Helena weekly herald., 1886-10-28
TOOLE AND THE MINES.
The Democratic Candidate FavcrS
Taxing The mat Their Full
Market Value.
Verbatim Extract From His Speech in
the Montana Constitutional
Convention
[From the Inter Mountain. !

speech delivered in the Montanta con-
stitutional convention in SO by Hon. j..
| X. Toole on the subject of the adop-
tion of the clause exempting mines from
taxation except the net proceeds there
| of. Mr.. Toole. it will be seen, favored
the taxation of mining property at its
full value, going even to the extent OF
advocating the taxation of unextracted
| ore in sight. Hon. W. A. Clark, chairman
OF that convention, and other representa-
tives of the mining industry, seeing the
widespread ruin which would inevitably
follow the adoption of Mr. Toole's views,
made long and earnest speeches against
the position assumed by that gentleman,
and explained that the total collapse of the
mining industry would follow the adoption
of Mr.. Toole's suggestions. Mr.. Clark was
eminentIy correct. For instance, it has
been claimed that the Drum Lummon
mine shows $15,OOO,OO0 worth of ore
in sight If the county tax levy of Lewis
and Clarke is ten mills, therefore, Mr..
Toole is of the opinion that the Montana
company should pay an annual tax of $780,
600. What a mOnstrOus proposition
Apply this reasoning to the Granite Noun
| tain. 10 the Anaconda to the Alice, Moul-
| ton, Parrot, or to the smaller companies, or
| to the prospectOrs who are working small
mines and have few hundred tons of ore
| in sight or on the dump as the result Of a
winters work, and what is the result?
| Would it not directly affect laboring men
| as well as capitalists? Alice stock is now
selling at $500. At this price the prop
erty would be rated at 100000 which
should be taxed, according to Mr.. ToOle's
views. like stock of merchandise, at its
full value. How long would that COM
| pany continue operations and give en-
ployment to $50 men, as it does now, if it
were annually taxed on that vast amount
| in addition to the ore in sight? In plain
English Mr. Toole is in favor of taxing
every mining company in Montana out OF
existence and we proclaim him an emf
inently fit representative of the gold bug
administration, which he and his party
and his party platform so obsequiously en-
dorse. We assert that delegate holding
such views is dangerous man in congress
as far as our mining interests are con-
cerned and that if the charges against Col.
Sanders were multiplied a hundred-fold
and every one of them were true, that the
Republica candidate would still be a safer
man in Congress, as far as the people of
Montana are concerned, than the Hon. j.
K. Toole. Following is that portion of his
speech on the exemption of mines in the
constitution of the proposed State of Mon
tana:
am opposed, with my personal knowl-
edge Of the subject, and if | was in the
legislative assembly l would be opposed to
any such provision as this. can see,
with my limited knowledge Of the subject,
how
MINES OF IMMENSE VALUE,
possessing great treasure, would absolutely
fail to pay a single cents worth of taxa
tion, if only the net profits of the mine are
taxed, and 1 am led to believe so by the
arguments of Mr. Burleigh. Supposing
mine that cost but $4,000 is worth $780,,
600, and supposing that during the year
1888 the actual cost of extracting and
working the ore would be $4,000, and
the net profits of that ore would be $780,
600, and that the mine is held by a joint
stock company of three individuals; that
WHllc tut iuluC oudll AdNC tdhCu hOIu tuC
earth $15O,0OO, the president of the COM
pany will say, will take for my services
the sum of $150,000 the treasurer comes
in and says, for my services l will take
$4,000, and the secretary comes in and
says, for my services performed | will take
$4,000, and thus the whole result of that
ore and the entire earnings of that mine
are
EATEN UP IN SALARIES,
and not dollars worth of taxation goes
to the county treasury of the county in
which the mine is located. l say this is
possible to be done and | don't know but
what it has been done. Now, sir, the other
day when it was suggested that a commits
sioner Of mines should be appointed in the
state thought that it would be one of the
best provisions that could he conceived of
to the end that mines should be properly
ventilated and that the shafts should be
properly and securely timbered, looking to
the safety of the individuals who work in
the mines for living. And when we dis
cussed the advisability of the commissioner
reporting upon the taxable value OF a mine
with opportunities for corrupt and dis
honest reports, had arrayed against me
in single minute
ALL OF THE MINING INTEREST
of this convention. Now, Mr.. President
and gentlemen of this convention. want
to say as far as / am concerned that the
piece of property that is not willing to
stick its head up high enough so the peo-
pie can see just what it is, is not worthy
to be called property, or, rather, it is not
worth rating in the taxable property of the
community. 1 want the legislative as
semblies to enact laws for the assessment
and taxation of all property. In the State
of Illinois the constitution provides for this
thing and the law reads as follows: "The
legislative assembly shall provide for the
levying of taxes and placing valuation
upon the property of every person or cor
portion so that it shall be taxed in proper
tion to his, her or its property, such value
to be ascertained by some person or per-
SONS to be elected in such manner as the
legislative assembly shall direct and not
otherwise"
Now, sir, if it is true that mining prop
critics are not worth the money paid for
them. or if speculative values are placed
upon them, if they are held
AT A FANCY PRICE
of more than five times their actual value,
then let the mining commissioner, or the
assessor, clothed with authority to ex-
anime property and assess its value, let
him 60 into the property, and if it has no
value SO far as treasure or ore is concerned,
don't tax it. Tax the Improvements upon
it. Tax the surface ground. These things
should have an independent value and
leave the mine out of the controversy-butif
the mine has valuable deposits of ore assess
it accordng to its reasonable value. Now, l
undertake to say that no individual ac-