The Daily Alaska empire., 1939-02-16

(ContinueC from Page One) has not been absorbed by the stock holders of the mining property"
 Profits on mining operations in Alaska are figured in pennies
 They don't pay any more for Alaska gold than they do for Calif- ornia gold, despite the much higher costs of operation hereil "The bonanza days are over
 Taking It Out" We are not taking an asset out of the country when we take gold out of the ground. Wealth that min ing creates, or distributes, while the operations are under way is the real asset
 Tt is not altogether a matter of taxing the mines already here; they'll stagger along. But there is not enough capital in the Territory to develop mining here, and outside capital must not be discouraged"
 Speaker Howard Lyng, in opening the meeting, stated that the hear ing's purpose was not to discuss any tax bill in particular but to get from Alaskans an expression of views on the problem
 Metzgar Heard L. H. Metzgar, General Superin- tendent of the Alaska Juneau Gold Mining Company, outlined briefly the history of gold mining in the Juneau district. saying for B years dividends from mines on Douglas Island were poured into the Alaska Juneau before one dollar of the in- vestment was returned.
 Of the slightly over $60,OoO0 00O worth of gold produced to date by the Alaska Juneau, more than $25,- 900, 900 has been paid in wages, $16,- 100000 for supplies, $2,200,0 900 just since 1881 in taxes, and only $11,- 500,000 in it's whole history in divi- dends, according to MT. Metzgar. This represents a return of less than percent on the investment.
 The Superintendent criticized the attitude expressed when it is said so much is taken out" of certain mines or certain districts. This gross pro- duction referred to is not something taken away and gone forever with out benefit to the district from which it came, he said. Important considerations, he declared, are how much was spent for equipment and how much returned to the district in payment of wages and services rem dered.
 Effect Of Price Advance
 The effect of the advance in price of fine gold from $2067 to S34.91 an ounce was in the case of the Alaska Juneau, MT. Metzgar said, to in- crease the amount of ore which could be mined at profit The life of the mine has thus been prolong- ed, since the procedure is to extract the last ton of ore of a grade which will show profit.
 MT. Metzgar said taxes on the mine for 1888 amounted to $464, 1885, representing 9 percent of the gross production and g percent of the operating profit. Since 1881, he said, taxes on the operation have. increas- ed 216 percent.
 Tn order to maintain mining industry" MT. Metzgar concluded, it will be necessary for the Ter ritory to encourage investment in mining by making and keeping con- ditions such that will allow of re- turn of capital invested. Any in- crease of taxes on mining will tend to dry up capital at it's source, dis courage prospecting and the de- velopment of prospects, with the consequent loss of industry and em- ployment to the Territory"
 991 Employed At Al
 In answer to questions, MT. Metz gar said the Alaska Juneau last month had 991 men employed, 849 of these being citizens and 63 others having applied for citizenship pap CTS. There are some 5000 stockhold- CTS in the company, he added.
 Jack Littlepage, describing opera tions of the Chichagof Mining Con- pany, said that 55 men are given employment there getting out con- centrates which cost $6.50 per ton to ship to the smelter and another $6.5O per ton to smelt. Last years operations at the mine, it was brought out, produced $165,O worth of gold at cost of $181,000. The gross gold tax, however, is assessed against the $165 900.
 T don't mind paying a tax on my profits" Littlepage declared but it burns me up to have to pay a tax on my losses"
 Less Than 4 Percent Paul Sorensen, Superintendent of the Hirst-C -Chichagof Mine, said that if the 1000, 900 in capital originally invested in that venture had been invested at percent securities it would have returned $600,000 by the present time, whereas the actual re- turn in dividends has been only $570, 900.
 Earl Pilgrim, antimony miner from the Interior, who was connected with placer and other gold mining