The sun. [volume] (New York [N.Y.]) 1833-1916, 1915-02-17
TAX QUlCKENS
OIL STOCK INTEREST
Mining Engineers Informed Of
Federal Allowances for
Depreciation.

In the midst ~ technical discussions
Yesterday the American Institute OF
VI ming Engineers. in convention at the
Engineering : cletles RulldinR. 90 West
Thirtv-ninth stree. heard y pa per on a
subject OF Importance to every owner
of n share Of oil stock.
American shareholders have never
displayed tho interest in their properties
tina English stockholders d.. but the
income tax is likely ~ quicken them to
a realization Of how such things as de-
probation Of oil properties affect their
po~ckethooks.' was the way one engi-
recr commented on the c-pic treated by
Philip W. Henry. consulting engineer Of
- BROAD street.
Those Of the income faxed Who have
reached the bottom Of page 3 OF their
"ludividual returns" will have noted that
Uncle Sam, per ". q McAdoo. permits
Thorn 70 all Uw fo- depreciation and ilso
for a 8 per cent depletion on yearly
output OF mines and oil wells, MIR.
lienry's conclusions II widely adopted
will not greatly enrich the Federal
Treasury by everu from Oh properties.
For instance. no told the engineers
that IN the oil fields - California deprc-
citation cost may equal ur even exceed
the direct cost Of producing oil per bar
rel In the same state. he said. deprc.
citation percentages yearly should be I
per cent on the cost of oil lands. ! per
cent. on cost OF fold equipment and 10
rer cent, n cost Of individual wells and
appurtcnances These percentages, Of
course. vary somewhat with each prop
crty.
Mr.. Henry said nm oil property should
set aside yearly ont Of earnings a depre-
citation reserve applicable only to re-
payment - principal. He thinks Il
may properly he Invested either I'm tho
property itself or outside securities, but
that only extraordinary repairs and re-
placements as made should he charged
out of Il.
In a more general paper G. supplies
of oil and gas Roswell II. johnson of
Pittshurg gave a. his conclusions
much OF the worlds oil is lost "a
recovery and there is less hope Of deep
reserves than We ave believed
There are enormous reserves o'
deep gas not only In present producing
areas but in many others"
Alfred H.. Brooks OF Washington.
n G. discussing the prospects o,
petroleum fields in Alaska. said there
are seepages At four points. all on tho
Pacific scaboard Tho Government has
Withdrawn all petroleum :ands from
entry and So they have gone largely un-
explored AS vet. Alaska affords a good
sized and growing market FOR petroleum
and MIR Brooks thinlr IL may eventually
supply ito own strons demand.
Quicksilver. which sold last July Al
s35 a flask OF Is hounds. to-day sells
AT $t1.50 20 $50 for the same quantity
Used In the form ~ illuminate II il ar
aid to making war, so the demand
keeps increasing g A Hehcrle,n o'
Los Angeles. therefore. narrated The
experience of the Oceanic rhine al
Cambria, Cal, in mining n reducing
quicksilver ore
II was not overly encouraging
N~inety-one per cent or So pounds al
quicksilver per ton recovered IL WORT
81 95, hui the net profit IL only 81 4;
per tor OF ore. so CLOSE TanaEemen,
and a large tonnage OF ore are neccs,
sary TO make a successful business"
The convention concludes to-day,