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About The Sumpter miner. (Sumpter, Or.) 1899-1905 | View Entire Issue (Jan. 4, 1905)
f I i THE SUMPTER MINER Wednesday, January $. iqc V . M ' .J TO FIGHT EDDY 1 Tlio Eddy corporation tux Inw, in ho far iih it ufiouta mining corpora tions, is, if tliu plauH outlined by a iiuihh mooting f citizens in llotul Hutiiptor last Wednesday night do not miscarry, a dead one. Tho moot lug, which was hold under thu ampices of thu Sumpter district hranon of tho Oregou Minors' association, was largely attended, no, only by representative mining man from all parts of tho Hiiinptar camp, hut by nearly all tho promlnont merchants and IiiihI iiohh tnon of thu city. Tho concrete raHiilta of tho mooting woro the appointaiant of a commit too of five to proparo resolutions embodying tha sense of (ha mooting, tho appointment of a finance com mi t too and adjormaant until Satur- day evening, December HI. It waa practically ducidod that an attompt at (tin foi Incoming session of tho legislature to repeal tha Eddy law in toto would ha doomed to failure. Therefore, an ellort will ha made by ItoproHoiilativo A. I'. Smith, aHHiMted by a utrong lobby of mining men, to amend tha bill ho as to ex empt mining norporatioua from its taxation provision. Among the representative mining men who thronged thu iiotel lobby appeared tha follewing: Emll Mol or, general manager, and A. A. May, assistant. Hiiperiiiteudeut of the North Pole; .luhii Wyatt, of tha 10. & 10; Prof. II. II. NicholHou, of tha Standard, Morning, Oregon Mnu arch and Muck ilack; Tony Mohr, of the St Joe, St. Louis, Unit alo and Wisconsin; A. ('. Smith, of the Emma; Tom (!. Cray, of the Valley (Juooii; O. O. Wilght, or tha llluo ilird, lluokhuru and lilack Hutte; L. V. Swlggott, or the (Inldon Char iot and Orleans; W. C. Calder, of tho Quebec; L. (J. Lilly, of the Itahy McKee; Nell. SoreiiHou and J. K. Shollou, of (he Friday ami High land ; Don Wlllard, of tho Little, Cracker; d. !!. Hood, of tha Auburn Deep, C. I'. Holly, of the Holly group; Judge W. S. Newbury, of tho Moi nl iik Star; .1. Win VVIIhiiii, of tho Listen hake; L. It. Ilellmau, of tho Cracker Otognu and Califor nia, Sumptor'ri mercantile and pro foHHional world wan reproHeuted by C II. Chance, .liuli o C. 10 .vllen, Maj. II. S. Muck, Joseph Sohwarlt, l P. MoDovitt, II. I'alk, li. W. Liivimi1, Clark Snyde, W. E. Kahler, Joe StCnull, S. II. Dell, S. S. Start, I j. iMarkham, II. S. Love, P. J. Ilanuou, Dr. C. M. Poaroo, .1. P. Holland, (Jraut Thurnhurg, C. K. DoNflto, K. 11. Ho.uodlot and others. ' Ui ' I'lio mooting wan called to order by .1. F Shulton, chairman ot the Sump tor dhtrict association and ox -officio memitur of thu Slate Miner' asuoola tion, who brielly outlined the pur poMn of the gathering, stating that tho object aimed at wan to discuss waytt am) means furrullovlug the mill ing IndiiHtry of thia state from thu onerous burdetib imposed upon it by tho Eddy tuirporatlou tax law. "During the last ntuwiou of the legislature," aaid Chairman Shelton, THAT TAX LAW "lawn were passed atfooting the min lug InduHtry of thia statu. A tax waa Imposed upon the development of our mineral re-ources. It now seems to be the concensus of competent opinion that thuHO lawa are not con ducive to the beHt interests of one of tho most importnut InduBttloH of the statu. "There are two classes of corpora tiotH in Oregonmining and Indus trial. In point of numbers tho former are greatly preponderant, aud in point of importance, aa affecting the development of latent stato re sources and in direct wealth produc tion, there in no uompariHon. Those two cbiHHOH of corporations, it seems, are antagonistic. 1 take it that one of the purpoauH of thia mooting Ih to teach the ludiiHtrial clans that in thia mining camp, two oi three big pro duclug mlue-i are today creating more wealth- adding directly to tho wealth of the world without coming into competition with any other producing agency than any one other InduHtry in the entire atato. " Secretary Anthony Mohr then read a letter from President V. 1). H. DoiIhoii, of thu Oregon Minora' asso ciation, who wild that lie la formulat ing a campaign agaluat auch parts of the lOddy law aa effects mining. "1 think It impracticable, " writes Dodsou, "to repeal thu entire law, and fuel that the only hope of sue ochh ii to centralize influence to Have mining companies excepted." Mr. Calder wild that ho wanted to hear a plan for uxumptiug mining companion. Thu chair explained that no definite plan had yet buon evolved, and that this meeting was for that purpose. Secretary Mohr said that when a delegate to thu American Mining Congress ho talked at length with other Oregon delegates, who thought then that it would bo unwise to at tempt to utterly repeal thu Eddy law, but that every delugato pledged hliiHolf to work for tho exemption of mining corporations. "Thu Eddy law," said the secretary, "Ih onu of tho most obnoxious legislative mans uroH ever perpetrated on a mining community." J. Win Wilson said that the Eddy law shorn! be repealed, and that in Its place should be enacted a general omnibus mining law, containing pro visions for tho fostering of tho min ing industry. Hon. A. P. Smith agreed with Mr. Wilson. Ho recited thu mlulug leg islation history of Colorado, lit which statu an attompt waa once made to enact a measure vory much Ilka tho Eddy law. "The mlulug men of Colorado flocked to the legis lature," said Mr. Smith, "aud lu utoad of a law taxing mines, a bill was passed absolutely plauiug them ou tha exemption list. Thia shows what co-operation can accomplish. "It U eviduut to my mind," con tinued Kepreseutatlve Smith, "that all thu majority of tho Oregon legislature wants its revenue, cariug little or uothiug about sources, which is very much in the uaturo of a hold up. Au atempt, therefore, ou our part, to repeal the tiddy law, which ia a revenue law pure and simple, is doomed to meet with violent op position. I have therefore been con sidering the advisability of introduc ing a substitute revouue law, taxing franchises and companies making a profit from public utilities. I be liovo that such a measure would ap peal to the members of the legis lature." Mr. Smith nivocatod ,tbe Beudiug of a delegation of miui'ug men to Salem dnrlng tho coming bobbIou to show the revenue men bow importaut it is that the miuiug Industry of Ore gon should not be imposed upon. . "Tho Eddy law is driving capital from this into other mining states," said Mr. Smith. "It must either be repealed or so amended as to remedy such au evil condition of affairs." Mr. Calder wanted to know what specific arguments, were to be sub mitted to the legislature. Uood reasons, he said, must be shown why mining coiporations should be ex empted from taxation. Mr. Chauco thought as Mr. Calder did, and therefore moved that a com mittoo of five be appointed to pre pare a sot of resolutions fur submis sion to the legislature, setting forth the reasons why miuiug companies, should be absolved from taxation. Tho chair named the following cemmittee: C. II. Chance, Emil Melzor, II. ii. Nicholson, L. 0. Lilly aud Seymour II. Hell, with Hon. A. P. Smith as ox-otiloio mom be r. After considerable discussion as to the powors of this committee, led on one side by Commodore Tom C. Cray, who wauted the committee to have mil power, 'and by C. H. Chauco on tho other, who believed that the committee's report should be dis cussed and adopted at a futuro meet ing, it waa decided that wheu the meeting adjourn, it adjourn to meet Saturday evening, Dee. .'II, to hear thu committee's report. A guueral discussion of ways aud moans of fighting the Eddy law then followed. Seymour Hell said that it would be a hard job to repeal tho law. Ho pointed out that comparatively tow of tho inhabitants of Oregon were Interested in miuiug aud that tho majority aro anti-oar-pnrationist8 by birth aud training. Ho recited the history of a similar legislative mixup in Washington sovon years ago, drawing the conclu sion that an attompt to exempt cor porations from state taxation is doomed to failure, aud that the proposition to utterly absolve mill ing companies is impossible. He suggested a mere modification of tho Eddy law a roduclinu of lax. "The Eddy tax as it is, is uot particularly burdensome," continued tho speaker. "Tho worst featuro of tho law is that tho word has gone out to eastern in vestment conterH that Oregon laws aro unfriendly to tho mining industry. That ia tho most objectionable part of tho bill. "A bill to repoal tho Eddy law, or an ameudmout oxemptiug miuiug companies, would uot pass. If it did, Ooveruor Chamberlain would veto it, because he fs a corporation tax advo cato." Chauco suggested that Chore could be no objection to .miuiug qompauies being placed ou the same basis as in surance companies, which are exempt from taxation uuder the Eddy law, but which are required to pay an or ganization fee aud theu a tax on their uet profits. Mohr demanded that these insur ance compaulee be placed uuder the Eddy law aud miuiug corporations exempted, giving cogeut leaious. Calder oould not see uy good fight the insurance men. J. Win Wilson could. He lam basted the insurance companies oper ating in Oregou, whose Bole invest ment consists of a roll top desk, and whose incomes are rabulous. "Do they create any wealth?" thundered tho speaker. "Do they dig boles in the ground and make producing mines out of prospects? Do they dej velop the latent natural resources of this state? Then why should tbey be exempt from taxntiou, and heavy burdens bo imposed upon the miners who do tbeeo tbiugs?" Hull suggested that the strongest point to be made against the Eddy tax law as appliod to mining cor porations is the high capitalization of this class of companies. "We cauuot disguise tho fact that the high capitalization of mining companies ia for the benefit of the promoter. Aud nobody has any kick, ooming. The promoter is a very necessary per sou. He occupies a legitimate posi ation. He h au integral part of the miuiug industry. He built this western country. Without him there would bo no now miuiug enterprises in the uatinu. "Industrial corporations usually havo a low capital stock, aud under tho Eddy law are thereforo taxed but a small sum. Miuiug companies, on tho other baud, get it In the neck." Markham said that the big produc ing minos can staud taxation, but it worked a hardship ou tho little follows. Chauco asked tho assembled representatives of big miues in this camp if they woro williug to pay a tax for tho privilego of producing wealth. Melzor said no. Wyatt ditto. Nicholson also responded in tho negative. Theu followed a dhcussiou aa to the advisability ot sending a delega tion to Salem to help Representative Smith fight the battles of the miuers. Seymour Doll called upon Mr. Wyatt, whom he said operates a miue owned by a man who wields more in fluence at Salem tbau auy 75 men in Oregon Jouathan liouruo, of Port laud. Bell humorously told his own experience as a lobbyist, in which capacity be was usually a white chip. "If wo on n oulist tho Borvices of Hon. Jonathan liouruu in our behalf, wo cau knock tho Eddy law galley-west ami crooked." Wyatt said that while ho had no authority to speak for Mi. Pourue, still he bolieved that his principal was heartily in acuord with any move ment for a bettermeut of mining con ditious in Oregou. "However, Mr. liouruo will be absent from the state during the uext legislative sessiou. " MoDovitt also threw a few bequets at liouruo, whom he said is perhaps the most powerful political flguro iu Oregon. Mr. Smith said that ho would cor tainly enjoy beiug mixed up with Mr. Hourno iu a common cume, and suggested that a lobby be suut to Salem to lay seige to the Honorable Jouutbau. Mohr said that Mr. tiourue would be a good man to call ou for aid, hut that the real hard work would be doue by the raeu most vitally inter ested. Leveus recalled the good work of the assessor and of the equilizatiuu board iu assessing the Sumpter smelter. Theu followed the speeches of the evening, mour H. Bell: "This will need some sinews three beet Said Sey- associatiou of war. 1 will be one of 25 men to 9100 each." contribute Continued on page, four, ,,- reason why the minors should mmmmmmmmtitm