Mining Companies Dodge Revenue Tax
New tax laws lead Spokane mining companies to slash share prices to avoid hefty federal levies.
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The effect of the new internal revenue law is apparent in the organization of the Hecla Mining Company, which has filed with the Spokane county auditor. By making the par value of a share of stock only 25 cents, instead of $1, the company escapes with only $125 worth of stamps required to be attached to stock issued. There are other companies in course of formation, among them a number to operate claims on the 'south half,' and all of them as far as heard from will have reduced capital stock, but will retain the uniform system of 1,000,000 shares. Some of them will incorporate with a par value as low as five cents per share.
“Some of them will incorporate with a par value as low as five cents per share.”
Corporations have always sought creative ways to minimize their tax burden, mirroring modern debates over corporate tax havens and shell companies. The ingenuity of the 1898 mining boom speculators to exploit loopholes in the Internal Revenue Law remains a constant feature of the American economic landscape.
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