Gilpin observer., 1911-03-16
BURDENsoME TAXATION.

During the past six months the
Colorado Chapter Of the American
Mining Congress has been making an
exhaustive investigation of the con-
dition of the mining industry in the
state, and the causes Of the decrease
in metal production during the past
decade. This inquiry was conducted
by experts and professional men Of
high standing in mining circles, be-
ing among the ablest and best in
formed mining men in the state.
That the mining industry has been
languishing for eight or ten years
will not admit of dispute, since the
metal production of the state has
steadily declined from $53,566,00O in
1900 to $780, 900 in 1909. Several
causes have contributed to this de-
crease, although it is pretty well es-
tablished that it is not due to any
valuable deposits of mineral. Experts
unite in saying that the mineral re-
sources Of the state have been little
explored as yet, and that the posi-
bilities for profitable mining through
out the great mineral areas of the
state are as great as in any state
in the Rocky mountain region. While
few small lodes may have been
worked out" SO far as present min
able ore is concerned, no district of
consequence in the state has been
anywhere near depleted of it's ore
deposits, even where mining has been
carried on for fifty years. The per-
manence Of the industry in any camp
is not likely to be affected by ques-
tion of ore supply for at least an
indefinite period, while the opening
Of new producing sections and new
properties has been occurring with
steady frequency for a number Of
years.
The decadence of the industry
must. therefore, be attributed to 9TH
er causes.
One of these causes. according to
the Colorado Chapter, lies in the
legislation adopted in recent years,
which has had the effect of saddling
upon the industry burdens which
only the richest of camps and mines
could long endure and thrive. Mining
men complain bitterly of the fact
not only has the state done nothing
of consequence to assist in the de-
velopment of its leading wealth-pro-
ducing industry, but that laws have
been enacted which have operated to
the serious detriment of the industry,
actually causing in many instances
the closing down of properties, the
discouraging of new work, the dis
mantling of mills and shaft houses,
and through these means have add
ed to the difficulty of securing cap
ital for mining enterprises.
1t is the claim of the Colorado
Chapter that the Revenue Law of
1902 is one of the chief causes o.
the decrease in mineral production
since that time, in that mining prop
erty and particularly non-producing
claims, are being assessed at a fig
ure unjustly high, and in many cases
even beyond what the law actually
requires.
The mine operators are therefore
opposed to certain provisions OF
House Bill No. 306, now before the
State legislature. which will increase
the assessment of all mining property
in the state to about three times
the present assessment, thus in
creasing the burden of taxation The
adoption of this bill as it stands
would amount to the practical copfis-
cation of much mining property, and
pile additional hardships upon men
who are trying to raise money for
the development of their claims.
The following table will show TO
what extent this bill will increase the
assessment of mining property in
this state:
Revenue Law Of 1902.
Non-producing claims ----s 1859
Producing property ----- $3.50, sos
improvements ----- 4,779, $40
TOTAL ------ ------ ----S2O, ,IlS,26s