The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1902-07-05
TAXATION OF OIL LAND.
The Jefferson County Commissioners
Have Knotty Problem.
A POSSIBLE SOLUTION OF DIFFICULTY
Is to Tax the Land Against the Owner
and the Wells Against the Com
panes Leasing the Land.


members of the commissioners court in
conversation with The Post correspondent
tnis morning said that the question Of oil
| taxation, which was discussed at length
| yesterday. was the knottiest problem with
which he for one hid ever had to contend
Representatives Of both the producers who
hold leases and of producers who own wells
on their own property were present, as
were the land owners who, under the
natural laws, would have the bag to hold
| by large majority.
The Gu0fey Petroleum company has rep.
resentatives who are thoroughly conversant
with the tax proposition and from their
point Of view it is going to be a very
hard matter to get them to pay any taxes
at all on the leases or the land. They are
of course willing to pay taxes on all the
other property they have and the land
| which they have clear title to. They
contend that the land should $ and tn
| taxes and they have produced many strong
arguments In their favor. They cited ill.,
| stances from other States and went on 70
show that as they owned simply the leases
there would be absolutely no way to en-
force a judgment for taxes against them.
The only thing the county can do is to
] nOlu the ln0u IOr the taxes anu Oh CouEse
that would not affect the lessees.
On the other hand, Messrs. McBaddin,
Wiess and OBrien represented their own
interests and those of other property hold
ers who own lands but have leased them.
they contend that the taxes, to be equita-
ble should be divided in proportion to the
| contract OF lease. In other words. most
of the property that is leased Is given for
one-tenth royalty. The owner gets one
tenth of the oil that is produced and mar
| keted by the lessee. II these owners have
| to stand the taxes IL Will entirely consume
| their one tenth royalty.
The member of the court above referred
| to states that his Idea is that the taxes
should be fixed SO that the owner pays
ON $4,000 valuation per acre aud the
producer should pay on $1,000 per well. He
realizes, he says, that II Is pretty hard on
| the owners to have to stand such rate
| and only get one-tenth the value OF the
| rate they arc paying, hut II Is no fault
of the commissioners court. and the only
responsible party is the lessor who turned
| his property over to the lessee without
providing for the taxes.
Under the above rate the Spindle Top
| acreage alone would show a taxable value
OF S6,4oo,000 on the land and Sl,o000oo
more on the wells making n totn for
Spindle TOP. without including taukage
! $I.4O0.0O0.
The court finally passed the matter over
| until next Tuesday, when IL will be gone
over again ana the court Will t0en DndHN
decide what is to he done in the premises.
~
The oil people have been enjoying rest
today and in many instances the drilers
and their helpers have gone away for the
day. The drilling rigs have been shut
down and Spindle Top has had a sort of
dead appearance that has not been known
since January TO- 1901, The railroads have
taken out as many cars today as usual, the
total by rail being about $50 as against
1876 Yesterday. The vessels at Port Az
thur have been busy hut their work has
been retarded 70 a certain extent by the
fact that many excursionists were there
sightseeing and managed to get in the way
on every opportunity.
~
The car situation is still vcxing, but the
number Of cars going out would indicate
that oil Is being pretty generally used
through Texas The number of cars for
the month is running ahead of $50 and not
over one.third Of this amount is being con.
sumed by the railroads themselves. They
have to look out for themselves first and
the shippers next, but they seem to be do
Ing all they can to keep the shippers in
cars and So far as can be learned there
has been no partiallty shown Now and
then some Of the oil people viii declare
that the larger concerns are getting ears
while they are suffering, but when the
reason that does away with the dscrimina-
ton claim. There Is no doubt that four
times the number OF cars Mt present In
use should he here and they would have no
idle moments either The city could easily
send out 500 cars per day on the demand.
Every car added to the present equipment
means an extra car per day about once in
ten days. 1t requires that length II time
to make the rounds. 1t takes 1000 cars
to get out 100 cars per day.
=
ra,r g., lie
not going ahead as fast as would be ex-
pected because labor Is scarce and high.
The increase in tankage during the month
past did not reach 100000 barrels as
was the prophecy of those who are usual
~ in position to know. As soon as there
of constructing tankage will be resumed
with all the energy that characterized II
two months ago.
The oil exchange and oil well supply
houses have all been closed today and this
afternoon practically, all the offices are
chief clerk in an office is found, but as
rule the old passage Of "knoek and It
shall be opened unto YOU" Will not work
on the Glorious Fourth In Beaumont Rtl
office.
The Lone Star and Crescent Oil company
yesterday cleared four barges foe Morgan
City and New Orleans, but this has grown
to be almost daily occurrence. The com
pany is shipping tremendous amount Of
fuel oil to Louisiana points as well as to
New Orleans proper the outside oil going
to the big rice and sugar plantations where
| oil has proved a Godsend TO them.
~
The following interesting statement o.
ships being remodeled to ell tank vessels
for the Texas trade appeared In the last
issue of the New York Maritime Register.
the worlds authority on shipping news:
The British steamer Queen 2soT net tons
register, built In New Castle in 1890, now
In New York. will be converted into an oil
tank vessel for the Texas trade.
The steamer Florida, 1907 net tons, built
in Port Glasgow, Scotland, In 1881, now
at Philadelpha, will also be converted into
an oil tank steamer for the Texas trade.
The bark James G. Pendleton 81 tons,
built at Newburyport Mass. In 1872, now
AZ Mobile is to be converted Into an oil
|