THE STATE AND MONOPOLIES.

Dominion, Volume 6, Issue 1671, 11 February 1913, Page 6

THE STATE AND MONOPOLIES.

At the beginning of December last, we discussed at some length certain eloments of tho Australian Labour Party's referendum proposals, which seemed to lis to trespass quite openly and flagrantly upon the righte and privileges _of tho demooracy and of tho individual, noting particularly the amazing suggestion that Parliament should be permitted, by an amendment of the Federal Constitution, to' examino and pronounce judgment upon any business which may lie under the suspicion of being a private monopoly, , and, at . its pleasure, determine the existence' of that business by converting it into a State monoply. If the peoplo of Australia adopt these proposals at the referendum in April next, they will "voluntarily place themselves and tho Commonwealth under tho absolute domination of a political machine, almost as well organised for boss rule as is the Tammany machine, which has corrupted and degraded tho administration of the law in tho United States." -The precise terms of the proposal are as follow:

"When each House of Parliament, in tho same session, has by resolution declared that tho industry or business of producing, manufacturing, or supplying any specified goods, or of supplying any specified services, is the subject of a monopoly, tho Parliament shall liavo power to make laws for carrying on the industry or business by, or under the control of, the Commonwealth, and acquiring for that purpose on just terms anv property used in connection with the industry or business."

We are therefore to conclude that tho determination of the involved and technical question aB to whether a enterprise is-' a monopoly or not is to be left to the will of a temporary majority in Parlia-' ment. In a Labour Parliament this question would be determined in tho secret conclaves of the caucus. But there lurks behind this proposal a gravor and moro insidious menace than the implied domination of the caucus machine, and that is tho temptation to which human frailty will be exposed in the not improbable event of any"' suggested collusion between monopoly interests and tho man or group of men whoso votes in Parliament may determine these interests. Wc do not say that the morale of tho Australian Labour Party is such as to weaken its powers of resistance to corrupt overtures of this nature.. What wo do say is that since there is nothing as oorruptiblo in its influence as "easy money," no -man. of whatever political party, should bn expound to such p.n innidjoun .temptation as the sals of his vote for

a certain "consideration," and this point was heavily stressed during tho debate in the Federal Legislature on tho monopolies proposal.

"Much as we execrate tho 'graft' which goes on in America," declared Senator St. Ledger, of Queensland, "tlii.i graft will bo a small circumstance compared with tho graft which must necessarily arise out of legislation framed under such nil amendment of the Constitution. I/ot me illustrate what I mean. Take, for instance, tho Colonial Sugar Refining Co., which is a monopoly, and which, if tho Government could have their way, and had the in on ns, would bo nationalised. Snpposo that the company put down its goodwill nt or and that the Government will agree to givo only .£5,000,000, thbre will l>e at least ,£1,000,000 for the company to gamble with. There at once rises a frightful temptation. If the Government have a majority of only one, and it is a question of whether .6500,000 or X 1,000,000 shall be given for a particular monopoly, and I know it, and the monopolists know it, my voto will lie worth .£500,000 .or JE1,000,000. I do not imputo corruption to members of this Parliament, but I do imputo corruptibility to human nature. Tho franchises which have been bought by corruption in America are nothingin comparison to the amount which may, bo involved Bhould tho Government propose to nationalise a ( great monopoly. I suppose that the capital of tho Tobacco Combino cannot lie less than £5,000,000, and the value of the shipping monopoly must be-M,000,000 or JC10,000,000. Suppose we are asked to determine what are the just terms on which these monopolies should bo nationalised? Do my honourable friends think that they are likely to remain very quiet when there is a difference of botwoon half a million and a million as to the price?"

This is.no exaggeration of language, no straining of argument. The menace of corruption is there. Mr'. Andrew. Fisher, Primo Minister of the Australian Commonwealth, has declared that tho Federal Constitution is tho "worst in the world." If that bo so, ho seeks to euro it by degrading it further, and by deliberately exposing his country to the menaoe of political graft. ■