Graham guardian., 1913-05-09
TAXATION MEASURE
Graham Wins His Point and
Whipple Votes No and
Explains Why

of two weeks and which did not end
until the provisions of Graham's
mine tax measure had been ncopor-
ated in it, the house on Saturday
passed by vote of 25 ayes to 8 nays,
senate bill 3, the general taxation
bill.
Senate bill 3, as it was introduced
and passed by the senate, was a
measure placing certain powers and
duties along the lines of the assess.
ment and taxation of properties in
the hands of the state tax commits
sion. When this bill reached the
house the claim was madeby Graham,
of Cochise, that the bill gave the
commission unlimited power in the
assessment and taxation of mining
properties, which he declared was
wrong. The members of the tax
Commission, he said, were not min
ing engineers and had no idea of the
true value of mining properties,
therefore they could not equitably
value the producing mines of the
state unless they did it under fixed
rule. To provide such method
Graham introduced house bill 81,
which provides for the taxing OF
mines on certain percentages Of their
gross and net productions. After a
great deal of consideration of these
two bills, the house finally decided
to join them together in one bill.
which was done. Consequently
when senate bill came up for pas
sage it contained the provisions of
Lthe Graham bill, the two passing as
one bill. In voting against the bill
Whipple offered written eXplana-
tion of his vote, which was as fol-
lows:
The attempt being made to sim
gle out the mining industry and
make of this class favored one
ought never to be consummated. as
it would result in allowing this in
dustry to fix taxable base that is
much less than half the cash valua
ton of the industry, and less than
half of what other classes of proper
ty are assessed at. In support OF
the foregoing statement submit
the following evidence:
The gross output of the mines
of the state last year was in round
numbers SCI, 1853. .527. The net tafter
all expenses, upkeep, etc, was paid
was $2i, i,735, 5,5ll, which shows over
40 per cent Of the gross to be clear
.sSrofit, On the basis proposed by
Mis- measure, /. e., four times the
net plus 12b per cent of the gross
would produce l06.625,607 as a
taxable base. Now this would show
from the net returns from the mines,
the producing mines, an income up
wards of % per cent. On the other
business Of the state, except, per-
haps, the banking business, will show
a clear profit of 8 per cent and no
other line of legitimate business in
The United States or the world will
show, for the magnitude of the
business done, such profits as are
neS enjoyed by the miners Of Arizona
and no other business can be carried
on with such system and care, and
such an absolute knowledge and
certainty of the results.
If farms were assessed on the
same basis as is proposed for mines,
lands now valued at 500 an acre,
would be taxed on basis of $34 an
acre. and the average farm for the
sntlre stats would not shQw . taxable
base of more than s25. Live stock,
the mercantile business and all other
classes would have to be lowered,
thereby perpetuating the present
system of swearing to valuation
of our property that is false. On
the other hand. il mines, as we'll as
other classes of property, were as
.ssssed at actual cash valuation, we
SotiId shoW ip our state the largest
per capita wealth and the least rate
Of taxation of any Of the states Of
the pnionl the two being the eond!=
tians that would appeal TO the think.
Ing people Of the United States most
strongly.
Therefore, do not feel that !
can be true to the people of the state
by supporting this bill in its present