The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1917-10-25
MINING COMPANIES AND THE
EXCESS PROFITS TAX.

ly every citizen, was admittedly pass
ed by both houses 81 congress with
lesS consideration" and deliberation
than is usually given to a measure
that involves the expenditure of a few
thousand dollars from the public
1t to the senate with the admission by
the majority leader that it was imper-
feet, that he and the members of the
house generally had no definite knowl-
edge of its provisions, and that 1t was
up to the senate to revise II and place
il. in workable shape The senate was
no more successful than the house,
and it was finally referred to con-
ference committee, when the essential
parts of the law were rewritten, but
without improving it's construction HI
the matter of making it a more equit-
able measure and clarifying its mean
ing. The bin as agreed upon in con-
ference was accepted by both houses
with hardly pretense of analysis and
discussion, and the president seems to
have shown equally little interest In
its provisions when he affixed his
signature which made 1t a law. That
there We're unjust provisions in the
law and inequalities which should have
been Strengthened out was admitted by
both senators and representatives, but
they voted for ii in order to get it
the announced purpose of taking it up
for revision when congress meets
again. That this is true is sad re-
Election upon the men who make up
the greatest legislative body in the
world. We almost said deliberative
body, but the excess profit law indi-
Gates that laws are passed without de-
liberation.
No one so rar appears to be able to
interpret the law as it applies to any
particular class, and this is true of
the mining interests particularly. But
one fact stands out clearly, and that
is that under any reasonable construc-
ton, the miner is 1.-THE goat" Capital
ization seems to be the basis of tax
alton of mining profits, but the defin-
ition of capitalization as given in the
law is so confusing that no lawyer has
Yet essayed the task of explaining
what it includes. 1t is evident that
the companies with small capitaliza-
tton are to be the hardest hit. The
capital stock of a mining company is
presumed to represent its original cost,
pul III the case OF most profit earning
mines the par value of the stock is far
from representing the cost to it's pres
emit holders. The Hecla Mining COM
pany is a fair illustration of this. The
company is capitalized for $250.00O
divided into 100000 shares of the par
value of 25 cents each At the time
this revenue law was passed the stock
IF the company was quoted at SO
share, and much of it represents an
Investment at that figure or there
lbout, According to the new law the
decla will be allowed profit of Q Der
,ent on the original capitalization of
'25O,o00 and will be required to pay
graduated tax on all profits above
hat amount, eliminating in tax of
70 per cent on all profits in excess of
y per cent of the capital stock. Com
'are this with companies capitalized
or one, two or more million dollars !
nd the rank injustice of the law will |
e apparent.
The law also fails to take into ac-
cunt the difference between mining
nd other industrial enterprises. The
cry necessities of war have forced
ne mining companies to exhaust their
esources to supply metals for the
overnment, and now the government
lrns round and levies a tax that
'kes the big end of the profits and
aves the mine with reduced resources
n future profits, whereas other in
istries retain all the elements for
ture profitable operation.
1t is not believed that the mining
terests will submit to this unjus,
W without making an appeal to con- .
ess for revision on fair and equit-
lie lines. The mining companies are n
Directing to the excess profit law, $;
t they do insist that it should be II
anged lin manner that will give ?
I'm a square deal"