Weekly journal-miner. [volume] (Prescott, Ariz.) 1908-1929, 1913-04-02
OPERATORS PRESENT
VIEWS ON TAXATION
Tell Why the Finlay Method Used In
Michigan is Not Applicable
To Arizona.


tention to the fact that both Mr.
Hoover, in all his calculations, and
Mr. Finlay, in his work in Michi-
gan, based all these upon the mines
being completely equipped and that
in determining the value of the
mine the value of the equipment was
not added to the figures arrived at
by the above calculations
While admitting that in dis
trict like the Lake Superior Copper
mines this method was practicable,
Mr.. Claiming stated that he did not
think that in Arizona, in which state
the mines were of radically differ
ent classes, that a similar method
would give results which would be
fair between the different proper
ties. He said that in Michigan the
copper occurred in beds or lodes
of approximately uniform thickness,
averaging, say, IA feet; that these
beds dipped very regularly at from
30 to so degrees, and that as at
least two of the Lake Superior mines
had been wrought TO a depth of
1000 feet, it was quite proper to
assume that most of the mines could
be made to pay to that depth.
That further, after a mine had been
opened up to depth of 1000 feet
and the length OF the property, one
could get very fair idea of the
productivity of the lode per acre,
and that therefore one could pre-
dict, with reasonable accuracy. from
what a mine had produced at this
first 1000 feet, what it would pro-
duce for the balance of the 5000
feet. He said that when you came
to Arizona, you were confronted
with two radically different types
of mines. On one, he said, the ore
body lay flat, as a book upon the
table, and its total tonnage could
be readily determined by compare
lively shallow shafts or by drilling.
Ot this type was the Ray. Miami,
Inspiration and some of the mines
at Morenci. The second type was
the more or less vertical vein, as
Of book stood on edge or slightly
inclined, and of this type were, for
examples, the Old Dominion, United
Verde, Congress, the gold mines in
the northern part OF the state; also
somewhat similar to these are the
mines in the Bisbee district, in
which the ore occurs in discon-
'ected, irregular masses. In this
second type OF mine, because of the
expense OF pumping water and the
difficulties of holding the ground
open, it is not practicable to ex-
'ose large ore reserves, and there
ore, if Mr.. Finlay, or any other
ngineer 0 fequal standing, should
ONE into Arizona, he would be up
galnst the difficulty of trying to
armonize the lives of mines with
arge, easily determined ore reserves,
With the lives of those of smaller
re reserves, but yet, perhaps, with
arge prospective value, and which
ould not be definitely measured.
lie said that Finlay, himself, had
un across this difficulty when he {
Eft the copper country and attempt {
d to value the iron mines of the
tate of Michigan.
Mr.. Claiming said, that in his
pinion, the best way to value the
1ines for the purposes of taxation. I
rould be to arrive at some value, 1
ased upon either the net produc- I
ion or the gross production or a (
of the two. That, I'M {
er these conditions, each mine {
-ould eventually pay taxes based 5
pom its true value. That if mine I
lsted five years and was then ex- s
austed, it would have paid taxes +
or that five years, and at the end s
f that time it would automatically !
ease to be taxpayer; that if {
ne continued to operate success Y
lily for twenty years, it would pay I
5 taxes for a similar period, and I
nat in both cases the state would [
eceive revenue during the time that t
ne mine was wrought and received t
he protection and advantages of the t
overnment of the state of Arizona.
Mr.. Claiming was also strong inI a
is contention that after determ- t
ling the value of the mine upon {
lis basis, that it was not proper to !
ill further increase the assessment r
{ the mine by the value of the t
line reduction works by its con- f
entrator or smelter or both. He r