The Daily Alaska empire., 1948-03-17


 atey noted that the cost of appraisal and collection potential tax yield.
 Under similar circumstances, controversy in voving the tax gold mined in the Territory demon- strated that the legislators could and would enact acceptable tax legislation
 The two houses passed net-tax bill on gold to correct inequalities in the gross tax But this was contrary to Cruening's wishes.
 He vetoed the The legislature promptly enacted it his objection.
 Few citizens will quarrel with the many arguments in favor of reorganized system for the Territory including levies income well real property
 But the system must consist of equitable tax laws and there must be guarantees that the tunos thereby added to the treasury will not be wasted.
 The biennial appropriations for support Of the Territorial government have increased from $35l5lO n the 19394O spending period the last before Gruen- ing took office to record s8476309 appropriation by the last session.
 In view of these figures, which do not include many special appropriations, the reluctance of the ,eoples representatives to pour increased in the Alaska treasury is perhaps the more understand able.
 Gruenings continual controversies with the leg islature cannot be ascribed to party politics In each session. except the last the composition of the leg stature was overwhelmingly Democratic.
 In the 1941 legislature, for example, there were only two Republican members.
 NOT can the governor claim that his failures were due solely to the opposition of a small group within his own party comparison will show that the complexion of the legislature has undergone an almost complete turnover since he took office
 The plain explanation is that the governor has insisted on HIS program and otheras in the case of the Consolidated School District Bill vetoed at the end of the 1945 session. The people of Alaska now find themselves caught in the stalemate between Grtening and lawmakers who refuse him the unques- tionng obedience which he demands.
 In his relations with the legislators the governor has ignored the fact that they are the elected rep resenatves of the people and until proven otherwise must be presumed to be carrying out the wishes oi the voters who placed them in office.
 It has been his practice praise the actions and motives only of those members who supported his precepts while denouncing bitterly those who opposed him.
 The conclusion is unacceptable that Gruening has tried to the power and prestige of his office and the resources of Federal government to transfer to himself the initiative and law-making powers Of the citizens It is the hallmark of all New Dealers
 And the governor has achieved no more success in his dealings with the commercial enterprises upon whom the Territory must depend at this period ln it's history for the bulk of its investment capital and payrolls needed to support the inhabitants.
 There can be no doubt that his demands for steadily increasing taxes on the enterprises alreaoy in the Territory and his attempts to stir the people against absentee have had their costly effect in discouragne the risking of capital in Alaska
 Absentee ownership is not in the history ot the development of United States Territories De- trot Chicago Cleveland and entire Mdwestern areas were financed by Eastern banks for before they earned control of their own financial destines The Far West and the Pacific Coast depended upon H. nancng from institutions further east in their early stages. ~
 Alaska, if it is to grow, must have new capltai and new enterprises. It must have governor who has the foresight appreciate this necessity ana who is able inspire the confidence that VIII ora" the added commerce to the Territory.
 Gruenng has made an issue of Statehood for Alaska Like most Alaskans for statehood at the proper time But recognize that statehood will not provide an automatic cure-all for all the Terri tory's ills.
 We believe that before we consider assuming the tremendous responsibility and financial burden which statehood will entail we must set Territorial house in order.
 As the first in so doing, we suggest that the Senate Committee Interior and Insuar Affairs reject without undue delay President Trumans nomination of Ernest Gruening for another term as governor of Alaska.
 AUSTIN E. LATHROP ,,,roos aoopop,ic ible into dollars The Army has