TEST OF POWER.

Press, Volume LXVIII, Issue 20498, 17 March 1932, Page 11

TEST OF POWER.

STATE TAXES TO BE ATTACHED. COMMONWEALTH ACTION. SEQUEL TO MR LANG'S DEFEAT. (UNITED PRESS ASSOCIATION—BY ELSCTRtC TELEGRAPH—COPYRIGHT.) (Received March 16th, 10.15 p.m.) CANBERRA, March 16. The clash between the Commonwealth and New South Wales Governments is rapidly nearing a climax. The Prime Minister, Mr J*. A. Lyons, in the House of Representatives to-day moved a resolution under the Financial Agrcoment Enforcement Act giving the Commonwealth power to attach £924,082 from New South Wales levenue. Tho sources from which this may be obtained comprise aiiy of the following:—lncomo tax, betting and totalisator taxes, motor taxation, entertainment taxation, and lottery receipts after the deduction of tho prizes. Mr Lyons told the House that a sufficient sum to cover the New South Wales Government's default on interest payments to bondholders could be attached from the State income tax over the next eight weeks. He added that if the New South Wales Government maintained its present attitude it would default to the extent of £4,500,000 hi overseas interest by Juno 30th, while the default on Australian interest would bring tho total to £.6,000,000. Mr Lyons was subjected to violent interjections from the Labour opposition. The resolution was agreed to and the Senate is now debating it.

VALIDITY OP THE ACT. APPLICATION TO HIGH COURT. (Received March 16th, 10.15 p.m.) MELBOURNE, March 16. The full Bench of the High Court of Australia will sit to-morrow to determine tho validity of the Commonwealth's Financial Agreement Enforcement Act.

An application has bcon made by the New South Wales Government for an injunction restraining the Commonwealth Government from enforcing the provisions of the Act and also asking for a declaration that the Act is ultra vires and invalid.

TIN-HARE RACING. POLICE TO INVESTIGATE ALLEGATIONS. (Beccived March 16th, 8.15 p.m.) SYDNEY, March 15. In the Legislative Assembly, the Premier, Mr J. T. Lang, replying to Mr M. Kilpatrick, said ho had read the Press reports of the allegations made by Mr B. S. B. Stevens (Acting-Leader of the Opposition) concerning tin-hare racing, and had asked the police to take the matter up, and see whether anybody was attempting graft, bribery, or corruption, and if so, to briijg the culprit to justice. Mr G. E. Ardill (Nationalist) asked: Will the Premier table the papers! Mr Lang repliod: There are no papers as regards this muck-raking. X asked the Police Commissioner to see me and he has promised to investigate the allegations. [Mr Stevens asked for the appointment of a Eoyal Commission to enquire into certain dealings in connexion with the greyhound coursing of tin-hares. Ho said in the Legislative Assembly that he held statutory declarations referring to corrupt and licenses, and added that these implicated certain members of the Lang Ministry, and a high Government official.]

THE NEW GUARD. POLITICAL AND POLICE DENIALS CANBERRA, March 16. Mr J. A. Lyons (Prime Minister), in answer to questions in the House of Representatives, denied that he sought protection from the New Guard during the election campaign, and had promised to introduce legislation to provide for the deportation of Communists. A Sydney message reports: Both the Commissioner of Police, Mr W, H. Childs, and the Police Officers' Association, have replied to Colonel Eric Campbell's statement, denying his charges that the police officer who instituted ,the prosecution against him in the insulting language case had been promoted.

ARBITRATION BILL. NEW SOUTH WALES PROPOSALS, SYDNEY, March 16. The Industrial Conciliation and Arbitration Bill was recommitted in the Legislative Council. Several important Government proposals were rejeoted, and the sub-clause of the Bill providing that a union officer could require employers to dismiss employees who had remained loyal during the 1917 or subsequent strikes was struck out.

WOMAN MURDERED. (Received March Itith, 8.10 p.m.) SYDNEY, March 16. Mrs Katherine Sims, also known as Mrs Ballf a resident of Erskineville Suburb, was murdered in fiendish circumstances. Her attacker inflicted terrible razor gashes as though trying to reach the heart, then cut her throat. Neighbours were not aware of the crime, but the police are searching for a man who obtained a change of shirt nearby owing to the blood-bespat-tered nature of hiy own shirt, saymg that lie had been the victim of a gang assault.