUR PARTY. DEFEAT OF MR. LANG. "REBELS" GAIN TRIUMPH. (From Our Own Corresponde.it.) SYDNEY, March 18. If anvone familiar with the liistorv and politics of the New South Wales Labour Party had fallen asleep at New Year and wakened up here during the last week of Febn. :v, lie Mould have had great difficulty in recognising the movement as it stands to-day. Kven two months ago the State A.L.P. was still dominated by Mr. Lang, and its policy was dictated by the "Inner group" at the Trades Hall, with Mr. Graves, Mr. Keller and Mr. McCanley, of the "Labour Daily," at their head. Throughout the past year, there had been in progress a fierce and prolonged struggle between the industrial section of the A.L.P., represented by the Labour unions, and the political section under Mr. Lang and the Inner Group. Intense Feeling. An important juncture in the contest was reached when Mr. Lang failed last year to wrest control of 2KY, the Labour radio service, from Mr. Garden, and incidentally made a bitter enemy of Mr. Garden himself. No doubt the intense personal feeling that Mr. Lang had aroused against himself by his treatment of sjich formidable opponents as Jock fJarden, A. C. Willis and John Bailey—once leader of the A.W.U., and now in the forefront of the battle against the Langites—has had much to do with the collapse of his authority. Toward the close of last year his enemies convinced another conference, denounced his misuse of power and his mismanagement of Labour affairs, and practically challenged "the big fellow" to a trial of strength. It was a sign and proof of weakness that the Inner Group did not this time venture to expel the "rebels," in accordance 'with the drastic principles it had laid down earlier in the year. Mr. Lang was evidently saving himself for a final effort to recover his power, and early in the New Year the decisive step was taken. Higher Rate. It should be remembered that Mr. Lang some years ago financed the "Labour Daily" to the extent of over £13.000.

.411 this meant that Mr. Lang, having a first call on the asset* of the "Labour Daily," could "foreclose■ on it w.hen .he pleaded, and he naturally strengthened hfe hold upon it by giving it'one of his mouth pieces as editor, and. by dictating it« policy. The industrial section of the party relented Mr. Land's ascendancy over the paper, for they had also invested large sums in it; but they eeem to have felt that in thie respect they were tolerably eafe in his hands. It is therefore easy to imagine the indignation and disgust with which the Labour world of Xew South Wales learned that Mr. Lang had "called up" his loan to the "Labour Daily"; that he had notified the directore that if the sum owing—£17,000, including interest —were not paid by a fixed date he would take over the paper and do as he pleased with it; and that in the meantime he had appointed one of hie faithful henchmen, X. McCauley (his personal secretary), to act as manager and "receiver." Fiercest Resentment. One can only conclude that this wae the last throw of a desperate gambler, ! for it was certain to rouee the fierceet resentment among the "rebels," and to shake the faith of even his own followers. However, the situation was now euch that it could not be met by half measures. The "rebels" had succeeded in putting four members on the "Labour Daily" board, ami they were «o strong that the next election was eure [to give them a- majority on the 'directorate.

With the prospect of losing his hold upon the '"Labour Daily" completely, Mr. Lang risked everything on one final throw —an.l lost. For the industrial unions, far from being cowed by his trueulence, were roused to fierce hostility. The "rebel"' leaders ap)>enled to the rank .and file to stand by "The Movement," ami to raise the money needed. Within a few days they were able to announce that they would accept Mr. Lang's challenge, by taking up his debentures ami buying him out. The closing phases of this curiou< struggle were most interesting and exeiting. The "rebels" calling a special meeting of the "Labour Daily" Board. elwted two more of their number and thus had an overwhelming ascendancy oil the directorate. They then convened a meeting of shareholders—including practically all the powerful industrial unions—to discuss the course to be followed. Mr. Lang had the effrontery to attend this meeting with his usual following, and his aj>; ■•'run nee on the platform wa« the signal for a wild outburst of feeling which converted the assemblage into a pandemonium. Jn the meantime Mr. Magrath, one of the "rebel" spokesmen, had delivered a fervid oration in which he declared tnat Mr. Lang's action in calling :\> hi* debnittiiri! loan was one of tat most f ieaoh»rou-» .i.c} cowardly acts recorded in the history < f Australian Labour. He was proci'dmg to elaborate tlrs when Mr. Lang and his cortege arrived, but when Mr. Lang attempted to defend hims.Of the n\eeting got completely out ■->:' 'land Yells and eatealU Vfe interspersed with cheers till Mr. Lang, after a fewhurried words with th? chairman, l<o'it a ]i imi V.z ting retreat. Th? meeting then poised resolution? strongly condemning Mr. Lang'* "vicious"' action, and pledging the union? to raise the money needed to "emancipate" their paper from bi< "dictatorship." Final Demands. Having gone so far Mr. Lam; was compelled to carry on the fight to the bitter end. When the vril.ij;.' informed the C<".»:rt that they had in hand £17.000 required to pay off the debenture with interest, Mr. Lang put in a further claim for about £7000 to cover the risk f.f possible dnmnp'cs against him on account «if his manager and other officials whom ho had put in control of tho '"Labour Daily." The unions simply refused <;o treat this demand seriously, and as the order of the Court gave them possession after the debenture was "lifted." and they already had h working majority on the directorate, Mr. Lang's discomfiture was complete and the "Labour Daily" passed entirely into "rebel" hands. It was under such chaotic and discouraging conditions as these that the New South Wales Labour party plunged into the election campaign.