The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1907-01-11

charitable ore deposits in Minnesota are
upwards of one and one-half billions of
tons. 1t is, therefore, apparent that even
the 100000 valuation placed upon the
Board OF Equalization in 1906 represents
only small fraction of something like
five to ten per cent of the actual value
placed upon the properties by the COM
cial purposes.
IRON ORE ROYALTY TAX.
Under the new constitutional amend
ment it is within your power, as 1T is
your duty, to provide some system of tax
alton which will give the state at least
revenue income from this great iron ore
wealth. One step in the right direction,
it occurs to me, would be an income tax
are not now listed for taxation.
An income tax of 5 per cent on the
$6,5O0,000 of royalties estimated to have
sofa from iron lands during the year 1906
would net the state treasury 1926. 900, or
10 per cent tax would net $65o,0O0,
A royalty tax, were the total thereof
ent tonnage of 25,000,000 tons shipped
from Minnesota mines in 1906. would
net $1,250,OOO, or somewhat exceed the
present tax revenue derived from direct
ty tax should go to the state treasury,
and represent the total taxation of the
intangible property or, rights. of mining
companies and fee holders; leaving the
direct realty tax, as now, for the support
Of local government.
AS much of the inequality arising from
the application of the tax laws is due
to inefficient machinery for assessment.
you may find the following change worth
your consideration, namely the abolition
of the office of assessor in cities, villages
~, ~.
either a tax commissioner for the county.
or in the larger counties. tax commits
sion of three or five persons, to be am
ployed annually with view Of the proper
listing of property and the better equal
ization of existing values.
Taxation of sleeping car and telephone
companies on gross earning basis Is
recommended.
TAXATION OF EXPRESS COMPANIES.
Your attention is directed to the FEAST
in the matter of the taxation Of express
companies. Our statute now provides for
the taxation Of express companies, based
on per cent of the receipts on business
done between points in the state, after
deducting the amounts paid to railroads
for the transportation of freight within
rate of taxation of express companies )
per cent, as the railroads are paid about
so per cent of the revenue. Express COM
panies do not include any proportion Of
business; that is, business which origi-
mates in and terminates outside of Min
nesota, and vice versa, and business pass
ing through the state. Railroads doing
proportion of all interstate and also
on intra state earnings, and I believe
Minnesota is the only state where the
statute provides for the collection of taxes
on an earnings basis to pay on the bal
ance, after deductingS the amount paid
to railroads. Express companies should
not be treated differently from other COM
panies. and believe it would be more
practical to take the total earnings of the
express companies and ascertain Mime
sofas proportion of such revenue for
taxation purposes based on the ratio Of
mileage. in Minnesota Of such express
companies, which the mileage bears to
the total operated mileage; or, in lieu Of
some such provision. adopt the excise
relation to sleeping car companies. to
which reference has already been made.
LICENSE TAX ON CORPORATIONS.
Your attention is likewise respectfully
called to the following resolution Of the
state board of equalization adopted Oct
4, 1906, in favor of levying an annual Ii
cense tax on corporations, with the spirit
of which heartily concur:
RESOLVED. By the state board Of
equalization that the governor is respect
a law. by the next legislature fixing an
annual license fee of, say, $40, for each
and every corporation. whether local or
foreign, doing business in the state of
of failure to pay said annual fee the
offending corporation be barred from
the courts of this state. and their char
ter be considered annulled. said license
fee when paid to be accompanied by the
address of the principal office. the names
of the officers and the amount of capital
paid in of said corporation. The fees
arising to be paid to state treasurer and
covered FIR
STATE DEPARTMENT OF MINES.
By reason of the vast interests of the
state in mines and mineral properties,
herewith submit to you the advisability of
organizing a new state department devot-
ed to the subject and the creation of the
giving such official powers and duties
similar to those of the commissioners Of in
surance, labor, railroads and warehouses,
dairy and food, game and fish, or the SUI
perntendent of banks. To this depart
ment might be entrusted the enforcement
of the state mine inspection and regula-
ton laws, the examination of the mineral
resources of the state school and other
public lands, the protection Of the states
interests in iron ore royalties and min
eral contracts and leases, as well as the
maintenance of a bureau Of statistics and
general information in regard to the min,
ing industries and mineral resources Of
the state for the aid and use of the state
legislative and various executive depart
ments.
The fact that Minnesota today holds
over one-half Of the estimated iron ore
reserve of the United States, and that
our state school and other public in
stitutions have greater mineral holdings
than those of any other state In the
Union, show the propriety and public
value of such department to the state,
even If our past experience did not prove
the necessity Of additional state execu-
tive authority and machinery in the reg
ulation and protection of its mineral in
tereStS.
MINERAL LEASES.
The state has large area Of land con-
tanning iron ore, and in the past has
leased on terms out of proportion to just
and proper conditions. The statute now
provides that from all iron ore taken
from state lands, the state shall receive
ton to be reckoned at 2,240 pounds. In
the light Of the leases made between pri-
vate parties this fixed sum is an absurd
ity, and should be changed without fur
Their delay. The average royalty paid
by the United States Steel Company to
the owners of land on the Masabi range
is more than 81 cents per ton, and upon
the Vermillion range, almost 81 cents
per ton. Recently this corporation has
negotiated a lease with private parties at
IS cents per ton, with a contract to mine
not less than 100000 tons per year. An
important lease still more recently has
royalty, and this is likely to be the
Masabi range basis for the future. In
view of this condition, the state cannot
longer afford to pursue the policy of dis
posing of its iron ore wealth at prices
less than that paid to private individuals.