Pullman herald. [volume] (Pullman, W.T. [Wash.]) 1888-1989, 1898-08-06
MINES AND MINING NOTES
WAR STAMPS MAKE TROUBLE
The Revenue Law Is Driving Amer
lean Companies Over the British
Line-Resuming Work on an Ola
Montana Mine-Mining Briefs.

One effect of the war revenue stamp
tax upon incorporated mining companies
will be to drive some Spokane companies
owning properties in British Columbia
to disincorporate here and reorganlze on
the other side of the line, where condi-
tions are more favorable. They levy of
cents for 500 of the face value does not
appear to be a heavy one on transfers
of stock but it becomes annoyingly heavy
when the volume OF business runs well
up into the thousands OF shares.
The Novelty Gold Mining Company IS
Spokane corporation owning the Nov
city fractional claim, lying between the
Giant and Gertrude on Red mountain,
Rossland. The company is incorporated
for 100000 shares. 1t Is deemed neces-
sary by the stockholders at this time to
increase the capitalization in order to
provide treasury stock to be sold for de-
velopment purposes. The revenue law
would prove quite tax, and so the com
pany will abandon Spokane and reorgan-
ize in British Columbia. \ meeting OF
the stockholders will be called to assem-
BILE in Spokane in August to arrange to
reincorporate with 100000 shares with
a par value of 10 cents, 100000 shares to
go into the treasury. The reduced par
value is made necessary by bothersome
British Columbia law which makes the
license and registration fees heavy for
companies with large capital stock. The
plan is to give each holder OF the stock
in the present company share for share,
which will take up 100000 of the issue
and leave the balance for treasury pur-
poses
1t will be noted that the company
leaves Uncle Sans country to escape Sc
we're taxation only to find it necessary to
reduce the capital stock 80 per cent. in
face value in order to escape taxation al
most as severe in the queens dominion
ScOtt's Decision.
The decision of Commissioner Scott re-
garding the stamp tax on companies with
stock of a par value OF 81, wherein he
rules that the tax is the same on such
shares as if they were worth 500 per
share, was the topic of animated discuss
ion among mining men yesterday, but
sioner had no reasonable ground for max
ing such a ruling. Mining men regard the
law as absolutely plain that the tax on
transfers is , cents per 500 of face value
or fraction thereof, and on original issues
of stock companies Incorporated since the
law became effective the revenue to be
paid is ) cents per 500 face value These
are the fees which secretaries of the var
ious Spokane mining companies are
charging, and cancelling stamps for the
same.
MOuIton Mine at Neihart.
The management of the Moulton mine
at Neihart, Mont, has begun the prepar-
atory work of bailing out the shaft and
as soon as the water is disposed of the
mine will commence active operations.
The property has lain idle ever since
March, 1894, when the price of silver
dropped so low that the owners stopped
work, pulled out their pumps and allow
ed the mine to fill up to within 40 feet
of the surface of the shaft.
The diamond R. Mining Company, al
ter four years of inactivity, has taken
the initiative steps to open up its prop
erty at Neihart. This company owns the
Moulton mine on Rock creek, where it
has erected shaft house, equipped with
engines and other machinery, including
an air compressor and a hoist capable OF
sinking 1000 feet.
The intention of the company is to clear
all the levels, and begin the extraction of
ore, at the same time carrying on consid-
cradle development. The force, starting
off with about 80 men, will be increased
as the work advances.
1t is considered a great movement for
the benefit of Neihart and the surround
ing country. The Moulton in her palmy
days employed 200 miners, and it is not
improbable that she will soon again have
more than 100 on her payroll. 1t is known
that the Diamond R. people have not
given up the idea of concentration, and
that considerable experimentation will be
further made in this direction.
The Virginia Sold.
The Virginia Gold Mining Company
will cease to do business as corporation
under the laws of the state of Washing
ton. The company has been operating
the Virginia property in Rossland camp.
Originally all of its stock was owned III
Spokane. Yesterday when the stockhold-
ers met pursuant to call the number Of
shares held in Spokane represented at the
meeting was less than 5000 The result
of the meeting was the sale of all of the
assets of the corporation to new Brit
ish Columbia corporation, the Virginia
Mining Company, limited. The new COM
pany is incorporated for 100000 shares of
par value of 81, exactly the same as
the Capitalization of the old company.