Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1922-10-22

ments Of value presented by a mining
prospect, lay in the peculiar character
of b property itself.
A mine, as distinguished from prac-
tically every other species of property,
has no value or earning power except
such as lies in the metal contents OF
the ores, and these ores have no value
until found, developed, mined and their
| contents extracted. AS the ores are
extracted, the value of the mine, the
| capital of the investor, is reduced to
that extent. Mining Is a wasting pro-
cess. In this the mine differs from
other species of property.
The buildings, whose value for taxa
ton purposes depends On its rental
value, retains, less depreciation, its in
come producing value from year to
year. The city lot is not destroyed by
use, but retains its value through the
years. The farm, when properly han
died n kept up, carries it's earning
power from year to year. The entire
value of the mine lies in the proceeds
of it's ores.
When you tax these from year to
year, as realized, you tax the full value
of the mine.
Some of the mines of Butte have
been operated for over 40 years. To
have taxed, year after year, the ores
which have only been removable to-
ward the end of the period, would have
been to have taken more than the full
value of the ore long before it could
be reached for extraction
Approved Net Proceed Principle
That the constitutional system of
mine taxation is an equitable one. we
again turn for proof to Governor Dix
on. Repeatedly in public sessions of
the state board Of equalization, and al
so in private conversation since he
took office, the governor has en-
phatieally stated that he is opposed to
any system of taxing growing timber,
but that the only equitable system
would be to exempt the timber while
growing upon the lands, from taxation,
and tax the timber when cut.
The reasons he has repeatedly given
are that the timber land is denuded of
the timber, the value for that purpose
is gone, and that the present system of
taxing timber and timber land as other
property, ont alone places an undue
handicap upon the industry, but is in
direct opposition to a proper .conserva-
ton of our forests.
This theory, which the governor
would apply TO timber lands, 1t can
readily be seen, is much more forcibly
applicable to a mine. Until cut, the
timber will continue to grow upon the
land. and the lands, if properly cared
for, will grow other forests. But with
the mines, nature ceased her opera
tons when she placed the mineral in
the ground.
That the makers of our constitution,
in selecting the system adopted for the
taxation of mines, did not do SO with
any idea of exempting such property in
any part from taxation. but rather ar
rived at this method as one calculated
TO cause the mines to respond in full
to their due part Of the revenue re-
quirements, is shown by a review of
this subject by our supreme court in
the case of Northern Pacific Railway
company versus Mjelde. 4S Montana,
page 2S7, at page 296, where the court
in part says:
State Needed Revenue
. the problem before
the constitutional convention was
not to exempt mining property
from taxation. but rather how to
compel it to respond to the reason
able demands of the state for rev.
enue, and at the same time protect
it against such exactions as would
or might discourage prospecting or
development. The debates of the