INTERNATIONAL FALLS PRESS. 6000 CITIZENS MEETING HLED ON TAX MATTERS up to this time, we have not had a penny out of. iNow, then, the fact of are directors and the rest are Eastern and foreign men. We are two out the matter is that before the wheels were turned, these taxes were originally of seven. They become very much displeased, and when I suggested my levied, and for months and months and months every balance sheet plans for the further development last year, which called for the extension came out in red ink,, and we had no sooner got to the point when we of our plant to this extent: Two more paper machines/ on this side (Continued from Page 1.) thought we would make some money when our beloved President, Mr. Taft, of the river, adding 60 per cent, to our capacity and one machine at Fort took the notion that he wanted to spring on the country the reciprocity expend Frances. They said they would never consent to another cent it will be a long time, speaking of a matter of years, before our farm tariff, which took the duty entirely off all paper coming into this country in International Falls until this tax situation changed. The result was products and our agricultural development can supply even the population from Canada. What was the result? The result was that nany mills that instead of building one machine in Fort Frances, we fixed up our we have here at the present time, to say nothing of the growth for which were built in Canada, and just when we could see our figures showing on arrangements with our Canadian brothers and put in a plant over there, we all hope. the right side, the Canadian paper rushed! in here on us and down went which is now under construction, and is 66 per cent, as large as thej one I have outlined the proposition as forcibly as I can, to show the the price, two, three, and finally five dollars per ton, where it is to-day. here, and a fiat rate valuation of $25,000. Now, our taxes over there, fallacy of any longer continuing the fight, which seems to me cannot help The whole proposition has been a struggle, without a ray of sunshine under the present levy, will be abut $625 a year. Just think of the comparison. but only retard the development of the entire commonwealth of Koochiching with nothing but work and the investment of more and more money. There is no tax over there on personal property, so that while County. When I formulated these plans, years ago, I made the prediction that we are paying in Koochiching County upwards of $100,000 a year, including Chairman: The matter is now open for discussion. this would be the biggest paper manufacturing center on thisj continent: our timber land, which the schedule read to-day does not include, our Dr. F. Swinnerton was then called upon who briefly likened the Gr. I mean this point and across the river. We finally got along to the point taxes on the other side of the river on any plant we might build, would present differences of opinion in regard to what should be done with the where we began to have assessments levied, as has been related: The not exceed $1,000 a year. Take this for ten years and see what it would Power company in the matter of taxation to the well known fable of the question of taxes had never dawned on me before, in fact I had never given mean. old man, his son and the ass, which resulted in great loss to the two, who ibe question of taxation a moment of thought. I believed that when the Now, the situation is this as to the tariff: There is a great market tried to please everybody instead of following the most sensible and natural time came to make an assessment that you would come around and ask, for paper, whether book, kraft, wrapping, etc in the Canadian Northwest. way of doing things. He also very forcibly showed how that practically "What ought we put your plant down at and that a satisfactory figure This is the kind of paper we can make out of poplar, tamarack, jack pine, all the trouble that had arisen in local affairs had been stirred up would be agreed upon without any question or trouble. We had inquired birch, etc., and, there is going to be a bigger market there every year. The by a certain few who were always on the wrong side of things and who as to the valuation of the largest paper mills in the United States to see tariff prohibits us from shipping this paper into that country at all. We stood for anything but progress, and an advanced civilization. In closing, about what they had been taxed at, and found that one of the largest mills are shipping a little newsprint to Winnipeg, and are paying $6 per ton to the doctor suggested that if these certain few stil persisted in their in the United States was then paying on a valuation of $250,000. One get it across this imaginary line. On this side the situation is exactly opposition he had no better method of getting rid of them than! the one day someone said to me: "They are going to assess your plant at $1,000,000." reverse. If the conditions had originally been as they are to-day, our used by the honey bees who stung to death the snail which placed itself That was before we had ever turned a wheel, and I said I didn't plans would have all been re-constructed. To-day you can ship paper in the entrance to the hive, who would neither work himself nor let anyone believe it. Finally the City Board invited me to call on them and the made out of fee lands wood, where the price is under four cents a pound, else. discussion revealed the fact that they were intending to impose a taxation free. Now, what have you got? The situation is just this: The Canadian Chairman: In order that we will not get away from the sense of upon us, which at our rate of taxation, would be an extremely hard burden mills are enjoying both their own market, and that of the United this meeting, will say that I understand that the Business Men's Committee to overcome. Then 1 said to them, you let this matter rest and I will States, whereas the mills on this side have the United States market only. have a resolution to submit, and I think Mr. Nord is the chairman of the find out what the other paper mills in this (State are paying, and what And now I want to say this when you market one hundred tons daily of committee, and would like to hear from him. their valuation is. I said they ought not to put the valuation at over book paper and kraft, paper, which is very different from news, you are (Mr. Nord: I have a resolution here that I would like to hear read to $300,000. Pursuant to that understanding, I went out and got the informs putting yourself to a great task to find a market to absorb that amount the people assembled here. This question has been threshed out for tion as to our nearby neighbors. Now, the combined capacity of the ether of paper. Mr. Houpt came here from Buffalo and he told me that he preferred nearly a week or ten days. It was going when I first come up 1 ere and four mills in the State of Minnesota! is greater than our single capacity. to be under the stars and stripes even on a more restricted market, died out last spring. It has recently been revived and I hope that it will At that time I learned that the combined valuation of the others was and, therefore, I want this matter fixed up. He stated further that he never have to come iup again. We are all aware that a certain few men $267,549, and I suggested $300,000 as being the proper sum. We could would join me on the condition that I would join him uu building these came up here from the East and promised a large paper mill factory at not agree. I went to the County Board and, after discussing the facts mills. Now, if this mttter cannot be adjusted, not only on account of Mr. this point. They decided on this location, that is, either on this side of quite thoroughly, the Chairman said to me: "Inasmuch as there has been Houpt and two or three of his friends who are coming up here to joinus, the river or on the other side of the river. They prefer to come on this such a wide difference of opinion in this matter, we cannot put the valuation but on account of my own directors, who are foreigners and Eastern men, side of the river providing everything is equal, b)Qt this tax question staring at $300,000 and stand the criticism that may be thrown at us, and I I can never spend another dollar: In fact they almost stopped me from us in the face and its unsettled condition, it is safe to say that it is not am going to recommend that if you will stand a valuation of $400,000, that building the sawmill here, and I took pains to go to the Tax Commission equal, especially as the people on the other side of the river have gone on that will be the amount we will fix it at." That was how it happened to and told them that if there was any danger of having this trouble in build, record to give this new concern a flat rate of taxation of 315,000 for twentyfive be fixed at that amount. I then agreed we would make no protest on that ing this sawmill, that I would go across the river with it. The total years. Now, you just figure that up in twenty-five years and you valuation. Now, then, just a handful of men made a protest to the State amount of money to be paid out to the County Treasurer this year, if this will find that it will amount to thousands of dollars which the concern Tax Commission, and I understand that under the law, they are compelled arrangement goes through, will be $82,198 besides that taxes on upwards will save. Now, we surely want it on this side of the river. Personally, to make an appraisal of property when protests are made. It is a well of 150,000 acres of land. Now, is there a man in the room that would I would like to see it go on the other side of the river, but I know that known fact that very few manufacturing institutions are taxed upon the dare go up against that kind of a proposition if that was the only expense the people tn this side want it here also that the company prefer to put appraised value. The law says that you must be taxed upon a reasonable account in connection with it? Our lumber business up to date has never it here. Therefore, if this company is willing io pay taxes on a reasonable value of the property: Well, that means 100 per cent. Now, if that law seen anything but red ink figures, and as high as $50,000 a year in red. basis, we should urge those who have the power, to go with us and settle was lived up to the letter by everybody, the rate of taxation would be very iNow, if there were no other argumetns at all, but the first fact I mentioned, it and forever end this strife. low, unless the money was squandered by extravagant disbursements by that we opened up this country, we would be entitled to more thai* certain gentleman came up here from Joplin, Mo., not more than a A counties and cities or by the State. Well, as I say, a handful of men went fair consideration, and by that I mean on a basis with our competitors: week ago, with a view to investing tens of thousands of dollars, yes, I down, who represented a very small proportion of the interests of this Second, because we have not gotten onto our feet and had anything out might say hundreds of thousands. He looked over both of the towns, city or county, and made that protest, and what the Tax Commission did of it. When Mr. Ross came here to be our Superintendent, the question! and was very much taken up with them. He said: "You have a town following that protest is known to all of you. They were compelled to came up one day, and I said to him: "What is the tax valuation on the here that will have in twenty-five years, a population of nearly fifty thousand make the appraisal. Now, if you could get the same kind of a hand-Ul St. Croix Paper mill plant at Woodland, Me.?" There is a plant practically people, that is on both sides of the river. I came from a town that of men in every town to go after every manufacturing industry, you would identical with oursi and costs as much money, if not a little more. twenty-five years ago had only a population of four or five thousand and see a peculiar revision of the valuation of the manufacturing plants in tliis Their valuation runs along year in and year out at $250,000. When Mr. to-day it has forty thousand, and at that time it didn't have anywhere near State. Last year when we went before the city board of equalization Houpt was here the other day, he told me of a number of mills where the the natural resources and prospects that you have here to-day. I am and I presented to them the revised figures of all the other four paper mill taxable valuation on plants as big as ours, some larger and some smaller, going to take these options under consideration—I am going to await the plants inthe State of Minnesota, those valuations aggregated $341,098, and where none of them run over $300,000. These are the mills we are competing settlement of the tax matter now under consideration. If those matters the City Board said to me, if you will furnish us the exact figures of your with. The day before yesterday he telephoned me from Wasau, are settled I intend to come up here and invest my money.'' cost, if it is too far out of the way, we will accepta your views on this where the Marathon Paper (Mills company have their plant. They built I think it is best for all concerned in this town and throughout the subject. Now, when my good friend, Dr. Withrow, says that if they could their mill at the same time as we built ours, although they got theirs county, that this question be settled for once and for all on a reasonable only get at the actual cost, they could determine whether or not the figures runn'ng a little sooner than we did. They spent just a little under three basis. Similar plants to this one are taxed on a valuation oft one-third were too high. They did get at the actual cost, and how did they get it? million dollars. Their tax rate is 34 mills and they are paying a total on of what this one is willing to accept. Now, that is a whole lot that Our foreign directors require each year a complete expert audit of the valuation of $200,004), or a tax of $6,800 per year. shows that this company is giving in considerable. books. That was' done. Everything wa(S open and above board. I Now, all of these things affect men coming into a place to establish an Therefore, I have a resolution here that I would like to present to the never make a statement I cannot prove. Now, then, the trouble makers industry. If you "carry out the letter of the law and tax the property at Chairman for someone to read. I hope that after this is read that yon continued their work and they went before the County Board, and there its reasonable value, that means 100 per cent., why, you couldn't Iive» in will all agree with its contents and that it will be accepted. was an arbitrary and illegal advance made that could not be sustained in International Falls or Koochiching county with any kind of a plant. Your Judge Langland thereupon read said resolution to the meeting, as any court on earth. They made a flat increase in the assessment on all competitors are not doing it anywhere in this country nor in the State requested by the Chairman. property in International Falls, both real and personal, of fifty per cent. of 'Minnesota. A motion was then made and seconded to bring the resolution before in the outside district fifty per cent, on the personal property only. Well, Now, as to Mr. Wilson's statement that this is the natural place for the house for a vote, and thereupon a general discussion was had in which now, everybody knows that there is a certain rule of taxation for a horse, these industries and that they cannot be kept away, I have only this to Messrs. Wilson, Nord and Dr. Withrow took part. a piano, etc., the kind of personal property the homesteader owns, and if say: The manufacture of book and kraft paper don't require any power (Mr. E. W. Backus: Mr. Chairman, Gentlemen: I suppose a am in a they undertook to raise it fifty per cent, they could not do it because what, for grinding purposes, and that is where we use the) power to make groundwood. position to give more nearly the exact facts in regard to some of these ever the fixed valuation is under the ruling of the Commission would have The only power needed is the power to propel the machines, and, questions which have been under discussion, than anyone else in the room. to be maintained. In other words, if a homesteader had four horses, and therefore, the amount of power is so light—so light in fact that a man Now, to start with, I think every man in the room with the exception of the horse valuation was $30, and you undertook to make a raise of fifty per could establish a plant at Bedmidji where you can get the wood justr as the honored guests we have here with us from St. Paul, namely, the State cent, and increase the amount to $45, it would not stand. I could go into cheaply—that kind of wood, and he could get refuse enough there to propel Tax Commission, is familiar with the history of this development from that question and cover it more thoroughly, but it is not necessary. At those engines by putting in a boiler plant—so, don't ever make the mistake start to finish, and, therefore, I will only very briefly go intq that question the time the County Board took this arbitrary action, we asked them to defer in thinking that the other fellow is coming in here and that you cannot for the benefit of our guests. final action upon the matter until we could submit to them some figures. keep him out. The fact that Mr. Houpt is coming here with me has not Nineteen years ago this month, I organized the company which started At a great deal of expense we hired experts to go through the State and changed my attitude on this question. In fact I said only last night, that the building of the Minnesota & International railway from Brainerd north, appraise manufacturing plants. I have already told you what the result regardless of a new industry coming in here this proposed settlement is and it was a hard fight all the way through from beginning to end. International wajs as to the other four mills in the State. Now, based on their appraised fair and should' be made: At the same time it happens that the other Falls at that time was the objective joint of that railroad. It value the highest was 10 per cent., 9% per cent,, 734 per cent and fellow comes along and it dovetails in together. I am sure that the stand has taken all these years to get here and get just barely going, and during per cent. Now, there is another thing in the case of these mills, the IV2 I am taking is a benefit to International Falls. If we had agreed upon a that entire period I have not known at any time whether I had as much rates of taxation are all very much lower than in this county. Our rate valuation of $1,000,000 in order to be generous if we could have done it, money as when I started or not. A great many times there have been last year—Judge Langland made a little mistake in reading the resolution and then you wanted a match factory, kraft or book mill from anybody else, changes in conditions sometimes1 paics have been on, and during other —was 53.76 mills. That is going some. Some of the rates in counties they would have said: "On your basis of taxation we don't want to come periods times have been good, but it has been a tremendous struggle, and in which these other mills are located are less than half that rate. Now, here." It has not been a fight to make this one point it has been a fight I hope it wont seem as if I were throwing boquets at myself when I say when you consider we are competing with other mills for business, not to get a proper basis to start on so that people could be induced to come that if it had not been for me, this gathering would, not be here to-day, only in Minnestoa, but in tMaine, iNew York, New Hampshire, Michigan, here with manufacturing enterprises. If they are going to be taxed out and this northern country would not be any nearer being opened up than Wisconsin and also in Canada where they don't pay any taxes, it is a of existence they will not come. it was at that period. I came here overland at that time, as jthis point serious question. When our wood gets into our mill it is pretty expensive. Mr. Bennett: I make a motion that the vote now being taken upon was two hundred miles from the nearest railroad, and what has happened? You would be surpirsed at what it costs us. Whatever our advantages the resolution as read by Judge Langland so that we may find out whether We can go out and in from here on several different railroads in Pullman are against other mills in the United States, that advantage is largely it shall be accepted or not. sleepers to-day, and on general principles I think that this company, of offset from the fact that all of the material that we use, like sulphur, clay, This motion was seconded and the Chairman thereupon requested that which I am the head, at present at least, ought to have a little more than lime, wires, felts, etc., are shipped in here at very much higher freight all those in favor of accepting said resolution to raise their right hands, fair consideration, as considered by some people: Why? Because it rates than theirs, and, therefore, at a. very much higher cost. Our sulphur and then requested all those not in favor of the resolution to rais© their takes a lot of energy, a lot of nerve and a lot of money to go up against costs us five dollars more per ton than it does our competitors in the East. left hands. that kind of a proposition. Men like Jim Hill, who wanted to wait until You say the location is good because of the water-power and proximity to The Chairman thereupon declared the motion as having been unanimously the time came that they could do it themselves, said it would never pay, the wood: When you have said that you have said it all: The rest is a accepted. and up to date it has not and perhaps they were right. Nevertheless, this counter claim, and the net advantage is very slight indeed. country has been opened up and there is going to be a chance for someone iMi\ Backus: I understand that there have been petitions circulated Someone asked the question of Mr. Nord: "How were the other manufacturing to benefit thereby. Now, the first beneficiary is the State of Minnesota in the outlying districts, protesting against the action of this meeting. If plants in this State rated?" I have three pages of them here, that is true, I think it very unfair because it would have been a very easy itself. In this County alone they had and perhaps now have a million and the highest on the list is '29 per cent. Now, then, we don't make any a*res of land and I venture to say that that land would have remained matter for the other side of the question to have gotten petitioners galore bones about having the State Board of Equalization know to a penny what I from the outlying districts. I want to make that statement because there without there being able to sell an acre of it at fifty cents, or even the exact investment is, and we think we treated the appraisers that came have heard that such was the case. twenty-five cents per acre, if these roads had not come up here. Take th© from the State Commission with every consideration, in that respect. We Motion was thereupon made and seconded that the meeting adjourn. Canadian Northern, at the time the McKenzie-Mann people bought that could have made it hard for them, but when they came to see me Isaid: Immediately after adjournment a joint meeting of the County Commissioners, little road to the east of us here, was planning to run way round to the "What do you want?" We. even furnished them our plans, blue prints, the city council and the members of the State Tax Commission north and up to Winnipeg. They had another survey made that ran many schedule and every item that was wanted. Did that indicate that we were' was called to order by Chairman Wm. Durrin of the county board. miles north of here. The road into Duluth from here would not have trying to hide anything? I venture to say that they have the blue prints 'Mir. Durrin stated that the purpose of the meeting was to see what to-day—I don't know that they were ever returned, and they are welcome come here if it had not been for these promised developments. The M. could be done with the tax question between the M. & O. Power company to them. When they came bacak the second time to get ready for( the & I. road, in which I still own my interest the road we have built from and the county. He then asked the members of the Tax Commission if trial, I furnished all the information that they wanted. There was absolutely anything could be done about it. here to Loman with its prospective extensions to the prairies in the west no disposition to cover up anything or to hide anything. Now, I One of the members of the commission said that he did not see that and the road that we have started and built twentyr miles of, just south don't doubt but what this matter has come to a head a little sooner than anything could be done with it as the matter was in the hands of the court. of Little Fork in the direction of Duluth, would also not have been here. it naturally would have. When I was coming up here from Minneapolis 'Mr Durrin then asked "What was the use of their coming up here if a few days ago I met one of my neighbors and he got to talking about nothing could be done?" Now, all of these railways have brought into the market^ not only the this old tax matter. He said we ought to get it settled and get it out of State land, but the Government lands and the homesteader's lands. Now, Whereupon one of the members of the commission said that "Provided the way. I told him I was making a special trip for the very purpose of the matter was taken out of the court, it would then come before them that is a benefit to the entire northern part of the State, if not the entirei ascertaining if there was going to be a disposition on'the part of the busi. as a Tax Commission for review, and that in case this was done they State and the United States. Now, Idon't care tosay more in that direction, ness people of International Falls to show the proper spirit to some friends would be pleased to give it their most careful consideration wjth a view of mine whom I thought I could interest'to come here to invest money and but I do claim that if there were no other reasons than these, I think to adjusting the matter. He also said that "he believed that he was become part of the company. That no doubt brought the question on we are entitled to more than ordinary consideration here to-day not only not betraying any confidence when he stated that the Attorney-General's more -quickly than it would' have come otherwise. office was in favor of seeing the matter settled. for the past benefits, but for the future, because we not only started the After this controversyr'arose, our directors became very much disgruntled. Alter a little informal discussion of the matter' the meeting then developments, but we have put our own money into the industries, which Our board is made up of seven members. Mr. Brooks and I adjourned.