The Daily Alaska empire., 1945-02-22

] exhausted theresources of the Terri tory.
 Severance" Taxation
 MT. Arnold asked; Then it's severance taxation?"
 Reply: Yes"
 Clinton w. Stein, of Juneau, asked if Prof. Harsch thought the gross tax on gold and platinum was fair as between the different Divisions of the Territory, considering the differences in mining conditions? Prof. Harsch answered. That how the law was originally framed was not his business; that the existing law had been adopted into Senate Bill No 12, without change; that ne would not try to pass on the judgement of the Legislature that originally drew the law; that he had simply adopted it." Senator Cochran asked: Aren't you forming an equitable tax struc- .ure?" To that Professor Harsch
 eplied that fiscal considerations had to be taken into account, also.
 Mir Robertson returned to the questioning. How does the sev- srance' theory of taxation apply to the retaining of the pack tax on salmon?'he asked. There is a con- tinuCus flow of salmon, which is merely harvested, like any other crop"
 Prof. Harsch replied: There are arguments pro and con as to that. It is necessary to continue the Terri torys major sources of revenue"
 There was no further questioning of Pro. Harsch He was followed to the stand by MT Johnston, who wished to convey the opinions held by his Miners organization on the proposed tax measure
 Double Tax
 He declared: "The mining indus try objects strenliousIy to being double taxed The gross gold tax has never been liked. It is not con- sidered equitable.9 t
 The gross tax, he said, hit hard est at low-grade and new operations. The proposed bill would be a double blow at, the expansion of mining in the Territory. because the bulk of prospects for expansion are in the low-grade field High-grade' ground is already Being, or has been, work ed
 Mining At Low Ebb
 The mining industry, he contin- ucd, is now dead" Rehabilitation of the industry is more immediate prospect than development The industry has lost a great deal of eTeuhd that it will take several years to regain. Equipment has been .equisitioned by, or sold to the Gov ernment to aid in the war effort. It must re replaced
 The gross gold tax is definitely deterrent to the recovery of the in- dustry, which is to the interest ot all the Territory, he concluded
 Asked by Senator Coffey if he be- lieved that the Alaska and other hard-rook mines, such as that at Chichagof, could have been develop ed had. the gross tax then been in effect, MT Johnston replied that their development would have been much more difficult.
 Senator Cochran asked Mir. John ston if he had heard that Secretary of the Interior Iekes had wired a mandate that the gross gold tax be raised to per cent.
 Questioned about the effect of the increase in the price of gold from $29 to S35 an ounce, the witness pointed out that not all the bene- fits of the increase were received by mine owners. The main effect of the increase was to widen the pay streak, he declared.
 Senatcr Coffey querried: Then increases in the price of gold in- creases the resources of the Terri tcry?"
 Senator Grenold Collins asked about increased production costs, es- pecially eilcse due to the war per jed. Mir. Johnston answered that inflation in tEe cost of labor, sup plies and equipment for mining has amounted to from 35 per cent to 40 per cent since 1899, the last nor nal year. n gore s3a
 Senator Collins asked: Then heavier tax loads force a narrow ing of the pay streak?" Answer: fThey operate automatically to that end" N
 The Committee of the Whole arose, to report progress"
 It was stated that among witness es waiting to be heard was J. A Williams, General Superintendent of the Alaska Juneau Gold Mining Company