The Alaska daily empire., 1915-08-11
ASSEMBLY ACTS ARE
 VALIDATED

Tho Territory of Alaska won an important victory in the United States district court this morning.
 Judge Robert W. Jennings dis missed the demurrers filed by coun- sel for Che Hoonah Packing company to Che suit brought by Territorial Counsel Cobb for the collection of 1915 license taxes. which virtually amounts Co the validation oi the Legislatures s tax measure. and sustained the Ter ritorys demurrer to the suit 0led by the First Divisions legislative dele gatiou Co prevent Territorial Treas urer Smith from paying ont the forest reserve moneys to the other divisions Of Alaska. for road Improvements.
 Territory ls Upheld.
 In other words the acts of the Ter ritorial Legislature are upheld. with out reserve. The court ruled only on one of the tax eases. that against the Hoonah Packing company. The oth- CT defendant. the Alaska-Pacifc Fish cries company. had stipulated to abide by Che courts decision in the Hoonah Packing company ease, as the suits were identical
 In the road money case, J. G. Held. counsel for "the members of the First Division" gave notice that he would appeal the case. He will file a bin of exceptions within the next sixty days. The court allowed the request.
 Road Act Constitutional"
 "For the court Co declare an act of Che Legislature Of the Territory of AL asia to be against the Organic Act that is to be unconstitutional-at the suit of person who shows no great CT interest than Che plaintiffs in this ease show themselves to possess would be for the court to assume an unwarrantable and almost unheard-of power. The demurrer is sustained" |"
 In these words Judge Jennings closed the announcement of his de- cision in the case of Held. Sulzer ct al vs Walste'n c. Smith as Treasurer of Che Territory of Alaska. The ac- tion brought Go restrain the Treasur- CT ol Alaska from disbursing moneys received from the sale of national forest timbers in accordance with the recent provision of the Territorial Legislature.
 One or the main arguments offered suit was the iact that the Organic Act by the plaintiffs in support of their provides that moneys received from such sale shall be used for the bene- ft Of the county in which the source of revenue exists. and argued that since there are no counties in Alaska and that the whole source Of the mon evs under discussion was within the bounds of Che First Division. the funds should. be expended for the ben eft or the First Division and not for the benefit ol the whole territory. as divided into four parts. in accord ance with the enactment of the Leg isiature
 "Of course. said Judge Jennings this morning. there is no magic in the word county 1T there are sub divisions in the Territory of Alaska possessing the substantial attributes of what are called counties the name of Che subdivisions would not be im- poriant
 "The judicial divisions of Alaska are ir great measure analogous to counues-they are subdivisions of Alaska both for judicial and political purposes It is true that the divisions have no fixed entity no county commissioners. no county gov ernment. no county institutions and neither raise nor expend funds pro vided by local taxation; but for all lhat they are more nearly analogous Co counties than anything else we have
 Money Belongs to State"
 ~There are three very substantial reasons" the court said in closing, "why this suit cannot be sustained. The whole state has an interest in the disposition of the revenue of a county and for the public good the Legislature must have Che power to direct It's ap- plication.
 "Thc trust expressed in the act Of Congress is a trust personal to the United States and this suit is not brought by the United States. Con- gress virtually said We grant this money to Che Territory of Alaska for the benefit of roads and schools in that part of che territory which pro- duces Che money and we trust you to SO apply it r. the Legislature does not SO apply it no one but the donor can complain and the donor is the United States
 The tax demurrer was filed by the Hoonah Packing Company on the ground that there were not sufficient facts stated to sustain the action of the Territory. that the Legislature had no right to impose the tax. and that Che law was not constitutional since it opposed the Organic Act