The Daily Alaska empire., 1951-05-22
By Alice Frein Johnson

WASHINGTON, May IT, = oBy Air MaiD Arguments for granting Alaska statehood are based on ten uous and Missionary theories which will not stand examination, five members of the Senate Inter- for and Insular Affairs Committee stated in the minority report on the statehood bill.
 The report, issued today, was signed by Senators Hugh Butler, Nebraska; Arthur v.s Watkins, Utah, and George w. Malone, Nevada, all Republicans, and Russell B. Long, Louisiana, and George A. Smath- CTS, Florida, Democrats.
 ''The proposal of statehood is a chimera, advanced not as a means for speeding the Territory's devel- opment, nor increasing it's popula- tion, nor placing it on sound ec- onomic footing as a member of the Federal Union," the report stated.
 Because Alaska currently is suf- fering from grave economic ills, the bill, which is not an economic measure, will not solve any of the Territory's fundamental problems, according to the minority's opin- ion.
 Alaska cannot afford statehood at the present time, said the mil nority, which is not a matter for criticism of Territorial residents, but, nevertheless remains "a cold hard fact"
 "Alaskans cannot be held respon- Sible for a situation which has as its inherent qualities an almost total lack of basic industries, stag gering wage scales, long freight hauls for all commodities, and the cloud of Indian claims against Ter ritorial lands as further deter rent to industrial development ' the report stated.
 Federal spending in Alaska, in- cluding the multi-million dollar projects for war and defense, is at a peak. Aside from the salmon in- dustry, which is declining, federal spending constitutes the Terri tory's main industry" continued tce report.
 When this bubble bursts, Alas kanS will be faced with extreme economic hardship. The population must decline without industries to replace the government building program. Beyond the conversation of the bureaucrats, there are no new industries in immediate pros- pect now There have been none added to the Territorial economy In the past year, despite the loud optimism expressed by the state hood proponents before the Senate Committee on Interior and Insular Affairs last April.
 Agriculture Declines
 Agriculture itself, the basic in dustry, has actually declined, not increased, during the past decade. Ten years ago there were 623 farms dncluding fur farms) in the entire Territory; now, there are exactly 525. Either figure is far less than the number of farms in the aver age county in the 48 states. Acreage of land under cultivation likewise decreased.
 This will mean that money will be increasingly scarce for those who remain in Alaska. Theirs will be the job of continuing to support the expensive Territorial Govern ment that has been allowed to grow during the lush years of federal spending for defense. The resultant peril of financial chaos and govern mental bankruptcy would be multi piled many times over by thrust ing statehood on the Territory at the present time, with the added burden of supporting the new state government now, and later when the golden torrent of federal dol lars has ended"
 The report pointed out that AL aSka now has almost every kind of a tax to be found anywhere else in the country, and, with new taxes enacted by the last Territorial Leg islature, it is estimated each man, woman, and child in Alaska will be taxed about $126 figure higher than that of any state. Since statehood is expected to double the cost of government for residents of Alaska, approximately $l0,000,000 would be added to their annual tax bill.
 "Is this a proper burden with which to saddle Alaskans so that a handful Of ambitious politicians may realize their dreams of becom- ing senators, members of the House of Representatives, judges and oth- CT officials of the proposed new state2" asked the minority