Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1917-09-30
BARTLESVILLE OIL MEN
PROTEST REVENUE BILL
Declare Excess Profits Section
of Proposed Measure Un-
fair to Producers.

WASHINGTON. Sept. 2s.-Inde-
pendent oil producers OF Bartlesville
nave wired Senator owen and mem
bers Of congress protesting against
tne provisions of excess profits pro-
Vided for in the revenue bill.
The undersigned companies and in
dlViduals producing and controlling
an actual daily production of approx
iinately one hundred thousand bar
fels OF crude petroleum, earnestly
urge that revenue bill for payment
OF excess profit taxes provided for
the payment of each years taxes in
1nstallments extending over a period
of not less than five years. Taxes on
money derived from sale of oil and
gas on basis of excess profits is mani
festly unfair for the reason that it
amounts to the payment of taxes on
money received from the depletion
of capital, as every barrel of oil and
every thousand cubic feet of gas pro-
duced and sold means the depletion
of capital to that extent Taxation
or practically every other form OF
revenue is taxation of income strictly
speaking. To illustrate, take the
rental of a building at the end of a
year; after allowable deductions for
depr eciation the owner has entire
capital left, but not SO with oil oper-
ator. as capital Is reduced to the eX-
tent cf his pro o1uction, and it Is only
question OF a few years until the
entire capital is exhausted In tax pay
ments. This also will have tendency
to reduce amounts invested in extern
sion Of oil developments. If, in addi-
tion to this discrimination, Oil and
gas operator is forced to pay excess
tax in one payment financing of ad-
ditional development will become
mos; difficult and the production of
oil and gas will therefore be greatly
curtaied. This is the very thing the
government Is anxious to prevent
owing to the great Importance of oil
as n war commodity. The govern
meHt, thru its various departments
ana many other channels, has en-
deavored TO stimulate the production
of oil, while the bill as framed has
the effect of multiplying all this work
As you may know, wells steadily and
continuously decline and constant
drilling is required to keep up the
present production of oil and gas
and considering the present prices of
material and labor, money must be
readily available in order to insure
the maintenance OF the present pro.
duction. We want it understood that
we do not object to paying any fair
tax the emergency needs of the gov
ernment may require, but under the
suggested change. the government
will benefit to same extent as tho
money was actually collected and at
the same time we will have the use
OF the money to finance our opera
tons. Also, because of enlarged oper-
atiors which would result from re
investment taxable income will be
Increased and the government will
thereby be financially benefited
Furthermore, more sconey would be
In circulation and availa BILE for the
purpose of absorbing government
loans. etc. Please present this to
your body Of congress and the proper
committee.
Chamber of Commerce, H. V. Fos-
ter Indian Territory Illuminating Oil
Co, Foster & Davis, Inc, Delmar Oil
Co. Westerly Oil Co. Glover Drilling