Sistersville oil review. [volume] (Sistersville, W. Va.) 1896-1901, 1898-07-06

SAND LOT eaCu failure OF IeiuSal I'D
make return as aforesaid and for
each and every false or fraudulent
return,
It will be noticed that while the
law calls for returns once month
the settlement needs to be made
but once year. The law seems
also to have been framed with par
ticular regard to the finances of the
smaller pipe lines and refining COM
panies, whose receipts fall below
S25o, 900 year. This practically
exempts several firms, companies
and corporations, whose business
in the aggregate is quite large and
would supply the government a
considerable revenue if the tax
were equitably adjusted. 1t would
seem that in the present emergency,
if the petroleum industry was
deemed a proper subject for taxa
ton, it should fall upon all alike.
"A private individual, firm or cor
poration that owned a pipe line do
ing business of $500 day or less,
would escape the tax entirely.
There are several of this class in
the Tiona and Clarendon oil fields,
one at Kane and one at Bradford,
but none of them will be called
upon to provide any portion OF this
direct war tax. How these lines
will evade the payment OF another
provision of the same tax IS another
question.
1t has been determined that run
tickets, or the receipts for oil re-
ceived from the producers tanks,
given by the pipe line companies
are to be considered as bills Of lad
ing, and as such are subject to a
stamp tax of two cents. That is
after July 1st the pipe line gauger
who makes out run ticket for oil
run mist afix two-cent stamp on
the back of the ticket and cancel it
with his initials and date written
across its face. The Standard Pipe
Line companies have already gone
to great expense in having new
gauge books printed in order to
comply with the law. They have
likewise ordered 81, 800 worth OF
stamps from the government to be
affixed to the new gauge tickets
when given out. The government
will not be able to furnish these
stamps at the time the new law
goes into effect, and the run tickets
therefore, cannot be delivered to
producers until they are properly
stamped. This is going to cause
some delay and interruption to the
business, but producers may make
a memorandum of the amount OF
oil run to their credit from the face
of the ticket. The bills OF lading
themselves will be held in the
custody of the transportation COM
panies until the stamps have been
received from the government, un-
der a severe penalty for their de-
livery without stamp. 1t IS to be
hoped the producers will be patient
under the temporary restraint and
accept the situation with the best
possible grace.
The Standard Pipe Line COM
ranies average $4,000 runs month
or over LOO a day. 1t was thought
at one time that each subdivision
of the runs representing the separ-
ate or individual interests OF lease
owners and members OF oil COM
panies or firms would have to have
a separate stamp affixed but this
has been decided as unnecessary.
There are on the average, three
sub divisions to each run OF Oil,
which would increase the tax,
three.fold were it made obligatory
to stamp each separate interest
represented every time a tank at
the wells was connected with the
big storage tanks Of the transpor-
tation companies.
The people who own and control
private lines, that give out no run
tickets, will probably be able to
evade this tax on bill OF lading.
By treating their receipts of oil or
credit balances as cash, no stamped
paper passes between the producer
and the pipe line. 1t will thus be
seen that these smaller lines whose
receipts come within the limit
specified by the new law, will be
able to evade the payment OF any
special taxes whatever. The dis
elimination in these particulars
against the larger lines had been
1T. I,.tIa consideration Qg