The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1933-05-19

to allow the Oliver Iron Mining Com
pany and other companies to operate
their mines without subjecting them
selves to confiscatory taxes, the Oliver
interests through its president on Mon
day took the bull by the horns" SC
to speak, and issued the final word on
the matter of tax payments.
Court action to contest the alleged
taxation of iron ore properties of the
Oliver Iron Mining company, largest
taxpayers in st. Louis county, will be
instituted next year.
This was revealed Monday with the
announcement Of a letter received by
the county board from LIE Roy Salsich
president of the company, in which he
said the taxes of more than SIS 900 OOO
for the last half of this year will not be
paid on Oct. 81.
The first half of the taxes, the same
amount, will be paid on May 81 next,
it was announced. The intentions of
the independent mining companies have
not been announced, but it is believed
that they will cooperate in efforts to
bring about reduction in taxes.
No Bids on Bonds
This development followed the re-
ceipt of no bids on the 81 500 900 poor
relief bond issue, due Monday. Bond
buyers informed the county board that
uncertainty as to tax collections,
coupled with an unfavorable bond mar
ket. prevented them from attempting
to distribute a bond issue of that size
at this time. The county board decided
to delay any further call for bids until
after June /.
In informing the board of the mining
company's intention, Mr.. Salsich
pointed to efforts to secure reduction
in taxable valuation, all of which have
been unsuccessful.
Mr.. Salsich's letter to the county
board follows:
"At conference of the county board
and others on April 81, 1893. repre-
sentative of the Oliver Iron Mining
company was asked whether the COM
pany would pay on or before May 81
next, the first half of the 1892 real
estate taxes.
"As you know, considerable effort has
been put forth by this company tc
secure reductions in the valuation OF
its mineral properties for taxation pur-
poses and in the taxes levied agains,
such properties. This relief has been
urged before assessors, boards of re-
view, boards of equalization, municipal
councils, school boards, the Minnesota
tax commission and the state legisla-
ture and its tax committees.
No Real" Reduction
These efforts have not produced any
substantial reduction in the valuation
of mineral property or in the taxes
paid thereon, although in recent years
there has been marked reduction in
the assessed valuation of other classes
of property in Minnesota. Convinced
that the valuation of our mineral
properties in st. Louis county and the
taxes levied thereon are excessive, this
company has decided to contest such
valuations and such taxes in the courts.
at is, nevertheless, our intention to
pay in full the first half of our. st.
Louis county real estate taxes due and
payable not later than May 81, 1898,
but to withhold payment of the Sec
ond half Of such taxes due and payable
not later than Oct. 81, 1888. This is
the only way to bring about such a
contest wherein at the proper time ap-
propriate defenses may be interposed
in the delinquent tax proceedings
brought to enforce payment of these
taxes.
Trusting that this makes clear the
position of the Oliver Iron Mining COM
pany and regretting that we have been
compelled to adopt such a course. I
am, (SigneO lie Roy Salsich, presi-
dent"
The closing of the mines here on the
first Of the month was heavy blow
to this community. The decision ar
rived at by the company and made
public on Monday further complexities
matters here and In other range COM
munities.
The range towns will be hit the
hardest owing to the fact that the
larger part of their income comes from
mine taxation. Seventy-one per cent
of tax monies paid into the county
come from ore companies, it was
pointed out at the session of the county
commissioners on Monday, where plans
were talked over to cope with the
situation. According to Commissioner
Pete. chairman of the board, the board
has discussed the matter ana viii CO.
operate in bringing about fair and
equitable adjustment of the situation.
From developments Monday it was
indicated that Governor Olson viii be
called upon. The state receives large
share of the taxes paid by the mining
companies and Is therefore an in
terested party.
The company would have gone fur
ther and made things much worse, If
that is possible, by refusing to pay the
first half. President Salsich stated that
preliminary Of the court action and to
give all interested chance, the May
taxes would be paid.
Unless some kind Of an adjustment
can be arrived at In the meantime, the
company viii not pay the last half of
1892 taxes due in October. This win
throw the matter into court. Court
action viii not begin until Judgment is
filed against the ore mining firms and
answers are submitted later in the
year. Such procedure would take from
u to is months and would necessitate