SURPLUS REVENUES.

Dominion, Volume 2, Issue 334, 22 October 1908, Page 7

SURPLUS REVENUES.

A TEST CASE. COMMONWEALTH AND THE STATES. FEDERATION "WINS. (BY TELEGUATH —PRESS ASSOCIATION—COPrttIQUT.)' (Rec. Octobor 21, 11.30 p.m.) Melbourne, October 21. In the case brought by New South "Wales, on behalf of tho States, to test the constitutionality of tho Commonwealth Parliament's Surplus Revenue Act, tho High Court unanimously decided that tho Act was constitutional, and gave judgment in favour of the Commonwealth as against the States. Tho State Premiers disputed tho right of tho Commonwealth to absorb tho surplus revenue after paying the statutory three-fourths to tho States, and,took combined action to secure a decision of tho High Court as to whether the Act is valid. The action was brought against the Commonwealth by the Crown Solicitor of Now South Wales to recover .£160,000 which plaintiff ulanns (is moneys parable to the State of New South Wales as surplus revenues of the Commonwealth for the month of June, 1908. The Commonwealth Parliament passed the Surplus Kevsnue Act, which came into force on June 1 3. Afier (he passing of these Acts the Commonwealth Treasurer, purporting to act under and in accordance with these Acts, paid to tho credit of the narbour and coastal defence account the sum of .£250,000, and paid to the credit of the invalid n ,s™™ ol(l a ? e P ension s account the sum of £182,000, nnd debited these sums against the States, on the ground that the same formed the portion of the expenditure of the Commonwealth. The proportion oflthe anionnt debited to the State of New South Wales was ,£160,100, and the balance payable and paid to the State was reduced by that sum. The qhescion the C P to „decide is: "Was the said sum of ,£160,000 lawfully deducted from the balance payable to the State of New South Wales? It was agreed that whatever wav the 1 Court decided, tho successful party shall be awarded the costs of the action, and the special case.