cae a saints Se : ce
Future of Mining Industry
Threatened In Two Small
Sections of Mineral Act

In the statutes of British Columbia 1957,
Chapter 37, is an Act amend to the Mineral Act and
Chapter 60 is an Act to provide for Taxation of Land
based on the minerals therein. Chapter 87 is only
two and one-thirg pages,and Chapter 60 is only four
and one-quarter pages. In this brief collection of
Dages, there is contained legislation so violent that
the immediate future of the mining industry of
British Columbia is uncertain and it must be clearly
understood that the future of the mining industry
is the concern of all ‘citizens of this province.

In Chapter 37, the traditional,
Crown grant system of tenure | Aintain the mining industry in
is swept aside in favor of a leas-| 3titish Columbia and has. in
ing system. This change is of {Particular struck at the jugular
fundamental importance and|¥ein of the prospector by deny-
cannot be discussed at all un-|ing to him the reost valuable
less three basic facts are clearly |sset he had, his right of tenure
understood. They are: “protected by the law. Wh
“1—Prospecting for minerals |S2OUd a promoter pa* a 1
is the foundation of the|&ctor for claims upon whic
industry. No mine has ever been | ‘Bere is no protection of tenure.
created by an Act of the Legis.|if the promoter can instead bid
lature. Every mine was dis-|!" the claim with the govern-
covered’ by some prospector and |™ent-
developed through a substantial |SECURITY OF TENURE LosT
and even at times an enormous| Furthermore,
cost supplied by private risic|chooses to disregard the basic
capital. It certainly

2—No mineral in this prov-|discourages both the prospector
ince is unknown in other parts/and the private risk eapi-
of the world and, therefore, the|tal, for it denies “the |
industry in all its aspects must|security of tenture of mineral
compete on world markets. Be-|claims. It disregards the facts
cause mining in British Colum-jof global competition by impos-
bia is expensive, the additional |ing handicaps on the industry in
Costs must be offset by some/|this province. It definitely dis-
advantage and in the past that|regards the incentive to find new

mining industry, but rather to
there being no mining activity
save that specifically hlessea by
the minister,

TAX ILLEGAL?

However, there is one further
Point about Chapter 60 that
should be brought to the atten-
tion of the people of this pro’
ince. There is a strong possi-
bility that the Act is beyond the
powers of the Province of
British Columbia and, there-
fore, that the attempt to tay
under it is illegal,

Under the British North
America Act, the powers of the
Provincial legislature to
limited to a direct tax
the province for the purpose of
raising revenue. A direct tay
is one imposed on the perso:
intended to pay it and not by
its general incidence to be passed
on to someone else. It has also
been decided by the highest
judicial authorities that although
a land tax is a direct tax, a
its very nature

If Chapter 60 was in fact a
“\tax on land based on the
minerals therein,” it would
probably be a direct tax. How-
ever, the Act levies the tax on
“every owner of land including
minerals therein, thereon or
thereunder, or of minerals ” and
by the last three words it is
clear that what is in fact being

advantage was the stability and
the encouraging spirit of our
laws.

3—A major industry cannot |
be static and to assure the
future of mining in British |
Columbia there must be new
discoveries made by prospectors
to provide the future supply of|
minerals and encourage the con-
tinued fiow of risk capital.

The keystone to the industry
in British Columbia had been
the Crown grant system, which
provided the incentive to pros-
pect for minerals as well as the
justification to risk capital to
convert a prospect into a mine
The usual form of conyeyance
had been an option agreement
whereby the prospector sold his

reason that the prospector could
contract and be rewarded for his
efforts in discovering and stak-
ing the ground was that the law
Protected his rights and his
tenure, |

Surely it is self-evident that
Chapter 37 has cut across the
just considerations required to}

discoveries to assure the future| taxed is the owner of minerals,

(SH PRISU NG, WILLIAWS LAH, BO.

at fee :

jto “ enegurage "secondary in-/Counell, ntl recently the}
dustry. @ matter of fact, ji judicisl auherty of|
there is a chilly suggestion that law, are several that]
Orwells “doublethink ” in the decided that an att |
satire “1984 is being applied |to a commodity under the}
in Victoria today and that Wise Of, dir-etly is none-
Department of Mines is dedicated heless indireet and ultra vires |
nel to: Ue developinene. of ARE lie Ielsliture. roy 6 mple, it

ded that a tax on|

has been de

persons selling n for future |
delivery or on mine owners |
based on a ‘percentage of the |
| 8ross revenue of the miner or on|
all timber. cut within the proy-
ince except where a royalty y
payable unlass such timber
manufactured or used with the
province or on the first pur-
chasers within a province of fuel
oil are all indirect and ultra

Whereas a general sales tax |
would be ultra vires a retail tay
on the consumer is direct and
‘his is the justification of the
present Social Services Tax, al-
though that tax has not been
tested in court in this province.

Furthermore, it is clear that
although a tax on land includ-
ing timb direct, an attempt
to tax timber when cut or a
severance tax upon land based
om the amount of timber cut
would be indirect and ultra
vires.

Can there be little déubt that
the real incidence of the tax in
Chapter 60 is on the minerals
not the land and that is has all
the characteristies of thos
attempts to tax timer which
have been disallowed by court?
If that is not enough, there is a
very strong suggestion that the
real purpose of the Act is to

é

Subject to the tax and this is
not only an excise or customs

prevent the export of minerals |_

of merit_of this tex Tha
]ment advanced in Support

of the industry and this is
proven by the fact that already
prospecting activity has declined
dangerously, as evidenced by the
fact that in 1957 only 56
cent of the staking in the pre-|
vious year was recorded, |
Even if the industry could
have absorbed Chapter 37, |
which required a major adjust-|
ment because it reversed the|
very policies which were relied |
upon by the industry for expan-|
sion, the legislature completed
the total destruction of con-
fidences formerly attributed to
it by the industry with the new
tax on minerals in the ground
set out in Chapter 60.
Much has been said and will
be said concerning the total lack
Th |
would, no doubt, appeal to a
inhabitants of Alice's Wonder-
land. Charming though that
realm may he, we are, unfortun-
ately, on the other side of the
mirror and are obliged to accept
reality and there is no realism
in the argument that this tax
will “conserve our minerals

“WE BUY OLD BATTERIES. .’. .”

C & S TIRE SERVICE LTD.

duty but an attempt to
regulate trade and commerce,
which is within the exclusive
jurisdiction of the Federal Par-
sessed or imposed by virtue of liament. Furthe more, its pur-
thi all be in addition to/Pose is not then to rai
any other tax imposed on land |Tevenne
by any other Act.” [WH THe resH?
Among the decisions of the|
Judicial Committee of the Priv

not the owner of land. Further-
more, the assessor shall ‘ assess
annually at their fair value th
minerals" and “all taxes

Why did the government rush
Yi this legislation through without

TO OUR CUSTOMERS

Up until February 20, we will not be

doing any major work.

upholstery

—-TGhe_stor-—

FOR FINEST WORKMANSHIP
IN ALL LINES OF UPHOLSTERY, DRAPERY, ETC.

try

JAN MIKLER

OFFICE & FACTORY WILLIAMS LAKE

She is saving so she can continue

her music studies

Both have a
bank account- and

a purpose for saving

He is saving so he and his wife
can toke on extended motor trip

The difference between Teaching a goal and
missing it can be the savings you put by,
now, in a bank account.

Such savings don’t just happen. They involve
some sacrifice, definite planning. But as

your dollars mount up you feel a sense of
accomplishment, of getting somewhere, that
makes the effort more than worth while. |

Your bank account provides ready cash that
can help take care of any emergency that may
arise, Or open the way to bargains or other
Opportunities. Whatever objective you may have
in mind, and whatever use your savings may
ultimately serve, you'll always be glad you saved,

Save at a bank — millions do!

THE CHARTERED BANKS SERVING YOUR COMMUNITY

3

Wednesday, February by are

ROLKET POD FALLS FROM RCAF JET

e =

[tt is strange indeed that the
Y, of major im-
|portance and in Tact the raison
fe
subjected to  sueh

etre of this province, was
repugnant
Jesislation as Chapters 37 and
| 60 in such a cavalier fashion.

So far the government has not
shown concern about the effects
Jor its legislation. If it believes
in Chapter 69, it should submit
it to the courts to be tested,
which can be done readily under
existing legislation. If it be-
jlieves in Chapter 37, it should
|inform the public how it is go=
[ing to encourage prospectors to
go back into the hills and how

lected to develop the badly
needed new discoveries of
minerals. ‘There is too much at
Stake to assume a wait and see
attitude, or to taunt the industry
to make a fight of it.
Unfortunately, all the evi-
lence at this time sugests that
the present government will not
change either its attitude or its

A rocket pnd similar to one being loaded here is being
sought in the | a area of Ontario after it fe f-om an

RCAF CF 100 sa training flight. Warnings have been 3
issued that 1! . is dangerous even though the fuses were legislation. Because of the
Bet set. The 1u-foot pod contained 29 rackets each capable ot. effects of the legislation, the

destroying an airplane
ee eee cee ee
a Royal Commission or a con-| mediate résuit of the legislatiox
sultation with the industry? Phe has been protest and apprehen-
only answer suggested so far is|sion and no eager steel make:
that the government desired to| has appeared in the public spot
“conserve” iron ore to estab-| light.
lish sometime a steel industry| ‘The people of this provine:
in this province. This answe: have become accustomed to 2
very vague and should satisfy, of Royal Commissions
no thinking person. The im- concerning the lumber industr:

Prospect would appear to be an
nevitable depression within the
nining industry,

the beer
this year!

Sa

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This advertisement is not publishea
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Board or by the Government of
British Columbii

This has been the slogan of the
B.C. Power ion since
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pause briefly and proudly to
review the great contribution
made to richer living by the

electrical industry in all its
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Private risk eapital will be pro-_