Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1917-11-26

and to a much greater extent than
any other bus ness. IN order t. main
tain production. Furthermore, suCn
reinvcstInent is always subject To the
haza res OF this highly speculative BUS
mess and in many instances resolves
Itself into complete dry-hole loss.
also including amounts paid as Do-
muses. for any leases so condemned.
In many instances operators will ne
deprived of such amounts as viii Sc
rlousl. and mater ally Interfere with
their future development work ana
reearllcss of their desire to maintain
the present production they may find
themselves financially unable to do so.
IT. this connection 1t appears that
eliminating only ono field in which
production IS unusually large at the
present time but in which only a com
pnrntNcly few share, that large re-
investment i'm drilling and develop
opment has failed in the average To
maintain production.
we further recommend that these
considerations should be urged, upon
hotn the treasury department ana
congr'ss.
We further recommend that an
amendment should be secured 10 eN-
istinK laws whereby taxes may he paid
in fIve annual installments; the gov
orntnent to he protected by suitable
provisions securing the tax by lmpos-
ing lien on the taxpayers assets.
We further recommend that the IN
dus.rN should secure a uniform rate
OF dep,eciltion allowance on physical
tangible property used in developing
I and operating OIL leases, and while Il
! is conceded there u difference In
the rate OF depreciation on various
classes of property, still, considering
the matter as a whole and making al
/ lcwapce for these differences, UNI
/ form rate Of 20 per cent would bo
| lust and fair from the standpoint o.
/ both the government and the oper-
ator.
/ We further call attention to Treas
|urv Decision No. 2447. which empha-
sizes the unjust application OF exist
ing provisions of the law Itself, Wnlch
have the effect OF denying depletion
OF flush production, and suggest tnat
an amendment SHOULD be made TO the
law itself If necessary, automatical ny
adjusting depletion allowance to the
amount of the mineral produced
whether ON a flush or settled OASIS
We further direct attention to the tac'
that various other provisions OF TINS
regulation are ambiguous and in the
and discriminatory. We regret TO re-
port, however. that we have encoun-
tered "A conflict of opinion on this lat
ter feature of the regulation and
therefore feel that il is beyond our
proper province to make any recon
mendation in regard thereto.
We further call attention to the fact
that the country was led to believe
that congress was considering and in
tended to pass war excess protit
tax: that the first drafts of the bill
and the original reports Of the com
mittee conclusively show that the tax
alton would be levied and raised OF
that basis II came as a surprise 4
: the industry that this idea had beer
entirely abanoned and that the bill II
substance as finally passed simply
amounted to super income ta'
and that no distinction was made be
tween profits attributable solely to th'
war and profits made in businesse'
: the profits of which were not affected
.by the war. 1t is manifest that the OF
and gas industry falls within the lat
ter classification. Your committee ha!
secured figures and statistics from re
liable and dependable sources whicl
b conclusively estab blish the fact that tn,
oil and gas business has not benefited
b To any extent as restpt of the war
and this includes the period Of tn,
, European war prior 10 our entranc,
therein.
Your committee further reports tina
the commissioner OF Internal revenue
the Hon. Daniel G. Roper, has desig
, mated Tuesday. November 81. 1917. a
3 o'clock y. m. In the city of Wash
, ington, d C.. as the time and place 70
a hearing OF these matters, and w
/, recommend that the executive com
, mittee Immediately take action an,
, name n committee and arrange for ii
attendance at that time.
We further recommend that furthe
- and Immediate action as already rec
omended be taken for the purpose o
, presenting the entire matter In tn
, proper way to the congress itself II
> the hope aud expectation that wha
: we deem to be the fundamental AM
, necessary relief be afforded by amend
= ments had at an ensuing session o
- congress.
{ In conclusion we desire to stres
and emphasize these points:
. We have found no member of tn
=, industry who desires to unduly profl
e or for that matter, to profit TO an
J extent because OF the war On tn
= contrary, we have found the entire in
= dustry OF one mind and one purpose
! that the war shall he fought to
i successful conclusion, and that the in
dustry stands ready and willing I
! contribute by taxation or otherwis
any percentage of both income an
property, as may be necessary to attai
7, that end; AZ ing only that other prop
. erty and ot.er industries be taxed, q
, their property taken, to the same ex
: tent and upon the same basis, an
= that discrimination to its detriment /
the only feature of the present law
: against which protest of criticism /
directed.
el This protest and criticism subdivide
. in substance:
A. The theory of war profits shoul
e largely be the basis OF present an,
81 future taxation, and II any of tn
profits of the industry are war profits
$ which, however, as a result of tn
= committees present Information. mus
| be denied. no more is asked than tn