The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1913-05-15

, questions come up, what Is the value
Of mining property? and how ma,
the value Of mining properties be de-
termined. A mining property can BIZ
valued from data obtained in detailed
examinations Of the property by q
mining engineer or mining engineers
who survey the property and all Its
underground workings, calculate the
tonnage, sample carefully all the ore
faces and determine the grade OF ore
in sight, estimating the various fac
tors which will influence WORKING
costs. Contrary to what you nigh
expect from reading the daily news.
papers and particularly the advertise
ments of vendors of mining stock
these points can only be determined
by trained, experienced engineers and
the examination of large mine NAV
require the work of corps Of engin-
GERS and their assistants for pcrio'
OF several months. and in importan'
cases one examination Of mimi"
property Is rarely the basis Of val,la. y
ton. but two or more independent ex-
aminations are required
Minnesota's Complex System.
The valuation method of taxing
mines is employed in some states, for
example, Minnesota, where the state
tax board has made an arrangement
with the mining department Of the
state university to do this examina-
ton and valuation Of the mines for
taxation purposes This requires the
work Of number of engineers who
are employed the entire year on IT, T.
can be readily seen that the valuation
of mines is not q simple problem bn'
It requires qualifications possessed b,
a very few and In addition it is ex.
pensive. Contrast this with the sec,
Ond method of taxing mines, the out
put or production taxation system.
Easy Check on Net Output.
The data Of production is easy t.
obtain. The United States govern
ment requires complete production
figures from every mine yearly whjcr
figures are accessible, but in addition
to this, production figures can be
checked and compared.
Mines sell their product to smetinp
plants, the receipts of the latter be
ing kept itemized for each mine sep
arately, giving complete tonnage an
n q yvh hn ne ~
mine can be readily checked and com
pared; the smelling companies sell
their output through general saler
agencies; which afford the means of !
1 further check on output.
1t Is one Of the fundamental prin.
.iples Of taxation that the simpler the
method Of taxation the better is tn
method and there can hardly be am
Inference of opinion regarding the
simplicity Of output taxation compar
ID with the complexity and expense
# mine valuation.
The Farmers Objection Answered.
There has been complaint made
gainst the system of output taxation .
II mines. 1t is made principally by L
he farmers, who say the method Is l.
nfair to the agricultural industry q
where farm lands are taxed on their g
utput and not on their capital. To 4
etermne the justice of this COM {
laint, the business of farming must T
c compared to the business of min. $
~. and the characteristic features % d
inning which have been brought ou' Q
lust be borne in mind.
The value of agricultural land de-
ends on it's ability to produce crov
nd on the possibility of making =
roflt by the working OF the land.
If some land can produce create
eld its value Is more, and If land Is
'pable Of growing n more valuable :" =.
OPP such land Is worth more thar v
nd which can only grow cheope- :"
op. This would apply to the soil It. y
If and also to the situation of thu !"
nd with respect to markets.
arm and Mine Taxation Cor,rared, W
Another thing, the value of agricul- 70
raj land. If II be properly worked NC
res not depreciate as a producer o.
ralth. 1t Is aside the point to So, u"
at as usually worked. the soil wears
t. for this puts premium on un.
ientihc agriculture and on waste II '"
rms are properly worked there is ne
probation year by year and the
Tue of the land is measured BY it,
iity to produce crops G.
Now then. as the value Of agricul-
raj land is direct function of It's
capacity, If agricultural
I'd be taxed on its value, the tax Is fr,
function of the producing capacity ia
the land. In other words. what is 10,
minally valuation tax is In real. no
production tax and there Is nc alb
ential difference between valua- sh
n tax on agricultural land and pro- gr,
ction tax for mines. CONTINUING I'M
line of argument applied to mine du
alton, II is easier to determine the me
nc Of agricultural land thru II Is tn for
erm'ne the production Of tho land -
do the latter would requ,r. y large ass
ce In the tax ass---or's office on.
ereas the former can be done with m,
oh less difficulty. for which reason Ian
would seem the better method. du,
% emphasize again a point brought the
before, It Is not my Intention to cor