The Empire County argus., 1856-07-05
Taxing Mining Capital.

Taxing Mining Capital
We find floating about the following note which
was recently received by the Assessor of Nevada
county, in reply to query on the subject, addressed
to the Attorney General:
ATTORNEY GENERALS OFFICE,
June 18TH 1856
SIR: / am of the opinion that capital invested in
Mining Claims is proper subject of taxation under
the Revenue Law of this State.
Very respectfully, Yours.
WIN. T. WALLACE. Atty Gen'.
Mr. John Mccoy, Assessessor Nevada Co.
Are that law" The Revenue Law of "a sets
mining claims aside as exempt from taxation. In
the list of taxable property occurs the item ina
chinery for mining" Is money paid for gum boots,
Spanish beef and sharpening picks, machinery for
minng?" IF the sinews of war" tanned down into
provision expenses of halfdozen hardfsted miners,
while running tunnel into one of the rock-crested
treasure banks of the mountains, to be taxed
capital invested then are fallen on uckess times.
Suppose twelve men, six miners and six mechanics,
form themselves into mining company, for the pur-
pose of driving tunnel into the side of one of the
thousand gold hills in the State. 1t is arranged that
the six miners Immediately commence the tunnel, and
that the mechanics proceed with their several pur-
suits, and turn their surplus earnings into fund out
of which to deray the expenses of running the tun-
mel. The work goes on for six months, $4,000 has
been paid for the various items of picks, drills, flour,
powder &c The Assessor drops in, and wishes to
know the amount of capital invested in the tunnel.
The cars and track are given in to him as-"ma-
chinery for mining, $1,000 But that is not a
moiety of the "captal invested in mining claims" ="
and the Assessor proceeds to investigate the matter
in another course. He finds that the company has
paid $4,000 at store by, for the various arti
cles of food and clothing, and for lumber, shoves,
and the like. He thereupon sets the company down
for $4,000 additiona!-"capital invested in mining
claims"
Our company keeps along several months-the me-
chanics paying the cash expenses and the miners
digging and blasting. Times grow dull, and the
mechanics compound with their partners, and with
draw from the company after having paid in cash to
the amount of $4,000 They lose what they have
paid and their recent partners get credit at the store
for six months provisions. The Assessor comes
round once more, and finds the account to run thus
"June goth, 1855, capital invested, $4,000 Dec
20, 1855, account paid Jones & Co. for provisions
$4,000" The latter item being an exact fellow to
the original statement of the company's capital SIX
months earlier, he takes down. and figures up cap-
tai invested in mining claims, $4,000" But, recol
lecting that our company has subssted sp to this
time, he sets about ascertaning the amount expend
ed during the past six months. He finds an unsettled
account of $4,000, for provisions to date. Concludes
that the latter item can not be called capital invested
until it is paid. The company breaks up, and the
men commence in other projects, after arranging with
Jones Co. to pay their indebtedness in monthly in
stalments of $500 Suppose they promptly meet
their engagements what will their capital invested
in mining claims amount to on the Goth April, 81?
Then suppose another company Jumps the aban-
doned tunnel, and after outlay Of $500 strikes
good pay, and you have the picture complete
Taxing capital invested in mining claims" will
never be submitted to by the miners. To enforce
the collection of such a tax would be an mposslbility.
If it could be enforced it would be suicidal policy
to place such an incubus upon the first and dearest
interest of the State. 1t would cut off the expendi
ture now amounting to thousands, and reduce it to
nothing Men would send their money to the East
to be loaned at 10 per cent. per annum rather than
be taxed on investments in projects the most preca
rous of any in the State.
But the tax can not and should not be enforced.
Newspapers say it should be collected and that per-
sons interested should not oppose itthat the miners
receive the protection of the government, and it is
only proper that they should pay such tax, for the
support of the State Government! Bah! talk to
the winds, of State Government Well have Vigi
lance Committees