The Carbon County chronicle., 1924-10-08
LARGE AUDIENCE GREETS
GOVERNOR AT RED LODGE
Citizens Learn of the fight of the Administration
for the Equalization of Taxes and the Methods
Used to combat Them.

licenses and the decrease in property
in the state, in 1919 the state
began to go behind. AT the time of
the beginning Of the Dixon admins
tration in 1920 the state faced a de-
ficit Of over two million dollars in
registered warrants and unpaid bills.
The legislature passed a bill authoriz-
ing the borrowing of three million dol
lars on short time notes to take care
of state expenses, mortgaging the tax
es Of 1921 and 1922 to secure the
notes. The attorney general ruled
that the lla mill levy for the univer-
sity was exempt from mortgage and
that only $s5O,0OO could be borrowed
on the two years taxes. On this money
the state operated until the taxes were
available in 1921. The tax laws on coal,
oil, inheritance and Pullman cars have
heon enacted during Governor Dix
ons term Of office. The Legislature,
in spite Of the governors warning, In
1921 anad 1922 passed appropriation
bills exceeding the revenues of the
state and in 1922 the excess amount
ed to 100000. The governor then
made percentage veto on all appro-
priations, amounting to about 100000.
The supreme court decided that while
the governor had the power to veto
the entire appropriation he could not
veto d part Of II and II was then nec-
cessary TO call special session Of the
legislature which passed the appro-
priation bills practically as approved
by the governor. AS result for the
fiscal year ending June 30, 1924 the
state, for the first time in seven years,
showed balance Of about s22 900.
Under the dual system Of taxation
in Montana, in effect since the consti-
tuition was framed, all except mining
property is taxed upon a value basis,
while mines are taxed on a basis Of
net proceeds, plus $500 an acre valu-
alton on surface land, and on the value
Of the machinery etc. used in connec-
tion with the mines. The governor
told how through system Of book
keeping, the Clark and Daily mining
interests in Butte showed no net pro-.
ceeds for the years 1921 and 1922 and
these biz mines paid only one dollar
each in proceeds tax. The net pro-
cecds We're eaten up in royalties to
themselves and other items were
charged off leaving the result mo
profit"
The governor displayed to the au-
dience the check given by one Of the
big Butte mining corporations for It's
taxes. The amount was one dollar.
In spite of the efforts Of the admin
istration to have metal mines gross
proceeds tax bill adopted, the senate,
each time it has been introduced, has
killed the measure. This year the
law has been put up to the people OF
the state by an initiative measure and
will be voted upon November 4.
If the big mining interests are not
making profit, as they claim, there
Is no reason for them to oppose the
measure as the first 100000 is ex-
empt from tax under the. proposed
measure and according to their own
statement their taxes would not be
affected.
Under the present system q ranch
in Carbon county pays in taxes from
so to rs per cent Of the amount paid
by three million dollar mining prop
erty in Butte.
The governor paid his compliments
TO the copper owned or subsidized daily
press Of the state and showed that for
three year period they had been
running at loss, the total amount Of
which was 1851 ,6l8.70, or enough to
pay nearly one half Of the annual rev.
enue contemplated by the metal mines
license tax bill.
The governor ended has. speech with
a plea for the proposed mine tax bill
and for the state administration, max
ing it plain that governor favorable
TO the copper intrests meant copper
control of the tax commission which
would eliminate any possibility Of tax
in Montana.