The Sidney herald., 1957-11-21

Helena - In Montana's picture
of today, as we undertake to
project 1t into the future, there
is reason for optimism but also
cause for concern. Though not
as rapidly as the Pacific coast
states, Montana is growing in
population and should continue
to make steady gains. Thus we
can look ahead to a healthy
growth as fuller utilization of
u natural resources is translated
into increasing prosperity. This,
in general, is the reason for OPP
timism.
The cause for concern is that
unless there evolves in Montana
a more favorable economic eli
mate, new capital will be dis
couraged from coming into the
state and enterprises we already
have will be skeptical about ex-
banding. The attitude on taxation
will have an important effect on
whether Montana makes sub
stantial industrial and business
growth and thus is able to sup
port a substantially larger popu-
lation.
If it is the disposition of those
who make and administer Mon
tana's tax laws to encourage in
dustry and business, Montana will
make economic progress. But if
the prevailing attitude of legis-
lators and tax collectors is to
impose destructive levies on in
vested capital, Montana's growth
will be retarded.
Some states, particularly in the
South, offer tax concessions to
new industries until they can
develop to the point where taxes
are not a burden. Such conces-
sions are not permitted by the
Montana constitution, nor are
they necessarily desirable.
Tax concessions are not nearly
so much of an inducement to
industry as the feeling that tax
alton policies are reasonable, sta
BILE and not hostile. Conversely,
if the tendency in the state ap-
pears to be in the direction of
seeking ever more ways of asses
sing new or additional taxes,
people with millions of dollars to
invest in an enterprise are going
to be wary about coming into
that state.
AS an example there might be
cited Montana's timber industry,
which next to agriculture and
mineral extraction and refining
has become the states largest in
dustry. This is a resource of ire
mendous value to Montana's
economy and unless shackled by
unwise tax laws will progress
lively become a greater asset as
the years go on.
This industry, once confined
rather exclusively to the area
west Of the continental divide,
has in the last decade or so
spread significantly to the east.
LAUNDERING activities at Living
ston r illustrative of this. In
western Montana a pulp mill
has been built at Missoula. 9th
ers r in prospect, notably one
in Lincoln county. These enter
prises mean big investments -
and when a corporation puts
millions of dollars into a project,
that corporation wants assurance
that it is not going to be ham
strung by politicians with a zeal
for piling on taxes.
Just now when the outlook for
sound and permanent expansion
of Montana's timber industry is
so bright, there is evidence of a
desire by some people in official
position to tighten the tax screws.
apparently without much thought
as to the economic effects. Here
again we have the temptation to
kill the goose SO as to get all
the golden eggs at once.
For several years leading up
to last years Montana election
campaign, certain miscalculating
politicians tried to make political
hay by alleging that oil compan-
les were getting away with all
sorts of skullduggery because of
advantages in state oil leases. 1t
may be taken for granted that
oil companies do not for the mere