The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1913-12-18
Mullan, Idaho, December II

To the Editor of The Miner:
High taxes Is the cause of much
wailing and gnashing of teeth at this
season of the year, especially so as
the first Monday in January, the last
day for payment without penalty,
draws nigh Often there is much JUS
tice in these cries Of complaint A
reasoning person will swallow without
protest most nauseous medicine af-
ter being shown the necessity for it.
but. when forced upon him with no
apparent beneficial reason, he is apt
to resist. Show the taxpayers how
their money is spent, give them the
reasons for the assessments, let them
see that all property is bearing its
proportionate share of taxation ana
as rule, they will be reconciled to ac-
cept their portion of the burden
No doubt there Is much waste of
public moneys through extravaganza
and poor judgment but another i'm
pOrtant factor in the cause Of high
taxation is the failure to properly as
sess the large property holders.
Federal Escapes Just Taxation.
The continual Tits between local
boards and state boards of equaliza-
tion show the efforts that are ever be-
ing made by owners of big interests
to evade or to minimize their taxa
in OF
as we'll as in Idaho, and Shoshone
county has had many instances of de-
liberate evasion of the payment Of
taxes; but one of the most open and
perpetuated by the Federal Mining
and Smelling company under the
terms Of an ore contract entered into
with the American Smelling and Re-
fining company in September, 1909,
for a term of 81 years. The minority
stockholders Of the Federal company
are now contending in the supreme
court Of New York for the part Of the
profits of the companys business of
which they have been deprived and
which amounts to about 100000 an
nually for the past four years, vary
ing somewhat with the rise and fall
of the lead market, and which has
been taken to swell the Golfers of the
smelling trust.
What Taxpayers Lose.
| The average tax levy in Shoshone
county for the last four years, includ-
| ing state and county, school, city and
village taxes, is approximately three
cents on the dollar. Using this aver
age rate and presuming that this sum
of 100000 was diverted to its proper
channel and the minority stockholders
got the benefit thereof and that it was
added to the assessment rolls Of Sho-
shone county. would make difference
of $4,000 annually with the amount
of taxes paid by the balance Of the
taxpayers of the county and, in the
period of 81 years, the length Of the
contract, would amount to the aggre-
gate sum Of S20S,000.
Regardless Of the outcome of the
litigation between the minority and
majority stockholders of the Federal
company, the point above referred to
remains the same. The state, county.
towns and schools have been cheated
out Of their revenue by mlsrepresen-
tation as to the earnings Of the Fed
eral mines. Thus it is apparent that
we have in our midst company en-
gagged in exhausting one of the great
resources of the Coeur d'Alenes. whose
management is willing not only to rob
nearly half of its own stockholders
but by the same act to dodge its legal
taxation and thus pilfer portion from
every man. woman and child in the
state Of Idaho.
Law Taxing Net Profits.
Section 1864 of the Revised Statutes
of Idaho defines the word met pro-
fits as follows.
THE term net profits means the
amount of money received from the
mining of said metals or minerals
from said mine or mining claim, after
the deduction of the actual expendi-
ture of money and labor in and about
extracting the metals and minerals
from the mine or mining claim, and
Transporting the same to the mill
concentrator or reduction works, and
the reduction thereof, and the con-
version Of the same into money, or its
equivalent and also the deduction Of
all moneys expended for necessary Ia
Dor machinery and supplies needed
and used In the mining operations, for
the improvements necessary In and
about the mine or mining claim, for
reducing ores for the construction Of
the mills and reduction works used
and operated in connection with the
mine or mining claim, for transport
ing the ore, and for extracting the
metals and minerals ,therefrom; but
the money invested in the mine or i'm
provements made during any year ex-
cept the year Immediately preceding
such statement, must not be included
therein. Such expenditures do not in
clude the salaries. or any portion
thereof, Of any person or officers not ;