El Paso herald. (El Paso, Tex.) 1901-1931, 1915-11-11
BRITISH MINE
RULE MENACED
New British Tax Will Add
to U. S. Supremacy in
Gold Mining.

London. Eng. Nov. 11.-American SUI
premacy in gold mining is one Of the
probable results OF the new war taxa
ton in Great Britain. While the large
gold mines of the world have been
mainly opened and managed by Amer
lean mining engineers they have been
owned by the British because Of a sys-
TEN of finance which brings public
money to the support of mining much
more generally than in America where
the investing public does not take the
same interest in the industry. This
structure. whereby London has become
the mining capital of the world, is
now threatened by the new excess
profits tax" one of the features Of
the new war budget
Mines Are Transferred.
Discussing the effect Of the new tax,
a prominent American mining engineer
said; Already orders have gone out
from London TO transfer to American
companies several mines in South and
Central America. and plans for an eN-
tensive transfer Of control OF other
mines are under discussion in the city
Even in ordinary times the insistence
of the British authorities that income
tax must be paid on all shares of com
panies controlled in Great Britain re-
gardless of the location Of the mine or
residence Of the stockholders had driv-
en- some companies away. notably the
FL 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 certain
The new budget proposed 30 percent
tax Of the excess profits OF all British
companies for the period since the be
ginning of the war. This excess Is to
he determined by subtracung from the
Increase of the current year the aver
age income of any two Of the preced-
ing three years This would be par
ricularly hard on any new business
but extremely so in the case of mines
which have just begun TO produce.
err n.a4
nothing to subtract, and consequently
the tax would be 80 percent of the
profit OF the year This new import
il is to be noted. is in addition to the
ordinary taxation including the In
come tax
Effect Severe on New Enterprises.
The effect on new enterprises would
be especially severe in the case of
. mines since they require liberal eN-
penditure through several years to
bring them TO production The Bra K
, pan in South Africa. for example
opened by ". L HonuOld. n Michigan
mining engineer absorbed $4,000, 900
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 new
+ plant and would normally sOou come
into production. These companies.
though organized I'm South Africa, and
already paying heavy regular and spe-
cisl war taxes. would come under the
new plan
Urge ModificntiOn.
Representations are being made
and some modifica tons OF the original
plan are expected. but IN any event
the taxation on mines is sure 10 be
heavy with no opportunity TO recoup
by raising prices a number Of com
panies have issued orders 10 cut down
production to the average Of previous
years and are stopping all work OF eN-
pansion-
"ass Great Britain's ownership Of
the great gold mines extends around
the world and into many countries.
wide changes in the industry are Ger
tain and they may become Of primary
Importance TO the growth Of America
in financial power