The Virginia enterprise. [volume] (Virginia, St. Louis County, Minn.) 1893-19??, 1907-03-29

1--WE findtthat the iron ore varies
in grade, hence the unequal value.
Sixty per cent of metallic bessemer
iron per ton of ore is regarded as an
average merchantable basis and
when the same drops below IS per
cent metallic non-bessemer iron per
ton of ore it is of but little market
value for shipment to Lake Erie
ports. BY far the largest amount
Of ore now on the ranges is non
:bessemer and below IS per cent
metallic iron, per ton of ore. There
have been discovered very large
quantities "of this ore situated in
Itasca, Aitkin, Morrison, Crow
Wing and Todd couuties, all of
which in time will develop into
large mining industries in this
state.
"While this class of ore under the
most favorable conditions, might
be in the Immediate future avail
able for smelling purposes, yet if
the same is to be burdened with an
extraorslinary tax twill yield no
profit to the owners thereof and no
revenue to the state for a number
of years to come, if atall.
"Ae conclusions, your committee
finds:
T-That all this property should
be taxed on the ad valorem basis,
but that the assessed valuation of
the operating mines on the Ver-
million and Mesaba ranges should
be largely increased above their
present valuation.
"2That a tonnage tax is imprac-
Eticable because of the wide differ
ence in the value of the ore; that if
a flat tonnage tax is levied the same
will be prohibitory of the mining
of low grade ores which otherwise
would be of great value to the par
ties in interest and hence valuable
to the people of the state of Min
nesota.
ga sliding scale tonnage tax,
proportionate to the value of the
ore would be impracticable, almost
imperative and accompanied with
great expense to the state.
+For all ore shipped out of the
state tonnage tax would be un.
constitutional as an interference
with the constitution; of the United
States in conflict with the, inter.
state commerce clause, 80 called
of the constitution of the United
States az has been decided in mum
erous cases by the supreme court
of the United States.
'"5-The legal investigations nov
pending in the state of Minnesota
ae to whether or not the recently
proposed amendment to the state
constitution was adopted have pro
ceeded 80 far as to create some
doubt as to whether the proposed
amendment was in fact adopted
and If not adopted then the pro
posed tonnage tax would clearly bt
unconstitutional and void unde,
the state constitution as it now ex
lists and hence for the next two
Iyearsat least the safer proposition
is. to tax the property on the ae
valorem basis but at. an assessed
valuation somewhere nearer thu
actual valuation of the property
the same aa other property is as
sessed. ~ -
6-Your committee are of th,
opinion that the above reasons ar,
suf1icient to warrant a report ad
verse to a tonnage tax, but in addi
tion thereto your committee hav,
the utmost assurance that tf1er,
will IN the near future be installee
q steel plant at Duluth costin9
between SIC, 600 600 and SIS 10000
thua making it possible to manu-
faeture both the low and hiRl
fRrade ore into the finished produc
IN thiesstateswhichwillsbc be of rrea
beneft g. the people ssof the entir
noFthwest, =
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