The Daily Alaska empire., 1937-01-14
THE GOVERNORS MESSAGE TO THE THIRTEENTH ALASKA LEGISLATIVE ASSEMBLY
 SUBMITTED JANUARY IA, 1857
To the Thirteenth Alaska Legislative Assembly:

 To the Thirteenth Alaska
 Legislative Assembly,
 The Governor is required under the Organic Act to make suggestions to the Legislature recommending egs laton This an attempt comply with that require ment You will have detailed reports from the various Territorial offices and boards containing detailed nforma ton as to the state of the Territory and the information which you may need in your work commend those reports to your thorough and thoughtful attention am senog m with this message copy of the message that It was my privilege to submit to the Legislature two years ago which l wish you would consider Tn connection Wlth this
 Conditions in the Territory incomparably improved over those that existed two years ago This IS due m large part the extraordinary expenditures by the oV ernment Public Works and for relief to those Tn need The from depression conditions throughou the country including Alaska is contributing to our improved situation called attention ot the Legislators two years ago the expectation of help of the Federal treasury through Public Works for the succeeding two years me Federa Government had already ntimated very plainly local should aid in carrying on Pubic Works and that the Federal was planning to reef ee in large degree from it's direct relief and work reeI @ leaving that to the local Territory, State and Munlclpal governments The Federal Government has alreaay prac tcally retired from relief direct and work except as is provided in regular Public Works projects The tune has when the Territory must find further sources @ of income in addition to those which we now nave or abandon much of the welfare program
 Of course must continue to be our watch word. We cannot afford to OvertaX industries mat we now Overtaxation would discourage investment of capital in natural We must depend upon further development to produce more empoyent ana to add the Terrtorys population However, the demands on government from the people have become greater on account of the greater activities of the last admnlsta tion National and Territorial We cannot return to the old attitude survival of the ttest with the consequent threat to the hindmost.
 At the present time the fisheries industry is bearing the burden of taxation and casting about for further sources of the mind naturally turns first o all to the mining industry, the second most important of the Terrorys industries. Mining has prospered during the last two years due in most part to the increase of the value of gold The of gold value from $2O67 to $3500 an has made gold mining more profitable than it had been for many years It would be only fair to have that industry carry part of the increased tax burden clearly indicated necessary The tax OH the fisheries industry is tax gross production That on 0oldn min is net - | believe arrived when this discrimination should cease Net income taxes open the door for deception It gives too much I believe the Legislature should allow beraly for tod m th ne However reinvested money capital investment 1 believe we should exempt rom taxation on each mine or prospect enough money permit the prospector bring his property to profitable opera tion The amount of this suggested exemption one that the Legislature better prepared ed to than indicated in the following communication from the lerrl- toral Treasury:
 Honorable John W. Troy
 Governor of Territory of Alaska
 Juneau Alaska
 Dear Governor Troy:
 In reference to your message to the coming
 Legislature, am herewith submitting the fnan-
 cial condition of the Territory of Alaska at the
 close of business December 31, 1856.
 The net cash balance of the Territorial Treas
 ury as of December 3l, 1886 was $4os,85sn
 which shows a material increase over previous biennial reports, notwithstanding the fact that
 the Territorial Treasury was deprived ot ia approa iossd
 mately S5OOUOO Tn pacK taxes que to IHe Clooeu
 fishing season in the Bristol Bay during the
 year 1885.
 In addition to the net cash balance as of
 December 31, there $178,600 in United States
 bonds drawing 3a5k interest and S4o,ooO in
 Wrange School bonds drawing 6ao interest, mak-
 ing total cash and bond balance of $62745871
 The delinquent taxes due the Territory have
 been reduced $1OO00 from the last previous biennum.
 The payment of all delinquent taxes due the
 Territory for the last bennium will be paid at
 early date.
 Very truly yours
 (Signed) OSCAR G. OLSON
 Territorial Treasurer.
 PUBLIC WORKS
 call your attention to the benefits which have been derived by municipalities States and Territories in pubic construction through cooperation with the Puolc Works Administration by obtaining loans and grants or grants only from the Administration
 At the present time the Public Works Admnlstratlon is making grants in the amount of 45% o the total cost of projects and loans in the amount of 55 of the cost of the project with preference given to applications TOT l l A l; i 4o4: i fl