Weekly journal-miner. [volume] (Prescott, Ariz.) 1908-1929, 1913-04-02

lacking III attention from inc PuDlC
generally, one of the most impor-
tant sessions held at the capitol
during the present session was the
public hearing this morning con-
Quoted by the Ways and Means
Committee of the House and the
Finance Committee of the Senate
on the subject of mine taxation.
Senator Wood of Maricopa county
presided and nearly all of the mem
bers of both houses were in at
tendance as we'll as a general repre-
sentation of the mining companies
of the state.
Mr.. Carmichael of the Arizona
Copper company was the first to
address the meeting, outlining in
detail the work of the mine oper-
ators, in the effort they had made
last summer to agree on a bill
TO propose to the State Tax Com
mission. He also outlined to the
committee his views on the sub
iect under consideration. Mr. Will
L. Clark of the United Verde COM
pany, also addressed the committee,
as did Mr.. Amster and Mr.. Bonnie
of the Shannon company. Mr. Car
michael favored a bill providing for
a valuation fixed by taking into con-
sideration the net and a small per
cent of the gross earnings. Mr..
Clark said that while he, personally,
might agree to a valuation fixed
by considering the net alone, he
had with the view of agreeing to a
bill all might subscribe to, agreed
to the net and gross plan. Mr.. Ben
ME and Mr. Amster both urged
valuation determined by considera-
: tion OF the net earnings alone.
OF all the gentlemen representing
the mine operators who addressed
the committee, other than the mem
bers of the Legislature, Mr. J. Parke
Claiming, a mining engineer of note
ard who is vice president of the
Miami Copper company, probably
best outlined the position on mine,
taxation of d majority of the mining
companies Mr.. Claiming prefaced
his remarks by the statement that
he had had some ten years expert
ence in the Michigan copper and
iron mines, and that some two years
ago he had been called in as the
independent engineer to put a value
upon the Calumet & Hecla Mining
company and its twelve subsidiary |
companies for their proposed con
solidation. That on the strength of
the work that he had carried out
at that time, he had been asked
by the Michigan State Tax Com
mission to undertake the valuation
of the Michigan mines, but on ac-
count of his connection with the pre-
vious piece of work he had declined
to do so, and that Mr. Finlay had
been finally selected.
Mr.. Claiming said that no doubt
the committee were generally in
formed as to the Finlay method of
valuing mines, but that perhaps they
would not be averse to his explain
ing it to them in non-technical Ian
guage.
The modern principles of mine
valuation were first classified and
brought forward by Mr.. H. C.
Hoover, a California mining engi-
neer, residing in London, England,
and of high standing His method
is the one that was adopted by Mr.
Claiming in the Calumet & Hecla
and by Mr. Finlay in the
general valuation of the Michigan
mines. According to the Hoover
method the value of a mine is de- 1
termined, first, by calculating the
annual profit which a mine may pro-
1uce, then determining as near as
possible the ultimate life of a mine
and then, by the ordinary actuary
table, calculating the present value (
Of its annual profit over the num-
Der Of years represented by the life
Of the mine. The profit, per year, {
was determined by taking an aver /
age selling price of copper and de {
Quoting from the total income the {
proper expenditures for mining and
treatment. The life Of a mine was
determined by careful examination
Of the maps and the undeveloped
area of the property The actuary /
table adopted was one in which the .
investor was supposed to receive S ,
per cent net upon his investment, I
he balance of the dividend, If put {