The Princeton union. [volume] (Princeton, Minn.) 1876-1976, 1918-12-05
TIE TONNAGE TAX
Senator Hamer Tears to Shreds the
Nonpartisan League Plank Per-
tanning to Such Tax.
Opines That Mining Industry Under
Present Conditions is Making
Only a Fair Profit.

Only a Fair Profit.
The Union gladly gives space to the
following interesting communication:
To the Editor of the Union:
While political conflict is on the
principal participants therein may per-
haps be more interested in what they
hope will be the results thereof than in
anything else connected with the cam
paign. On the principle that all is
fair in love and war, there is less con-
Germ felt regarding the means used
than the end sought. Like all other
1Yman activities, and because Of the
.allibility that characterizes our ma
ture, there is an almost certainty of
less or more error in the positions and
statements Of some of the political
leaders, at least, at such time. So
far as the influence of such errors is
concerned, they cannot be recalled af-
ter the campaign is over. Yet it is
worth while then, and under the more
favorable conditions, to take a more
dispasionate view of the real facts and
revise our opinions accordingly. A
judgment based on facts is always bet
ter than one based on error. This is
therefore true, in politics, even after
election when our revised judgments
cannot change the results. These
thoughts are suggested by certain
features Of the campaign just over, one
of which would like to refer to with
more extended remarks, viz,
The Tonnage Tax on Iron Ore.
This was one of the principal planks
in the Nonpartisan league platform.
If the proposed measure ever got be-
yond the chaotic state of being with
out form and void even Of thought" I
never saw any announcement of it.
Nevertheless it was claimed that this
measure, if in operation, would pro-
vide for revenue receipts to the amount
of $10,000,000 per annum. 1t was also
claimed that the revenue from this
source would be almost equal to the
whole cost of the government Of this
state. AS there is at present no pro-
vision for such tax, it was made to
appear that the mining companies are
! operating, with enormous profits for
: themselves and are not bearing their
proper burden of taxation.
\ Now what are the facts? The bien-
NAL report of the Minnesota tax COM
mission, recently issued, is authority
for the following: Gin 1917 the mining
companies in Minnesota paid total
in taxes of $10,S95,235. The gross
earnings taxes paid by railroads (for
carrying this ore) for the same year
was approximately $1,46O,O33.
If this tonnage tax was to provide
for a revenue of $1O,O0O,OOO, what
about the additional $395,23 which
they paid last year, and which will
! probably be 100000 for this year?
If the chief virtue of a governmental
administration consists in laying
\ heavy taxes on large corporations, why
reduce the tax on mining companies
about 100000 per year as per the
league program?
AS to the cost of the state govern
ment per year-the figures given by
the United States census bureau for
1916 are as follows: Total receipts for
revenue $20,441 1916 and total govern
mental costs SIS, 1892 The state
ments made to the effect that the ton
mage tax receipts would nearly equal
the total cost of state government
must therefore have been made with
out sufficient knowledge of the facts.
This is one of the things that make a
y checking Of the items now Of value to
sthe people generally. Another thing
THAT very materially affects the whole
question of taxing the ore industry is
the fact that in September, 1917,
President Wilson fixed the price of
ore, pig iron and steel. Mesabi Non
! Bessemer ore testing 51.5 per cent was
fixed at $5.05 at lower lake ports, sub
ject to revision January 1, 1918. By
! such revision the price for the year is
$3.50, and up to $6.4O for ores Of
higher quality. Rail and lake freight
from mines to the lower lake ports
are $2.1O, which amount, deducted
from the price quoted, gives the value
per ton at the mines.
When the president fixed and re-
vised these prices it is presumed that
he did so with due consideration of
all the features involved. With all of
the counsel available to him it seems
incredible that he should allow for a
margin Of exorbitant profit for the
Mining companies. I am not making
1eeusations against any, but if the
mining companies under existing cir.
ecumstances are guilty of profteering,
! the president Of the United States must
also be guilty Of making the condi-