The labor world. [volume] (Duluth, Minn.) 1896-current, 1912-03-16
N R. HILL SBLUNDER::
AN OVERLOOKED RISK
Empire Builder Forgets There
is a Tax Commission to Raise
Values in Minnesota

James j. Hill, chairman of the
Board of Directors of the Great
Northern Railway, in his testimony
before the Stanley committee very
adroitly declared that "the' fire risk
on mining property in Minnesota was
very Slow when referring to the can
ceiling of the Steel Trust risk on
Great Northern iron properties.
Mr.. Hill evidently forgot that there
was a risk more burdensome than a
fire risk, and that there is a Tax
Commission in Minnesota whose
business it is to. make an honest
valuation on mining properties as
we'll as ON other property. Mr.. Hill
claims that his mining properties are
worth $5OO,0OO,O0O. The question
now asked is how. much is this pro-
perty taxed by the state of Minne-
sofa?
Compared With Tax Valuations
If Mr.. Hills statements on Values
made before the Stanley Committee
under oath could be compared with
the present assessed valuation of his
properties it is more than likely that
different story would be told.
The Milwaukee Leader in review
ing Mr.. Hills testimony makes the
following very timely and interesting
comment thereon:
James J. Hill, the "empire builder
of the Northwest" has been testify
ing before Chairman Stanley's COM
mittee of the house of representatives,
which is Investigating the steel trust.
THE committee desired to obtain
information from Mr.. Hill concern
ing iron lands on the Mesaba range
that the Great Northern railway
leased to the Steel trust on a royalty
basis, which would have turned into
the Golfers of the stockholders Of the
Great Northern approximately $780,
100000.
Trust Cancels Lease
Mr.. Hill testified that the trust
cancelled the lease because it be-
came panic stricken over the anti
trust prosecutions instituted by the
department of Justice. The lands, Mr..
Hill told the committee. were pur-
chased for 100000. They are esti-
mated to contain 5O0,O0O,OOO tons of
available ore; The trust values the
ore in the ground at 81 ton, but
Mr.. Hill said that he considers it to
be worth considerably more In a
newspaper account of the hearing. we
are told:
=. The. ore freight from the Lake
Superior region to the Pittsburgh dis
trict which the United States steel COR
pora ton recently reduced to 80 cents
a ton. Mr. Hill declared to be the
cheapest in the country.
The next rate will be 60 cents
why did they cut the rate?' he
just cot scared I> to DEATH, he he p replied i
That's all there is to it,
But you got your royalty just the
same?' asked Mr.. Young.
And when the lease runs out you've
got the Ore."
Yes" Mr.. Hill replied, what diner
cnce does it make. I'll have the ore,
and it doesn' t GO. out Of fashion, and
Tie fire risk is quite low.
The fire insurance rates undoubt-
edly will be quite low on the Mesaba
iron lands, but has Mr.. Hill not over
looked a risk against which he can
take out no insurance, save as he
may contribute to the slush funds of
the Republican and Democratic
parties-the risk that the people may
conclude to reclaim this natural
wealth which he and his associates
seized when the public domain was be-
ing looted? Some day legislature
may be elected in Minnesota which
will conclude to tax it. And no court
ever yet has been able to hold that
a tax is confiscatory. For however
devoted judges may be to the insti-
tuition of capitalism, they are not yet
unmindful Of the necessity of keeping
the public treasury well supplied with
the wherewithal, to meet the demands
for judicial salaries.
Some men, like some razors, are too
sharp for their own good.