Evening star., 1907-10-16
GREATER TAX IN VIEW
Proposed to Increase Assess
ments of Minnesota Mines.
DEMAND OF THE PEOPLE
Valuation May Be Raised From 20
to 1856 Millions.
AGITATION CAUSES EXCITEME
Immense Output of Ore Made Posi-
BILE Only by the Growth in
immigration.
DEMAND OF THE PEOPLE
AGITATION CAUSES ExCITEME
BY WILLIAM r. CURTIS

BY WILLIAM r. CURTIS.
| Special Correspondence Of The Star and the
Chicago Record Herald.
MARQUETTE. Mich. October 7, 1901.
The farmers of Minnesota have a no
tion that the mineowners are not paying
their proper share of the taxes. There is a
conviction in many minds. also. that It 10
bad policy to snip such a vast amount OF
| raw material out Of the state to be work.
ed up in other states instead Of reducing It
to merchandise at home. Duluth and Su-
perior City. which are practically one and
| the same thing. so far as commerce Is
concerned. ship as much tonnage as Lon
don and 1t is entirely raw material that
comes out Of the ground and every ounce
Of 1t adds so much to the wealth OF the
| country. 1 mention Superior City because
the people of that place complain that
have given Duluth credit for all this
commerce, although most of 1t Is actually
handled across the border In the state OF
Wisconsin and the City of Superior. The
railway terminals. and the docks are
there and the actual work Of handling the
cargoes Is done on the Superior side. but
the headquarters are situated in Duluth
and the business transactions occur there.
The United States engineers and other
officials combine the commerce OF both
cities in one report, because they have the
same harbor. and when the name Of Du-
luth Is used in this connection both
towns are usually referred to. 1t Is just
like New York In connection with Brook
lyn, Jersey City, Hoboken. Weehawken.
Long Island and other suburbs. You
| never hear of the commerce Of Hoboken
or Of Jersey City: yet large part of the
imports and exports credited to New
York are handled in those ports and they
are situated in another state. The two
largest steamship lines. the Hamburg
American and the North German Lloyd.
receive and discharge their cargoes and
their passengers at HOboken N. j., and
yet 1t Is all credited to New York, just as
the commerce of Superior City is usually
credited to Duluth.
The steel trust Is about to comply with
public sentiment by erecting a $4,000, 900
steel plant at Duluth. which will con-
sumo only small proportion of the out
put of the iron mines. but will supply
considerable portion OF the demand
for rails and other manufactures of iron
and steel in the far northwest which
now has to buy its building and railroad
materials in Milwaukee or Chicago. There
is no reason why Minnesota should not
furnish Canada. British Columbia and
the entire western portion Of the United
States with iron and steel, because she
has the raw material in her SOIL and
1t is just as easy to ship coal up the
lakes as to ship the ore down to Ohio
and Pennsylvania. The people Of the
state are to be commended for this agi-
tation.
Increased Assessment Proposed.
The Minnesota tax commission has also
endeavored to satisfy public ciamor by
| increasing the assessment upon mining
| properties on the Mesaba and Vermil-
| lion iron ranges. st. Louis county, in
| which they lie. already pays two-fifths
of the total revenue of the state and
produces more than two-fifths of the
l commerce and products. 1 have told you
about the enormous educational fund that
| has already been accumulated for edu-
| cational purposes from leases of mines
| and public lands. 1t now amounts to
about $9.0O0,O00, and is piling UP in an
also comes from st. Louis county. The
| people OF that county. therefore, feel
| that they are doing their share toward
the support OF the state government and
are rather boastful of the liberality of
their taxpayers in county and municipal
| affairs The revenues are divided between
| the towns, the counties and the state,
but are assessed by q state commission
| and are subject to revision by a board
! of equalization. which ought to insure a
fair deal.
Early in September the tax commission
! summoned the representatives Of the diff
ferent mining companies to show cause
| why the taxable valuation of their prop-
the output OF the mines has been the basis
Of assessment and has been taxed 80
cents per ton. the estimated value of the
ore at the mine being 81 per ton. That is
the maximum upon which royalties are
now based. Early contracts. made be-
fore the world had full knowledge Of the
amount and value Of the deposits. called
for royalty OF only . cents and 30 cents
ton. and the state leases are made upon
that basis. That Is. an operator pays
the state of Minnesota 80 cents a ton for
the iron ore he Is permitted to take from,
state lands. and he pays the expense OF
mining In his lease OF the Great North
ern railway mineral lands to the steel
75 cents ton to begin with. and pro-
yided for an increase of 21a cents ton
ANNUALLY until the royalty reached ST.
which. thereafter. was to be the price of
the ore III the ground.
Proposed Rate Of Increase.
The tax commission. evidently excited
by the boasts of the mining companies
concerning the value Of their property
and inspired by politicians and farmers
who think they are overtaXed, now pro-
poses to assess the estimated value Of the
ore that is supposed to be in the ground
on q AZ Der cent basis. The total valua-
ton of the mines on the Mesaba range
last year for taxation purposes $780,
Sol $40. and that is double the appraisa-
ment of the year previous. 1t was orig
inally proposed at the first meeting Of the
tax commission in September to raise the
assessment to S4J0.00oC00 on an estimated
valuation of 81. 134. S5J. 36i which Is
alleged to be the minimum value Of the
iron in the Mesaba range. Charles Schwah
has testified under oath that the steel
trust had not less than S1JO.O0O.000 worth
of ore In its mines: the value of the prop
erty leased by the Great Northern Rail
way Company to the steel trust has been
estimated all the way from $3.50. 100000 to
81 900, 100000. the Mountain iron mine and
the Mahoning mine have been placed in
the S75,0O0.O00 class. while other proper
ties are valued at S5e.G00. 600 and $50, ,0O0
800 in popular estimation There is not
the slightest doubt that most Of them
contain ore of that value approximately
but it Is worthless and pays no dividends
until II is mined. The mine owners, there
fore. argue that II this proposed assess
meht Is enforced all other unproductiye
property should be taxed. They claim
that a farmer should be assessed upon all
his land. no matter whether he cultivates
it not: that every real estate owner