Eagle River review. [volume] (Eagle River, Wis.) 1890-1927, 1923-03-08
February %, 1923.
Senator c. H. Werden,
State Senator,
Madison, Wis.

Senator C. II. Werden,
State Senator,
Madison, Wis
Dear Mr.. Werden:
With the number of different
bills before the Legislature at this
session, like the Repeal of Offset of
Personal Property Tax, the Work
mems Unemployment Insurance, the
Eight Hour Work Day, increase in In
come Tax Rates, etc. was just won
dering what will happen to che lumber
industry in the northern part of the
state, because of conditions which are
unknown to the average citizen, name
ly, the fact that most of the saw
mills in the erritory lying east of the
500 Line are now drawing most Of
their timber supply from upper Mich
gan.
AS an experienced lumberman, you
are fully aware of the fact that the
timber in northern Wisconsin is very
mach depleted, and that today the
biggest stand of virgin timber is in
the northern Peninsula of Michigan
| believe that the two big mills at
Green Bay, Wisconsin, and the two
big mills at Oconto, Wisconsin, are
drawing practically all their timber
from Ontonagon County, Michigan
The Marinette mills are in the same
position. Some of the mills in the An
tigo territory are hauling logs from
points. in Michigan | know that the
mill at Vinegar, Wisconsin, is draw
ing it's entire supply from Michigan,
and believe the mill at Eagle River,
Wisconsin and many other mills are
drawing probably all or at least con
siderable of its timber from Michigan
Referring to our own situation at
Ashland, you will probably remember
that we were logging exclusively in
Wisconsin up to several years ago,
however, we only operated during the
summer months as our timber supply
was limited. Several years ago we &C
CURED big tract of timber in Gogebic
County, Michigan, and thru this pur
chase we were enabled to increase the
output of our Ashland, Wisconsin, mill
by operating the mill all the year
round. both winter and summer.
Every log which is now being sawed
at our Ashland mills comes from our
logging operations near Tula, Mich
gan, which means that by acquiring
timber lands in Michigan we were en-
abled to increase a Wisconsin indus
try over 40 per cent by bringing raw
material from Michigan to be manufac
tured in the State of Wisconsin, on
which we assume rather heavy
freight rate but give Wisconsin the
benefit of taxes on our product.
The State of Michigan has no In
come Tax and none of the other laws
now suggested the Wisconsin Legis
lature, the only Michigan tax at pre-
sent being a Capital Investment Tax
of 311a per cent
We are not writing this letter as a
threat, but only to bring out some
facts which we believe should open
the eyes of the Legislature to an
alarming situation
If the laws in Wisconsin are going
to make manufacturing of lumber in
Wisconsin prohibitiye, there are only
two things to do, namely, either to
curtail the output of the Wisconsin
mills or move the mills into the State
of Michigan. We have no such move
ment in mind, as we have a large in
vestment in this State and particular
ly at Ashland, Wisconsin, but if we
are forced to do so we would probably
be obliged to sell our timber in Michi
gan which will result in the curtail
ing of the output of our mill to prob
ably one half of our present output