Seet Extension Of •
Highway Act To
Cover Alaska
WASHINGTON, W)—The inte
rior department recommended to
Congress today that the federal
highway act be extended to Alas
ka.
"Since 1916 the federal govern
ment has provided funds through
the federal highway act and re
lated statutes for highway devel
opment in the 48 states, Hawai .
Puerto Rico and the District of
Columbia.” the department said.
"Federal funds for Alaska’s
roads have been provided primar
ily through interior department
appropriations. Federal funds for
Alaska roads have been consist
ently less and more uncertain as
to year and year availability than
those it would receive as a par
ticipant in the federal highway
act.”
The department said that pres
ent funds for roads in the Terri
tory are inadequate. It submitted
legislation under which Alaska’s
appropriation of federal highway
aid funds would be not less than
$7,500,000 a year with Alaska
contributing 10 per cent or $1,000,
000 annually, which is larger.
The department said that since
the government has almost com
plete ownership of the land in
Alaska, road improvements there
would benefit not only the people
of Alaska but the entire nation.
The bill would place Alaska
road construction under the feder
al roads rdministration to which
the Alaska roads commission
would be transferred. The com
mission now is under interior de
partment jurisdiction.
« -
Mulberry leaves are the exclu
sive food of silkworms.
Soviets Hold Amer
icans Prisoners
WORCESTER, Mass. l/P)-Two
American-born wives of former
Lithuanian diplomats, relatives
here charged today, were being
held “prisoners’ by the Soviet
Union in Siberia.
They were identified as:
Mrs. Valdermaras Carneckis,
55, the former Eleanora Schultz of
Worcester, whose husband was
premier of Lithuania when that
country was overrun by Russia.
Mrs. Stanley Kairukstis, the
former Anna Migauskas of Wor
cester, whose husband was Lithu
anian minister of education.
Status of the two women could
not be immediately clarified in of
ficial quarters, but relatives here
claimed both had retained the'r
American citizenship after mani
age.
_
Administration
Half Of Cost
* .
JUNEAU, (/P> — More than 50
per cent of the monies expended
during the last fiscal year by the
| regional office of the veterans ad
ministration went to administra
tive expense, the annual report
submitted to the Governor’s of
fice by manager Ernest Lincoln
revealed today.
Expenditures totaled $1,035,637,
of which $594,207 was charged to
administrative expense, $134,245
to veterans’ subsistence payments,
and $302,384 to veterans’ disabil
ity compensation payments.
Fot’ty-seven home loans and 20
business loans were made under
provisions of the G. I. bill.
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—
Alaska Broke;
Tries To Find j
More Revenue
| /
• Continued from Page One)
territory'* money."
“Perhaps the best solution,” En
gebreth related, “is to get by with
a minimum of the most essential
of territorial functions until the
next regular session.”
Senator Rivers warned against
a special session with, “Should a
special session be called, the peo
ple can expect that the absentee
interests through their high paid
lobbys will make every effort to
raise the sales tax and escape all
general taxation. A sales tax is a
highly inequitable tax, particular
ly in Alaska where people in the
more remote high cost areas will,
often pay double what other users
t nearer to the source of supply
must pay. However, business and
industry, particularly abse n t e e
owned industry, favor a sales tax
because they will not have to pay
their proportionate share, but can
pass it on to the consumer easier
than under any other tax. Under a
, sales tax,’ Rivers said, “a very
wealthy man, living economical
yl, might well pay less tax than a
laboring man of small income and
who probably has a large family
I to support.”
"So, if a special session is call
ed." Rivers pointed out, "the peo
ple of Alaska should expect and
oppose the imposition of addition
al sales taxes, under which large
absentee interests take millions
each year out of the territory and
pay little revenue. The burden
would fall on the people who
make their home in Alaska."
Backing Senators Rivers and
Engebreth, Representative Steve
McCutcheon lashed out at “state
side corporate groups’-’ whom he
said were engaged in a “bald faced
attempt to delay or defeat state
hood, no matter what the end
might be.”
“Senator Rivers’ basic tax pro
gram and Senator Engebreth’s
comprehensive fish revenue pro
gram. had these measures passed,
would have placed the territory in
the financial driver’s seat,” Mc
Cutcheon said.
“Sensing from the beginning
that major tax proposals could
not pass the senate because of
d ominating ‘interests-controlled
senators,’ I introduced a number
of small tax measures to obtain
money for territorial operations.
Oddly enough only three minor
introductions with my name at
tached as author passed the sen
ate—three out of 28.”
“During the last hours of the
session, 'he house called the sen
afe finance committee Chairman
Green and finance member Ed
Coffey for a report on money
available for the coming biennium
in view of the appropriations bill
before the house. Both Senators
Green and Coffey stated. ‘There
is plenty of money available’,”
McCutcheon related to the Times.'
"Had the senate listened to Riv
ers and Engebreth, the territory
wouldn't be wailing pauperism to
day. ’A special session will not
cure Aiaskas ills nor rectify the
situation. Not unless the Creator
intervenes with a few well chosen
‘retirements’ to the great beyond.
For, during any special session
which the goverftor might call, the
puppets of the salmon, mining and
transportation monopolies would
dance the same tune, to the same
tugs on the strings, as they have
in the past—the ‘dance macabre’
for progress, statehood and self
sufficiency’.”
The economic complies t i o n
came as no surprise to Senator En
gebreth, who said the present sit
uation was inevitable. “This was
apparent to me/' the senator said,
“as it must have been to all sena
tors when the tax bill was defeat
ed in the senate 9-7. Judging by
the large vote for passage of the
general appropriations bill, only
a few senators must have felt that
the territory could operate effec
tively within the present tax
structure."
“How to raise the money was
the question,” Engebreth went on.
Four solutions were discussed: <1>,
substantially increasing the case
tax on salmon; <2>, net income
tax; <3>, territorial property tax,
and <4>, additional sales tax. As
long as it was obvious that more ,
revenue was needed, it was my
opinion that the net income tax
was the least objectionable and I
supported it. The sales tax was
the most objectionable,” Enge
breth said.
Of other local representatives to
the territorial legislature, only
Senator Coffey, who has been ill
Girl Scout News
Wilma Stephenson. Troop Scribe
During the week, we were
working on our home making
badge. We divided into groups of
four and cooked a dinner. Those
who passed were Donna, June,
Wilma, Dorthea, Maureen, Ruth
Kitty, Tesa, Bunny and Mary
Louise.
We are now working on health
and safety. We are planning to
crochet toys and make maps.
We are planning to have a
swimming party and if it is not
sunny will have a hike instead.
Donna and Wilma made fudge
at our meeting and this time it
did not break the candy thermom
eter.
Cotton was known to the Baby
lonians as sindhu and to the
Greeks as sindon.
and confined to his home, was
available. The senator had no
comment to make on the situation.
Neill, Clark & Company
PUBLIC ACCOUNTANTS, AUDITORS
TAX COUNSELORS
Office in Wallace Hotel - Phone Main 11
Juneau NOME Fairbanks
■
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