The Wheeling intelligencer. [volume] (Wheeling, W. Va.) 1903-1961, 1921-01-24
TAXES ON OIL AND
GAS STRONGLY FAVORED BY BLUE

method Replacement. While X IS nc
ing 50 exhausted something IS hclnE
taken away from uS--SomcthlnG that pH
ordinary methods Of taxation cannot DC
reached. Ordinary methods viii not
Civ TIA" return which tho state has inc
riGHt 10 demand. 4 man may nave
piece Of land with value rs an oil prop
crtv. Near him may be another section
without this product The Two UNI!
IN" gas Is exhausted. are taxed IN such
n manner now rs to make tho iirSt
very little bit higher. hut when the gas
IS gone tho property dcprcciatcs. lcaN-
ing the man with tho tangible property
the land shat is replaced and main
Gained, with the burden to bear.
would Tax Other Products.
in general. this applies 10 all natural
products Coal. limestone, fire clay,
lumhcr--:n fact, every natural product
, Of tn" Statc--Should, in my mind De
subjected 10 such taxation. Oil and gas
however. fall particularly within INC
scope of the proposed law as products
which arc unseen and to certain en-
tent unknown. They arc primarily the
property OF tn" state. \ man may
r. aspect into coal land and, having de-
trr.nincd its value, let 1t lay untouched
, Gas and oil are. however. different. y
man might be able to identify the coai
on his land. but no man can separate III
. his own well any particle OF gas anu
say That came from my land.
In this legislature tho production
tax has been discussed as only ono or
number of possible ways Of taxing nat:
ural resources. The revenue method
has been brought up, putting tax on
. gross sales, and pipe line taN"s Tor OIL
and Eas--all OF which have been sup
ported as strong and reasonable mcth-
DDS. Personally | prefer production
tax to be assessed at the point of pro-
duction 70 any other form; first. because
believe that that method Will give the
state more just and adequate return
for the loss in its natural resources:
again because II seems 20 me TO be IN"
way most free from legal attack and
complications, and because II appears
TO be the easier method of justly laying
Possibilities Enormous.
Mr. Blue was asked as To the probable
total returns to the state upon indirect
taxation of this kind and pointed out
that the possibilities arc enormous.
Taking the four most important nat {.
ural products" he said, in the order or
their production and place on them the
lowest consistent rate Of taxation ana
the returns would amount TO millions.
| wouldn't care TO estimate how nue.
may DO obtained hut there Is produce"
In this state annually about two hun
dred and fifty billion cubic feet Of gas
which at the very low rate Of ono cent
per thousand cubic feet would produc"
annually two and a half million dollars
There are eight millions o. tons OF Goa!
, mined annually. At one cent ton this
would produce 100000. while there are
$500. 900 barrels of oil produced every
year. which at ton cents per barrel
would give the state a return Of $4,000"
while two hundred million feet or timber
,.ut here every year could h. made ~
produce nimmPnSC revenue. These
ngureS cited would probably not constI-
tute fair taxation hut they give an idea
as 10 tn" possibilities Of an indirect tax
on production