Eureka daily sentinel. [volume] (Eureka, Nev.) 1871-1887, 1878-12-03
fCommunicated.l
TAXATION OF MINING STOCKS.

AS0AlAh &~
TAXATION OF MINING STOCKS.
EprroR SENTINEL lin your Sundays
issue you take strong grounds against the
proposition, BY the California Constitu-
| tiohai Convention ravoring the taxing OF
corporstions). and I judge that you are
equally opposed to the taxation Of certif-
Gates Of stocks. II MAJ be . dcbateabIe
question, but my experience in assessing
has caused me to believe that one, or both,
ought to be assessed as other property is
ct the cash valuation ct the time Of making
assessments, and thus be made to bear their
part OF the burden Of revenue for the
State.
II the nominal capital Of corporations
was taxed, it would prevent a false and fic-
titious value. ~ Is almost the universal
custom, and the value would be judged by
the amount the owners were willing to pay
taxes on. 1t would also prevent the system
Of watering the stock, or cutting it up into
millions from thousands Of dollars. for
stock speculation. by dipping the laboring
people iuto the trap. A better plan. now
ever. I believe, would be that of assessing
all certificates Of stock, mining. railroads.
and all others in the owners hands. ut the
current value at the time for assessing.
The necessity for such q law can be seen
in the fact that hundreds Of persons have
their one invested in mining stocks, and
sometimes because they are ex. mpt from
taxation the same as Government bonds.
II the money was not in stocks it would be
subject to taxation, hence l hold that
stocks, whether in their personal possession
or not, being personal property and follow
ing the person, should he subject to . tax.
/ can see no legitimate reason why Gov
ernment bonds and certificates of stocks,
which are q representation Of money,
should not BE- taxed the same as other
property.
In my opinion the taxing Of corporations
in some way would be q step in the right
direction, thus making the taxation more
equal, and thus tightening the burden IN
the laboring and producing classes. / do
not think it would tend to retard the true
and honest development Of the mines. 1t
might be q means of causing corporations
to be organized in their own States. and
prevent their congregation in large cities,
to the injury Of States where the property
IL located, as are the mines Of Nevada.
A. D. Rock.
captain Rock falls into many errors in
the above. He gives it as his opinion that
1.-THE taxing Of corporations. in some way,
would be . step in the right direction"
Now. are they not taxed in 'some way ?"
Let US take, for example, the case Of the
Eureka Consolidated. This is a California
incorp, ration. The Eureka Consolidated
Mining Company pays about $4,000 per
month, in bullion tax. to the county Of
Eureka and State Of Nevada for the piivi-
lego Of carrying on business here. We
also tax its railroad. ] oisting work., fur
naces and other improvements. Every
pany bears his proportion Of the tax. The
whole mine is selling in the market ut
about 50, 600, 900. Under the proposition
Of the California Constitutional Conven-
ton, which we have been combating. the
Eureka Consolidated would have to pay q
tax in California on this vast sum. And
for what? 1t is not Nevada, but California
that proposes to derive revenue from our
mining stocks.
Then. again. take the Richmond for
illustration. This is q foreign incorpora-
ton. Not a share Of its stock is owned in
California. 1t would therefore escape the
stock tax altogether, while the Eureka Con-
solidated would be forced to pay upon its
market valne. Would there be anything
fair about this? Is it right to impose bur-
dens on our homo companies aud let for
eign companies 60 scott free. The same
rule would apply to all Eastern companies.
Captain Rock seems to hold that the in
corporation Of mining companies in San
Francisco is detrimental to this State. In
this, we thiL.k. he is mistaken. 1t is to San
Francisco that VI 60 for the larger share
Of the money employed in tie development
Of our mines. There is no way to enlist
San Francisco capital except by i~ncorporat-
ing down there. 1t is u experience that
a. . rule the business men OF Nevada in
vest precious little in anprodnctive mines,
Captain Rock does not seem to have
given this subject the careful study which
its great importance demands. On mature
reflection, we are satisfied that he must
acknowledge his error. Ed. SESTISEL.l
The Richmond Wa, Dispatch says: The
sooner the North makes MP its mind thai
it has nothing to do with the internal al
fairs Of the Southern States the sooner will
. real peace settle down upon the country.
It is unsufferable that the people Of one
State should undertake to dictate the pol
icy Of another State. or attempt to inter-
fore in any manner with its internal econ
omy. 1t does not alter the case because a
dozen States or more unite and act through
Congress. The whole thing is wrong.
OuR able contemporary. the Leader. pays
the SENTINEL the following handsome COM
pliment: