The Fairmont West Virginian. (Fairmont, W. Va.) 1904-1914, 1909-10-11
Tells Why
Production
Tax is Just
Points Out Errors
In Opponents
Criticism

WHEELING, Oct. 11-Hon. 7. C
Townsend, State tax commissioner
has been in the city several days, at
tending to special business in connec
ltton with the work of his office. Mr.
Townsend has been connected with
the tax commissioners once eveI
at hand, when his aim in this. matter
since that department was created
and is the highest authority on tax
questions in West Virginia. He has
been for number Of years an earnest
advocate of a production tax on natuF'
al gas: and feels that now the time IL
will be realized. Saturday evening
MT. Townsend accorded an interview on
this subject to newspaper represen'
tative. Speaking first of the constttu-
tionality of the tax. he said:
II don't think there is any doubt
but what production tax on gap is
constitutional. 1 had occasion during
the last session OF the legislature to
examine tais very Question, and then
reached the conclusion that the con.
stitution did not forbid the imposition
Of a production tax on natural gas.
The constitution provides that "the
legislature shall have power to tax
by uniform and equal laws all privi-
leges and franchises OF persons and
corpora tons" You will note this
clause OF the constitution authorizes
the taxation OF all privileges Just 80
long as all persons or corporations en-:
ioying the particular privilege are uni
formly taxed. What is TO hinder the
Legislature from imposing a privilege
tax on the production OF natural gas?
'Tt is natural. however, for come
people to oppose any new measure on
constitutional grounds when nothing
else is left. 1t have some recollection
that the whole system of tax reform in
this State, as proposed by the tax conn
mission Of 1902, was branded as un-
constitutional by some OF our most dds
tfnguisned citizens, but to my knowl-
edge not a single syllable Of the new
tax laws has been held to be unconsh-
tutional. There has not been even a
single dissenting opinion by any MEM
Der of the Supreme Court, although
many provisions of those laws have
been before the court for deterunina-
tion."
do you consider the tax on gas
equitable as well as legal?"
"viewed from the standpoint Of JUS
tice and equity. the production tax
should be levied. The gas industry is
clearly distinguished from any other
industry in the State. The taking
away of the gas is constant destruc-
ton and exhaustion of one OF our most
valuable natural resources. 1t is one
constant stream of outgoing wealth
with but little return. The. producer
of natural gas not only takes his own
gas but he takes that of his neighbor
and from all the surrounding territory.
BY means of huge suction pumps Q
gas field is soon exhausted, and many
dollars in wealth are taken tTom ter
ritory surrounding gas well that is
not owned by the owner of the well
and to which he is not justly entitled.
This one peculEarity OF the business Is
enough to justify the additional bur
den of a production tax.
at may be deemed by some people
demagogy to advocate production
tax because other States are taking
away from West Virginia the greater
part of the value of its gas. Upon
this proposition am perfectly, will
ing to be deemed demagogue. When
we take into consideration the fact
that the gas industry of the State has
largely developed in the last ten or
fifteen years, and each succeeding
year sees an increased proportion oil
this valuable fuel is going into 9TH
er States to build up their commerce
while West Virginia suffers. is 1t not
time something was done? West
Virginia should deyires its fair share
of taxes from this product while we
have the opportunity.