The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1929-01-25

The matter of taxation on mining
property was discussed at Tuesdays
meeting of the Ely Commercial Club
and it was the concenSuS OF opinion
that the mining companies of this sec
ton of the state should be relieved Of
part of the burden of taxes which
are now throttling and choking the in
duStry The legislative committee was
instructed to get in touch with the
legislature and procure bills already
introduced relating to taxation of
mines, call together a council of citi-
zens and later call mass meeting to
go into the thing thoroughly. 1t is also
proposed to select committee from
among our people to go to st. Paul and
meet with the committee on taxation
and urge the cut in the mining tax
and also to keep an eye on the inter-
ests of the city and the school district
in the matter.
1t was the opinion of all those pres
ent that something must be done in
this regard or Ely would suffer in con-
nection with the other range commun-
tiles. The sentiment in the southern
end of the state is in favor of re-
duction in mining taxes, but the
methods of this reduction is to be
thoroughly looked into by the legisla-
tive committee and the mass meeting
in order to give our delegates who will
appear before the committee in St.
Paul something to work on and be
prepared to cooperate with the other
communities of the ranges. Talks were
made by several and many vital facts
brought out. As nothing definite has
as yet appeared in the legislature on
the subject it was deemed advisable
to get to the bottom of the matter and
get facts and figures before making
the st. Paul visit.
This must be done at once and there
fore the committee was empowered to
call a special session of the Club and
citizens in the very near future. So
far, Senator George Lommen of this
district, has introduced bill seeking
to annul the Royalty Tax. This tax
has been a thorn in the side of the
mining companies. When first talked
Of and passed it was destined to get
something from the fee owners in re-
turn for the royalties exacted and
paid by the mining companies. The
men who drew the leases for the fee
owners however had a woodchuck in
the document which was not discov-
cred until it was attempted to collect
the royalty tax from the fee owners.
Then it was found that the mining
companies were stuck" for all taxes,
regular and special. The supreme
court decided that the mining COM
| panies should pay the tax and not the
fee owners. As this was not the in
tention of the legislature, there is no
reason why the act should not be re-
| pealed
1t was shown that the excessive tax
alton has played hob with the mining
| properties of the ranges. The last re-
| port Of County Mine Inspector Ed
| Smith of Eveleth shows that only 70
mines were in operation in the county
in 1927 out of a total of 182 listed
This shows that liz mines were in
operative in this county alone The
total number of men employed in the
county in mining operations was g.
033 against something like $1,000 ten
| years ago, or before excessive taxation
took the industry by the neck 1t was
also shown that while the average
taxes in Michigan against the mines
was Is cents, the taxes in Minnesota
were 20 cents, making differential in
favor OF Michigan Of As cents on a
ton Of iron ore. Facts were also ad-
duced showing that steel was being
imported in large quantities for the
eastern sea-board consumption and
this importation last year amounted tc
something like 100000 tons. The re-
suits are as plain as the nose on your
face If the steel making industry can
not get ore from Minnesota at. a rea-
sonable price, they viii get It from
some other part of the world
The matter has become so acute that
it behooves the citizens Of the mining
districts to sit up and take notice
The people Of Ely are closely alliec
with the industry and slump in min
ing means corresponding slump IN
business and labor. On the conduct
OF the mining business hinges thu