The Daily Alaska empire., 1950-06-10
INCREASED FAXES
 NECESSARY TO MEET
 TERRIT0RY'5C0ST5
Henry Roden Tells Sorop- timists of AIdska's sFi-
 ndntiaI Condition

who Knows to find out about The Financial Situation of the Terri tory" and it was Henry Roden, Ter ritorial Treasurer, who addressed the group on the subject at its luncheon Friday in the Baranof Terrace room.
 Introduced by Mrs Mildred Her mann, MT. Roden gave members of the women's club picture of the Territory's finances at the time of his appointment as treasurer year ago, the history of financing the Territory during the last year and told what could be expected when the legislature meets in 1851 as to increased taxes.
 Tt didn't take me long to find out that our financial situation was critical" Mir Roden said. There was no cash in the treasury and bills had accumulated until we had no credit We were hardly able to keep the Pioneers Home open.
 When we went to the banks to borrow money, we found, in some instances that politics were involved and we encountered certain diff culties. However, we were able to borrow half a million dollars with out interest. by agreeing to freeze $5,500,000 of funds appropriated by the last legislature"
 The Board of Administration has made available only such funds as are absolutely necessary for the running of the Territory. MT. Ro- den said.
 And this practice will continue" :" he added, with the possible excep- tion of advancing some funds for the builolng of the Territorial of- flee building in Juneau"
 Revenue Not Sufficient
 So far, anticipated revenue is not sufficient to meet the Territory's anticipated expenditures, MT. Roden said, "As long as this is the case, the Board of Administration will hold down expenses to a minimum"
 By February l of this year, when the money was due, the Territory had paid the funds it had borrowed from the banks.
 Credit Established
 A month ago MT. Roden attended the territorial bankers convention in Anchorage and accomplished two purposes by his appearance before them. First, he established the Ter ritory's credit and second, a rate of interest at percent was established for territorial loans.
 With the Territory's going costs of operation-schools. salaries, welfare, Pioneers Home. University of Alaska amounting to $750.00O a month, the Territory is running behind monthly, MT. Roden said.
 The Tax Commissioner and the legislative finance committees dur ing the last session of the legisla- ture had figured income from terri torial taxes to be about $24.OOO, ,OOO for the biennium and the Territory's budget was based on this figure.
 From April l, 1949 to April 1, 1850. the income was about $8, 500, ,0OO but of this earmarked funds from the gas tax (about $1,750 00O for the biennium) and the tobacco tax ($500. 900 earmarked for the con- struction of schools) cannot be used for general territorial costs.
 While anticipated revenue for the current year, April l. 195O-April 1, 1851, is $10.OOO,O ,O0O, it might, in turn be less than last year. MT. Roden said.
 Last year the fisheries paid a tax of 2 percent of the total value of the pack. But pink salmon last year brought $23 case and today the wholesale price is $14.50," Mf Roden said. And there is question also of some canneries not operat- ing this year."
 Income tax is expected to be the Territory's first source of revenue, the canneries next and liquor taxes are third. the treasurer said.
 Increased Taxes
 How to meet the increasing cost of government? To do this MT. Roden suggested the possibility of an increased gas tax. Now 2-cents. the gas tax could be raised to B. cents or Accents.
 Should the general property tax be upheld, once the cost of setting it up is overcome. this should pro- vide considerable income If we can find a proper and economic system of collecting it." MT. Roden said.
 Continued on Page Three)