The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1919-10-10
SOLUTION. DIVIDE THE STATE


export tax, while, as to the portion of
the manufactured steel used within
the state, he theory of iron ore as
diminishing asset would completely
break down, as the ore would still be
here for continued taxation. In fact,
iron ore does not disappear at all, it is
not "gone forever" as advocates of
the tonnage tax claim; at least it does
not disappear from Minnesota, but
only raw material disappears. True,
t may disappear from Minnesota, but
If we tax it on that account, we are
axing it as an export, and we there
violate the spirit, if not the letter,
of the Constitution. But is much
more serious we also, in such case,
iolate the spirit of right and justice,
for there should be equitable taxation
of all property, and to double-tax
some commodities, simply because
they are taken from within the limits
of one state to the territory of anoth-
Ier, there again to be taxed, is not only
narrow provincialism but monstrouS
injustice.
Finally, the advocates or the "heri-
itage theory or diminishing asset"
theory, as justification for ton
mage tax in addition to the ad valorem
tax, do not believe the theory them
selves, as is amply evidenced by the
fact they never attempt to secure the
tonnage tax without also attempting
to do away with the ad valorem tax.
| Here we arrive full at the real,
the terrible danger of the tonnage tax
Ito Northern Minnesota. The tonnage
tax means eventually, and inevitably,
/ a gross earnings tax on iron ore in
Minnesota in lieu of all other taxes.
That is what the tonnage takers are
really aiming at. They want all the
proceeds from the taxation of iron
ore, every cent of it, to go into the
general Golfers of the state The
first tonnage tax proposed was frank
attempt to take every dollars worth
of iron ore from the assessment list
of the villages, towns and school dist
riots of the ranges The bald injus-
tice of this proposal compelled ton
mage tax advocates to resort to a
double tax, but with the first intro
duction of the double tax bill, it's au-
thor argued for the reduction of the
ad valorem from SO per cent of the
true and full value to 25 per cent No
tonnage tax bill has been drawn since
that time that did not carry with it,
either in the bill itself or as an ar
gument in support of it, a proposal to
reduce the ad valorem assessment.
Bendixen, author of the bill which
passed the house and senate at the
special session, argued for reduction
of the ad valorem assessment to So
1-3 per cent. Tax Commissioner
Armson made the same argument at
the senate hearing last month. The
Bendixen bill which Governor Burn
quist vetoed contained a provision
exempting entirely from ad valorem
assessment each year that portion of
the ore subject to the tonnage tax. If
tonnage tax is finally secured, the
fight will then be transferred to an at
tack in each legislature on the ad
valorem taxa constant effort to re-
duce the ad valorem tax and cor
responding effort to increase the ton
mage tax. This is the peril that the
people of the ranges face, the final
disappearance of the ad valorem tax
entirely. This is matter far more
serious to the people of Northeastern
Minnesota than the tonnage tax is to
the mining companies.
Can the tonnage tax be permanent
/ y beaten? If SO, how?
1t can be beaten. Anything that
lis wrong can be beaten. Give the
people of Southern and Western Min
nsota conclusive proof that the tom
mage tax is wrong in principle and un-
wise and unjust in its operation and it
will be dead forever. Who is to do
the work? The people of this section,
the villages, cities and towns, the en-
tire population must do it; nobody else
can. The mining companies are re-.
garded in the farming sections of
Minnesota as prejudiced parties;
they will not be believed; they
cannot beat the tonnage tax. The
people, who have far more at stake
than the mining companies have, must
do the work.
How is it to be done? By educa-
ton and vigorous use of the big
stick. Every community on the Yer
million, Mesaba and Guyana ranges
must invade Southern and Western
Minnesota with an appeal for fair
lplay, with a straightforward state
ment of the facts, with campaign of
education that will compel the people
of the rest of the state to do what
they have never yet done, study the
tonnage tax question. If the people
lstudy the question, the politicians will
be done for. At the same time Nor
thern Minnesota must thoroughly Or
ganize a campaign to divide the state
To divide the state is a tremendous
task, seemingly an almost impossible
task. But if the task is undertaken
with unity and determination, it will
make progress that will astonish the
whole state. 1t will arouse the rest
of the state as nothing else will, to
consider the tonnage tax problem on
its merits. Southern Minnesota, in it's
$500 per acre complacency does not
realize that the wealth of the state is
in its northern portion. A serious
threat of division will prod the animal
quite bit.
Now is the time to strike and to
strike hard. We have the facts and
we MUST get them to the people Of
the rest of the state. Every resource
that is available must be used; every
ounce Of effort of which we are cap
able must be put forth. There must
be no letting up in this campaign
from now until the day the legisla-
ture meets in 1921. If we will do
this, tonnage tax will be beaten in
1921. After that it will never again
be serious issue in Minnesota.
We must work out our own saliva
ton with that courage and that splen-
did fighting spirit that has made the
settlement and development of Nor
thern Minnesota an epic as heroic as
any ever told in song or story. Up
Men of Northern Minnesota, and at
them!