The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1933-09-15
PLENTY HOOEY
FOR RANGES
State Operation of Iron Mines
Under Receivership Termed
Political Hooey."

An article appearing in the st. Paul
Pioneer Press Of Saturday, September
9th, is looked upon as just political
hooey" in all parts Of the state among
thinking people and especially designed
for Arrowhead sectional consumption.
This talk has been broadcast by in
terested parties for the past several
weeks Politics is said TO be behind the
circulation of the "clap-trap" and ad-
governor who see in the statements
party possibilities but otherwise nom
sensical and practically impossible of
attainment.
The article in the Pioneers Press
headed the story with sReceivership,
Calling Of Troops, Urged if Iron Com
panieS Fail to Pay Taxes. Senator
Lommen Asks Governor to Use Drastic
Means to Force Settlement" and then
goes on to say:
Governor Olson was requested last
Friday by Senator George H. Lommen
of Eveleth to use drastic means" in
behalf of the state in the event mining
companies refuse to pay their November
tax settlement to the state and nor
thern Minnesota municipalities, total
ing about six million dollars.
Senator Lommen said he submitted
a report to the Governor. at the latter's
request, showing expenditures and fl
nances needed by fourteen municipali
ties on the Vermilion and Mesaba iron
ranges in st. Louis county.
Although paying the first half Of
their taxes in May, the larger mining
concerns threatened to withhold the
last half of the 1892 ad valorem and
royalties taxes, contending expendi-
lures of the municipalities. where the
companies pay IS per cent of the taxes,
are too high, setting up an excessive"
rate.
Senator Lommen, after a conference
with Governor Olson, said he asked the
chief executive to take steps to throw
the mining companies into receiver
ship" if the taxes are not paid by
November /.
Senator Lommen said he told the
chief executive the state had authority
TO operate the mines under receivership
or to nquidate the holdings to obtain
the taxes due.
Governor Olson also can use the
National Guard to prevent the mines
being worked or TO avoid trouble in
the event the state would continue the
mines under such receivership," Lom-
men asserted.
Governor Olson declined to comment
on the conference, but said he would
study the reports submitted" on fl
nances of the northern cities
Governor Olson viii use every means
at his command. regardless of how
drastic, to see that no suffering re-
suits in the event the mining COM
panies go through with their threat to
withhold the tax payments" Senator
Lommen said
"At a recent conference at Virginia,
Governor Olson stated that the Ques-
ton of compromising with the mining
companies on community levies for
next year is local problem with which
am not concerned, but so far as the
state is concerned, there will be no
compromise; the companies viii pay
the state tax 100 cents on the dollar.
Senator Lommen continued
In the event the tax strike is carried
out. have prepared and viii present
to the Governor petitions for the i'm
position and collection of approximately
s124. 686, 900 in back taxes.
The Governor has the power under
the law to appoint special assessor TO
impose taxes for each year omitted
1908 to 1890, during which time Se1
million tons of iron ore escaped tax
alton"