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Show Mining Tax Amendment Is Reviewed by Judge Vanan Class Prejudice in Discussion Deprecated; Proposed Pro-posed Burden on Hazardous Industry Is Protested. ment in assumption of arbitrary power In the legislature. It also fails in comprehension com-prehension of the fact that if the amendment amend-ment is carried, and is Sustained by the courts, it vests the power to 'assess and tax' mining proceeds, machinery and improvements im-provements in the board of equalization; and if the amendment is lost the present law is in force. In this case, neither the governor, legislature nor board has the power to raise or lower the assessment of the net proceeds. "In conclusion, I desire to express my high appreciation of your courteous consideration." JUDGE C. S. VARIAN", who Is generally gen-erally regarded as one of the best legal authorities in this section of the country', has taken occasion in his capacity as private citizen, and not as attorney for any mining corporation, corpora-tion, to again review the proposed mining tax amendment to the constitution. The conclusions of the judge are hereby submitted sub-mitted for the careful consideration of the voters of 'Utah: "Editor Tribune In studying the various vari-ous articles written in support of the mining min-ing tax amendment, I tind most of its defenders appealing to class prejudices with an unanimity that is surprising. This is manifested in various ways. Some refer to ail mine owners as a class ,of the Idle rich who are exploiting the' natural wealth of the state without contributing their just proportion of the taxes. Others loudly proclaim their devotion to the farmer and business man, whose burdens, they say, are increased unfairly by the alleged delinquency of the mine owners. And there are a few who strive to enforce their views by imputing to those who do not agree with them improper and per; sonal motives, and one at least has gone so far as to state an absolute falsehood. In this last connection tiie writer may be permitted to state that he is neither an attorney for, nor a representative of, any mining company or mine owner in this state or elsewhere, and was not such attorney or representative in the constitutional convention, nor at any time since. "The question before the people is one of interest to all, and should be decided by minds uninfluenced by passion or prejudice, each disputant conceding to others the right to have and express their views. Let us consider, briefly, whether the farmer and others referred to in the discussion as 'the common people' are bearing more than their share of the burdens of taxation. Products Escape Tax. 'All property is assessed to one who is the apparent owner at noon on the first day of January in each year. The farmer harvests his crops in the fall, and the fruitgrower gathers his m the late summer or the early fall. If these crops are sold before the first day of January, neither farmer nor fruitgrower pays any tax on the product. So the- woolgrower shears his flock in the spring, and usually he sells his fleeces to the buyers for the trade before Christmas day, and be pays no tax to the state on them. He also markets bis spring lambs in the fall, and, as they are moved at once to the eastern or western markets, the state'' gets no tax for them. If the farmer, fruitgrower or fiockmaster deposits his money so received re-ceived in a bank, or loans it upon mortgage, mort-gage, he pays no taxes on so much of his wealth. It is true that moneys on general deposit in banks are the property of the banks, but the banks owe their depositors for the same, and such credits are subject to taxation as the property of the depositors. Nevertheless, save in exceptional cases, they are not assessed In this state, although the constitution and? the statutes expressly command their assessment. Authority is given the assessor as-sessor to require from every person in his cdunty a sworn statement of all his property, prop-erty, etc., but the law in these particulars particu-lars is practically a dead letter. The major portion of the product of the sugar factories is, I am informed, sold without the state, and. if shipped before January Janu-ary Vit pays no tax. The same is proba-hlv proba-hlv true of the spring and fall stocks of the merchants. At least, what is left over at the close of the year only is taxed, while the money received or owing for that which has been sold is not taxed. Receives Protection. "The property of all of these people, the untaxed as well as the taxed, is under and receives the protection of the laws of the state. This" is not all. Under the present methods of administering the laws, a man in this city in certains kinds of businesses can live in an apartment house or hotel, have an office in one room of an office building and do a business busi-ness of hundreds of thousands of dollars annually, without paying a dollar in the I way of taxes, and yet carry strong balances' bal-ances' monthly at his banker's; and further, fur-ther, it now appears that in the farming and stockgrowing counties thousands of acres of privately owned lands have for years escaped taxation. In the report of a commission appointed by the governor gov-ernor to probe these matters, it is stated that at least 85,000 acres of patented lands in fourteen counties have never been assessed since thev were patented. t is also said that It is believed thousands thou-sands of sheep, cattle and horses are escaping es-caping taxation. Such evasions of t he law requiring the assessment and taxation taxa-tion of all property in the state at its actual value could not occur if every citizen citi-zen were required to make a statement under oath of his property and if the bank "credits of all were ascertained and taxed. "Now. how stands the case with the 'rich mine owners?' Every dollar that has come into the hands of any mine owner or stockholder in a mining company com-pany from the net proceeds of a mine in this state since statehood has paid a tax to the state. Kvery dollar that in the future will be produced in excess of the cost of mining- and reduction will pay the tax. Miners Not Wealthy. "All stockholders in mining corporations corpora-tions are not rich. All mine owners are not wealthy. The vast majority of mining min-ing enterprises do not pay. More money has been ventured and lost in seeking and developing mines than has been realized real-ized in their operation. In the stock of the relatively few great dividend-paying companies are investments upon which families, widows and orphans are partially par-tially or wholly dependent for support. The development and working of certain mines in Utah has resulted in giving employment em-ployment to thousands of workers, and in adding to the" material wealth of the state enormous values. Laying aside all considerations as to the legality of the proposed amendment, the question recurs, re-curs, In view of existing conditions in the state relating to the assessment of property why depart from the universal rule everywhere of taxing propery upon actual values and commit the assessment of mines to the unrestrained judgments of men appointed by the executive and not answerable to the people? Is it for the purpose of enabling the stale officers, through the board of equalization, to impose im-pose a tax upon the mines each year sufficient to meet any deficiency in the revenues resulting from the failure to assess other classes of property upon the basis of 'actual value?' If this is not the purpose, what is? "Is it the purpose to thus provide for a larger increase of revenue at the pleasure of the appointees of the executive, execu-tive, in order to satisfy a demand for indiscriminate in-discriminate expenditure? If so, it were well that a careful survey be had of the numerous agencies by which the state's money is expended, when, probably, instead in-stead of expansion, a needed retrenchment retrench-ment would follow. Finally, we may consider con-sider a larger question involved. Civilization Civ-ilization depends upon the money stocks of the world. With the discovery pf America and the giving to the world the gold and silver from the mines of Peru and Mexicot trade was stimulated, and commerce between nations increased to an extent never before known. The arts and sciences were fostered and the credit of men and nations became a fixed and known quantity. As said by Hume, the greatest political economist of the eighteenth eight-eenth century. Business Stimulant. " 'It is certain that since the discovery of the mines in America industry has increased in-creased in all the nations of Kurope. We find that in every kingdom into which money begins to flow in greater great-er abundance than formerly, everything takes a new face; labor and industry gain life, the merchant becomes more enterpising, the manufacturer more diligent dili-gent and skillful, and even the farmer follows his plow with: greater alacrity and attention.' "And, as well said by a great man of our own times who honored his state (Nevada) in the senate of the United States for thirty years, in a speech in that august body: " 'In a civilization such as that of the present day, a proper volume of money is as necessary to the freedom of the people peo-ple as is the ballot. " 'It is known to all acquainted with history that it was the output of the mines of Australia, California and Nevada Ne-vada that strengthened and upheld the credit of the" government during the years of inflation following the close of the civil war. But there is no way of computing returns of labor or money in-! in-! vested. " 'Mines are discovered, not made, and I at this stage of the. world's progress can be discovered only, after long, tedious, J and, on the whole, expensive search. ! When so discovered, in nine cases out of ten, after absorbing large .amounts of capital, they have to be abandoned, as i not of sufficient fertility to defray run-j run-j ning expenses'. Many millions of I dollars have been expended in sinking j shafts, boring and blasting tunnels, erecting erect-ing hoisting works, creating plants and constructing mills that have never re- turned to their projectors the value of one dollar.' Senator Jones, United States Senate, 1S93. Hazard Is Great. "As the hazard is great, it was neces-I neces-I sary that .the promise of reward should be sufficient to induce labor and capital to enter the field of exploitation. And so the government, by its statute, promised prom-ised him who should discover the mineral wealth of the nation, on or under tho earth's surface, that it would give all he discovered and reduced to possession for a nominal sum. The miner and prospector pros-pector answered the seductive invitation in great numbers, and thousands of their graves and prospect holes tell the story of failure on the desert and mountainside mountain-side from Alaska to Mexico. This is not the time to lay further taxes upon the Industry, even if they were just and lawful. law-ful. The country is at war. and the government gov-ernment is calling for all that the manhood man-hood and the wealth of the nation can give. It is demanding not only the precious metals for its coinage and for the world's stock, hut all the copper, zinc and other mining products, including includ-ing phosphate constituents needed In the manufacture of munitions and other war material. The esteess-profit, income and other war taxes laid by the government would seem to be sufficient burdens upon the industry. "Since the foregoing was written the governor has announced that he plans to 'recommend to the 1019 legislature that the amendment be made operative to the end that metalliferous mines shall be taxed on the basis of not to exceed three times the net proceeds, or profits, plus land holdings on the valuation of the ac-! ac-! tual purchase price paid to the govern-I govern-I ment, and improvements.' This proposition proposi-tion is as vicious as the proposed amend- |