The Daily Alaska empire., 1945-02-24

hind. There IS no hlgh-grade ore in the Alaska Juneau, contrary to popular opinion, MT. Williams de- clared. There is but very little ore that can be used to "sweeten" the average.
 1 Speaking directly from the tax figures, MT. Williams stated that the Territorial taxes alone, paid during the year 1942 (when trans scribed into percentages of operat- ing profit, after payment of taxes, but before deductions for depletion and depreciation, had amounted to nearly 20 per cent-an increase from approximately 4 per cent in 1886 before the enactment of the per cent gross levy. During the same years total taxes paid by the mine, on the same calculating basis. rose from Is to 63 per cent of op- erating profit.
 Operates At Loss Toward the end of 1942, the mine began to operate at a loss, he stated, and in 1943 an actual loss of $83,000 was sustained from the operations, yet in that same year, S41 ,000 was paid in the form of 3 per cent gross gold tax to the Territory, plus an additional $30,000 in Federal taxes.
 Reopening of the Alaska Juneau Mine, Mir Williams concluded, will depend on what costs are. Had there been a gross tax on gold in 1913, there would have been no Alaska Juneau Mine.
 After the conclusion of MT. Will Hams testimony, during which Senator Walker made the dis closure that the A-J paid only about $1,200 annually in taxes to the City of Juneau, Prof. Harsch was again called to the fore. He was questioned by Senator Edward ID. Coffey in regard to provisions for taxing partnerships and the selections available to the taxpayer for use of joint or separate returns Prof. Harsch answered in the af- firmative when asked if the effects of wife would be liable under a joint return Former Federal In- ternal Revenue man, o. s. Sullivan, was also quizzed on similar points.
 Information Sought
 Senator Coffey also sought in- formation from the Professor re- garding returns on installment sales Of real property, pointing out that Senate Bill No. 12 had special provision for personal property sold on installments. Prof. Harsch re- piled that real property sold under such circumstances might be ex- pected to be provided for under administrative tions. The answer drew from Senator Cochran the comment that bureaus are fa- nous for their immense numbers of regulations having the effect of laws.
 MT Robertson's was again yes- terday the first voice to be heard from the gallery proper. He pointed a question at Prof. Harsch regard ing the omission, from the proposed Territorial Income Tax Law, of a Federal Code provision for the carrying over and back of operat- ing losses during a five-year cycle yIxsIn Tt. n -l~ stated, was put into the Federal law to secure more equitable ef- feet.
 Prof. Harsch replied that it had purposely been left out of Senate Bill No. 12 because of the low tax rates imposed, which were thought sufficient protection against any great injustices. In reply to another of MT. Robertson's queries, Prof. Harsch stated his opinion that persons employed by outside sources such as the Federal Government, and working within the Territory only for short periods, would be subject to the Income Tax only if they were actually assigned to stations in Alaska. Such problem IS ordinarily so decided by regula- tion, he said
 Following the brief questioning, Prof. Harsch made a brief state ment to the effect that his esti- mates of returns from the Income Tax, given Wednesday, had taken into account the great decrease in gold mining in Alaska since l941, the year on which he had based his calculations. That point had been emphasized in previous in- terrogation of mining industry wit nnSSpS