The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1919-12-05
STANDARD0ILC0.
IS MADE GOAT in
TAX LEGISLATION
Trust Contends in Committee
Hearing 1t Is Discrimin-
ated Against
PUBLIC UTILITY BILL UP
Conference to Be Held Tonight
On Measure That Estab-
fishes Precedent

! SAdlSliiS lLdl IL IS improperly ulS-
criminated against in the classification
for taxation Of gasoline manufactured
by the several processes, the Standard
Oil Co. has appeared before the joint
committee on taxes ana tax laws at
several hearings this week, seeking to
have eliminated from the amended oil
tax bill a provision which assesses a
tax of one cent per gallon against the
Standard Oil Co., while independenr
companies. using other processes, ar,
required to pay but II cent per gallon
on gasoline.
The Independent oil companies are
siding with the Standard Oil co. in its
fight. The Standard uses the Burton
process in the manufacture Of gaso-
line, producing what is known in the
trade as a "crack' gasoline None
Of the independents uses this process,
but in the committee hearings this
week they have signified willingness
that there be eliminated from the oil
tax bill the provision penalizing gaso-
line containing unsaturated hyrdo-
carbOns, which would place the Stand
under the North Dakota law.
MANY OIL MEN HERE
Oil company and association repre-
sentatives here for the hearing are
John D. Reynolds, secretary of tha
American independent Petroleum
league; G. l.. Mcguire, president of
this league; T.. +. Grant, secretary OF
the Independent Oil Mems association;
G. G. Smith of the American Petroleum
institute Of New York city, which is 4
national association OF mail oil pro-
ducers, including the standard as well
as the independents; J. Fl. Shipton Of
Minneapolis, district manager for the
Sinclair Refining Co.; +. w. Lehman,
general counsel for the Western Petrc-
leuln, W. Rofluers associat lon; Clifford
Thorhe. ;gsen1aral counsel for the Inde-
pendent Petroleum league; II. M. Wi,-
son of the international Oil Co. of MI.
not. and A. W. Lindquist of Fairmouns,
representing the Independent Oil Co.
These and other representatives were
present last evening when joint COM
mittce held hearing upon a bill which
would declare oil companies publ:
utilities, place them under the control
Of the state railway commission, and
give this board power to regulate
prices
NATIONWIDE INTEREST
Senate Pill 6, which declares pipe
line, companies for the transportation
, of gas. oil or water and oil companies
engaged in the business Of selling or dis
tributing petroleum products or by pro.
ducts used for the generation of light,
heat or power, is said to be without
precedent in America, an dthere is ma
tionwide interest in pending legislative
action ion this measure. 1t is a bill in.
! troduced following approval in the Nom
partisan leagues secret caucus, whica
means that it is an administration
measure,
I'm the case Of oil companies"
the bill provides, "the commissioners
shall regulate the selling price Of Pc
troleum products and by-products on
the basis Of refinery quotations, and
shall fix the schedule Of such price.
which they may change to modify from
time to time, 50 as to keep North Da-
koa prices as nearly as possible on the
same level as the prices in adjoining
states under similar conditions. and so
that such prices shall at all times be
reasonable and just; provided that in
no case shall the North Dakota price
exceed margin of more than thirty
percent above such refinery price, after
paying all taxes, freight charges, in
spection fees and reasonable local stor-
age and distribution costs; and provid-
ed further that the commissioners may
require any oil company to furnish
them with the data necessary for the
determination Of the prices on, such
schedule
CAN REGULATE BOTH WAYS
The commission is given power to fix
n lower price for any petroleum pro-
duct or by-product WHEN in its judg.
ment conditions shall warrant "and
the public interest shall require such
lower price, and the commission may
establish minimum as we'll as maxi
mum prices for the purpose of prevent
ing unfair or destructive competition.
The bill is regarded as aimed pr.
marily at the Standard OH Co., towar1
which hostility has been evident in the
committee hearings held on the amend.
ed bill The company is objected to.
apparently, on two counts, first because
1t is a trust and secondly because it -
charged with making big profits.