The West Virginian. [volume] (Fairmont, W. Va.) 1914-1974, 1915-11-10
u. 5. Will LEAD IN
MINING OF GOLD
British War Taxation viii
Drive Control of Great
IndustrytoTh is Side.

LONDON, Nov. 1o.-tcorrespond.
ence Of the Associated Press
American supremacy in gold mining
ID one OF the probable results of the
new war taxation in Great Britain.
While the large gold mines OF the
world have been mainly opened and
managed by American mining engi.
neerrs they have been owned by the
British because OF q system OF finance
which brings public money TO the
support OF mining much more gener-
ally than In America where the in.
vesttng public does not take the same.
interest in the industry. This struc.
ture whereby London has become the
mjHing capital OF the world. is now
threatened by the new excess prof
Ats tax one OF the features Of the
new war budget.
Discussing the effect of the new
tax, q prominent American mining en-
gineer said: ALREADY orders have
gone out from London to transfer to
American companies several mines in
South and Central America, and plans
for an extensive transfer OF control
of other mines are under discussion
In the city. Even in ordinary times
the insistence of the British authors
ties that income tax must be paid on
ell shares of companies controlled in
Great Britain regardless of the loca-
ton OF the mine or residence of the
stockholders had driven some com.
panies away, notably the Ell Orc of
Mexico largely owned in France which
moved its offices to Paris two years
ago.
THE most recent taxation makes a
more general migration almost Ger.
tain. The new budget proposed a fifty
percent tax Of the excess profits of all
British companies for the Iperiod since
the beginning OF the war. This ex-
cess is to be determined by subtract.
ing from the increase of the current
year the average income of! any two
Of the preceding three yearsr. This
would be particularly hard on any new
business, but extremely SO in the case
of mines which have Just begun to
produce. since in their case there
would be nothing to subtract, and con-
sequently the tax would be fifty per-
cent of the profit Of the year. This
new import, &c is to be noted, is in ad-
ditton to the ordinary taxation in
GLIDING the incomelt tax. The effect on
new enterprises would be e%speciallyse-
we're In the case of mines since they
require liberal expenditure through
several years to bring them to pro.
duction. The Brapan In South hfri-
ca, for example, opened by W. l.. Hon
mold, d Michigan mining engineer. alb
sorbed six million dollars in six years
and then began to make q profit of
about one and one-half million dollars
a year. The Spring mine nearby Is
now building a anew plant and would
normally soon come into production.
These companies, though organized in
South America, and already paying
heavy regular and special war taxes,
would come under the new plan. The
gold mining interests point out that,
unlike the rubber and tea companies,
they are not able to change an in
crease due to the war on their pro-
duct. Gold has not risen In value as
a result OF the war, but the cost OF
mining has risen materially as a re-
suit Of labor shortage, disorganized
transport and increased cost of sup
plies. Dividends from a mine are q
wasting asset and taxing these profits
is like taxing a man on the money
he draws from a savings bank.
Representations are being made
and some notifications of the origi-
nal plan are respected. but in any
event the taxation on mines is sure
to be heavy with no opportunity to
Irecoup by raising prices. a number
OF companies have issued orders to
cut down production to the average
OF previous years and are stopping all
work of expansion.
"As Great Britain's ownership OF the
great gold mines extends around the
world and into many countries, wide
changes In the industry are certain
and they may become of primary i'm
portance to the growth, Of America
in financial power"
Youth try Il once, won't you? II you
will, you'll repeat. Breakfast Barley.
Made in West Virginia, " by the Bar
Hhl#E To.