The Alaska daily empire., 1917-03-22
Canneries Are Paying the License Taxes That Are Due Notwithstanding
 the Attorneys.
STIPULATION INVALID
Grigsby Held That Rights Could Not Be Waived and Demanded
 Payment.

beginning to pour into the Territor- lal treasury More than SI2,OOO has
 been received by Territorial Treas.
 Irer Walstein G. Smith within the last few days, and tclegrams have
 been received saying that more than
 S1OO,OOO more is on the way to the
 Territorial strong box.
 These payments are being made under protest and in spite of stip- Iulation that was entered into by for.
 mer Territorial Counsel John II. Cobb in which the Territory was pledged not to attempt to make collection
 until the validity of the license tax
 had been decided by the court of
 last resort" Under the stipulation
 the Territory was further pledged
 not to attempt to collect any penal
 lies or other charges than interest
 on account of the delay in payment
 that would result from waiting for
 ! decision from the United States Supreme court.
 Grigsby Held Stipulation Invalid
 Attorney. General Grigsby held that
 he stipulation was invalid. that Ter. ritorial officers had no right to waive the rights of the Territory un
 Ter the law, and last January noti
 fled the various canneries concerned
 that he could not, under the law,
 abide by the terms of the stipula.
 ion. and notified them to make the payments required by law within 60I days or he would begin action Go compel payments. including interest, penalties and other costs, In com. Dliance with that demand, payments ire being made.
 IL is estimated that more than $3OO,OOO is due the Territory from
 hese cannery taxes for the years 1915, IA, To and '1G.
 Protest Tells Story
 The printed protests filed with the 2anueries making the payment of taxes tells the story of the proceed
 ngs that have occurred in the prem, lseS. It is addressed 10 Territorial Treasurer W. G. Smith, and recite5:
 "GJ On or about the 9th of De. cembcr. 1915. the Territory of Alas. a. plaintiff. commenced an action against the Alaska Salmon Company. defendant. in the United States Dis, tyict Court, Territory of Alaska, First Division, to recover license fees and taxes imposed by the Territor. ial Legislature of Alaska for salmon packed by the defendant during the year 1913. subsequent to July 31st of that year and for salmon packed during the years 1914 and 1915 in the Territory of Alaska and to have determined the validity of an act of the Legislature of Alaska desig- mated as House Bill No 9G," ap. proved May 1st 1913. and to have determined the validity of another act of the Legislature of Alaska, designated as House Bill No. lO9" approved April 29th, 1915
 "(2) On December 22d, 1915, Judgment was rendered in said Court ,n favor of the Territory of Alaska md against the Alaska Salmon Com. oany for such license fees and tax. es From this judgment an appeal was taken to the United States Cir. :uit Court of Appeals by the Alaska Salmon Company, and thereafter. on September 5th, 1916, the judgment )f the District Court of Alaska was by the United States Cir. ,uit Court of Appeals, and in De. ,ember. 1916. an application for a writ of ccrtiorari was made by the defendant to the Supreme Court oC he United States which applca. ion was denied. Thereafter the de. endant applied for writ of error rom the Supreme Court of the Jnited States to the United States 'ircuit Court of Appeals to reverse aid judgment of the United States ,ircuit Court of Appeals, which rror was duly granted and is now ,ending and undetermined in the Su. reme Court of the United States.
 "(3) That it was intended by aid action to have determined the 'alidity of said acts of the Legisla. ure of Alaska and the right of the territory of Alaska to collect license ees and taxes from all persons and operations engaged in canning sal. non in Alaska subsequent to July lst 1913, and also during the years 0l4 and 1915, and said action was ltended to be a test case
 "tD That about the date of the of said action tipulation was entered into between he Territory of Alaska on the one art, acting by and through its Thief Counsel, with the approval of he Governor Of Alaska, and the un- ersigned on the other part. By the erms of this stipulation it was greed that no action or proceed. ngs would be taken by the Terri. Ory of Alaska to enforce the col. ,ction of said taxes and Iiceuge feas