The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1907-01-11
SUGGESTS MUCH
new LEGISLATION
AT HIS SECOND INAUGURAL THE
STATES EXECUTIVE ADvO-
GATES TAXATION REFORM,
LOWER FREIGHT AND
TWO-CENT FARE.
State Department of Mines and Mining
Proposed, and Royalty Tax on
Iron Ore Recommended-Re-
ciprocal Demurrage Law
Favored.

guratlOn of John A. JOhnSOn'S second
term as governor of Minnesota took
place today at the state capital at a
joint meeting of the senate and house
in the hall of representatives. The
oath was administered by Chief Justice
Chas. M. Start, and Immediately fol-
lowing the ceremony Governor john
son read his message, in substance as
follows:
Gentlemen of the Senate and House of
RepreSe ntativeS:
The first paragraph of our constitution
states that government is instituted for
the security. benefit and protection of the
people, in whom all political power is
modify, or reform such government when
the public good may require. 1t is not
instituted for the protection of interests
deriving their privileges from the sover-
eign power of the people; neither is it
instituted to deprive any individual or
any interest of any right which may OBJ
tain under the constitution. You are
elected as representatives of all the peo-
pie of the state to make such alterations
and notifications in our laws as Will
inure to the domestic welfare, and be-
lieve that at this session of the legisla-
ture you are given opportunities that sell
dom come to a law-making body. hope
and believe You will approach the office
committed to your care with zeal and ac-
tivity, and with the sole purpose and mo-
tive of doing. that which is best for the
commonwealth.
ton in the general condition of our pros
perity. We have particular reason for
felicitation in the financial condition of
the state. According to the report of the
state auditor there has been much i'm
provement during the past biennial period.
Economy by the legislature, followed by
economical administration on the part of
the executive. departments, will bring a
further improved condition in the near
future.
One Of the greatest questions with
which you will be called upon to deal
is that of solving the problem of provid
ing. at least in some measure. a wise
and just method of distributing the tax
From the birth of our state govern
ment we have had an unchanged system
Of taxation in the form of direct tax
upon real and personal property. The his
tory Of taxation in our state has taught
us that taxes have not been equal and
that the method has not been efficient:
in part the application.
The state constitution provided that
laws should be passed taxing all prop
erty according to it's true value in mon
ey. Laws have been enacted with this
idea in view, and yet we know that the
taxation Of all forms Of property, while
has seldom or never Appropriated full
value. Real property has been generally
assessed at anywhere from twenty-five
per at much the
same ratio; while millions of dollars of
invisible and intangible property has
escaped taxation entirely because of the
ability of the owner to evade his lawful
tax burden.
1t is not to be presumed that this or
any. other legislative body. while able
to devise a system of taxation or enact
q tax law which is going to bring about
In complete form the results commonly
hoped for by all people compelled to pay
taxes. The best that this body can do
is to equalize as nearly as may be the
burden of taxation and so adjust it that
its weight will not fall too heavily upon
the responsibilities in accordance with
the privileges enjoyed under our gov
eminent. We cannot escape taxation
Taxes are and must be levied for the
1905. the total taxes levied in our state
for all purposes amounted to $22, 1855, 1926. 25,
distributed in various ways for the car,
school governments. No law can be en-
acted by you which will in a very large
measure reduce this burden of taxation.
which was even greater in 1906 than in
1905; the total taxable valuation of the
property of the state for 1906 being s914,-
100000 in round numbers, as against $685.
At the recent general election the peo-
pie of Minnesota voted to modify the con-
stitution, and adopted an amendment
tude; and it now falls to you to justify,
In some small measure at least the. opin-
ion of the people that this action. both
by the legislature and by themselves,
was a wise one
PERMANENT TAX COMMISSION.
would most urgently recommend legis-
lation providing for the establishment of
a permanent tax commission, which shall
scientific study of this question and re- re-
port from time to time. both to the ex-
ecutive officers and to the legislature.
the onaH SIC th SHOULD visit the sew
at least biennially, and should be en-
powered to supervise the work of local as
SCISSORS and boards, and provide rules
Of assessors and otherwise aid them in
the work OF securing equal and uniform
assessments. Specially important SER
state commission in seeing that the tax
laws made by this. legislature are en-
forced strictly, uniformly and impair
from discrimination as between counties,
local assessment districts and different
parcels of property in the same district
TAXATION OF IRON MINES.
Prior to 1896. the owners Of iron mines
in Minnesota paid nominal tax of one
cent per ton on ore mined and shipped,
I'm lieu of all other taxes. The law that
of 1881. was clearly unconstitutional at
that time and was repealed in 1897 I'm
der this act, during the five years end
ing with 1896 the tonnage taxes on Min
nesota iron mines netted a total of only
$73,845.
Beginning with 1896, the mines have
been assessed as other real property for
direct taxation; the totals for ST. Louis
county, as equalized by the State Board
of Equalization, being for the past ten
years, approximately as follows: SIS, 900, 600
In 1896, 5000, 900 in 1898, SIG, 900, 900 in
1900 sSo zee ooo So GOO in 1892 s42oooooo in 1904
How inadequate even the assessment
Of 1906 may be Is apparent from the esti-
mates of the companies themselves who
hold the mining properties as assets for
capitalization. In 1902, when the United
States Steel Corporation had much
smaller iron ore holdings than at pres
ent, the officers testified in a chancery
suit, as appears in a government report,
that the corporation had in reserve in
deposits of tested ore upwards of 700,-
600 900 tons upon which the officials
placed value of $1.00 per ton as the
worth of ore to the company as ma
terial for conversion into merchantable
products Subsequent reports of the cor
poration and public statements of its
recent president Chas. NJ Schwab, con-
firm his valuation and show, moreover.
tina. the great bulk of this iron ore asset
of the United Stats Steel Corporation is
located in Minnesota. Since 1902 the ex-
ploration and acquisition of iron ore prop
critics in Minnesota have proceeded on
large scale, until the present estimates
of mining, financial and government au-
thoritieS as regards the explOrad rner-