The Socialist and labor star. [volume] (Huntington, W. Va.) 1911-1915, 1914-02-27
IN Open Letfer TO the People Of Went Vug1ma:
What Do You Think About the Oil and Gas Business?

the taxes paid by all OF the Public Utilities
and over one-sixth of the taxes paid on all
the real and personal property OF all the
corporations and of all the people in the State
Of West Virginia.
To give you an idea of what the oil and gas
business means to you as tax payers, we
give here some interesting data:
During the "a years, 1889 to 1919, inclusive, there
were 35,46S wells completed.
For each of these there were paid to West Virgnans
for labor teaming, material, drillers' board, rig
timbers, etc, not less than Sl,S5S.
Or a total of s47,s74,17s.
Including sll595,767 for the $500 dry holes.
For the operation Of the a6,784 productive oil and
gas wells and the caring for the product there has
been paid in West Virginia for labor, material, team
ing, ETC., not less than 800, 0000Oo.
In oil royalties West Virginia land owners have
received $S7, 0OO,7 96.
In rentals on lands held for oil purposes, before
drilling the land owners have received not less than
Slo000,0O0.
Tn rentals on lands held for gas they have been
paid s,o4s,9ls.
And in royalties on gas from gas wells they have
received more than $6,426,4lS.
This makes grand total of SsO9, 10000, the
amount by which West Virginia has been enriched
bv these industries during 1889 to 1912.
The amounts may thus be recspitulated:
REHABILITATION
Oil ROYALTIES ..................$ 37,0007e8.
ri ri iaud rentals .. 100000.
a. 49, rentaIs . S,0489l8.
Gas royalties. .5S o4 ~
Drilling cost, share to local interests 4h@'4'l'9'
Maintenance cost producing Weis' -, ,,o ann
pipe hnes etc.. ..'.''.'.' 7''ooo'oo0'
Total benefit to West Virginia $780, 800.
In the above figures no account is taken OF the
amount paid in taxes by these industries "hleh
aggregates many millions.
In 1919 the oil and gas properties were valusd at
,s55,7O0 and tho taxes paid were S946'Ooo'
This was an increase in valuation from 1904 OF l'ss9
per cent. as against an Increase on real estate OF
only 366 per cent.
Since 1919 the above amounts have been OF course
greatly increased 50 that we may fairly estimate thas
each item could be increased say 2O%o.
This would make the total benefit to West Virginia
in excess OF Se50,O00 900, as above stated.
Do YOU realize that by the oil and gas development
thousands have been added to your population, new
cities and towns have been built and large increases
have been made in other towns and cities, creating
demands for your agricultural products food and
clothing: in fact, for all the necessares and uxures
Of life?
Do you know that by adding these thousands to
YOUR population and spending these millions among
YOU, YOUR State has reaped far more benefit than the
oil and gas people by the amount they have mace
out of the oil and gas they have produced?
Are we not, therefore, amply justified in our state
ment lust made that your share of the profits OF the
oil and gas development has been greater than our
share?
Do YOU know that in the beginning natural gas
was considered of little value and do you realize
that today it is in demand all over the country, at
increased selling prices but is obtained only with
increased costs7
Do YOU know that the greatest question among
operators today is Where more gas be found,
and that the ceaseess work OF exploration Is costing
enormous sums Of money!
You have heard, of course, that supplies and
materials are higher priced; that to organize and
manage company on big enough scale to go into
the gas business as it is today, building COMPRISING
: Respectfully yours,