The Ely miner., 1925-02-27
MINING INDUSTRY
TAXATION POLICY.
SKILLING'S MINING REVIEW
THINKS TAXATION is KILL
ING GREAT INDUSTRY.

Much comment has been ex-
pressed in late years regarding the
lower end of the state attitude. on
mine taxation in the iron country.
Charley Skipings of Duluth, an
authority on the subject and pub
Usher of the Mining Review in last
weeks issue talks plainly on the
matter as follows:
''It has been manifest for some
years that the state of Min-
nesota was determined to ride the
iron mining industry to the limit
of endurance. This policy already
has resulted in severe losses for
some of the independents and has
brought the exploration for new
ore bodies by any except the larger
and stronger companies to a COM
plete standstill.
The mining companies heretofore
seldom explored lands on their own
account. They left that important
and uncertain branch of enterprise
to the explorer, and to development
companies organized for the pur-
pose. In late years the mining
companies have been forced to in
augurate their own explorations if
they desired such work done. In
dividuals and syndicates having only
moderate means could not afford to
locate new ore deposits for fear
they could not turn them promptly,
and in which event they could not
afford to carry the properties for a
period of years and pay the high
taxes. If they had to do this all
prospective profit would vanish and
loss would take its place.
Great Industry Merely Tolerated.
"The promoters of mine taxation
appear to entertain the idlsa that
the state can do no wrong providing
it can get the money. The fact
that these mining companies rave
caused towns and cities to rise
where only stumps would be other
wise, and continue to be, their main
support, appears to be given no
consideratio in the southern part
of the state. In fact the mining
companies are treated as if they
were i~terlopers, to be tolerated but
not encouraged. The taxation of
the iron mining industry in Mime
sofa has been overdone, and even
now there are members of the leg
islature working to increase the oc-
cupational tax to 10 per cent from
per cent.
"As matter of concrete justice
the time has come when the state
should give the iron ore industry
some relief. The industry asks that
stockpiled ore be assessed the same
as unmined ore. This is all that it
is asking, except that it protests
against any further increase of the
tax burden, and it should be grant
ed. Million of tons of iron ore have
been produced in winter and put in
stockpile- for no other reason than
to provide mployment for the men
who depend upon the mines for their
livelihood, and to assess stockpiled
ore as personal property is placing
heavy penalty on the companies
while engaged in doing som2thing of
direct benefit to the state. 1t is
true that iron ore is produced in
winter also at times when the forth
coming season warrants such produc-
tion in advance. but the mining COM
panies, regardless of the outlook.
produce as freely as they can afford
just to provide employment. More
than one-half of all the ore placed
in stockpile over any ten-year period
in the history of the industry is
hoisted to keep the miners employ
ed and earning money to provide for
their families.
Menace to Mine Investment.
''The ever increasing taxes in the
iron mining industry in Minnesota
has caused many people owning
minority interests in properties to
sell out for fear that leases would