The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1909-01-08

ward the iron ore, lumber, wheat, flour
and building stone produced by Mime
sofa labor and capital. So heavy is the
eastbound traffic that a large percentage
Of the vessels and barges return on their
westbound trip without cargo. The eff
feet of this condition is to reduce the
water rate on coal from Lake Erie to
Duluth to about one-third the eastbound
rate on iron ore from Duluth to Lake
Erie. Thus it has become cheaper to
bring coal to Minnesota coke ovens and
furnaces for conversion of our iron ore
into Minnesota pig iron and steel, than to
ship the ore to the furnaces and rolling
ultimate revolution in the commercial
geography of the iron ore and steel in
dustry: Minnesota up to date has shipped
over 5000, 000 900 worth of iron ore to
eastern ports and furnaces for the profit
of eastern labor and capital. But now
we hold in our three iron ranges a body
of ore worth many times that which in
the past twenty-five years we have
shipped away. Minnesota conversion of
iron ore, which is one of the logical GER
tainties of the near future, therefore,
means the most important revolution of
the century in the westward progress of
industrial empire.
When / speak of Northern Minnesota
as undeveloped, I employ only relative
terms. The greatest iron ore industry,
and the greatest white pine lumber in
dustry and the greatest wheat-growing
and flour milling industries on the globe
tell their own stories of development. Like
wise, such cities as Duluth, Two Harbors,
Hibbing, Virginia, Cloquet, Grand Rapids,
Bemidji, Little Falls, Rrainerd, ST. Cloud,
International Falls speak for themselves.
Furthermore, already 900, 900 Industrious
and energetic people already have made
this northern domain their permanent
abode, among whom are 80, 900 farmers
and 100000 workingmen.
Drainage.
The subject of drainage is more than
ever proper one for your consideration.
The last two years have been marked
by the greatest progress in this direction
ever made in similar period of the his
generous and wise policy of the last two
legislatures more miles of state bitches
have been constructed, more water has
been removed from swamp lands, and
more acres of land reclaimed than in all
the previous years of our state history.
The experience of the past convinces me
that wise business policy would demand
even more generous policy in the
future.
The total number of acres of state
land benefited by the construction of state
400, as shown by the report of the viewers
in the several bitches, which report also
shows that 10000 acres of private lands
were benefited. The total benefit to the
state and private lands is $4,000.
No one question for legislative consider
alton is of wider or more continuous in
terest to the people than that of taxa
tion Where government exists. revenue
must be raised for the expense of govern
ment. The schools must be maintained,
highways must be improved, the police
power must be sustained and the various
towns. city and county expenses must
be met AS civilization progresses greater
demands appear TO follow and no method
will be devised to entirely relieve the
AS set fourth by the Tax Commits
sion, the taxation of corporations is not
satisfactorily accomplished under the
present law, largely because the lists
n Orcrnp izot inr,c do
not harmoniZe with legal conditions. The
enactment of law providing for more
extended list of queries is important and
essential to larger returns and better
enforcement of the law.
Railway Taxes.
If possible change should be made
to the payment of railway taxes. The
laws of the state now provide for the
payment of aid to the graded schools,
nigh schools, semi-graded schools and
rural schools, to the extent of upwards
of 100000 annually, and further provide
for these payments IN October of each
year. The payments are in advance Of
the appropriation on its way to the state
treasury, and in consequence necessitate
temporary loans and overdrafts thus
creating a deficiency in the treasury. To
school appropriations are payable, to the
following March, when taxes are avail
able. the treasurer under legislative au
thority, has been obliged to borrow funds
compelled to pay interest averaging over
five 60 per cent annually for the past
six years. During the year 1866, the
amount borrowed was Sits. 6830S, upon
which the state paid in interest $24.31515.
The next year the loan was $3.50, 929 40
and the interest at 51s per cent was So
72'.97. Last year the treasurer borrowed
500, 1922, the rate being seven CD per
cent, the interest amunt paid by the
state being $7,074.27. This condition
could be avoided altogether by amending
the law and requiring corporation gross
earning taxes to be paid semi-annually
on or before September L. and March 1,
respectively.
Taxation of Telephone Companies.
Sections 1035-6-7, r. L. 1905, provide
for a three per cent gross earnings tax
on all telephone companies doing bust
ness in the state The public examiner
reports that with few exceptions the
various telephone companies have been
reporting for taxation purposes the earn
ings originating and terminating within
the state, and have not reported earn
ings on interstate business Action has
been instituted against one of the COM
panies neglecting to report interstate
business, and the matter is now pend
ing in the courts. The decision in the
lower court was in favor Of the state.
and the company appealed the case to the