The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1937-04-01
COMMUNICATED


following letter in explanation OF his
action on the subject in question. Inc
communication says:
The Ely Miner:
Some weeks ago Senator Farnand
introduced in the Senate, mining
lease bill. A companion bill was IN
troduced in the House by Representative
Raw Anderson and myself, which Is
House File No. 873. Shortly after these
bills were introduced some legislators
had sent information to various labor
organizations on the Range presenting
one side of the story. Some of these
organizations, instead of getting both
sides of the story, passed Judgment,
criticising the introduction of this bill.
This action was brought to my atten-
ton. Some of it was uncalled Tor as
it criticised the action taken by me on
a bill which I sincerely believe is for
the best interests of the working man,
the mine operative and all business men
on the Iron Range and throughout the
state. I am not going to take this OPP
portunity to criticise the organizations
in the stand they have taken, and yet
7 feel that as their Representative the
courtesy could have been shown me
which would enable me to explain my
reason for introducing this bill. This
letter may be somewhat lengthy, but
feel that the people especially on the
Iron Range, should have the informa-
ton first-hand, and then I am willing
to leave it up to them to decide whether
this bill has merits or not.
In 1892 the State leased certain OF
it's ore properties to mine operators fol
term of fifty years under conditions
stipulated in the leases. No provision
was made in these leases giving auth
ority to extend them and they termin-
ate five years hence or in 1912. These
leases cover what was once some OF
the States most valuable and pro-
ductiye iron mines. Unless authority Is
granted to enter into negotiations al
this time with present leaseholders as
to the extension of the leases as they
Ill 1ofl, dllS1 QUILL A1C5oSAe1SASAAA
are successful, situation is certain tt
develop which may prove decidedly
disturbing element to the communities
in which these mines are located, a.
well as result in serious losses to the
State for reasons which will be in
Dictated later.
The bill authorizes the Commissions
of Conservation, with certain safe
guards and restrictions recited in tht
bill, to authorize present operators tt
continue operations of properties GOV.
cred by their present leases until mer'
charitable deposits are fully removed
and as much as possible of the lear
merchantable ore absorbed or bene'
ficiated.
To have royalty paid on the weigh
of the concentrates resulting from thu
beneficiation of the lean merchantabl,
ore rather than on the crude, as nov
provided by law.
To continue the property on the ia:
rolls as long as possible.
To secure larger royalty per ton
of ore for the trust funds.
There are three mines in the Sixty
first Legislative District whose lease
expire in 1912. These mines are TIN
Missable Mountain and the Minnewa
at Virginia and the Leonidas at Eve
leth The Pool, Grant and Missab
Chief mines are located in the Sixtietl
District and their leases likewise eXpir
in 1912. The reserved tons of mer
charitable ore as of January l, 1887, il
these mines total 37,127 ,918 tons. TIL
reserved tons of lean ore as of this dat
is 18,1O2,314 tons. The amount of or
shipped from these mines in 1886 tota
4,858,857 tons The royalties paid OF
this ore in 1886 totalled 81 215, 1882.
Now let us go into some facts and U.s.
the Missabe Mountain mine at Virgini;
for example to decide whether it woult
be wise and advisable for this mine u
cease operations in 1912, or would it b.
better if it could be so arranged ane
agreed upon that this mine continue
operations for another twenty-five
years or more. The lease on the Mis-
Sabe Mountain mine expires on March
1, 1912. There are 1858, 500 tons OF
merchantable ore in this mine as OF
January l, 1887. The lean ore in this
mine as Of January 1, 1887, amounts to
12,270,892 tons. In 1886 there were
shipped from this mine LOOT 066 tons OF
ore and the royalty paid in 1886
amounted to $266, 1865. AS for tax
alton, the 1886 assessed valuation is
$5,411 $4,000. The 1886 ad valorem tax
paid amounted to $317, 1889. The Oc-
cupational tax, $4,000, and the Royal
ties tax estimated, $16,O00.00. 1t can be
seen from these figures that if the lease
on this mine is not renewed in 1912 this
mine will become flooded and there will
be no more work there for the labor
ing man. Consequently the business
man will suffer. The valuation of
property no doubt will decrease and a
serious condition will exist.
1t is my belief that if the lease on
this and other state owned mines can
be extended it is going to be for the
benefit of all people concerned. Surely
the laboring man should not object to
this.
Several amendments have been sug-
gested to be incorporated in the So
called mining lease bill, by some of the
legislators of the Iron Range. Person
ally, my belief is that these amend
ments have no place in this bill for
the reason that some of them I think
are unconstitutional and, secondly, that
this bill is only permissive or enabling
act.
One of the objections raised, and
there are several others, I am sure can
be threshed out very satisfactorily by
the Commissioner of Conservation. bv