Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1918-01-15
W. II, Gray Tells Of Trip TO
Washington on War
Tax Protest.
BETTER COOPERATION URGED
DR. Rittman Declares Imme-
date Action Better Than
al Critical Time.
lIsN ". IL PECKN

~ ID meeting of natural gas manu-
fnr'drors last night at Hotel Tulsa
ili subjects or, interest which affect
'h' Industry most vitality were taken
ul. Several sst speeches were made,
and following these "a general discus
Ion was taken up
or al talks the report OF most vital
lmportan6o "lS delivered by w. AZ
Gray OF the -tjes GASOLINE company,
Ma Gray. wac is an authority on mat
tors pertaining to the Manufacture OF
gasoline from natural gas. was Ne
'crtcd some .imo nRo by the different
,asinghead men 10 10 to Washington
hnd investigate the wnr tax law in its
Application TO the clsinRhead and ab-
Nurptipn gasoline manufacturers. aud
therefore we'll up ,Qn tax mntterH.
Mr.. Gray explRincd that while In
Washington he found the usual diff
oulties OF explaining the situation 10
s"-cHll"d experts OF the government
who carry out the program II taxa
tinn more by theoretical knowledge
} than 10y actual tax experience. but
told that he managed 10 get a hearing
with a special committee appointed by
/ the treasury department for tho pur-
pose OF explaining the unjust clauses
lcf the tax law aud Ia reconime nd
amendments. The law ms II stands fig
ureE all income OF n plant as not profit
and the refinery must pay along this
line, Under present conditions the
operator o: plant must pay IN taxes
30 per cent OF the gross Income. The
law further takes for granted that
he natural Sfis refner is In business
forever and that the supply Of gas for
operation OF the plant IN unlimited.
Makes Recommendations.
MIR. Gray while going 20 Washing
ton urprcpared. had a few facts upon
which to base his opinions and, com
bining this with hts bast Judgment.
made certain Recommendation that
the goyCrnment arrive at a fair bnsfs
for depreciation and depletion For
rhs ho advisGl the committen that
33 1-3 per cent per year TO he the
proper basis. He explained to them
the gamble aud hazard ofsth business
as being more than any other particu-
lar branch Of the petroleum industry
and made the fact clear that plants
only average on an average OF from
20 10 25 per cent profit per year, con
sldering depreciation and depletion,
and tod what things are considered,
whep a plant is pttsehased
Whilo II Is too soon to know def
nlteiy, MIR. Gray stated that the com
seemed Impressed and took his report
az evidence. He hopes for n Just
nmendment to the law by 1919 at
least and possibly before II is payable
In June OF this year
News 'recentely received from Judge
Shea who IN In Washington repre-
sentinR the Mid-Continent OH A. Gas
association on matters OF taxation.
bore the fact that ns the situation now
stands things looltiy likely that a basis
of depreciation and depletion win be
decided upon by the government. II
so. things look like MIR. Grays efforts
are beginning to bear fruit
Max q. Cohen OF the Oklahoma Pc
trolcuIn e. GASOLINE Co, gave n short
address. after Mr. Gray'a address, that
was Of much interest He told very
forcibly that the natural gas gasoline
industry should be taxed only, under
tho consideration OF five most impor-
tant factors namely: depletion OF
plant, depletion OF the gas supply.
uhsoiesccnce, the hazard OF the bust
ness. aud amortization. Obsoles-
cence Is based upon up date ma
chInery Under hazard of the bust
ness. was taken up the danger OF eN-
plosions which destroys the plant and
robably the lives Of workmen, which
necessarily have to be paid for; and
findcf amortization, was taken up
the basis OF value of tfs plant. which
les dependent syon tho life Of the crude
contract,
Immediate Action Necessary.
Or. Walter Hlttman impressed
upon all that he time for action is
now at hand and commands imme-
diate action Ito said. USUALLY peo-
pie wait until they get a crouch on
before they 20 TO Washington and !
then. whilc there, they make the sit |
uatluu worse Instead OF better" Fol |
lowing. he quoted Secretary Lane as
being in favor Of "a few overall men |
instead ot the numerous lawyers with |
gghichc, he had been accosted," and !
praised the ability " Secretary Welch |
Of tho WeetSrn Petroleum aRefiners !
association who, ,,ls now on the job In !
Washington and is doing great work !
Being scientist OF great note Mr. |
RittfnRn's talk naturally drifted 10 /
scientific channels, and he explained !
the importance Of the oasinghead /
product Ar Rittman considers cas-
invhend gasoline as the most impor- /
taut motor fuel product in existence, /
''rhe demand FOR npotor fuel In in
NJ the rate Of 20 per cent an /
nsnlly," he said, "nnd with no notable |
inoreHee in the proxrStion OF this |
WO must meet the increased /