The Clarksburg telegram. [volume] (Clarksburg, W. Va.) 1874-1926, 1909-10-07
Attorney M. G. Spelry Gives
Some Sound Reasons
Against Movement.
GOVERNOR ADVANCES
Shows Unfairness, Inequality,
Unlawfulness and Other 8
Pertinent Features.
(By n. @. spea1.y.)

$ (By NJ. G. speary.)
The discussion of the conditions
surrounding the production OF natur.
! al gas in West Virginia, and the tax.
alton OF gas, filing the columns Of
the different papers in the state has
-lbeen about as one sided and unjus,
: as can be conceived OF.
The cry, tax natural gas" aud
the announcement by the governor OF
the state of a new party platform in
that slogan, might very naturally
lead to the Impression that natural
gas has been escaping taxation. The
impression disseminated by the Gov
ernor and those who have enlisted
In. promulgating his policy, that
natural gas, and the persons produce
ling natural gas, are not paying 1t or
their fair share of the burdens Of the
Estate government, is not founded on
facts; but on the contrary is mis-
leading and entirely false.
I Natural gas and the persons and
firms producing 1t are paying not
,tonly all but more than their eauita-
lble part OF the taxes. The properties
|of gas companies are assessed for
taxation at higher rate. consider.
ling their. actual and market value,
THAN any other class of properties In
West Virginia. We challenge the in.
formation and knowledge OF any
man who cares to take issue with us
lon the question. This excessive val.
uation is easily and logically az
counted for. The Board OF Public
Works fixes the value of this and
certain other classes of property for
taxation. They reach value by tax
ling the earnings Of railroad and 9TH
Ter companies, and capitalizing the
earnings on the basis of a certain
..Iper centum. This method attains a
fair and legitimate result in the
cases of railroad companies, water
companies and other corporations
whose income is in fact properly
within the definition of earnings. But
1.-THE income of gas companies is IN
mo sense earnings. 1t is derived from
la sale of the actual tangible assets
lof the company; from gradual con-
version of the actual assets into
leash. The only income of a gas
company, producing and selling
natural gas, is derived from a sale
LOT gas, and every dollars worth OF
|gas sold in the course OF business is
Ia conversion into cash of the tangi.
bile assets of the company to the
amount OF the sale. Treating such
Income as earnings and fixing the
value of gas property for taxing
purposes, by capitallzing such income
on the theory that 1t is earnings, re-
suits in an inflated valuation. 1t is
ltrue that the Board of Public Works
lin placing value upon gas proper
lty has made and does make certain
allowances for the exhaustion of the
! gas beds, but in every instance this
allowance has been insufficient, and
we speak advisedly when we say
THAT gas properties are valued higher
lin proportion to actual worth, fol-
purposes OF taxation, than railroad.
coal, newspaper or any other class oil
properties in West Virginia, with the
possible exception of oil properties.
:. Senator Elkins thinks that per-
lsops owning gas properties should
ipay more taxes, and those owning
railroad and coal properties less
!. taxes than at present. We do moi
believe that the fact that the Senator
owns coal properties and railroad
properties exerted any influence up
on his mind or helped in any way tc
lead him to that conclusion. We
therefore, want to negative in ad.
vance any such or kindred Inference
that may or might he drawn from
the manner in which We have stated
4 his position, as outlined by him in al
r interview recently published in tn.
Wheeling 1ntelligencer. We take is
sue with the doctrine, but do no
limpugn his motives.
q The proposition made by the Sen
ator is not fair or Just. 1t was mad,
without giving the matter matur,
consideration. and rather to avoi'
antagonizing the Governor than t,
announce a settled conviction.
We believe that the Senator wa
suffering from at of band-wagol
] fever When he gave out the inter
view mentioned, taking 1t for grant
led that he was correctly quoted.
4 will point out few reasons VIII,