The evening herald. [volume] (Albuquerque, New Mexico) 1914-1922, 1920-10-13
HANNA's FAKE FIGURES
ON MINE TAXATION ARE
GIVEN AN AIRING
tIiom Albuquerque Morning journal
Oct. ~, 1901

~. 1Ail HNbttt EuNtult MOIUtnb
Journal, Albuquerque. n. NJ.
MY Dear Sir;-rhe publicity given
my letter In your issue OF October Q.
was most GALLANT congratulate
you.
In your editorial OF october 4. 1890.
you say: 'sMr. Bursum In evidently
visibly worried, no In Jared out OF
his u serene taciturnlty By the
terror OF certain defeat which con-
fronts him.
This conclusion In entirely erron-
cour. any person who u ut TO win
possesses the courage TO face defeat;
Tho political fate OF any individual IL
OF no consequence as compared with
tho public welfare.
My real concern Is the reckless at
lacks on legitimate Industry which
has played an important part In the
preliminary development Of our ma
tural and the tendency OF
such unwarranted attacks to discour-
age future operations In the state and
suggestive OF n policy of hostility to-
ward Investment OF capital from
without the state. In the absence OF
which no substantial easur OF de-
vclopment commensurate with tho
needs OF the state can be hoped for.
You say: by silence he can appear
wise: when he writes he betrays his
~ AAAONAANA hAAHtEs II
wa could see ourselves as others sre
~, another story might be written;
perhapa OF me; perhaps OF you; per-
haps OF both OF US that might be
true.
You Ray: we arc glad Mr.. Dur-
sum defends the mine tax dodgers, Il
helps to classify him"
You are always safe in classifying
Mr.. Bursum as being ready and will.
Nnn In AAfnaA eshuN 10 N.la..a.. -. a..
thu square deal on tho basis OF truth
and TO denounce false statements pur-
porting to be facts whether the same
Involves n twenty million dollar cor
poratlon or tho humblcst citizen OF
the land.
Tho Campaign Of PFojudico
The most dangerous element to or
derly government and a positive OBJ
staclo to community prosperity IN the
person who attempts IN array class
against class: incite class hatred be-
tween its citizens and especially the
attempt, to capitalize prejudice and
convert the same into a political as
set. this In intensely true when the
basis Is formed upon false and mis-
leading premises.
In your editorial Of October Z, you
say: mfr. Sully admits thai the aver
~ net earnings OF the Chino Copper
company for three years past have
been In excess OF $4,000, 900 a year"
This is a wild statomcnt.-mr from
the truth. I can not conceive that
a public spirited citizen like yourself.
engaged in laudablo function OF
moulding public opinion upon public
questions, would knowingly mis-stato
the facts. For your information per-
init me to inform you that during no
year OF the operation OF the Chino
Copper company since It's existence
has 1t shown a net profit OF 10000
900. During the yenr 1919 the pro-
duction OF copper amounted to co.
isS, f06 pounds. containing a gross
value of 37,30SS97.5e, the expense
of mining and marketing the copper
amounted to s7,75i .2fS.Si, or q net
loHs on operations for the year OF 1919
OF $~442,65i.25.
1919
For the year 1913 this company
produced T5.555.6 tI pounds OF cop
per. having a groS1 value OF sl7,0ts,-
5000, the expense OF production,
operation and marketing for the year
1918 was tii,439, 3f0.55; income tax
paid, S327.i1l.60. total expense. ti4.-
I~66.t53.i5. leaving a net profit for
the year 1918 OF t2.2s3,i27.2o.
1917
For the year 1917 the Chino Copper
company produced T~s,sas,235 pounds
OF copper at a market value OF sio.-
2O5,lf5.6i, at an aggregate expense
OF 3t2. 569, LESBOS: income tax a3ip,-
1887. excess profits tax paid. 1850
0i5.Ts. additional la paid, S29.536.i5.
total expense si4,417 .oi0.s2, leaving
a net pront OF S4~.fas.i34.0s.
Facts About Chipo's Earnings
Thus annua net profits for tho
aUaU. NnMI AnNE - NANn $780, -
average OF 92,iSp,636.ss. At the pres
n time there Is outstanding $4,000
Bhares OF stock OF the Chino Copper
company. According to market quo
tations would be valued ut $500 a
share or a total OF t22,750.0Q0. Esti-
mating the life OF the property at
twenty-five years production In order
tho stockholders might realize
6 percent on their investment, a net
profit of 10 percent would be required
TO meet tho disburaepent OF divi-
bonds amounting to 0 percent and I
percent reserve TO take care OF the
principal. which would bc equivalent
10 an annual disbursement OF $2,-
2ib, 1000, or $Sj.f6i in excess OF tho
nverngc actual annual profits for the
years 1915. 1918 and 1913. 1t must
b0 borne in mind that the "a 1871
and 1918 were banner production
years under high war pIices and the
yield far above normal peace time
periods. The ear 1915 was another
n OF the war time maximum pro-
duction war prices which closely APP
proXimated the year 1917 In aggre-
gate gross production, These facts
may be verified by geological reports
as to annual gross production and
values aud all OF the information Is
no doubt In the hands OF the special
commission appointed by tho COVER
nor TO investigate and report on tax
and legislative require
ments needed 10 Xix proper and just
spportionment OF the burdens OF tax
alton.
Pending tho Investigation OF the
report by tho special Commission a bill
passed and enactcd into law dur
Ing tho last legislature which, in ef-
fest provided an arbitrary tax upon
all mining companies for tho years
1919 and 1920 upon production equal