The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1909-11-06
WHY A SPECIFIC TONNAGE TAX
WOULD BE UNFAIR.

WHY A SPECIFIC TONNAGE TAX
WOULD BE UNFAIR.
The following. by Chase 5. Osborn.
in reply TO an editorial in recent
issue of the Detroit News, upon the
proposed tonnage tax. is interesting
Editor News have read with in
terest your editorial upon the ques-
ton of a specific tonnage tax on
Michigan mines. II strikes me that
the News is not consistent II has
continuously advocated the principle
OF advalorem taxation and Michigan
has practically adopted that system
all along the line. The specific taxa
ton OF railroads was first departed
from and the last legislature placed
telephone and telegraph lines under
the advalorem system. The cry has
~ for advalorem taxation why this
sudden change 10 the specific idea?
\ II looks as II somebody is searching
| for an issue rather than reform
How are all real values determined?
/ There is more intangible value in rail-
Iroad property than in mine property.
/ The value Of a mine may be deter
/ mined exactly by measuring the ore
blocked out, which may be as easily
done and as accurately by a state
mine inspector as measuring, a cord
+ OF wood. If a specific tonnage tax is
a good thing why did the late Cover
nor Johnson Of Minnesota veto "A mea
sure to this end passed by--the Min
nesota legislature. Surely his deep
7 interest in the people and their rights
. has not been disputed in Minnesota
f or elsewhere Gov. Johnson was
big man. He knew the large iron
mining interests in Minnesota had
/ done all they could to defeat him.
But the specific tax proposed was so
unjust that it brought him to the
protection Of an enemy
a specific tonnage tax would make
q strcpg and established mine pay the
same rate as a poor mine. or even
la prospect that is uncertainty being
developed into a mine. while the pro-
/ & ict is used TO assist in defraying
the expenses attendant. 1t would
make all mines pay the same rate
without reference TO cost OF produc-
/ ton This would be manifestly un-
! fair, when IT costs one copper mine
eight cents a pound 90 produce copper
and another fourteen cents. and one
/ iron mine forty cents ton and art2
other a dollar a ton 20 produce. Al
ready at least one Michigan copper
mine has closed because it cannot pro-
/ duce without loss at the present rate
iof copper. Then again a specific tax
would often be tax upon manage
ment more than upon value. One man.
lagemcnt would produce one result at
one cost and another would do better
or worse.
Michigan copper mines compete par
ticularly with the copper mines Of
Montana Arizona, Japan and Next
co and already Michigan has fallen to
third place in the United States as a
copper producer. Michigan iron mines
compete with the iron mines Of Min
nesota, where iron ore Is produced
a cost as low as ten cents ton.
Michigan coal mines compete with
the mines OF other coal producing
states. Natural conditions are maxi
Ing this competition severe enough.
Are We to add further handicaps? The
mineral zones OF Michigan are strI
undeveloped. There is still much that
may be done In discovery and develop
ment In Marquette. Iron. Houghton.
keweenaw, Dickinson, Ontonagon.
Gogebic, Saginaw. Bay. Genesee. Shi-
awassec, Huron and Tuscola coun-
ties. Are We 60 adopt an unfair policy
that will prevent or retard this de-
velopment. close existing mines and
discourage wholesome investment OF
capital in the state. It Is true that
some Of the capital IN Michigan mines
comes from outside the state. Before
our mines were developed we were glad
enough TO get the capital. Are we
going 10 serve notice on enterprising
men all over the country that we will
treat them exactingly and unfairly
the moment We have them trapped in
Michigan?
IL Is not OF first importance that
shaH be chosen governor. IL is OF
first importance that all classes and
all interests in Michigan shall be
treated alike. believe honest mine
owners are willing TO pay their just
proportion OF taxes. Under the adj
valorem system their proportion can
be ascertained as accurately as the
taxes of any other property. II they
are not paying enough. there is
remedy under existing laws. II they
are enforced. So let us not single
out any class OF property for peculiar