The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-03-03
our REvENuE|
The Liquid Treasures of
the United States.
PETROLEUM AS A SOUkCE OF REVENUE.
Six Millions to be Derived from Refined
Petroleum Alone.
GOOD NEWS FOR POOR DIGGERS
->~>~~~>~---~>>>>>>>->
NO TAX ON CRUDE OIL.
The Supply Of Oil Always Sufficient for
the Wants Of the Country.
INTERESTING STATISTICS.
&c. &c. &c.
GOOD NEWS FOR POOR DIGGERS.
The Supply Of Oil Always Sufficient for
the Wants Of the Country.
INTERESTING STATISTICS.
&c. &c. &c.

&c. &c. &c.
Report OF the United states Revenu.
Commission ON Petroleum = sourc.
OF National Revenue.
OFFICE UNITED STATES REVENUE COMMISSION
February, 1865 !
Hon. HUGH MCCUILooH, Secretary of the Treasury
sIR-By the act entitled can act to provide Interna
Revenue to support the and to pay nteres
the public debt" approved July 1, 1862 duty wa
imposed con coal illuminating OIL refined produced "
the distillation Of coal, asphatum, shale, peat re
troleum rock OIL and all other bitumnous substances
used for like purposes, ten cents per gallon PROVIDE
that such OIL refined and produced by the dstiaticn
coal exclusively, shall be subject to pay duty OF ep
cents per gallon, anything in this act to the contrary
notwithstanding" These duties we're to be levied
collected and paid such Of said oils from aftn
the LIST day Of August, 1862, should be produced and
sold, or be manufactured or made and sold,
for consumption or for delivery to others than agents
the manufacturer producer within the United Stats
Territories thereof When exported allowance 81
drawback was given of the amount of the duties paid
This act took effect September !, 1862.
BY the act OF June 80 1854, in lieu OF the
former duties, duties were imposed ION
and benzoe, produced by the dsa,ion Of coal aspnai
tum shale peat, petroleum or rock oil. and all othe
buminous substances used for like purposes, duty
twenty cents per gallon: Provided that such Oil
fined and produced by the distllaion Of COAL asphaun
sbale exclusively shall be subject TO pay duty OF
withsandng And provided Also that uaph.ha Of spcas
gravity exceeding eighty degrees according 70 Beaume
hydrometer and OF the kind usually known as gasoline
shall be subject 10 tax Of five per centum I'd vaorcm
By the act Of March 3, 1865, the same provision
reenacted except that the specific gravity Of gasoline
seventy degrees Beaum6 and ''dstate designated
xt after naphtha, as one Of the products subject
the duty Of . ~. provided
there should be levied, collected and paid all crud
petroleum or rock oil that might be produced and sold
or removed for consumption or SALE duty Of one doa
each and every barrel Of not than forty five gal
lons and all petroleum rock oil that might be in pos
day when the act would take effect should be held ans
treated as If produced on that day.
By the act Of June 80 1884 drawback OF the amoun
Of duties paid was allowed upon all Of said products
except refined coal OIL naphtha, benzine or benzoe b.
the act Of March g. 1885, drawback OF the amount
cept crude petroleum rock oil, refined coal OIL nsph
tha benzne benzole. The last act took effect April
'iDistiIlate'' is general term, and means any nui,
produced BY distillaton Of the substances named II
more particularly applied by reners to the distilled o.
Naphtha lie the first product Of the distlIation.
(The Commissioners proceed To show the products
The receipts OF revenue from petroleum and coal oil
&C., have been as follows -
1868, for ten months -.......-........... $6ze,96
1885, on crude for three months 49,. aaa,54s
1865, on refined. .ao&7,2l3
- a,27s,7S
1866, for six months, on crude. =. 81. o47o 43
1906, for six month, on refined, &C.. 2,6l3o3s
or the receipts for 1885, only Sos pos 90 were fron
oils distilled from Goals and shales amounting 10 1900
barrels OF forty gallons each. The rest Of the receipts
So $50, 100 TO- from petroleum and refined oil mad
from petroleum. excepting an Insignificant sum receives
from naphtha and benzole.
IL will be expected Of the commission TO give
count Of the development Of product recently
known TO our commerce, and now Of such vast import
rTe oners here g,ve . bistorv
petroleum, its discovery In this country, &c. all
which has heretofore appeared in the columns Of tn
HERALD
Tho advance in the price OF gold and exchange which
began In the spring OF 1862 and continued until reaches
ricd up prices to point at which the oil would pay
expenses Of transportation, and give the Of IN
well from three to seven dollars, ana at time
ten dollars per barrel The wells which few month
before we're worthless owing TO tho low price OF OIL be
came or immense value.
Speculation in oil lands and tho organization af o.
companies Immediately followed TO enormous extent
Lands before almost vaucicss sold 10 spectator
At fabulous prices and were again rcsod TO other
laiors at prices still higher or revaued by IN
holders at immense advance and used by them th
formation Of joint stock companies, pretended com
pancs by means Of which the stock sold In parcel
wherever the spirit OF speculation had been sufficiently
excited by the newspaper reports OF sudden fortune
purpose. Many OF these companies fraudulent an,
only cntailed loss and disappointment those
induced to take stock In them Many others, perhsp
tho largest proportion were honestly organized, and
Quoted with integrity.
The amount OF capital thus Withdrawn from other pur
suits or the savings OF the community and applied
the purchase and development OF oil territory cannot
Accurately estimated but supposed 10 exceed hun
The tide OF oil speculation, or the coil fever as
was called, was at lis height when the mastery com
binations OF Grant and Sherman, using the immens
cutive, brought the rebellion 70 . sudden close and
stored to something like its real value the national
p Is o ~ esn. ON S
dollar Gold, which, compared with the currency. bs'
been worth over two hundred and my per cent deeline
70 enc hundred and thirty The returns from shpment
Of petroleum and the currency price at home were
duced 70 srcat extent and The cost Of transportation
and other expenses continued with little chang
the effect was again disastrous upon the business
great hood In OIL creek also destroyed much oil and re
duced the product The war tax OF one dollar pe
ist Of April, 1885, still further depressed the bus
ness and disheartened those engaged IN u The net
tous character and utter worthcsness Of many Of N
oil companies and the dsappointmens experienced By
most OF them, becoming known TO the puoic added "
In tho meantime prices bcganIte advance abroad
owing the increasing demand and diminished supply
An immense number OF wells were sunk BY companle
organized the fall and winter previous Although mos
Of these proved Improbable among the exceptions wer
tho great flowing wells upon Phole creek, 10 which re
also sunk In ohio western Virginia and Kentucky Ant
Il Is now probable that with the rcduccns q
taxation and cost Of transportation the business vii
sssume permanent character one Of the branches
our regular mining industry.
IAN extended analysis OF petroleum turnisnea oyiif
has also been published In these ca
umns
n NAV be said In general hat there dinerer
specics of oil there different species ~ coal
Some-as those found Canada and some parts Of Ken
tucky--conian considerable sulphur and other oeusiy
ingredients, which makes thcm more difficult 10 pulfu
and less valuable.
The iubrcang oils may be used for coarse maohincr
without preparation. The supply IA limited srarccl,
any Of the wells yielding more than twenty barrels ~
day The average does not exceed six The market fo
lubrcang oils Il very limited and uncertain althougi
II u improving They WI not bear shipment abroad
they arr sold in Europe IN large auan
titles, and at lower prices than thsy be afforded b.
The American producer.
beforc they are ~ for pleasant use
OF from the same well dinsrs 10 quality according
sHe time Of its exposure n the AIR ~ The naphtha
capes BY exposure and the remaining oil becomes