The Alaska daily empire. [volume] (Juneau, Alaska) 1912-1926, 1922-06-13
ANNETTE ISLAND
DECISION GIVEN
BY JUDGE REED
Holds Territory Cannot Tax
Annette Island Cannery
Gives Indian Status

III Il uCtESlol iL4lCh ny JAN5C 49,
Reed in the U. s. District Court, the
residents of Annette Island are de
clared to be wards of the nation I'M
der the guardianship of the Secretary
of the Interior, residing on reserva
tion, living subject to such rules and
regulations as such Secretary may
promulgate for their welfare and
prosperity and the canneries operated
on the reservation under lease are
not subject to the customary Terri
torial taxes. Judge Reed ordered
judgment entered for the defendant.
the Annette Island Packing Company,
and dismissal of the suit with
prejudice.
The above action was commenced
about two years ago by the Terri
tory against the Annette Island Pack
ing Company and involved s4,443.64
for the case tax on salmon packed
trap license taxes and taxes on the
net annual income of the canning
company After the institution OF
the suit, the Secretary of Interior, as
executor of the lease under which
the cannery operated and as guardian
of the Metlakatlans, was brought
into it as intervenor
Raises Citizenship Issue
Briefs were submitted by Judge
James Wickersham. counsel for the
Territory, and A. G. Shoup, for the
Secretary of Interior, carly this year.
Judge Wickersham raised the ques-
tion of the citizenship of the Meta
katlans and argued that they, includ-
ing all Alaskan Indians joining the
colony since 1T came to Annette
Island, are citizens of the United
States. This contention of the Ter
.ritory's counsel was widely circulated
among the Indians OF Southeastern
Alaska last winter and spring.
May Become Citizens
Although Judge Reed in his deci-
sion said that the question of the
citizenship of the Metlakatlans is
not material in the case, theoretically
at least, he upsets Judge Wicker
sham's contentin. In this connection
Judge Reed said:
dams, being wards of the nation, as
was said by the Supreme Court lin the
Alaska-Panific Fisheries case. the
question of their being foreign born
fe; immateria1 here. II such Indians
leave the reservation and take UP
the habits OF civilized life, they may
become citizens of the United States
IA, Aot Of o11 1897
but that lis question to be determin-
ed in each individual case. lit mus'
be conceded, as before stated, that
the question of the citizenship of
these people ds not a material ques-
dion, in this case. provided they oc-
cupy the status of wards of the ma
dion."
Taxes Held Invalid
The decision holds that the Secre-
tary of the Interior is empowered by
Congress to make rules and regla-
tions for the residents of 'Metlakatla
Island; that he entered into a leas-
ing agreement with the Annette
Island Packing Company with full
authority and that the lease is an in
strumentality of the government for
the purpose of carrying out the ohli-
cation of the government to the in
habitants of the Island"
Vt holds that the lease covers
rights to engage in the fisheries in
dustry on a reserve over which the
Territory has no jurisdiction and
that both the case tax and trap
tax. being direct license taxes, are
void AS to the income tax, the
court said ut is a direct tax upon
the net Income derived from such
lease and is. therefore, void under
the decision of the Supreme Court, "
as given in an Oklahoma case in
point. 1t also said further. THE
right of fisheries on the reservation
and adjoining waters is reserved for
the benefit of the Indians resident
thereon, and by taxing traps on the
reservation. the Territory assumes
the right to license the privilege OF
carrying on the business of fishing
with traps on a reserved area OF
which it has no jurisdiction. This
1t cannot do.
LAS to the tax based on the mum
Der and kind of salmon canned it is