The Daily Alaska empire., 1934-12-22
SOVIET SOLDIERS INVADE MANCH0UkU0
COUNCIL KEEPS FAITH WITH A. J. ON TAxQUESTION .
City Fathers Hear fiaulk- ner's Report-Do Not
 Rescind Contract

AS far as the City of Juneau, through it's City Council, is con- cerned, the tax exemption contract between the city and the Alaska Juneau Gold Mining Company will not be rescinded. This decision was taken at meeting of the Council last night in the City Hall.
 Hearing detailed report on the tax exemption question, raised two weeks ago by Judge James Wick ersham, former delegate to Con- gress, the Council was unanimous in deciding to keep the terms of the contract.
 Councilmen William Beck, Wallis George, George Rice, A. F. Mc- Kinnon and R. H. Beistline voted aye" Henry Messerschmidt was absent.
 Questioned Legal Rights
 The issue, as raised by Judge Wickersham, was: Did the city, in 1913, have the legal right to allow the Al. tax exemption on certain properties for 30 years in return for services, such as water pump ing system for fire prevention and free use of mine tailings for road fills?
 City Attorney H. L. Faulkner, in a complete and detailed report read to the Council before it took action last night, agreed with Judge on his legal objections but pointed out the question was one of policy as well as law. City Attorney Faulkner first cited examples which proved that the legality of the contract might be questioned successfully in a court. However, he then showed where courts had upheld similar con- tracts between private companies and municipalities on the ground that the services given by the com pany often amounted to as much or more in indirect cash benefit to the city as the taxes, if collected, would have been.
 Contract Upheld
 Following the report reading, Councilman Rice introduced reso- lution which called for the city to abide by the contract. George mov- ed the passage and McKinnon sec onded the motion. It was passed without dissenting vote.
 Judge Wickersham, when ques- tioned this morning as to what his next action, if any, would be, had nothing to say. He had said, in his original petition, that, if the City Council did not oppose the contract, an individual taxpayer could bring suit in court.
 Complete Resolution
 Here is the complete text of the approved resolution:
 Whereas, It has been suggested to the Council that it take steps to rescind the contract entered into between the City of Juneau and the Alaska Juneau Gold Mining Company, on March 2, 1913. under the terms of which a portion of the Company's property was ex- empted from taxation for the pe- riod of thirty years in return for certain consideration mentioned in the contract, and
 Whereas, such contract was au- thorized by a unanimous vote of the Council at the time it was made, and it has been acquiesced in by the City and every City Council for the period of 22 years, and the City during that time has been accepting the considerations mentioned in the contract, in lieu of taxes on the portion of the Company's property which was ex- empted, and
 Whereas, the matter of taking steps to rescind the contract has been submitted to the City Attor- ney for an investigation and an opinion, in order that the Council may have proper legal advice for it's guidance; and the City Attor- ney. in written opinion filed with the Council this day, has advised against the City's taking any steps at this time looking toward re- scission of the contract, for the reasons contained in said opinion,
 Now, therefore, be it resolved by the Common Council of the City of Juneau, that the report and opfn- ion of H. L. Faulkner, City Attor- ney be received and placed on file, and that the Council accept the advice and recommendations there in contained with reference to the contract between the City and the Alaska Juneau Gold Mining Com pany; and that the Council con- tinue to abide by the terms of the contract.
 Passed and approved this 21st day of December, 1884.