mrn> ■■ ■ ■ — .
Judge Folta Rules
Fisli Trap Tax
Partly Invalid
• (Continued from Page One>
■and gill nets wholly untaxed, the
Legislature must have been influ
enced by the referendum vote re
ferred to rather than only by a de
sire to fairly distribute the tax
burden.
The reference was to the Terri
torial referendum which express
ed strong sentiment to the con
tinuance of fish traps.
The opinion stated the fish trap
tax measure was not enacted to
obtain needed revenue, but in obe
dience to what was apparently in
terpreted as a mandate from the
voters to abolish the traps.
Jdge Folta’s decision cited the
many contentions of the complain
of the complaining companies
against the tax law, and said: “If
all this is true, the act would ap
pear to be a modern guise of an
cient tyranny.”
One of the companies’ argu
ments was that the members of
the 1949 Legislature were mostly
in favor of abolishing fish tYaps
and were proponents of the earli
er referendum against the traps.
Near the end of the Legislative
session, Sen. John Butrovich,
chairman of the Senate finance
committee, estimated the fish trap
tax would produce $3,500,000 or
$4,000,000 for the two-pear period.
It is considered a certainty that
'Judge Folta’s ruling will be ap
pealed to the U. S. Circuit Court
of Appeals.
KETCHIKAN, (>P) — Federal
Judge George W. Folta explained
here yesterday that his decision
against Alaska’s quadrupled fish
trap tax law is based entirely on |
the case of Freeman versus Smith.
It is a 20-year-old cast in which
a non-resident fisherman named
Freeman contested the $250 li
cense fee levied by the Alaska
legislature. He contended success
fully that the license fee threat
ened his rich share in the Alaska
fishery that was guaranteed under
I the White Act.
The circuit court of appeals
ruled in that case that the high
license actually interfered with
his euality of sharing in the
Alaska fishery.
Folta said his ruling is that the
new fish trap tax likewise abol
ished the right of trap owners to
share equally in the Alaskan fish
ery, as the White Act guarantees.
Judge Folta told a Ketchikan
Chronicle reporter that his deci
sion (the text of which was not i
available here> skipped over the i
other three points on which the
law was attacked, holding that the
progressive tax on traps them
selves, while four times the pre
vious level, is not shows to be un
fair.
The Chronicle said the judge's
explanation showed that he threw
out only the portion of the mea
sure which pyramids taxes on fish ;
taken in traps.
The newspaper said the judge
told its reporter that if the Terri
tory had the right to control its
fishery, as do States, the measure
might well have been sustained.
EASTERN STARS MET
MONDAY EVENING
The Order of Eastern Stars met
Monday evening for regular ses
sion. As a special program Mrs.
Luther Dunbar, worthy matron
told in detail about the triennial
convention held in Toronto, Can
adad. in August, which she attend
ed as a delegate. She also had
many souvenirs of the occasion V'
show the members. Following the
program the visitors of the order
entertained with lunch. Those on
the committee were Mary Goff,
Maude Taft, Christine Angel, Mil
dred Harwood and Charlet Wood.
even though it eliminated part or
all of the traps.
The Smith in the Freeman-Smith
case was Territorial treasurer and
tax collector at the time.
The Chrosiele said the court rul
ing is expected to cost the Terri
tory an estimated $1,300,000 in
revenue this year although the
previous graduated tax on fish
taken in traps will govern and
provide considerable revenue from
the large run of pink salmon in
Southeastern Alaska. They are
largely trap-caught.
SCORCHY SMITH ACE OF THE AIR STRIPS
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WELL, MR. SCORCMV /M
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I'LL SWITCH ON
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OH, DIANA! THE MISS THAT’S A HIT
THAT'S THE PRICE -
OF THAT STEAsR DOLLAR A
YOU HAVE:THERE PCUSiD, S R, J
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EIGHTY TOUGW TO PAY A DOLLAR A
POUMD PCR STEAK THESE DAYS/j
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BOUND "TVi£V\ ON THE
FLOOR, DAD.
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