Cabinet:
Prime Minister: Robert (Bob) Semple
Attorney General: Rex Mason
Minister of Defence: Robert (Bob) Semple
Minister of Education: Terry McCombs
Minister of Finance: Walter Nash
Minister of Foreign Affairs: Frank Langstone
Minister of Health: Gervan McMillan
Minister of Industry: Paddy Webb
Minister of Justice: Rex Mason
Minister of Labour: F.P. Walsh
Minister of Maori Affairs: Rex Mason
Minister of Police: Peter Fraser
Minister of Railways: Robert (Bob) Semple
Minister of Social Welfare: Arnold Nordmeyer
The post-election Semple cabinet was notable firstly for the return of Nash. Payne was now old, and unwilling to carry the burden of hefty responsibilities, so the Finance position had fallen vacant. Since Lee was still sitting in enforced exile, there was no better opportunity for Semple to bring back his old colleague.
Walter Nash
With Semple's tacit approval, Nash gave a speech just before Christmas, where he indicated that the Government would pause its nationalisation programme for the medium term.
"I think it is time we in the Labour Party had a nice cup of tea and a breather," Nash told his colleagues. "Too much change too fast is bad for your health." According to several sources, including Mason, Lee had then stood up, and walked out of the room without saying a word.
Savage meanwhile was now clearly too ill to perform ministerial duties, so Semple decided to bring in fresh blood. Gervan McMillan was not only of the Left of the party, but also had a background as a medical practitioner. If he couldn't stop the Health sector turning into long-running ballsup, no-one could. Arnold Nordmeyer, a similarly radical new face, had been a Presbyterian minister before entering politics, and was now tasked with building on Payne's work at Social Welfare. To balance out the cabinet ideologically, Semple promoted moderate Peter Fraser to Minister of Police, noting that Fraser, like himself, had once served jail time for opposing wartime conscription.
"Never trust a man who hasn't been on the wrong side of the law once or twice," Semple told reporters on announcing his cabinet. In hindsight, it was a sentence the Prime Minister would come to regret.
The Government's apparent move to the centre not only angered Lee's admirers on the radical Left, but also did little to curb the blood-curdling rhetoric coming out of the New Zealand Legion. Now closing in on one hundred thousand members if Campbell was to be believed, some members took to organising themselves as a combat force. Recalling the dreaded Massey Cossacks of 1913, "volunteer constables" who had been used by the State to crush striking workers, this new generation of reactionaries on horseback spent weekends training for what they considered the inevitable confrontation with the Reds.
The Legion on horseback
Eric Campbell, who retained close communication with fellow legionnaire Sidney Holland and other Parliamentary liaison points, had learned from his mistakes in New South Wales. Too much public aggression and chest-beating, and his erstwhile supporters among New Zealand's rich and powerful would turn on him. No, as Holland stressed, they had to slowly build up strength. Infiltrate the police and military, be watchful, and success would come. Even Campbell, however, could not restrain the enthusiasm of some farmers' sons, who were itching to give those socialists in the towns a good licking. In late January, 1939, a tragic murder case in the South Canterbury town of Waimate brought the organisation some unwanted headlines. 20 year-old Jeremiah M'Carthy, who had been participating in a legion training exercise, allegedly rode down a 16 year-old roof-painter named Norman Eric Kirk, while Kirk was walking home that evening.
Newspaper article on the murder
M'Carthy argued that it was a tragic accident, and that his horse had been startled by Kirk shouting abuse at him. The young man's pleas were unsuccessful, however, and the jury returned a guilty verdict. He was sentenced to life in prison.
The M'Carthy-Kirk case prompted a heated Cabinet debate as to what to do about the Legion.
"Can't we just ban them?" Bob Semple is supposed to have asked. "Let the papers complain for a week, and those bloody farmers will go back to killing rabbits, rather than 16 year olds."
Rex Mason twitched. "I'm not sure it's as simple as that, Bob. I mean, yes, we have the power to do that. Or more accurately, Parliament does, and it's delegated us the authority under the Public Safety Conservation Act 1932. But there's a hundred thousand of those buggers now, and the likes of Sid Holland and Downie Stewart will be screaming that we'll try to ban the Nats and the UDP too. We'll never live that down."
Peter Fraser spoke up, his Scottish accent still clear after all these years. "We're a free country. We're not Soviet Russia. Let them do as they please, but if any of them are caught breaking the law, we'll throw the book at them."
Fintan Patrick Walsh, the dour and dark Minister of Labour, had a good laugh at that. His eyes gleamed.
"Ah, such a convert to the path of legality now, eh, Peter? You weren't like that in the old days, were you now?"
Walsh had built a formidable reputation as a ruthless and sometimes brutal enforcer within the trade union movement. He knew where the bodies were buried, as the saying went, if only because he had buried most of them himself. In switching from trade union politics to parliamentary politics, his power base among the rank and file had ensured him a near-automatic Cabinet post. No-one loved him though, and more than a few of his colleagues, including Bob Semple himself, were glad that the man's ambitions did not seem to extend much beyond presiding over the Ministry of Labour.
F.P. Walsh
"Then what do you suggest we do?" said Fraser.
Walsh smiled again. "You're partly right, Peter. We're not Soviet Russia, and we can all thank our lucky stars for that. But here's the thing: the Legion is partly right too. No-one knows the backways of unionism in this country as well as I do, and I can tell you that there are plenty of Communists running around out there in the streets of Auckland, Greymouth, Lyttelton. Plenty in the pay of Moscow, following the path laid down by the Great Stalin, and many of them believe it with the fervour of religion. Some of them make poor crazy Jack look like harmless old Walter here. So I say, we do a deal with Campbell and friends. We, or I, or friends of mine, give certain people certain addresses, the Legion moves in, takes out certain enemies, and no-one will ever think we're pawns of Molotov ever again."
"Please don't ever suggest that in my hearing ever again," snapped the Prime Minister.