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


upon the ore that has been mined. III
win probably be urged, as it has In
other instances, that local govern
ments are compelled to rely largely
for their support upon the taxes paid
by the owners OF mineral properties,
and consequently tonnage tax would
deprive them of the regularity of their
income. There is much to be consid-
cred in this point; but the taxation
OF the surface on some such basis as
tnat seen In the case of the timber
i tax would provide a regular income,
Which would be supplemented by the
amount of the tonnage taxes
4 The rate of the tonnage tax would
not, as In the case of the appraisment
OF a general property tax, tend to
hasten the utilization of the ore. That
would be determined entirely by the
/ demand for 1t in the fields of manu-
fhcture. The real essence Of the ton
mage tax lies in the fact that value
found in the ground is distinctly a
product of nature. which an ad val
orem tax cannot recognize, and in
| consequence the states right to a
| share of the value of the earth's pro-
ducts, together with the diminishing
value element involved, are over
looked, The protection of the local
government, and often of the mineral
| owner, demands combination of the
tonnage tax and of the local land tax.
Taxing Water Power.
When we come to the taxation of
with problem that involves even
IffFi1Y,I%{n~
the case of the timber and mineral
lands. The thing here involved is so
Elusive, so difficult of measurement,
and requires such expensive admins
tration that it is quite conceivable
that many years must elapse before
an adequate plan for such taxation
can be developed, A water power,
however, is perpetual, and in this par
ticular it differs from timber and min
eral properties and is more likened to
farm lands. 1t differs from the latter,
however, in this particular that the
work done in Harvesting 1t is done
once for all and the annual labor ex-
pended upon it is not exhausted, as
seen in the case OF the farm. Nature
having been harnessed, is able to ac-
complish the work which she is called
upon for. ."
Survey Is First Step.
The first step in any adequate sys-
tenn of taxing water powers must be
their survey. This means listing, To-
eating and measuring. 1t means too
that the legislature should assume at
the beginning all water powers be-
longing to the state and that the ac-
quirement of them must be through
lease as In the case Of mineral lands
in the state of Minnesota, for example.
Several plans have been suggested for
the taxation of water power. One is
the measurement of the water flowing
over dam, and another Is the tax
alton of the actual horse power de-
veloped. The latter plan is subject to
many criticisms. The development of
rse-power depends so largely upon
the skill of the engineer, the capital
invested, and the way the water is
handled, that 1t would be far better
TO measure the capacity of the dam
under proper engineering authority
and determine a fair rate for the
amount of power produced by the wa
ter passing over the dam. OF neces-
sity many refinements of this plan
would be required; such as the de-
termination Of the movement of the |
stream; the height of the water, the |
difficulties OF Harvesting the power;
but 1t is possible, by taking into con-
s1deration the general expense of OPP
Grating water power plant to work |
out rate which would be fair to the |
users as we'll as to the state. In no |
instance of conservation does great |
er need OF proper taxation appear than |
in the case of water power. Nature |
provides perpetual force with but |
little expense after the necessary
fundamentals have been arranged. and |
for the state to receive no compensa-
ton of any kind for the utilization of |
such a great wealth producer is to
bring into existence the greatest pos
sible factor of injustice In the matter
of taxation.
1t will therefore be seen that a ra-
tional taxation of natural resources
does not depend upon any very great
and intricate principle, but that, on
the other hand. the principles involved
are comparatively simple. 1t must
be clearly understood as well that
the taxation OF land for agricultural
PAA Pc0NSt IVA iAtAlICA dAS, LOT
for water power, must differ In many
respects, and that principle of tax
alton applied in one case may not
work out in the other. But IL we keep
clearly In mind the purposes for which
land can be utilized, and that the
taxation of land as such i
can be made annually and that OF the
product at the time OF It's harvesting,
we have in the three instances of ag-
ricultural, mineral and timber lands
a principle that may prove satisfac-
tory when put in the form Of legisla-
tion. The same idea can be applied
to the water power site; taxation of
the land at nominal assessment and
Of the water power on the basis of the
amount of water passing over the
dam gives us again a principle upon
which can be based satisfactory legis-
Iation.
An Administration Bureau.
1t must be remembered, however,
that all legislation is compromise in
character and that the recognition of
these principles has usually been set
aside when 1t came to the question of
legislation. The states have reached
a point in the raising of revenue
where not only more revenue ID need
ID for the purposes of general social
advancement, but where better ad-
ninistration Is as essential and nee
aeSarv as 4hA nfhnr A. n5,,,s,,i..4.a