Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1930-05-22
DAIRYING IN PINE COUNTY BRINGS GOOD INCOME
IRON ORE TAX
(EDITORIAL)

During the last session of the
Minnesota legislature several
members who seem to be much
worried" about the taxes that big
corporations have to pay attempted
to have the occupational iron ore
tax reduced from SO to 40 and
to have the royalty tax wiped out
altogether. The bill however did
not pass but goes to show where
some of those hirelings of the big
corporations stand. Elected to
represent their constituents they
do the bidding of the special in
terests when they get to the legis-
lature, knowing that their nest
will be feathered by such actions.
Those are the boys in the legis-
lature who get political patronage
jobs in the legislative hall for
relatives and political henchmen
and sometimes jobs outside the
legislature. The attempt to lower
the iron tax was made in spite of
the fact that the mining companies
up on the Iron Range mined more
ore in 1928 and in 1929 than in
previous years and their profits
were greater. In 1929 the mining
companies and owners of mines
paid approximately S5,O00,00O in
taxes to the state of Minnesota
Since 1921 and 1923 when the oc-
cupational and royalty taxes be-
came law in Minnesota about
S35,O0O.000 have been paid into
the state treasury as taxes from
that industry. When the mining
has all been completed there is
nothing left but a big hole in the
ground and if taxes are to be col
lected which they certainly should
be, the time to do ], lis now when
the mining companies are reaping
the harvest.
The mines are a natural resource
of the state as was the timber in
bygone days. 1t Is heritage of
the people, belongs to all the citi-
zens and should not be exploited
for the benefit of the few. The
so tax based on the taxable value
of the ore, is low enough and
should certainly not be lowered.
The profits the mining companies
are making are proof enough that
the tax is not a burden to them.
The big U. S. Steel Corporation
made a peace-time record of pros
perity in 1929. After paying all
operating expenses. paying interest
on bonds outstanding and prem
iums on bonds retired; after allow
ing for federal taxes and setting
aside more than 500, 900 900 for de-
probation of plants and depletion
of ore reserves, the Steel Trust
still had S197 ,592 200 net profits.
This is gain of more than
SS4.000,000 over the net profits of
1923. 1t is approximately $40 per
share of common stock outstand-
ing, and, it should be noted, every
share of that stock is water"
Common labor in the steel in
dustry is paid from $3.50 to s21.6O
for a six-day week; 53.4 per cent
of the workers toll ten hours or
more a day and q per cent still
keep the seven-day week. Ex-
cessive profits used to be excused
on the theory that the money thus
heaped up builds more industries
and provides more jobs.
A hundred million dollars of last
years surplus, profits of the Steel
Trust transferred to the payroll
would have added s444 a year to
the wages of each of the trusts
225,O00 employees. They would
have spent it on better living, or
saved it against rainy day; and
in either case, it would have
helped them and everyone engaged
in supplying their needs.
The sum of s444 to each of
225.O00 families would make for
more purchases of shoes. clothing,
food. furniture. and perhaps some
luxuries which would all add to
the general prosperity and con-
tentment. Good wages to a hum
dred people is much better than
big dividends to. one. And if the
Steel Trust had spent 500. 600, 900
more in wages they would still
have over $s7, 100000 left for
profits. dividends. surplus. and the
like.
From all appearances they are
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