The Wallace miner. [volume] (Wallace, Idaho) 1907-current, 1917-01-25

allowed being for the absolutely me-
cessary expense incurred in manu-
featuring into wealth its precious con-
tents.
The Fairness of 1t.
Could any principle of taxation be
fairer than this? Is there any prin-
ciple of taxation more logical than
this. and upon what principle of
either. reason or logic can an attack
upon this method of taxation be sus-
tanned? If the proposals should De
carried out to tax in advance Of ore
extraction. upon speculative valua-
ton. the contents of a mine, and II
we should further assume that III
carrying on the workings of the
mine. there should ultimately be
reached and developed and extracted
sufficient ore to realize the value so
assessed against it, which in most
cases would be merely predetermined
the basic objection exists that such
tax is cumulative in character BY
that / mean that ton of ore contain
ing so pounds of copper 100 feet be-
meath the surface of the ground, is,
until that ton of ore has been reach
ed as incapable of being considered
wealth as would be the same ton OF
ore IL 1t were at the bottom of the
sea- 1t is not the fault of man. 1t
does not lie within his endeavor to
change this situation. 1t is utterly
beyond his control. Therefore, if to-
day that ton of ore is taxed, impossi-
BILE as 1t is to reach it, and bring 1t
into possession of wealth, there has
in advance of any possible use to
which it may be applied per cent of
it's entire value. If you do that the
next year there has been taken away
Is per cent of it's value. And so on, the
process of destruction by taxation
will continue until there will come a
stage in the development of every
mine where the aggregate of the cum
against the value of the ore in the
ground, and when the point has been
reached that the tax, plus the neces-
sary expense of extraction, exceeds
the total value, mining must stop.
The mines of Butte have been
worked continuously for 80 years II,
without compromising interest, the
tprinciple advocated by those who ia
vor the abolition of the net proceeds
theory, had been followed, today 80
per cent of the value of the ore that is
being mined would have been paid in
taxation, and the 10 per cent of re-
naming value would be entirely in
sufficient to justify the extraction of
the ore. No parallel exists for this in
any ether species of taxable wealth,
because no other species of taxable
wealth is completely and finally ex-
hausted by the contamination of the
act of giving it value.
Exhaustion.
Fourth say exhaustion by the act
that gives it value. | mean exhausted
so far as the mine is concerned, but
by no means exhausted so far as tax
alton is concerned, because taxation
attaches at the moment of extraction
and when the metals have been ex-
tracted from the ores and converted
into property, that has a utilitarian
value wherever that property may go;
wherever the wealth that was OBJ
tanned from the sale of those metals
rests, the proceeds of the mine are
subject to perpetual and enduring
taxation as long as the product there
of continues in the form of tangible,
corporal, useful wealth or substance.
Importance of the Mining Business.
| should like now, with your per-
mission, Mr.. Chairman, to direct my
remarks for few moments to the i'm
portance of the mining business in
this state In doing this, l wish at
the outset to be absolved from any
intent to overestimate or eXaggerate
that Importance / do not wish mere
ly to present an imposing array of
Figures, but | wish to invite your at
tention to the far reaching character
of the legislation which you propose
and to urge that the matter be calmly
and dispassionately considered before
faction is taken which may vitality af-
feet so many interests and so many
people as are engaged directly in, or
indirectly have common interests with
this great industry.
1t is difficult indeed, without reflec-
ton, to obtain any comprehensive
grasp of the never ending flow of
casual relations which one impulse
may set in action. The vast and COM
plicated structure of the modern
world is built upon commerce and
trade Time has passed when man
may be said to be in any sense self
sustaining, in that he possesses the
ability to provide directly for all his
wants. The marvellous transformation
that Is beyond the capacity of the
brain to comprehend which has taken
place in the last half century in the
means of communication, methods of
transportation and facility for distri-