The Daily Alaska empire., 1949-01-11
Russia Is Aiming at War Says Robert Louet
Three pronged Basic Tax Program Urged by Governor
 In Message 10 Legislators


 posed to special session of the Alaskan Legislature today three pronged basic tax program in the face of an Alaska deficit which he said exceeds $2,000000
 He said in message prepared for a joint House Senate session that recommendations of taxation experts are: A graduated net in- come tax for corporations and in- dividuais, property tax and equit- ahle trade-license tax.
 Income and property tax mea- sures have already been introduced in the House.
 The Governor declared. Tt is cry clearly the responsibility of his legislature to tackle the situa- ton vigorously That mandate was enthusiastically g'vsn to you by the | people of Alaska.
 System Is Patchwork
 Criticizing tho Territory's tax ation system as patchwork, he said experts studies dating back to 1888 found them pretty well agreed" on basic measures. Gruen- Ing said the analysts found the tax structure bore no relation | sither to financial capacity of he Territory, to its needs for rev. enue or to possible fluctuation in it's income.
 In estimating the two-million deficit, he said it took into ac- count not only a general fund de- ,icit of $785 ,209, but also expendi- lures which were frozen and re- payments which had been demand sd from the World War II Vet erans' Fund.- He said it did not include over million dollars in cars and bonuses to which vet ,rans are entitled ur.der the vet ,rans' act of 1946.
 Session Justified | Schools, the university, public welfare and social services are all suffering from the financial pinch md the special session was justi- lied as a means of bringing the earliest possible remedy, the Gov rnor declared.
 Gruening continued: Those rev. nues which are procured by &C., sion of this Legislature will start flowing into the treasury at the earliest possible moment With the short special session rectifying past omissions, the 18th Legislature can apply the qualities of statesman ship throughout the regular session 0 the problems and opportunities of Alaskas future
 I Credit Impaired Il The Territory's credit and repu- tation, he asserted, are impaired by a wide array of bills which cannot be paid.
 Some organizations and indivi- duals represented by these claims are facing actual hardship because ,l of the inability of the Territory to T pay it's bills the Governor said I Emergency Grows
 The emergency is still growing, he continued, although Territorial agencies have held their spending to a bedrock minimum" The sit uation is aggravated by the fact that government costs, like others, are rising, Gruening said. l He declared the responsibilities of approaching statehood and the proximity of Russia make it doubly important that the legislators put Alaska on sound financial basis and increase it's public services. I Cold War
 The Governor concluded
 Alaska should become shin ing example in these northern lati- tudes of what the American way tof life should and can be, That re- lmains to be done. Y
 Across Boring Straits another way of life which contrasts wholly with the American ideals of free- dom is strongly entrenched and active in the pursuit of its goals. "In the cold war of ideologies, Alaska should become the bulwark i. not merely of physical defense, but of the American idea The GoEernor's message was de- livered before crowd that filled the small House chamber and over flowed into corridors. After hear ing the message. both houses ad- journed until ? p. m.
 First reaction from legislators : from both parties was that much of the Governors message was a l reiteration of Gruening's previously , taken position, but that there is , a strong prospect of the Legisla- ture following his suggestions this