The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1902-07-09
4 VALUE OF OIL LAND.
s Placed Very Low for Purpose
of Taxation.
kuowNEs MUST PAY THE TAXES.
Commissioners Listened to Many
',oun,enss Before Making Decision
In the Matter.

], ,mort. Texas. July s.-The most I'M
AR matter to Spindle TOP prcbnoly that
..r,a mn for some time was the dis
~, before the commissioners court OF
nroncr method Of taxation of the prop
an the hill which is now producing
rho body met With the interested par
a ,bis afternoon and the discussion COW
\ .vnry phnse of the case. Captain
nrre w. o'Brien. representing the Gladys
9 on. Gas and Manufacturing company;
A. Greer. representing the Guffcy
troleum company. and the McFaddin.
hess aud Kyle interests; w. p. II. McFad-
rsnresented his inter ests and Mr.. I'm
a,vood Naaro represented the National
and Pine Line company. Several others
4 not have much to say in the debate,
n were most interested spectators.
a ontnin 'Brien had tour or five decisions
/ siippolt his theory that the lana owner
Eould be taxed only on the value OF MS
I'M and one-tenth its value as oil produc-
II territory and that the lelseAolder should
tnXed the tther nine tenths valuation on
H. land MS producing oil. He admitted that
/, commissioners had no authority to tax
H. i,aseholder as part owner Of the land.
! he ma think and his notifies, he
fgu,d. weie In point to prove, that the
~ holding was a taxObls property aud
4 argted at some length TO tnnt chect.
[TbeIe seemed to be no doubt III the minds
4 Inc count that the leasehcldar morally
b1uId nay nine-tenths of the TAX On tine
4 tnntion Of the land as an oil producing
oposition, but as to legal duty they were
tt decided. ~ -
nj for the tax, that the underlying princi-
.ee of the government made the land re-
honslble for it's tax and that therefore
hur was 10 other way than to tax the
Sairatinn of the property both as to surface
brbte aud as to oil producing against the
Han whose name had color of title In the
on January ]. 1902. He remarked that
II occupied a peculiar position in that he
kplesented both the McFaddin interests as
landowners and the Gulfey interests as les
Ie,s In other woids. he represented both
Lssor and lessee but he thought that an
Idius tment could be made cutsi e the courts
1etwt en- his clients and that the land should
be taxed. MIR McFAddin made strong
plea oil the former hearing against taXaticn
'oely against the lnnd He showed that
he taxes would practically render his land
Worthless for the revenues received from
bis one tenth royalty would not yield suf-
hclent sum to pay the taxes each year.
In the course of the conversation one of
The oil men made the remarkable statement
that he did not think there would he we'll
In the hill that would produce 800 barrels
/ day in six months. and that the court
In enormous value with this fact staring
them in the face He was pleading with
them as a whole, for he represented com
pany that owned the land they were operat
ng on and the lease matter did not cut
much figure When asked his reasons fol
he statement he replied that the people
were literally running the hill by drilling
Il ful' Of holes. He would be perfectly will
Ing to shoot The taxes skywald If they
would stop the promiscuuus muddy water
drilling into the oil sands. That was about
the only statement that was made thai hat
, tendency to startle any one.
Late this afternoon, after hearing butl
sides fully, the commissioners rendered
their decision to the effect TINT they won {
TAX the land against the owner of the lant
Of the rate Of $500 per acre and woult
tax the wells against the lessecs Mt $500,
per well and would make no taxation
where an oil company has leased lands anC
placed pipe lines and storage tanks on thu
leased land this tankage and piping Will III
taxed to the actual owners of It, THIS rul
Ing will make the lessees the benehciarie
TO large amount, while the landowne
will carry the burden of the taxes unles
he can make an adjustment with the lessee
10 his satisfaction. The court made III,
decision knowing that the result would b,
carried into the courts regardless of wha
It might be- The rate axed by the cour
was smaller than had been at first contem
plated by a very large margin, and will ma
terially reduce the taxable values Of tn
county. On the hasis of $500 on $50 acres
which will be about the amount of oil Ian,
rendered, 1t will be seen that the tota
valuation of Spindle Top will be below 50,
100000 as tax producing value proposition
This. Of course. does not take In the valu
Of any improvements whatsoever Tn
change Will reduce the county's taxahl
values 10 something over SIS, 600 900 or pos
sbly as high as S20,00o,O00 as against $40,
100000 last year.
~
Congressman Cooper and Mr.. ChilGres
Fave exchanged messages and the col
gresham will be here Friday morning
He will then take up the matter with tn
local organization and settle detinitel
rpon the plans for the banquet. The Il
cal body desires to invite Senators Ba
ley and Culherson and Congressman Ba
rs Mr.. Coopers guests and as friends n
beaumont, though this matter viii nc
be definitely decided upon until the NEE
Ing to be held Friday,
~
The city and the London OIL and Pip
Line company, Mr.. I. D. Polk and othe