The Daily Alaska empire., 1949-02-15

gear, $7,2O0 for the boats share and
 s6,oo0 for operating expenses, leav- l Ing $4580 for each of the five-man 1 crew. .ss{.a The owners share, he reported, came to $1l,780. of which $1250 {, went for repairs to the vessel. $149O ] for insurance, $l600 for interest and ; Sl20O for income taxes. Calculating
 other actual expenses and taxes
 that would be levied if all tax i measures so far introduced are en-
 acted, he arrived at a final fig i ure of $5,570 as the seascn's earn ings of the owner with $30,000 investment in his vessel.
 i You have figured in all the pro
 posed taxes Do you think all of [ them are going to pass?" Senator i Brtrovich wanted to knew :. ~
 Fitzpatrick said that he hasn't | seen anything to indicate that they 7 will not pass.
 He went on to compare prices { of gear and supplies at the present
 time with those of 1943 and to com part fish prices in l943 and 1948, al of which lead to his stated con- 1 clusion that the fishing business is net in 2 healthy condition"
 DO you know any business in Alaska that is in healthy condi- i tion.7 Senator Barr wanted to know. : Wanted Alternate Clause : Fitzoatrick said that bcat owners would like to have the marine al- ternate clause" adopted T think ] you should give Us another shot at it. he said The clause, reject 1 ed by the Senate, would have pro- ! vided a flat tax of $4 a net ton on vessels.
 ! No other witnesses offered to come forward and Senator Rivers, remarking that only one side of the
 matter had been presented and that many people who haven't bksn 1 getting their relief checks or their ] paychecks have urged passage of
 the property tax" called Kenneth
 Kadown and George Sundborg to state their views.
 There are two types of capital ] in the business world today" Ka- dow told the Senators. 'The old | type feels no obligation to anyone i except the stockholders. On the
 other hand, enlightened capitalism,
 which is our only hope against some of the other 'isms, recognizes | that there must be taxes and is i willing to share its share of the burden"
 Fights Overtaxing Kadow said that Big Business to- day is generally willing to assume reasonable new taxes but it flights the general tendency of Democra- cy to eat its head off" by adding to the tax structure.
 The proposed 1o-mill tax is not exoribilant and is in fact very 1 low tax, Kadow asserted 1 Senator Rivers wanted to know i about the possible effect of taxes
 on new businesses proposing to come to the Territory.
 "They always ask about the tax I structure" Kadow admitted. Tt
 should be flexible enough so it can
 be used for bargaining with them.' He said he does not believe any 1 industrial development is being
 frightened off by the proposed i property tax.
 1 Although the tax may seem high l because there have been none at ali up here, it is actually ridiculously low; don't know of any place in the world where they have such low tax rate" Kadow said. He came in for some sharp ques- l tions from Senator William Munz 1 befcre leaving the stand.
 How long have you been in Alaska and how much taxable property do you own" the Senator wanted to know Kadow said that he had been here about six months
 and owns no property in Alaska. | George Sundborg reiterated state ! ments by Kadow regarding the low rate and the fact that the propos- 1 ed tax will Rot be an obstacle 10 development.
 Tt is clearly evident that the 1 lack of taxes hasn't made Alaska
 athumming center of industry and even the 10-mill tax will leave the
 Territory the least taxed area of ] the United States Sundborg de-
 clared.
 i The tax bill was held over for
 another day to give R. J. Jern-
 berg and L. O. Gore, representatives for the Ketchikan Pulp and Paper
 Company, an opportunity to study | amendments that have been made
 to it. It was to come before the
 Senate again at ? p. m. today.