The Clarksburg telegram. [volume] (Clarksburg, W. Va.) 1874-1926, 1909-10-14
Taxing Coal bands and Gas.

Taxing Coal lands and Gas.
The Daily Democrat published a
Johnstown, pa, draws some splen
did distinctions In the following ed
itorial on taxing coal lands and tn
Tproposed tax on natural gas in Yves
Virginia, which are worthy OF pc
rnsal and study by every one inter
tested.
There Is much more sense in thu
West Virginia proposal to tax Goa
(; lands than in the one to tax the ex
y ports OF natural gas. The tax or
Scoal lands. IL levied according to the
market value thereof will stimulate
the production OF coal while discour.
aging the monopoly OF such natural
opportunities. But the natural gas
tax would have no. similar effect. II
would be a tax on the use OF the
commodity; 1t would fall upon the
consumer; and its effect would tend
Ito limit the consumption of the
product.
II is impossible to sympathize with
the Connellsville Courier in its vio-
aent protest against the proposed tax
on West Virginia coal lands. It's
protest is based chiefly on the fact
that the tax would affect the inter
ests of Pennsylvania spectators. 1t
Is not the character of the tax SO
much as where 1t would hit that dis
turbs our Connellsville contem-
porars.
But Pennsylvania spectators took
their chances when they went into
West Virginia. They cannot plead
the baby act. When they bought
West Virginia coal lands they did so
with the full knowledge that these
lands were subject to any tax the
state might impose. All land In all
the states Is bought on exactly the
same basis and SPECTATORS cannot
Justly complain when the state de-
cides to tax property less and mo-
nopoly more.
This is West Vtrginia's PROPOSE
ton. 1t has decided that 1t is poor
business to tax industry and so ID
discourage. 1t believes that n tax
on monopoly privilege Is not only
more just, hut infinitely more COLI
ducive to development and growth.
And this is the ground the state
takes in proposing to tighten the
burdens on production and increase
them on monopoly and privilege.
1t is a pity that West Virginia
does not apply the principle she
proposes adopting in the case Of
coal lands to those yielding natural
gas. There is manifest injustice in
taxing the output OF her gas wells.
for the tax on natural gas will be
passed on by the producer to the
consumer, doubtless with good
profit added. But if tax be placed
on the value of gas lands without
regard to the improvements very
different effect will be noted. Such
"a tax cannot be passed on. for the
reason that 1t takes a certain mart
of monopoly value-a value al
ready determined by a natural Law
and so leaves only so much of that
value in the hands of the owner.
: 1t should be clear even to
the most casual observer that If you
take away part of the monopoly
( value of a given opportunity there
Is no way of replacing it. Monopoly
value Is determined by the demand
! Tor use. The demand cannot be in
creased by tax on that value:
Hence. the tax must be paid by the
owner and he cannot possibly recoup
1t. II he could, he would not care
II the tax took the entire value an.
nually.
The West Virginia proposals are
worth watching. The one is as bad
as it can be and 1t ought to he de.
feated. But the other is sound in
principle and West Virginia will Dc
herself and the country great ser.
vice in adopting it, "A tax on monop
oily yalues-on the value of coal ant
other lands would go far toward
the solution of nearly all the socia
and economic problems of the day.
The New Church Home.
Gloriously. crowned is the nobl,