The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1926-11-05

dication is the declining importance
of the Lake Superior district in iron
ore production. In 1925 the con-
sumption of iron and steel in the
United States was not far from that
of 1916. Yet the iron ore shipments
from the Lake Superior district were
IL million tons less in 1925 than in
1916. In 1913 the Mesabi range fur
nished 55 percent of the ore that
went into domestic pig iron. In 1925
the Mesabi furnished 48.9 per cent OF
that ore. Despite the fact that the
efficiency of ore producing methods
has increased, despite the enormous
deposits already developed, despite
two cuts in prices of ore in two years,
the part which the Mesabi range ore
is playing in pig iron production is
constantly decreasing.
"There is competition from south
ern ore, there is competition in east
ern ore, there is competitor in foreign
ores. What does it do? Some years
ago the Lake Superior district used
to furnish million tons of iron ore
to the furnaces lying east of the Al
eghanies. Last year little over a
million tons of ore was sent to those
furnaces.
"But here is another example. You
know that England has some rather
acute industrial problems. You will
remember what the English govern
ment and the British rubber pro-
ducers did to you during the past few
years. England has lot of hungry
people over in India. She probably
reasons that it is better to let these
people work for living than be sup
ported by governmental charity. In
dia with it's vast deposits of iron
ore is today laying down on the east
ern coast of the coast of the United
States, pig iron to the amount equal
to the production of six blast fur
naces. In dollars and cents India is
not much farther from the eastern
coast by water transportation than
Buffalo is by rail. The British gov
eminent overcomes many handicaps
by giving a subsidy of $1.80 ton
for exported pig iron. Today the
miners of the Mesabi range are in
direct competition with the British
government and the starving black
man of India.
"And how are we going to meet
this competition?
"Analyze the cost of producing
Minnesota iron ore and you will see
hot khn oil oornf in,
the cost of production is taxation.
The iron ore industry of Minnesota,
pays a larger percentage of it's gross
value for taxes than does any other
industry in the United States. Taxes
bear a larger relationship to other
items of cost in, the mining of iron
ore than in any other industry. To
prove this take the published report
of the Minnesota Tax Commission.
Supplement this by information for
the past two years for which pub
lished report has not yet been made,
and you will perceive the condition.
During the past five years the
Minnesota iron mining industry has
paid $113,000,000 in taxes-occupa-
tional taxes to the amount of ST.
100000, royalty taxes 100000
more, and ad valorem taxes 500, 000,-
900.
This total of $113,0OO,OO0 is by a
coincidence just a million dollars
more than the labor and every item
which enters into the cost of taking
the ore from the ground.
During the past 5 years the value
of the ore at the mines was very close
to $500,000,000. The taxes paid
amounted to 22.8 per cent of the
value of this ore. This is not far
from fourth of its actual value.
IF every time farmer MIXED a
gallon of milk he. had to give a quart
for taxes there would be revolution
in Minnesota.
"The cause of this condition may
be easily seen. Upon the Mesabi
range there has been reared a false
standard of local taxation. Govern
Gals
mental expenditures have gone to a
point utterly beyond reason. Public
moneys have been used, wasted and
expended in a manner unknown to
other sections. Tax has been paid
upon tax until there exists q state