MONDAY, AUGUST 8.

Otago Witness, Issue 2059, 10 August 1893, Page 20

MONDAY, AUGUST 8.

THE POLITICAL SITUATION.

The Split in the Libebal Party. — Prohibition v. Restriction. — .A Possible Appeal to the Country. The fature of the Liberal party becomes a more and more uncertain quantity as each day makes more clear the line of cleavage that yet may split it from end to end. This week gives promise of interesting aspects that may at any moment lead to startling developments of the liquor question in the limpid waters of temperance as understood by the prohibition party. Sir Robert Stout' must prove a more expert 8 wimmer than the Premier, and while thefact is apparent and significant in the comparatively calm waters of the Assembly, it will be more apparent when they reach the troubled sea of the general election. The position of the Government upon the licensing question is an embarrassing one, and ■ together with the daily increasing influence of Sir Robert Stout, is slackening the boads of party in a way that mvy end in its falling asunder to such an extent that the country must be appealed to to determine its immediate future. To-day lam told that such an appeal may be made upon the liquor question, and that it will come about in this way :— The Government following that can be relied upon will receive instructions to strangle the bill now before the House to make way for the Government measure, which the Premier felt impelled to promise that ha might escape the overshadowing influence of the knight. In such circumstances, and the seeming certainty that the Premier will not go far enough to placate - the water party now in the House, it is argued that the Government bill will probably be lost, and then the country will be asked for its verdict. • -- But before all this .comes about the present bill has to be killed, and that is noffthe fate its author will permit to overtake it without a struggle that may prove very disastrous to those who may conspire to take away its life. As I have already said, the bill is the only order for the day on Wednesday next, and Sir Robert Stout is determined. upon its carriage through committee, and that nothing but a "stonewall" of the most extraordinary dimensions will apparently stay its onward course. That he may fight to the best advantage he will, I am told, divest himself of the encumbrance of the amendments of which he has given notice, and which you have already published. It is not intended, however, that these shall be abandoned. On the contrary, they will be considered in another place should the bill survive to get there; and if it does, and gets back to the place from which ifc came, what then? May not the country think with the paradoxical Colonel Fraser that " There is only one man in this Ministry, sir, and that man is not in the Ministry "? And will not members of her Majesty's Opposition ask with more or less feeling' whether the Premier desires time "to consider the position of the Government " ? I do not pose as a political meteorologist, but it needs no prophet to. predict this whisky and water flood is going to -drown somebody.The coming struggle for supremacy between i the leaders if the democratic party seemiMooming into view more and more, and is no longer discussed by the faithful with bated breath. Said a Liberal to me to-day : " There is nothing surer than that there will be a Stout party and a Seddon party at the general election, and I know on which side I shall be." Says another, j " Dick Seddon is going to run the Liberal ! party or smash the machine." Well, if he tries to run' it in the country with "restriction" I fancy prohibition may baulk him, and the man behind veto pass him on the road Graduated' tax and estates. resumption would make a better team for the Premier, but at present he can't swap horses, and may have a hard swim for it before he gets clear of the stream he is tryiDg to cross. Meanwhile certain Opposition members of the Liberal kind seem most friendly in their demeanour to the knight, and it is being asked, What difference is 'there in the Liberalism of Sir Robert Stout and that of the Hon. Captain Russell that they should not come together P But I venture to fay that this is mere lobby talk, without any colourable warrant in authority. Certainly the coming* .week gives promise of much political roffhment. LAND AND INCOME TAX REPORT. Some interesting figures in continuation of this valuable report I now furnish. The attempt to collect an income tax without having branch offices in the three principal cities may be oaid to be still under trial, and it may yet be found 'necessary to have resident officers in Auckland, Christchurch, and Dunedin. Nothing is to be done in this direction until the present system has been further tried, and the chief postmasters throughout the colony will in the meantime act as officers for the department to a certain extent in income tax matters. The amount collected up to 30th June, £73,627, must not be accepted as final, though at present a 'reliable estimate cannot be given as to the additional tax that may be received. The amending Land and Income Assessment Bill which will be introduced shortly will contain provisions setting at rest some doubts - as to the interpretation of the aci-, and further power will be asked to i bo granted to the commisiioner to obtain information re the completeness and accuracy of returns Of income. 16 has been found necessary to obtain such powers as regards both land and income tax. It is desirable to draw attention to the fact that what may be deemed a small result of the income tax for this colony is due in Parliament to the high exemption of £300, and largely to all inoomes from the use or" produce of land derived from owner or occupier (this includes rent and all interest from registered mortgages of land) being exempt from income tax. Land and mortgagee^ and income therefrom, contributed to the land tax alone. The allowance of an exemption of £300 ."to. each partner in a firm has caused a serious decrease in the income ta* revenue, the effect) being to diminish the

tax paid by some firms by £30, and more in certain cases. In others, where there are only two partners, and income is charged as 6d in the pound, the loss is only £2 10s. The attached table gives a classification of land and income taxpayers by occupation or designation, and of companies according to the business they carry on. The results are contrasted with those of the last assessment for property tax in 1888, which were 1 published in 1889. Under both systems the largest contributions were by graziers, sheepfarmers, dairymen, &c.,— that is, by owners of country lands— the total for land and income tax being £89,3*1 and for property tax £81,53*. The number of property taxpayers was 8611, the number of land taxpajers is 4760, who are assessed for ordinary land tax at £60,203 ; 766 are assessed for the graduated land tax at £28,015, and 97 ate assessed for income tax at £1023. In considering these and other results, it should beremembered that some who pay the graduated tax do not pay l*nd tax, but it may be taken to be therule that land taxpayers include those who pay graduated tax, and the number of the latter are therefore omitted in theee comparisons. Further, some of those who pay land trfx also pay income tax. Land companies (15) were assessed for property tax at .£12,049, and land companies (19) were assessed for land tax at £16,579,' and graduated tax £15,232. which with the income tax, £396, make up £3227, which shows an increase of £20,158 in the present ad compared with the late system. Loan companies contribute £30,923 for land and income tax, as against £38,147 property tax. Life insurance companies £11,790, as against £11,749; fire and marine insurance companies £82 >9, as agaimt £6652 ; banks pay £10,184, as against £14,244 ; 'mercantile companies £16.302, as against £9384 ; manufacturing companies £7549, as against £3784; manufacturing and mercantile, £5622, as against £5807 ; coal mining, £1425 as against £1498 r gold mining (23), £2735 as against (113) £2545 ; building societies pay £1987, and were-nofc assessed for property tax. Church property, corporations, and trusts are at £2736, as against £2046. THE KINDERGARTEN SYSTEM. » . .The friends and supporters of this increasingly popular system of infant teaching are becoming more and more in evidence in Iheir efforts to induce the Government to accept it as a part of the public school system. In response to inquiries upon the subject the Minister for* Education informs me that he personally favours the kindergarten, but its practical adoption rests with' the local boards of education, who have control of the money. THE MIDLAND RAILWAY. The que&tions in connection with the new proposals for a settlement of the Midland Railway contract, which were referred to the Railway Commissioners and Treasury officials, have been returned with the required reports. The Premier informs me that he hopes to lay the papers before Parliament during the present week. * THE LICENSING BILL. Sir Robert Stout's amendments in his Licensing Bill will, I understand, be remitted to the Legislative Council, in order that the measure may reach that chamber as quickly as possible. The design appears to be to, get the bill completed there, and so compel the Government to make their promised measure of equal efficiency , or face the risk of defeat in the Assembly. CANDIDATES FOR DUNEDIN CITY. I am told that Messrs Fish, Dawson, and Pinkerton will be bracketed for. the Dunedin City election in the. interests of the liquor party. My informant says that this ■ combination is expected to work thus: Mr Pinkerton has a large personal following in Dunedin, and is an 1 ex-president of the Trades and Labour Council. The mere fact of his political association with Messrs Fish and Dawson, if he concurs, will, it is presumed, bring a support to those gentlemen they would not otherwise obtain. This sounds plausible, and may flutter some of the water party. , THE CADMAN-REES JURY. In reference to the- circular issued by the Napier jury in the Cadman-Rees case (and which I forwarded last night) the Wellington Press has a leader, in which the denial of the statements made, by Mr W. C. Smith in his speech against, Mr Reeson the, 12th July is repeated, the article concluding : -*' The matter should be put thoroughly to the proof, and if the statement of. the jurors is sustained* Mr Smith' should be compelled to resign his seat in Parliament. Ever since this CadmanRees business has come fully out, we have, thought he should not be in the House, and unless he can disprove the charge now brought against him by these Napier jurymen, he should be sent packing from political life without an hour's graca. The statement complained of does not appear in Hansard, but according to the circular of the jurymen was in an uncorrsoted proof of the speech supplied by Mr Smith himself to Mr Swan, member for Napier. It was also sent to a couple of newspapers at the time of deliverance, but in neither case was it published. JOTHNG3. The Liquor Bill of the Government will not be so inimical to the* whist y party as the bill of Sir Robert Stout, and it may therefore be presumed not so acceptable to many honourable members who follow the 'knight on the temperance question. ' . Mr Cadman will probably be in Wellington to-morrow, so the question of his inclusion in the Cabinet will soon be settled. It has been -suggested to me that he will be offered the portfolio in order that he may refute it. Thismay be read in two ways. I still think it will be offered and accepted. The Kaitangata Relief Fund Bill is designed to expand the powers of the trustees in order that they may stop or increase contributions. The Government seem likely to take up the questions of accommodation for shearers and for protecting the owners of threshing machines for work performed by them. • The Cabinet had a long sitting to-day, and discussed principally Native legislation. The Bill Prohibiting the" Supply of Intoxicating Liquor to Children is to be under the charge of the Hon. Mr Shrimski in the Legislative Council. ' The Coal Mines Act Amendment Bill is a small measure providing necessary legislation in .regard to shale. Several members who intended to go to Hawera to attend a banquet to Mr Bruce were prevented from doing so by the interruption of tho train service through slips on the railway. The Times thinks the provisions of the Stock Bill "area little drastic," but says they come from the agricultural and pastoral brain of the country.