South Bend news-times. (South Bend, Ind.) 1913-1938, 1917-01-29
STANDARD OIL
SEES BILL JOKER
Works Hard for Inspection
Measure to Avoid Paying
TaX-LaW Held Invalid.
New.-rImes - -:

News-Times Special Service:
INDIANAPOLIS Jan. 29.-Why is
the standard oil co. sending its lob
bylsts to Gov. Goodrich to publicly
approve the Goodrich oil inspection
bill?
This is the story OF why the Good
rich oil inspection bill has become
known as the standard oil Co. re-
lief measure IL is the story of why
an insurgent movement has arisen
among some progressive republican
senators and why they are carefully
inspecting other Goodrich measures.
The Goodrich bin provides that a
stamp tax Of one-quarter cent shall
be fixed on each gallon of oil sold
in Indiana
The state inspected 9S,5O4,9OO gal
Ions Of oil and gasoline last year.
Under the new Goodrich bill the
same number Of gallons would have
cost the oil companies $246,262.25.
The oil companies paid for inspec-
ton under the present law SILL
1910 last year.
Want tO Pay More Money.
The Goodrich law would compel
the companies 10 pay $34,530.55
more than is paid az present.
The oil companies are lobbying
with the Goodrich administration to
place this additional burden upon
themselves.
Why2
The reason is under the Goodrich
bill. there is every possibility the oil
companies will evade any payment
20 the state. The best attorneys
who have been studying the bill for
weeks say they are certain il will
be declared unconstitutional. But il
will have repealed the present oil
inspection law and il is the legal
opinion Indiana viii not be able to
compel the payment Of one cent Of
oil tax if the Goodrich measure is
enacted.
To digest the law and reveal the
joker. the first section provides for
registration Of names Of agents.
The second section provides for
the fixing OF a label on the con-
tainer The label guarantees the oil
is equal 10 or better than the stand
ard stated on the label
For each gallon sold or offered for
sale the agent must affiX stamp in
an amount equal 10 One-quarter
cent "A gallon.
The third section provides the
chemist of the state board of health
shall he state inspector of oils. He
is authorized 20 establish standards
of purity. He is authorized 10 APP
point mot 10 exceed three deputies,
who together with the deputies of
the pure food and drug department,
are authorized TO take samples Of
oils sold or offered for sale
The fourth section fixes penalty
for failing 10 afFiV the stamp tax and
for selling oils inferior i'm grade to
the standard stated on the label.
The law makes inspection of oil
optional with the state chemist. He
can inspect il he 50 desires. But
there is no connection between pay
meut Of the tax and the inspection
There is the joker which has
tickled the oil companies very pleas
antly
The constitution provides that one
commodity or class of property
cannot be singled ont for taxation.
The attorneys say there is no doubt
Section 81" Of the Goodrich meas
IRE viii be considered as revenue
measure" and therefore invalid be-
cause it places "a tax on one commod-
ity and not ON others
Lawyers Expose Joker.
The OF companies therefore would
Ire relieved of paying anything TO the
state and the Joker would con-
tinue 10 tickle them
They would be saved $211.T21.7O
ut least each year and the state
would get nothing Last year the
state got S1O5.S65.S5 and the in
Spectors a like amount and the state
paid out nothing.
The Goodrich bill repeats the for