davidaulloa/AmericanStories huggingface dataset:
Bisbee daily review., 1917-12-09
IMPORTANT MINING
DEAL IS CLOSED

The old Corkscrew group OF ten cop
per mines in Pine Fiat. near Goodwin
on Turkey creek. yesterday passed
under new ownership, Colonel John A.
Peacock, of Fort Worth. Texas, buying.
and Thomas Roach and Philip Healy,
the owners, selling. The consideration
was large, but was not given publicity.
The deal is quite interesting to
mining circles. as the group has been
under the ownership of Roach and
Healy for over 80 years. during
which time a large line of prospecting
has been given. The final stages OF
the transaction were attained by an
engineer of the Guggenheims making
examinations of the large mineraliZed
area, in which the porphyry dyke oi
over 1000 feet in width and for a
length of mile was carefully sampled,
returns giving an average value OF
two and a half per cent in copper,
with good values in gold and silver.
The engineer made a favorable report
to the buyer, and without any further
hesitation Colonel Peacock closed the
deal
1t was also learned that Colonel Pea
cock had had under advisement the
taking over of this group for over two
years. and was only awaiting the out
come of business matters in Fort
Worth to see his way clear to become
heavily interested. He also has other
mine holdings in the Hooper region. a
few miles south of Pine Flat, and it is
his purpose to acquire additional prop
nrfina in that fold II tc cd fb q \
this deal from a mine engineering
viewpoint had the attractive consider
alton back of it of being in schist
formation. which cuts through the por-
phyry belt, forming a desirable con-
tact. II was also stated that every
sample of the main cut was in virgin
ground. from the surface outcrop, and
not an assay was made from ores in
the old workings, where a higher con-
tent prevails.
Bisbee daily review., 1917-12-09
REPORTS DEVELOPMENT
Gray Eagle Looks Good-Drift Is Be-
ing Advanced-Gold Production
Good

OATMAN. Dec. S.-Developments
on the Gray Eagle property of the
Tom Reed Gold Mines company tend
to confirm the belief that an ore body
equaling. If not excelling. the Aztec
may be disclosed in this vicinity. The
drift on the 400-foot level of the work
ings has now been advanced for a
distance of $50 feet in ore that will
average somewhere between SIS and
$50 per ton in gold for the entire dis
lance.
There is a possibility that this ore
may extend westward for a total dis
lance of about 500 feet. while indica-
tions are that it may reach up within
100 feet of the surface, and ID is
known that the faulted apex of the
vein extends downward about 200 feet
below the 400-foOt level of the Gray
Eagle shaft.
Gold production for the month Of
November will probably equal that OF
October, which amounted to about
S245.000 for the two producing proper
ties of the district The United East
ern mill production and values may
show a slight increase, while Tom
Reed should do equally as we'll as in
October.
Sinking to the 730-foot level is nov
well under way at the Gold Ore. thras
shifts being employed for this WORK.
1t is expected that this point will
be reached before Christmas. and the
ore opened up and shipping to the
mill started soon after the first of the
year.
Sinking is also in progress at the
Oatmsn Southern. while drifting has
been resumed at the Gold Road 30
nanza On the 550-foot level of this
property vein was followed for over
400 feet carrying good values all the
way, and at the junction of this vein
with the main ledge considerable
ore body is expected to be found.
This is the objective aimed at in the
work.
Cross-cutting is in progress at the
Oatman United, the United Northern
and the United Oatman, while sinking
to the 500-foot level is proceeding al
the Record Lodge.
Bisbee daily review., 1917-12-09
AS per Apparent

eral in place as of March /. 1913,
would be compelled to make a yearly
deduction less than the actual invest
ment of its ore mined and treated, and
thereby showing earnings of a greater
amount than the actual earnings and
be allowed capital returned less than
the actual investment in the ore mined
and treated.
Also the law and the rulings of the
treasury department relating thereto
fail to specify just how the fair or es-
timated net value of the mineral in
place shall be determined. However,
if the law and the rulings base de-
pletion upon the net value of the ore
or mineral in place it should treat all
companies alike and when the fair
market value is less than the actual
investment in mine property, then the
latter should be taken in order not
to make the property show profit
when it actually had a loss
To illustrate the difference that the
two ways of figuring depletion would
make, we will say that Company A.
instead of having acquired its mine
property since March I. 1913, had &C
quired il prior TO that date. and that
about the latter. date it had had bona
fide offer for the sale OF its property
equal to five million dollars net for
the mine property itself. Then &C
cording to the rulings of the treasury
department, Company A would be al
lowed to base its depletion deduction
upon this value of the mineral depos-
its and make its yearly depletion de-
duction at the rate of five dollars per
dry ton of ore mined and treated in
stead of at the rate of the actual in
vestment in the ere. Therefore. on
1900 dry tons there would be an in
crease in the depletion deduction of
1926, 900 above the actual investment
in the ore. This would reduce the
earnings of Company A S325,000. and
would reduce the present years war
excess profit tax the sum of Sl55,325
Besides il would reduce the war in
come tax at the rate of per cent on
the total earnings, an additional sum
of $4,000. Therefore. you can readily
understand this matter of allowing
those companies who had acquired
their mine property prior to March /.
1913. 10 base their depletion deduction
upon the estimated or fair market
value of the mineral in place. or upon
an actual offer en- bloc for the prop
erty. and OF requiring all other com
panies to base depletion upon the ac-
tual investment in the mine property,
will make a difference in the war
taxes of some of the large mining
companies for the present years earn
ings OF hundreds Of thousands of dol
lars.
Uncertainties of the Present Law.
Some questions that will have to he
solved. if the distinction between min
ing properly prior to March /. 1913
and those thereafter is not abolished
are rs follows:
|. When the depletion deduction
which is based upon the net or est
mated fair market value of the min
eral IN place as of March l. 1913. is
greater than the actual investment IN
property, what is TO be done with thu
Bisbee daily review., 1917-12-09

reserve for depletion when il shall ex-
coed the original investment In prop
erty?
2. When the depletion deduction
which is based upon the net or esti-
mated fair market value of mineral
in place as of March l. 1918, is less
than the actual investment will a COM
pany be allowed to charlie off all of
the remaining balance of the actual
investment in min property against
the last years production?
3. When the depletion deduction is
based upon the estimated fair market
value of mineral deposits as of March
1, 1913. and the latter is greater than
the actual investment in mine prop
erty, then when the market value of
metal and the condition of the labor
and materials markets are such as to
make the net actual return per ton of
ore mined and smelted In any one year
less than the estimated value per ton
as Of March /, 1918. will company be
allowed TO make its regular depletion
deduction and make the business show
a loss?
4. When determining the capital in
vested for the purpose OF taxation, viii
any deduction be made from the orig
inal capital invested to offset that por-
ton of the liquidated capital that has
been paid back to stockholders in div
idends?
Conclusion.
will say that it is very evident that
the management of mining companies
should get together and see that a
united effort is made towards getting
the excess profit tax law Strengthened
out on the tax schedule and on this
matter of depletion deduction.
Personally, believe that the proper
basis for depletion is the actual prop
erty investment plus the initial devel-
opment prior to actual production, plus
interest at the rate of per cent an
nually upon the total mine investment
up to beginning OF actual production.
There is no doubt that the general
public and even large percent of the
stockholders of mining companies have
a very vague understanding of the
mining business and to this misunder-
standing is due considerable of the
present ambiguous mining laws. In
my opinion one of the reasons for this
confusion in the minds OF people in
general as to the mining business is
the lack of uniformity and definite
ness in reporting the results of yearly
operations by the companies of costs.
production and sales. etc, as set forth
in the reports of the general managers
and of the treasurers.
| believe that 1t would be to the in
terest of the mining companies to get
together and endeavor to agree upon
some uniformity in expressing the re-
suits OF operations and to definitely
set forth the meaning of the mining
terms used in expressing the results
OF operations. b. - -
The above is my Interpretation of
the war tax law as applicable TO
domestic corporations and on those
points only as set forth. There has
been 70 endeavor TO cover the matter
completely, but simply to give an out
line of this very complicated and ratl.
er ambiguous law.
Bisbee daily review., 1917-12-09
MIAMI COPPER COMPANY.
Getting Back to Normal - November
Yield About 4,000,O0O Pounds.

Miami Copper company produced
approximately 100000 pounds of cop
per during November, or 500 or nor
NAL. II is expected December output
will be 100000 pounds.
Miami should wind up the year 1917
with a copper yield approximating
44.000,000 pounds, against anticipated
production of 50 200. 900 pounds. which
would have materialized but for the
strike.
Owing 10 the interruption 10 opera
tions it is difficult to estimate cost of
producing copper for the current year,
but it will surely be much higher than
the 9h-cent average in 1916. To meet
conditions imposed by .23k cent cop
per and in preparation for excess prof
its tax the company wiped out the
extra dividend in November. which
in two preceding quarters had amount
ed to 81 each per share.
Bisbee daily review., 1917-12-09
COPPER
COPPER
Steps Taken to Furnish Small Con-
sumner With Metal - Producers
Making Effort to Increase Output

Steps were taken during the past
week by the members of the commit
tee of copper producers and the repre-
sentatives of The government to take
care of the small consumer OF copper
and considerable satisfaction Is eN-
pressed in trade circles on the man
ner in which the situation has been
handled
Five OF the largest jobbers have
been notified that they will be per
mit,ed 20 sell copper TO the trade "a,
23k cents per pound. plus per cent
az commission and profit. However
out IF this per cent the jobbers VIII
be compelled to pay the cost OF han
ding, so that it is figured the average
profit on a transaction viii De about
-. per cent.
Bisbee daily review., 1917-12-09
MAXIMUM COPPER OUTPUT Cannot BE
MAINTAINED WITHOUT SMALL PRODUCER

taxable year. This will require the
analysis of the payroll by all the
large mining companies, as any work
man under the present wage schedule
who has worked for the company more
than six months will have to be re-
ported to the commissioner of the in
ternal revenue department as having
received an income of $4,000 or more.
A tax of 10 per cent will be imposed
on the net income of any incorpora-
ton beginning with the year 1917, re-
ceived during each year and remaining
undistributed six months after the end
of each calendar or fiscal year. unless
actually invested or employed in the
business, or is retained for employ
ment in the reasonable requirements
of the business.
Incomes invested in obligations OF
the United States issued after Septem-
Der l, 1917, shall not be subject to the
tax
The Depletion Middle of The Tax Law
The depletion deduction from gross
earnings is to be made according to an
act OF September s. 1916. and the rul-
ings OF the treasury department relat-
ing thereto. This act and the subse-
quent rulings provide that in the case
of mining companies acquiring their
mine property subsequent TO March
l, 1913, the depletion deduction shall
be based upon and limited to the cap
ital originally invested, meaning sup
posedly the capital originally invested
in the mine property. while those COM
panies who had purchased their mine
property prior to March l, 1913, shall
base the depletion deduction and limit
il to the amount of the fair market
value of the mineral in place on March
l. 1913.
Why it should have been considered
necessary to make difference in the
method of figuring depletion according
to the date of organization of the mine
property is a mystery. If the deple-
ton deduction is based upon the fair
market value of the mineral in place
as of March l. 1913, instead of the &C
tual investment in the mine property.
then when the fair or estimated mar
ket value of the mineral in place as of
March l, 1913, is in excess of the &C
tual investment IN mine property the
company will have the benefit of de-
pleting a yearly amount greater than
the actual investment in ore mined
and treated, and thereby reduce its net
earnings and increase the amount of
capital returned, while the smaller and
less successful company who has cap
ital invested in mine property in ex-
cess ofthe estimated value of the min
Bisbee daily review., 1917-12-09

From the above tax schedule you
will see that according to the interpre-
tatiOa OF the law by the treasury de-
partment as to the application of the
deduction, Company A would pay a
war tax of approximately 40 per cent
more than what it would pay under
the apparent intent of the law. A very
vigorous protest is being made against
this Interpretation of the law by the
treasury department. and it is prob
able that the session of congress which
convenes today may straighten out
this matter
Capital Returned
As it is expected that the war tax
law will be interpreted that dividends
paid out of capital returned will not
be taxed Tor even if it is not so inter
preted), it will be necessary to deter
mine what the government will allow
as capital returned, which will be the
total amount set aside as depletion
and depreciation Of equipment figured
according 20 enacted laws as follows:
Under the corporation excise tax
law, approved August 5, 1909, and the
income tax law. approved October 3.
1913. the amount that can be claimed
for the years 1909 to 1915 inclusive.
from gross earnings for depreciation
is a reasonable amount for wear and
tear Of equipment and the amount that
will be allowed for depletion of mine
for the years 1913 to 1915 inclusive, is
) per cent of the value of the product
at the mine; for the year 1916 and
thereafter, the amount of depletion
that will be allowed is figured upon
the net or estimated fair market value
of the mineral in place as of March
l, 1913, or the salable value en- bloc Of
the entire mineral deposit on the lat
ter date. for those companies who had
acquired their mine property prior to
the first of March, 1913, and upon the
actual capital invested in the mine
property Of those companies who had
acquired their mine property since the
latter date.
Therefore, when you have deter
mined the amount of the depreciation
and depletion allowable according to
the laws as stated. if you have not al
ready set aside out of previous years
earrings such amount. you may charge
surplus with the amounts so obtained
and credit reserves for depreciation
and depletion.
In order 10 show what amount of
dividends you have paid out OF Cap
ital Returned, you will charge reserves
for depreciation and depletion the
amount of such dividends and credit
capital returned paid out Capital
Returned Paid Out" win show as a de-
ductiOn on both sizes OF the balance
sheet
Minor PORTS Of the Law Applicable to
Domestic Corporations.
Under the war tax law. instead OF
deduction OF tax at the source as here
tofore. il will be necessary TO give
information at the source with respect
10 all income received by citizens and
residents lof the Uhited States of
earned salaries, wages. premiums
compensations, remunerations or other
fixed or determinable gains. profits
and incomes OF $S00.00 or more in any
Bisbee daily review., 1917-12-09
Metal
Output In Ariz.

CONTINUED From Page one.)
Bisbee daily review., 1917-12-09
RECORD JEROME OUTPUT
Indicated That November Figures of
Production Will Be Highest Ever

November copper production from
Jerome. Arizona. is expected 10 figure
between l3.50O,000 and 1900. 600
pounds. of which United Verde EXien-
sion is expected 10 yield about 5000
600 The United Verde is expected to
better its October production of 1850
900 pounds. Jerome Verde shipments
will be about 100000 pounds. During
the summer months and during the la
Dor difficulties Jerome monthly pro
duction was only about 100000
pounds, or less.
Bisbee daily review., 1917-12-09
Continued From Page One.)

Having determined the net income.
it is then necessary to determine the
capital invested, and therefore in or
der that we may determine this We
will assume that Company A had an
annual pre-war income in excess of
9 per cent of its invested capital; had
invested all of its original cash and
property paid in as mine property and
equiDment; had used only the earned
surplus in the business as working
capital: and had investments out of
the previous years surplus only in
securities of the United States govern
ment; the liquidated capital or capital
returned from earnings having been
paid cut in dividends.
Capital Invested.
Cash end property paid inS3 SOC. 900
Earned surplus used in bus
mess ------------------.--. 79O,OOO
Liberty Bonds purchased
from surplus -.---------.-.------ 100000
Capital invested ---..-----S4, 100 900
Deductions:
9Gf of invested capital -s 4S1,10O
Nominal .-..............--.-.-......---.. 5000
Total 4o4 ,lUU
Any interest received on the 315 per
cent Liberty bonds would be included
in either the deductions or deducted
direct from the net earnings. Also
the net income would be credited with
the amount OF dividends received from
stock or from the net earnings of any
other corporation taxable upon its net
income for the additional tax. The
earned surplus used in the business,
as set forth in the above statement, is
composed of:
l. The average monthly operating
expense multiplied by five, which
gives the amount of money invested to
carry the production from the time it
was mined until the returns are re-
ceived from the sale of the refined
product.
= The average of the monthly OPP
Grating cash balance, monthly accounts
receivable balance. and me monthly
materials and supplies balance. less
the average of the monthly accounts
payable balance.
Having ascertained the capital in
vested, and the net taxable earnings.
we apply the rate of taxation as fol-
follows:
Net earnings -.---.-------------.--.S1,6 GAO, 900
Deductions allowable ----.-- 400
Bisbee daily review., 1917-12-09

NEW YORK.-Directors Of the ah
Copper. Chino Copper. Ray Consoli-
dated. Nevada Consolidated and Butte
and Superior companies met Thurs
day when action on the dividends for
the quarter was taken.
Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1917-08-10
I TENNIS TOURNEY
ENDS; CLEVETT AND
LUNDGREN VTCTORS

NJ A Clevett and Harold Lundgren
were declared vtctors in the y NJ
G. 4 tennis tournament when they
triumphed last evening over Clyde
Downing and W Il. Babcock IL the
final game of the tourney. The scores
OF the sets which decided the winners
were 81 and Sd The winners played
q cool steady game allowing their
opponents to do most Of the hitting
They were careful 10 make evern shot
count and so by consistent playing
they managed 10 edge OUT Downing
and Babc0ck, who up until last night
had been ia championship form BY
winning the doubles C3eve.t and Lund-
eren lay claim 10 the American agile
buckle belts which were donated t0
the EictOrs by J. Ramser's sons
IL is announced that OIL Monday the
singles will begin and Il is the hope
of 0mclals that as many as pos
sibte sign up for the contests. ANY y
member is eligible TO compete
Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1917-08-10
PACIFISTS HOLD
MEET IN CAPITOL
Demand That congress Repeal Draft
Law and Threaten wilson In
less 1t Is Done.

Washington aug TO- Pacihsfs held
"a meeting under the dome Of the capitol
Yesterday and demanded that congress
stay in session until it had repealed the
draft law and voiced threats Of an at
tempt 10 impeach President Wilson un-
less that was done
Senators and congressman invited
TO attend the meeting under the aus
pices Of the Peoples Council of Amer
lea for Democracy and Peace, dropped
into the room and then dropped out
again as the speeches proceeded
The meeting wa held in the senate
military committee room where few
weeks ago the draft law was drawn
and perfected How the meeting came
ITO he held there developed consider
able feeling among senator's
Chairman Chamberlain OK the mill
ta-y committee said he had permitted
the use Of the room when Isaac Nc
Bride. formerly secretary TO the late
Senator Lane Of Oregon. asked him for
it. 10 have some friends meet some
congressman.
Senator Chamberlain said he had no
idea the place was flo be used lo@ an
attack on the president
Louis p. L0chner of New York. a
member of the Ford peace party pre-
sided
Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1917-08-10
NINE PERMITS TO
BUILD ARE GIVEN
{. Z. Johnson. Inspector, Reports OPP
erati0ns Are Light for Past Week
in Rock Island.

Building operations for the week
were light IN Rock island Only nine
permits were issued br c. Y. Johnson,
inspector The work involving an ex-
penditure Of s3,470
Permits we're issued 10 the follow
ing
H. C. Glenn for Fl. Miller. 81 For
ueth street. garage. $500.
John Johnson, for self, loo Thir-
teeuth avenue. garage, SIS.
McInnis Bros. for (. T Dolly, 1908
Fourth avenue, remodeling, $4,000.
John F. Dolly for self. 1913 Twen-
ueth street, garage, $500
William Lafrauz, for Harry BreH,
sos Twelfth avenue. remodeling, So.
Hudson. Collins & Hammerich. for
F. Bahnsen. 1920 Twenty second
street. -emode1ing, $50
Hudson. Collins & Hammertch, for
Mr. Barnsresn. 6I2 Seventh street,
barn. S120
o NJ Randall, for self, 1920 Four
CONFERENCE.-The street. garage. S75.
s P. Burgess, for self. 2012 Seven
teenth street garage, &75.
Total. S3.470
Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1917-08-10
LARGE JUNK YARD IS
PLAN OF LOCAL MAN

Charles Brady of Rock Island ex-
poets to have one Of the finest junk
yards west Of Chicago when he com
pletes alterations on the property he
purchased yesterday in East Moline.
Through the firm of Eckhardt & Buff
fun he came into possession of the old
Midland tract ON First street near the
railroad tracks. There are several
buildings on the site which consists Of
lib acres Mr. Brady's Rock Island Of
street
Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1917-08-10
PLATTSBURG CAMP
MEN GIVEN PLACES

Washington. Aug I0-Among the
thousands of commissions awarded at
the Plattsburg. H. H., camp and an
noun-ed by the adjutant generals Of
fee today were the following.
Illinois Sidney Bacharach. Dixon
first lieutenant, Joseph " Emory. Jr,
Quincy. second lieutenant
Iows-Fred A Little. Prairie Civ
captain. Joseph w ZeIler. R5nterse3.
first lieutenant.
Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1917-08-10

comfortable. The lower part re-
semi Ies the boomers OF bicycle days
while the upper portion consists OF a
bib. TO protect the shtrtwaist, which
stra ps over the shoulders. To and
from work the women wear skirts,
which are removed in the factroy
Rock Island Argus. (Rock Island, Ill.) 1893-1920, 1917-08-10

V orklng women IN many other indus
.r}es since the war
They were designed particularly to
meet the needs OF women forced into.
new occupations by the drain Of men
to the war They are made Of light