The Yale expositor., 1913-09-25

Allen says the decrease in profits 10
due mainly to the low price of ore in
1912 and the decreased shipments OF
1911, but he points out that while the
profits of the business OF iron mining
decreased 1913 per cent the increase
in the appraised valuation is only 1886
per cent. Allen says that this decrease
is not larger is due to the rapid de-
yelopment of the mines in Iron coun'
ty during the past two years.
The tonnage of ore in Iron county
has doubled in the past two years
and this is reflected in the increase
in the valuation of this county of more
than 80 per- cent. There have been
some important developments in Go
gebic county also, but in the other
counties the tonnage has not been in.
creased by new developments. Only
one new property has been developed
in Marquette county and it is doubt
full If this property contains sufficient
ore to make a mine, according to the
state biologists observations.
In 1910 the iron mines of Michigan
paid the state $S99,30S in taxes, while
in 1913 the iron industry turned into
the Golfers of this state $1,379 ,551
The total effect has been an increase
of about 81 per cent in total taxes
paid by the mining properties. Anoth-
err interesting comparison is afforded
by the ratio of taxes to operating
profits. During the period of 1906
1910, preceding the first valuation OF
mines by the tax commission, the
ratio Of taxes to operating profits was
$50 per cent. During the period 1908.
1912 this ration was 1923 per cent,
and this result is the average OF three
years OF low valuations by local
boards and two years of full valuation
by the state tax commission.
These figures of valuation do not
include the value of ore in stock or
buildings in mine locations that are
not a part of the mine plant Neither
do they include the value ofthemineral
lands. Ore in stock is assessed as
personal property at its cash value f.
o. b. mine, which is in the neighbor-
hood Of an average of $3.50 per ton.
This figure per ton is obtained by
subtracting from the Lake Erie ore
prices merely transportation, commits
sions and loading charges. All build
ings not part Of the actual mins
plant are appraised separately. The
value of mineral land, about $4,000
acres, in 1913 will be in the neighbor-
hood of $750,000. This represents face
value. The value of the land itself is
not included but is assessed separate
ly.
Therefore, State Geologist Allen
says that If the valuation of the min
eral lands, ore in stock and buildings
on mining locations were added the
figures of valuation for 1913 would be
increased by several million dollars.
The additional value added for build
ings other than those included in the
mining plant may be judged in way
by the fact that the assessment OF
mining property in the city of Negau-
nee alone includes the value of coo
separate buildings not assessed as a
part of the mine. These buildings
have not heretofore been assessed by
local authorities, but all such proper
~ has been placed nthe rolls by the
tax commission The total value of
this additional property has not been
figured to date, but Allen says it will
Increase the total valuation OF mining
properties by several million dollars.