LIFTING THE LID
AT JUNEAU
‘Continued from Page One’
cents.
Taylor said he has talked to nu
merous legislators and found con
siderable support for the proposal.
The tax would be fair stiffer than
one formerly in effect for financ
ing the veterans’ program.
' Another Taylor tax bill, the
general business license levy, is
on the House calendar today for
the fourth straight day.
The Senate received a telegram
yesterday from an Alaska Indus
trial Corporation executive de
claring the new income tax and
proposed general property tax
“threaten to nullify the entire pro
ject” it has planned at Sitka.
Governor Gruening also receiv
ed a delegram from the firm. He
prompetly wired the firm tha*
concession to new industry ar' in
cluded in the property tax bill as
amended in the Senate committee.
The company has a pulp mill
project tentatively scheduled for
Sitka.
The governor wired the firm’s
president, Paul J. Timbal of New
York City, that the Senate taxa
tion committee has recommended
several changes beneficial to busi
ness including an incentive clause
allowing the tax commissioner
discretionary power to grant ex
emption from half of the property
tax for the first ten years of oper- j
ation.
The Governor wired:
“Aside from generous exemp
tions proposed, may I point out *
that the income tax (ten per cent
of a firm’s federal income tax)
will not be applicable until and
unless your enterprise is profit- !
able and that the rate in the pro
posed property tax is extremely
moderate, being lower probably
than any state or area where you
or any enterprise might locate. I
am sure you realize that new in
dustry and population, though
highly desirable and which we
; earnestly seek, bring new costs' to
1 the Territorial government, in
cluding very substantial school
| expenses which can be met only
j by general taxation.
“The present form of the prop
erty tax measure is the result of
hearings attended by the president
j of the Ketchikan Pulp and Paper
; company, who expressed the will
1 ingness of his compan yto pay rea
sonable taxes, which he believes
these to be. He states his company
which already has timber under
permit, is proceeding with plans
and feels protection of the ten
year exemption for such an enter
prise will provide better assur
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PIONEER WHIST PARTY
Thursday, Feh. 10, 8:00 P.M.
General Admission $1.00
,
Season Ticket (for Six Games) $5.06
Lunch Served at All Parties
Everybody Welcome
ance than absence of any tax.
since such a tax could be imposed
by any future legislation without
exemptions or special considera
tion of any kind for new indus
try.”
The Legislature had one of its
quietest afternoons yesterday. The
Senate passed three minor bills
unanimously. The House was in
recess for committee meetings.
One of the bills, which now goes
to the House, would prevent drug
gists from issuing small quanti
ties of certain drugs without pre
scriptions.
The pharmacists’ association de
scribed the drugs as habit form
ing and said restrictions would
eliminate any conflict with feder
al laws.
The other two measures, previ
ously approved by the House, sim
plify the probate of small estates
and eliminate the per diem allow
ance for Territorial employees on
trips taking only a small part of a
day.
The Senate spent much of its
time earlier in the. day discussing
a bill authorizing construction of
a woman’s addition to the pioneer
men’s home at Sitka.
Soon after assembling for the
afternoon session, the upper cham
ber voted 11 to 5 to re-ref er the
bill back to committee for an
amendment to define what consti
tutes a pioneer woman.
The action came on a motion by
Sen. Steve McCutcheon, of the
Third Division, after public wel
fare director Russell Maynard
noted on the witness stand that
he did not know who would qual
ify for the home. The reason, he
said, was the lack of a definition
of a female pioneer. Maynard told
the Senators that the bill, as
drawn, would give the home only
to native women. He said that a
detailed survey eight years ago
showed there w’ere less than 10
women over 60 years of age who
desired such a home.
“I don’t know any at present
who I can say definitely would
want to enter,” he declared.
The measure carries a $100,000
appropriaiton for a women’s addi
tion.
Wednesday. February 9. 1949
JUNEAU, UP) —The Territorial
House passed a business license
tax bill late today, 20-4, with
three Democrats and one Repub
lican opposing it.
The measure, would carry a
basic license fee on all businesses
and professions, with one-half of
one per cent levied on gross in
come above $20,000 .
Even if the Senate should ap
prove it, it wouldn’t become effec
tive until Congress repeals the
present ‘‘hodge podge” business li
cense tax provisions affecting
Alaska, proponents said.
Voting against the bill were
Democratic Reps. Amelia A. Gun
derson, Marcus Jensen and James
Nolan, all of the First Division;
and Republican Rep. George Mis
covich.
The House concluded the after
noon by passing Rep. Gunderson’s
bill to increase the hair seal boun
ty from $3 to $6. An amendment
by Rep. Aimer Rvdeen of Nome
to include five native villages
north of Kotzebue in the area
area qualifying for bounties was
adopted.
Passage of the business, license
'ax bill came after critics de
nounced it as a form of sales tax
Proponents denied this and ar
"tied it was a necessary prop in
the basic Territorial tax structure.
Rep. Clarence D. Keating. An
chorage Democrat, declared in
closing debate that ‘‘it is vitally
impor'ant to the Territory. It will
do away with privileged busi
nesses.”
Rep. Nolan declared it was too
all-inclusive and would pyramid
taxes, with logs, for example, be
ing taxed when cut, taxed when
hauled, and taxed when milled.
Rep. Warren Taylor, Fairbanks
Democrat who authored the bill,
denied it would pyramid taxes.
Rep. Alfred Owen, Anchorage
Democrat who criticized the bill
earlier in the day as one which
would tax the businessman “even
if he’s losing the shirt off his
back,” declared “the bill tastes as
bad this afternoon as it did this
morning, but I don’t see how we j
can do anything else unless we
want to live with the old system.”
He voted for it.
Drugstores were cited specific
ally as paying only a $50 annual
license fee while smaller stores in
other lines paid many times more.
Rep. Percy E. Ipalook, Eskimo
missionary, got an amendment
into the bill exempting native
handicraft workers whose gross
receipts were under $500.
Eight bills were introduced in
the House in the afternoon, most
ly of a minor nature.
One, by Owen, provides that re
cipients of unemployment com
pensation get 20 per cent allow
ance extra for each dependent,
but not over 60 per cent extra,
i A memorial to Congress pro
posed by Rep. Abel Anderson of
Juneau asks a requirement that
the international fisheries* com
mission include one Alaskan. It
, also opposes a proposal for halibut
fishing on only the first 10 days
, of each month during the season.
This, it declared, would be a
great disadvantage for the small
Alaska boat operators, while large,
Seattle schooners could afford to
make runs home.
Major interest today was ex
pected to center on the general
property tax bill which is slated
for the Senate floor, where it will
be open to amendments.
A memorial to Congress asking
authorization for a $15,000,000
bond issue by thp Territory for
school purposes was introduced in
the House earlier in the afternoon.
Proposed by Jack Conright, An-'
chorage Democrat, it would pro
vide “for the exclusive purpose of
construction, improvement and re
pair of Alaska’s school’ facilities,
including purchase of schoolbooks
and equipment.”
The memorial, which will re
quire both House and Senate ap
proval, also proposes that Con
gress make matching funds avail
able in whatever proportion it
may deem equitable. The memo
rial cites the great influx of peo
ple due to federal government de
fens projects as a greater educa
tional burden than the Territory
can finance at present, even if all
tax bills pass.
It says schools are overcrowded
Ratiow Visualizes
Vast Development
In Alaska
SEATTLE, <£>» — A decade oi
projected development of Alaska,
stressing use of government serv
ices to promote private business,
is envisioned by Kenneth J Ka
dow, dierctor of the Terri'oriaJ
field staff for the department of
the interior at Juneau.
Kadow was in Seattle en mute
to Juneau.
‘Ten years will see development
of at least three pulp and pape^
plants, and great expansion in
electro-chemical industries,” he
declared.
He emphasized the gmat un
tapped resources of the Territory
is the tourist trade, and called for;
“A combination of private and
government initiative to develop
on 80 to 100 million dollar tourist
trade.”
He said the next three years
would see completion of the hard
surfacing of all Alaska’s main
highways and the shortening and
straightening of the Alaska Rail
road. Rail improvements, he said,
should bring a slash in freight
rates. This and departmental pro
motion of a cement plant should
reduce building costs.
He epitomized employment for
its population with cost of living
at a propore level.”
Tourists and the cheaper elec
trical power potential on the
North American continent, Kadow
said, ‘‘will go far toward achieving
this goal.”
John Abbot Moses, aged 27. died
Sunday morning after a lingering
illness. He is the son of Mr. and
Mrs. Frank Moses of this city, and
is survived by a si<ter Catherine
of Golovin, Emma of Nome and
Margaret who is in Sitka. Two
brothers are Alfred Moses of Sol
omon and Oswald Moses of Elim.
The funeral is in charge of Rev.
T. E. McGrew and the date will
be announced later.
Beersheba today is an Arab
town 45 miles south of Jerusalem.
and in a deplorable state of disre
pair and some new districts are
without any. The memorial follows
by three days Territorial educa
tion commissioner James Ryan’s
estimate that twelve million dol
lars is needed to meet immediate
school building needs alone.
Another memorial introduced
by Rep. Taylor, Fairbanks, asks
Congress and the justice depart
ment for a second federal judge at
Anchorage because of a greatly
increased court volume.
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