Its real simple - as someone else also said - no pay no practice.
Doesnt get much more simple...who dictates the rules there?
also if he acts like hes the only one that knows anything, perhaps he would do well in starting his own dojo...perhaps he will get a student similar to himself that doesnt feel like he needs to pay.
In a way it sounds like he thinks your teacher is depended upon him as he is one of the better ones at Uke, etc.
Not good to let it go this way without being clear. Good or not, he cant run the show...or if he does, he should start his own gig.
Watch out, he just might, and use this opportunity to take some people with him.