The Democratic banner. (Mt. Vernon, Ohio) 1898-192?, 1915-11-30
RICH
Town Fighting Mine Owners
To Hold Election

United States Steel corporation and
other iron mining companies have
refused to pay certain taxes, alleging
extravaganza in expenditures, will
hold tomorrow special election to
decide whether an issue of $1,5OO, 900
In bonds will be made to raise funds
to meet the obligations of the town
government. The wealthy town has
been bankrupt for many months be-
cause Of the delinquency of the larg.
est taxpayers, who are the owners of
the rich iron mines of this section.
The bond issue, If voted, will be a
further bone of contention, for 1t is
freely predicted that mining officials
Will fight such a bond issue in the
courts. The town officials, including
Mayor Victor l.. Power, will welcome
such proceedings, in order that the
history of Hibbing's troubles with the
mine owners may be threshed out in
the courts.
war to the finish has been going
on for months between the eleven
mining companies operating at Hib-
bing and the town government. BY
refusing to pay their share of the vii
lage taxes, the mine officials have
tied up the town government and the
debts of the town are being paid in
orders that will be cashed, with in
terest, when the controversy is set.
tied.
1t Is the aim of the capitalists to
limit the expenditures of the town
government to S22,50O a month. Last
spring the mining companies an
nounced that they would refuse to
pay their 1914 taxes, charging that
the village had been grossly extrava.
CANT. The companies demanded the
preparation of a budget which would
materially lessen the taxes. The fail
ure or the companies to pay their
dues cut Off fully 95 per cent of the
towns revenues, and there was an
Immediate collapse of the town treas.
ury. Mayor Power declared the vii.
lage would compel the companies to
pay.
After appeals to Governor Ham,
mond of Minnesota, an arbitration
meeting was arranged, but the min
ing companies insisted on limit of
$22,50O being set for monthly ex.
pense. The demand was refused by
the town authorities.
The mining companies claim that
the taxes would not be delinquent un.
I'll next January and they claim that
notice of delinquency must be sent
to the companies, and they must have
time to reply, and that a court hear
ing could not be had before March.
The ultimatum of the mining COM
panies, besides limiting the towns
expenditures, also provided for the
completion of the water system
changes made necessary by the nine
operations, that the expenditures for
sewer work must be limited TO $4,000
and that paving cost, to the amount
of 40 per cent, be paid by fee owners
OF the abutting property, whose rights
apply only to the surface and not ia
the minerals underneath.
So far, fiibbing has not surrender.
ed to the mining interests. Its debts
have been paid by warrants, and
these have been accepted freely.
Mayor Power has forwarded with
each pay warrant "a letter reviewing
the villages controversy with the
mining companies that have refused
to pay their taxes. Mayor Power as.
sures each creditor that property
with an assessed valuation of $S4,-
100000 Is security for the warrant,
and that whenever 1t Is paid II will
be with 6 per cent interest added. The
letter says in part.
THE inclosed order is forwarded
TO you In payment of your account"
~ ''N" 'NN'''o 'ht StOIy VI
finances and points out that the city
has never levied up to one-half the
legal limit of taxes and has no bond.
ed debt. II also explains that the
Oliver Mining Company pays so per
cent of the village taxes. but this
year, when they became due, June |.
Representatives of the company
came to the village of Hlbbing and
threatened that II the council did not
surrender It's rights as individuals
and as officers and representatives of
the people to the Oliver Iron Mining
Co., the company would force them to
do so by refusing to pay their taxes"
and that III they refused to submit by
the surrendering OF their rights as
American citizens and independent
people that they would starve them