Askov American. [volume] (Askov, Pine County, Minn.) 1914-current, 1942-10-15

1941?
| I wonder how many of us realize
how serious this matter really is.
Mining experts estimate that we have
left in Minnesota approximately
| 1900, 100000 tons of iron ore. At the
rate we are now mining ore, it will
be gone in about Is years. With re-
duced production after the war ii
can hardly last more than Is years.
Let us see to it that the state re-
ceives fair amount of taxes on this
ore while it is being mined, because
when gone, it can never be replaced
Let me make this situation plain.
Suppose the state of Minnesota let
you fix the assessed value of your
property. Let us assume you had
fixed that value at $4,000. Then the
state raised the tax rate from 10 to
| 1912 per cent. But now you lower
| the assessed value from $4,000 to
$4,000. In this way, you actually
pay less taxes with a higher tax rate.
This is exactly what the steel
corporation did. The so-called Lake
Erie price of Minnesota iron ore is
| fictitious price calculated and fixed
by the steel corporation. 1t is in
effect the value of the ore for tax
purposes, but the steel corporation,
unlike the rest of us, fixes the value
of its ore for purposes of the occu-
patton tax. When the Legislature
raised the tax rate the steel cor
poration lowered the taxable basis of
its iron ore so cents ton and thus
reduced its own taxes 2712 per cent.
This is an indefensible method of
procedure The value of iron ore for
tax purposes should be fixed by the
State of Minnesota and not by COR
porations who are to pay the tax.
The tax reduction of 271s per cent
which the steel corporation has Sc
cured under Governor Stassen's ad-
ministration is without justification.
1t cannot be justified on the ground
of an increase in the cost of mining
ore for in 1887 it cost $1.9O to mine,
transport and market ton of ore.
In 1941 it cost $1.91, an increase of
only one cent a ton. This slight in
crease of one cent in the cost of min
ing does not justify decrease of five
cents per ton in taxes.
1t cannot be justified as a relief
measure because the steel corpora
fsor, xooInI ro1tAf Tho
of the United States Steel Corporation
in 1887 and 1941 furnish no excuse
for tax reduction because net earn
ings in 1941 were larger, over 80
per cent larger, than in 1887.
The 271a per cent tax reduction,
accomplished under the Stassen adj
miniStration, was done in way
designed to confuse and befuddle our
people. 1t was maneuver to fool
the people.
On the basis of the 1887 iron ore
occupation tax, the Stassen admin
istration permitted the mining COM
panies in 1941 to take 100000
tons of iron ore out of this state
without paying one penny of tax.
When the governor gets all through
with his explaining, the fact will
stand that the steel trust received
reduction in their occupation tax
on iron ore of 271a per cent, which
lost to the state of Minnesota over
SO 100000 for 1941 alone.
The iron ore occupation tax is allo-
Gated so per cent to the state rev.
enue fund, 40 per cent to the per-
manent school fund for state aids,
and 10 per cent to the permanent
University fund. Therefore it is of
vital concern to every property owner
and taxpayer in Minnesota that ade-
quate taxes are collected on the min
ing of this great natural resource
of iron ore while We still have it.
The governor may say: How could
1 help it if the Lake Erie price was
lowered?
Had the governor been true and
devoted to the interests of the peo-
pie he would have told the mining
companies that if they arbitrarily
lowered the Lake Erie price so as to
deprive the taxpayers of Minnesota
millions of dollars in taxes, he would
call the Legislature into session to
deal with the situation. Then the
Lake Erie price would have stayed
where it belonged. But the governor
did no such thing. He never even
told the people what was happening.
He kept silent and rode along.
The Legislature fixed the rate of
tax at 1O1a per cent. 1t did its duty.
| If Governor Stassen had been alert
to protect the peoples interest and
not permitted the manipulation of
what is in effect the assessment
value of iron ore, no tax reduction
would have resulted. The respon-
sibility rests on Mr.. Stassen.
The state of Minnesota is free to
fv q foir va1lIe for fay nllrnOSeS nm