The citizen. [volume] (Berea, Ky.) 1899-1958, 1919-05-29
PROTEST BACK TAXES
Oil Men Feel That the Suits
Brought BY Officials
Are Unfair
Thomas ~ owslsy and =. 3. Tomb
Express Opinions In Regard 10 At
tempt 10 Collect from Interests in
Excess Of Production Tax.

Lexington. Ky. May 2G.-Oil men
~ Kentucky are up in arms over the
suits hled In Estill aud Lee counties
for taxes on oil wells and leases, in
Guiding back taxes on land which for
years was worth practically nothing
and on which the oil men have volun-
tarily increased their assessments
when the land proved to be produc-
tive.
During the session Of the 1918 legis-
lature law was passed which pro-
vided that all oil wells should be taxed
on" per cent Of the value Of the crude
oil for state purposes and not to ex-
coed onc.half Of one per cent for coun-
~ purposes. Now the auditors agent
IL Estill, which has been developed
s.ele ele g. The p.3ssst to .as 4 'Ls
richest counties Ia the state through
the operations ~ oil producers, Is eli
deavoring to recover thousands Of
dollars Ia back taxes from the oil men,
taxing leases, wells, rigs, every sort -
iInlrsyement, Notwithstanding The pro-
duciiOn TAX Of one and half percent
II stated In the statute TO be In lieu
Of all other taxes o
Thomas NJ OVsley. head Of the Ken
lucky o. Exchange, declared today
that the attempt TO 'mulct" the oil
men In these addltionsl taxes was
unfair and an outrage2 -
THE oil men practically had tie
word ~ the state, expressed through
The Legislature" said Mr. Owsley. ''tha;
the igNes they paid should be limited
y III per cent of their production.
Now along come these tax sharks at
Frankfort and seek not only 10 tax
lands and leases az their value but at
a value that did not exist In former
years. 1, ought not TO be possible TO
put the oil producers 10 the expenSe
81 such suit, though ] do not think
the tax sharks can recover under thN
law.
The bad thing Tor Kentucky N that
II shows q disposition 10 harass those
developing the resources OF the state
and a tess,lency Ia viola.e the promise,
express OF Mplied. given the men who
have bro1ght their capital and their
families expecting TO make II their
resstsSEe ~ well a. their business
home. 7, II hardly likely that Jury
OF fair KentucklanS can be found TO
give judgment IA such suits. but tire
enryt on the stafe az fling them y
sVxh as 10 prevent men with capital
from coming here to invest H."
D. H. Tomb. 81 the kentucky oil
Mems Association. discussed tlre meet.
Ins 81 the Executive C-mmit,ee uf the
association at which these SUR were
considered He said:
1T was the unanimous spinion Of
the OIL W-n present that rnese suits
were unjust and should bc' have been
MED. The oil men feel tHat the pr.
duct."n tax they are paying. and pay
ing clTErfully and without question,
WIS Intended 20 BE- ard II in lieu ~
sli oilipr taxes. This product on taN.
an the basis 81 ~ present yield Of cell
in Kentucky. SrDounts 10 more thin
SasIu - year revenue the s,aie
Il. revenue previous To- The enactment
az iiss Law, which the oil men moi oals
did MT opNrse before the Leg stature
hn consented Ia.
Not only has the oil Industry
helI'ed 'he state in this line. bur a.
furnishing employment To prrvsauslt
icis men n has conyesiesl even ira A
and hanler in the state within a IA
diUs of many miles Of the ell .6sl,i:
pnTerty heinr in demand al high
pyicrs ard rentals for oficsS and
isunss having been IN some cas-s Ts"r,
than doubled. The native p.,yulatiaH
of the OH fields are more prusI.ensu.
aud contented than they ever we've IN
ihelr liNes, land too poor To- IA ss even
a fIisS ON having developed wealth fai
il owners beyond the fondest dreams
O: ibeir poverty.
The committee rightly DECIDED to
nrhi these suits to the court Of high
~ Jurisdiction and because of the va
ried ownership Of these wells and tht
stock In the companies affected. rhis
inay ~ the Supreme Court of ia.
Unlied States The oil men think III
tax nov being agitated 10y the audi
tors agent or back tax collector IL N
fact double taxation; that when the1
pay the production tax. rentals &C
their leases, extremely high wages
hish Gust OF transportation Of supple,
10 and In she field. as well a. PAYING
rentals on leases az doubtful value ~
thai may prove Ia be- Of no value whai.
ever, the proposed additional burden .
extremely heavy and most unjust. ana
will tend 10 make capital in other
states cautious about coming into ths
Kentucky on field. The oil men who
have come to kentucky expect no IA.
vors an the hands ~ the people oI
through the laws Of the state. bur they
do expect equal aud just treatment
from business standpoint. and II lie Z
nied IL will exhaust every recourse &c
secure IT,