The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1918-10-18
.ooonoOo Missing From State
r"nds Through Defeat of Ton
,,oe Tax in Minnesota.
|aI1usE LOSSES ARE SHOWN
- and Half Tons of Ore Remain
c.,nrd-This Is Double Amount
adv Removed from Northern
n.snee
pv prof. w. G. Roylance.

Sgnlel UNlS
cort of Minnesota iron ores, wal
..,,nized in 1901, and is controlled by
IL Norgan-Rockefeller interests. IT.
'E,sf asset at the beginning consisted
/, INN mines on the Mesaba range
IT, had been acquired by Mr.. Rookie
En-, bv the foreclosure in 1893 of 9
4 Mirage securing a loan of $4,000
fsi,S he had made to the Merritt
fathers, the original owners Of the
I,,..ter part of the Mesaba deposits
6oetefeller turned in this property In
II. new corporation and received fol-
II gsNS,771 of preferred stock and
4, equal amount of common stock
4 osl Of s79,417,542. This stock has
I.rre earned for Mr.. Rockefeller $685.,
k,tsy counting the dividends de.
Nusd and the present value Of the
ck on the basis Of the corpora.
&ms actual assets.
h During the II years Of its existence
h steel trust has declared dividends
II common stock of $2,392,781,974. In
IItiOn it has accumulated assets of
l0,l52,S32, making a total Of ST.
sls34SO6. This is after paying all
ales, setting aside ample amounts
b depreciation Of plants, amortiza-
d. Of capital, and ore depletion.
III The total net earnings per share
noqnt to S424OO, an average of $24.35
"a rear, and this on stock that had
The beginning almost no value ex-
F what it derived from the posi-
4 iieS Of Minnesota iron ore.
The trusts declared earnings for
! II years amount to a little over
W per ton of ore used; its total
Hings, counting all accunlulations,
party double that sum. It employs in
manufacture of steel and iron
III sut an equal value Of iron ore with
PEI materials; so it seems that its
|aHs on the ore as an asset may be
Nd a! about $500 per ton.
Value For Taxation.
ia purposes Of taxation the net
~ per ton of ore may be taken
Iae oasis on which the tax should
Ala' Assuming that other oper-
u nave done business as econom-
as the steel trust-and their
WA statements, for recent years
S1sI support this assumptton-the
AYE value Of the 46,1S9,O tons of
'alpped from Minnesota in 1917
S%'525,OOO. A rate of taxation
,' PlOnt that would equalize with
! yer cent rate on general prop
le average in Minnesota
~ n V at least 10 per cent. That
4, nave nave gwen a tax of $32,332, 300
ne lsl7 output.
y Woo net profit per ton, how.
sne average for the entire II:
was greater in 1917. An,
a -st made by taking figures given
H. vs. Cary and the mining expert.
y. IL -sl0' and bringing them up
N, u the cost Of manufacturing
w. gives 2 total cost of $12.10t
As TWO tons of iron ore are
nd naA'Ag each ton Of pig iron
81 Nh p :, Ton Of ore was $6.05. The
~, ~; IA "a 1877 for an average Of at
IN , ,So. Per ton, probably much
4 srIsa Una, ,Iat' as the government
h ". Ola not go into effect until
sr S year, and private sales
fgS '!s at higher figure than
III tor =, Nce. Thirty-fve dollars
Sp,l pig iron is $3.50 per ton
y gs V~rgy,facting the cost of man.
I'D t, sn,'n includes cost of min
T., q..nsportation, we get a net
ers, 'o N OF ore of $11.45. At
b BIoa 'n ne. net value of taxation
10 H., WV LOQS OF ora cbinDoJ
II d .t ,t was $5O8,O7s 900. and and
E00so :. ~, per cent, would have
d b '.. on a net profit basis tH O The
es s,rt ests paid in 1917 taxes
anon nase value and improve
s sr rsa to $1O,486,694, es- |
tie tat rate of 8.5 per cent fop |
O,ybv 'a "a, local purposes. The
q Il, , =. roads paid a gross
rs n,.,lHLDs,ssn4l '0'V'OOO' making a
os nag to the average net rrot. |
too " Ion II years this was $2o,.
sleaIat;"", According to the |
s lsso !. too low. -'A' pr'h's
IL ' nth the State Lost. j
asots ss ia of iron mining
i l~ It,S 1
y st Sss1 out, the greater r. p art
'ahas h trust began its opera
ARe na u ore was $500. At
Aipaeso.saa value of the ore taxi I
Ills s ss was s4,514,42s,5sa. /
sse been e'l at 10 per cent
psid ~ ~ s.4aSl,442,S5s. The to-!
aoilSiy7 the mining interests
1000 nan rannot have exceed
US on sr.ng taxes on i'm
I niniu urlaee value of land
q ors. ,ng and on the gross
Of sam irving railroads.
% The 80 1856, which has
e by undertaking
VWmlSSi0n oc<sxn~x