The Calumet news. [volume] (Calumet, Mich.) 1907-1938, 1911-02-09
Governor Osborn Gives it Death
Blow by Declaring Mines
Can be Properly Taxed
Without II.
COPPER COUNTRY MIN HEARD
Allen r. Rees and James MacNaugh-
ton Give Practical Presentations
of the Situation at Hearing
in Lansing.

Lansing, Mlch., Feb. 9.-Governor
Osborn's firm stand against the pro-
posed. tonnage tax disposos of that
bin which win probably be reported
out within the next few Gays and
killed In order to put an end to further
discussion.
Tho governor yesterday cmphatical-
ly declared he was opposed to the tom
mage tax measure.
At hearing held Tuesday night on
the proposition of placing tonnage
tax upon the iron and copper mines
of the upper peninsula, a number of
mining men and representatives Of
mining companies were heard, all of
them presenting sound views and
facts against such legislation.
Allen r. Rees Talks.
Allen Z, Rees of Houghton said that
he had heard but two reasons for i'm
posing tax unheard Of in any tax
ridden country in the world.
e "The first" he said. is that we
have been tax-dodgers and the second
is the so-called heritage theory that
we are destroying the land. Michigan
did not want the upper peninsula
when it was turned over for the Ohio
strip. The territory was developed
under most adverse circumstances and
the land was bought from the United
States. 1t is said that we are shipping
the ore out of the state. Well, what
can we do with Il? Michigan could
not use the product of the smallest
mine. The ore goes all over the world,
but has the money been lost to Michi-
gan? In sixty years s170,OO0,000 has
gone To 10000 stockholders, some of
whom live I'm Boston and many in
Michigan over $500, 900 has come
back to Michigan. 1t has built up the
upper peninsula. Are we destroying
or building up the state? Can you
find another industry that has done
more?
To-day our copper mines pay more
taxes than any mines in the world.
More than that, we pay a higher tax
than any other industry in Michigan.
This may appear startling in view Of
the popular notion in lower Michigan,
but it is true"
Mr.. Rees took up the value Of the
Calumet & Hecla, the assessed Valua-
tion of which is $46.000,000. The
stock value of all it's properties owned
i'm the Calumet q Hecla. including
several millions of eastern property.
he gave as $51 100000, showing that
it is now assessed at full cash value.
''This is an absolute fact" he add
ed. "for our stocks are all quoted and
the assessors have no trouble in get
ting a line on the value"
Mr.. MaeNauehton's Argument.
James MacNaughton, general man
ager of the Calumet & Hecla, gave
the legislators some facts to think
of in regard to the real situation in
the upper peninsula.
I'VE have" he declared, "the low
est grade mining camp in the world
as regards the richness of the ore. We
are in competition with Montana
Utah, Arizona, Jaran and other coun-
tries and are behind them I'm produc-
ton. The report of the geological sur
vey sows that while the mines of the
upper peninsula produce so per cent
of the copper bearing material, yet
they only produce 20 per cent of the
actual copper.
Lot me give you something else
TO think of. The copper mine of Mon
tana produce Sc pounds of ore to the
ton, Arizona produces 81 pounds and
the mines of tho upper peninsula pro-
duce 20 pounds to the ton. Besides
this our mines are so per cent deeper
than those OF Montana and 100 per
cent deeper than those of Arizona,
Now, I am neither a prophet or son
Of prophet, but in 10 years the mines
OF the upper peninsula will only be
producing 16 pounds of copper to the
ton of ore. Besides the competition
we have 20 meet, we have harder ma
tcrial To deal with to save less copper
in the process of producing. Under
the circumstances We cannot stand
any additional burden and meet the
competition Of the rest of the copper
world.
Not Trying to Dodge Taxation.
"out of 2SS.0OO,OOO pounds of cop
per produced by tho mines of the up
per peninsula, 55.0O0.00O are produced
at a loss. The Allouez. Centennial and
Isle Royale mines have been operated
for 40 years and have never paid q
cent. They were operated in the hope
that they might some day, but this
hope has been almost dispelled.
"The Calumet q Hecla is the only
mine always quoted. Well, to Illus
trate. forget the sl10,0O0.000 taSer
from IL and you will find that the peo'
Pile have put in s5.oOo.ooO more thar
has been taken cut of all the othe'