The Calumet news., 1911-02-09
THURSDAY, FEBRUARY 9, 1911
THE TONNAGE TAX.

THE TONNAGE TAX.
Good news comes from Lansing. The
emphatic reiteration by Governor Os-
born of his opposition to the proposed
tonnage tax has given that measure
its death blow and it is said it
will now be reported out and killed in
the House. where it was introduced by
Rep. Graves of Adrian.
The governor is convinced that it
would be unjust to shoulder such tax
upon the mining industry Of the upper
peninsula, that it would put our mines
at the mercy Of those of Arizona
Montana. Utah and other states, that
it will discourage the investment Of
capital, impede progress and prove a
hardship to labor. He is convinced,
too, that the valuation of a mining
property can be fixed as accurately as
the value of any other class Of prop
erty, by actual measurement of ore
bodies, and that the ad valorem sys-
tenn can be safely applied. The gov
ernor says:
'I am not trying TO shield any
class Of property from paying its
share of taxes. Every mine in the
upper peninsula can be properly
rrftr
the state tax commission the nee
essary power and authority and
then all property will be placed on
the rolls at cash values. one thing
has been overlooked. too, and
that Is that the mining properties
in the upper peninsula have been
only about one-ffth developed
New iron ore beds are being con-
stantly opened and nothing must
be done 20 stop this development
am willing TO stand sponsor for
the statements made regarding the
upper peninsula, and know that
there is no disposition to avoid
the just payment OF taxes"
The plain statements of facts which
upper peninsula mining men present
ed at q hearing held at Lansing on
Tuesday evening on the tonnage tax
proposition opened the eyes Of the leg
islators. The mining Representatives
frankly explained the condition under
which the mines are operated and
cited figures in support Of their state
ments. They told Of the immense
amount OF money that has been put
into the mines especially copper prop
critics that have not returned a cent tc
the shareholders; the great cost Of
operation as compared with the shall
lower mines of the western country:
the low grade Of the rock. per mineral
contents, as compared with the prop
critics Of Montana, Arizona and other
copper producing states; and made the
fact plain that the mines Of Michigan
are paying more taxes than the mine,
Of any other district in the world. and
as much as any industry in Michigan
They made it plain, too, that the min.
ing companies are not trying TO evad,
the payment Of taxes, that they ar,
willing and ready TO pay their JUS
share, and TO that end will lend ever,
assistance possible to the assessing of.
fcers
These arguments are I'm line will
those recently presented in an articl,
by Tax Commissioner Robert II
Shields. published in the last issue o
the Detroit Saturday Night, in which
good, solid figures, compiled aftei
much arduous labor. are used in sup
port Of the writer's contentious. Mr.
Shields is an expert in taxation mat
ters, his knowledge along this line be-
ing gained from his long experience in
taxation affairs in Michigan, and is an
authority who can be relied upon. Un-
doubtedly his exposition Of the situa-
tion has convinced many lower Michi-
gan people OF the unreasonableness OF
a tonnage tax.