OCR Text |
Show EXPERT OPINION. "It should be stated at the outset that it is utterly impossible to accurately accu-rately value any mine, owing to the many speculative factors involved. The best that can be done is to state that the value lie3 between certain limits, and that various stages abovo the minimum mini-mum given represent various degrees of risk. Further, it would be but stating truisms to those engaged in valuing mines to repeat that, because of the limited life of every mine, valuation of such investments cannot bo based upon the principle of simple interest." Needless to remark, this is not the utterance of one of our renowned local "economists." It is the remark of Herbert C. Jfoover, member American Institute of Mining Engineers, mining and Metallurgical Society of America, Societe des Ingenieurs Civils de France; Fellow KoyaJ Geographical society, etc., and national food administrator of the United States. Mr. Hoover remarked it in his "Principles of Mining," one of the fundamental text books of the industry. in-dustry. In the course of a distinguished professional career, which gained -him an international reputation as a mining authority before the world at large knew him as the savior of Belgium Bel-gium and the food provider of the allied nations, Mr. Hoover, as he frankly confesses,, con-fesses,, failed to develop the vision that would enable him to see through solid rock or to anticipate what future markets mar-kets and operating conditions would be Consequently, he does not tell us what the "full value" of a mine is, for taxation or anything else. He says he does not know. Others who have devoted their lives and exceptional talents tal-ents to the subject say, the same thing, and the practical experience of all who have engaged in mining confirms it. All attempts to place a value on a mine, for purchase or any other pur-poso, pur-poso, are necessarily based on several assumptions, the value of the ore in sight, the probable amount and character charac-ter of the ore to be disclosed by further operations, the probablo future values of the ore, the operating factors, possible possi-ble improvements in methods and other speculative considerations. The owner own-er of a mino acquires it with a realization realiza-tion that it may make him rich or may be a total loss. Instances can be multiplied mul-tiplied to illustrate this on both large and small scales. . The present war has created a demand for certain so-called "war minerals" which will cease with the end of the war, and such mines will" ,be worthless. Hydroelectric 'power is supplanting coal, even on transcontinental transconti-nental railways, and may ultimately make coal mines now valuable of little or no value. The present-day value of a mineral to be produced years hence is not ascertainable. Sensible men do not waste their time trying to fit facts to theories, but consider con-sider the facts to establish principles. The men who framed the constitution of Utah were sensible men who . accepted the obvious facts regarding mines, and built thereon a sensible plan of taxation. taxa-tion. They provided for a tax on the surface ground and the improvements at their value, .which is readily ascertainable, ascer-tainable, and on their mineral contents, which is not ascertainable, by taxing their annual net proceeds at full value. By this method they provided for the taxation of all of his property the mine owner used or could use, and, because the method was fair, the industry was enabled to develop and has the prospect of further development unless ruined by hasty, unconsidered legislation. There is little reason to expect that we shall have men with superhuman powers on our state, board of equalization equaliza-tion to arrive at the "full value" of a mine, and the proposal to place a great industry in a position where political appointees are permitted, without restraint, re-straint, to guess at its value, or worse, without recourse, deserves the utmost condemnation of all right-thinking people. |