The Wrangell sentinel. (Wrangell, Alaska) 1909-current, 1939-02-10
Anchorage Times)

secretary Iekes' proposal for an 8
per cent tax on gold produced in
Alaska, have been written by Robert
Geehan and L. c. Doheny of this
city, setting forth that the measure,
il enacted, would revert many sec
tions now suitable for mining in
moose pasture.
Both men have been prominent IN
mining operations in Alaska for
some time Mr.. Doheny went at
length into costs OF operating in Al
aska, pointing out that there is no
possibility OF miners meeting such
high taxation.
Parts of his letter follow
At Cripple Greek all heavy
freight has to be hauled so miles
over the tundra of treacherous bog
/ lakes which We hope are frozen and
when We finally see a $4,000 trac-
tor dangling in deep water from the
end of a sled tongue-Well, that hole
wasn't frozen. Then there follows
week 10 10 days of rigging up and
I salvage in weather from 20 to 40
below.
The alternative to this method is
freighting at % cents per pound, by
] plane, from Anchorage. As a result
the average cost 10 date for freight
into the Cripple Creek camp is To-
plus cents per pound.
Then there is the freighting on
the kuskokwim. At Candle Creek
each ton landed at camp costs SAB.
The last eight miles of freighting
with a caterpillar ana go-deyils costs
$4S a ton.
Our basic wages at both camps
are the highest in Alaska, 81 4 cents
per hour for labor plus board which
averages $113 a meal.
We have our high priced plane
fares which add 10 per cent to cur
costs. We are liable for all our acct
dents and injuries with an extra
cost OF from 500 to $500 plane
j fares for each hospital case.
Compare the above cost item to
the placer mining in the States and
even at that We do not ask you to
/ be sorry for US, we do not ask you
to be fair. all we ask is that you
stop trying to wreck US with any
straight levy on gross production.
I'VE already pay taxes, the
federal Social Security, which
for the future life of our prop
critics will amount to two per
cent of our payroll. We also
pay three per cent unemplOy-
ment insurance on our pay
rolls to the Alaska Territory.
All told, this is a three per
cent plus on our total costs
that come ahead of labor, sup
J, plies, capital investment, and
ground charge-off. Add to this
the territorial tax of three per
cent on the gross production
! and we get six per cent right
off the sluiee boxes.
Your department is not respon-
sible for all these taxes at present
but laugh with us when you note
that these taxes come ahead of la
Dor So, my dear Mr.. Secretary, it
is possible that your dear people in
! the hinterlands, on relief, can get
cut of these taxes before the hard
working men here in Alaska get
their wages. Yet, let me hasten to
assure you that, up to the present,
this has not happened and we point
with pride to the integrity of the
small miners in Alaska.
Now you propose an addition
al five Der cent shaving off the
gross gold, which will leave US
only SO per cent of our pro-
duction to meet expenses. Thus
far, we have had something left
for the net income tam.man's
broad axe, but your guillotinc
not only kills that, it forces US
to gut out properties and leave
ground that was profitable pre-
viously but once passed by will
never ray separately.
! IF you were in control of the
banks would you suggest an eight
per cent tax ON every check and
transaction that passed through?
No, you would not, the lobbyist
would point out that the bank did
not own the money and that the
orphans and widows and even the
/ Secretary of the T. s. A. might have
his money there too.
I'm placer mining we have every
responsibility, for each cent of gold
that is concentrated in the sluice
boxes, that a banker has for the
funds in a checking account For
every bucket of gravel dug, we can
say there is some fraction of a cubic
yard which will average so many
cents in U. S. currency. Labor put
ting this dirt into the boxes is SO
I ~