Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1912-02-16
SLAP At THE PRODUCERS
\ MENACE no NATURAL RIGHTS
70 RESULT IN 4 LONG TRAIN
or DIFFICULTIES.
A CLOUDIHG or INTERESTS
state 7, Assuming n Radical and Tx
IRENE Policy That VIII Hurt and
Drive Away Capital.

Drive Away Capital.
The OH producers in and around
Rartlos,Ille. and other sections Oh
Eastern oklahoma, are much cxer-
ciscd over the Investigations OF tax
nqmsitor emanatng from oklahoma
city. This inqusator proposes 70
place on the tax duplicates Of the
various counties in which oil and gas
are produced against the operating
lessees, the value of the oil and gds
ln place, or in stu as the law books
have it. That s to say, it is proposed
to tax not only the value OF the 1il
IN tanks, the oil well property aul
machinery used in operating leases,
and the surface value, but also tho
estimated value of the underlying oil
at the rate Of $4,000 per barrel,
based on the production at the time
of the assessment.
AS the oil value has never vet been
so taxed, the following out of this
ilA'AIlph VI AhAdAipil VIII cover u ut-
linquency of several years past, and
result IN the oil producer. already
burdened with excessive taxation in
this state, being compelled to pay
hundreds of thousands OF dollars al.
ditional in taxes. 1t is estimated that
n Washington and Nowata count -
whore the inquisitiOn Is now on, tn L
the oil producer would be compelled
to pay under this new taxation tho
ory over two million dollars in addr
tion to taxes already paid, ten per
cent of which goes to the inqu sitor.
1t is reported that the authority TO-
this mineral tax is derived from az
eX parte proceedings of our supreme
court, in which the oil interests were
given no notice or right of hearing.
What II VIII Mean.
The placing on the tax duplicate of
this tax means long and expensive
litigation to hundreds of operators.
1t means clogging the natural trade
channels, because lthe tax will be
menace ana a cloud on oil rights and
corporate interests and titles general.
Is and is another chapter in that
long. endless chain OF bunging OF.
licial endoayor that is driving capital
out Of Oklahoma.
Here the oil producer not 0nly
pays an outrdgeously high ad valof.
en- tax, but he pays grossly ex'
cessiye and highly in4quitous quar-.
terly gross revenue tax, such as no
other state save oklahoma ever saw
fit to impose. + sides this. he pays
,he federal income tax and the an
nual license tax against corporations,
and now 10 assess this further tax
can only mean bankruptcy to count.
less operators. Everybody in the III
business in tbs state realizes the diff.
ficultics the producers have had in
The years that have gone before
Many splendid properties operated
for years have not pad out to this
date, because the price Of crude oil
has been low and operative expenses
high. with the market advancing
and the producer beginning to see a
little daylight after his long labors
and efforts. comes this last crushing
burden to blight his hopes.
No State Ever Did 1t.
The oil business has spread across
the country coming from New York
through Pennsylvania, West Virginia.
ono. indiana, Illinois and many 9TH
,r states, and none or these states
has ever assessed a tax on petroleum
In place, or more particularly on tho
lessees rights-eXccpl as TO property
above ground. True. II has been at.
tempted i'm one or two states but
wherever attempted, the right has
been denied. but Oklahoma. pursuing
the same radical extreme policy that
has hurt the state and driven capital
away I'm many other matters. must
needs keep its reputation for radical
SIN intact
Apart from the legal aspect of the
matter. but on the broad grounds Of
public policy and in the inherent
right and Justice of things. this pro
posed tax can only be destructive AMI
inimical to the best interests of The
state.
Time to Take Action.
It is time for the oil producers to
take action. and II there is any life
left in the old Mid-COntinent Pro
ducers' Association. now is the tims
for 1t to act. Something ought to be
done btfore these taxes are placed
on the various tax duplicates and the
titles Of properties and interests
clouded.
Hearings are to be had at Bartles'
VILE within the next week and also
at Sapulpa and other places about
the same time. The time has come
y-l,., oil iutcr.ets affaofad rnusf taxa