Great Falls tribune. [volume] (Great Falls, Mont.) 1921-current, 1921-02-23

1.-The bringing in Of outside capital and
exploration of the yet nndeveloped oil
territory OF the state is the almost
universal preference Of business nen
of Great Falls, according to sentiment
expressed at meeting of more than
80 representatives Of business interests
here at the Hotel Rainbow Tuesday
afternoon.
The primary purpose of the meeting,
which was. called by Judge j.. L. Call
away to take steps against pending
oil legislation providing for a three per
cent gross royalty tax on all production
of oil lands where leases are given by
companies, corporations or individuals
and a one per cent gross royalty tax
on production from lands leased from
the state.
The contention Of the oil men, ex-
pressed by A. r. Findlay, representing
the f. A. Durham Oil Co.. which is
now prospecting on the Willow Greek
structure in Teton county, is that the
special royalty tax contained in house
bill 115 is disproportionate to the in
come of the oil operator and will dis
courage promotion of the oil industry
because it bases it's levy on production
without taking into consideration the
cost Of production.
Industry Undeveloped.
"The bill is made absolutely in the
dark" declared Mr.. Findlay. 1T does
not take into consideration the money
that will have to be spent in specula-
ton before the fields of Nominal can
be proved and the average, cost of
production from wells of the state de-
termined If the Montana fields were
developed to the extent that older oil
districts of the country are so that
the amount of profit possible could be
determined such tax would not be SO
Objectionable but the pending law pro-
poses very heavy tax on an industry
that has not yet been proved.
Il am Of the opinion" the speaker
continued. that if the law should
pass it would greatly hamper the oil
development in the state for the next
two years which would mean that =
valuable asset to the state would be
throttled at a time when it is most
needed
Discussion Heated.
Considerable discussion, almost heat
ed at times followed the talk by Mr..
Findlay. 3. J. Boorman took the
floor to urge that the state s power in
controlling industries be upheld to the
fullest extent, declaring that too many
state resources had been given away
to large corporations in the early his
tory of the state.
II do not Think said Mr.. Boorman,
that stringent safeguarding Of the
resources of the state will in any way
hinder the development of the oil in
dustry and the states resources have
already been hard hit BY concessions
to big interests, the railroads in par
ticular." NJ
clared he was in favor of supporting
the governor in his recommendation
for the oil tax and stated he did not
believe the assembly should take sides
either for or against the measure OF
the ground that those at the meeting
could not have sufficient knowledge OF
both sides of the question.
Peters Makes Answer.
julius Peters Of the Homestake Oil
Co., answering a statement by Charles
r. Hansen that the tax should be
levied on the gross income of Oil opera
tors, sad:
There is no question but that :he
oil men will be willing to pay a fair
tax, but simply because there is hope
of good oil production in Montana is
no reason why a disproportionatc tax
should be levied on an infant industry
IF we intend to bring outside capital
into the state to develop the oil re-
ment and give them some assurance
that they will be able to make a rea-
sonable profit on their investment
| If we do not do this we are not going
, to be able to get the fields Of the state
: explored
Judge Galloway then answered Mr.
: Boorman's declaration regarding the
, giving away Of state resources, saying
. that under recent laws the states ma
+ tural resources have been properly con-
served.
Speaking on the proposed three per
, cent gross royalty tax on oil operators,
Judge Galloway stated:
Small Operator Hit.
7 ut is the concensus of opinion that
, the proposed three per cent gross roy
: atty tax on Oil operators will not hurt
: the big operators to any great extent:
they will be able to get along well
enough with their big backing but it
will absolutely eliminate the little fell
low"
After discussion as to the effect
q of the recent reductions in the price
t Of crude oil, which is now $175 bar
d rel instead of So 10 as two months ago
julius Peters said:
s "Unless the price Of crude oil adj
: vances, drillers in the Cat Greek dis
: trict will merely protect their leases
and will virtually cease further big de-
velopment work until they can get q
better price for their product.
Would Cut Development
"Levying Of such tax rs proposed
by house. bill 115 will tend even further
\ to reduce oil exploration and specula
ton" he continued. II believe that oil
operators should be taxed on their net
: proceeds by system similar to that
: employed in taxing the output Of
n Mines"
e Attorney George Judson was loudly
r applauded when he advocated that
every step possible be taken to encour.
age the bringing in Of capital to de.
q velop the oil industry and urged that
d those present devote their energies tt
:. fighting the tax proposed in the legis
|! lature He declared that the revenue
I from the prosperity which would result
from oil development would amount tt
far more than that which could be
derived by the tax. which, he said
would probably stifle the industry De.
fore it was we'll started.
Applause browns Comment.
Mr.. Lease arose during Mr.. Judson's