The Wheeling daily register. [volume] (Wheeling, W. Va.) 1864-1878, 1864-12-30
OIL LEASES AND STAMPS.
Decision OF the C0mmi.siOner of In
termal Revenue.


Commissioner Lewis announces the
following important decision =
TREASURY DEPARTMENT, OFFICE OF
INTERNAL REVENUE, WASHINGTON, Dec
18th. lS64--Sir: Your letter of Decem-
ber 7, in relation to the stamp duty on
an "oil lease" so called, has been re-
ceived
The law makes the rent or rental
value" the test which determines the
amount OF the stamp duty, and of course
when the rent is fixed at a specified sum
in money, the stamp duty is easily deter
mined. ..
In the case Of the oil leSseeS there is,
however very rarely fixed rental value
in money agreed upon. In some lnstan-
Ces the lessee contracts to erect valuable
machinery or sink shafts, as well as to
pay a certain rate per gallon or barrel for
The oil produced, or deliver certain por-
ton of the oil instead of cash payments,
and in Others the rent is to be certain
portion of the oil or its value i'll money
the machinery i'll the first place to be-
come the property OF the lessor at the
end of the term.
In such cases the annual rent or rental
value can only be determined by estlma-
ton If the lease is OF new and untrled
lands. there is, of course, a possibility
that il may turn out To be worthless, SO
far a, the production Of oil is concerned,
but il will not be safe to assume that 1T
would always, or, perhaps, ever be so. IL
the lessee has erected valuable machin-
ery upon the premises, or made valuable
improvements which upon the termlna-
ton or surrender of the lease, become the
property Of the lessor, it is evident that
he has received portion OF the rent or
compensation for the use OF his land
agreed apon, although no oil is produced
The rental value cannot in such cases
be accurately determined, and OF course
the stamp duty can no more be accurate
IL calculated, and therefore parties III
such cases are advised to apply to the
Collector, under section l02 Of the act of
June 3Uth, to have the stamp duty deter
mined. which of course involves the cal
Iulations of the annual rental value.
If the land has been worked before
the lease is made, OF if the original lessee
in such case underlets or assigns his lease,
for portion Oh undivided interest In 1t
the Collector Will in such case have some
reliable data TO start upon; but In all
cases lie should estimate, from the best
affirmation he can get, the probable
average rental value, and of course IN
doing this he will have regard tohis own
knowledge of the premises, the lnforma-
tiOn derived from the parties, and others,
and the stipulations of the lease; and If
the lent is payable in oil, the average
market value of the oil is an element In
the calculation, and i'll cases where he is
III doubt, lie will of course receive such
instruction; as may be desired from this
Office
Such leases whether OF oil, coal or
mineral land, are held to be subject to
stamp duty as leases, and stamp as an
agreement or contract is. OF course, IN
sufficient
There are instances of farms III the
country which are leased upon shares"
Is It Is termed, aud it is Of course impos-
sole to determine at given date what
The farm will produce for the ensuing
year; the rental value must beestmated,
and the quantity as well as value of the
several products must become elements
Athe calculation, and yet no difficulty
SEEMS to have arisen in such cases
Inc calculation i'll the case of coal or
III lease may be more complicated, but
'ue Pllnelple is the same. .-
Very respectfully,
-. JOSEPH J. LEWIS, Commi ssioner,
va Henry Arnoux Esq No. $50 Nassau
Street, New York.
oSone of the trains of the New Haven
nOsu' @ saturday morning, was a live wO-
P'' PaA M a close pinebox, bein&ta from
nHga'e, VI, TO San Francisco Cal Her
ssne. sslle Is Mrs Lowe, and her disease On
met S~eetion IS of the brain, and to prot ect her
,i;u Gu' Tie noise incident to the jou rney,
!" '' mode T' OF transportation was resorted
ma.i Inc box was about three feet high,
3cco,n .nIee ieet wide, and long enough to
abs5 abO5Ilm'date the occupant Inside was
insiSa @ On Which the patient lay, and the
from f,ae was was muffed to prevent any noise
nad. reaching her. A Small aperture was
and and. IN III the side Of the- box 10 admit air,
al Sra. inc whole contrivance; which seemed
ratel;na st . severity, was the most consids-