Gilpin observer., 1914-01-01
DEFINITION OF GROSS OUTPUT


gross output, as rendered by the
supreme court:
Such being the plan of assessment
when considered in connection with
the language employed to define
gross proceeds of gross value and
the amount of the net proceeds it
must be apparent from simple read
ing of the statutory provisions, that
each time the word gross is employ
ed it was meant that the gross val
ue of the production per annum, was
the value of such production with
out deduction.
| "Gross as used in the statutes un-
der consideration has a meaning that
is well understood. 1t means the
whole or entire total without deduc-
ton whatever The gross value of
ore extracted clearly means the COM
mercial value of the precious or
other minerals which it may contain,
without deducting any expenses in
Cured in producing, selling or reduc-
ing it,
The supreme court, it is presumed,
merely passed upon the law as they
found it, not upon it's reasonableness
or constitutionality.
, The law provides that so per cent
of the gross output of mines shall
be assessed and in addition, 100 per-
cent of the net output. This is dodble
taxation to begin with.
The law discriminates in not tax
ing the farmer on the gross value
of his crops, and the net value of
what he feeds his cattle or what he
may sell.
1t is a good deal like taxing tt
miner at $1.29 an ounce on every
ounce of silver his ore contained,
which might be considered fair, mas
much as the government puts this
valuation on it after it is coined.
| Or tax the merchant on the full
| value of the goods he carries in
stock; tax him so per cent of his
gross sales, and 100 per cent of his
net sales.
| How an assessor is to arrive at the
gross value of ore as it is mined
is matter that never entered the
thick skulls of the lawmakers. He
can just as correctly arrive at the
value of the ore before it is mined.
! Ten or more tons of ore is mined
that does not become commercial un-
til it is concentrated. 1t may cost
the miner 80 per cent of the contents
of the actual mineral value of the
ore to put it on the market, yet he
must be assessed the gross value in
all the ore contains whether he ever
realizes on it or not.
Was there ever a more unjust or
unreasonable law enacted?
| The following is an apt illustration
of the workings of the gross assess
ment plan:
Take hundred ton lot of ore COM
mon to this district. 1t carries 40
ozs. silver per ton, 10 per cent lead
and 33 per cent zinc. The treatment
| charge on this ore would be $40 per
ton, to which must be added $11.50
per ton as a penalty for tie zinc it
contains, so that in reality the treat
ment charge is S21.5O per ton.
Value of the ore after deducting
treatment charges would be $3.50 a
ton, or 100 tons would be $4S0.OO;
Freight at $1.25 per ton, $125.00; the
hauling from mine to mill, $1.O0 per
ton, 100000; and the amount receiv-
ed for hundred tons would be $255.
The gross assessment law provides
for no deductions whatever. The ore
must be figured on the gross value
of the metals it contains; therefore,
forty ounces of silver at $O.5S pcr OF.
is $23.20; ten per cent lead-20O
pounds-at $4.1O per 100, $500 and
33 per cent zinc-660 pounds-at
$5.17 per 100 is $34.12. Value per ton
for assessment purposes is $65.52.
One hundred tons is $6,552.00.
| Upon this amount the miner must
report s3.275 to the assessor for as
sessment, although he has received
/, but $25500 for his 100 tons of ore,
out of which he must pay his mining
expenses.
And that isn't all. After being
charged $1,15O.0O as a penalty for the
zinc the ore contains, he has to go
the assessor and report $1,706.00 for
taxation upon that same zinc that
has already cost him dearly.-George-
town Courier.