Sistersville daily oil review. [volume] (Sistersville, W. Va.) 1902-1905, 1904-04-07
DAWSON'S POSITION ON
TAXING OIL AND GAS


of the State, and nothing of it re-
mains for assessment on any Civ
en- day of the year" These are
the findings of committee of five
able citizens of this State, charged
with the duty of making an inves-
tigation, and who spent a great
deal of time in consideration and
in investigation. They were both
able and honest men, acting as
public servants; and while we,
who are engaged in the business
upon which it is proposed to
levy additional taxes, may it first
feel that we ought not to pay
more, we must bear in mind that,
being interested, self-interest
might cloud our judgment; and,
also, that it is proposed to remove
from our property all State taxes.
The commission proposed a IL
cense tax of y cent per barrel OH
oil, and of | 1-3 cents per 100000
! cubic feet on gas. A well pro-
, ducing 10 barrels of oil per day,
settled production, is worth about
$4,000. At y cent per barrel
this tax would amount to 5 cents
per day, or $1S25 per year, on
such a well. The average rate Of
taxation in this State is about pa
per cent; so that the taxation that
would be paid on $4,000 of any
other property would be about
$275.
The most of the oil and gas men
with whom have discussed this
question do not SO much object to
! the amount of the tax (some do
not object to the amount at all) as
I to the mehod Of levying and col
lecting it. The method is not i'm
! portant. All taxes ought to be
imposed and collected in the man.
ner of least annoyance to the tax
! payer. The commission did not
prefer the method they proposed !;
! they prefer the method based Oh
the gross income of production,
but which they did not adopt be-
cause of certain provisions of the
State Constitution (page 81, final
report), which provisions have
been since removed by one of the
amendments to the Constitution
ratified in the election Of Novem-
Der, 1902. 1t seems to me that q
tax based on the value Of the pro-
duct is fairer than an arbitrary
amount on each barrel for y cent
per barrel when oil is 81 per bar
rel is double the amount, value OF
product considered, when oil is So
per barrel.
The important thing is the pay
Nment of the tax that ought to be
paid; the method of payment is OF
quite secondary Importance.
The keystone of the act of Tax
Reform is the removal of all State
taxes on real estate and personal
property, because this is the first
and an indispensable step to a
iuster system of taxation. Tax
Reform, as I understand it, is not
to get more revenue, but a better
and juster system of taxation.
Having now given you as
frankly as 1 can, though writing
hurriedly, my views, which l
know you will consider before
you condemn, let me ask you to
favor me with your views; for 1
have been a student of this ques-
ton for several years. 1t is one
of the most important, as it is one
of the most difficult, with which
governments have to deal. 1t is d
question that ought to be discuss
ed without feeling or prejudice,
and be settled with as nearly alb
solute justice to every person,
citizen, and interest as it is pos
, sible for human wisdom to devise.
The citizen owes support to the
! government, and the government
owes justice to the citizen.
Very truly,
W. NJ. o. DAWSON.
Parkersburg, W. Va, March 81.