The Daily Alaska empire., 1949-09-08
HEARING OPENS
 ON COLLECTION
 OF FISHTRAp TAX

VI uISuuuNAr IAH
 Although counsel for both par ties had held pre-trial conferences in an effort to shorten formal court proceedings, the opening day of the fishtrap hearing gave no in- dications of brevity. However, sev- eral agreed stipulations came out of the August 26 meeting, and cer- tain records were directly entered in evidence therefrom.
 The hearing on merits opened at 10 o'clock this morning in District Court before Judge George w. Fol ta. The suit was brought against Tax Commissioner M. P. Mullaney by P. E. Harris and Company oi Seattle, with August Buschmann w. Laurence Freeburn and A. F Wolf, copartners in the Mutual Trap Company, as intervenors.
 On June Is, Judge Folta granted temporary injunction restraining collection of the taxes, as increas- ed by the 1949 Territorial Legis- lature.
 w. c. Arnold, counsel for both plaintiff and intervenors, opened the case, summarizing points of the complaint, which asked a per- manent injunction against the tax collection, and that the measure. Chapter II, A.S.L. 1949. be ruled null and void.
 Operators Open Case
 Attorney Frank L. Mechem oi Seattle opened the case for the fish trap operators, pointing out that plaintiff and intervenors hold the new tax law to be an unlawful bur den on interstate commerce, un- reasonably discriminating between fixed and mobile gear and between operators, and such as to increase the cost of operations to the ex- tent of forcing closure, also that the retroactive provision is invalid E. M. Brennan, vice president and general manager of the Harris firm, was the first witness called He testified as to his 31 years ex- perience with the company, and tc trap operations and catches. His evidence was entered that the company had made substantial season commitments and paic $21 ,250 in l949 licenses fees before January l. 1949. and that, had Harris officials known of increased taxes, the company probably would not have decided to operate, un- less to liquidate it's inventories" Cross examination by Attorney General J. Gerald Williams brought out facts of fishtrap costs and maintenance expense.
 Attorneys estimate the hearing will take at least two days.
 Tax Measure
 The tax measure, approved Feb ruary 21, 1949, raises the flat tax on standing and floating fishtraps from $500 each year to $1,200. ant increases the catch tax on gradu- ated scale starting at five cents g fish for a take of l5,O0l to 50,00t and going to 25 cents a fish for g catch of more than 100000.
 The new fees are graduated alsC as to the number of traps operat. I ed.
 Co-Counsel for the P. E. Harri: and Company are Attorneys Me chem of Seattle and H. L. Faulk. ner of the Juneau firm of Faulk- ner, Banfield and Boochever, while Attorneys Edward w. Allen of Se- attle and R. E. Robertson, Juneau represent the Mutual Trap Com pany with Arnold. who also i: executive manager of Alaska Sal mon Industry. Inc.
 Attorney General Williams ant Assistant Attorney General John H Dimond represent the Territorial Tax Commissioner.
 Among interested parties hert for the trial are Buschmann anc Wolf of the Mutual Trap Company Harry O. Low, superintendent ol the Harris Company's False Pass Cannery; Walter Sharpe, assistant manager of Alaska Salmon Indus try, Inc. and several accounting experts who are expected to be called as witnesses.
 This is the third tax measure passed by the 1949 Legislature tc be challenged in this court. Int others were the income tax anc the increased license fees for non ! resident fishermen.