The Cordova daily times., 1919-03-13
GOVERNOR ON
 FINANCES OF TERRITORY

finances as follows:
 I wish particularly to draw the at tention of the legislature to the condl- ton of territorial finances. There was, on December 31, 1918, in the treasury, approximately $45O,OOO. The normal income of the territory is Ill the neighborhood of $4OO,OO0 per an rum, making between $1,20O,OOO and S1,3OO,OOO available for expenditure during the coming bienrium. The legislature of 1917 authorized the ex- penditure of $1,449,901,66. Of this approximately $1,2OO,0oO has been ex- pended. The appropriation of $lOo,- 900 for the defense of the territory Is untouched as well as the fish hatchery, appropriation of $80,OO0. Other ap- propriations will not be used 1l their entirety.
 Estimates for 1920, covering only objects appropriated for by the past legislature, total $1,440,000, or about s2OO,OOO more than the territory's abil- ity to pay It will be, therefore, neces- sary for the legislature to prune ana cut down the appropriation program or to provide new sources of revenue.
 It is perhaps unfortunate for the territory that at the beginning Of the year 1917, the treasury came into pos session of an accumulation of taxes until that time in dispute. A false yearly income became apparent, which may possibly have had some influence on the appropriations made. As matter of fact, true territorial reve- nues for the three years previous to 1918 are as follows:
 l9l0 ......'.. @ooA'1Ao'o l916 ............... 1"''o'o'Ai 1917 444,962.93 an average of $4O9,O94.65. It is not thought that the revenues for 1918 will equal those of 1917, and indica- tions are that territorial receipts in the ensuing biennium will continue to decrease.
 The question of our finances has been giving me grave concern. There are many ways in which we can make expenditures of money to the great benefit of the territory, and yet urge the greatest caution. We are not al lowed under the Organic act, to in- cur obligations in excess of revenues; we have no power to take upon our shoulders a bonded indebtedness, and yet we are in need of money to carry on the charitable and constructive policies of the territory. We should find additional sources of revenue 1m- mediately and perhaps we should fol- low in the footsteps of many Of the states and appoint tax commission of not more than two or three qualified members to study our industries and resources and to prepare, for the con sideration of the next legislature, tax which will meet all the require ments of federal and territorial stat utes. As matters now stand, our ap- propriations for roads and schools alone will more than equal cur present annual income.
 To cover our immediate needs there are several methods by which addi- tional revenue can be raised, among which I can mention
 IA classified property tax.
 2.-An income tax
 3-Additional trade licenses.
 "A poll tax
 Under federal acts, certain trade licenses are provided for. Receipts from this source are covered into the Alaska fund and expended by federal agencies for the benefit of the terri tory. It is my opinion that all funds raised in AlaSka should be covered 1n- to the treasury of the territory and apportioned by the legislature. Con- gross should empower the legislature to amend or repeal all federal license acts so that uniform taxation laws may be enacted which shall be fair and just to all concerned. The short comings of many of the trade licenses are made apparent on even a most casual inspection of the list.
 recommend the adoption of 8 budget law similar to that of the State of Maryland, which in brief. provides that no new appropriations shall be considered until budget pre- pared by the governor, with the as- sistance of the various heads of de- partments, to carry into effect legis- lation already accomplished, shall have been acted upon. Until the budget has become law. none of the items estimated for can be increased, except under certain restrictions. but may be reduced by the legislature. The tendency of almost all legisla-