Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1921-08-10
ASSESS n. ?.
MINE RIGHTS
So ACRE, PLAN
Rankin Proposes Uni
form Tax on Mineral
Reserves of Company.
Hearing on Matter Is
Set for Thursday by
Equalization Board.
Specia Ito The Tribune.

| SpecIa Ito Ihe Tribune.
Helena, Aug, 9.-Proposal that the
state board of equalization place an as
sessment of $5 per acre upon all
mineral rights held by the Northern
Pacific railway land in the state sold
with a retention of the mineral rights
was made at the meeting of the board
Tuesday afternoon by Attorney General
! w. D. Rankin.
| The matter led to general dis
cussion which ended in the adoption, by
common CONSENT of Mr.. Rankins mo-
| ton, and with the understanding that
representatives of the Northern Pa
cific would be heard upon the question
Thursday afternoon.
The proposition came up at time
when NJ T. Sanders, of st. Paul, tax
commissioner for the Northern Pacific
| was addressing the board upon the
subject of the assessment of lis comp
any's lines in the state and it looked
| for an instant as though it would win
/! out.
Rankin Presents Motion.
The governor slightly anticipated
Mr.. Rankin by asking Mr.. Sanders
about mineral reservations whereupon
Mr.. Rankin got the floor and present
ed typewriter motion as follows:
'"That the Northern Pacific railroad
company and subsidiary companies
show cause why they should not be as
sessed IS per acre for their interest in
all Of the land sold by the Northern Pa
cific railway company in the state of
Montana in which tthe company re-
served the surface rights necessary for
exploring for and mining Or otherwise
extracting mineral of any kind. This
reservation is valuable property
right SO regarded by the company and
constitutes an interest in land and is
properly the subject Of taxation.
Mr.. Rankin stated that the Northern
Pacific had reserved the mineral rights
in at least 100000 acres of land in
Montan and he had list of the as
sessments made about the state in
1920, most of the counties assessing
the land at 80 cents an acre with the
exception of Musselshell, Big Horn,
Rosebud, Broadwater and Custer coun-
ties.
Assessments Vary.
He showed that Musselshell and
Rosebud counties had made an assess
ment Of $40 per acre in 1920, but after
fight before the board of equaliza
ton. this had been reduced to So, while
Broadwater assessed at s. per acre
and Big Horn and Custer at 81. He
stated that Musselshell county had
gone back to $40 for the year 1921.
Mr. Rankin said an assessment
against the mineral rights was proper
because the holding of these rights
only tend to retard development, that
it was not just that the railroad
should be permitted to retain the min
eral rights unless it paid for them and
he did not believe it proper that the |
should be permitted to re-
tain these rights for 20 or 80 years !
from the purchasers of the lands Ill
order to permit it to speculate in the !
oil or mineral deposits.
His motion was seconded by State
Auditor George p. Porter. The COVER
nor appeared reluctant to put the ques
ton, expressing himself as fully in
with the plan, but opposed
to fixing the amount at So.
Governor Wants Hearing.
He felt that some of the land should
be assessed at a higher figure and
he did not like the idea of being held
to any one figure.
Mr.. Rankin said he had given the
matter much consideration and that it
had also been looked into by Mr.. Por-
,er.
Governor Dixon said this was the
.irst time it had been brought to his
attention, that he was agreeable to the
dea and in sympathy with the theory
,ut he did not like to have the S. limit
sprung upon him without a hearing.
Mr.. Sanders expressed himself as
yery agreeable to hearing and said
{ was q subject which he had expected
% nut before the board in connection I
With the Musselshell county assess
nent. ii
After some discussion the motion
vas amended to read "S5 or higher"
md while it was never formally put. I
he minutes were made to show that {
t had been passed by common assent.
Hearing on Thursday. {
The time for the hearing of this ,
,uestion was fixed at Thursday after.
loon and it is very probable that rep
esentatives of the Three Forks Land
20. and some other interests which ,
ave retained mineral rights, will be :
invited in. Ff
Mr.. Sanders had previously address, :
a the board and had placed some fig !
res before it showing the unsatis- :
sctory financial condition Of that sys-
EN-. He said that in view Of the drou !
d earnings and the present wretched | :
onditious Of the Northern Pacific IL !
J unthinkable that the railrosdI 40 x
10sstiassd q Fags zNias.l