The Wrangell sentinel., 1949-10-07
THROUGH
THE SENTINEL
PERISCOPE


trap tax battle this week. District
Judge George w. Folta held the
territory could levy the quadrupled
trap license fee but that it was
confiscatory to impose the gradu-
ated tax on fish caught in traps
which runs from the cents a fish
for over $1,000 up to % cents =
fish for over 100000.
Under the amended act passed
by the last legislature, the tax col
leetor can now collect $500 a year
on hand-driven or stake traps, used
to the Westward, and $1,000 a
year on the pile-driven and float
ing traps such as are used in the
Southeast. The $1,000 rate is on
the first three. From three to ten
it's an additional 5000 or $500
a trap; and an additional $1,000
for the tenth to the twentieth, or
$2400 per trap; from twenty to
fifty it's $4,000 a trap and $4,000
above fifty. Under the license fee
portion of the act now held valid,
the territory will collect about
S672,9OO a year on the basis of
the number of traps in operation
this season. For example, P. E.
Harris Company, which brought
the action against the measure, op-
Grated &c traps which, under the
act, would pay a license fee of
$4,000 annually but would not be
required to pay on the fish caught
in the traps other than under the
old law before amendment which
levies 81 a thousand on the num-
Der of fish caught in traps over
100000.
In throwing out that portion Of
the act, (Chapter IL Of the 1949
sessions laws) dealing with the tax
on fish caught in traps, Judge
Folta ruled 1t was in conflict with
the White Act which guarantees
right of fishery because the tax
was excessive to the point of be-
ing regulatory and the regulatory
power rests exclusively with the
federal government and not with
the territory.
The White Act of 1924 says:
mo exclusive right of fishery
shall be granted nor shall any
citizen of the United States be de-
MED the right to take, prepare,
cure or preserve fish or shell fish
in any area of the waters of Alas
ka where fishing is permitted by
the Secretary of the Interior"
The court held the tax on fish
caught was so excessive under the
enw amendment as to constitute a
denial or impairment of the right
guaranteed by the White Act by
prohibiting or interfering with the
use of a device expressly permit
ted by congress. namely the fish
trap.
In three cases taken to court as
the result of laws passed by the
last legislature, the territory had
come out on the long end. The in
come tax, levying 10 per cent of
the federal tax, was upheld in all
its features. The boost in fisher
mems license tax, to SIS for resi-
dents and $50 for non-residents
was upheld except in the case OF
halibut fishermen who fish outside
che three-mile limit where the ter
tory has no jurisdiction, and now
a $3.50 break on the fish trap tax.
Meanwhile, the territory's gen
eral fund picture was beginning Il
brighten. Treasurer Henry Roder
had worked out a deal with the
banks to take certain amount OF
territorial general fund warrants
at face value and hold them until
funds are available. This enable.
him to pay up a large amount oil
past due accounts, particularly re
funds to schools, and with money
coming in from the income tax
fish trap licenses and other sources
ii looked like the financial pic
ture would just about clear itsel
by late January.
II the consensus of those con
nected with the halibut industr,
from Alaska down the coast is ia
ken as the determining factor
there probably will be no spill
halibut season in 1860. This wa
indicated in statement made las
Saturday in Juneau by w. M
Chapman, special assistant to tn
undersecretary of state, at tn
hearing held there by the Inter
national Fisheries Commission o.