The sun., 1918-09-06
MEN
OPPOSE TAX BILL
Declare Its Enactment In Pres
ent Form Would Menace
Production.
RATE FIXED TOO HIGH
Cost of Crude Oil Only Slightly
Hfgher-Outturn Expenses
Increase Greatly.

The war revenue bill II enacted ipto
law as IL now stands would seriously
menace the production Of petroleum ana
endanger the present supply Of oil, &C
cording to a report Just made public by
special committee appointed by the
National Petroleum War Service Com
mittee to hold conferences with promi-
nent oil men relative to how the war
revenue measure would affect the petro-
leum business.
When 1t was proposed to further tax
oil production Z. c. Bedford. chairman
Of the National Petroleum War Service
Committee, in June appointed q speciai
committed, consisting Of Henry L. DOH
erty, chairman; r. L. WEIGH. Frank
Haskell, ]. c. Donell. H. M. Blackmer,
w. 8. Parrish. II. F. Sinclair. j. ID.
Markham, ]. e. O'Neil and J. F. Quincy.
The report Of this committee, made
yesterday and prepared by Mr.. Doherty'
presents a most pessimistic outlook TOT
petroleum production, intimating that
practically all prospecting for oil Will ne
abandoned in the event the oil pros
pector must continue to bear 100 per
cent. of the loss IL his venture Is a
failure. but in the event OF success must
so per cent. OF his earnings.
Production Costs Increase.
OIL producers declare the price of
crude oil has not been advanced much
beyond the price which prevailed prior
to the outbreak Of the war. while every
thing which the producer must use for
the production Of oil has advanced enor-
mously.
1t is stated in the report that the full
effect OF the new tax bill Is not yet
fully appreciated by the class Of oil pro-
ducers who make a business Of Wild
eating or prospecting> and as this be-
comes increasingly apparentto them, the
oil men say. the disoouragement Is bound
to become more general.
The committee says that under the
provisions of the new revenue bill tho
sale of properties by the wildcat opera
tors to larger marketing companies 10
made practically prohibitive because a
sale must be construed as a realization
Of profits which Immediately become pay
able to the Government to the amount
% upward of so per cent. Tho report
states that with the capital OF these
wildcat operators tied up In existing
properties they are unable. even II they
might be willing. to finance and SUPER
wise further exploration operations.
In part the report says:
Few commodities are more needed to
enable US to win this war than petro-
leum. As a patriotic matter we are try
Ing to hold down prices far below the
corresponding prices we must pay for
our materials and labor. The most con-
sentative statement that can be mada
regarding the existing revenue bill Is
that under It the production OF oil Is
seriously discouraged and further legis-
lation OF this character is apt to prove a
menace to public good"
Regard Bill as Drastic.
In giving the report to the news
papers Mr.. Doherty called attention TO
| the fact that 1t was made before the
present revenue bill was framed, adding
that the present bill is still more drastic.
I'm my opinion" declared Mr.. Doherty.
at seriously endangers our supply OF
crude OIL"
When asked what the OIL industry
intended to do Mr.. Doherty said:
THE matter has been referred to
Joseph F.. Guffey and myself for con-
| slderation. We do not> feel that we
can be put in the light OF opposing
| war revenue bill. However, II Mr..
Guffey agrees with me we will recon-
| mend that the Petroleum War Service
committee frame ulBnlneO COMMUNE
cation to be sent to the fuel division
Of our Government with the recon-
mendation that they bring the matter
to the attention OF Congress-"
Mr. Doherty said lhe revenue bill
makes the mistake of CHASING gasolene
as a luxury, whereas It Is proving a
strong means of conserving man power
! and that only a small percentage of the
gasolene output Is used for pleasure
purposes. He added that a burdensome
| tax on gasolene would indirectly lessen