Big Hole Basin News (Wisdom, Mont.) 1912-1925, October 30, 1924, Image 1

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Small Mine Operators From 1868 to the Eighties this section ot the state was known tke country over as being on« of tka greatest producer's of tka precious metals. This mining was done in placer diggings or shallow mines re­ quiring tittle machinery except that made by home talent. When these mines were practically exhausted there was no Marcus Daly to come forward with foresight, ability and outside capital to develop our great values at depth. There are no better undeveloped properties than we have here, of no value to us or the state without out­ side capital to develop them. We cannot secure ttfla capital here. The limited number of mines now work­ ing can take out and ship only the high grade ore. Then the cost of mining, transportation and treating in moist cases eats up most of the values. There are probably 1,600 claims held by email miners and prospectors in this county who are compelled by law to expend 1100.00 per year on each claim. This tsx of $100,000 a year is spent right here, and the work is larely done by men who must work a large part of the year to get money to do this. With capital to develop them om properties would employ several thousand more men. Think what this would do for our farmers and ranchers— a home market! We have never heard a miner complain at what has been done in the past to help them. They sorely needed all .they got— outside capital by the millions, protection of 3 cents per pound on beef, SHc on butter. 8c per dozen on eggs, 80e a bushel on wheat, etc. What has the poor miner got? Advanced coet of over 60 per cent to buy supplies to do his work, cop­ per three cents a pound less than before the war. With better pros pects of a large foreign demand we were in good shape to secure capl tal to develop our deep mines. There is no protection on metale. Our gates are open to the world against peon and coolie labor. The mining industry developed this country— it brought the people and the railroads Now, for God’s eake don’t kill it un der the plea o f more revenue needed for sitate expenses. Tell the truth Montana to furnish more money for new offleeholderiHto we. out chairs and automobiles! Mr. Dan Kelly so ably presented the faets in his Dillon speech. We wish every voter eould have heard It. We don’t attempt to cover the ground be presented— false state meats as to taxes paid, no more tax needed, mines now paying more than their just share— but we do need an economical administration. We need, not vicious taxation; false state­ ments to scare capital away; bat a united propaanda to bring it here and develop our natural resources. We want some of these benefits while the present generation lives. Do not let hundreds of old prospect­ ors who helped make this eountry for you become • burden to yon, or to themselves. Give us a square deal and vote NO on the Grose Tax Referendum No. 88. FRANK B. FELT. HALLOWE'EN ENTERTAINMENT The third annual eommnnity Hal­ lowe’en celebration will be held at the CemmnRy building Friday B ight Lock your chicken hense, as Sambo, the dancing nigger, w31 be fa town. There will be free lemons in love- making, The Fatte* of 1 I K , The BaBeon Dawteg Twine, a marvelous tigkt-rope walker, a a t« « tea lor re- frrau t t e f eld lofks, and beautiful Indian maddens. Don't tali «« bear fn L leeegi Loeeft manicai number? Wbe is comtag? * gji'iw ito tlf loan a * teas eal « f t 4 * « M B . . The Truth About the “Small Operator” Mining Men in 1 6 Counties Point Out the Injustice to Them of Proposed Metal Mines Tax WESTERMJUNION ftw teteST TE u I to AM M M f i i M f i M M I f t Maataawr g i * i « « ( t n u » » , e w t m i — s « — t a * ta n t a * Virginia City , Hunt.. Oct 10. ISM. . Madison Bounty la In groat uaod of capital for the development of Its mineral resources and the passage of thu gross production tax measure will make money hard and In most cases Impossible to obtain, and as a result ths state will lose more through undovelupment than can be gained by the passage of the law, the mere propoital id which has already caused outside Investigators to hesitate. CHARLES M SHAFER. Utica, Mont.. Oct 10. i m Fur over thirty years surrounding country tins been hoping for de­ velopment of mountain of Iron deposit n >w In this county If moaaure Barries, all further hope destoyed Gordon pa tehee knuwn radius of ten miles during dry year wore saved by purchases of Lehigh Goal Mines when running These now ciosod for good All these and many more tributaries to market would be created by Iron deposit develop­ ment. Many good prospects and prospectors' lives and work will bt wasted, say well-informed people In this county I'robably majority misinformed as to true facts as regards their own Interest in way of work provldsd and markets created. By defeating measure all will favor their own interests CHARLES UADSEN, New Sapphire Mine Syudioat* Neihart, Mont., Oct 10. 19*4 XUver 'Dyke's opinion that tax Is grossly unfair and It will certainly lUIVe the effect o( retarding mine development throughout the state as other states are more liberal Natural physical conditions in Montana make coat of development and operation of properties very erpenslve, therefore Montana should encourage rather than penalize organised effort of companies to develop slate's natural resources Ncihart dis­ trict has vast mineral resources that lisve not hern developed on ao- oount of unfavorable mineral prices last few years and this tax would further retard this much needed development Believe tax to be dis­ criminating and will retard general prosperity of state If this law Is passed It will certainly causa us to slow up on our development plant and will restrict operations on aceount of adding to our present high cost of operation It is our Information that other mine operators, leaser» and buelness men as well as ranchers In the community test as We do about this matter as they realize that restricted mining actually will result In hard tlmss (or this district D 1 HAVES. HELENA. MONT. Sept 24. 1924. Dr Geo H Barber. Chairman, Lewis and Clark County Welfare Association, Helena, Mont. Dear Mr Barber: Helena secured Us original start from mining operations. Us op­ portunities In the near future are greater than they have ever been before, but to realize them Helena and Lewis and Clark county peo­ ple and the people of Montana must give the mining men Just a square deni and that is all Ths small mining men of Mon­ tana will suffer if this bill Is passed, for they are the ones who must seek outside Investors' money If th< y are to become successful and growing concerns. Yours very truly. MONTANA COI’I’EH AND ZINC COMPANY By 6. Roaenfteld, President Deer Lodge, Mont., Oct. II. 1994 The proposed mines tax, had It been In effect Iasi year, would have cost our company two thousand dollars, notwithstanding the fact an operating loss was encountered during the sume period To success­ fully continue our mine operation, a large Investment is necessary To prosecute development work on our lower levels and increase our ton­ nage output, the ore being low grade, large product inn Is necessary, consequently the maximum tax of one per cent would unduubtedly apply although our profits would be less than our neighbor who is mining higher grade ore but keeping hla production below one hundred thou­ sand. The bill discriminates and Is unfriendly to the mining operator» MILES BLUNT, Manager, Butte Jardlne Metals Mlnea Bozeman, Mont., Oot. 9, 1994 The general voter in the district Is open minded on the proposed mines gross production tax. Capital is shy of advancing funds for mines in the development stage with adverse tax laws pending before the voters. The passage of the proposed gross produci ion tax will make It much more difficult to promote even the most legitimate mine pro­ motion, and there are several mlnea in this county In the course of development which the passage of this law would slop This law must of a necessity be a great detriment to further development Our dis­ trict Is In need of money for mine development. A. A DIER. P H i u p e a u n « M in i n « c o m p a n y m anoankss e a « e MumilM, m m aha September 23. 1914 The effect of adoption by ths people In the coming election of the Initiative measure for the Im­ position of a gross value license tax on the mining Industry, would operate as an Increase of 81 per cent over the present metalliferous mines license lax uf our concern We believe the proposed license tax would prove very burdensome to the Industry, and In many In­ stances, practically confiscatory No good will come to the state by crippling the Industry In this manner, as In our Judgment, It will greatly limit production In the state and decrease present revenues by destroying subjects of taxation. Mine» are already paying o u and one-half per cent metallf- ferous mines license tax. and one per cent corporation license tax. both based on net proceeds, also the full tax on one hundred per cent assessment of net proceeds— ths highest assessment on any species of property, also the tax on mining claims, as well as sur­ face improvements and machinery, in eddttlon to heavy taxes paid to ths government If any more Inventions, or de­ vices, under the guise of license taxes, are added to the burden borne by the mining Industry, It will be a sorry day for Montana. Very truly youra, R 8 BLITZ. Anaconda, Mont., Oct 9, 292A A tax upon the gross production of typical oros of this soctlon would take all that la left In them for the producer. There 1» but little min­ ing left In Deer Lodge county. The proapt ctors and operators are all broke, without the additional load of a gross production tax They have only the ears and the tall left of the hide, as It Is This district has produced over ten million In gross gold from free milling opening In an ore thut has averaged as mined better than HoMlngm gold of Ontario, which for 1923 for the year was *7 84 pur ton Tin- minerallsod area of this district Is large, the need of capital dominant and as the ores are low grade, a gross production tax would be the wir«i thing that could happen Irrespective of the burden this proposed tax would make, the need of capital Is always with us A gross production tax. such as Is proposed. If operated In Canada would have wrecked the Holllngur mine, end if put Into effuct In Montana will certainly etop what little Work Is going on at this time. LUCIAN EAVES , -Leaser, Georgetown Mining District . Butte, Mont., Oct 9. 1994 1 have been engaged in promoting and developing mines In Montana for the past twenty five yeara through capital necessarily raised out­ side of this Btato 1 am now managing and developing one of the •mailer mining enterprise» In bliver Bow County Proposed Initiative ineueure number twenty eight, known as gross value metul mines tax should be voted down and killed by the voters In Montana for Its effect Is lu lessen employment and It acts as an absolute bar to the entrance of new capital Into mining enterprise» In the slata The entire state uf Montana, farming business and mining Interests will be seriously Injured by Its passage Montana, to recover from Its frightful period of depression, needs all the new enterprises and hew avenues of employment for Its citizens that It can get What Montana needs Is rigid economy and the Insistence by Its citt- Sens that Dispute of Montana be conducted along conservative, ecu- numteal business lines and not by wasteful, extravagant politicians JOHN McBAURON Ureat Falls, Mont., Oct. 14, 19*4 I wish to express my opposition to proposed license tax on gross output of mines I believe such a law would be more Injurious In pro- portion to the small owners than to larger mining corporations Such a law would tend to prevent the small owners from securing outslds rapila! lo help open up I lull properties and would. In my opinion, even­ tually leud up to the question of a sales tax on all business, Including farming Instead of working for new methods of taxation. I firmly believe In reducing expenses of government so as to get along without burdening the people with rimre taxes 1 believa the proposed tax should be defeated JAMBS T STANFORD Missoula, Mont , Oct 19, 1924 If the mine gros» production tax Is passed, It will do mnr» to throt­ tle the mhvto* to duett* hs Montana than any mine tliat lute SVHI H en done before. What the mining Industry of the state needs Is help and encouragement Instead of luwe that will retard the developing uf the stale's mineral wealth We have Invested over two hundred thousand dollars In this county and If this gross production act becomes a law H would Compel us to shut down. We will gladly help In any way we can to defeat the act. MISSOULA MINING ASSOCIATION, Per E. S GAMBLE, Pres and Mgr. Henderson, Mont., Oct 9, 1924. If Initiative No. *8 becomes a law in Montana, It would be a erlme as It would undoubtedly kill mine development In this county, which Is Just In Its Infancy As under present conditions it te hard to Interest eapltal In our wonderful mine prospects, we need laws to help our pros­ pectors for a revival of mining and not such a disastrous measure as Is now before the voters of this state, to kill It The lumber mills In this section depend largely on the mining Industry for their market and existence. The passage of this measure will put them out of business SAM L BOYD Dillon, Mont., Oct. 19, 18*4. In oar opinion proposed gross production metal mines tax lx unfair. No tax measure whatever should be passed by Initiative vote and no chance Is given for amendment or disousston. Proposed measure would not tax all mines equally, but would place heavy burden on producer of low grade ore. There Is no question as to attitude of capital with such tax measure a law We could not finance development, which would handicap this district If not close all activities We have omn- bar of properties where capital Is ready for heavy development which would be discouraged by passage of sucb a tax law. A revival of min­ ing here means renewed prosperity and a market for our farm products at a good price. WM DUNN. FRANK B FELT, CHRIS SNYDER, B. m . M c L a u g h l i n , h u r l e y l e a c h , ja s . l . COCHRANE, D, V. ERWIN, GEO W. FRENCH Yssnm n Bma a s u m s s m company M sudu . M—rswe Bept. »7, 19*4 If this tax becomes n law It simply means a difference between a profit and a loss to the Por­ phyry Dike, and at this time when we are arranging to Increase our production , which necessarily means a largo Increase In ths number of men employed and an Increased benefit to Helena and Lewis and Clark county, It would appear to me that the people of this community and of Montana do not went this state to prosper, or Its mining Industry to grow, but rather by legislation shut out tho little fellow and allow tho big fel­ low to stay JAMES BREEN, Thompson Falls, Mont., Oct. 19. 1921. The metal mines tat will be the ruination of the mining Industry In Banders county The county's future depends largely on the wealth Under the ground, and with no local capital t« develop h, outside money must be brought in, and with a tax of this kind It can never be dona The one hundred thousand dollar exemption is nothing, as a mine that would sot produce more than this would not Interest investors. Ths bfH is a pad one for mining men, large or small and hers in Sander* county R would bo a menace to all of us S. J VASBINDER, Secretary Chamber of Commerce, PhUtpSburg. Mont. Oct 14, 19*4 Tho gross production tax as proposed In initiative No. 98 is. a* Its M m fanpHea. unfair end unjust In levying on total value of a mine's pruda« and Imposes double taxation on expenditures, sodi as labor, t >ppw«e freight, royalty, etc. This county's prosperity depends largely Mpaa the setuut, variety and development of Its m tn tr m l reeouroe». but What fadseuM tt bas capital ft nearly aB the bicorne is to be taken for On payment of federal, «tate and county taxe*’ This proposed measure « ■ cap tho already heavy tax burden che mining Industry bears and wB plans a padlock on the prospector's tunnel as well as seal the ■MMMgr stwfta. «ruait» eouwty ns a whole does not want this to happen. * . s. mum h . a ruoam astt. l . d . rmttK JOHN NTCKKT. Minant Operators of Oranlte County. Helena. Mont., Oct. 4, 1894 The real truth Is that the mining industry pay mors taxes and more kind of taxes than any other In­ dustry In the state It Is being urged by those in favor of this gross production tax measure, that only the \big fel­ lows\ will have to pay it. and that It decs not bnrt tho amali mins owner. This la not true, and la only another sample of ths same old campaign staff going tho rounda Even now I am being held down and hampered for want of mousy to proparly equip tho art as I am now operating la the \Little Rock les\ in Phillips county, and tho reason give« me by mon with money 1» that they want to wait and see whether this measure pas see It If does, I can't get It My belief is that this gross pre­ diction tax is but a fore-runner and tbs entering wedge for tho gross production principle of tax­ ation and that within this decade attempts wffl be made to fastoa ft m s s farming. awekrafstag and •Cher laduotrtoa Tours r*ry truly. CHAf WHITCOMB. Troy. <• • W* HHfei ■ ■ t a «at. Oct «. m t CMs rieerioe serioug i proepsi Wj of Moa- ta» fa alate eertater I f « a Troy, m ft L.teet % t*«4 SILVER DYKE PROTESTS. The future of mining developmen* In Montana rests solely on what dis­ position voters of the state make of the metal» mine tax at the Novem­ ber election, Howard 1 Young, man­ ager of mines for the American Zinc, Lead and Refining company, declared in Great Falls Saturday night \It Is equally ae unfair to tax tho fanner on the gross profits of ills wheat crop as It Is to tax the mnies on their grosx profits,\ Mr. Young •aid Several years are required at time« to develop a mining operation to the extent that It will yield dividend», aaya Mr. Young, and It la In this In­ stance where the proposed amend­ ment will do the greatest wrong In the development of a mine thousand» of dollars are sometimes written in the \red\ before any profit Is ts- eelved, but this will not be considered In the amendment, he arguea. Elkhorn, Mont., Oct 9, 1924. A revival of mining would bo of the greatest benefit to our entire county but I do not look for any tueh revival should this proposed scheme of taxation become a reality as no one cares to invest ths large sums of money neces­ sary in tho development of pros­ pects ft ho has to look forward to as overwhelming tax burden when ho begin« to realize hi« w«)I earned return«. On ths face of It. thli proposed haw seems te excuse the «mali operator but we must all look for an outlet tor our product and If ws find tho heavy taxea paid out by ths Hg people urbe ara able to «ira and opera*« smalterà re­ flected fa their treatment charge«, we shall discover that we are pay­ ing our part o t them taxea. (Signed) p c. W A U GER. Libby, Moutaaa. Oct. t . 1*24. t have tees engaged ta mining la Lincoln canty ta a «rnaB way ter a wwte— o t yean and 1 kaew the hardship« «neon— red by the * ii^aSSta t e t a * r r ' (O r8*M - Nta a n stow «e t a n * « M r amate te «tee tefautry «a la r aad wWfc * e - ! * » % * ! jiflflte I Helena Mont., Oct 4, 1914 Dr Geo H Barber, Chairman, Lewi« A Clark Welfare Assn., Helena, Montana- Dear Mr Barber: Pursuant to your request I am forwarding to you Information, regarding the \Block P \ Min# at Hugheiville In the Nethart dis­ trict If this proposed Gross Pro­ ceeds Tax 1« enacted into law It will but add a further loss to this mining operation It seems unfair to add further handicaps In the way of taxation on the small miner, who Is try­ ing through development to place his property on a paying basla I fee! that the theory or prin­ ciple of a Gross Production Tax is a dangerous one to establish in this atate, and if applied te mining might extend to other of our basic industries, farming And stockraistng. Tours very truly, T. C. POWER BROS.. By C. BOWEN. President Livingston. Mon*.. Oct. IS. 1924. \The present agitation and news­ paper talk against the mining Indus­ try has attra«ed much atter-tloa outside the state, and if ths tax measurs »neosods. It will be taxes everywhere te mean that sastern mousy Is not safe In Montana It is not on'y that 1 per cent of the gross proceeds Is birrs* than ft looks and may amount to anything from J9 te 1W par cent of the profit»; but it is tee who!» spirit ot the present agita- tioa “ This howcfltty against the mtntng testae— to tee rankest folly, ft 1 « ktetag^ks^n—^te— lays (he guide* f— Its mtosa and there are scar— ot good - t e - «te g MM. for tack ««ft. “As ft ts evoa worn, tee —fa— o t « t e - sua are te* f t w w f t he— fttaai. W orn * « t e a «tarts up 4a tbs mega tsaaA tee m e fcers ts tee matey t e a ■ t e g a * « i

Big Hole Basin News (Wisdom, Mont.), 30 Oct. 1924, located at <>, image provided by MONTANA NEWSPAPERS, Montana Historical Society, Helena, Montana.