Eureka daily sentinel. [volume] (Eureka, Nev.) 1871-1887, 1878-12-01

same.
AN UNwIsE PROvlsION.
The Grass Valley Union has the annexed
editorial article Of interest to the people Of
Nevada;
The Committee on Corporations in the
Constitutional Convention have reported
In favor Of taxing the stock Of incorpora-
tions, other than railroads. in this way:
That stock Of an incorporation shall be a.
sessed a its market value, on . given day
of thu wear. It the principal place OF BUSH
neas AZ the company. The assessed valne
Of the property Of the company may be de-
ducted from the assessment upon the stock.
m efsct Of this would be that all foreign
companies, having their principal place Of
business 1t New York, London, or ELSE
where, would escape taxation upon their
stock, while our home companies would
hsvs 10 pay. The evident injustice Of snch
{ provision can easily be seen by
ehoee ct all familiar with the
nnstuating values Of mining stocks.
ouppose. on the day OF ASSESS
1snt the stock sold at 500 per share.
and yet In less than . month it would
bring but $40 per share. would it he inst
90 BUX oIkB9 W u W - skA&*
had NO existence7 Such instances are
FREQUENT in the stock market. A Consti-
sutionsl provision Of that kind could have
NO other effect than to hampr and dis
courage mining, and il adopted would work
Q positive injury to the business o nut
ouiy this but adjoining States. where min
ing 10 . leading pursuit. The only fair
mode Of assessing mining companies is
upon their actual property, and mot upon
TIE stock, which il but . certificate Of
ownorship therein. II . mine is profitable.
and declares dividends. that becomes .
property that should be assessed in the
kands q the persons holding it. The cor
reetness Of these positions should be man.
ifost 70 every fair minded man, and any
Other mode Of assessing incorporations
would - unjust and destructive Of their
usefulness.
Of course. The object Of the California
constitution makers h TO reach the mining
eompanies, whose headquarters are in San
Trancisco. II IL . blow aimed At the min
Ing interest which. II successful, cannot
fail Of working serious detriment to the
lssding industry Of Nevada. Inveigh ~
much = ~ may against stock gambling.
the fact still stands that no better way has
ever been suggested for developing the
mineral Of the Pacific Coast than
by the joint stock system. In this man
ncr whole communities become interested
and contribute their mite to this end. II
10 the multitude instead Of the few. When
one class becomes tired Of paying assess
msnts. they step out and another steps in.
And hence constant change furnishes tho
lifs-blood Of the business. A non-produc-
tire mine in the hands Of private capital
would seldom be placed on . paying BUSH
mess. 1t costs cords Of money to develop
. silver mine. Hosting works must be
provided. mills and roads built. and deep
shafts constructed. What ten capitalists
on the coast would be willing to risk snch
~ outlay on : desperate chance Of striking
ore in remuneratiye quantities in the end7
And how many mines Of prospective value
in Nevada would there be in opef-
stion to-day II dependent upon private
enterprise We imagine that there
would BE- precious few. We lid the
Hamburg. K K, Phenix. jackson, Albion.
Price \ Davis. and other promising prop
critics IL our own district be in ! ,e course
Of successful deveioI mont but for the joint
stock plan Of raising the necessary capital7
We ssriously donbt II. Any steps taken in
California 70 cripple the stock dealing busi-
nsss must necessarily be hurtful to No.
vada. The mining corporations might be
driven to Nevada. but then We would soon
1oss San Francisco's money. Interest in
mining stocks would measlrsbly cease the
moment the stock boards were taken from
undsr 6au FrAncisco's nose. Place safe
guards around the investor in every possi-
biz way, but let not the business be Grip
plsd. We get . good deal Of San Francisco
~ in tho development Of orr mines, and
II IetuSn we petroniss San Francisco for
or supplies. And 70 it Is highly probable
that 10 are - Of much benefit to San
rrancisco = San Francisco Is to NJ.
The only true method Of deriving reve-
nue from the mines 10 to tax the product,
~ net yield. This should be done only
whore the nina il located. California may
~ hsr own mines - high and ~ often a.
shs plsAses, but we insist that : certifcats
ol ownership in property beyond her limits
Il hardly > proper subject Of taxation. Al
we'll tx tho citisen's stock in . bank in
Chicago. or New York. where the capital oi
III concern il already taxed. Tho Cali
fornia Convention will do well TO let this
stock taxing business severely slone.