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

without any conference or eommuni-
| cation with mining interests.
Many of the mine operators felt
| that the additional tax should not be
acquiesced in, but finally decided not
to oppose the law, but to comply with
the governors desire and suggestion.
The governor was advised of this,
and further advised that the only COM
| pensation that could result to the
mining industry for the large sums
which this additional tax would cost,
was the assurance of the governor
that he would, in justice to the min
ing industry, advise the people OF
| Montana that the mining interests
were doing their share or more, and
that he would allay the feeling which
had arisen to a greater or less extent,
based upon the charge that the min
ing industry was escaping it's due
share of taxation.
The governor responded that ne
would gladly do this. But to date he
has not only failed entirely to advise
the people of Montana, as he had
given assurance that he would do, but
on the contrary has devoted most Of
his speeches to infiaming the people
of this state against the mining inter-
ests through charges that they had,
since the adoption of the constitution,
and were still, eyading their just share
of taxation.
Thus, in addition to paying in prop
erty and net proceeds taxes much
more than the constitution contem-
| plated, and in addition to meeting the
corporation license tax, we have a law
imposing a Is mill metal mines license
tax, which the governor volunteered
would put him In a position to assure
everybody that at last the mining in
terests were paying in full.
Burden Not Light
The burden cast by this most recent
law is not a light one. AS every one
familiar with the subject knows, met
proceeds are not synonymous with net
profits. Only certain more or less ar
bitrary deductions, fixed by statute,
are permitted in arriving at the amount
of net proceeds. In the Improbable
years, since the armistice. a number of
mining companies of Montana which
| each year incurred substantial losses,
at the same time paid substantial
amounts as net proceeds taxes. In
normal times the amounts required to
meet the metal mines license tax im-
posed in 1921 will be more than n
and one-half times that paid under the
corporation license law, under which,
as we have seen. six of the mining
companies paid more than $1,0O0,OO0
to the state in three years.
The fundamental principle upon
which all systems of taxation must be
based Is that of equality.
If an inquiry into the status of mine
taxation, as it is carried out in Mon
tana today, should develop that the
mines are paying. as much or more
than they would if assessed simply as
farms, town lots and other property
are assessed, then it will be unhesi-
tatingly conceded that the mines are
doing their duty.
1t is ImmateriaI what system Is fol-
lowed, if each industry Is doing its
equal share with that of others.
Let us lay aside the property, net
proceeds assessment, net profits tax
and mine license tax system for a mo-
ment, and see what a representative
mine operator would pay if his prop
perty were simply assessed at its full
cash value, in the same manner as 9TH
er property is assessed.
Uses Illustration
Facts and figures as to many min
ing properties of the state, upon
which millions of dollars have been ex-
pended, large sums paid in taxes each
year, and not a dollar ever realized.
would perhaps give a better view of
mining operations as experienced by
many investors; but, as the facts and
figures as to the entire industry of the
state could only be obtained by CORE
s~pondence with each and by examina-
ton of the records of each county in
the state where mining operations are
carried on, and as the facts and fig
ures of the operations of the Ana
conda Copper Mining company are
most available and can be obtained
from the public records of this state,
we will use that company for the pur-
pose of illustration.
We will take the figures of that
company's tax assessments, not for a
particularly prosperous year, nor for a
lean year, but take the five years from
1917 to 1921 inclusive, including two
years of profitable operation, n year
when its Montana operation showed a
gain of less than 5000, 900 and two
years when the losses of the company
aggregated approximately 100000;
thus reaching figures which certainly
cannot be claimed to be favorable to
the taxpayer.
During the last five years the issued
and outstanding capital stock of the
Anaconda Copper Mining company was
2,331.250 shares, which, at the market
value Of $500 per share, would
amount to S121,225,000, the total value
of the property Of the Anaconda Cop
per Mining company everywhere.
Value of Property
The records show that GIG per cent
of the company's property was stu
ated in Montana. This would make a
value of $73,6 760s of the property
in Montana. The physical property of
the Anaconda Copper Mining company
in Montana was assessed in 1921 at
$50, 1913, 100. It's physical property
has been assessed on approximately
this basis for more than five years
past.
Mr.. Haugen, state tax expert, states
that real estate in the state is assessed
at something less than so per cent of
it's true value, and personal property
no doubt at a lesser amount. Eighty
per cent Of the $73, $50, 760, the mar
ket value of the Anaconda Copper Min
ing company's property in Montana,
would amount to $5S,94,608, so that
the Montana property of the Anaconda
Copper Mining company is assessed on
IFS nhvsica1 vaIua in excess Of 100 nar