Valdez daily prospector., 1916-02-18
OUR. LEGISLATURE l. |S THREATENED
If AIexdrander Measure Becomes Law : Territorial Government be
 Left Without Funds.

Jack Underwood, whose writings are familiar to the readers of the Se- attle Times, believes that if the mea- sure introduced into congress by Representative Alexander of Mis- souri providing for the removal of the fisheries of Alaska from the jur- isdiction of the Alaska legislature is passed by congress that the legislative body may just as we'll close up shop.
 The bill prohibits the imposition of taxes on the fishing industry of Alaska by the legislature and also provides for congressional disappro- val of the acts of the Alaska legis- lature approved May 1. 1913. in so far as they impose taxes and li- censes on the fisheries of the terri tory. In recent issue of the Times Underwood Is quoted as follows:
 If the bill becomes a law the Alas ka Legislature virtually will have to cease business, for the reason that 1t will be unable to impose taxes on any of the Alaskan industries. with the exception of the newspaper pub fishing houses ana barber shops.
 In 1913 the Alaskan Legislature placed tax on the fisheries of Alas ka, and the sum now due amounts to $300,000. Secretary Redfield some time ago recommended the enact ment of a law prohibiting the legis- lature from taxing fisheries on the ground that the industry already was taxed by the federal govern ment
 So also is every other industry in Alaska taxed by the federal govern ment, and it is reasonably certain that if the fisheries are freed from their tax burdens other industries will ask a similar privilege This will leave the Territorial government without funds.
 The Alaska enabling act provides that bills passed by the Alaska Leg islature become laws unless they are specifically disapproved by Congress, but no time limit is placed on the congressional. .disapproval. Congress man Alexander's bill, therefore. aims to invalidate a territorial law enacted nearly three years ago.
 The bill is certain to be fought bitterly by the Alaska delegate to Congress, James Wickersham, and it is certain that the Western delega- tions will be asked to assist Wicker sham in the battle.
 II don't pretend to know anything about the justice of these taxes, !" Maurice Leehey, owner of consider able property in Alaska and mem ber of the Alaska bureau of the Se- attle Chamber of Commerce, said this morning, "but I do know that the territorial Legislature is the pro- per body to impose taxes in Alaska. If dual taxation is improper, the Leg islature will have nobody left to tax, as the federal government has al- ready taxed practically everything.
 "If the fishing industry is excused from its tax, the mining industry will want to be excused. These are the two great resources of the terri tory. .,-. s.. Those engaged in the mining in- dustry would rather the territorial government be given the exclusive privilege of taxing. not alone for the reason that the money would be ex- pended in the territory, but because |the territorial Legislature is certain to have some members: who are fa- smiliar with the industry and who are better qualified to impose taxea intelligently. 'a :" E
 "This, is illustrated in the two forms of taxation on mining now in operation. The federal law places a tax on each stamp installed, but the territorial law places a tax on the net income of the mine at the end of each year. In other words the federal government forces man who is trying to develop a property to pay his taxes before he begins oper' ations, but the territorial law gives him chance to take the money out | of the ground before the tax is due The miner who makes big profits doesn't mind paying taxes;the one who Is operating at a loss is net re' Iquired' to pay any under the terri torial law. ,,5 a' .a.- 'ee' '''1
 ""The bill prohibiting territoria tax on fisheries ia certain to meet with violent opposition from, Alas kans. If 1t becomes a law the. Legis' lature might as vwell-be disbanded. , \ +T&. Y F. ' - s'sssfv s5trt