The Daily Alaska empire., 1949-06-18

fCltA tnlS morning grauteO
 temporary injunction restraining
 Tax Commissioner M. P. MuIlaney
 from collecting fish trap taxes,
 ss increased under the lS49 law,
 from F. E. Harris and Company
 and three partners in the Mutual
 Trap Company, intervcnors.
 Whether or not a temporary in junction shall 1e issued. restrain ing the Tax Commissioner from collecting increased fishtrap taxes from two Seattle concerns. was put up to Judge George w. Folta late yesterday afternoon.
 w c. Arnold argued for P. E. Harris and Company, plaintiff in the original suit, and for the inter- yenors, August Buschmann, w. Laurence Freeburn and A. P. Wolf. oopartners in the Mutual Trap Company,
 Arnold presented showing which was uncontested, of irrepar- atle damage because of the Terri tory's insolvency, should the tax be paid and the law later be deemed invalid; he claimed the companies would be subject to criminal action and possibly civil action involving seizure and con- fiscation, should the tax not be paids and he argued the lack of a plain. adequate and speedy remedy at law.
 He pointed out that. for a hear ing on temporary injunction. only the showing was necessary. whereas proof must be made at final hearing for permanent one. The action also attacks the validity oi the law in Chapter II. Alaska Session Laws. l949.
 Citing numerous precedents. At torney General J. Gerald Williams argued for the Tax Commissioner and the Territory, his chief con- tention being that injunctive re- lief should not be granted because ir would hamper the function of government.
 While we do not consider that an injunction should be issued at all." said Williams. they would te ill better position if they came in saying they would pay the mirli- mum tax, then seek an injunction"
 Arnold claimed the Harris Com psny already has paid $21 900 for 1e49 licenses under the previous law, and been dunned by Tax Commissioner M. P. Mullaney for s61 900 more. The estimated tax on Harris Company fishtraps for l940 is approximately $l32,000
 The attorney general maintained that the remedy at law could not be declared inadequate because plaintiff and intervenor declared the territory insolvent. and that public policy requires that injunc- tions not be issued to restrain col lection of taxes.
 Co-counsel for Harris firm are Frank L. Mechem of Seattle and III L. Faulkner of the Juneau firm of Faulkner, Banfield and Boochever, while Edward w. Allen of Seattle and R. E. Robertson of Juneau represent the Mutual Trap Company with Arnold. who also is executive manager or Alaska Salmon Industry, Inc.
 With the taking under advise ment of this case. Judge Folta now has three decisions to hand down affecting major tax legislation passed in the l949 session.
 He is expected to rule on the suit of the Alaska Steamship Com pany vs. the Tax Commissioner challenging the new net income tax law, before leaving Friday for the annual conference of Ninth Circuit Court judges in Los An- geles.
 The other decision is on validity of the increased license fee for nonresident fishefmen. on a friendly test case brought by Att torney A. H. ziegler of Ketchikan. representing two Seattle masters of halibut vessels and Ketchikan processing firm.