A RECEIVER IN POSSESSION.

Press, Volume LXVIII, Issue 20545, 13 May 1932, Page 14

A RECEIVER IN POSSESSION.

FORCING MR LANG TO PAY. COMMONWEALTH'S BIG TASK. (FROM OUR O'W.V CORRESPONDENT.) SYDNEY, May 5. There are many people who are convinced that had the Federal Government realised.the difficulties that coua have been placed in its way it wouiu not have adopted tho Financial Agreement Enforcement Act which has meant, practically, that, a receiver has been placed in New South Wales m order to ' compel Mr Lang and U»s Labour Government to pay the debts of.- the Statu. Bo that as it may there' lias been no slackening on the part of the Federal Government m its determination to use every ounce of its power, to force the payment <" the defaulted interest which, at tuo end of this week, totalled £3,OOU,UWThe latest default occurred on lue£ day, and wan on account of interest due on Treasurv Bills issued in, Australia. All demands for the paya» n * of any part of the sum have been ignored. Mr Lang has nothing to saJ. While the greatest crisis in the "istor.y of tho State loomed the ptate House considered only trivial matters, its business one day this week comprising:—(l) To exempt schools of art from seizure for debt. (2) To arrange tho fees of the Nurses' Board. (3) To withdraw A subsidy or £6OOO from certain municipal councils. (1) To amend the Pharmacy Act. No mention is ever made by Mr Lang or any member of his Government or the seizure of the State's revenue, yet the Federal Government has tounc that cvorv obstacle has been placeu in its way in its endeavour to collect sufficient revenue to meet the demand that has been made. True, certain taxation papers were handed over to the Federal Government this week, but they were practically useless ana comprised the assessments that had been served on .a, number of taxpayers who were hopelessly in arrears witn their payments to both the State -\»'i the Federal Governments. More Powers. This week the Federal Government, realising that its powew were insufficient, introduced.new legislation which gives it authority to takd the whole or any portion* of any revonue that might be collected by the State, even including that which comes into tn* cotters of tlie State through the Railway and Tramway Departments. !«• penalties for obstruction were increased, and now run as high as » fine of £2OOO, or imprisonment for 1 three years, or both. Federal authority is absolutely supreme, nnd it would seem that sooner or later Mr Lang must bow to the inevitable. No one knows what he will do, for even ms ministers are not in his confidence. One Minister; however, declared, that thero would ho no election until the term of office expired. It would seein that Mr Lang is staking nil m a favourable decision from the Privy Council enabling him to abolish the Legislative Council. Governor's Position. In some quarters it was anticipatedthat the Governor would recall Mr Lang's Commission, and so bring about a dissolution and an election. That little can be expected from this quarter was made clear by the Governor him> self this week when he was replying to a welcome accorded him at a country town. The Mayor had referred to the critical j>eriod through which New South Wales was passing, and had expressed the hope that his Excellency would.find a solution of the present trouble. "I want to point out," said the Governor, "that it is not for the Governor of the State to find a way out. That is for tho people to do. As the country has had self-government for 75 years, and the people accepted the responsibility of self-government, it is for tho people to find a way out. Of course, I will help in any way that I can. and. you all know that I will be only too pleased to do that." Mr Lyons'* Point of View.

' Giving the reason for his more drastic measures the Prime Minister (Mr Lyons) said; that the attitude of New South Wales was damaging the whole of the Commonwealth. If it continued without further check the damage might he irretrievable. It was therefore the duty of the Commonwealth Governnient to take all thosjjower within its grasp so that the dritt could be stopped ,as "quickly as possible. ' As far as the rail and tram revenue was concerned, tho Federal Government would take; only sufficient to pay the interest bill due on those vast undertakings, and would leave enough for the payments < ot wages and the purchase of materials. Meantime %he finances of the State are becoming more chaotic than gvQT, and no one seems to know how matters stand. The superannuation payments ,to retired civil servants have oeeh dis-. continued, and as these are in the nature of the. payment of trust funds Mr Lang has come in for a great deal of criticism. But he has said nothing in reply,, and to show to the world that he was still financial he paid the salaries of the members of Parliament several, days in advance. It woukMic too much to expect a modern politician to wait for his money. But the pen sions of widows and payments on account of child endowment have gone by the board. Some of the teachen were paid through the Teachers' Federation, and thore who were not members of that industrial union, or who objected to the principle involved, went without. Most of the civil servants have been paid so far, but, it is hard to see how these payments can be continued for long. ' It seems certain th.it j already Mr Lang has withdrawn all the i trust funds out of the bank.