El Paso herald. (El Paso, Tex.) 1901-1931, 1916-05-02
MEXICAN MINING
TAXES INCREASED
Decree Designed to Break
UP Big Holdings and
Help Small Operators.

Mexico City, Mex, May "A general
increase in taxes on all large mining
properties in Mexico, with a cores
ponding benefit for the small opera-
tors is contained in the new mining
decree issued Monday night by Gen
| Carranza The idea of the government
is to break up great mining holdings
and especially those which are more
speculative than productive in their
nature
The new tax is payable in gold. 1t is
divided into two general classes-that
to be levied on precious metals and
that on ores other than silver and GOLD
The unit for taxation is the mining
claim of one hectare, or two and a half
acres, and is to be assessed as follows:
On gold and silver mines. at the rate
of Sc yearly on from one to ten claims:
II to 80 claims, $12 each yearly; from 81
to 100 claims, SIS per claim yearly; on
1O1 claims and upwards, $24 each an
nually.
The trainers Of the law claim that
the average holding of a mining com
pany does not exceed so pertenencias. or
100 acres. and that the largest company
should not hold more than $50 acres for
development For that reason the tax
has been graded into minimum, medium
and maximum, with a prohibitive tax
on all holdings over 250 acres
Many Claims May BE Released.
Many American companies have hold
ings aggregating $500 acres and one
company in northern Mexico has de-
nounced nearly $4,000 acres of mineral
land. Representatives of some of these
large corporations say that hundreds
Of claims will be let go by them be-
cause of the war tax.
The government asserts that this Is
the very purpose of the law. in order
that smaller operators may be given a
chance to develop lands which other
wise would lie idle
Tax ON other Mines.
On mines bearing non precious met
ais the tax is to be levied as follows:
From one TO so claims Sc year
Fifty-one to 200 claims. S12 year: on
POI to 500 claims, SIS yearly; on sol up,
S24 a year.
In the above progressive scale the
rate is to be applicable only where the
properties are owned by a single or
ganization Taxes under the new law
viii be applicable from July 1 next
Export Tax on Bullion.
An export tax on all bullion shipped
out Of the country. to take immediate
effect, will be applied as follows:
On gold and silver 10 percent ad va
loren; other metals, five percent ad
valorem.
As Mexico is the greatest silver pro
ducing country in the world, shipping
immense quantities OF bullion to Eu-
rope and the United States monthly,
and the foreign investments in silver
mines exceed $500, 900, the govern
ments revenue from the new mining
and export taxes is expected to be very
large.
Tax According to Markets.
The taxes will be fixed in accordance
with market fluctuations the ores to be
assayed at the expense of the shipper
nrrsH H~uF H.
dreds Of mine owners have pending
taxes to pay because they have awaited
final action on the matter by the gov
eminent.
As an offset to this, the treasury do |
partment issued a statement reiteratiur
that it viii never repudiate the old pa
per money issue, ana referring to tho
new issue, adding;
Would Avert Money Panic.
IF the public viii have confidence in /
the honor and loyalty OF this financial /
program of the COnstitutiOnalist gov /
eminent; If it will not rush to sell the (
old paper at any price. thus serving (
as a tool for the brokers. if il will hold (
this money which inevitably will be /
recognized by this government, panic |
will be averted.
IF the alarm continues. the Constiiu- /
tionalist government will be in its /
rights to acquire this old issue at a /
very low price, thus redeeming it at the !
expense OF the people. The public IL {
the exclusive holder Of this money and !
must have confidence in this govern ]
ment. 1t viii be rewarded by receiving ]
a fair return for the money it holds. /
Otherwise this money would be prac- |
tically worthless"
hull Fights Taxed.
Gen. Carranza issued Monday night L 1
leeree imposing taxes of from 10 to % !
percent on all theatrical performances !
bull fights. prize fights and other pub s
lie spectacles, the decree to take effect /
Nay 10.
agreement. II it was given /