The copper era and Morenci leader., 1915-04-02
Illuminating Discussion of a Vital
 Question Is State Economics. FAIR PLAY FOR THE MINES States Greatest Producers Treated
 With Scant Ceremony by Legisla-
 ture.


 Writing in the Arizona Gazette
 member of the Second Legislature, | just adjourned, says:
 ''The law under which were taxed
 the mining interests of this state ex- pired by it's own operation while the | Legislature was in session. The law
 had been enacted by the last Iegis-
 lature after it's passage had been rec
 commended by Gov. Hunt in his mes
 sage.
 Few men know much about taxa
 tion. Paying their taxes, they grumble
 about the amount, and let it go at
 that. The mine tax bilF has been
 widely discussed and false impress
 sion has been created in the public
 mind. A brief review of the bill and it's provisions will be in place.
 "The tax commission was wished
 upon the people of this state by the first legislature, and as was explained
 to the people during the late campaign by candidates for reelection, they
 have quite succeeded in lowering the
 tax rate and raising the taxes to the
 present dizzy height. and, quoting Jim
 Goodwin, That's going some.'
 Tn the states where mines are op-
 erated various methods are employed
 in determining what is the just share
 of the taxes to be paid by the mines. | Michigan alone has adopted what is known as the ad Valorem or physical valuation of the properties assessed, but the physical valuation is in real ity but small factor in the assess
 ments, though the nature of the de- posits by reason of a certain simi-
 larity lend themselyes more readily to physical valuation than in Arizona,
 where the deposits differ widely in
 their physical makeup. Under the law
 as applied here in Arizona all mining
 claims were classed as either product
 i've or on-productive mines. A pro- lductivemine is briefly, under the law, lone which after dedhctfng the aex-
 penses of operating does yield a net
 profit to the owners or operators
 This applies also to all contiguous mines or claims under one ownership Detailed statements from owners or toferators, to the tax commission, of location, ownership, etc., together with the snumberrof tons of ore mined, sold or treated during the period GOV cred by the statement, character of ore, kind and yield of mineral, des tailed cost of production, transporta- ton, treatment and marketing. The act provided that the tax commission should from such detailed statement determine and, compute the gross product and. it's value in money for the preceding year, and to determine the net proceeds after deducting all moneys paid for necessary labor, ma chinery and supplies needed and used To illustrate: Value of the total or gross production of a mine is $1 ,000,- 900, while the net proceeds after de- ducting all expenses is valued at $10o,000; the commission adds 12 1-2 per cent of the gross valuation of product, or one-eighth of $1,0OO, 900, J or $125,0 900 to four times the net value. or $4O0,000, total of $525, ,OQO, which is the taxable valuation ota the mine.i Under this law the mining in terests of this state paid 35.7 per cent of the taxes and the law x4ast consfds' cred fair and just. Though it did not. quite equalize among the mines, yeti it came near enough to be acceptable to all concerned. except two of the members of the tax commission. They claimed that only a limited amount expended in developing could be charged as current expenses; also that taxes could not be charged as ex- pense, nor the payment for damages ! to workmen employed in operating | the mine for personal injury suffered | while so employed. This interpreta- ton and arbitrary ruling resulted in some feeling and in one case in lfti- gation. It was generally conceded | that the law was fair, and an act en- oodying all the salient features was | introduced in the house, and right r then the trouble began. The bill was favored by the retiring member of the l commission but strenuously opposed oy at least one of the other members, .hcugh no one offered or suggested thy better method. It was urged that because the bill had been drafted by he mining men it must be corrupt. lS
 This feeling was strengthened by he report of the tax commission, the IN eading of which would create the inn ression that anyone connected with r hines and mining is perforce dishon- . st and given to lodging and evading e he payment of his dues. This is slan- CT. Mine operators of this state are len of stainless regulations and pub- c spirited citizens, as a class, and K dodgers are found in every class, even among high state " fficials. VI
 When labor organizations, farmers, h alkers and other interests favor or d. ltroduce certain measures where e leir interests are touched such is leasues are treated in all fairness lo nd with an abiding faith in the hon. D, sty of purpose back of it all The rincipal industry of this state is en- Ia tied to. the same measure of fair E. ay that is conceded to other inter- al it's. It was urged that it was spe- fc al or class legislation, and that the me system be used in taxing farms. fu npossible. After harvest the ground in
 again prepared and will produce an- th her crop, while on the other hand ol
 takes thousands of years to create CT