The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1911-02-17
COPPER TAX IS
HEAVY BURDEN
Michigan Situation is Gone Into
by President Shields of
Arcadian.
WILL WIPE AWAY
MINING PROFITS
Companies Having Hard Enough
Time in Fighting Low
Priced Metal.

|
the copper produced by the Michigan
mines is not a matter OF purely Michi-
gan concern, as the innumcrable Utah
| shareholders of Michigan corporations can
I, testify. Western producers not financial
| ly interested extend their sympathy to
Michigan operators on general principles.
! for II is hard enough to struggle against
low copper prices, where fractions of a
cent pound mean profit or loss. with
out meeting hostile legislation.
R. H. Shields. president of the Area
dian company, demonstrates that injus-
tice OF the proposed tax in the following
emphatic manner:
II am aware of the fact that there
exists quite generally throughout the low
er peninsula an impression that the mines
OF the upper peninsula are not paying
| anything like their just share of the
taxes; that the assessments OF mining
properties are made by the mining Off
cials themselves: that enormous dividends
are annually paid: that the benenciarles
are mostly nonresidents of the state;
that the states resources are being ex
hausted without adequate return, and that
to cure all these alleged evils there should
be specific tax imposed on the output OF
the mines. / am frank to say that this
impression is result OF a lack OF knowl-
edge Of the true condition of affairs in
this section OF the state
Investigates Industry.
But. results count, and so let us brush
ings and excuses and see Just what the
proposed tonnage tax would do to the
copper mines Of Michigan. Determined to
ascertain for myself what the result
would be, | secured the assistance OF Ar
thur j.. Carnahan, statistician for the
banking and brokerage house OF Gay &
Sturgis, and an acknowledged mining aU-
thority, and the facts and figures which
appear in the following tables. compiled
from the official annual reports and rec
ords OF the mining companies, are the re-
suit
t'Their accuracy is beyond question.
and they include every copper property
In the counties Of Houghton, Keweenaw
and Ontonagon, embracing the Copper
Country upon which money was eXpend-
ed or profits secured during the period
therein represented. Since the annual re-
ports OF the companies for the year 1910
have not yet been issued, the figures were
compiled from the last fiscal years for
which the annual reports are out. main
ly corresponding with the calendar year
1909, which is as representative as any
that could be chosen, and which in the
10 the mining companies than those OF
the current year, from an earning stand =
point.
"The purpose of this tabulation is pri-
marily to show five fundamental things.
namely:
"First-The actual earnings of the cop
per mines OF Michigan
"Second-The distribution of dividends
to the public from these mines.
''Third-The proportion OF these divi-
dends returned for new development
work.
''Fourth-The actual profit on every
pound Of copper produced during the year
under consideration.
'F1fth--A tonnage tax on mines oper-
ated at a loss must come direct from the
stockholders
The figures:
Earnings of Copper Mines.
Total profits from operations
Of eight companies which
earned money ............... S7.949. .3o2
| Total deficits from operations
of thirty-fve companies which
lost money ,.............,..... 3.o9s $50
Total companies operating. 13,
Net profits" ....,..........s4s5 $50 500
Distribution Of Dividends.
| Total received in dividends from
seven disbursing companies. SO, 70S, a3C
Total assessments
levied hy COM
panies in 1910. ....., s1,4o7,s7i
Total sales of new
stock by six COM
panies in 19l0...... $40, 500
! Totaal contributed by stock
holders for new work. ..,...... 3,07S, S14
| Net dividends TO stockholders
after paying 1910 levies. ... SO, $50, ,o5t
Copper Profits.
Total yield Of copper. in pounds. 22s.-
Net corporate income OF all producing
companies. s4.S5o so9,
Net profit per pound of copper produced
2.14 cents.
| Net dividends TO stockholders after pay.
ing 1910 assessment. $3.50. .056
Actual net profit per pound of copper
produced, 16 cents.