The Daily Alaska empire., 1949-02-16
REGULATORY TAXATION IS. HOT SUBJECT
Deb dtes Con- fis1dtory' Trap Tax and
 Sail Boat Tax
By BOB DeARMOND

By BOB DeARMOND
 Two fishery tax measures, both admittedly as much regulatory as revenue-producing in character, had another airing before the Sem ate this morning and neither, at the beginning of the noon recess, had advanced an inch on the cal- endar.
 House Bill 4. to increase trap license taxes and excess catch lev ies, brought one of the warmest Senate debates of the present ses- sion with Senator Butrovich label- ing the proposed tax "confiscatory' and Senator Rivers contending that the Bill is the answer to a man date of the people on both traps and taxes"
 According to estimates of the Tax Commissioner this Bill would collect nearly five million dollars more from traps during the coming biennium than the total for the past tiennium," Senator Butrovich said. That seems like pretty rough deal at this stage of the game and I couldn't support it.
 RECOMMENDS HOLD-OVER
 Senator Howard Lyng recommend ed holding the Bill over until the Seth day of the session and Sena- tor Butrovich agreed. We will have a much clearer picture of the over all tax picture by that time," he said
 Senator Barr put the suggestion into motion to refer the Bill back to a joint session of the Taxation and Finance Committees for revis- ion.
 Senator Rivers heatedly opposed the motion, demanding an immedi- ate vote on the Bill. This Bill is being handled as many such Bills have been treated in the past and it will end with making almost no raise at all in the present tax" he charged.
 He added that if the present Bill is defeated he will bring in another Bill that will raise substantial reve- nues.
 BILL IS FANTASTIC"
 Senator Andrew Nerland called the present Bill fantastic and urged that it be held over and reduced to reasonable" proportions. Senator Anderson said that he could not vote for the present measure.
 T now agree with Representative .Essie Dale that the Legislature is ganging up on the salmon canning industry" Senator Lyng announced. T did not believe it at first be- cause did not desire to do so, but measures like this one are pretty convincing proof that she is right"
 The canning industry will pay the income and property taxes, which gre new, as well as pack and other taxes they have always paid, Sena- tor Lyng reminded his colleagues.
 Leading the opposition to thel move for postponement, Senator Rivers said he does not believe trap taxes have been increased since 1923 and asserted that the canners made a net profit of $25 5,000,0 900 in the past biennium.
 ELIMINATE HALF
 Senator Rivers said he estimates that the proposed tax would elimi- nate half the present traps but at the same time would Ering in 10l times the present revenue from those remaining, thus fulfilling what he called mandate from the people on traps and taxes"
 He denied an allegation by Sem ator Munz that the proposed tax would amount to 1900 times that previously collected on traps.
 Even with this tax, trap-caught fish would be landed on the can- nery floor at half the cost of seine caught fish, Senator Rivers claimed.
 Senator Peratrovich took up the battle on the behalf of the new trap tax. "The senators are only seeing one side of this picture, and from that side it is easy to believe that the canneries are being victimized," Senator Peratrovich said.
 PROFIT AND LOSS
 Senator Peratrovich drew up for the senators profit-and-loss state 1 ment showing net profit of ap- l proximately $48,000 year on a hypothetical average" trap.
 Using an average catch of 60,000 !, fish. producing 2,857 cases of canned i salmon with a selling price of s24.50 per case, he deducted $15,000 for
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