The Daily Missoulian. [volume] (Missoula, Mont.) 1904-1961, 1917-01-19
HEAR KELLEY
Able Presentation Of Mining
Interests Made in Tax
Investigation.
Continued From Page One.)

CONTINUED From Page One.)
burden maintaining the government
of the state.
The speaker stated that the Anal
gamated company was prepared to lay
the cards on the table. That he was
not present in order TO defend any tax
dodger and that he was not unmind-
full of the fact that public distrust"
had been awakened against the min
ing companies of the state.
After defending taxation, Mr.. Kelley
took up the question OF mines as they
are taxed under the present provisions
of law. He explained the deductions
permitted by law and how already the
surface of the ground, the improve
ments on the ground and the net pro-
ceeds of the mines are reached by the
government and taxed. He then pro-
ceeded to a comparison of mining with
the other industries of the state,
dwelling at length upon the specula-
tive character of the mining business,
the principles upon which mines were
taxed and the fact that it was impos-
sible for the mines to operate under
one in use at present.
aside from the uncertainty of the
business" said Mr.. Kelley. "the mining
business stands on a plane particu-
larly applicable to it alone, because
of the necessity for complete
amortization of capital before any re-
turn can be regarded as profit. 1t is
said that enormous dividends are
earned by the Butte mines and that
the business is tremendously profit
able and such a conclusion is readily
reached from q cursory examination
of the figures. But do you realize
that after all mine is like a piece
OF cheese from which a slice is taken
in each days operation that, be the
total amount large or small, there is
only so much commercial ore existing
in any deposit or in any locality. that
it is impossible to either replenish or
ground"
Mr. Kelley continued his argument
by asking the committee how it hoped
to come to a valuation of the ore un-
der ground and how it could consider
it fair proposition to tax wealth
which would not be within reach for
| several years and would. under the
bills proposed. be taxed each year be-
fore it came to the surface Of the
ground and was converted into wealth
He then took up the question of the
importance of mining in the state OF
Montana and offered the committee
figures on the amount Of money which
was put into circulation in the state
through the Amalgamated company
alone.
"They say that the Amalgamated
company is operated by foreign cap
ital." said Mr.. Kelley. land that the
profits are going out of the state
Five dollars out Of every six produced
by the Amalgamated company is put
into circulation right here in Mon
tana. The only money going from Tho
| state is that which is sent out In the
| shape Of dividends and there are co..
600 shares with an average of less
than a hundred shares to each stock.
| holder If I were to come before 70,
| tonight with the statement that hat
| the money to develop any industr!
in the state Of Monana which would
realize within it's confines the amou
Of money which the Amalgamatet
company distributes here each yea
and asked you only for protectio,
against any tax except as now pro
vided by law. what would be you
answer Would you not welcome m.
proposition?
The speaker then submitted to tn
committee figures on the expenditure
which had been made in the state dur
ing the past four years and passe
from that to comparison of tn
taxes paid by the Amalgamated com
pany and those paid by farms, live
stock, railroads, solvent credits. i'm
provement Of real estate and stocks G
merchandise. In this connection h
stated that whereas the Anacond
Copper Mining company paid on a
assessed valuation of $31,310,s93, Q
6.42 per cent OF the total assesse
valuation Of all property in the stat'
the Burlington paid on something owe
two million. the Milwaukee on ST..
4l6.23O, the Northern Pacific on $27
039.634 and the Great Northern O
500, 992.5S0.
I'm considering this point" said NJ
Kelley,l '.the question Of the perpetuit
1 of the railroad business tass compare
with that of mining is distinctly on
to be considered" ..,.'g ,sss,ss