The Winslow mail., 1923-06-22
HUNT DECLARES FEDERAL
COURT LACKS AUTHORITY
Continued from page ~

pelling the taxpayer to pay his taxes
before suit could be commenced GER
tain of the 'big taxpayers" have
been chatting under it's provisions.
On various occasions they have en-
deavored either to have i tabolished,
or In some manner defeat it's pur-
pose. Apparently they have at last
succeeded, by totally ignoring our
State Courts and through the ruling
of the Federal Court, paying in as
taxes only such an amount as they
see fit.
In summing up the present situa-
ton, it is but fair to state that a
large majority of the mining COM
panies and really big taxpayers are
not in sympathy with the present
tax litigation and stand ready and
willing to pay their taxes as asses
sed by the Tax Commission. In
fact, it can be stated on good author
ity that only two of the large mining
companies in 1avapai County and
one in Mohave County are really
making any serious attemps to evads
the payment of their taxes.
1t is difficult, indeed, for this Com
mission to understand the exact pur-
pose of these tax suits. Especially
is this true, when it is taken into
consideration, in the case of the
Company and the United Verde Cop
per Company enormous reductions
in the value of their respective pro-
perties were made for taxation pur-
poses in the year in question over
that of the previous year. The re-
cords show that in the year 1921
each of these companies paid their
taxes without protest on a valuation
approximately six million dollars
greater than the valuation upon
which they were assessed in 1922,
the year in question This is also
true to a greater or lesser extent
with practically all Of the producing
mines in the state. In fact, the pro-
ducing mines receive a far greater
reduction in valuation for the 1922
assessment than any other class OF
property
The records also disclose the fact
that these companies have been en-
ormous dividend payers in the past
and during certain years have paid
to the United States Government, as
income and excess profit taxes, sew
eral times the amount assessed and
collected by the State and County
for the same year.
During the last session of the Le-
gislature, this Commission asked for
an appropriation of $4,000 90 to de-
fend tax litigation. This appropria-
ton was granted, but only after
amendment virtually tying the Com
missions hands by refusing to per-
NIT 1t to use any of the amount ap-
propriated for the "hire of legal as
sistance. "This amendment we are
informed, was inserted at the behest
of a Member of the Legislature, also
in the employ of one of the mining
companies who have filed the suits.
OF course, no such prohibition exists
against the mining company and they
are permitted to employ the most
skilled attorneys whose services
money can purchase.
In conclusion, this Commission de-
sires to state in all seriousness, that
it has no desire to experience an
other mine tax fight, such as has
been had in Arizona in past years.
1t had, indeed, hoped that the pres
eht method of assessing, using the
average net proceeds over a period
of years as the controlling factor,
had become a fixture through It's
long period of use. Even though
the percentage of the total state and
county taxes paid by the mines had
steadily decreased for several years
past, it was still ready and willing to
abide by the result.
However, anticipating the possibi-
lity of the States being forced to re-
sort to some drastic action in order
to collect the necessary revenues
from this class of property pending
the lengthy litigation sure to follow
in the Federal Courts, this Commits
sion has Investigated, to some extent
the methods of mine taxation in
other states.
The State of Minnesota appears to
have successfully solved the problem
at least from an administration
standpoint. The records show that
in the year 1920 the mines of Min
nesota were valued for taxation pur-