Property Tax Bill
Reaches Senate
After Much Dehate
^ (Continued from Page One>
done its duty.”
The rush to put it through the
House in the final hours Wednes
day brought from Democrat Marc
Jensen the charge: ‘‘That’s what I
call steamrollering.”
The bill brought the first floor
debate during a week in which a
series of tax measures have passed
the House. The only vo es against
the new bill were by Republican
Percy Ipalook, Eskimo from the
Nome District, and Democrats
Marcus Jensen and Andrew Hope
of the First Division.
Ipalook appealed for more time
and consideration because of ‘‘the
magnitude of this bill,” which he
said would be an historic prece
dent in Territory taxation. He
pleaded with the House that it
w’ould mean hardship for com
munities where business setbacks
had been felt.
Jensen said flatly in reply to a
question he was opposed to the
property tax and thought the
other measures would raise
enough money.
‘ The economy of the country as
I, a whole can’t stand that kind of a
tax,” he said. ‘‘The intent has been
to get it on the books at any cost
instead of getting revenue.” He
contended it would be too costly
to collect.
Democratic leaders Stanley Mc
Cutcheon of Anchorage and War
ren Taylor of Fairbanks led the
arguments for immediate passage.
. McCutcheon declared ‘‘if we
pass all the revenue measures pro
posed so far, plus one not pro
posed yet—a tax on cigarettes—
I we still will be a million short of
the $17,000,000 the budget needs.”
They argued the bill had to pass
Wednesday night to get to the Sen
ate yesterday — last day either
House can receive bills from the
other.
Taylor cited the Territorial
Democratic platform stand for a
property tax. Jensen said he did
The Girl Seoul groups had a
busy day on Saturday selling
cookies at the N. C. Store and at
Marks Field. It is reported the
group cleared about $50.00, duo 10
the excellent support given them
by the community.
(______ i
n’t think any party commitment
should be a vote factor.
McCutcheon suggested in his fi
nal appeal: “If Jensen’s figures
are right on what other taxes
could raise, wouldn’t it be a good
thing to have a reserve, We could
always cut back. It’s time now to
set up a program.’’ x
Frank Angerman, Fairbanks
with an eye toward projected pulp
mills in Southeastern Alaska. It
would give such projects exemp
tion ‘during a year of construction
or longer if required, but not to
exceed three taxable years’.
“It also provides all taxes col
lected in municipalities or school
or other special .districts be re
mitted to them.’'
While the House labored
through more than three hours on
the property tax, the Senate had a
prolonged hearing on whether in
surance companies which now pay
a two per cent tax on premiums
should be exempt from the income
tax bill.
When such an amendment fi
nally reached a vote, after several
hours, it failed, eight to eight.
Voting crossed party lines.
Indications grew stronger that
not even the income tax would
pass the special session.
Democrat, argued: “This is large
ly for getting those who have been
tax-free outside cities. I for one
was sent here for that purpose.”
Hope tried to amend the bill for
a $10,000 exemption on personal
property for the benefit of fishing
boat owners. He said changes in
the bill conformed with wishes of
other interests, but “haven’t in
any way helped fishermen.”
McCutcheon replied: “I appre
ciate Hope’s loyalty to his constit
uents, but I remind you this is a
revenue measure. With a $10,000
exemption we destroy several
amendments made before passage.
One provides a special temporary
exemption for new construction
THE
NOME NUGGET
Announces
SPECIAL
DAILY COVERAGE
, Throughout the
Legislative Session in Juneau
By James Hutcheson
Special Correspondent for
THE ASSOCIATED PRESS
KEEP POSTED ON WHAT THE SECOND
DIVISION DELEGATION IS DOING FOR
YOU IN JUNEAU.
Internation’l News
At A Glance —
(Continued from Page One)
any interference with her free
dom."
The United States and three
other nations readied a proposal1
for the United Nations for ending
the strife in the Dutch islands.
—
(Friday. January 21, 1949)
Chiang Kai-Shek turned over
the Chinese government, tempor
arily at least, to vice president Li
Tsung-Jen today and flew south
from Nanking, probably to retire
ment.
Lt is reported a “peace maker”
choice for dealing with the Chi
nese communists, who have chased
nationalist forces out of Manchu
ria and virtually all North China.
Li, like Chiang, is high on the
communists’ war criminals list. !
Chiang is to issue a statement
later which possibly will say he is ;
retiring. One reliable informant
said the statement would avoid the
word resignation but refer to his
leaving Nanking as a “withdrawal
from duties” and responsibiliites—
he has held for 22 years.
Chiang’s plane headed toward
Hangchow and thence to his na
tive town of Fenghua in Chekiang
province, where Chiang can com
mune with his ancestors. Mrs. Chi- j
ang is in the United States, where
her last desperate bid for Ameri
can billions and military brains to
stem the communists was rebuffed
in Washington.
Arrangements for the surrender
of Peiping and the remainder of
North China to the communists
|
were virtually completed.
Nanking, which the communist
armies probably can capture any
time they find it worthwhile, was
alive with rumors.
This was certain: his departure
permitted the peace group in the j
Nanking government to seek a ne
gotiated settlement of the civil
war. Many officials and generals
have hesitated because they fear
ed Chiang’s anger. Most Chinese
and foreign officials regarded his
departure as a de facto retirement.
Dean Acheson assumed the sec
retary of state job and the task of
putting into action President Tru
man’s pronounced anti-communist
polcy. One of the jobs is to stimu
late the flow of private American
capital into foreign investments.
Immediate tasks are the North
Atlantic military treaty, the revel- !
opment of the overall foreign aid
program and the planning for
Truman’s pledge that the U. S.
will try to raise the living stand
ards of the world by increasing
production in backward areas.
some ooservers at the United
Nations sadi the President may
have told the world in effect there
will be no Marshall Plan or Tru
man doctrine for Asia, Latin
America, the Middle East and
other parts of the world. Their
view was that he intends to fun
nel future aid through the U. N.
and its agencies.
The U. N. security council
scheduled debate again late today
on Indonesia. Twenty nations at
New Delhi considered the Dutch
action against the natives in hos
tile moods.
Armistice negotiations between
Israel and Egypt struck a barrier
over borders of the Negev desert
of southern Palestine.
The French prepared to revalue
their bonds and closed their stock
market to prevent speculation.
German demolition squads be
gan tearing down the last ruins of
the vast Hitlerian Reichs Chan
cellory in blockaded Berlin.
LIFTING THE LID
AT JUNEAU
(Continued from Page One'
tion.
A bill to increase the motor
fuels tax from two to four cents
agallon lost by a vote of 9 to 7.
The other — a measure which
would impose the highest taxes
ever levied against fishtraps—was
reported out of the taxation com
mittee with two members recom
mending passage, one opposing
and one without recommendation.
The bill would quadruple the
present trap taxes and levy a
heavy additional tax per fish for
large catches.
Sen. Victor Rivers of the taxa
tion committee said the bill prob
ably would be referred to the fish
eries committee, which has three
Democrats and one Republican
member.
He predicted it might have a
chance of passing the special ses
sion, but he favors pushing the
general property tax bill ahead as
part oi the basic revenue program.
The taxation committee has just
begun consideration of the pro
perty bill.
The House fisheries committee
recommended passage of a sharp
ly revised raw fish bill.
Chairman Andrew Hope, Sitka
Democrat, said it reduced the con
troversial halibut tax to one per
cent. Original bill by Reps. Jen
sen and Franklin, Democrats, pro
posed a tax of four per cent.
Hope reported fishermen wit
nesses said the threat of increased
diversion of halibdt cargoes to
Prince Rupert would be greatly
reduced by the lower tax.
The bill retains the four per
cent tax on raw salmon landed in
Alaska for cold storage, four per
cent on razor clams and one per
cent an butter clams.
Senators voting for the motor
fuels tax bill were Anderson,
Barr, Dawes, Engebreth, Huntley,
McCutcheon and Rivers. Barr,
who introduced the bill yesterday
morning, argued that roads were
second only to schools in import
ance to the Territory and more
funds were needed. He said the
average motor fuels tax in the
S ats was 4.6 cents a gallon.
Opponents followed two lines:
Collins and Jones said they were
voting against it because they still
questioned the legality of the ses
sion; Garnick and Butrovich
warned it would be too heavy
load on fishermen.
Butrovich told the Senators it
’ ‘Vrould not only break the fisher
men, it would call down their
wrath on you.” He argued there
was a surplus in the road fund
j now and fellow townsman Barr
'retorted “Yes, but there shouldn’t
be.”
Lyng opposed Barr’s bill on
grounds it was outside the basic
i revenue program which should be
adopted first. Earlier he objected
1 to Rivers’ attempt to push the in
come tax bill ahead before it was
in fully engrossed form, but he
promised the rules chairman to
make it the first order of busi
ness today.
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