$500,000 and not in excess of $1,000,000, 134 per cent of net income in excess of $1,000,000; public messengers, $25 per annum; dealers in nonalcoholic beverages, $10 per annum; sawmills (lumber mills and shingle mills), 10 cents per 1,000 feet, board measure, of lumber produced per annum.

There is no general system of property taxation in effect in Alaska. but the Territory is in receipt of other revenues in addition to license taxes, railroads paying tax of 1 per cent of gross receipts, 25 per cent of the receipts of the national forests in the Territory accruing to it, and a poll tax act, levying for school purposes a tax of $5 per annum on all men between the ages of 21 and 50 years, is in effect.

Estates of deceased persons without heirs escheat to the Territory. The legislature of 1919 passed inheritance and profits tax laws, but only small results have thus far been realized under these laws.

The 1923 session of the legislature enacted a revenue measure providing for the licensing of fishermen in the Territory of Alaska, this law being chapter 94, Session Laws of Alaska, 1923. By provisions of amendatory act by the 1929 legislature the following license fees became of effect on date of August 1, 1929, and thereafter: Resident fishermen of all classes, $1; nonresident fishermen who use hook and line in trolling, $2.50; nonresident fishermen who use gill nets, $10; nonresident fishermen who use seines, $25.

License taxes collected and other revenues accruing to the Territory are covered into and disbursed from the Territorial treasury, the fiscal year of the Territory corresponding to the calendar year. The condition of the Territorial treasury for the year ended December 31, 1930, was as follows:

Balance of cash on hand Jan. 1, 1930_
Total receipts from all sources..

Total disbursements under appropriations made by Territorial leg

islature___

Balance of cash on hand, Dec. 31, 1930_

TERRITORIAL BANKS

$720, 850. 41 1, 153, 237. 61

1,282, 604. 58 591, 483. 44

At the close of the year covered by this report there were 13 Territorial and 4 national banks doing business in the Territory. The Territorial banks are located at Ketchikan, Wrangell, Petersburg, Juneau, Skagway, Cordova (2), Valdez, Seward, Anchorage, Flat, Nome, and Hyder. National banks are located at Ketchikan, Juneau, Anchorage, and Fairbanks. The number of banks remained the same during the year, no new ones having been organized nor were any suspended or liquidated.

The Territorial banking board, composed of the governor, the auditor, and the treasurer of the Territory, continued its supervision over the Territorial banking institutions. All such were examined during the year and reports made of condition and published statements under call, as required by law.

Combined deposits in the several Territorial banks at call of June 30, 1931, totaled $6,984,851 as compared with total of $7,624,291.24 at corresponding call of the year previous. At call of June 30, 1931, combined capital of all Territorial banks totaled $640,000, the same as for the corresponding call of the year previous. On June 30, 1931, under call from the comptroller, the national banks of the Territory showed combined capital in total of $275,000, surplus and net undivided profits of $233,189.15, deposits $4,290,210.51. Aggregate banking figures for the Territory on June 30, 1931, were approximately as follows: Capital, $915,000; surplus and net undivided profits, $826,800; deposits, $11,275,000. Approximate totals for the year previous were: Capital, $915,000; surplus and net undivided profits, $935,300; deposits, $12,252,300.

ALASKA FUND

The Federal Government derives revenue from business and trade licenses issued outside of incorporated towns, which is collected by

81740-31-8

the clerks of the district courts, deposited to the credit of the Treasurer of the United States, and by him credited to the Alaska fund, under the act of Congress approved January 27, 1905. Sixty-five per cent of the money paid into this fund is appropriated for the construction and repair of roads and trails outside of incorporated towns and expended under the direction of the Alaska Road Commission; 25 per cent is appropriated for the maintenance of schools outside of incorporated towns, expenditures being made upon requisitions by the Governor of Alaska upon the Treasurer of the United States through the Secretary of the Interior; and 10 per cent is appropriated for the relief of indigents, disbursed by Federal judges under the act of Congress approved March 3, 1913.

The sums collected during the fiscal year 1931 and a comparison with the previous fiscal year are shown in the following tabulation:

The net amount of cash turned into the Treasury in the fiscal year 1931 for the account of the Alaska fund in the first division was, however, $96,580.80, the difference of $4,514 being the aggregate of rebates made and credited to certain salmon canneries for the release of salmon fry in lieu of cash payment of taxes on their output. The act approved June 26, 1906, provides that the catch and pack of salmon in Alaska, by owners of private salmon hatcheries operated in Alaska, shall be exempt from all license fees and taxation of every nature at the rate of 10 cases of salmon to every thousand red or king salmon fry liberated; that is, a rebate of 40 cents is allowed on every thousand red or king salmon fry released.

The total revenues received from the taxes levied by the Federal Government within incorporated towns from business and trade licenses which were paid by the clerks of the district courts directly to the treasurers of the towns were as follows:

Three or more persons may unite to form a stock corporation under the general corporation laws of the Territory of Alaska for any lawful business purpose whose chief business shall be in the Territory of Alaska, except for the purpose of banking, insurance, brokerage or loan, trust and guaranty associations. Domestication

of banks and of trust companies and of social, fraternal, educational, and similar corporations is authorized by special laws pertaining thereto.

Foreign corporations (there being a special law applying to insurance companies) may qualify to do business in the Territory by filing in the offices of the Territorial auditor and of the clerk of the court in each of the judicial divisions of the Territory wherein business is contemplated being done (1) certified copy of articles of incorporation, (2) financial statement, and (3) appointment and consent of resident agent for the service of process, the agent to be a resident of the division for which he is appointed. Blank forms for the latter two may be procured from the auditor upon request. Actually engaging in business without authority so to do subjects a foreign corporation to a daily penalty of $25, and renders all its contracts voidable at the option of the other contracting party. After being once qualified, a foreign corporation has the annual duties of paying the corporation tax mentioned in the following paragraph and filing an annual report and the further duty of keeping on file an effective appointment and consent of resident agent.

All corporations must pay to the Territorial auditor at the time of incorporation, if domestic, or at the time of qualifying to function in Alaska, if foreign, a tax of $15, and the same amount each calendar year thereafter, on or before January 1 of the year concerned. If not then paid a penalty of $2.50 attaches, and in case of tax delinquency for two consecutive years, dissolution or cancellation of authorized status automatically results.

Filing fees in the office of the Territorial auditor:

1. Filing certified copy of articles of incorporation, fee is controlled by amount of authorized capitalization:

(a) Authorized capitalization of $100,000 or less..

(c) Over $1,000,000 for each $1,000,000 or fraction thereof an
additional..

(b) Over $100,000 to and including $1,000,000 for each $1,000 or
fraction thereof an additional_.

$25.00

.10

10.00

(1)

2.50

5.00

1.00

6.00

2. Filing financial statement (not required of domestic corporation). 3. Filing annual report of domestic corporation__

4. Filing annual report of foreign corporation--.

5. Filing fees to each clerk of court, approximately:

Foreign_____

Domestic, by folio, average approximately---.

AGRICULTURE

Progress has been made in agricultural settlement and development during the past year especially in the Matanuska Valley. Settlers are developing new homesteads and buying partly improved ones and clearing more land. This region is well adapted to dairying and farmers are planning to build barns for dairy cattle. The crop grown for ensilage consists of a mixture of peas and oats, which yields at the rate of about 6 tons of green forage per acre.

The cooperative projects between the agricultural experiment stations and the Alaska Railroad are being continued. The creamery at Curry, which is operated by the Alaska Railroad and supervised by the experiment stations, has made satisfactory progress.

1 No fee.

Another cooperative project between the Alaska Railroad and the experiment stations was undertaken last year. An effort was made to find a market for all of the farm crops produced in the railroad belt, and as a result of this all the farmers who had potatoes, vegetables, hogs, and other crops for sale at market prices found a market for everything that was produced.

The cooperative project between the Alaska experiment stations and the Government industrial school at Eklutna is being continued. The dairy cattle furnished by the Matanuska station are in excellent condition, and the milk that is produced by these animals is used at the school.

A number of changes have been made in the organization of the experiment stations during the past year. The Fairbanks station, which has been in operation since 1907, was transferred to the Alaska Agricultural College and School of Mines on May 1, 1931. The Kodiak livestock station at Kalsin Bay was closed on June 30, 1931. Some of the cattle were transferred to the Matanuska station for further experimental work, and the remainder were sold at public auction. The headquarters office, which has been located at Sitka since 1898, will be moved to the new Federal and Territorial Building at Juneau before the close of the present calendar year. The Sitka station is being operated as in former years. Additional projects have been started at this station in pruning fruit trees; controlling insect pests, such as cabbage maggots; fertility experiments; strawberry breeding; and other projects. The Matanuska station is the largest one in the Territory. Additional land has been brought under cultivation, and new buildings have been erected.

One of the chief problems connected with the production of forage crops is to preserve it for winter use. The crop consists mainly of oats and vetch. That portion of the crop which is used for ensilage is harvested in the green condition and run through the ensilage cutter and placed in the silo. Little difficulty is found in preserving ensilage. Curing of hay is more difficult. The fall weather is cool and, unless adequate methods are employed, much difficulty is experienced in saving the forage. Experiments are now in progress at the Matanuska station to determine the best and most economic method of curing hay. Formerly racks were set up in the field, but it has been found less costly to employ stakes, setting them in the ground and placing the green forage in small cocks on the stakes and leaving it there until dry enough to be hauled into the barn.

The results of experimental work in horticulture indicate that small fruits like raspberries, gooseberries, and currants, as well as strawberries, can be grown with comparative ease, while only the most hardy tree fruits should be attempted. Although the temperature during the winter months does not fall much below 30° below zero, the trees winterkill because the condition of the wood of the previous season's growth is not matured enough to enable it to withstand the temperature.

The dairy herd has been improved and animals are now being bred to fix the type. In the last few years a number of cows have yielded more milk than the average amount produced by the Holstein herd which is kept at the station. This new breed of dairy