The Daily Alaska empire., 1950-03-14
'Epoh- h-Making' Basic Tax
 Laws Enable p!ow.Baek of
 Alaskan Wealth: Grueninq
By VERN HAUGLAND

Several of the largest absentee corporations affected thereupon obtained intunctions against col lection of the new levies, Gov, Ernest Gruening said in his annual report to the Secretary of the In terior.
 Because of this and the open invitation it comprised to other tax ] payers to Haunt the new laws. Ter ritorial tax collections immediately suffered Gruening added.
 However. the first court battle went in favor of the Territory, when the US. District Court in Juneau upheld the legality of the Territorial income tax" The 18th Territorial Legislature, in a 77-day session early in 1949, adopted an income tax equivalent to | 10 percent of the federal income tax, 1 percent property tax, and business-license tax.
 30 Percent Liquor
 Gruening said these were basic measures long recommended by him, since Alaska previously had only a patchwork of miscellaneous taxes" and in 1947-48 derived al- most 30 percent of its revenue, or $2,209. 500, from an excise tax on liquor.
 Governor Gruening said the 18th Legislature wrote record of legis- lative achievement unequalled since the first Legislature assembled in 1915"
 What the 18th Legislature &C., complished, apart from acting to provide income to support the vital public services, was to make a be- ginning of blowing back a small fraction of the wealth that for eight decades has been, is being and will I continue to be derived from Alaska < resources" Gruening said.
 This wealth has contributed to our national economy. It has played a substantial part in building up the city of Seattle.
 Nothing Remained
 But hitherto only an infinitesi- mai part of the proceeds of Alaska's natural resources had been retained for Alaska's own development, and for the services of it's own people. :"
 Gruening said the need for state hood for Alaska became ''increas- ingly apparent throughout .949, particularly so in view of the inter- national situation"
 The Territorys most critical ob- stacle to population growth and de- velopment, he added, is a lack of housing.
 He added that Alaska may look toward relief of the severe housing shortage in legislation enacted by Congress which:
 l. Authorized one-third increase in the limit of Federali Housing Administration insurance in Alaska. 3. Allowed the Federal National Mortgage Association to make real estate loans secured by property in Alaska
 3. Authorized a $15,00O,000 revolv- ing fund loan for the Alaska Hous- ing Authority.
 Building Spurts
 Gruening said that as a direct result of the act 67-unit apart ment building was started at An chorage, about 800 additional apart ment units were proposed for FILA insurance and 68 home building projects were prepared for financ- ing.
 He added that Anchorage needs 5000 housing units, Fairbanks 1000 Juneau 500, Ketchikan 500 to 1000 and other Alaskan towns 1000.
 The report said that due to in- sufficient funds schools in eight | ndLlVe COIilIIluIllLlcS-1uI DC1tCi, Chalkyitsik. Chaniliut, Kaltag, Xii valina, Nondalton and Eagle-re- mained closed "even though build ings, equipment and children were available in each village"
 Schools in nine native communi- ties were operated with one less m-unit than enrolment justi- fled" it added.
 "The savings resulting made 1t possible to operate eight one-room schools which would otherwise have been closed entirely"
 The report also disclosed that for the first time ring rot, a bacterial disease of potatoes, has been found in the Matanuska Valley farming community It was first noted in the Panama Valley two years earlier.
 An effort is being made to con- trol the disease by encouraging the production of certified seed pota- toes," Gruening said.