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Show II OFFICERS OPPOSE CHANGE ! m LIS Set Forth Their Objections in Open Letter Signed by More Than Sixty-Corporations. Sixty-Corporations. SEE INJURY TO UTAH IN RADICAL MEASURE They Declare Present Fair and Equitable Safeguards for Investors Should ' Not Be Removed. I j In an open letter issued yesterday of-' of-' ficera ajid directors of sixty-two corporations corpora-tions of the state set forth their objections objec-tions to a resolution which is pending In the state legislature and which proposes pro-poses an amendment to article 13 of the state constitution, relating to revenue and taxation. After setting forth the importance of tho mining jndusti-y to the development of Utah and the benefits that have accrued ac-crued to the citizens of the state through its extension, the letter details the arguments argu-ments that have been advanced for the proposed change in the constitution. The signers of the letter contend that if the present taxation laws are enforced there la no need of taxation legislation. The mines, it Is declared, have been assessed and have paid taxes on 100 per cent of their entire net proceeds in addition to taxes upon the valuation of improvements placed on mining claims as valued by the state hoard of equalization. On the other hand there is pointed out the fact that in some counties the assessments on property values represent but 14 per cent of the actual cash values and in other counties but U0 per cent of the actual cash values. " ' '' ' Effect of Changes. The changes. If made, will cau&e Investors In-vestors to view "Utah with suspicion. It Is contended. The success of the mining industry in-dustry means success to merchants, mechanics, me-chanics, farmers, professional men and miners. The letter in full is as follows: Tlie attention of the tax-paying public is respectfully directed to house joint resolution No. U .proposing an amendment to article IS of the constitution consti-tution of the suite of Utah, .relating to revenue, and taxation. Tins measure contemplates the repeal of all constitutional consti-tutional and statutory provisions under which a limltat ion now exists upon the power to tax mining interests. To public discussions have been had wttli reference to such intended legis- lation. and the plan of the authois of tho proposed changes In our taxation methods, while not clearly defined, is generally understood to embrace, as salient features, some of tlie most radical changes in the attitude of our i state toward invested capital. It is proposed that constitutional limitation wpon the power to tax mines shall be Abolished, and a discretion dis-cretion vested in the state board of equalization to ascertain and tlx arbitrarily arbi-trarily such values as such board may consider proper upon all mining interests inter-ests within the state. It must be remembered re-membered that the state board of equalization is appointive, and such unlimited authority once vested will enable that board to become a politl-. politl-. cal machine with power to oppress, even to the extent of ruin, any of tlie largo mining iiid us tries operating within our state. Benefits Analyzed. I The beneficial results which have accrued to Utah and its people under ' the operation of article lit of our constitution con-stitution during the past twenty years, ! and tlie effect certain to follow under I the proposed changes, have been j analyzed with thoroughness by I thoughtful representatives of heavy I tax-paying interests, and the dangers Incident to the proposed amendments have been clearly indicated to the senate sen-ate and house committees having bo-fore bo-fore them the proposed resolution and other similar resolutions aiming to accomplish ac-complish like changes in our laws relating re-lating to revenue and taxation. U has 'oen f reely ad mi tted hy members of the state hoard of equali-! equali-! z.i t ion that neither that board nor I tlie assessors in many of the counties have heeded tlie present constitution or Jaws of Utah requiring the assessment assess-ment of property at its reasonable rash value, and it Is likewise freely admitted that in some counties tuch valuations aro fixed at approximately 11 per cent and in others at lss than 30 per cent of such value. It is also acknowledged as a fact t hat the mines have, in virtually every instance, fully complied with the provisions of the constitution and the laws of the state in making their tax returns, and that they have at all times been assessed ' Hnd p:iid their taxes upon 100 per cent of their entire net proceeds, in addition addi-tion to tlie payment of full taxes upon l tin valuation of improvements placed upon such mining claims as valued by the state board of equalization. Should Enforce Law. Under these conditions common snse would seem to suesest that the rem-edv rem-edv for present inequalities is not to he" found in the squeezing nf further exactions from la w-abidini: enterprises, enter-prises, but tht the legislative effort should be exerted to an entorcemenl j of existing laws neainst such officials i as have been derelict in the peit'orm- I ance of their oath-bound duty. Nothing could be more unjust than to remove tlie present fair and equita- ' Mp safeguards fnntahv-d Jn our ioti-Mitution ioti-Mitution under whii'li cupUal has hn j lured into Utah mining in estinenti?, thereby leaving to the caprir of tn politician a nd to t he e-penmen;:i j giies of the untutored assessor tlie power tn exact from mining industries j (Continued on Page Tive.) I MINE OFFICERS OPPOSE CHANGE IN TAX LAWS (Continued, from Page One.) whatever they may be deemed capable capa-ble of contributing without reference to proportionate justice or other elements ele-ments of fairness. Such power once vested is certain to be exercised, and its oppressions once manifested will blight the most prosperous industries of the state, and until the blunder Is subsequently corrected will operate to discourage the upbuilding of Utah pay roils or the development and marketing market-ing of its mineral resources. Millions of dollars now invested In mineral lands, consisting of. coal and metalliferous properties of problematical prob-lematical value, will lie dormant until constitutional assurances are restored tliat capital for exploration, railroad construction, and the upbuilding of markets may be safely furnished. Should Conserve Payrolls. The "golden eeg" in Utah Is, in nearly every instance, the paj roll. Its conservation Is worthy of the most Intelligent consideration on the part of every friend of the state's welfare, and until such time as legislative legis-lative genius may devise a revenue system which does not impair the assurances under which millions of dollars of foreign capital have already al-ready hecome invested, and under which the millions necessary to in-fiure in-fiure successful future development of the state's mineral resources may be1, by constitutional limitation upon the power to tax, rendered secure against confiscation, there is and can be no logical justification for any change in our constitution as ft now reads. The present Is the most inopportune inoppor-tune time in the history of our state for the inauguration of experimental legislation. The constantly fluctuating prices of metals now cloud with uncertainty every metalliferous enterprise, whilo the Intense competition of other states more favored as to transportation transpor-tation and legislation now jeopardizes the great coal industries which have been and now are supporting Utah pay rolls aggregating jo, 000, 000 per annum. Oil Is being developed and brought into competition with Utah coals even in Important local industries, and is making great inroads in the markets of other western states heretofore supplied with fti el from Utah mines. The mining industries are, therefore, 1 ii no position to assume additional burdens, and It would be an injustice injus-tice to them and a suicidal policy on tho part of the state Itself to alter the present plan of taxation in 1 he interest of Increased revenue instead of executing tho law as it now stands, which would admittedly afford af-ford t lie state Its necessary re.venne, and at the same time spread the burdens bur-dens of government without favor and justly over all the state's industries indus-tries as contemplated by our constitution consti-tution framers. Of Vital Importance. These are matters of the deepest concern to every citizen of Utah who has at heart the welfare of tho state and its institutions, and the co-operation of all thoughtful citizens should be devoted to the preservation of the fundamental l;iw to which may be attributed at-tributed such prosperity as the mining piy rolls havo brought to Utah &iuce the constitution was adopted. It should be noted that the demand j for the amendment is not the result of any complaint of discrimination, inequalities in-equalities or unfairness to any mining interests, but that it emanates from diverse interests desiring to foist upon the mines an increased share of the burdens of state government. It should be remembered that the mines now pay a tax on 100 per cent of the original cost of their mining lands and a tax of 100 per cejnt on all the proceeds derived from their mining operations, in addition to a tax upon their improvements, a charter tax and an excise tax to tho general gov-' gov-' ernment. No just man can Intelligently Intelli-gently contend that they should pay more. Constitutional amendments relating re-lating to property rights should never be indulged except under the most urgent necessity and under conditions where injustice is certain (not to re-sulL re-sulL A constitutional assurance fchould never be withdrawn to the prejudice of those who have contracted with reference to its provisions. Under the constitution millions of dollars have been invested in mineral lands and in their development, fome of these investments have been made profitable while many others are (struggling in an effort to become profitable at somo future time. The pay roll, an ever present incident to I mUiing operations, Is the best asset possessed by any state. Under our present law the stato obtains an increased and correspond- ing benefit as the pay roll increases, which ia the case in every lnstanco j where mining operations are success-i success-i ful. The net proceeds tax works i iight and day against every pound I of ore or coal extracted. If mining is to be encouraged, the mines must be permitted to maintain reputable standing in the money markets and with their stockholders. Foreign money and fair home treatment are prerequisites to the successful invasion inva-sion of foreign markets for our fuel and for the development of every form of mineral within this state. The success of our mines means success to our merchants, mechanics, farmers, professional men and miners. Our mineral development is in its infancy in-fancy and merits absolutely .lust consideration. con-sideration. The proposed amendment to the constitution Is pregnant with suspicion that invested capital may bo raided by tax impositions and that future investments may not be deemed safe from confiscation. Un-J Un-J limited power to tax is equivalent to the power to confiscate. The constitutional consti-tutional limitation upon the power to i tax mines has been accepted and con- sidered as a sacred pledge on the part of the state not to confiscate and not to impair mining securities. To amend that sectioin in the manner now proposed would deal a death blow to tho state's most friendly interests in-terests and retard indefinitely the de- , velopment of our mineral resources, which now contribute so materially to the prosperity of the state and its people. Respectfully ' submitted. (Signed) Grand Central Mining company By C. E. Loose Silver King Coalition Mines company By Thomas Kearns Colorado Mining company By J. William Knight Jron Blossom Mining company By .T. William Knight Spring- Canyon Coal company By -T. William Knight Black Jack' Mining- company By J. William Kni.aht Dragon Mining- company. . .". By J. William Knight Daly West Mining company "By H. G. McMillan Consolidated Fuel company By K. L. Carpenter Black Hawk Coal company By K. L. Carpenter Panther Canyon Coal company By K. L. Carpenter Southern Utah Railway company By E. L. Carpenter Daly-Judge Mining company By U. W. Lambournc Snake Creek Mining & Tunnel company By G, W. Lambourue Ontario Mining company , ....By Ernest Bamberger Utah Consolidated Mining company By Fred Cowans Independent Coal & Coke company By George A. Murphy Bingham New Haven Mining company By C. H. DoolittJe Utah Apex Mining company By V. S. Rood Gemini Mining company By Jackson 0. MeChrystal Godiva M minor company By Jackson C. MeChrystal Eureka Hill Mining company By Jackson C. MeChrystal Kidge & Valley Mining company By Jackson C. MeChrystal Cn tun bus Extension rinijicr company By John F. Cowan Western Pacific Mining & Development company. . . .By'J. H. MeChrystal Southern Eureka Mining company By J. H. MeChrystal Wasatch Mines company By William D. Foster Chief Consolidated Mining company ."...By Walter Fitch Utah Copper company By R. C. Getnmell Bingham & Garfield Railway company ;Bv John M. Hayes American Smelting & Refining company By C. W. Whitley 1 The Agencv companv Bv W. H. Dale McCorniek"& Co " By W."S. McCoruick i Knight & Warnock By C. Warnock Rub Roy Mining company By P. T. Farnsworth Ctah Tdaho Sugar company .Bv T. R. Cutler 2. C. M. I ". By Thomas G. Webber Halloran-Judge Loan & Trust Co By W. J. Halloran Capital Electric company .By P. Xieol Utah Light & Traction company By S. A. Whitney Standard Coal company By L. F. Rams Cnrbon Countv Land company By A. C. Milner Tho Milner corporation . '. By A. C. Milner Hercules Powder company Bv P. J. McGanney Houston Real Estate 6: Investment company By C. W. Johnson Silver King Consolidated Mining company By Solon Spiro American Flag Mining company By George H. Rath man United States Smelting company (mines dept.) By C. E. Allen j Utah Fuel companv Bv A. H. Cowie J Merchants bank By John A. Piugrec Amalgamated Sugar company Bv L. R. Eccles Utah Lithographing company By William Buchanan L. & A. Cohn company By Louis Cohn Walker Brothers Bankers By L. fl. Farnsworth Utah Power & Light, company By C. E. Groobeck Rexall b & C. Mining company Bv M. R. Evans National Bank of the Republic v J. C. Lynch National Copper bank By V. U. Armstrong Svmna Utah Grocer company By P. L. Dorau Gardner & Adams company Bv C. F. Adams Salt Lake Seenritv x Trust company By I. E. McGurrin Utah State National bank By R. T. Badger W H. Dickson Lawreaco Greene Charles C. Pev W. G. Lamb M. P. Braffet " King & Nibley Samuel New house George W. Morgan F. B Cook Henry C. Lund F. J. Wctcott E. M. Allison, Jr. Howat, MacMillan & Nebeker James Chipman R. J. Evans, president Salt Lake Georse Austin .Stock Exchange Joseph Googhegan |
