The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1929-02-15

On This
Occasion
Just few thoughts by the Editor On things
Material and unnatural

Last week was a busy week for those
taking an interest in public af1airs
as related to this section of the coun-
try. First there was the taxation Ques-
ton which was heard at the state cap
itol on Wednesday evening and which
was attended by delegates from every
range town. The hearing was before
the taxation committee Of both houses
and resulted in a lot Of language be-
ing spilled on both sides. What the
result will be God only knows. The
southern end of the state VIII not re-
cede from its stand that the occupa-
ton and royalty taxes are correct and
that the ad valorem tax insofar as II
relates to the mining or iron ore is
also correct and should not be reduced
The northern end feels that the occu-
patton and royalty taxes are wrong
but that the ad valorem basis should
be maintained in order to furnish sus-
tenance for the range communities.
Some of the range communities came
out in favor of a reduction from 70
per cent in the occupation tax; the
adjustment of the royalty tax and
a slight cut in the ad valorem tax
Some one with an inquiring mind
brought up the question OF exactly
how much more exploration work
would be done providing these taxes
would be reduced Also Just how much
more ore would be mined and how
many more men would be employed II
this were done? There is something
wrong somewhere and experts claim 1t
is in the taxation Of iron ore. II IS
shown that Michigan has the best Of
Minnesota by IS cents ton on ore, also
that altogether too much ore and steel
is being imported into the United
States in competition with the ore and
steel of this country. II is shown that
the higher grade ores are being
mined while the others are left in the
ground Then comes the statement
that the mining companies are mining
the ore held on leases and upon which
they must pay royalties and leaving
the fee owned properties idle. The re-
suits while not clear however show
that out Of 186 mines in this county,
only SO are in operation 1t also shows
no new Developments This has all
happened since the present tax laws
became operative. Since that time also
the entire eastern end Of the Mesaba
range has become imperative. Also
that machinery installed to combat the
high taxes and royalties has decreased
the forces from about 1900 to 10000
on the ranges The subject is being
considered by the legislature in all its
phases.
The interim tax committee will have
a hearing in a few days. Their report
viii in all probability have considerable
TO say on mine taxation. The State
Tax Commission has recommended
cut in the ad valorem of Is and %
per cent. or from so per cent to 80 and
1-3 Such cut would be the ruina-
ton of the range communities who
might adjust themselves to a cut of
few cents in the ad valorem. It is
only to be hoped that out of the mess
viii arise something Ct benefit to both
the mining concerns and the people in
the mining towns There is a run1or
persistently in circulation that some
thing more drastic that a cut in the
tax rate will follow This rumor has
TO do with another cut in the per capita
limit This would not affect the City
Of Ely but the School District would
be out Of luck We hope the rumors
are merely rumors.
Senator Lommen Of this district has
been the target for considerable crit
cism during the past two weeks as the
result Of his resolution in the senate
blocking the passage Of resolution by
McLain having the Minnesota Senate
and House of representatives memorial
lie the Congress Of the United States
TO pass at once the Shipstead- Newton
bill. Senator Lommen's resolution was
introduced because Of the clamor that
the territory was too large as embraced
in the Shipstead- Newton bill which
included everything north Of Town
ship line go from the western end of
St Louis county to Lake Superior on
the east.
In the Lommen resolution a typo
graphical error was made which segre-
gated certain sections from the opera