The Detroit times., 1911-02-09
IAXAT|ONQUEsT|ON
UP TO COMMISSION
Gov. Osborn Says Legislature Should
Give More Power To Settle
Mining Proposition.
From a statt 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 or
a hearing held by the joint mining
committees OF the house and senate
last night on Pep. Graves bill for the
tonnage tax on copper and iron ORE.
The mining interests were represent
ed by the pick OF the managers and
counsel. James Helme. OF Adrian.
end Stephen Clink, of Muskegon, aid
ed 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 it's share OF the great wealth pro-
duced. He 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 Ii. Rees, attorney for the Cal
umet q Hecla mines, said that the
Michigan mines now pay the highest
taxation in the world. He declared
that they pay higher taxes than any
uther Fart of the state. He stated
that the Copper Range pays a 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 a. Hecla, he said.
pays taxes on 100 per cent of its
n t1A 20
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 tax
assessed upon a ton OF iron ore Is in
equitable and unjust. James Nc.
Naughton, head OF the Calumet &
liecla. stated that there are As copper
mines I'm the upper peninsula, Is OF
which are producing and the others
ere amply explorations. He stated
that he is connected with 13 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
eb, the Michigan mines being pro-
ducers OF the lowest grade of ores OF
any being operated. He added that
The production Will drop to is pounds
IN 10 years. Some mines, he said, have
teen operated at a 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-.
.tblest speaker for the bill. Cllnk gave
four reasons why the specific tax
should be favored They we're:
First because mines were natural
resources and passed TO private own
ers for ridicu,ously small figure;
second. because mining means final
exhaustion, when the property will
cease 20 pay revenue to the state,
end will be worthless; third, because
of the imposslDi.ity or getting the
actual valuation of the property.
much of IL not having been developed;
fourth. because ~ the continued evil
dence e domination OF local assessors
ny the mining companies.
he corrected IA statement made by
James Helme that the specific tax
would mean double taxation II the
mines do not produce. he said. they
were taxed adj valorem: II they did
froduce. the ad velorem tax would be
deducted from the specific tax.
"A farmer does pay n double tax.
because his land Is taxed and also the
irain which he produces from IL, or
he money he gets from the grain.
rhe assessor takes no note whether
he was Obliged 90 plow 10 acres OF
fertile soil or 100 acres Of rocks TO
get n certain amount Of grain, and he