Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1931-02-26
LAW MACHINE
WORKING HARD
Rep. Hjalmar Petersen Tells
About Activities of
Legislature.
Iron Ore Tax Increase Bill
Gets Hearing; Is
Voted Down.


st. Paul, Feb. 16-21-The fight in
the House this week came on Wednes-
day when the bill to increase the
tax on iron ore, the socalled occupa-
tiOnal tax, from SO to 1870 on the
net value of the ore, was up for dis
cussion and vote. The entire after
noon was spent in the discussion of
this bill. The committee to which it
had been referred voted the matter
down so the discussion in the House
was on the adoption of the minority
report. 1t was finally voted down II
to AZ. The writer voted for the mi
nority report to increase the taxes on
iron ore as did also Conrad Johnson
of Almelund, the other House member
from the seth legislative district.
Big Profits on Iron Range.
Representative S. A. Stockwell of
Minneapolis, led the forces for the in
crease in the taxes and gave very
able address in it's behalf lasting about
an hour. Mr.. Stockwell argued that
more tax money must be produced
somewhere and that even 1919 tax
would be low enough On the iron ore
a heritage of the people. He brought
out figures to show the enormous pro-
fits made by the two railroads serv-
ing the mining district of northern
Minnesota and which are owned by
the United States Steel Corporation,
and also showed that more ore was
mined in 1928 and 1929 than ever be-
fore, and that their profits were
greater. Those fighting for the iron
mining companies argued that the in
dustry could not bear an increase in
taxes but proponents of the bill ar
gued that farmers and other real estate
owners have submitted to increases
continually for the past several years.
Representative E. p Scallon of
Crosby, one of the ablest orators of
the House, led the forces against the
proposed increase in occupatiOnal
taxes, and won his fight. The mining
companies had their forces well lined
up and Mr.. Scallon was supported in
his arguments by such other members
from the Iron Range, as Representa-
tives Hitchcock, Reed, Geo. w. John
son, Hastings, Ray Anderson, McGhee,
and others.
Small Imports.
One of the scares thrown out was
that the industry was being Overtaxed
in Minnesota, that mining was in
creasing in Alabama where it was not
-
of Minnesota. They also argued that
imports of iron ore to- the United
States from South America was on the
increase and that there was grave
danger of this increasing greatly if
the industry was too heavily taxed
in Minnesota. Proponents retaliated
by stating that if we are to have world
trade there must be some imports to
America and industry as we'll as agri-
culture must bear some of this bur-
den. The imports of iron ore, how
ever, as yet are very small compared
to the volume of ore mined in Mime
sofa
While the battle to increase the
occupational tax was lost it may in
a way be considered a victory for the
progressives for this is in great con-
trast to the attempt made in the 1929
session of the legislature to lower the
tax from go to 40. Now that siren
uous efforts were made in this session
to increase the tax it deadens the
effort to lower it. Minnesota will con-
tinue to receive fair sized revenue
from the iron ore industry which
amounts to about $5,0OO,0OO annually
through occupational and royalty taxes
combined.
Congress has been memorialized by
the state legislature to provide for
lower rates of interest to farmers,
especially on farm loans-a bill which
is now pending in Congress. Sponsors
of the resolution say that the interest
rates may be as low as 212fo.
Extending Electricity.
to permit municipality owned electric
power and light companies to extend
their lines and service beyond the
village or city limits out to farm
ers and into other incorporated viii |
lagos and cities held Friday morning
was an interesting one. Representa-
tives of power companies were so con-
cerned about the welfare of the cities |
owning such plants, the possible loss
that they might sustain, how the
bonded Indebtedness that might be
created should be paid, and so on.
j. F. Reed who is out against a state
income tax, seemed to be much con-
cerned about creating more tax ex-
empt property and on that score ar
gued against extending the service of
municipality owned plants 1t was ar
gued by proponents of the bill that
when the rates are materially lower |