FEDERAL VICTORY

Poverty Bay Herald, Volume LV, Issue 17747, 6 April 1932, Page 8

FEDERAL VICTORY

HIGH COURT DECISION GARNISHEE ACT VALID (Elec. Tel. Copyright—United Pross Assn.) (Received April G, 2 p.m.) SYDNEY, April G. The High Court to-day gave its decision in favor of the Commontv call h Government in the avium in which tlie Government of New South Wales, villi which the Victorian ami Tasmanian Governments were associated, sought to have the .Federal Financial Agreement Enforcement Act declared invalid. Of the six judges who heard the cose, four decided in favor of the Act, and the remaining two presented u dissenting opinion. Under liio Act the Commonwealth Government is given the power to garnishee the revenues of any State which fails to abide by the agreement entered into at last year's Premiers’ Conference, the action being directed particularly against New youth Wales, as a result of whose defaults the Commonwealth has been called upon to meet large sums owing for interest by the felt ate. A sensation was caused recently when it. was announced that Air. Fang, in an endeavor to anticipate the operations of the Act, withdrew from the banks all the available State funds and lodged them in the Treasury. This week Sydney has been perturbed by rum.ors of the course Mr. Fang intends to adopt to thwart the Federal authorities, it being alleged that he and Ids Ministers are prepared to use what amounts to physical force to prevent the provisions of the Act - being given olivet to.