The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1907-09-13

DcSG oasis. we DelleVe 1T would WORK
an injury instead of a betterment."
The people of northern Minnesota,
especially Duluth, are anxious to
have the iron industry established in
the state in all its branches. We
hope and look to see Minnesota be-
come the greatest manufacturing
state in the Quilted States. But any
thing beyond reasonable basis of
taxation would discourage the estab-
lishment of this industry
Joseph B. Cotton spoke with much
eloquence and strength. He told the
commission today what was import
ant in the history of the state. The
development of the great iron and
steel industry of the state hangs in
the balance on the action of the tax
commission.
Fifteen years ago." he said, "the
Mesaba range was but a wilderness
and Minnesota only an agricultural
state. Now it is the greatest iron ore
producing state of any country. For
years many of us have been looking
forward to the time when it would be-
come the greatest manufacturing
state. Now we have the promise that
Minnesota will soon enter into the
manufacture of iron and steel pro-
ducts. think it is an i'll policy to
attempt to scare off such industries
by Over-taXation."
"In my judgment the iron industry
of Minnesota has always paid its full
share of taxes. 1t is willing to do so
today. But demands should not 90
beyond this. Your legislature may
say that henceforth uniformity of
classes of property only are necessary
in taxation, but the fundamental rule
with the people remains that taxes
must be equal. The fundamental
principle of all taxation is that the
burden must rest alike on one and all.
The courts have time and again held
that you cannot make one commun-
ity pay prOportionately more than
another"
Mr.. Cotton stated that last year the
county of st. Louis paid one-seventh
of the entire taxes of the state.
The iron interests, in another form,
SO per cent of the freight of the iron
rangeroads, last year, caused payment
of over $l,000,000 more in railroad
gross earnings taxes.
He told of the agitation in the leg
islature for tonnage tax on lion, and
of the fact that no law passed to this
effect because cool deliberation show
ed that such tax would be unfair.
He explained the ]. J. Hill ore deal.
The Scent a ton royalty started all
the talk, he said, to the effect that
heretofore the mines had not paid
their just amount of tax.
sit should be KNOWN" continued
Mr.. Cotton, that the Hill lease price
is based on concentration of the ore.
1t is based on washing necessary to
clean the ore of sand. 1t takes two
tons in the ground to make one ton
after the washing, and therefore you
see that s. cents is not such big
royalty after all. Figuring out the
Hill ore deal further. allowing an in
terest discount for the terms of the
leases, and you find the value of the
ore included today to be Is and 20
conts ton. This is the actual value
basis on which SO much buncombe and
talk originated last year. Ore GER
tiicates on Hill property may be
bought today for SO cents. This prop
erty is an ore reserve, and as such the
purchasing corporation could afford to
pay more than otherwise"
IF this commission takes the profit
on ore during 1906 as basis for as
sessment valuations, there is further
point to be kept in mind. Suppose
there should be a panic next year and
ore become so that it will yield no
profit. On the same reasoning the
ore properties should then not be
asked to pay any tax. Would the
commission do this?
''There is a true measure for the
finding of the value of ore in the
ground. In my judgment, what the
fee owners get under leases is pretty
nearly correct test of value"
Thomas f. Cole made an. address in
which he reviewed the history of iron
mining in Minnesota, telling of days
gone by when ore was little known
and of comparatively small value. He
replied to a statement of Commission
err Samuel Lord that President Char
les M. Schwab, of the United States
Steel corporation, had testified in
court in 1862 that there was 500, 000,-
600 of ore in northern Minnesota. He
said Mr.. Schwab had referred to what
the mines would yield in the manu-
featured and sold article during the
| lives of the mines, so to 60 years. The
affidavit was also made in time of
business depression and under some
pressure to prevent financial crisis.