The Sauk Centre herald. (Sauk Centre, Stearns County, Minn.) 1886-current, 1937-01-14

mendations on problems such a.
water conservation, social security
and public welfare, taxation in its
relation to income, educational adj
ministration, public health facili-
ties, development of recreational
facilities, transportation, rural cleo
trification. public health and SAM
tation, and metropolitan and urban
planning. At the present time 1t Is
carrying on an agricultural land
debt survey and a thorough-going
study of the welfare needs of our
state for a period Of years.
I recommend that a state plan
ming board be created and supplied
with sufficient funds. I suggest
that this board be made up of cit
liens appointed by the Governor,
working without pay, with heads
Of state departments as ex-officio
members, and paid working staff
of experts and persons Of exper-
fence. The Board would act in a
purely advisory capacity, gathering
data and laying out plans to be
used as a basis for adoption Of pol
icjes and programs by the elected
representatives of the people.
I submit for your consideration
the following suggestions:
An increase in the occupational
fov ~ NAV oa~% ~, f;ffxy v>ov.
cent of the gross valuation of all
ores at the mouth of the mine,
eliminating all statutory deduc-
tons.
The present tax is levied on the
net value of ore at the mouth of
the mine, derived at by using the
mythical Lake Erie price of ore as
a base. This mythical value is fix
ed by the very firms who are to be
taxed. From this gross mythical
price, six statutory and nine nom
statutory deductions are made,
leaving a net valuation of about
one dollar and nineteen cents per
ton, upon which a six per cent oc-
cupational tax is levied.
7 recommend repeal Of those pro-
visions Of the income tax law which
give exemption to iron mining COM
panies.
Iron ore properties should be
revalued also for advalorem tax
purposes on the basis of the aver
age yearly price of basic pig iron
rather than the mythical Lake Erie
price and fee of twenty-five cents
per ton charged by the state for
weighing, testing, sampling and
grading iron ore, and service need
ed to protect the interests of the
state.
All townships in which mineral
veyed in conjunction with the
state. The present section and sub
divisional corners are established
by Oliver Iron Mining Company
monuments. Gross errors in sur
veys have come to light. These sur
veys involve all state mineral leas-
es from which extensive revenues
are derived.
Minnesota in 1892 issued a num-
Der of mineral leases for fifty year
periods, which stipulate that the
state receive royalty of twenty
five cents per ton mined. Efforts
unquestionably will be made to re-
new these leases under the same
favorable terms to the mine oper-
ators. Operators have been able to
lease valuable properties from the
state and suitcase them to other OPP
orators at very handsome profit
to themselves. The state should re-
ceive at least the same royalties in
leasing it's properties as is received
by private owners who lease these
properties to mine operators. Such
has not been the case in the past.
The three laws passed by the
1885 Legislature which further re-
drced the tax limitations affecting
the village and school district of
Hibbing and township of Stuntz
should be revealed, but proper leg
islation should be enacted to COM
pensate the property owners of
North Hibbing for damages which
they incurred because of mining
operations In that area.
I should like to say a word about
the recent Supreme Court decision
OF iron ore taxes. 1t has been trad
itional in this country that the judi
iciary never impose it's judgement
against the discretionary acts Of
administrative officers Of govern
ment. Yet in it's recent iron ore tax
decision, our Supreme Court wrote
into the law as a mandate spec
ific formula which our taxing au-
thorities are expected to follow. In
doing 50, the court, in my opinion,
overstepped it's authority and even
went so far as to pass legislation
Here we have a good example of
usurpation of power by the courts.
In conformity with the principle
OF taxation based upon ability and
capacity to pay-a theory to which
al the political parties in the last
election declared they subscribed
I shall submit bills for the follow
ing:
Increase in monies and credits
tax together with a change in the
method Of collection; increase in
the income tax in the higher
brackets; tax on utility company
franchises; increase in taxes on
public utilities, including railroads,
telephone companies, express COM
panies, and the like; increase in
estate, gifts and inheritance taxes,
and increase in taxes Of insurance
companies.
Tax experts who have studied
these proposals inform me that