The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1895-06-05
WHAT THE CHANGE MEANS.
Details of the Provisions of the
Mexican Mining law.

Utah has many citizens interested
in the mining industry of the republic
of Mexico, and the recent change in
the mining laws of that country mas
given not a little concern to these
same people. One of the heaviest
Utah operators in the southern repub-
lie is the Pan American Gold Mining
and Milling company of Salt Lake
which is working away in the state
of Sonora and quietly building up a
fortune for its stockholders. Already
this company is paying heavy roy
atty to the officials and government
and the members are now asking
themselves whether or not they VIII
be forced to part with more of the
earnings of the plant in order to sat
isfy the cravings of the MeXicans. Inc
first real information as to the work
ing of the new law has just been re-
ceived from E. c. Creel, banker OF
Chihuahua, in response to an inquiry
nut TO him by B. n. Freeman OF the
city of Denver. Mr.. Creel writes as
follows:
ceived. L regret very much 10 hotLce
that the new mining law OF TINS
country, imposing a tax OF per cent
on the ores produced has been ms
understood, and has done so muck
harm to this country.
The new law does not mean new
tax on mining in Mexico; 1t is only
change of regulations as to the system
of collecting the taxes which already
exists in Mexico, and has existed for
the last hundred years.
We are now paying on all the silver
and gold that is produced in this coun-
try and sent to the mints either for
coinage or for expectation PURPOSES,
SAL to the mint; and besides this, we
pay in stamps as a federal contribu-
ton go cents for every $1OO; so that
altogether we are at present paying
S5O1 on every $100 of silver or gold
produced in this country
According to the new law the taxes
will be collected thus:
Three per cent of the value of the
silver and gold contained in the ores
when they are extracted from the
and gold are introduced to the mint.
either for coinage or for export our
poses.
You will see that according to the
new law we will have to pay, after the
LIST Of July, per cent; but at present
and for the last hundred years we
have paid SOL and sometimes good
deal more.
You will notice that the mining in
terests of Mexico Ere not going to
suffer on account of this new law, and
that it has been mistake made by
the papers of the United States who
have published that a new tax on
mining has been imposed in Mexico.
Now, there was a certain class of
ores in this country which were not
paying any taxes whatever. Those
ores were the ones sold to smelters
either Of this country or the United
States. These ores will have to pay
after the 1st of July per cent, and it
is only consonant with principles of
equity that the ores produced by all
the mines of this country should pay
the same tax. l can see no reason why
the ores which are minted and milled
in this country should pay 5 per cent
tax, and those sold to smelters should
pay nothing at all. The new tax has
try and all the miners understand that
it is not going to hurt their interests
in any way.
AS you know, am interested in sew
eral of the mines of this country, and
l am also the president of a Chihuahua
company, and / have no COM
plant whatever to make, as l see that |
my interests are not going to suffer at |
all on account of the new tax" which |
is only going to take the place of an |
old one.
For some time past the minis of this |
nave been leased by the gov |
to private companies, who |
nave advanced the price of the lease
Tor number of years. On account of
these contracts leasing the mints the
government for the last ten years has !
received no revenue whatever from
he coinage of silver and gold in the
hints of this country.
The contracts leasing the minis have
low expired, and the government for
he first time for great many years
S again going to control the minis of
he country. This explains why after
he 1st of July the Mexican govern
nent will have an income of about
z. 100000 coming from the tax on the
,res and the mint tax on the bullion,
While before the government did not
'eceive anything. The tax OF SAL on
bullion was collected by the companies
the minis on account of the
different contracts which they had
made with the government as lease
or the privilege of coming the bullion
# the country.
You would render this countrx