The Daily Alaska empire Newspaper, March 8, 1933, Page 5

| Textof Gov. Parks’ Message Mr. President, Mr. Speaker, Members of the Legislature: Realizing that the efficient administration of our Territorial Government depends at all times on close cooperation between the executive and legislative branches, the first Legislature invited the Governor to appear before them and present a report on conditions in the Territory. This procedure has been continued by each succeeding Legislature, and you have elected to adopt the custom established by your predecessors. Therefore, I esteem it a privilege to address your Honorable Body on this opening of the Eleventh Biennial Session. The unusually -adverse conditions that have existed for nearly three years have developed a serious situation, which will require the most careful and unselfish consideration of every governmental agency if we are to carry on successfully 'the essential functions of: govern- ment ‘and render efficient. service to the people of Alaska. It is one of the -duties of the Chief Executive to submit such suggestions and recommand such policies as he may pelieve to be for the best interests of the Territory, but under our system of govern- ment the ‘final responsibility, for the laws Which shall govern. our people and for the burden of taxation which they must bear, rests solely on the members of the Legislature, We have passed through two years of the most adverse conditions that have existed in the past several decades and we have emerged without having incurred obligations to oppress those who must assuma the responsibilities of government when we are relieved of them. Of this record we should be justly proud. Now we are entering what may prove to be one of the most critical periods in our history and the future prosperity of the Territory will depend, to a large extent, on the outcome of your deliberations and the wisdom of the policies which we elect to follow. We may choose, and I am confident that we will, to be guided by experience and sound principles of busi- ness and curtail our expenditures or we may pursue the easier course and in so doing place added burdens upon the people and industries of the Territory. We can not lose sight of the fact that in the last analysis the individual must assume the costs of government. ‘ We are all too well aware of the depressed economic situation and | the critical conditions which exist, not alone in our own country but throughout the world. Organized relief, sustained by local con- tributions, which usually meets the needs of every community, has in most instances proven wholly inadequate, and states, counties and cities have been forced to borrow funds to meet the demands of those | who are unfortunate and without food, clothing or shelter. It should) be & source of great pride to every Alaskan that so far every com- munity in our Territory has cared for its local problems and we have not been required to apply for relief funds from any source. Tms[ t effort and much sacrifice and | -hearted support has not been achieved without grea could not have been accomplished without the whole Full measure of credit is due to those who are We can not expect a quick recovery of every resident. giving their time to this work. in economic conditions and must anticipate continuing and - further demands, but I feel confident that they will be met as they hnvuul‘n h the the past with sympathetic consideration and satisfied throug local relief organizations. It is not a pleasant duty to appear pefore you and present a situation which demands drastic reductions in all appropriations, bub unless we recognize and squarely face the true conditions we can not expect to cope with the serious problems which must be solved. In submitting recommendations for appropriations, that are in every case far -below the estimates that were prepared by the various Departments, we have endeavored to provide sufficient funds to carry . on the essential functions, administrative, eleemosynary and educa- tional, of the Territorial Government for the next two years. It has‘ been necessary to eliminate many items that have appeared for | several years, not because we do not favor the projects, many of them are meritorious, but for the sole reason that the probable revenuss | which we may reasonably anticipate will not be sufficient to provide | the funds that would be necessary to carry them. { Two years ago there was reason had been reached and some degrze Of Trecovery seemed imminent, | but the anticipated improvement in economic conditions did not | materialize and we are now confronted with a situation which is even more grave and which will require greater sacrifices on the part of every one. Fortunately our natural resources are unimpaired, | our opportunities for development are greater than ever before, and’ each one of us has an abiding faith in the future of Alaska. We are certain that prosperity will return, and if we are skillful in the i administration of our affairs, we will be in an enviable position and | able to take full advantage of our opportunities in the future. We may well be. proud of the fact that we are not in debt and that every dollar of revenue may be expended for public purposes instead of interest on bonded indebtedness. We can balance our budget without impairing the efficiency of our necessary institutions. In doing this, | | | | we must exert every effort to provide assistance for dependent children, needy aged citizens, and others who are destitute, to enable them, insofar as our resources will permit, to live in a dignified, selr-j respecting manner. Any other course would be inhuman and contrary | to our traditions. The future welfare of the “Territory demands that | we shall maintain unimpaired the efficiency of our schools. To achieve these aims we must abandon many important but less necessary mm-‘ ties during the next two years. R Uy U GENERAL CONDITIONS Economic conditions throughout the Territory are not as satis- factory as they were two years ago. The consumption in the Territory of the products of our local industries is almost negligible and we/ must rely on other markets for an outlet for our fish, lumber, and minerals. During the past two years there has been a steady decline in market values on nearly all commodities and at present the aver- age value ‘is about. two-thirds of what it was in 1929. In some classes of products the present values are lower than they were in'1913. This condition has had a two-fold effect on our fisheries. It has reduced the market value of salmon and halibut to below the average cost of production and reduced the price of competing food products to 8 point where they may be purchased at prices below that at w)uch‘ it is possible to place our products on the market. i There are a greater number of unemployed and the annual earn- ings of a very large number of others are materially less because of curtailed industrial operations and reduced wages. In the larger communities it has been necessary to care for an unusual number of people through organized relief committees. It is my belief, however, that we are less distresesd and in far better condition than most of the States or other Territories. 1 am apprehensive that this situation we may be confronted with an unexpected influx of men seéking employment during the coming year. According to the report of the Collector of Customs the total commerce of Alaska in 1932 was $60,804,150.00, and this is the lowest point in nearly two decades. The balance of trade in favor of the, Territory descended to a new low level of $19,873,674.00. Of all our, industries gold mining appears to be on the upward trend. There | has been an increased production annually for the past four years and this is most encouraging. The copper mining industry experienced a sharp decline and the total value of the output in 1932 was 75 per cent less than in 1931. There does not appear to be any pr that there will be an increase in the price of copper. or lead in I.heI near future and we may expect a further decline in the production. The fishing industry is our most important asset. From derive more than 75 per cent of our taxes and the total value of its products exceeds that of all other industries. Statistics compiled from the records of the past five years indicate that the annual production is fairly well stabilized and we may anticipate with reasonable accuracy, the quantity and kind of fish products that will be: available .from the industry each year. We can not forsee the fluctuations in market prices, and this always will be an - important ' factor in determining the output on which we now depend for ‘our revenues. Scientific management has rehabilitated the fisheries, which were almost de- stroyed, and unless we again permit. unregulated fishing we of a normal supply, but so far human ingenuity has not conceived a workable plan for stabilizing prices. 1t we fail to recognize this we are inviting disaster. : The records of the past four years are an impressive 1Hustration of what may otcyr. The output of the salmon canneries in 1931-32 was about 7 per cent more than in 192930, but the estimated value of tiis output for the last two years is 25 per cent less than that of the previous biennium. A large ‘number of the canneries oper- oted at a loss and unless-there is an improvement in sale prices they czn not continue to pack salmon.‘ The outlook for the next two years is no encouraging. - g Each yexw ths fishing industry provides employment for several thousand no:-residents and if local people were given preference in, this industry nearly all of our surplus labor could be absorbed. Many ot the canneries do employ all of the available local labor and co- ope with local authorities. In approaching this problem there are many factors which must be considered. It is apparent that there ara certain postions that require skilled labor, which probably can not be supplied in the Territory. Moreover, the canneries have but a vory £aort operating period and they must be assured of their labor supply during the season when they are permitted to fish. They must equip the canneries for the season’s operations. This involves great cxpense and they can not be expected to jeopardize their invest- ment by neglecting to safeguard themselves against a shortage of labor. 'The chief difficulty appears to be the absence contact between theé laborer seeking work and the employer. In those communities adjacent to canneries this could be effected M»‘mz'ug angements could be made for them to report for Wor -32 was about . _'4ne value OmvAde: AuTH st Were. exported in 1931 TSy Delivered to Legis lature Today 46 per cent less than in 1929-30. This sharp decline is due to the low prices rather than to a decrease in the quantity. Approximately the same number of pelts were shipped. The decrease in one variety ;::t bmx;:e«:v l'l’ly :: increase in another. Early sales do not indicate a mal L e terial increase in fur prices during this It is apparent that we must expect a decline in tl S in our major industries during the next year and po&s{;elymt:‘:m following. It is almost certain that Federal appropriations for public works will be curtailed, and our own resources Wwill not permit x"x:r‘r’x;&la xgllxmmenm ixx"?rt }:.heue purposes. Consequently, there is certain ncrease e number of unemplo; devised for providing work. e e FINANCES The Territorial treasury is not in as satisfactory condition as it was two .years ago and the outlook for the next two years is far less "encouraging. December 31, 1932 the apparent cash balance in the treasury was $230,953.40 as eompared with $552,820.31 on December 31, 1931. Of this amount approximately $45,000 is credited to special deposits and permanent funds which can not be expended, leaving an available balance of $195627.57. Outstanding obligations and de- ficiences will, in all probability, reduce this amount to approximately $100,000.00, and this represents the surplus after all obligations that were incurred in 1931-32 have been paid. In 1930 the revenues were $904,168.81 and the disbursements $1,191,625.28, while corresponding figures for 1932 are $994,52060 and $1,019940.04 respectively. These statistics show that for the biennium the disbursements exceeded the receipts by $322,866.91. In other words, when all of the accounts have been paid we will have depleted our revenue to the extent of -about $350,000.00 The net cash balance, February 28, 1833 was $517,561.44 or $77,672.23 less than it was in 1931, but it should be clearly u‘nder- stood that this includes a major part of all revenues that will be collected in 1933 and out of it we must meet the expenses for this year. The following table shows the revenues that have been collected by t?; Te;rit;wr}; from all sources during the past 10 years. This will provide a basis for comparing the receipts of previous year: ith of the past biennjum. b B Increase Decrease 1923-24 i 1925-26 1927-28 1929-30 -$1,779,564.25 2,239,050.52 2,426,164.20 2,419,893.19 6,271.01 1931-32 ... 1,898,698.41 ’521,19:78 The probable revenues for 1933-34 under the present tax sched- ules have been estimated by the Budget Board after a careful consid- ration of all available data. Assuming these estimates to be as nearly carrect as it is possible to anticipate at this time, it is apparent that there will be a decline of approximately $300,000.00 in the re- ceipts for this biennium as compared with 1930-31 and that our total {;:e?u;sl will be the laxwest since 1921-22. The Budget Board estimates otal revenues available for expenditure duri 8l g pel ing the next two years During the two year period ending December 31, 1932, revenues were derived from the sources and in percentages as shown in the following graph. $459,496.27 187,113.68 Fisheries 81.01% DELINQUENT TAXES The Territorial Treasurer has compiled a list of delinquent taxes for the past four years. This report discloses that approximately $40,000.00 remains unpaid and due to the Territory. This represents all of the delinquent taxes for the past four years and is approxi- mately one per cent of the total revenues that have been collected. This is an excellent record and I doubt very much whether or not any other political subdivision in the United States can show such a small percentage of outstanding taxes. There is every reason to belleve that at least 50 per cent of these revenues will be collected. The report further shows that the larger items in the list are due from canneries, salteries and reduction plants and that in many instances the same companies are delinquent over the entire period. I believe that the Territorial Treasurer should be given authority to require a good and sufficient bond from a company which has not paid taxes for the preceding year before issuing them a license to continue their operations. This procedure would insure the Territory against loss of revenue and would not place additional burdens on because Of those who do pay their taxes. At the present time those who are dates were concurrent. Under the presen delinquent may continue their operations and remove their products from the Territory long before it is possible for the Treasurer to begin action against them or to hold their current production for past taxes. TAXATION Taxation probably has provoked more discussions, brought forth more theories, caused more bitter dissension and aroused more pro- tests than any other public question. From every organized com- munity throughout increasing burden, not alone on the individual but on industry and obability ' commerce. We do mot need to seek beyond the boundaries of our evidence of growing sentiment in support ori own country to find organized resistance against the collection of taxes. In every kind it Wwe . of human endeavor those who may be engaged in a particular enter- opposed prise, if they are successful, keep their expenditures within the normal expected returns, which are controlled by economic laws. When there is a depression they meet it by reducing expenditures. Taxes are a fixed charge and in many cases a very considerable factor in the yearly budget. Moreover, they are a factor that can not be reduced by the one who must pay them. All other phases of his business are subject to his control. I believe it is generally conceded by economists that one of the causes which is Tetarding the return of normal - business conditions is the of protest, to the support of the governmen! to assume his share. There may come a time when he can no longer do this, and whenever a majority of the people find themselves in this situation there is grave danger to our established institutions of government. ‘The control of. taxation is a function of the legislative body and will be followed for the next you must determine the course that two years. Expenditures may be reduced and kept within our ex- pected revenues or they may be increased and taxes increased. I believe that the first course is the most logical and the one that will prove to be the best for the Territory. A The equitable distribution of taxes is a difficult problem. Many theories have been advanced and many plans have been devised in attempts to distribute the costs of government fairly among those who should bear the burdens. Our Territorial tax system is peculiar in that we do not base our revenue measure on & more or less stable property valuation but on the uncertain and exceedingly variable production of our major industries. In years of normal production the receipts may exceed our expenditures but in unfavorable years when the production declines we suffer a corresponding decline in our revenues. Under wise provisions of existing law we can not incur obligations beyond our revenues, and since it is impossible to antici- pate the fluctuations in the production of our industries, the only safe way in which we may guard against a depleted treasury is t0 mdntnnlrellunablamrplu!ntuumu. Any other course may lead to serious and far-reaching damage to our economic structure The revenue during the past biennium declined approximately 25 per cent as compared with 1929-30 and present éonditions do not warrant the expectation that there will be a material improvement in the near future. In fact, we should anticipste further decline The fishing industry is the source of approximately 80 per cent of the world have come protests against the ever| average daily attendance has been 105 and we have had aj 25 applicants on the waiting list. Some patients, mafig;o?’m:}t‘egg cond_mpn, have been cared for in other institutions while awaiting admission to the Home. This situation is not of recent development and is not serious but must continue until a new Home is available. The question of providing a new institution is discussed elsewhere in this report. The sum of $110,400.00 was appropriated for the support of the Pioneers’ Home during the past two years, Careful management by the Superintendent has resulted in a decrease in unit costs of approximately 10 per cent and there is an unexpended balance of approximately $10,000.00 which will revert to the treasury. This is an excellent record and the Superintendent is entitled to commenda- tion for his efforts. The report of the Physician in Charge is very satisfactory, and he should-be complimented for the excellent service he is giving to the pioneers. our taxes and if existing market conditions prevail there will be a reduction in the output of the fisheries this year. We know from past experience that the pack of red salmon in Bristol Bay in 1935 will be almost negligible and we must anticipate a sharp decline in the revenues. The Commissioner of Fisheries has announced that fishing will be restricted in that district during that season. How- ever, irrespective of future regulations we are certain that the fish will not be available and we can feel assured that our revenues from that source will not be more than 30 per cent of normal. The taxes received by the Territory from mines and mining during the past two years are almost 50 per cent less than in 1929-30, and while we do not expect a similar reduction in the future we can not hope for an appreciable increase. Industrial expansion appears to be wholly improbable for some time to come and we can not hope for new activities that will be sources of revenue. It may be contended that we should increase taxes on existing industrial operations, but I do not believe this is advisable under present economic conditions. Many of our industries PENSIONS are in a precarious situation dnd an increase in the cost of produc- | Many baffling problems have emerged from* the complicated struc- tion in the face of lower market prices and more keen competition | ture of modern society, n may force them to suspend their operations. Should this occur, we large number of peopli w};’; :Z:c}:e:rsx:tfie t;n;:o al:d tfi;ds‘x:;sgfve: would not only be deprived of the revenues but many of our people |without funds or an opportunity to engage in gainful occuputloné would be without means of earning even & Ineager living. In our eagerness to achieve industrial supremacy, we have created I believe that our expenditures during the next two years can be |organizations in which there is an ever decrensm‘g der;u\.nd for the controlled so that they will not exceed our revenues and that it will|services of labor. Every improvement in methods of production makes not be necessary to change our present schedules, I am convinced it more difficult for those who have arrived at middle age to find that this can be done without impairing the efficiency of our insti- suitable employment. As a result, there is an increasing number who tutions and I can conceive of no greater service that we can render [are forced, against their will anri despite their best efforts to avoid to our Territory and its people. it, to seek assistance. This situation is becoming more acute each BUDGET day. Everywhere cconomists and legislative bodies are devoting their considered the estimates thatearnest efforts to find a practical way to meet the situation. The have been submitted by the several departments of the government ideal situation would provide some means whereby those lr;“‘ need for the ensuing biennium. We have most carefully estimated the |could earn a living in a manner that will permit them to maintain probable revenues, using as a basis the most dependah!c available | their dignity and retain their self-respect. |data, and we have brought the recommended appropriations within In Alaska we have elected to grant pensions to those who can this estimate. The proposed expenditures far exceeded the probable |qualify under our law, but this plan cares for or{ly a limited number revenues and it was necessary for the Board to make drastic reduc-|and can not be expected to include others without jeopardizing the tions on every item within our control. In justice to the other mem-|allowances that have been granted. We should undertake a careful bers of the Board, it should be stat=d that we have been endeavoring |study of the situation so that when it is necessary to adopt some to apply the reductions in such a manner as will least affect the|other plan we will be prepared to recommend a law that will achieve essential functions of the government. We have given first consid- [the desired results and place the least burden on the Territory. eration to those appropriations which directly and vitally atfect the |In the meantime, we are confronted with the more pressing problem welfare of owr people, education, care of pioneers, care of dependent|of administering our present Pension Law. g ehildren and relief of destitution. These functions must be performed Section 9, Chapter 65, Session Laws of 1929, places responsibility and we have provided estimates which should, in the absence of |for adjudicating applications for allowances in the Board of Trustees unexpected emergencies, be sufficient to meet the demands during|of the Ploneers’ Home. In my Message two years ago I brought this the next two years. We have estimated the available revenues to be|matter to your attention and requested authority under which the $1,582,827.57 and the recommended appropriations are $1,563,927.56, | Board, if it deemed 1t 'necessary, could cause investigations to be jeaving a balance of only $18,700.00. made by an agent of the Territory before granting the allowance. BUILDINGS This recommendation was made because we had received so many ars ago a commission was created to consider the problemcomplaints alleging that allowances had been made to those who desirable housing facilities for the Ploneers' Home.|did not deserve them. The situation has not changed and I wish ghway Engineer has been working on this matter|to renew the request. I am convinced that no other government Il be submitted for your consideration.|places a like responsibility in a Pension Board and so limits their Four years ago I recommended the creation of a fund for this and|facilities for obtaining hecessary information on which to base their other necessary building projects. The fund now amounts to $218,-[action. I do not wish to be understood to imply that thete is fraud 100, $178,000.00 of this is invested in Government bonds and $40,-|on the part of those who file petitions with the Board. On the 000.00 in Wrangell school bonds. The present market value of these | contrary, I believe that the records are remarkably free from cases securities is less than their cost and they should not be sacrificed.|of misrepresentation, intended or implied, but I am sure that our It is very doubtful whether or not a suitable bullding could be|present procedure invites deception, if there were those who wished erected for the available money and I am convinced that we can!to avail themselves of the opportunity to attempt it. Presumably niot provide additional funds during this biennium. I recommend | it was the intention of the Legislature to provide the maximum that the construction be not undertaken and that further allotments|amount that could be granted and that the Board should exercise to the building fund be suspended for the next two years. The in-|discretion in each case, allowing to the applicant such a sum as his terest on the bonds is $9,800.00 per annum and in two years the|circumstances might require. This is wholly impracticable under total should reach $238,000.00. In the meantime steps should be|the present procedure. As long as the Board can not investigate taken to acquire title to the present site il the event that it is[the case we must allow the same amount to every applicant. selected as the most satisfactory place for the institution. Some re- Throughout the biennium the Board has held meetings ‘at stated pairs will be necessary. The present buildings are not fireproof |intervals and granted allowances at the beginning of each quarter. Do are they equipped with adequate fire escapes. These shiould be For the first time since the Pension Law was enacted there is a provided at an early date. decline in the percentage of new applications. There are 368 on the UNEXPENDED APPROPRIATIONS roll at the present time and the quarterly disbursements approximate Before the close of 1931 it became apparent that the expectation | $23,265.00. we had entertained, that there would be an increase in revenues, was The following tabulation shows i ot to be realized and it was clearly apparent that if we were 0 the allowance wg aged residents Mar::: 1““;;‘;;);-’ ek - carry on the necessary functions of government, support our schools, Women 4 Total and provide funds for the pioneers and dependent children, drastic 13 133 yeductions in expenditures were imperative, It was necessary to 2 ped between curtailing the allotments of funds for all of the less 100 essential projects, thus providing sufficient funds' to' catry on the 108 essential functions, or approving expenditures that had been author- sl i ized by the Legislature and be confronted with a certain and unavold- TOLAS oo 25 343 368 The Board is not unmindful of the fact that the Legislature in- creased the authorized allowances to $35 and $45, but at no time since able deficiency long before the close of the biennium. It was found that the best interests of the Territory could be mvegag]y the flrst’ s refi timates of the probable revenues 5,1;: Egprrefi“fi,y""tfiwgregfi,e,“;fiz"{‘he funds aug;"d accordingly. the 1‘“! was changed has there been a sufficient appropriation to Sufficient funds were available at all times to meet outstanding ‘t’;’m tfithe Bo‘“t thd to ;lwilhtlhcz Iddedu:lln'ilon Dur;\g the past obligations and at the close of 1932 there was an unallotted balance du‘; JEaLs, ': B ;:1 :moo 1?‘3"! prior to 1929, the total in exess of $100,000.00 in the treasury. I shall not take time to Hst| ., e Sl Ao e MBM h‘:d raised the indi- Ithe various appropriations that were not expended suffice it to state - “1 A hno ‘m"“ e B '7;‘1‘ m % by law, the expenditures ihat the appropriations exceeded the receipts by approximately oné-: b Wiy et for Taat ormm.mm more than half- million dollars, and if we had not withheld the funds we would b ‘;g’spxw o e B%mw e blennium contains an item have been compelled to suspend payments to our schools and deny ,000.00 for pensions. estimate is based on the present rates, and if it is the wish of the Legislature that the pensions be increased to the maximum allowed by law the amount should be placed at $325,000.00. assistance to our pioneers and dependent children. The Territorial Treasurer at the beginning of the session esti- The following table shows the amounts expended for pensions each year beginning with 1921 1921 v The Budget Board has carefully “ Two ye: of ;providing more The Territorial Hij for some time and a report wi Men 120 25 95 103 First Division Second Division Third Division . Fourth Division 5 5 uld accrue during the biennium to be | | mated the revenues that wol $1,800,390.00 and the audit discloses that we actually recelved ap- proximately one-tenth of one per cent more than the estimate. We were able to meet our obligations because of the surplus which had been accumulated in previous years. This surplus has been depleted and for the future we must rely on our current revenues to meet expenditures. I desire to urge a most careful consideration of this situation because if the appropriations for the next two years are equal to the estimated revenues and there should be . a decline in the receipts, which may easily occur, there will be serious conse- quences. The present method o 31st, and creating appropriaf 1st, is confusing and always cai available returns. It would be muci 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 The expenditures for 1932 are almost of 1921. RELIEF OF DESTITUTION The report of the audit of the books of the Treasurer for the past biennium discloses that 20.52 per cent of all disbursements were made for eleemosynary purposes. These include the Pioneers' Home, old age pensions, care of dependent children and relief of indigents. I am not aware of any other State or Territory which devotes as great a proportion of its revenue to these purposes and I am convinced that we do not exercise adequate control over the expenditures. Authorization for appropriations for the Relief of Destitution are contained in Articles 3 and 4, Chapter 65, Session Laws of 1929. The first, provides a fund for distribution under the Office of the Governor; and second, provides for an allotment of funds to the Federal Judges, but stipulates that the funds shall be allotted to the Judges in each Division by the Governor. This dual system is ineffi- cient and wholly unnecessary. I am convinced that the funds should be combined and entire authority for their allotment placed in the Governor. The present law provides for an Advisory Board to be created, by and in the discretion of the Governor, but years of experience have demonstrated that it is impracticable to create such a Board unless there are Territorial or Federal officlals who will consent to act as members. 1 believe every one will concede that when relief is necessary it should be immediately available, otherwise it loses much of its value. Under the present system, insofar as the fund available to the Governor is concerned, this is impossible, and unless the ap- plicant is in a community where the District Judge may be situated relief can not be granted without the exchange of correspondence. Probably within the past two years every community in the nation has gained more experience in the distribution of relief funds than they have during any period within our recollection. It has been demonstrated very clearly that the most satisfactory way of relieving distress is through local organizations. This is especially true-in small communities such as we have in the Territory, where the local officers are thoroughly familiar with the circumstances of 1 view with apprehension the increasing costs of this work and |every one within their jurisdiction.” Moreover, every community should realizé that unless we can decrease the per capita cost we can not|pear a fair share of the cost of relieving those who are so unfor- care for those who will come to us in the future. At the beginning |tunate as to require assistance. This burden should be distributed of the biennium we had 142 children on the rolls and the monthly |among all of the tax payers and not be collected by subscription from | cost was approximately $2,300.00. Now we have 170 on the rolls and|a few. ' Under the present system pursued in the Territory we are |27 ;jpending applications, ‘Which if allowed at the authorized rate,|gradually drifting into the preliminary phase of the much condemned | will ‘require an expenditure of $3,600 per month during the next two|and il-advised dole system. This is abhorrent to our traditions and years. $70,000.00 was appropriated by the last Legislature and this|we should make strenuous efforts to avoid it. There are certain was expended or obligated by October, 1932. Since that time alljcases, of course, which can not be relieved except by direct con- applications have been placed in the pending file and the petitioners|tribution, but I am satisfied that there are a very large number of so notified, Assuming that the demands for the next two years|those who are receiving assistance who would gladly perform services | will increase as they have in the past, we must provide a fund of |in exchange for the food and clothing that they require. $90,00000 to meet them. I believe the only practical method of meeting the situation is PIONEERS’ HOME the one that T suggested to the last Legislature; namely, that the | The biennial report of the Superintendent of the Pioneers’ Home | Governor be empowered to enter into agreements with the authori- |will be transmitted to you by the Board of Trustees. One member | ties in incorporated communities, under which all relief in the com- of Board resides in Sitka and, through him, we maintain close | munity will be under the direct supe: authorities, With the institution. Frequent inspections have been made fand that the Territory will reimburse them for not exceeding 50 per by ‘Ofher members and we have ascertained that the affairs of thejcent of the funds so expended. The Governor should be able to Home are well managed and th> pioneers are well cared for by the|require them to show that the funds so expended have been given Sugv,rlnumm and his staff. Throughout the past two years the (Continued on Page Six) f closing the blennial period on December tions which expire March 31st and July uses an uncertainty in estimating h more satisfactory if all of these t law canneries are required ry 1st. Actually this state- 89,490.00 and one-half times those to submit a statement of their pack Januai ment accompanies their tax returns and sometimes is not available until March 15th, when the taxes become delinquent. Until this ‘smbemem is received it is impossible for the Treasurer to accurately estimate the amounts due the Territory from the preceding season’s | pack. The information is available to the operating companies shortly |after the close of the fishing season and it should be filed with the | Territorial Treasurer not later than November first. An amendment for the present law, which will provide for, the change, is desirable. DEPENDENT CHILDREN Ever’since man emerged from his primitive state and began to associate with his neighbors, the better to combat the forces which his existence, he has been confronted with the problem of o are unable to sustain life by their own efforts. en is one of the most difficult and by 1!3:"!;0, ‘most important phases of this problem. It is difficult under normal conditions, but the burden is enormously increased in times | of ,economic depression because these children come from the homes that are the first to feel distress and' fear of unemployment.. It s |of - the utmost importance that:they be cared for and. given proper |training in their youth because if they aré not many of them are duration of their lifé. Their, condition ity or negligence but the, result of A majority of them | develop they will become useful citizens. If we fail to recognize our ‘Oblltltmn and neglect to provide for them, we are evading a re- sponsibility that will bring us face to face with a great problem in |the 'future. The last Legislature authorized the appointment of a committee to study this problem in the Territory and directed that | they should submit a report of their findings for your consideration. This committee, under the leadership of one of the senior Senators, | hag prepared a report and it will be transmitted to you. It is worthy of your careful consideration. caring for those wh The care of dependent childr