The Fargo forum and daily republican. [volume] (Fargo, N.D.) 1894-1957, 1910-09-08

lie prints. The question then upon
which I must devote the time Of the
programme assigned me is this: How
does taxation affect the conservation
or natural resources, and what sug.
gestions of a practical nature can be
made for the betterment of the tax
alton of such resources?
1t may be said in the beginning that
the difficulties involved in the taxing
of natural resources exist to a still
greater degree than In the case of
other property. Generally speaking,
we have not attained to rational sys-
tenn of taxation in any field, and we
are now attempting to revise the old
system and extend 1t, by adding to or
taking from It. Economic conditions
In America have changed from time
to time, and these changes have
forced upon US reorganization of our
methods, not only of manufactures and
of transportation, but also of admin
istration, government and social or
ganization. Such q condition of af-
fairs Is seen today in nearly every
state, and attempts are being made
to meet it in the specific instances of
the fiscal problem by adding to the old
system Of taxation through the special
taxation of corporations, inheritances.
royalties and incomes. The conse-
sequence Is that so far as natural re-
sources are concerned we have no
principle existent in the general
scheme of taxation that can be used
to meet the new conditions that have
arisen in our Efforts to conserve our
resources. Just as the problems of
industrial organization have come Up
on the states, so now has came the
problem of our natural resources In
hazy thinking and sometimes in in
definite laws, we have attempted to
regulate through legislation the great
corporations of the present day: and
in much the same manner we shall.
by feeling our way attempt to develop
some plan Of taxing natural resources.
Taxing Natural Resources.
Sometimes in discussing this ques--
ton of the taxation OF natural re-
sources a great deal of emphasis is
placed upon the statement that is is
the cause of the depletion of timber
and mineral lands especially think
1t may be said at the outset that the
taxation of natural resources is only
one of many factors in the destruc-
tion of them. The extent to which
this takes place is impossible to say,
but the fact remains that the taxa
ton of natural resources may or may
not hasten the destruction of forest
lands. the exploitation of minerals and
the cultivation of the soil. Where
lands bearing timber are. owned, In
terest charges with each year of own
ership are piled up, and the same is
true of the taxes. Where, on the 9TH
er hand, lands are held through a
royalty contract, the lessee Is in a
position to carry the lands without
special cost to himself except that of
the taxes. The consequence is that it
Is impossible to apply the same prin-
ciple of taxation to agricultural lands,
timber lands, mineral lands and water
powers. There must be a differentia-
ton between them, and a differentia-
ton that will clearly meet the various
uses to which they are put Without
question, the general property tax, as
1t now stands upon the statute books
of the different states, does not meet
ins any true sense of the term the gem
eral economic conditions and the spec
ial needs of mining and numbering In
particular.
The principle of taxing the product
when it Is placed upon the market
applies particularly to mineral and
timber lands, but the same principle
in the case Of agricultural lands