The Nome nugget., 1939-01-11
Fayors } Years E xem mption
 From Gold Tax
MINING ASSOCIATION URIC ES OUTPUT FOR FIRST THREE YEARS BE FREE OF TAXES

Notifications of exemption clauses in laws affecting the gold mining industry are advocated by the Alaska Miners Associa- ton of Fairbanks.
 Exemption for all production taxation for the first three years of operations, fixing the regular annual exemption amount at $2O,0O0 and allowing to placer gold mining the eight-hour day throughout the working season are urged in a resolution that was adopted at the recent an- nual meeting of the association.
 E. N. Patty, president and A. A. Zimmerman, a director of the association will confer with sem ators and representative of the Alaska legislature with a view of having them exert efforts to put the views of the association into law
 The annual election of officers was postponed until the next meeting.
 At yesterdays meeting, which was held in the council chamber of the city hall all but a few of those present favored in principle a graduated net income tax on gold production instead of the present per cent gross output tax.
 Luther C. Hess, former presi- dent of the Alaska Senate, de clared that in his opinion the net profit tax was by far the fairer. He cited an instance of where a company had to assess its stock holders to pay the 3 per cent gold gross tax, it having pro- duced in excess of $10,000, the present exemption amount, with out having made profit.
 MT. Patty said the criticism of the net income tax might be ob viated by enactment of a terri torial law compelling operators to file with territorial officers at the time of the payment of the pro- fit tax a copy of their return on production that had been made to the federal government.
 This was done in California, it was said
 Lou D. Colbert, while recogniz ing the greater justice of net in- come tax principles, declared the Democratic party, whose mem bers will control the legislature, is committed to the 3 per cent tax on gross output. He thought l the association should limit its efforts with legislators to get other needed changes in mining laws.
 He urged the exemption amount be raised from $l0,000 to $20,000, advocated that all output for the first three years of opera tions should be exempted from production taxes, and opposed any law designed to conserve precious metal deposits in the ground by curtailing the devel- opment of the Territory's miner al resources.
 He cited the Canadian policy, which relieves the mining indus try of any production tax for the first three years of operations.
 MT. Patty favored the first 3 year exemption policy, and so did Jack Lejer, Sam Stay, Roy Fer guson, Frank O'Farrell and Char les Strandberg.
 Adoption of this Canadian pol icy, it was argued would incou- rage mining undertakings, would increase gold production in the Territory and thereby add to gov ernment revenue. These effects, it was pointed out, have been ex- perienced in Canada.
 Senator C. H. (Alabam) La boyteaux favored raising the ex- emption amount to $20,000, and opposed "conservation restric- ton" on the development of min eral resources. He thought that the legislators might exempt all first-year operations from taxa ton, but he had misgivings about a three-year exemption as in