Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1898-07-30
MINES AND MINING ITEMS
REVENUE LAW is NOT LIKED.
NEWER Thinks the War Tariff on
stock Transfers IA Harmful ThihE
-Assessnble stock Coming INTO
Fashion-Different Views of the
South HnIf-StrIIscs in Idaho Mines

cused among the mining tock brokers Oh
Denver
It is now tolerably well settled that 1t
is the intention of the law to tax every
sale or agreement to sell or memoranda
Of sale. whether or not an actual trans
fer of stock is made on the books OF the
stock companies, and the directors OF Inc
mining stock exchange OF that city are
now deyisine a plan whereby the brokers
may have the proof OF the compliance
with the law. 1t is probable that sys-
TEN of memorandum slips will be adopt
ed. the stamps to be affixed to these
slips.
The most serious feature OF the law as
affecting the mining stock business III
that state is the fact that it requires the
payment of a tax of cents upon each
500 of par value of stock. The result Is
that a stock which is actually worth SIOu
in the market pays no more than one that
i worth but $40. The stock exchanges
of the state are taking steps to bring
this discrepancy before the proper au-
thorities at Washington. 1t Is doubtful,
however, if anything can be done without
congressional action.
Calvin Bullock, president of the Denver
mining stock exchange, in speaking OF
this matter, said: The brokers do not
complain of the $50 license fee. They are
perfectly willing to pay that, but it does
not seem fair that the basis should be
fixed on the par value rather than ON the
market value of a stock. The result OF
this is that a stock that is worth only
cent Oh the dollar is taxed as heavily as
one that is worth 100 cents on the dollar
There are oil stocks in Pennsylvania and
elsewhere with par value OF SO per
share that are actually worth from 5000
to $500 per share. In such cases the stocks
that are worth 5000 per share would pay
but , cents on every $500 worth OF stock,
while mining stocks that are worth but
cent share would pay cents ON each
dollars worth OF stock.
ITO show how this thing affects the
local market as we understand it at pres
ent. let Us take all the stocks as based
ON a 81 900 transaction. This would only
mean a l0-share lot if dealing in railroad
or industrial shares, but it will do tor
illustration as we'll as 4 larger amount,
and the tax of , cents per 500 par value
would be 20 cents ON the sale, or equal
to one-tifth of / per cent on the money
involved. This tax would be exactly the
same as our own high priced stocks sell
ing at OF close to par, like Elkton, Tor
instance. But when it comes to stocks
which sell for less than their par value
the result would be wider discrepancy,
and there would be a great increase i'll
the amount of tax paid on 500 OF actual
value On 50-cent stocks the amount paid
ON 81 900 of value would be 40 cents ION
25-cent stocks, 50 cents on l0-cent stocks,
50 on 5-cent stocks, 81 on l-cent stocks,
$40; on stocks selling at S. per 1000
shares, S4O ON stocks selling at $3.50 per
1000 shares, $50.
IF the tax was scaled on the amount
of money involved there would be no
objection to paying the one-tittieth OF
per cent ON a transaction, but since the
bulk of the trading is done in the cheap
er class of stocks, the tax as it stands 1T
present amounts to penalty severe
enough to wipe out virtually all trad
ing in the cheaper stocks
Prefer AsscssabIe stock.
Assessabe companies promise to take
the place of treasury stock corporations
in mining affairs in the northwest. Al
ready there is evidence of the fact that
the assessment principle is growing in
favor 1t is becoming plain to mining
men that assessable stock is the sort
that assures the development of a prop
erty. Several companies are III prospect
to operate reservation claims and num-
Der of them will adopt the plan OF max
ing stock asseSsabe.
4 Dream of Gold.
There was excitement in North Repub-
lie, Wash, last week, caused by the result
of an assay made by H. Z. Ellsworth. 1t
was so fabulous that the populace of the
camp caught the news and the infection
in brief space of time. The alleged facts
in the case were gathered and the figures
are given by the assayer. 81 Hill ana
Eugene Sullivan returned from the south
half in the morning and began showing
some nice looking ore. They crushed and
PANIED portion of it. They had so
much gold that they became suspicious
that it was not the true stuff. Ii. w.
Lane suggested that they blow in dol
lar and have it assayed, so that they
would be positive about it, Here are the
figures furnished by Mr.. Ellsworth: Gold,
SlO,35l53; silver, SSl.3l; total value,
value, $l0,432S4. The claim from which
this ore is taken is called the Florida and
Is situated six miles east of the twenty
four mile post
south Half Does Not Please.
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