PARLIAMENT.

Tuapeka Times, Volume XXVI, Issue 1812, 15 July 1891, Page 5

PARLIAMENT.

For some days serious allegations have been made on the floor of the House ia regard to the character of Rangers Campbell (Southland) and Connell (Wellington), appointees of the present Minister of Lands, aud last Wednesday the Hon. G. F. Richardson asked whether the Minister had caused inquiry to be made in regard to the assertions in question. Tne Minister of Lands made the following reply : — This question may be divided into three parts. In answer to the first part — viz., if I have caused inquiry to be made into the allegations made in respect to two Crovvn rangers recently appointed, my answer is "Yes." tn reply to the second portion in the case of Campbell, the Southland ranger, I have made inquiries, and find that he has been for over thirty years resident in Southland ; that he is a man highly respected and esteemed in the district by a very large number of ptople ; that he has been for several years Crown lands and forest ranger; tbat be received first-class certificates from the Commissioners of Crown Lands under whom he served ; that there have been no charges against him during- the whole time he held the office of Crown lands ranger; that he has been a most zaalous and careful officer, and that the only thing that could be brought up against him was that he was unfortunate enough to have a lawsuit over a private land transaction, from which he withdrew after receiving certain sums of money from the plaintiff in that case. Campbell strenuously denies that be was aware of the existence of tbe orphans and their condition when he asserted his rights to possession. With regard to Ranger Connell, he was recommended to me for employment by the member for Waitotara, and coming from tbat district I considered that Mr Hutchison would know his character. I also received a reference from another member of Parliament (not a member of the Government), a justice of the peace, and three other gentlemen holding good positions in the district. When the charges made against Connell'a character in the House were heard, I immediately asked tbe Minister of Defence to make inquiries as to the truth or otherwise of these charges. Inspector Thomson's report was read in the House the other day. Further inquiries are being made. From the ' Police Gazette ' it appears that three persons named Connell have been convicted, but difference in the ages and descriptions of tbeae persons makes it apparently impossible that it should be one and the same person. I directed the department to write to Mr Connell himself, and since a further charge has been brought against him in the House. Therefore fuller inquiries have been*ordered, the result of which has not yet come to hand. Ranger Connell haß been suspended by me, partially in deference to what has been said about him in the House, and partly owing to the fact that he has himself acknowledged having written to an hon,, member of this House

what I considered a very improper letter, and he is now suspended pending full inquiry. Tbe Hon. Mr Fergus asked whether the Minister was aware that Campbell had been expelled from the police for brutal illtreatment of a prisoner in a cell, The Hon. Mr M'Kenzie said he was not aware of it. The Hon. Mr Fergus : Then, it is a fact. CLOSE Ol' THB FINANCIAL DEBATE. Sir Georow Gbey spoke as follows :— We had entered upon an epoch which appeared likely to be a peaceful and triumphant march. He had generally heard a feeling of satisfaction throughout the colony at the character of the new Parliament, and he urged members not to fall short in their endeavors to give effect to the wishes of the people of New Zealand, aye and of the whole of Australasia. There \ were now located on the lands of the colony Borne 16.000 or 16,700 families, representing about 100.000 souls, and occupying about 3,000,000 acres, while on tbe other band 336 private owners and sixteen banks representing 312 persons, owned between them 7,348,713 acres, unimproved, the value of which, at a low estimate, waa nearly sixteen millions. What a disparity there was here. It was said, but he did not believe it, that all these properties had been lawfully acquired. Could it be said that such a disposition made by means of a Parliament which had been sup posed to be the trustees of the people wai lawful ? The members of this Parliament must remember that they had taken office under the condition that they were to levy a tax upon the unearned increment. To say that by doing so they must not involve the present landholders in ruin, was to raise a point which Parliament bad nothing to do with. Was the whole population of tbe colony to be kept for perhaps half a century in difficulty and distress, and prevented from getting land, in order to protect men who held such large tracts of country ? Their duty was to make the land pay its proper share of taxation, and join in framing a proper Land Bill which would achieve that great object. Justice to the masses demanded that it Bhould be done. The field was wider than some people represented, and he believed a land tax would be beneficial to all. When the land tax waa introduced in former years the great landowners trembled and looked upon it as che thin end of the I wedge. Everybody knew the means that I were resorted to to repeal that tax and to put in its place the Property Tax, * hich had continued until the people rose against it and insisted upon a change. Years of suffering had shown how great a boon had been lost, and they were now about to get and keep for ever the tax which all mankind were longing to gain. In spite of what had been said about the income tax, all the great administrators of the world had had recourse to it in times of difficulty and distress, and pronounced it to be tbe best and wisest tax which under the circumstances could be imposed. A fair investigation would show that the Property Tax waa the most open to fraud, and that under it wealth had never paid its proper share of taxation. An income t&x Bhould be a tax on every income drawn from the country, without exception ; yet they were told that these who drew their incomes from tbe country by means of interest payments should escape. The extraordinary distinction was made that when the holder of borrowed money resided in New Zealand and spent here what he drew from the colony he ought to pay while if he sent his bonds to Australia and got his income remitted from there, he should not He denied the right to make distinctions in the general taxation, and said that the favoring of the wealthy was exactly the cause of the French Revolution. No one could object to a tax which was to be raised on account of great financial difficulties that oppressed us. The conviction in his own mind was complete, but if the majority were against him be would succumb. Nevertheless, he felt it to be his duty to express his opinion. It was no argument to say that a neighboring colony did not tax bondholders, for that other colony had no income tax, without which a tax on bondholders was unjust. As to the proposed land tax it was to his mind a tax which occupied the minds and hopes of so large a portion of tbe people because the one dormant idea that was general was that men should, as far as possible, escape hereafter from taxation the results of their labor and their enterprise, and that only those things should be taxed which owed their value to the labor of the masses. Why should this colony have spent so many millions upon works, and why should the thousands of little ones tbat were coming on be left to pay the interest on these loans when those who benefited by that expenditure revelled in luxury in other parts of the world, leaving the people here in poverty and distress ? The time had come when by peaceable means justice would be gained for all mankind, and each' should have his fair share of what belonged to him. The whole country had entrusted Parliament with that great duty, and no member with a sense of duty would be found wanting. There were, however, one or two difficulties. New Zealand suffered much from the existence of a Second legislative Chamber, and he believed that it was the duty of this Parliament to abolish that body, and to free the people from a Chamber not elected by themselves, wbicti hampered their representatives in the interest of the great landowners and banking institutions, and the Legislative Council could thrust back every desire of the country and embarrass it for yeara. Had Nature put any distinguishing stamp upon these men to Bhow their fitness to rule ? Why should he have to submit to men who he felt had no prescriptive rie;ht to rule 'over him and others ? The gre&t mass of our hurtful laws were mainly attributed to that Second Chamber. He had often felt shame and sorrow at having to submit to grievous wrongs done by it. But he boldly admitted there had been great and just men in that Chamber, but : they were very few, and no gratitude to a few should lead them to support a lasting wrong to New' Zealand. He thought that they should set an example in leading on sucb a great and just movement. The recent attempt to force eighteen members into that body, and make it the sovereign body of the country for years on account of the difficulty of counterbalancing their power, pointed the moral. If be was wrong as to the number he was sorry, but the six put there was bad enough. — (Laughter.) Then, the late Government appointed 125 justices of the peacs — mainly, he believed, for political reasons. That was a desecration of the bench of justice horrible to contemplate. But, had tbe justices been made elective, as he had often advocated — and that would have been done had there not been an Upper House — that would have been impossible. When he heard the large landowners talking of splitting up amongst their children the estates which had not in their integrity been honestly obtained— (Cries of *' Oh }")"— and when he thought of the hundreds of thousands of little ones, either here or soon to be here, who were impoverished to enrich the few little ones of the mighty — when he reflected upon the power that enabled these things to be done— his life was rendered a burden and a sense of wretchedness came over him. It made him all tbe more indignant at the existence of an Upper Houi>e which oould maintain and force such a system upon {his country.— (Prolonged cheers.) The Premier, who was received with applause, said that the Bill to impose a land

and income tax had not yet received its final revision ; but, even if it had, he would not have brought it down, because he held with Sir H. Atkinson that the matter of general policy and details should be separately dealt with. Besides, he held that the collective wisdom of the House was greater than that of any member in it. la the course of the debate he had learned that some holders of large estates would manage to avoid the graduated tax, and work themselves out of cne way- of taxation. That waa one reason why the Bills would be kept buck, to obtain from the Crown Law Officers an cpinion as to how tbe evasion could be prevented. The Financial Statement was a plain, unvarnished statement of the position of the colony. It was the productive energies of the people of the colony and the development of their principal industries tbat had resulted in the surplus, and not tbe machinations of any Colonial Treasurer, as was claimed by some members of the Opposition. But for the actions of the supporters of the late Government, who at first refused Sir J. Yogel the taxation which they themselves afterwards had to impose, the surplus would have been still larger than it now was, Efe ridiculed the argument of Mr Macarthur that the renewal of the LI SO 000 of floating debt shortly falling due could be reasonably called fresh borrowing, and he defended the action of the Government in regard to local bodies' subsidies. He (M<- Ballance) devoted about half an hour to defending his former administration as Minister of Lands and in replying in detail to some of tbe criticisms of his present Budget The postage reductions had been made a kind of stalking-horse by hon. members, but the Government believed that a penny post was rapidly becoming nniversal in the Empire, and as they had a surplus now they thought it; as well to anticipate what was comiog. Ie was said that the benefit would fall to the met chants and bankers ; but what about the small storekeepers and similar classes? Surely the benefit would be given to tbe whole coinmu nity by this reduction. The working man was part of the social organisation, and anything that relieved any part of the social machinery would benefit him, Had anyone ever heard before of the present Opposition party seeking 1 the good of the working man, as they professed, by raising a cry to relieve him of L 40,000 upon the necessaries of life ? The Grey Government were the only Governmant who ever made any substantial reduction of the duties upon the necessaries of lite. In one year they reduced the Customs taxation by LIOO 000, chiefly upon tea and sugar ; and at that time Mr Rolleston had opposed the movement, stating that it was the greatest humbug to say that Customs duties pressed heavily on the working man, and tbat the employers of labor would derive tbe chief benefit. It would be the same to-day. If the L4O 000 had been taken off the Customs duties it would have found its way into the pockets of the employers. The concession on the inland postage rate was a small amount to lose in revenue, but tbe Government believed that it would soon be recouped by the increased number of letters posted. The House, he thought, would come to the conclusion that the step proposed would be a wise one. In regard to the totalisator tax, Mr Bryce had bubbled over with more righteous indignation than he had ever before shown ; yet when the Bill in favor of the use of the totalisator was before the House that hon. gentleman was not to be found in his place. The Hon. Mr Bryce said he would take another opportunity of referiing to this matter, when he believed that he would make the Premier ashamed of himself. The Premier twitted Mr Bryce with having lost his temper, and that gentleman and his followers with having used discourteous language in the course of this debate. To tax the totalisator would tend to discourage gambling and to kill racing ; but if the Opposition believed what they said on this matter let them bring in a Bill to abolish the machine. The question of Roman Catholic claims ought not to have been imported into this debate, for it had nothing whatever to do with the Government finance. As to Judge Edwards's appointment, if the Government had found him to be constitutionally appointed they would have been obliged to recognise him, but they believed that a wrong had been done to the Supreme Court Bench, and believing that he had not been legally appointed, they had accepted Mr Edwards's challenge, and referred the matter to the law courts for their decision. Ministers had a letter from the Chief Justice that he had always maintained that another judge #aa not required. If this were so, the Government would not be justified in voting his salary unlesß the highest tribunal in the colony decided that he had been legally appointed. By three to two the Appeal Court of this colony had affirmed the appointment ; but this decision was not final. Besides, the record showed that before tbe appointment was made the majority of the judges advised the Government of the day that they could not constitutionally appoint Mr Edwards. If the judges bad changed their minds the Government oould not help it, but they were now bringing the matter before the highest tribunal in the Empire, whose decision would be final. But until tbat decision was given the appointment must be looked upon as unconstitutional. He indignantly denied that the Government were degrading the Supreme Court Bsnch, but said that they were preventing it trom being swamped in an improper manner with creatures of a defeated Government. — (Cries of " Oh !" from the Opposition benches.) As to retrenchment, the number of officers retired was 115, and a net saving of L 41.358 was made, after allowing for non-recurrent votes. It was true there were some increases of salaries, but in all cases it was done where offices had been amalgamated and duties increased, in which case the raising of the salary was a part of true retrenchment. The exodu3 of our population began before the present Government took office, and their policy had not yet had time to affect it. It was wholly due to economic causes, the chief one being that there was no land to be taken ap in small quantities, the policy of the late Government having gone in the directipn of buildiDg up big estates. Dummyism had been rampant for the last three years, and on a large scale too. Indeed, if all that he had heard were true, the late Minister of Lands had been the " high priest of dunnmyism." How were the two and threequarter millions of bush lands, without surveys or roads, to have any effect on stopping tbe exodus ? The present Government were encouraging settlement by associations and by small farms, but two months had not been sufficient to enable anything to be done. Mr Valentine had asked : Where were the men to come from to take np tbe land obtaioed from the " bursting up " of big estates ? The answer was : From the young men now growing up on the small estates, and from the sons of f aimers who were now obliged to leave the country in order to find land. The distribution of the land amongst tbe people of the country was a true Liberal policy, and that was also the policy of the present Government. — (Cheers.) The dispersion of big estates, which had been spoken of, bad not been going on in the same proportion as the consolidation of other big properties. He denied that the policy of the Government would prevent the investment of capital in industries, and claimed that it was the Property Tax that had been the clog to industry heretofore. The Government fully recognised that the great indas-

tries of the oountry must not be oppressed by taxation. The Leader of the Opposition was a borrower, so long as there was due publicity. The Government were altogether against borrowing in the Eoglish market, as it would be suicidal, and would mean the risk of the same failures that Victoria and Queensland had experienced. If the buying up of estates for settlement would not benefit the large owners, that made no difference to the Government, so long as it mainly benefited the masses He believed a scheme of the kind could be properly safeguarded, and in regard to certain parts of tbe country it was also entirely necessary. If the big areas were cut up into small farms, new light and new energy would be brought to bear upon the country — (Cheers ) The Government wanted to make estates pay their fair share of tbe taxation, and that would lead to their disintegration. The Government's policy was simply based upon fiscal grounds, aiming at equality of sacrifice. The land question was placed in the fore part of their policy in the interests of the laboring classes, in order to bring about a remedy foi that unjust incidence of taxation which was their great grievance. Was not this question large enough for one session? Could not the other equally important question be left over ? The question of necessaries of life would be dealt with soon enough for the Opposition.—(Ministerial cheers.) But for the present the Government were content with one subject at a time. Some members had talked about the danger of driving away capital, but the Government policy tended rather to bring capital here for investment in industry It might restrict this flow of capital to the large estates, but the small estates would be fertilised by it. New Zealand should increase the number ot its estates, and thus it would increase its capacity for the investment of capital, and depression will soon cease to rest upon it. Supposing that capital were driven away, where could it go? To Victoria, where there was a deficit? To Queenland, n hich could not raise a loan in London ? To Western Australia, with its million of acres in the hands of a single syndicate? To England, where the rate of interest was only 2| per cent., or to the Argentine Republic? Where was there a country under the sun with a better field for investment than New Zealand ? There was ample room for investment, and the people had faith in their country. Hon. gentlemen had said that Ministers' fiecil policy would not raise the amount required, and that it waa unfair to tax improvements. He would go as far as any member of the House in the exemption of improvements if the House would, as could easily be done, agree to a graduation up to L 200,000, without improvements. The whole object of the Liberal party was to have a land tax pure and simple. They would go as far as possible in that direction. They had brought down a tax advancing to a certain point, and if the Opposition said they should advance a little further he would take them at their word in order to test their sincerity. He admitted that graduation was confiscation, and agreed that an improver should be given a preference over the non-improver ; but he could not make allowance for all the improvements that had been put upon land since it was bought. If they did tbere would be nothing left to tax at all. Land had its economic value, and that was what must be .taken into account. It was said that the taxation scheme would not realise the amount estimated, but the Government had had calcu latious made again and again and from all points of view by the Property Tax Department, and they were convinced that they would get the money required. The land tax of 1878 bad been estimated to produce LIOO.OOO, and though there was then very little data to go on its proceeds came within LI, OOO of that amount. He did not expect that this time the result would be anything like as close, but still it would come approximately near the calculations. They were not financing for two years, and in their next Financial Statement they would know how much of the income tax could be spared to the classes. As to taxation of trade and commerce, it should not be ' forgotten that these classes had paid under the Property Tax in the past, while the professions were now being brought in for taxa ' tion for the first time, He agreed that some concession should be made to the incomes of the smaller traders, and also to those who had made small investments on mortgage, he had always argued that absentees should be specially taxed. Hitherto they had paid under the Property Tax only L 6.600, and he thought they would be sufficiently touched under the graduated tax ; but if the House thought otherwise it could deal with them specially. It was incumbent on Parliament to redress the enormous differences existing between the rich and the poor, and in so doing they would ameliorate the condition of all classes of their fellow-men. — (Cheers.) The motion to go into Committee of Supply was agreed to, and progress was immediately reported. Colonel C. A. Humphrey, formerly Under-secretary for Defence, complains in his petition to the^House tbat he was dismissed from the service by the Defence Minister upon verbal notice. As his official designation was permanent head of the depart ment, he submits that his verbal dismissal without the consideration of the Executive was unjust and unconstitutional. He prays for an inquiry, and for restoration to some rank and emolument proportionate to those which he has betn deprived of. Ex-detective Browne's complaint is that in being dismissed from the police force he did not receive the usual three months' Lave of absence. He claims L 75 as salary and L 95 lost through the sale of his furniture when he was transferred from Wellington to Auckland shortly before his dismissal. Dealing with the proposed income tax the Hon. Thomas Fergus gave figures showing what the Union Steam Shipping Company meant to New Zealand. He said that their annual expenditure was — Wages, 12.00,000 ; alterations, L 50.00 0; provisions, L 90.000 ; local coal (Westport, Greymouth, Bay of Islands, etc ), L 65.000 ; harbor dues, L 16.000; light dues, L 6.000; other expenses, L 56,000. The Treasurer's proposal to impose a special tax on the shipping owned within the colony was described as suicidal, as tending to drive the shipping trade of the country into foreign hands. Sir G. Grey has received a letter from the Trades and Labor Council of New Soutp> Wales thanking him for the valuable services he gave during his recent visit, and asserting tLat to his efforts was mainly due the success of the Labor party in the elections. The letter further says that Sir G. Grey's words of advice as to the party maintaining an orderly demeanor during exciting evento had a very marked effect. The hope is expressed that he will pay a return visit. In expressing acknowledgments to Sir G. Grey for the great assistance he had given to the Labor party in New South Waleß, the secretary of the Trades and Labor Council writes from Sydney :— " The Government and Opposition party in the New Soutn* Wales Parliament are" about equally divided, as they were in the last Parliament, and our party is almost equal in number with the other two ; consequently we must wield an enormous power in the new Parliament. If that power is wisely used (and you may hays confidence that it will be so used), then, indeed, we have reached the dawn oi a new and glorious era, calculated to awaken the civi^ed itntverfie to a, sense of the many

wrongs mankind has labored undef< in the past, and inspire, an emulation which must inevitably result in the emancipation of the toiler, and enactment of laws baaed on justice, equality, and fraternity. I can hardly express the gratitude feit towards your noble self by the, workmen of this colony for the great amount of good which resulted from your tiauly visit. We intend to follow your advice and teachings a.s closely sls possible, consistent with the circumstances by which we find ourselves surrounded from time to time. We recognise that you have been a most important factor in our success ; indeed, someof our men give yon all the credit.' In conclusion, the writer expresses the hope that Sir George will be able to pay New South Wales another visit before his return to England. The eradication of the codlin moth aud blightsome fruit trees is considered by the Premier to be one of the most perplexing questions of tbe day ; but as scientific men fail to agree upon a remedy, he cannot see how it can yet be met by legislation. The Inspector of Machinery will be instructed to inquire as to certain safety appliances now used in Southern fUxmills, which have been brought under the notice of the Mioifcter of Lands by Mr Meredith, and if they are found fully effective in preventing accidents, atepa will be taken by the Government to make their use compulsory. The colony has paid Ll 1,504 during the past five yeara to steamers employed io connection with the repairs to the Cook Strait cable. Sir George Grey saya that investigations will prove tbat the Property Tax leads to more fraud and abuse than would an income tax. Mr Perceval has been the first speaker during the pieaent debate who has been sanguine enough to express the opinion that more revenue will be raised under the proposed form of taxation than from the Pro perty Tax. The Government have promised to conduct; the sales of Crown lands at centres of population situated nearest to the localities of the lands to be disposed of, where practicable. Mr Duncan, who comes from the neighborhood, and ought to know, says that the South Canterbury rabbit fence, which has coat the colony so much money, is not worth a brass farthing. The rabbits, he says, are slowly but steadily crossing it, and are to be found twelve or fifteen miles beyond it, and only a practical man can stop their progreaa. But for a fortuitoua concourse of circumstances through the labor troubles and the strikes, and the influence of Sir George Grey with the masses, the Hon. T. Fergus saya that a Liberal Government would never have occupied the Treasury benches. According to Mr Fergus, the Leader of the House would ha\e been rejected at the last election but for the enlarged electorates. He says that Mr Ballance was in a decided minority in his own town, but was returned by the votes of thuse employed in the Aramoho Workshops. The overdraft on Bellamy's now amounts to L 1.114, and there are other debts to the extent of L 59 5; but when allowances are made for the assets the net deficiency is left at LSIS. The takings for the first three weeks of this session show a decrease of L 25 13* 6d, as compared with last year. The bar trade iv particular has become less in proportion to the number of members ; but the House Committee of the House of Representatives, who have gone into the matter, think that with proper management there need be no fear apprehended as to Bellamy'B paying its way in future, while a small profit may possibly be made. The recommendations of the House Committee of the Legislative Council for the removal of the financial difficulty waa that Ll.ooo should be borrowed from the Treasury at 4 per cent, to extinguish the ovei draft. This, however, implies a responsibility which the Committee of the Lower Chamber decline to undertake, and they leave it to Parliament to decide what Bhall be done. The Committee desire to remove the impression which exists tbat old members are indebted to any considerable extent for old accounts. The amount of LlO or Lls is the total sum likely to be lost under this bf ad. If any bona fide offers are made for the right of advertising upon stamps and telegraph forms the Poatmaster General will formally entertain them. Dr Newman, from whom the suggestion to this effect came, thinks that the manufacturers of Schiedam schnapps and hop bittera would gladly avail themselves of such a facility.