The diamond drill. (Crystal Falls, Iron County, Mich.) 1887-1996, 1916-05-13
TO CHANGE TAX SCHEME
State Tax Commission Finds That II
Cannot Apply lis Plan This Year

'"hh"' app! ilN iihh inls rear
conference was held at Marquette
last Thursday between the tax COM
mission and the mining men OF the pen.
insula There was much misunder-
standing about the nature OF the con
ference when IL was called many sup
posing that II was for the purpose OF
reviewing the taxes as fixed upon the
several mining properties.
Chairman Barns very efectualiy set
aside that notion in the following ex-
planation
The conditions in the iron industry"
al the present time are so radically
different from what they were the past
five years that the strict application OF
the methods that have been in use dur
ing that time. for determining values,
would not meet present conitions.
likewise the experiences of the past
four years, since the Finlay appraisal
was made, developed some ideas as 10
the valuations of mining properties
that were not given the relative import
ancc in the scheme for valuing mining
properties that the Board now thinks
they should have. Above All the Board
has been studing how the valuation OF
mining properties could be made more
stable and less subject to fluctuations.
whether those fluctuations be an i'm
crease or decrease
With these ideas in mind the Board
Of State Tax Commissioners called n
conference at Marquette, TO which we
have invited not simply those directly
interested in mining properties as
operators or owners but all who might
be interested or have given study TO
the question of mine valuations. At
that conference there will be no review
Of any individual iron mining property.
whether It be located in Marquette or
Iron County IL will be discussion OF
general problems such as:
The effect the market price OF ore
should have upon the valuation OF Iron
mines
How the live years period now EN-
ployed in obtaining averages be chang
ed so as TO narrow the range OF Huc-
mations."
Would Lower Taxes IL Per Cent
As we understand il. the application
of the scheme Of mine taxation that
was followed for the past five years
would have cut such big hole in the
asses ment OF the entire state that
the commission feared an uprising
should they continue that course
The plan of taxation followed has
been 10 base the factor OF computation
upon the average profit on ore for the
five preceding years. The past 1--WE
years have been mighty lean ones and
while the mines are worth just about
as much as they were five years ago
and the future is bright for profit
able year, the application OF the com
putting factor would cut into the val
uations something fierce
II Is reported that as much as II
per cent would have been Topped OF
the valuation Of the entire state
should the plan have been carried out
Was Apparent Early In Year
Very early In the year it became
apparent 10 the tax commission what
was going to be the result with the
mines The appraisal was made im
after Jan | and as the re-
ports came i'm one after another OF the
mines showed loss until II got 10 a
point were the entire iron industry
showed loss and the mines would
have TO be cut
Word went out OF II. contemplated
cut and there were mutterings all
over the state Of dissatisfaction az
this condition owing to the future
up so much better
As may been seen from MIR Barns
letter the commission have come TO
the conclusion that a grain OF the prac-
tical must be interviewer with the
woof OF the theoretical so as TO make
mining values more stable and stop
the agitation that has existed between
tie mining and other property these
past three years.