The Carbon County chronicle. [volume] (Red Lodge, Mont.) 1924-1924, 1924-09-17

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equalization Of the tax burden among
all forms OF wealth, that we estab-
lished a central agency with full 1ur-
isdiction over all. popularity known as
state tax commission Although the
people themselves ratified the Tax
Commission Amendment, The Ana
conda and the Montana Power inter-
esis Immediately attacked by INDUCTION
in the supreme Court After months
Of delay. the ratification by the vote
Of the people was sustained by a bare
majority vote OF to > in the Supreme
Court.
Despite the opposition of powerful
lohbles. financed by these great special
interests. we were finally able to write
into the tax laws of Montana a. modern
provision regarding:
lnheritances.
Pullman ear lines.
Tax Commission.
2fs gross ON oil production,
Coal production and Gasoline
The financial political power of the
great metal mining companies was
strong enough to defeat in the Senate
the one per cent gross production tax
on the output of metal mines. which
The House had passed. Since Mon
tana's admission 70 statehood, these
great foreign owned mining companies
had through political control of legls-
latures, newspapers. hank credits and
state government, been able TO have
their yearly output of millions of
wealth assessed for taxation only on
met production" If there We're no net
profits there were no taxes on the
mineral wealth produced.
The Dual Tax System
Yet. during all these years. the farms,
homes. livestock, and banks of Mon
tana's resident citizens were paying
taxes whether there were any net
profits In the business or not.
To show how unfairly the present
dual system Of taxation has worked.
cite following actual transactions:
This last February, the Davis-Daly
mine In Butte was sold to The Ana
eonda by vote of Its stockholders for
$3.000.000. Mr.. Mcintyre. the County
Treasurer Of Silver Bow, certified TO
the State Tax Commission that for the
year 1923 the taxable value of this
mine was $4,000. The total taxes
paid that year on this property. which
sold for three million dollars, actual
cash, was $3.50.
If this three million dollars had been
invested In farm lands that year. in
stead of $3.50 taxes II would have
paid S55,2Ta, or nearly - times as
much. II this three million had been
invested in either cattle or merehan-
disc, the taxes would have been lat,
or more than "a times MS much.
Let me give you another Illustration
as to how the present dual system of
taxation works here in Montana.
The new Tax Commissions returns
for the last year show that the"stoclss
of merchandise" paid nearly three
times the amount Of taxes paid by all
the great metal mines OF The state.
Lat year "store furniture and fix
lures paid in more than one-thlrd as
much tax as all the metal mines net
proceeds tax.
In 1922, hank stock" paid over
eight times the tax as did met pro-
ceeds" from metals mines. Thar year
"Household Goods paid "a times as
much tax as did all metals mines on
their met proceeds
This dual system Of taxation in Mon.
tana has been 50 brazenly unfa'r that
the wonder Is the people who live IN
Montana have horne the unequal bur
den with such meek paticnce and for
tltude.
Fur under the Initiative section q
our state constitution. 10000 city n.
Of the state have. within the past few
months. initiated the same dentira
one per cent gross output metals mnni
license tax law MS was passed by th'
| House two years ago.
Mines Tax Law Will Pass
Despairing Of continued control o
legislatures by the big mining interests
they have finally determined to exer
else their reserved constitutional pow
ers Of legislation by popular vote. Tn
less I know nothing of the exasperate'
feeling Of the people Of Montan regard
Ing this ancient wrong. the Initiate
bill will become a law In November b
the greatest vote ever cast ny III
people of this atate.
II these two grcst corporate inter
ests would only take the money the
now pay ont IN trying TO control news
papers. primary elections, legislatures
courts. the maintainence of lohIes an
paid political agents, and the fnrthe
ing of political propaganda, and MS
1t In the payment of their own IN
share Of the burden Of taxation. the
would have money left over for an Il
crense Of legitimate dividends to the
nonresident stockholders. And "
would have peace here at home.
Popular Government Triumphs
While 1t Is true that In the recel
democratic primaries the big cope
! mining companies. by the expendltu