Lancaster daily intelligencer. [volume] (Lancaster, Pa.) 1864-1928, 1883-05-14

The producer or the consumer of petro-
leum pays the tax on the prodnct. The
Record has been strenuous advocate Of
ihnfneks are always diffused
70 that The sensa0AE -pAyg-hlsf faif pro
portion. 1t has particularly insisted
that q tax On raal satat0EnaAy b not lun-
lust to the real estate owner, because he
collects their share of it from those who
are not land owners. It seems to find
an exception to its idea of the universal
diffusion of the burthen of taxa
tioA, N1Ga id isPeMnarty Nlaced On
petroletm! for the reason that petro
leum is produced in excess OF the de-
mand for 1t, and therefore the consumer,
and not the producer, is able to fix the
price for it. This srsfment applies as
we'll to all other articles that are pfovi-
ded in excess of the demand for them.
It would forbid tho taxation of real
estste vixen and where There are more
sellers than buyers of it. But if the state
is only to tax thing when and where
it is not in excess of the demand for it,
it's taxing power would be paralyzed, as
there are alwsys times when trade
is dull and when the buyer is able
to dictate terms to the seller. The oil
producers are able to protect themselves
by reducing their production. They
have a commodity which is needed and
which is intrinsically worth great deal
more than they are now getting for it.
1t does not become them to pump it
from the bowels of the earth ir Quanti-
ties greater than needed and then
complain that they cannot get
price for 1t that will be remu
nerative. 1t is great deal more
valuable to themselves and to the state
in the earth than out Of it. Some day
tho supply will run short and the price
will go up. The producer should
patiently await that time but unfortu'
nately each one is fearful that his neigh
bor will draw his oil away from him,
and the scramble to be first in securing
it causes the waste that is being caused
of a most valuable product. The ter
dency of tax will be to check produc-
tion at a loss, and it will be beneficial!
to the oil interest to the extent to
which it will exercise this influence.
Petroleum is a better subject of taxa
ton than the other important mineral
products of our state, such as coal and
ore, because it Is not so largely consumed
in home manufactures. It's not SO i'm
portant as a raw material of manufac-
ture. 1t is also a peculiarly proper
object to tax, because the state has
practically the monopoly of its produc-
tion. In this latter respect it does not,
however, differ in its status from an
thracite coal and this article, it seems
to us, can bear a reasonable tax. Btu
minous coal, which is much more abund-
ant and which is produced in so many
sections of the country, can bear but a
light burthen of taxation.
The temper Of the Legislature inclines
it to tax petroleum, more perhaps: be-
cause it is known to be under the control
of a foreign corporation which has SO far
escaped the fair burthen of taxation and
has accumulated immense wealth
through its unjust manipulation of this
great product of the state, than because
of the characteristics of petroleum itself
which make it proper object Of taxa
ton. In the present condition OF the states
finances the individual oil producer
would probably be permitted to send his
oil untaxed to market. There is no doubt
that the majority of oil wells are not
largely profitable to their owners. There
is no disposition to put any burthen upon
the small producers. If the whole sub
ject were referred to good committee
with instructions to speedily report a
measure to carry into effect the evident
aim of the Legislature, proper bill
could probably be more readily pro
duced than it is likely to be by the
body of the House, which is now under
taking the work. The proposition origi
nally presented to tax all oil shipped out
of the state is admitted to be unconsti
tutional in that shape but may it
not be made constitutional, while
effecting the desired object, by
taxing all oil sent through pipe lines of a
certain diameter, or from distributing
centres SO that oil sent in small pipes
from the wells would escape taxation,
while the large quantities sent
from the oil magazines would be
taxed? The effect of this would be the
erection of refineries in the oil regions.
The pipe line oil can afford to pay tax
because it is much more cheaply trans
ported than by railroads. We have
heretofore suggested that pipe lines
should not be chartered to carry oil
to the very boundaries of the state, so
that oil 80 transported would be refined
in the state and we do not see why
there could not be ajudicious a and en-
tirely constitutional restriction upon the
free exit of oil for manufacture outside
our boundaries. Jv N .a
Mr.. HENRY WATTERsoN, who has
conspicuously commended and recon-
mended the resort to the pistol as a con-
venient and profitable method Of settling
private quarrels and avenging domestic
wrongs, ought to be satisfied with the
progress his policy is making in the stale
for which he delights to form and FORM