The Glasgow courier. [volume] (Glasgow, Mont.) 1913-current, 1922-02-24
PROBLEMS
DISCUSSED BY KELLEY

take care Of QUIZ public officers, board
commissions and bureaus. The tots
state payroll for the month Of Decen
Der, 1914. amounted to $77.371.19. I
! the menth Of December. 1920, this ha
F., grown to the appalling sum Of $140
1870, an increase Of 90 per cent
the taxpayers organizations in Mo-
tana will accomplish nothing othe
than 20 e that there Is not an add
tional name placed on the payrolls 0
this state until we have recovered from
our present unfortunate condition
their existence will have been JUST
fled.
Mine Taxation
"Since I am here pursuant to an In
vitation extended to the Anaconda
Copper Mining company, I assume
that the much discussed. and, If I maj
say, the much misrepresented question
of mine taxation is expected to receive
some consideration. I want 1t distinct
ly understood from the outset that
am not here to apologize for the taxes
paid and being paid by the mining
industry of this state. They need nc
apology. I come before you with the
firm conviction, whatever misappre'
hension there may be in your minds
that the mining industry 10 paying and
has been paying It's proportionate shore
of the burdens of this commonwealth
I hope it may be fully understood that
I am not here to attack any other in
dustry or any set of men, whatever
their convictions may be upon this sub
ject.
1.-THE future Of this great common
wealth depends upon the coordination
Of Its industries and the cooperation
Of all its citizens to the end that its
matchless resources may be developed
and hat it may be made the home of
q happy and contented people.
A. c. M. Taxes Misunderstood
UNFORTUNATELY the amount Of taxes
paid by the Anaconda Copper Mining
company has been so persistently mis-
represented that there exists in the
minds Of a large portion Of well-mean'
ing citizens Of this state the impress
sion that mining companies pay taxes
only upon the profits Of the business.
Let us examine the facts. The Ana
conda Copper Mining company pays
four kinds Of taxes in Montana:
"First. It pays a property tax. Up
on its mines and mining claims 1t is
assessed at the government price. In
addition to that, if the surface has any
value for other than mining purposes
and # so used, 1t is taxed at such
value. It Is well known that the sur.
face Of practically all Of the mining
claims in Montana Is rough, mountain
GUS ground, and that a value Of IS per
acre Is more than the surface is ac-
tually worth. But in addition to that,
if the surface has any value, whether
1t be for farming, grazing or tOwnsite
purposes and is so used, it Is assessed
at such value. 1t is a fact of common
knowledge that what is now the most
heavily assessed property in the state
Of Montana formerly constituted mere
ly the surface Of mining claims, for
practically the entire surface of the
city, of Butte was patented as mining
property, and city blocks that are now
assessed at a real estate value Of hum
dreds of thousands Of dollars originally
paid only the tax on the purchase price
rom the government. So that as far
rs the surface of mining property is
concerned, 1t is in exactly the same
position as any other land In Montana;
With this exception, the surface of min.
ng claims Is assessed at 100 per cent,
whereas other lands are assessed on a
BASIS of 30 per cent. Again, all i'm
buildings, mills, smelters,
works and property Of every
'ther kind is assessed as other prop
.rty.
Second. The Anaconda Copper
Mining company pays q tax on it's net
proceeds on the basis Of 100 per cent,
which means that the net proceeds Of
mines are assessed on a basis Of more
han three times the average Of other
'lasses of property.
Third. This company pays a cOr
license tax of 1 per cent Of
net profits of Its business in Mon.
ana.
Fourth. This company pays n mine
license tax of ia per cent on the net
proceeds, or a 15-mill levy on Il 100
Yer cent of the net proceeds of its min
ng operations.
''The last two forms of taxation 90
lirectly into the state treasury for the
'ole benefit of the state.
Value Of A. c. M. Stock
What does the tax under subdivi.
ion one amount to? take 1t that
lost of you have been told, and have
cad in the public press from time to
ime that the Anaconda Copper Mining
ompany pays taxes only when II
lakes money. In 1927. under the first
of taxation, the Anaconda Cop.
or Mining company was assessed on n
aluation of physical property in Mon
for the sum of $50. 193. 100. and
pom this is paid taxes as any other
roperiy owner. But someone nav
ny, Look at the millions of dollars OF
rOperty owned by the Anaconda Cop
err Mining company that escapes tax
ton Think of the millions of dol
IRIS as represented by the value of its
apital stock in excess of this mount
What are the facts? On the first
londay in March, 1921, when this yalu-
ton was fixed, the Anaconda Copper
lining company had outstanding 9,
81 $50 shares of stock. On that date
sold in the omen market ot soc n
hare. giving a total valuation to the
took Of this company, representing Its
In Montana, Utah, Arizona.