The Washington herald., 1917-12-03
new TAxLISTS
PROvEPUzzLE
Holland Says Government
Adjusters Have Encoun-
tered Difficulties.

Every stockholder of the Calumet
and HecIa Mining Company is soon
to receive forty dollars representing
the dividend upon each share OF his
stock. The announcement was made
in Boston the other day and 1t has
caused a good deal OF comment In the
financial district for several reasons.
The capital stock Of this company Is
g, 500. COO, the par being IS dollars.
But Of this capital stock, not quite
one half has been paid for. in cash.
Twelve dollars upon each share repre-
sents the cash payments, and SIS
fepresents the liability which the
owner Of one or more shares may be
at any time called upon to pay in.
Presumably the dividend will en-
tail the payment Of a million dollars
or little under the cash payment
made upon the aggregate amount of
stock. Many have been the refer
enees to dividends paid in other years
by this corporation. Sometimes they
have been at The rate Of $40 a share,
then jumping to $50, sinking again
to s., and then leaping to a 500 a
share. But 1t is not so much the
dividends declared by this corpora
ton that occasions comment as IL Is
one or two other features suggested
by this latest action Of a great Ameri-
can industry.
Three Million Tax.
The Boston News Bureau reports
that the estimate is made that the
corporation will pay over to the gov
ernment on account of taxes perhaps
as much as three million dollars. If
that estimate proves to be correct.
then the government will receive in
taxes five hundred thousand dollars
more than the capital OF the corpora
ton There are, however. very i'm
portant questions yet to be answered
before the tax Is assessed and 1t Is
sptnised that the answer which the
Government may give to these ques-
tions will be accepted as a test by
which excess profits and income are
50 estimated as to enable the manag-
erS of other industries to gain an ap-
proximately correct idea of the
amount of taxes the government will
demand on account OF excess profits
and income.
This corporation, with a cash capi-
tai of only 81. 2OO. 900. has nevertheless
invested out of earnings 1t may be as
much as 100000 in improve
ments, extensions and acquisition of
plants and property or il the invest
ment which represents underground
operations be eliminated, then as
much as $S0,OOOOOO has been TAX
en- from earnings and invested in
properties OF this corporation.
The question which will arise
when the government fixes the tax
this corporation will pay is this
how far will this investment of capi-
tai in plants, in shafts and other
accessories for mining operations be
regarded as plant expenditure and
therefore to be reckoned with when
exemptions are under consideration.
Business men here are greatly
disturbed because they are unable
either to form any opinion Of their |
OWN or to get any reliable opinion |
from others about the attitude of I
the government respecting exemp- |
s{ons. Some are of the opinion that ]
the Treasury Department itself has
has not yet decided this point. But
there seems to be a feeling that the
taxes which the government may as
SECS on the excess profits and income
Of the Calumet and Hecla Company
will furnish a fairly good standard by
computation of the amount of taxes
they will be compelled TO pay to the
government.
Calumet and Hecla.
Some Of the investments made out
of earnings by this copper corpora
tion are unique and all of them very
important One Of them is represent
ell by the sO-called Michigan pump
which is the most powerful in the
world, and which raises sixty mill
lion gallons of water a day That
is twelve million gallons more than
the aggregate production of four
other pumps This installation was
paid for out of earnings. The Calu-
met and Hecla is conspicuous in the
Industrial world for several reasons.
First Of all perhaps it is a considera-
tion that 1t is one Of the worlds
very great yieidGrs of copper. Then
again there Is the romance associat-
ed with its early discovery and de-
Yelopment. So also 1t is spoken Of
, one Of the few remaining great
properties in which Boston capital
IL almost exclusively invested. for