The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1928-04-06

!.
In one story in another place i'll this
paper the United States Department
of Commerce tells of the flourishing
financial condition of the state OF
Minnesota in 1926 and in another
story State Auditor Chase tells sof
the tax conditions that confront us is
the payment of the 1927 taxes and the
rate for this year. 1t was to be hoped
that the season of high taxation
would about run its course but
from all accounts conditions are
worse now than they were last year
and the year before that. The State
Auditor has no remedy to offer more
than that the numerous subdivisions
will need cut down on their expenses.
This means the state, county and
local bodies. In a later statement is
sued by him he states that Koochich-
ing county is the highest rated in the
state and that Steele county is the
lowest. Koochiching county OF which
international Falls is the county seat,
has an average rate of 1919 mills
for 1927 the taxes for which are be-
ing paid this year. The Steele county
rate is 3l.l6. Both rates are eXcluS-
i've of special taxes. ST. Louis coun-
tvs rate is 69.17 mills rnr'nareu with
$3.50 in 1926. The Ely rate this year
for 1927 taxes is 1922 of which the
schools levied 54.22; city 35.8; county
1l.48 and state TT.
The statement also shows that
Hennepin, ST. Louis and Ramsey
counties pay for 1927 the snug sum
of S66,O99, 4l646 out of the total for
all counties of the state of Sl29, $685.
17O.O0-almost half of the total. This
is an increase of over two million
more than the three Counties paid in
1926. The stete total is over seven
million more than IN 1925 The COM
parsons for the three big counties
follow:
Hennepin, .......... S27. 634. ATS go
Ramsey, ............ IA 237.5i3 85
st. Louis, ..... "a ,22T ,481.T1
While these figures are little dry
reading, they nevertheless furnish
much food for thought. Something
must be done about it, but what? AS
long as the rank and file, or the tax
paying public, insists on having ev
erything their little heart desires at
public expense just so long will the
rate continue to advance. The re-
markable part of the whole story is
that those who pay the heavy taxes
get not one iota more of benefit than
does tine fellow who pays nothing only
in an indirect way. Taxes have be-
come a spectre to the mining COM
panies on the ranges whose valuations
are constantly decreasing while the
rate has been mounting. Then comes
another bunch of legislators who have
another scheme for gouging the min
ing concerns out of just little more.
The results are apparent Out OF the
1872 mines in this county there are
only about 10 in operation. Only the
larger corporations can exist and the
little fellow who has to go into the
open market to sell his high cost ore
at low prices, simply goes under. 1t
is a ding busted lucky thing for Steele
covered a mine on some of its acres
now valued at s31.T per acre while
the St. Louis county value per acre
Is S76.57 per acre. Steele county has
a total acreage of 270,568.36 while st.
Louis county has an acreage of 81
264, 805.89 both figures being exclusive
of town lots.
The Tonnage" or Occupational tax
was one of the blows that killed faith
er. Mines that before imposition of
the tax were paying small dividends
were forced to suspend operations.
The southern end of the state thought
they had secured competence for
ever from the northern or mining
end. The results are not as salts
factory as anticipated. After put
ting over the tonnage measure it was
decided to get just little more and
the royalty tax idea was born and
grew to quite a lusty infant The
idea was to get something out of the
nonresident fee owners. The idea
was a good one if it had worked. The
joker was later discovered in the
leases and the fee owner is exempt
and the royalty tax was Saddled onto
the mining companies by the district
and supreme courts. The leases COM
PEELED the lessee to pay all taxes. The
word "all" was the joker. In the last
session there was quite sentiment
in favor of raising the Occupational
tax from six to ten per cent. Had
this been done, more mines would
have been dormant now and the
state would be the loser as well as
the mining districts. Ore prices are
far below what they should be and
would be still lower should more
taxes be added. The cost of produc-
ton has increased in the past few
years and ore at the mouth of the
shaft with raising expenses increased
brought only a small figure. A
strange truth in this case would be,
more tonnage tax would mean less
tonnage tax.
George Erickson over at Brainerd
says in his Tribune that TEX Rick
ard is having hard time finding an
opponent for Gene Tunney, but he
hasn't anything on the Republican
politicians of Minnesota who are look
ing for one for Shipstead." George
suggests an elimination bout.