New Ulm review. (New Ulm, Brown County, Minn.) 1892-1961, 1919-04-02
STEEL TRUST WINS
in ORE TAX FIGHT
MINNESOTA HOUSETURNS DOWN
POPULAR LEGISLATION BY ..
VERY CLOSE VOTE
DEFEAT OF BILL MEANS LOSS
OF $1,000, 900 A YEAR IN
1919 AND 1920 49,

Defeat of the now famous efforts
to secure a tonnage tax on iron ore con-
stitutes the most striking event in the
Minnesota legislature to date. The
final vote in the house on the bill pre-
pared by Representative WEIGH Of
Mcleod county, a Nonpartisan league
man. was 81 for to 81 against, a vote
of IS being necessary to pass.
The failure of the bill means loss to
the state of about 100000 year for
the next two years, and the saving of
as much to the great steel trust, which
has monoDolized the famous iron mines
Of Minnesota.
Was Great Issue.
The levying of tonnage tax has long
been a great issue in Minnesota. There
has been a fight for it in every legislature
since 1907, with the exception Of 1915,
and on several occasions the people Of
the state have had victory practically
within their grasp. Under present tax
methods the farmers of the state alone
pay about two and one-half times as
much taxes as the iron ore interests and
yet the net profits from Minnesota ore
amount to several times the profits of
all the farmers of the state together.
"a Members Switch.
At the beginning of the session SO
of the 131 members of the house were
pledged to the tonnage tax and "a of the
ST senators. The victory of the trust
was made possible by the switching
of "a house members, who have thus
betrayed their constituents. The list
of turncoats includes both representatives
of rural districts and some supposed
labor men from the cities. Ali of the
Nonpartisan league men, however, stood
valiantly by their prediction pledges.
Nav Strengthen Non-partisans.
The tonnage tax issue has long been
the acid test between reactionaries and
progressives in Minnesota and the
failure CT old party politicians to keep
their pledges in this regard will add
great strength to the Non-partisan
league campaign in 1920.
The major interest in the present
legislative session. in fact, has been the
feverish efforts of the old guard to keep
tie Non-partisan league from getting
any credit for legislation to head off
the League in 1920. But the failure Of
the legislature to give the people what
they want is adding to the prestige Of
the farmer organization.
The League was born in North Da-
kota after the 1915 legislature there
had broken it's pledges and grossly in
suited the farmers. The attitude of
the present Minnesota legislature will
probably produce a corresponding ef-
feet. The patience of the people with
crooked politics is at an end.
Schaleben Against.
House members representing Brown,
Nicollet, Redwood and Sibley counties
were all in favor Of this important bill,
while Mr.. Schaleben of Watonwan
county voted with the minority against
it. The five representatives Of the
counties are: Spelbrink of Brown coun-
ty, Bendixen of Redwood county, Sven
sen of Nicollet county, Burdof of Sibley
county and Praxel, representative-at-
large for Brown and Redwood counties.
Royalty Tax Bill Passed.
In the hope of squaring themselves
with the folks back home after defeating
the tonnage tax bill, the members of the
house passed the Parker bill, providing for
per cent tax on mine royalties. This
tax is ridiculously low.
The measure is now up to the senate
and the governor.
The Parker bill, if enacted into law,
will bring in an annual revenue Of $780,
600 The tax will be on the fee owners
of ore land, who lease their property.
Under decision of the supreme court
royalties have been exempt from tax
alton. Non-residents of the state and
Others, who have piled up fortunes from
the royalties paid them by the lessees
of the ore lands, have thus far escaped
their Just share of taxation.
Non-partisan league members in the
house introduced royalties tax bill
providing for 20 per cent tax, but this
bill was killed in committee.
Deposit Bill Reconsidered.
After indefinitely postponing the Welch
bill, guaranteeing bank deposits, the
house suddenly changed its mind last
week and by an almost unanimous vote
agreed to reconsider the bill.