The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1923-05-11

that business, and laid on them sole
ly because they are so engaged, as
is the case here, is an occupation
tax.
"The chief contention is that min
ing is conducted by the plaintiffs, if
not actually a part of interstate
commerce, is so closely connected
Herewith that to tax it is to burden
or interfere with such commerce,
which state cannot do consistently
with the commerce clause Of the
Constitution of the United States.
Pointing out that three-fourths of
the ore mined in Minnesota comes
from open pit mines, where it is
| loaded aboard cars by steam shovels,
the court stated that "while there is
practical continuity of movement"
| from its bed until it starts on it's
| interstate Journey. nevertheless, 'the
| operations within the mines and the
of the mines" are conducted by the
cars do not pass into the hands of
common carriers until after the tax
is imposed.
L
the contention (that it is tax upon
interstate commerce)" Justice Van
,Deventer said.
Mining is not interstate COM
merce, but, like manufacturing, is
a local business, subject to local
regulation and taxation. It's char
acter in this regard is intrinsic, is
not affected by the intended use or
disposal Of the product, is not con-
trolled by contractural engagements,
and persists even where the bust
ness is conducted in close relation
to interstate commerce. The bust
ness on which the tax is laid ends
before the ore enters interstate COM
merce and there is no discrimination
against said commerce. 1t may well
be the tax indirectly and incidental
\ ly affects that commerce, just as
any taxation Of railroad and tele-
graph lines does, but this is not for
hidden burden or interference"
Referring to the federal guaranty
of equal protection and the state
uniformity requirements, the court
declared that consistently with both
provisions the legislature of the
state may exercise a wide discre-
ton in selecting the subject of taxa
ton, particularly as respects occupa-
ton tax"
at may select those who are en-
gagged in one class of business and
exclude all others, if all similarly
situated are brought within the
class, and all members of the class
are dealt with according to uniform
rules"
"Here the selection" the court
announced, sis of all who are en-
gagged in mining or producing ores
on their own account, that is to
say, as owners or lessees. The
selection seems to be an admissible
one. Equality does not re-
quire that unproductive mining be
taxed along with productive mining.
Besides, if ore is uncovered or
made accessible by such develop
ment work, the tax would be i'm
posed when the ore is mined"
Discussing the royalty provisions
of the Minnesota law, which it was
! asserted, worked serious dicrim-
) ination in favor of those who op,
T crate under lease and were per.
mitted to deduct the amount Of
royalties paid from the value OF
the ore they mined, Justice Van De.
vanter declared that while some
might be subjected to a higher tax
than others, this would be due tC
differences in situation and not diff
ferences in treatment"
"All lessees will have the benefit
J of deductions adjusted to the royal
ties, expenses and taxes actually
paid" he said, "and the value Of
the ore, according to the tax will b.
computed, will in each instance b,
its actual value when it is brough
out of the mine less these deduc
+ tions. In short the tax is to be ad
h justed to the value of the output
= less the major expenses of the bust
: ness, and this according to uniform
rule"
/ Keen interest has been shown il
!, the cases generally throughout com
Il mercial and industrial cities due t,
d the belief that upon the outcom
/ would depend in large measure tn
e attitude of other states in the mat
e ter of imposing similar taxes.
e The mining companies attacked
:, the law as an attempt on the par
n of the state to exact, in the guise O.
n taxes, many millions of dollars an
nually upon its iron deposits.
!, Viewing the rapid dissipation O,
3 this natural resource, the companie
n asserted, the state after several un
successful attempts to obtain a por
), ton of it through taxes had by tn,
: constitutional amendment of 1921
4 provided basis for the present tax
e and should the law be held valid
s according to the claim of the com
S nanies. the state could make the ia,