Adams County news. [volume] (Ritzville, Wash.) 1898-1906, 1898-07-27
MINES AND MINING ITEMS
REVENUE LAW IS NOT LIKED.
Denver Thinks the War Tariff on
Stock Transfers a Harmful Thing
-AssessabIe Stock COminge Into
FashiOn-Dinerent Views of the
south Half-strikes In Idaho Mines

,.'
The matter of the war tax on stock
transaction is being very earnestly dis
eused among the mining tock brokers OF
Denver.
1t is now tolerably well settled that it
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 the
mining stock exchange of that city are
:. now devising plan whereby the brokers
may have the proof of the compliance
with the law. 1t is probable that a 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 in
that state is the fact that it requires the
payment of tax of cents upon each
800 of par value of stock. The result is
that. stock which is actually worth 500
in the market pays no more than one that
is 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.
J. 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 Il stock. The result OF
this is that stock that is worth only
cent on 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 a par value of $50 per
share that are actually worth from 5000
to 800 per share. In such cases the stocks
that are worth 800 per share would pay
but 2 cents on every $500 worth of stock,
'wiike mining stocks that are worth but
! cent share would pay cents on each
dollars worth of stock.
"To 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 for
ILLUSTRATION as well as larger amount,
and the tax of cents per 800 par value
would be 20 cents on the sale, or equal
to one-ffth of / per cent on the money
involved. This tax would be exactly the
same as our own high priced stocks sell
ing at or close to par, like Elkton, for
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 in
the amount of tax paid on 800 of actual
value. On so cent stocks the amount paid
on 81, 600 of value would be 40 cents ION
2j-cent stocks, 80 cents; on l0-cent stocks,
81; on scent stocks, 81; on l-cent stocks,
$40; on stocks selling at S. per 1000
shares, $40; on stocks selling at $3.50 per
1000 shares, $50. r.
"If the tax was scaled ON the amount
of money involved there would be no
objection to paying the one-fiftieth of l
per cent on 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 AssessabIe Stock.
.Asscssable 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
linen that assesSible stock is the sort
that, assures the development of a prop
erty. Several companies are in prospect
TO operate reservation claims and num-
Der of them will adopt the plan of max
ing stock assessable.
A Dream of Gold.
There was excitement in North Repub-
lie, Wash, last week, caused by the result
OF an assay made by II. f. Ellsworth. 1t
was so fabulous that the populace of the
camp caught tile news and the infection
in a brief space of time. The alleged facts
in the case were gathered and the figures
are given by the assayer.. 81 Hill and
Eugene Sullivan returned from the south
HaiI uf tisE -hOsuinS Adiiu bct5hl SuoN tiit,
some nice looking ore. They crushed and
panned 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
lrHand have it assayed, 50 that they
would be positive about it.. Here are the
figures furnished by Mr.. Ellsworth: Gold
$l0,35l.53; silver. $Sl.3l; total value
value, $40, 432SS4.ss The claim from whici,
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.
o. F. Parmeters a well known Montana
mining man, who has spent the past two
years in Washington and aRritish Golum
bia, came into Republic from the south
half last week. Asked for his opinion oi
hat section as a whole, he said:
IL do not like a large portion Of it
There seems to be an almost entire alb
sence of float rock, The granite is, so faI
as ! could see, barren. There are i'm
mense ledges of porphSfy lying one upon
another and immense biowoutS Their,
are some fine looking properties on Colo
creek and they carry good values Al
least they are said to- l have no doub
L..