The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1909-12-04
SATURDAY. DECEMBER 4, 1909

Detroit Saturday Night 10 awaiting
an answer from the upper peninsula
press upon it's proposal to tax mines
upon their net earnings. IL proposes
to institute q general system IT &C
counting for the mines OF the state
and compel every company TO conform
TO that system. BY that means the
net earnings would be ascertained !;
each mine capitalized upon the amount
OF It's net earnings and the amount OF
that capitalization taken as the true
cash value OF the property for tax pur-
poses as provided In the present tax
law. Mines that show profit would
be taxed according TO that profit !;
mines that snow a loss would not be
taxed at all This is our understand
ing OF the plan which Saturday Night
would devise to eliminate what the
lower peninsula advocates OF higher
mine taxation call the inequitable-
ness in mine taxation.
In devising this plan Saturday Night
fashioned one to conditions with which
1t is acquainted fashioned one TO
lower peninsula conditions where
stableness in property values is always
Ia evidence where the tendency Of
values are to increase instead OF TO de.
crease.
A scheme OF the kind, 20 be equit-
able. must be based upon the supposi-
ton that all or almost all OF the min
ing properties OF this peninsula show
profits that can be determined by q
system OF accounting. Unfortunately
many mines are operated without pro-
fit and some at an actual loss. Others
are not operated at all but find their
idleness a source OF profit either by
keeping the product for the next year
OF high prices or by conserving II for a
term OF years until 1t will be needed
by the furnace company owning IL or
until decrease in the supply OF
richer material will make the property
"A valuable one.
Take the first mentioned class. the
mines operated without profit. These
are properties that are In stage OF
development, often lasting many years,
or properties whore just enough Of
value is taken therefrom TO allow a
swapping OF dollars and tne operators
hang ON in hopes that sometime some
thing better will be shown mp There
are many such mines in this peninsula,
both iron and copper.
II Saturday Nights scheme were In
vogue these properties would pay no
taxes Yet, their operation necessitates
great public expenditures This is, as
we have said on former occasion, a
one industried section. Mining is the
sole occupation. Often these mines are
operatsa at distance FROM other pro.
pestass-in townships by themselves
When o mine Is opened ny workmen
must be brought to that section ex-
pressly TO work at that mine. Houses
must be built expressly 10 accommo-
date workmen st that mine. Schools
must be opened up In which the chill
dren may DO educated. Courts OF JUS
tice. police. high ways and Numerous
other things calling for tine expendi-
tire OF public moneys must be mad ex-
pressly 10 care for the extra burdens
which that mine has brought about
Outside OF that mine there is but wild
land and a few homesteaders in the
township. Would IL be equitable to
shift all OF this burden onto the shout.
ders OF these lands and struggling
farmersi
When this mine was opened up
houses were built by the company for
the purpose OF housing its employees.
They are q part OF the venture and IN
der Saturday Nights scheme would be
incluned with the other property ana
assessed on profits Of the mine or, In
other words. would not be assessed be-
cause the mine isn't "a paying venture
John Doe builds house on an adjoin-
ing piece OF property. Would IL be
equitable 10 tax John Doe. a poor
workman. ADD allow the capitalists
who are spcculating In this mining
venture to escape taxation3
Suppose a paying mine existed In
the same township. That paying pro-
perty is already taxed 70 support the
public Institutions which its operation