The Detroit times. [volume] (Detroit, Mich.) 1903-1920, 1911-02-08
'IAXATI0hQUEsT|0N
.UPT0 COMMISSION
Gov. Osborn Says Legislature Should
Give More Power To Settle
Mining Proposition.
(From . stan Correspondent }

(From a Stan Correspondent
LANSING. Mich, Feb. s.-Gov. Os-
born did much To heal the breach
between the farming and mining IN
terests, by his speech at the close OF
hearing held by the joint mining
committees OF the house and senate
last night on Rep. Graves bill for the
tonnage tax on copper and iron ore.
rhe mining interests were represent
ed by the pick of the managers and
counsel. James Helme. OF Adrian.
end Stephen Clink, OF Muskegon, aid
cd Rep. Graves In advocating the ton
rage tax.
Helme's arguments were TO the ef'
feet that the mines OF the state were
being exhausted without the state get
ting its share OF the great wealth pro-
duced. lie said that the mining in
terests were right In claiming that the
tonnage AK Is double tax, but he
asserted that farmers are bearing
their share of the tax burdens.
Allen III. Rees, attorney for the Cal
umet Il Hecla mines, said that the
Michigan mines now pay the highest
taxation in the world. He declared
that they pay higher taxes than any
other Fart of the state. He stated
that the Copper Range pays tax
based upon an assessment equal TO
SO per cent OF the market value Of its
stock. although much OF the property
covered by the stock Is outside the
state. The Calumet & Hecla, he said.
pays taxes on 100 per cent OF its
stock, much ~ which represents
property outside the state.
William Kelley an Independent iron
mine owner made an argument on the
point that there Is so much difference
in the cost OF production that q tax
assessed upon ton of iron ore Is In
equitable and unjust. James Nc
Naughton, head of the Calumet q
Hecla. stated that there are 4S copper
mines in the upper peninsula, Is OF
which ere producing and the others
ere simply explorations He stated
that he is connected with Is mines,
eight OF which are productive and
only two OF which are operated at a
profit. He said that mines OF Mich
igan produce 20 pounds to the ton OF
ore, while those OF Montana produce
60, the Michigan mines being pro-
eucers OF the lowest grade of ores OF
any being operated. He added that
the production will drop to 16 pounds
IN 10 years. Some mines, he said. have
feen operated at loss for 40 years.
He added In conclusion that the min
ing corporations would welcome all
investigation Of the figures presented
Otto Kirchner. of Detroit, spoke OF
the work the mining companies had
done In uplifting the people OF the
upper peninsula.
stephen Clink, of Muskegon, repre-
senting the state Grange, was the
dblest speaker for the bill. Clink gave
four reasons why the specific tax
should be. favored. They were:
First. because mines were natural
resources and passed to private own
ers for ridiculously small figure:
second. because mining means final
exhaustion, when the property will
cease to pay a revenue to the state,
snd will be worthless: third, because
OF the impossioi,ity OF getting the
actual valuation OF the property,
,nuch of IL not having been developed:
fourth, because Of the continued evil
dence CT domination OF local assessors
ry the mining companies.
Re corrected statement made by
James Helme that the specific tax
would mean double taxation. IL the
mines do not produce. he said, they
were taxed ad valorem; II they did
produce. the ad velorem tax would be
deducted from the specific tax.
"A farmer does pay a double tax,
because his land Is taxed and also the
srain which he produces from II, or
he money he gets from the grain.
The assessor takes no note whether
he was Obliged to pillow 10 acres of
fertile soil or 100 acres Of rocks to
get a certain amount Of grain. and he
takes no account whether $4,000 the
farmer may have acquired took 40
years 10 accumulate or was won in a
lottery IL you try to carry out the
principle OF going back Of market
value. you will get into an endless
tangle.'
Clin,i reused he bile of Senator
Kingman, who presided over the con-
ference. by commenting on the rela-
tive length of time given the two fac
lions.
Gov. Osborn. WHO was called on as
the final speaker, complimented the
Grange representatives for coming TO
he hearing merely on principle. with
out retainers, sdch as were paid the
mining attorneys.
I'm not for the tonnage tax on
ores, but am for fair treatment said
the goyarnor. The mines don't need
shielding on the tax rolls, and they
don't want to be shielded. The min
ing companies viii give every facility
for getting the I'D valorem valuation,
n you and I will do our share. That
means that you shall give 10 the state
tax commission power and assistants
enough so that they can get as good
a valuation as Carnegie or Prick
would get II they we're about to pur'
chase the properties They would
employ experts 10 measure up the
properties and the value OF the out
nut, The MINING companies will give
every facility for the state TO do the
same. n any property In the state
IL not paying enough, let US get to IL.
"One thing sn surprised that the
mining advocates have not adverted
10, is that the mining property OF
Michigan il not one-fourth developed
We do not want To discourage It's de-
veiopment by prohibitive taxation.
=. SANFORD.