Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1921-07-12
NET PROCEEDS
ABSENT FROM
RETURNS MADE
Board of Examiners Dis
covers No One Paying
Taxes on Royalties.
Attorney General Is
Called Upon for Rul-
ing to Solve Problem.
Special to The Tribune.

Special to The Tribune.
Helena, July 11.-How the state of
Montana is to obtain it's proper re-
turns under the net proceeds of mines
tax law, in view of the manner in
which the bill was finally passed by
the recent legislature, was the prob
lem which was presented to the board
of equalization Monday by John Edg-
erton, its clerk.
h The matter was brought up through
the receipt of number of returns
from mining companies, required under
the new law to be filed by July 10
and certified to the state treasurer
July IL. Quite a number of these re-
ports had been filed and from these
ceive very little from the mining com
panies under their Interpretation of
the law.
No Net Proceeds
In most cases the deductions were
of such consequence as to wipe out
all net proceeds so that nothing would
come to the state. 1t was found that
the companies were not reporting re-
turns from each mine, but were re-
porting upon the aggregate operations
of the company and deductions in
cluded all expenses, including explora-
tion work.
The smaller operators. such as the
! leasors, made deductions for all monies
paid out to owners of mines for royal
ties, but no returns were specified
= by the owners for royalties received.
Through this system the state was
shown to be in danger of losing the
bulk of the tax which should come out
of net proceeds.
Ruling is Asked
Accordingly the board was asked to
interpret the law, or at least to make
a ruling as to how the clerks to the
board should proceed in the matter.
The members were at loss. All
were certain that someone should pay
the tax on the royalties but how to
impose it was the question. The mat
ter was finally left in the hands of
the attorney general for an opinion.
One big company reported no net
proceeds and it's statement showed
an operating loss for the year Of
nearly q half million dollars. This |
led Governor Dixon to remark:
"Why, / have been told this company !!
received $2,7OO,OOO in royalties. |
don't see that it has included any such |
item in its receipts"
May HOl0 Nl9nt sessions
II was decided that the clerks should |
work over the reports and note any |
items which they considered improper |
and that they should be taken up in
dividually by the board after certifying !
them to the treasurer. This VIII re-
quire a great amount of time spent in
meetings and it was decided that if
necessary night sessions be held, but
it is unlikely that much can be ac
complished until the adjournment of
the board of education, of which the
governor and attorney general are
members.
, The matter of the selection of
successor to Nils 2. Haugen, as tax
expert, was brought up but it appeared
that the board had not yet secured a
line upon experts from whom to make
q choice.
Proves Need, Says Dixon
The name of r. A. McCrary, who
has been connected with the Northern
Pacific tax department for number
of years, was brought up by Secretary
of State Stewart, but no action was
taken.
''This situation only goes to prove
which could devote its undivided at
tention to the work. said Governor
Dixon. Here we are. board of
equalization, who know very little
about taxation and with our other Of
ficial duties and work on numerous
boards cannot give the subject the at {
tention it requires. To my mind we (
must get the biggest man we can find t
10 direct us in this work. I thought g
we had one in Judge Haugen, but un- t
we were unable to keep /
him." d