The Daily Alaska empire., 1949-03-19
TEA(HERS' PAY RAISE
 IS PASSED
School Construction Fund, Loan to Veterans 5 Fund
 Also Voted by Senate

f Alaska teachers and school super intendents under the Territorial School System will get flat pay increase of $500 year in all brack- cts under the provisions of a p.ll which has now passed both the Rouse and senate.
 The bill passed the Senate unapi- mcusly last night after two att tempts by Senator McCutcheon to boost the increase were voted down.
 Senator McCutchecns first amendment to make the increase $500, lost by vote of 3-12 His second try, to make the increase s4c0, was voted down by the nar- rcwed margin of 6-9
 Finance Committee Chairman John Butrovich said that the $500 increase will cost the Territory s240,0o0 during the biennium.
 'The Legislature raised teachers salaries $400 in 1e46 and $500 in l947," Senator Lyng pointed out. T think the $500 provided by this bill is about sc far as we can go at present"
 For School Buildings
 A House bill to appropriate the sum of s2,250, GOO for construction of schools in the Territory during the coming biennium was also passed unanimously by the Senate after an amendment to cut the appro- piiation Of Sl.500000 was lest on an e-8 vote.
 l Senator John Butrovich. in offer ing the amendment. pointed out that the tobacco tax bill, which has also passed both houses, is earmarked for school construction, 65 per cent Of revenues for the building of pub- lie school, the remainder for the | University of Alaska construction program.
 Senator Butrovich estimated total revenue from the tobacco tax at one million dollars during the hiennium.
 Senator Rivers strongly opposed any cut in school construction funds, pointing out that there has been no new building for number of years.
 T don't doubt the need for schools, but if we go too strong on these appropriations we will be back here next year in another special session to pass more tax bills,7 Senator Butroyich responded.
 For Veterans Fund Earlier in the afternoon the Sem ate had voted 15-1 to appropriate $l 100000 as a loan to the World War II Veterans Revolving Fund. Senator Rivers cast the lone dis senting vote.
 Veterans Commissioner Floyr. Guertin appeared before the Senate to explain the necessity for the loan, which is to be made at the rate of S50.000 at the beginning of each month and to be repaid in
 
 five years.
 Guertin said that the Veterans Board has estimated that $2,l55. .0O0 would be required to meet all loans and bonus requests. He said, how ever, that the $50,O00 a month should keep up current requests.
 Outright losses do not exceed three or three and half per cent, as compared with bank losses of one-half to one and half per cent, Guertin said. Administration ex- rereses. he thought, would run about $80.0OO a year.
 The graduated license tax on power fishing vessels under one ownership, contained in House bill 24, was tabled by the Senate by 9-7 vote. The bill provides tax graduated from sl up to $5,0OO per vessel.
 Also tabled. by a l3-2 vote, was Rep. Taylcr's bill to provide for Idding or eliminating territory to municipalities without requiring vote of the people living in the affected areas.
 H.B. l09, to waive payment Of Sll,000 worth of Wrangell school bends, was passed by the Senate after Senator Rivers had explained hat the city of Wrangell has paid he Territory a total of S54,320 in principal and interest on the ori- }inal $40,000 bond issue.
 A House bill providing compensa- ton for members of the Board of Regents of the University of AL aska while they are attending meetings of the Board, and House memorial asking that Con- sress amend the Organic Act to lllow Territorial legislation on di-