Gold Hill daily news. [volume] (Gold Hill, N.T. [Nev.]) 1863-1882, 1863-11-16
Taxing Mining Claims.


paper of the 9th Of November, appeared
a long communication from "Nevada," upon
the subject of 'sTaxing the Mines" The ar
ticle is ably written, but it fails to- exhibit the
question at issue. The arguments Of me
valla" is to proveAthat the mines should be
taxed, and while that is an important ques-
ton, vet it does not meet with the serious
opposition OF be as difficult to answer as will
the auestion-Hote shall the mines be tared!
For the support of the government of our
new State, a tax upon the mines is indispen-
sable and without it, all other taxable prop
erty would be ruinously burthened to obtain
a State revenue. The mines are the main
property of the now State, and they create
the principal business and occupation of our
citizens, and ought to bear their proportion
of the necessary taxes. Our citizens cannot
afford to paya tax upon the real estate and
personal property outside Of mines, which
would Weld an adequate State revenue. We
believe taxing the mines will be opposed by
foreign residents, who have no sympathy with
us except so long as they can extract and
carry away wealth from our mines; also by
thoughtless citizens who have no idea beyond
the actual profits of to-day; but the true and
loyal citizen will be convinced that our State
must have a revenue, and that portion Ot
that revenue must come from the mines.
1t has been urged by some that the Su-
preme Court of California has decided that
the taxing of mines is forbidden by the Con-
stitution of the United States but this Is
error; the right to mine, whatever it is, can
be taxed. In California, the taxing of min
ing claims was not omitted because of any
absence of power, but because the represen-
tation from mining counties in the LegiSla-
ture held the majority and would not consent.
The necessity for taxing mines is greater IN
this new State of Nevada than it is in Cali
fornia, which has commerce, seaport, and
a city of San Francisco, as well as the agri-
cultural valleys of Napa, San Jose and Sacra-
mento, and the herding counties of San Der
nardino, Los Angeles, Monterey, Tulare,
Contra Costa and Marin to yield areyenue.
1t is hardly probable our citizens will reject
the proposition to obtain some State revenue
from the mines; but they will object to every
tax upon the market value of the mines, in
stead of the proceeds, or income. The mar
ket value of mine is frequently fictitious
and exorbitant. The true value OF NINE
almost invariably differs from its usual mar
ket value, and is no more easily aScertalned
than is the value Of an undrawn LOTTERY tick
ct. Who can tell what amount Of ore Is lying
one foot beyond the actual extremity of a
drift or tunuele How can the actual extent
of anime be estimated before it is uncovered:
The yield of the first hundred tons of ore
from mine does not guarantee the yield OF
another like amount of ore equally good; and
the best judges are frequently deceived as to
the extent of mine. Not untrequcntly a
mine obtains value because of its location
in the vicinity of other mines which are yield
ing good ore, or because of the mlsrepresen-
tation of inscriptions but interested parties.
A discovery of pocket of ore, or bunch Of
good rock will give to mine avalue which
It soon loses when the true extent of the
pocket is ascertained. In fact, the value of u
mine depends very much upon surmise and
conjecture, and is greater or less as the pro-
prietors are more or less sanSulne and hope
full.
The right to work a mine is only privi-
lege, the enjoyment of which is contingent
upon the will and policy of the General Gov
ernment, and is valuable only so long as the
working is permitted; and the actual product
is the only sure criterion OF the value OF the
mine to the present claimants.
Again, while the actual value of mine is
too uncertain and huctuating to afford basis
for taxation, it is also contrary to the correct
policy of the State to tax the value of the
mine, instead of the proceeds. Many mines,
known to be good, actually require large
capital to be expended in running shafts and
tunnels and building machinery, before a
profitable Weld of Gre can be obtained from
them; and every tax levied upon the mine by
the State, while the claimants are preparing
to open the mine, only tends to retard and
discourage the development Of it, and thereby
an ultimate addition to the wealth Of our
State. The true policy of the new State
should be to encourage the opening of mines
rather than to create the slightest obstacle.
And for this reason, therefore, urge taxa
ton of the proceeds of mine rather than its
Y, lue, and am in favor of laying the heaviest
tax upon that mine which yields the greatest
income, regardless of its market value and
that 1,on-productive mines should pay no tax
eyceDt upon the value of the engines and
machinery erected thereon, and horses and
personal property used in or about the mine.
In conclusion, admit a revenue must be
derived from the mines, but that the market
yalue of the nj inc itself is too fiuetuating to
afford any criterion by which an assessor
could fix Just and equitable rate of taxation
We believe it will be evident to every think
ing citizen, that the proceeds or income from
a mine will afford the only correct and relia.
BILE evidence of its value, and a comparison OF
the incomes from different mines, Is the only
true method Of ascertaining the relative value
of such mines.
We hope the Constitutional Convention
will duly consider this subject, and Will sub
sect to taxation the income and proceeds OF
the mines only, instead of the estimated
value, In no other mode can we hope to OBJ
tain any State revenue from the mines.
6. H. G.