The Daily Alaska empire., 1930-03-22
JURY ACQUITS OIL NAGNATE OF CHARGE OF BRIBERY
RUSTCARD WINS
 IN RULING BY
 FEDERAL COURT
Harding Upholds Trollers Tax and Sustains De-
 murrer to Rustgard


 The validity Of the Territorial license tax of $250 per year on nonresident trolers was today up- held in the Federal District Court in a ruling handed down by Judge Justin w. Harding. He sustained in this a demurrer filed several . weeks ago at Ketchikan by At torney General John Rustgard to the complaint of Wood Freeman, Tacoma troner, against Treasurer Walstein G. Smith.
 Judge Harding held that the tax was not an effort to conserve the salmon fisheries, that it was not "so unreasonable and arbitrary as to amount to no taxation at all, l" and that it did not violate any 2 of the constitutional rights or prop erty guarantees claimed by the plaintiff.
 Quotes Highest Authority
 The ruling was largely based upon Alaska cases, involving fish taxes, heretofore decided by the United States Supreme Court. Two of these-Alaska Fisheries Company, and Hawk vs Alaska Pacific Flsheries-were quoted from lib- eraily.
 The question of whether or not the tax imposed was more than the business could possibly pay does not affect the validity of the statute, the Court held In this connection the decision of the Su- prema Court in the Alaska Fish cries case was quoted as follows:
 Even if the tax should destroy business it would not be invalid or require compensation We know of no objection to exactins discouragi1ig rate IS an aIterna- tive to giving up 2 business when the Legislature has full power of taxation
 ' Nonresident Principle Upheld
 Continuing, Judge Harding said: Tt must be borne in mind that the Supreme Court in the case of 3 Hawk vs. Alaska Pacific Fisheries has already upheld tax based upon residence alone, wherein resi- dent fisherm n were taxed noth- ing, and nonresident fishermen $5; and further, that the Supreme [ Court iri that case stated that they found nothing in the Constitution which prohibits Congress from fav- oring those who have acquired a local residence and upon whom the future devleopment of the Terri f tory must largely depend, - and that in the same case it was stated [ that the Legislature would have the same right as Congress with refer ence to such legislation as we are considering.
 "At any rate, this Court does not feel that under the showing Of this complaint, it can declare void as violative of the Fifth Amend ment to the Constitution, a revenue act of the Territorial Legislature as being so unreasonable and ar Litrary that it does not amount tc taxation at all, merely because il extends to the extent of the amount of the tax herein involved, a prin- ciple already upheld and sanction ed by the highest authority History of Act
 The tax on nonresident trollers which was attacked by Freeman ir this case, was writer n into tht Alaska statutes by the House O. Representative of the 1929 LegiS. lature as an amendment to a Sen ate bill which was introduced b! Senator Charles Benjamin, Wran gen As originally introduced tn measure fixed a tax of $50 on al nonresident fishermen.
 The Senate Committee to whict it was referred, consisting of Sena tors Benjamin, Anderson and Franc unanimously reported it for passag' but amended to fix the following rates: $50 for trollers using boat not over 20 feet long; S150 for trol lers using larger boats than tha size: s1o on gill netters; and S25 or seiners. The Senate passed 1t I that form seven to one, Hess votlnl no.
 House Rewrites Bill
 The House virtually rewrote tn measure. It struck all other class es except nonresident trollers an put tlie tax on them at the s25 rate. In this form the bill passe the House Is to 1, Foster voting nc The House Committee which re wrote the bill was composed C Representatives Joe Murray, Alfre Lomen, Walter Fisher, A. H. zeig Ter and Grover c. Vim.
 The Senate agreed to the amend ment of the House and the bill wa approved by Gov. Parks in ths shape. Its validity was upheld b Judge Harding this morning.