The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1932-12-30
MINING READJuSTmENTS
Are very NECESSARY
Optimism Born of Hope Doesn't Meet the Situations
of Taxes and Other Heavy Carrying Charges Impera-
tive in Iron Mining Industry of Minnesota.
(Skilling's Mining Review

(Skilling's Mining Review
Students Of the Times, as we ap-
proach the turn of the year, hold out
little promise of very greatly increased
Improvement for business and indust,
in 1888 as compared with 1892 This
puts chill ON the optimism born.
largely OF the gradual increase of ac-
tive plant capacity in the steel industry
during recent months, prior TO Thanks
giving. 1t brings us to a new contem-
plation of the iron ore industry OF
Lake Superior for the ensuing year. and
this suggests the apparent calculated
determination of the state of Mime
sofa and the municipalities IN which
the mining companies, operate TO tax
them out of existence
Forty-one state legislatures win be IN
session throughout the United States
this winter, and next spring a new ma
tiOnal administration viii take hold.
The question arises, viii the men who
exercise the taxing powers use them
intelhgently for the relief of taxpayers
or viii they wait until the taxpayers
quit paying taxes. It is the closeup
view of taxation that is now giving the
nation pause, and national confidence
may have to be restored once more.
The world is entering upon the fourth
year Of depression, and at the birth Of
the new year no metal is In real de-
mand except gold. Industry takes a
cynical view of the immediate future
because of the seeming impoSsibility OF
solving political problems. Taxes ON
the iron mining industry in Minnesota,
it is explained, cannot be reduced be-
cause it would interfere with the politi-
cal machinery.
There has been too much born OF
hope talk throughout the country for
the past year or two though often
seemingly Wen grounded, and those who
have adhered to it are the ones who
now are in the greatest difficulty. The
citizens of Minnesota, those in control
of local expenditures, fee owners and
the mine operators, all are confronted
with most serious situation, and IN
making their plans should no longer
in any way be guided by unjustified
optimism to do things that may ulti-
mately be directly against their own
interests. Never did a better time for
helpful cooperation exist than now IN
the iron ore districts of Minnesota.
Never was the cooperation more urgent.
The steel industry has been forced TO
drastic steps to protect itself. Burden
some investments, which involve heavy
carrying charges, are being scrutinized
with the utmost care, and IN many in
stances are being abandoned and writ
ten off. The tendency is to sacrifice
everything that involves heavy carrying
charges for the future and cannot be
turned into money earning capacity
soon. Numerous iron ore properties IN
Minnesota have been dropped during
this year, and unless carrying charges
of all kinds are not substantially re-
duced during the next II months this
state will witness greater cancellation
of ore leases than has ever occurred in
the history of the ranges. 1t should be
recalled that the iron mining companies
of Minnesota have protested the pro-
greSSive increase Of taxation of the
mineral properties, but continued 70
carry on in the hope Of relief ultimately
The steel industry is now with its back
against the wall, figuratively, and win
have to protect itself in the only ways
open to it. Iron ore properties viii
suffer in the general policy of trimming
sales. It is safe to say that the state
stands to suffer great loss ultimately.
unless it decides to give the mining in
dustry just break in the matter of
taxation.
An assessed valuation of S225 ,219, 048
was set Dec. II by the Minnesota Tax
Commission on unmined iron ore in this
state. The three counties affected are
st. Louis, Itasca and Grow Wing. There
is net decrease of only S426, $50 under
one year ago. The total, however,
represents boost of $8,3l3,2 40 by the
tax commission over the total assess
ment as returned by the county boards.
A total valuation of 1887 1872 was fixed
by the commission for stockpiled ore for
this year, a decrease of s798, 124 from
Uiic COli4ii1SSDOll , llSuItS Ol year ago.
The commission, however, increased the
total assessed valuation for stockpiles
as returned by the county boards by
81, 014,157. The county boards returned
a total of 81 $780, Iron ore in sfock-
pile in Minnesota May 1, 1892, totaled
15,015.622, which compared with IA
823, 087 tons on the same date in 1891.
The opening of the Illinois canal next
year will make 1t possible for steel mills
in the Chicago district to ship finished
products by water down the Mississippi
and that in turn, viii open to the Chi
cago district the iron ores OF Missouri
1t is too early to tell how important this
may be, but it will be pretty sure 70 take
from the Lake Superior iron mines,
rather than prove auxiliary to them
The Chicago district steel makes would
be able to ship finished steel down the
river and the barges, instead of re-
turning light, would bring back iron
ore.
Gets W0rkfarm Sentence.