The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1919-07-11
OIL TAX LAW Is
ATTACKED US.
DISTRICT COURT
Standard Oil Co. Alleges That
Its Taxation Is Increased
From $4,000 to $275,OO0
PEOPLE PAY THE BILL
Levy of One Cent Per Gallon
Must Be Passed on to Con-
sumer If Act Is Enforced

Alleging that the tax burden on its
North Dakota consumers has been In
creased from $4,000 to $275,00O per
annum by senate bill No. Al, passed
by the 10th assembly, the Standard
Oil Co. of Indiana has applied to Judgt
Amidon in the United States district
court for the southeastern division OF
North Dakota for temporary restrain
ing order enjoining state officials from
enforcing this statute S. B. Al levies
tax Of Ia to cent on each gallon
of oil sold in the state.
The injunction petition is direct
ed to Obert Olson as state treasurer;
William LANCER, as attorney general;
Carl Kositzky, as state auditor; E. f.
Ladd, as state oil inspector, and
George E. Wallace, as state tax COM
missioner, and to each Of these offi.
cials as individuals.
A hearing on the injunction order
will be held as soon as Judge Amidon
can arrange it, said Attorney General
LANCER this morning. Mr. LANCER will
represent the state in this litigation,
and he seemed condifent today of vic
tory. Judge Amidon regards 'hhe &C
tion of such vital Importance that he
will not hear it alone, but has an
nounced his intention of calling ip
cwo judges to assist him.
Allegations in Complaint.
The Standard Oil Co. of Indiana
contends that Senate Bill Al is con-
trary to and in violation of Section 1
of the 14th amendment and Section 8
of Article / of the constitution of the
United States and contrary to and in
violation Of the constitution of the
state of North Dakota and 1t asks
that the defendants be enjoined from
applying or carrying into effect any
of the provisions of this statute and
that the collection of taxes "purport-
ing to be authorized and attempted to
be imposed thereby upon plaintiffs
property in the state of North Da-
kota" be enjoined.
The Standard Oil Co. alleges that
Senate Bill Al is in violation Of Sec
tion II of the constitution Of North
Dakota, which provides that "all laws
of a general nature shall have. uni
form operation" and Section 176,
which provides that taxes shall be
uniform upon the same class of prop
erty." It is also urged that the act
violates subdivision % Of Section g.,
which provides that the legislative as
sembly "shall not pass local or spe.
cial laws 80 for the assessment or
collection of taxes
Big Tax Increase.
The plaintiff asserts\ that it's per-
sonal property taxes on oil for 1918
amounted to about $4,000, while II
the taxes specified in S. B. Al had
been applied such personal property
taxes would not have been less than
$275,0O0. Such a tax the company
contends is unfair, unreasonable and
unjust and would subject the plaintiff
and "A other companies selling oil in
North Dakota to a discriminative and
unfair burden many times as great
per unit value or volume of business
as the tax burdens imposed by North
Dakota upon others engaged in the
state as wholesalers and jobbers.
The plaintiff takes exceptions to the
distinctions made under the act be-
tween "straight-run' gasoline and
gasoline produced by other methods.
It contends that as result of this
classification all the gasoline sold by
the plaintiff or by it stored in North
Dakota for sale on and since March
/, 1919, and all gasoline hereafter to
be shipped to North Dakota for sale
therein will be subject to tax of one
cent per gallon, If this statute is held
valid and enforced, because it is i'm
possible to determine the amount, If
any, of so-called 'straight-run' gaso-
line so stored or sold by plaintiff"
The company further contends that
the statute, II enforced. will amount
to a regulation of, burden upon and
discrimination against interstate COM
merce, in violation of Section of
Article 1 of the constitution of the
United States.
Heavy April Assessment.
The plaintiff alleges that during
April the taxes assessed against it for
$36,97S.77, covering 2,424,491 gallons
Of kerosene at one-quarter of cent
per gallon, and 3,O91,754 gallons of
gasoline at one cent per gallon, and
it asks that the state treasurer and
state auditor be enjoined from the
collection of this tax. This burden, if
the act is enforced, must, says the
plaintiff, be passed onto the con-
sumer.
Attorneys for re Standard Oi! Co.
are ]. S. Watson and N. c. Young of
Fargo; William D. Mitchell and
Pierce Bunton of st. Paul, and
Chauncy w. Martyr of Chicago.