New Mexico state record. (Santa Fe, N.M.) 1914-19??, 1920-10-15

per, having a gross value of $l7,-
049, 560.35, the expense of production,
operation and marketing for the
year 1918 was Sl4.439,3 $40 S.; income
tax paid, $327,ll1!60, total expense,
$~14,766,453.l5, leaving a net profit for
the year 1918 of 2,283.l27O.
1917
For the year 1917 the Chino Cop
per company produced 79.63b,23s
pounds of copper at a market value
of Sl9,20s, 1861, at an aggregate ex-
pense of $l2,s69, 289.0; income tax,
$3l9, l6987, excess profits tax paid,
s., s59,01578, additional tax paid. $29.-
953.l6, total expense $l4.477, Ol092,
leav ng a net profit OF $4.72S,l34o 9.
Thus the annual net profits for
the years, 1917, 1918 and 1919 shows
an average of S ,lS9,536.88. AT the
present time there is outstanding
$4,000 shares of stock of the Chino
Copper company. According to
market quotations would be valued
at 5000 a share or a total of S22,-
75OC00. Estimating the life of the
property at twenty-five years pro-
duction, in order that the stockhold-
CHS liiiSnt 4NdhLN v PNi NNhl y VI
their investment, a net profit of 10
per cent would be required to meet
the disbursement of dividends
amounting to 6 per cent and 4 per
cent reserve to take care of the prin-
cipal, which would be equivalent to
ar annual disbursement of S2,275,-
600, or S85,464 in excess of the aver
age actual annual profits for the
years 1917, 1918 and 1919. 1t must be
borne II mind that the years 1917
ard 1918 were banner production
years under high wal prices and the
yield fal above normal peace time
periods. The year 1916 vas anoth-
er one OF the war time maximum
production at war prices which
closely Appropriated the year 1917
in aggregate gross production These
facts may be verified by geological
reports as TO annual gross produc-
ton and values and all of the in
formation S no doubt in the hands
of the special commission appoint
cd by the governor TO investigate
and report on tax conditions and
legislative requirements nesded to
fix proper and Just apportionment OF
the burdens of taxation.
Pending the investigation OF the
report by the special comm ssion q
bill was passed and enacted into
law during the last legislature which
n effect provided an arbitrary tax
upon all mining companies for the
years 1919 and 1920 upon production
equal to the average of the years
1916. 1917 and 1918, being the banner
production and values OF output dur
ing the a
This bill was introduced by Dan
iel Padilla and Isidoro Armilo. and
except for this legislation the tax
alton product from several of the
mines would have been greatly re-
duced and r ghtfully so in view OF
the greatly reduced production in
quantity and value. The foolish ar
gument has been submitted by the
democratic publicity director: That
a house and lot worth 5000 and
bringing an annual rental. Of $500
were taxed on the basis of the nine
tax law that il would pay a tax at
SIS instead of $50. The reverse is
true if taxed upon the basis of she
mine tax law-t would pay the $50
plus the SIS taxes on revenue. In
this connection it is nDted On the
tax records that the Chino Cop0e
company was taxed for til, year
1919 upon improvements $500 $50, on
lands $68,29g upon personal property
100000, a total of $685., l40 In ad-
dition to this amount of property
tax the production tax under the
law passed by the last leg Stature
amounting to $l0,440,474
General Patton is quoted a, hav-
ing made the settlement in Santa
Fe that the mining companit were
be ng taxed on their net profits (:
This is a sample OF fallacior' prop
aganda INDUCED in by some Of our
democratic friends.