Weekly journal-miner., 1914-10-07
MINE TAXATION
 WILL OCCUPY TIME

111OENlA oSpl- NO.--hliIS baAa ton and mining investments will be the principal subjects under discus sion at the annual convention of the American Mining Congress, to be held in Phoenix December to II, according to E. L. Walcott, the na- tional secretary, who is now here making preliminary arrangements for the gathering.
 The question of how mines shall be taxed is uppermost wherever mining is a leading industry" Mir. Walcott said. In my own state of Colorado we have a mine tax law that is far from satisfactory and which, in my opinion, is hampering the industry to a great degree. Here in Arizona you tax producing mines on four times their net output plus l2I5 per cent of the gross and the physical value of improvements. Un- questionably your law is more fav- orable 10 the mine operator and owner than is our Colorado statute, but I cannot secure any accurate idea as to just how it works out. Some of your mining men say that they are satisfied with it and others claim that it imposes an unjust bur den upon them.
 At any rate, our mine tax law expires on the first of the year and a new one must be enacted. We will have at least 1900 delegates in the congress and the ideas they eXpound should prove of great value when the time comes to frame the meas ure.
 "I have been speculating on the effect the Australian tax bill initiat- ed by the people of Arizona and to be submitted to the voters at the November election, will affect the mining industry if it is made law. To understand how it can be put into effect in a state where mining figures as an important industry IS beyond me. That it will result in endless confusion and litigation l am sure. Mine owners, as class, want to pay just and proper taxes and do not want to be put to the trou- blc of fighting any such statute through the courts.
 "The Australian tax bill is to give the state the right to buy any property at the valuation returned for taxation purposes by its owner. My personal opinion is that that would be confscation, and under the United States constitution no mans property can be coniscated.
 Almost any mine owner who so desires can escape taxation under the Australian system. The man who owns a prospect can return a value of s on his property, well knowing that the state never will be- gin the purchase of prospect holes, even at $ apiece. And the big company with a property worth mil lions, can return its mine at a frac- ton of its value, well knowing that the state never will have the money 10 buy it even at the reduced figure, or money to operate if after it is purchased.
 AS I said before, it is practically impossible to apply the Australian system to mines. But the eighty per cent law can be applied and it would kill the industry, in my opin- ion.
 "Thcrc arc few American under ground mIncrs. Perhaps there are more in Arizona than in other wcs- ern states, put the Americans are far ou!numbcrcd by the foreigners, even here. 1T you force mine opcr- ators to employ eighty per cent American citizens many of them simply will have to close down be- cause they will be unable to secure men 10 do the underground work.
 "Onc of the problems of the American Mining Congress is to re- store the confidence of the public in legitimate mining investments Working in this direction, we have already pretty well put the wild cater out of business. Ii Arizona wants to attract outside capital she must not hamper her chief industry by absurd laws"
 MT. Walcott is sending invita- tions to 4,00O western mine oper- ators to attend the congress. He looks forward to highly success ful session.