[To THE EDITOR OF THE " SPECTATOR."1 observe in your
remarks of the 14th inst. on the valuation scheme, and the abandonment of the tax on "un- gotten minerals" and the substitution of a tax upon mineral royalties, that you truly point out that this cannot be defended on the ground put forward by Mr. Asquith in his speech on the Undeveloped Land Tax. His defence for that tax was that it was imposed upon a form of property which had hitherto escaped its fair share of taxation. But this cannot be alleged with regard to mineral royalties. The owners of mineral royalties not only pay their full Income-tax as do they on Consols, but they also pay on every penny they receive for local taxation, County Council, Poor-rates, and School- rates. It is not only Dukes who are owners of mineral royalties, but many enterprising coalowners and proprietors have paid considerable sums for these just as they might for Consols, or investments in chemical or thread works. But now, in addition to the Imperial taxes and local taxation, they are to pay an additional is. per pound, making 2s. 2d. per pound, on all royalties received, reckoning on the general Income-tax of is. 2d. Many M.P.'s are not aware, seemingly, that local taxes are imposed upon mineral royalties, and one, Sir Alfred Thomas, the chairman of the Welsh Party, con- gratulated Mr. Asquith "that now the grievance of individuals drawing their thousands a year, and not paying a penny of local taxation, would be put an end to." Well, I presume in Wales and England mineral royalties do, as in Scotland, pay on every penny received. On one royalty of which I am owner as well as mineral lessee the local and Imperial taxes amount to about 20 per cent. of the whole received. What security is there now for enterprise of any kind in the future ? I dread Tariff Reform, and voted as a Free-trader for the present Government; but of two evils choose the lesser, and the greater evil, in my opinion, is confiscation, and hence many will at next Election vote differently.—I am, Sir, Sic.,
PROPRIETOR.
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