Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1930-10-02
A GREAT STRUGGLE FOR
IRON ORE TAXES
(EDITORIAL)

On Feb. p, 1923 for the fourth
time a bill to tax mining royalties
was before the Minnesota house for
passage on special order.
In 1919, it passed the house 80 to
25, but lost in the senate 33 to "a.
In the 1919 special session, it was
passed 81 to % in the house, but it
was not voted on in the senate.
In 1921 the royalty bill passed the
house by 1O3 to IA and lost in the
senate % to "a.
Twenty-Five out of those "a senators
did not return to the law making body,
at least II of them were defeated
for reelection. In principle the bill
of 1923 was the same as all the
net royalty received from those who
were fortunate enough to hold title
to these very valuable free gifts of
supposedly a gift of nature
to all the people and not a favored
few.
The bill had been introduced in the
previous session by Mr.. Parker. He
was elected judge in 1921, but died
soon thereafter.
Mr. BendiXen introduced the bill
in the 1923 session and made a brief
speech in its favor opposing any
change in the rate until the Supreme
Court of the United States had de-
cided on the validity of the net value
tax on all engaged in the mining of
iron ore or other ores. The two bills,
the occupational and royalty taxes,
should carry the same rate claimed
Mr.. Bendixen, and that is six percent.
There were motions to raise the six
percent to eight percent and ten per-
cent, but the big majority considered
it best to leave it at the same rate
as the occupational iron ore tax
Mr.. Stockwell who for years had
been an ardent supporter of iron ore
taxation, explained that he thought
ten percent ridiculously low-the state
ought to have all of this royalty tax
100 percent. The owners of the mines
have no moral right to any Of it.
The six percent royalty tax passed
by vote of 104 to IS.
In the state senate at public hear
ing on March 10, all the old and
worn out arguments against the bill
were again marsha4ed and presented
to the committee.
1t was argued that "the law would
be unconstitutional" Then why all
this worry?
hn
to get the royalty But our Supreme
Court has declared that royalties are
interests in land. That land lies in
Minnesota. If the iron ore resident
refuses to pay, we can sell out his
interest in land just as we do when
any other land owner fails to pay
taxes levied on his land.
The cry also went up that sit is
double taxation" But double taxa
ton is lawful and constitutional if
so specified by the statutes, or plain
ly inferrible from the intent of the
statutes. See section 1872 Minnesota.
paragraph 232 etc.
Well, it was rather amusing to note
the array of objections presented
The committee, however, reported the
bill for passage.
1t was not until April II that the
senate acted on this bill Delays are
dangerous in matters of this kind and
these delays came very near defeat
ing the bill as it had two years pre-
viously.
Lobbyists got very busy and several
senators were fooled into voting no.
Thus it is plainly seen that it was
long drawn out contest, extending
over period of years before the eff
forts of leaders of progressive legisla-
ton in Minnesota were able to cope
with the situation, and finally make
the steel corporation and iron min
ing companies, which are making i'm
mense profits, pay a small part of
what they really owe to the great
state of Minnesota, and also their dues
to their own communities in which
they operate.
The attempt to lower iron ore taxes
in the 1929 session of the Minnesota
Legislature was made in spite of the
fact that the mining companies 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
five million dollars in taxes to the
state of Minnesota. Since 1921 and
1923 when the occupational and roy
atty taxes became law in Minnesota
about S35,0O0,00O have been paid into
the state treasury, as taxes from that
industry. When the mining has all
been completed there is nothing left
but big hole in the ground and if
taxes are to be collected which they
certainly should be, the time to do
it is now when the mining companies
are reaping the harvest