The Ely miner. [volume] (Ely, Minn.) 1895-1986, 1937-03-11
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Editor The Ely Miner:

Failure of this session of the Min
nesota legislature to pass tax bill and
then a special session after pubic
opinion has had a chance to react TO
the failure Is perhaps way ouJ OF the
impossible condition at the state capitol.
The chastened administration and law
makers might then be able to think
economy and ignore the taboo against
sales taxes in any form.
Disguised local spending is one major
reason for the jam. Minority pressure
at home has loaded the member with
demands for spending by the state for
local affairs. Each must aid all the
other grabs to get his own recognized,
and he dare not go home without things
for his district. A general confession
of sin in, the form of renouncing these
local grabs at state money IS needed.
Another reason is the Authorization
that if we break all the dishes in the
house, we shall at once have a new and
better set than the old labeled cooper
ative commonwealth" Such minds, and
there are many on capitol hill, don't
want to save property from confiscation
and their resolve Is strengthened by the
way voters grabbed at their promises
at the expense of property in the cam
paign. Established departments ask
for ten million more than before; re-
lief demands five million more although
conditions have greatly improved; old
age assistance requires six million at
once; thirteen new commissions are
seriously pushed; and the governor feels
that we are so rich we can give state
employees a five-day week! No cuts
anywhere!
The strange condition shows up in
the House passing a crazy income tax
bill, knowing that it is crazy and de-
pending on the Senate to kill it. Our
strongest competitors for industries,
Illinois, Indiana and Ohio, levy no in
come tax at all on individuals. The
governors proposals for ore tax in
creases are similar play to historical
politics in disregard of competitive con-
ditions and employment needs on the
ranges.
Cuba, Brazil, Chile and Lapland have
become sources of high grade ore for
smelling on our seaboard. The Beth
lehem Steel corporation has turned to
Chile and some three years ago its
head, Charles Schwab, said: MY hope
is that eventually we shall have at
Sparrows' Point CMarylanO the great
est steel plant in the world" He also
offered reasons for turning from Min
ores have increased several fold and
there have been successive advances in
labor cost" With the present admin
istration favoring such lodging of
American labor costs and taxes, Min
nesotans have to watch the tax factor
to hold their ore business. We ought
to be making adjustments to encourage
use of low grade ores because more of
our labor is needed instead of helping
Schwab's un-American venture.
All of us face more taxes for state
purposes and the mining companies
should pay along with us to the point
where taxes cut down employment.
11OUnDly VIC SOdoC Sou1O SCG q ldI SS1
share of ore taxes paid if communities
on the Mesabi and Vermilion ranges
could be more normal in their public
spending. Contrary to common i'm
preston the state gets only little over
fifth of the ore taxes paid and local
bodies get the rest. In the twenty
years to 1885 the figures are seventy
nine million for the state to two hun
dred and ninety-four million for county
and local taxes.
Here are some figures which need
real explanation or adjustment to the
benefit of the state treasury: In 1885
per capita tax levy in Hibbing was
$3.50 while Mankato and Rochester of
similar size got along with $1245 and
$3.50 respectively. The little town of
Buhl spent $1O0.14 per resident. CHS
holm in the same levy needed 500 80
per capita while Owatonna raised $10.3s
1t cost Hibbing $210.61 in recent year
to keep child in school while Brain
erd needed only $76.22 and Austin of
similar size got along with $71.63.
Chisholm spent 10000 for each school
attendant. I recall back in 1888 re-
port that a minor public official in
Hibbing village recorder-was drawing
$500 month. A part of the state
seems to be practicing boom spending
in our worst depression.
A. B. GILBERT,