The Daily Alaska empire Newspaper, February 26, 1945, Page 8

PAGL EIGHT THE DAILY ALASKA EMPIRE--JUNEAU, ALASKA INCOME TAX MEASURE IS KNOCKED OUT SENATORS PUT Meeis Baby for First Time HOT BILL INTO (OLD STORAGE Only Five Solons Oppose Motion fo Indefinitely Postpone Measure Public n spoke with a loud voice in the Territorial Senate this morning Result: The Senate, by an 11 to 5 vote, embalmed and laid away Sen- ate Bill No the Net Income Tax Act—by the ndefinite postpone- m route Leading off the Senate calendar, to come up in second reading today, the tax measure was struck down after only the title had been read by the Secretary and 102 pages of “love's labor” was lost when the motion to kill, put by Senator N. R. Walker, one of the measure’s most ardent early adherents was carried Voting againt postponement were Senator Frank Gordon, the sponsor; Senator Don Carlos Brownell Senator H. H. McCutcheon and Senator An- drew Nerland. The other eleven slons didn't want cven o g0 through the motions before giving the measure its death-blow, and so voted. No discussion preceded the vote today, but plenty had been already heard on the bill, mostly “con,” during four session of Committee of rea James 2. Akins, a merchant seaman, kisses his daughter, Elaine, whom he saw fer the first time when her mother (left) brought her 2 to New York to meet him on his arrival aboard the liner Gripsholm with 1,208 other repatriates froh German prison camps. Akins, a sur- vivor of the freighter Carlton which was torpedoed in 1942, formerly ‘\\-111 go to Washington or other states having no income tax. He struck again at the omission of a provision for the “carry-over” and ‘“carry-back” of gains and| |losses. That provision . was found necessary to secure justice in the Federal Code, he contended. “Our |two main industries are highly speculative and the five-year cycle |is surely a truer gauge for them than any one year.” 1 When Senator Gordon pointed | out that it is possible, under the bill, that a seasonal worker may pay a lower, or equal, tax on the| same income as that of a resident, Mr. Robertson declared his opinion that the fact that the tax is computed by different methods for| seasonal and resident workers in itself, discrimination.” Unconstitutional? 85 STATEHOOD MEMORIAL IS PASSED Senate Re@ges Decision on ""Pet” House Meas- ure, by Request “A piece of candy for the baby, expressed by Senator as Howard 34, providing for {Lyng, was handed out this morning heirs in estates less than $1,000. The MONDAY, FEBRUARY 26, 1945 been engrossed O. K. The Com- mittee on Fisheries, Game and Agri- culture gvae no recommendation to {the wolf bounty increase measure, House Bill No. 40. | “Do Pass” ‘Rt--yoUsetersonesentativer The Education Committee turned out two measures: House Bill No. |9 with a “do pass” and Senate Bill .‘No, 31 without recommendation. Both were passed along to the Fin- ance Committee for action on appro- priations. No. 9 is the Teachers’ Retirement Act. No. 31 establish- es a Department of Health. | Five bills were reported back by | the Judiciary Committee, all with “do pass” recommendations. The -Committee offered minor mechani- |cal amendments to House Bill No. adjudication of This bill will probably be held py the Territorial Senate when that other bills were approved “as is”. | unconstitutional in Attorney Robertson opined. Getting an affirmative from the witness, as to whether he that Statehood for Alaska. regard, pody, in response to a request from They are: House Bill No. 33, pro- (the House, reconsidered its vote on!viding for series of answer House Joint Memorial No. 7, asking foreign corporations; House Bill No. summons on 36, for serving summonses on do- represented any mining compuny.} Senator N. R. Walker, who Sat- mestic corporations; House Bill No. Senator Gordon persisted in attempt to attack the “unfairnes: of the gross gold tax by comparing tion, with the explanation an yrday had given notice of his inten- 37, for delegating certain duties to |tion to reconsider, today put the mo- judges and Senate Bill No. 29, pro- that viding for transfer of certain prope! it w_itl\ mining taxes in Canada— | though he still thought the memorial ties in Nome to the U. S. Army Sig- despite repeated rulings from the was superfluous he sawino harm in nal corps. | chair that arguments on the merits of the bill by Senators were “out ,of order.” Senator H. H..McCutcheon then brought up the difference in com- | mercial fishing licenses for resident |and non-resident fishermen in op- | Position to the “discrimination” itheury. with regard to the income tax bill. Mr. Robertson countered with the opinion that licenses are subject to the “police powers” of the Territory. It was also brought out that the present larger license |fee for non-resident fishermen has {not yet been subject to attack in court. giving in to the House desire tor O, D. Cochran r¢ tated contracting resolution, The Senate received the supplies which was son for opposing the mea- mixed up on Saturday, House Joint sure: that its passage would record Resolution No. 1. the Senate in tion”, inasmuch already passed a the bill Direct action by the now, asking Congress for Statehood ed. Senator Grenold Collins stated, that in deference to the wishes of the House, he was willing to change a very absurd posi- to the Printing Committee. solons have to put the ernor, stating that he had set his| Statehood issuc up to the! people of pen to Senate Bill No. 15, a narcotics | the Territory through a-referendum. measure, and House Bill No. 18, re- | Legislature quiring reporting of divorce decrees | ,to vital statistics. would be inconsistent, he maintain- It was sent back A com- munication was read from the Gov- At the time of the noon recess, un- |til 1:30 o'clock this afternoon, the Senators were in the midst of second | |reading of Senate Bill No, 16, the “Basic Sciences” regulatory act. NIGHTSPOTS WILL CLOSE ATMIDNIGHT Order of WMC Is o Go Info | Effect af 12 Tonight | -Some Howls | WASHINGTON, Feb. 26. — Wee | hour fun in the nation’s night spots lis at an end for an indefinite | period, although rumblings of pro- test continued from some amuse- ment place operators. Indications that the government's request for a midnight closing of | j entertainment establishments, be- ginning tonight, will meet with gen- eral compliance from New Yorkers were heard. ‘Mayor Fiorella La Guardia said some unspecified “adjustments” may be made this week. The War Manpower Commission’s instructions . on enforcement were announced over the weekend. They provide for cross the board shut- down of private, as well as publie places. Midnight is the curfew hour as far as civilians are concerned. Entertainment of military. per- sonnel may be continued beyond midnight but it must be sponsored’ by “responsible agencies” such as the USO and also on a non-profit basis. FURLOUGHED MEN HONOR GUESTS OF . AMERICAN LEGION Juneau's servicemen, who arec home on furlough, will be guests ; of honor of the American Legion tonight. Commander Les Sturm announc- % ed that, following the regular busi- ness meeting, the boys will be en- tertained with movies and other. features, including a big feed. : The meeting convenes at § o'clock at the Legion Dugout and a good crowd is expected. VR, . IR | RealGold California Orange Concenirate the Whole hearings Requested by Gov. Ernest Gruen- ing in his message to the Legisla- ture, and supported by organized labor, the provisions of the measure had been fully explained to the lived in Los Angeles. (AP Wirephoto) his vote against the bill, as he did Amendments already adopted had not think it would much matter. eliminated a paid Executive Secre- Senator Lyng agreed with him and gary to administer the bill's provis- intimated that he had heard of “re- 'i0ns, had substituted an \mpuklI percussions” from the House, if the Secretary, had stricken the bond | Senator Don Carlos Brownell concluded the questioning of Mr. Robertson by asking: “If the fea- tures of the bill which you regard as objectionable (gross taxes on mining and salmon industries, in- shed to appear on the bill before the Senate Committee of the Whole, Arnold calmly dropped a block-buster. issue with the witness, following which Prof. Alfred Harsch, writer | of the tax bill, was called in and! Senator O. D. Cochran, a w provisions and discussion was in! Senators by Prof. Alfred Harsch, tax law authority from the University of ‘Washington, who was imported by the Governor to frame and speak for the bill. The open hearings had brought attacks on the measure from representatives of the gold mining industry and spakesmen for the public. One feature of No. 12 is still alive, in a new proposed act introduced in the Senate this forenoon by Sen- ators Walker and Grenold Collins. Senate Bill No. 37 would establish a Territorial Department of Taxa- tion, create the office of Tax Com- missioner, provide for collection and enforcement of Territorial taxes, prescribe powers, duties and penal- ties and beé made effective by an appropriation not yet set, from which the Tax Commissioner would draw down $7,500 per year. A similar measure to No. 37 has al- ready been put aside in the House. Prof. Harsch took off from juneau yesterday to return to Seattle by Pan Ameriean Airways plane. FISH INDUSTRY OPPOSITION T0 TAX ACT SEEN Roberfson Pokes Holes in Net Income Levy at Hearing Saturday Proponents of Senate Bill No. 12 had a week-end in which to pick up the pieces of their Net Income Tax Law, after sharp-shooting legal lights had drawn a deadly bead on it in the closing installment of the public hearing on the measure Sat- urday afternoon Juneau Attorney R. E. Robertson loosed a few telling salvos at the bill, but the real demolition punch was landed in the closing minutes| of the hearing by representative for industry. W. C. Arnold, the Canned Asked if he S TR AN RO A" “I do not wish to appear on this lawyer, moved into the disc fourth s from the presiding chair, to round | corporation of provisions by ref- bill at this time,” he stated. But, he continued, if it is the intent of this Senate, as has been expressed, to grant relief from the gross tax provisions to the gold mining in- dustry, “I will want to be heard, at a later time, in behalf of the industry that pays the largest tax to the Territory.” Robertson’s Objections Attorney Robertson posted as his first objection to the bill, the in- corporation, by reference only, of many provisions of the Federal Internal Revenue Code. “I have not counted them,” he said, “but I think there must be more than 40 such references. £10SS The complete and actual lan- guage of the law should be in the bill, he contended, in order t! the la s may know on w ssing. Also, “the publ entitled to have access to the complete measure without having to look up a dozen additional books of law. Even lawyers cannot always €p up with the Federal Code, it s0 often amended,” he declared. Would the people read the pro- visions and be able to understand them if they were set out in the bill? asked Senator Frank Gordon, | sponsor of No. 12 | “Maybe not—but they are en- titled to the opportunity,” Mr. Rob- | ertson replied. He struck also at provisions« of the bill by which Federal Bureau of Internal Reve- nue regulations are made a part of the act. They are not even laws, but are laid down and picked back up from day to day by an admin- istrator, - he pointed out. “Who would decide which of them are meant to be a part of the law of Alaska,” he demanded. Statute Cited Mr. Robertson quoted from a text book on the framing of statute laws and cited a holding of the Court of Appeals of the State of New York to support his argument that the use of references to other )t is poor law-making practice. “It is such an evil that some states have constitutional provi- slons against it,” he emphasized Mr, Arnold at that point took Commercial Fishermen Note 300 Ampere Hour §-Volt Battery We have a limited number of these 250-pound, Navy type constructed, lead cell batteries which can be made up into 12 - 24 or 36-volt banks. Re-conditioned navy ype from U. S. S. Colorado ... . war- ranted fo be in good condition. PRICED RIGHT! . PARSONS ELECTRIC CO. - UNEAU, ALASKA g J ‘have before us to' vote on?” out a fourway rally of legal opin-|STence: Siscrimination agairist sed t was & bt beyond the|yo, think the bill fair?” of the assembly. | Mr. Robertson answered: . Mr. An)u‘fld 1)[\\. forward as his|youg nave to know the need for ;i:]l‘lul"l:dt\":‘:’('('l2):])i:" ul|rx) ‘F;(;;";l additional revenue before I could P b i ahAise i ‘fnd; Lisay.” If the Temitory needs more S money, then a net income tax is as which it would be the responsibility | g1 wa ! dtiy 'to THlEOR cf the administrator of the law to| "p e gy S0 R T iy :’m‘l‘l"\““:‘f"-}:““;‘(;“ SO ‘f“ finale to the hearing, with a state- g it rdy .o |ment that arguments against in- provision # within the bill BB o) sfort oBoprovIMbAS h G Ak Bo forthrightly (!vclu}'p\ that In- | eference could be granted. The corporated provisions of Fed- | coson. for such.‘reférendés In Ser. eral Act are adopted in form | e "Bl No. 12 were, he said, that ml:\“I‘J‘((""’:q’:,“l)”‘('zf’mur"’ ACt | the policy in framing the bill had ~ R been to adopt, whenever practical, Federal Regulations the Federal Law. That references The Federal regulations, he said, |had been used wherever possible, to are intended to serve only as a |save time and space. The Federal guide for the Territorial Tax Su- |provisions referred to “are defi- pervisor, showing the intent of the !nitely available,” 'he declared. Legislature to conform as nearly The Committee of the Whole possible to the Federal law. It |arcse to report—with the recom- would lie with the Supervisor, at| mendation that no further hear- his discretion, to adopt, modify Or ings be held on Senate Bill No, 12. reject such of the Federal regula- | — | tions as he may see fit | HAVE GOLD FARM duties of the Supervisor, should the After all these ,years, a new law become effective, to print and | make available to the public the entire act, with the inclusion in full of provisions by reference?” « |method has been found to mine Prof. Harsch and Mr. Robertson |gold. According to a report in a both gave. as their opinions. that reputable trade journal, land that such action would be necessary. |contains < the precious metal is Senator Leo W. Rogge put in: planted to horsetail. The horsetail, “That would ,be after the bill is|after being allowed to mature, is passed.—What are we going t arvested, roots and all, then dried tand burned and the ashes panned. Mr. Robertson continued his at According to the account, a ton tack on the measure by declaring | of horsetail may leave as much as his belief that it is discriminatory |six ounces of gold in its ashes. as regards the special taxes on Prospectors in gold-bearing areas mining and the salmon industry, are said to seek horsetail as an also the “occupation” tax to be put |indication that gold is present. on seasonal workers. | 'The plant, it is said, has an af- Seasonal Worker Tax | finity for gold, and concentrates Since what he said fas merely}the gold in the vicinity where it conjecture, Mr. Robertson state his grows. fear that the sonal worker tax | Judging by the depth of the shafts would increase present difficulties |and tunnels of the Alaska .Juneau in getting outside workers to come |Mine workings, roots of the plant to Alaska for cannery and mine may find the going a bit tough work. “T also greatly fear,” he said, in getting down to the gold in this “this tax, if passed, may cause larea, but you never can tell, some- many people to leave Alaska.” They pne may start a gold farm! ions laymen y the their at torial e AR AR AR e lower chamber were not given its ed the memorial, 12 to 4, with only Senators Cochran, Leo W. Roggeé, ¢ progress over the status of physi- | On the new vote, the Senate pass- ¢lans and surgeons,with:wegard to | the act. Senator Frank Gordon had sug- | Allen Shattuck and Frank Whaley 8ested the inclusion in the bill of re- maintaining their opposition. |ligious healers, who accept money Senate Committees evidently put|for their services, but was talked in a large week end for they crowd- ed the Secretary’s desk with return- ed measures this morning. The Engrossing Committee declared that Senate Bill No. 28 passed Friday, had ldown for thet moment. ———— MR. AND MRS. EDWARDS HERE i Mr. and Mrs. Wesley E. Edwards ! are staying at the Baranof Hotel. Today’s Special IMPORTED RUM PINT Juneau Liquor Co. PHONE 498 13 / (¢ RERRRERR X5 Slack R R RN AR R R R AR R AR R RRRRRRRRRRRRTRRRR RS R AR RRRRRRRRRRS RRG RRRRRG FOR THOSE WHO CANNOT SHOP DURING REGULAR BUSINESS HOURS YVONNE'S HOURS EACH MONDAY ARE FROM 11 A. M. TO 9 P. M. 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