Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1918-05-27

! had been contested before the state
board OF equalization were 10 be
| kept alive and that pending the
cases the state auditor was TO col
lect all taxes upon these restricted
Indian and Usage leases and hold
the moneys SO received IN a separate
! fund, pending a decision in the state
supreme court and also, IN the
| United states supreme court--in the
event the action agreed upon was IN
due course prosecuted there This
proceeding was followed by an
agreement between attorneys rep
resentinc the producers and the at
torney- general that a case should
be brought in the state supreme
court of oklahoma This case was
duly filed in accordance with TINS
agreement. In the state supreme
court and a decision rendered py
that court favorable to the state or
Oklahoma Immediately upon the
rendering Of this decision. the case
was appealed to the United states
supreme court with the result that
the court held that the gross pro
duction tax Jaw, SO far as II anplled
10 restricted Indian or Usage leases
was invalid Recently there We're
cases decided in the United StaI
supreroe court where the GYPSY Oh
comranv, and others. had gone al
rect from the federal district court
10 the United states supreme court
/ | understand that practically all the
/ points involved in the agreed case
were in the Gypsy case recently de-
rided However the case covering
the agreement herewith enclosed was
The case Of the Large oil company
VS.. e. p Howard as state attorney,
and is still pending in the united
States supreme court
"At the meeting Of the state board
| Of equalization a week ago TUESDAY
| ! called attention to the decision that
| had been rendered in the other cases
/ 2nd informed the board that my
mail was full Of letters asking Tor
and inquiring about refunds under
! this decision At this time. the at
/ torney general stated that the case
| decided in Washington was not the
1 test case agreed upon by myself
| the board Of equalization, attorney
] Ceneral and attorneys representing
/ those owning leases on these lands
/ but that in all probability all points
! involved in the agreed case were Gov
/ cred in the Gypsy case Just decided
He stated, however that he had not
yet received a mandate OF the court
| in the Gypsy case and that unuI
such time as this was received ne
was not in position to advise me
Dturther relative to the same. This
! morning | hRd a conversation with
/ Mr. Freezing, the attorney general
and was further informed by him
| that he expects, within the neXt
/ few days. to have further informa
/ tion on this matter. In the mean.
! time. ] am preparing the records OF
! this department so as to be able tc
act promptly when | am advised
| by him as to what my action, under
The conditions, must be. You vii
! observe that in this motion IT wounc
up by saying:
And that IL he the sense of tn,
| board that pending these suits thai
the state auditor enforce the Law
ds upon the statutes by collectine
! all taxes on this restricted and Osagt
| land except where he has been en-.
/ 1oind from doing so by the fedora
! court or the state court, but thai
| SUCH collected taxes be held in said
segregated fund to await the action
or the test cases as hereinbefore
provided, and if it should be finally
decided that this tax is not col.
iectable, the amount so paid and held
| by the state auditor in such secre-
gated fund shall be payable on de-
inand to individuals, persons. firms
ana corporations, having paid the
TAX, without further proceedings "
Ihis question sets out my duties
In this matter and for the informa-
tion of all concerned, I beg to in
form you that so soon as am ad-
Vised by my legal advisor, that it
Is my intention to carry out this
paragraph to the letter and to re-
fdnd to all parties, whether large
or small--having paid in tax on
any OF these restricted Indian or
Usage lands all moneys they have
pald IN on them since the date Of
ms motion, which was June 20
1910 as tast as claims are made for
Fame ana the records as 10 the
money having been paid in and the
tact that they are restricted Indian
iands, has been checked. In tbjs
connection, permit me m sat. ,ha, ,i',
the Interpretation of "restricted rn
OF the operations on said leases was
veste% In the United States tbrouSb
the indian Agency during the tine
that this tax was paid. Also ner
init me to call attention to the Tact
tlat IN some quarters an innnra.
sion has been gained that II aIso
+liects the tax upon comnoarcjaI
leases For your information ana
the information of all concerned
neg to say that the validity Of tba
tnree per cent gross production ,ax
mas never been attacked in tba
courts as II relates to conmerctaI
leases and, consequently the decisior
rendered at Washington recently has
no bearing whatever upon the nav
ment OF the tax upon commerciai
leases. eih'
Mr. Howard also enclosed the
following '"e
on the motion of Mr. Howard
the attorney general is instructed Ia
agree on cases TO be brought hv
the oil producers to test the 1ues- /