The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1930-06-20
THE EFFECT OF TAXATION
ON The MINING INDUSTRY

no drilling or exploratory work.
"2-June 3Oth 1919 there were 1903
men employed on the range. In 1927
there were only 1885 and today there
are 9,846. Population OF communities
have diminished, trade has languiShed,
property values have declined, homes
and stores are empty. In one block
in the city of Bull the writer counted
IL vacant stores.
"3-Sixty per cent of the ore today
comes from Is mines. There are 140,-
900 acres of state lands on three iron
ranges not under lease.
"4LThe percentage OF iron ore
washed or treated to make merchan-
table in 1925 was 1920, in 1926
from ores of lower grade and higher
costs. Taxes will confiscate the ores
allowed to remain in the ground
are allowed to remain in the ground
and the more favored ores will bear
the burden of the tax element in
mining costs.
"5-In 1919 the tons of ore mined
per man in the stripping yards were
5719; underground 1,058 and open pit
1885, In 1927 stripping yards were
6247; underground 1925 and open pit
9187. The ability of man to produce
iron ore has not doubled or tripled.
It may have increased $3.50 but the
real cause for unemployment and fail
ing population Is less development
work and concentration on few high
grade mines.
"6-Unheard of municipal extrava-
gance exists on the range. These
towns spend in excess of their levy.
On January 1, 1928, II Mesaba range
communities had bonded indebted
ness of over $4,507 900 and out-stand-
ing orders to the amount of Saba, 900.
These range towns for whom there is
no excuse for Indulgence levy for in
terest on inexcusable Indebtedness an
amount sufficient to pay 500 of the
operating expenses of II other COM
munitieS of Minnesota. In 1920 Hib-
bing's population was 1909; amount
of levy $1,905,176 per capita 126.25,
while st. Cloud of the same population
and the amount of levy at $228,000 had
a per capita of 1913 Kinney with
1900 population; amount of levy $685.
1886 and per capita 1924 while Pine
City with the same population, levy
1858, a per capita of 10.49.
"7-In 1927 the tax cost to the in
dustry was 1850 of the entire value Of
the ore produced at the mines, but the
total taxes paid by the entire mining
industry of the u. S. is only 2.6%o Of
the value of the total mining pro-
duction.
Since 1920 the market price of
standard ore has dropped $1.S4 per
ton at the mine or 1870 with no re-
duction of wage rates.
fI,a iraya ir.
dustry are to 20 times as large, in
proportion to income as are the taxes
on other kinds of activity and pro-
duction in Minnesota. Out of every
dollar received for iron ore 23c are
paid for taxes Taxes are higher than
labor; than materials or supplies or
the cost of developing the mine. For
each $1.00 spent on labor the mining
companies paid $1.55 in taxes.
I'm conclusion let me repeat that
super taxes on the iron ore industry
are opposed to a sound conservation
policy. High grade ore is being Quilted
out as fast as possible. Small oper-
ators and independent miners are
crushed to the wall unable to COM
pete with the Steel Trust. Fewer
mines operate every year. State lands
are not leased. New developments
and explorations do not exist. Taxes
do not allow low grade ore to be bene-
ficiated, or underground mines to OPP
crate. Population dwindles and I'M
employment increases
takes, artificial and abnormal a
political element is the factor which
is hindering a sound industrial struc-
ture of the northwest.
Every recently Auditor Ray P. Chase
candidate for governor, said on this
very matter From the states stand
point, it's need and responsibility is
to prolong the life of the iron mining
industry. The most effective way, in
fact the only way, is to insure the use
of low grade ores. Each year iron
mining employs thousands of men in
Minnesota, pays millions of dollars in
wages and other millions in federal
and local taxes. 1t is worthy of bet
ter position in our economic structure
than that of a political football. The
welfare of the state and the needs Of
the industry should be governing fac
tors, not the political ambitions OF
contending candidates"