The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-09-24
on Ainrhrt unnfnfInna
initiated Bonus BiH WOuid
Hit oil Industry

HI OIL Industry
Local business and oil circles were
shocked yesterday upon receipt of
copies of the proposed constitutional
amendment recently Initiated known
na state Question 1lG' providing
Tor state soldiers bonus Of $50 per
month 10 each veteran FOR each
month that he hCrved and amounting
in tho aggregate to tbO,OOV,Uo0 FOR
which a bond issue is provided, Tho
bill. which will he voted ON al the
general election in November. pro-
vldcs $4,000 600 ls 10 be borrowed
upon the credit of the state and that
taxes are to be- levied beginning i'm
medinteIy nftcr the Issuance ~ the
bonds at q rate deemed sufficient to
pay principal and interest. A vet
Grams commission Is To DE created
which shall supcriptcnd the Issuance
of the bonds The bonds are 10 ma
ture IN such amounts and NJ such
time or times not exceeding 90 years
from date OF issue as the veterans
commission may determine.
Every business interest In the
state will be directly or indirectly
affected by tho heavy tax which IL
provided and levied In the first In
stance agaiust certain business In
terests Among the burden bearers
selected by the authors OF this pro-
posed law are public service corpOr-
ations. such as the gas. electric light
and street railway companies, Banks
loan and trust companies are next
mentioned and then foreign corpora
tiuns and a direct anual tax OF 10
mills is levied against the gross earn
ings Of all individuals, partnerships
ana corporations engaged in the pro-
duction OF petroleum or the manu-
fhcture OF It's by-products or engaged
In the mining or production OF coal.
lead. zinc, cement and all other min
eral resources OF the state.
Tax on Gross Receipts.
II Is pointed out by several local
business men that this IL "A tre-
mendous tnX because IL is levied not
upon the value OF the property nor
upon the net income OF the concerns
mentioned but upon their gross re-
ceipts, business man or company
might have an anual turn over of
million dollars but make no profit.
yet under this proposed bill he would
DO liable for a tax OF ten thousand
dollars. Lawyers are or tho opinion
that the tax may be found Illegal In
certain respects upon certain cor
porations but the bill expressly pro-
vldes that should the courts find any
part. sentence or clause OF II to be
unconstitutional, that fact shall not
affect the remainder thereof. So the
only effect o: partial inyslidity
would be to mako the burden
heavier upon tho others or subse-
quently extend the burden to other
ella sses OF taxpayers
As the bin now stands II In freely
predicted that II will drive many
business concerns out OF the state.
especially will this be true In every
Instance whore the business Ia such
that the tax cannot bo passed on to
the public. or course, In case OF
public service corporations, such ~
gas and electric light companies,
every patron will have to pay
higher rate. while In the case OF
automobile and truck owners
throuehout the state. the price OF
gasoline will necessarily have to be
raised because no refiner could pay a
tax OF 1 per cent on it's gross re-
ceipts and possibly absorb the same
ms a part OF Its expense because the
cost OF the crude oil plus labor cost
and expense OF doing business very
nearly approximate its total gross
receipts at this time. Banks will be
compelled to raise the rate OF inter-
est on all borrowers. Fuel users will
find their bills necessarily increased
because II In n notorious fact that
coal mining companies do business
on almost as narrow margin aH do
refiners OF crude oil.
Would Retard Development.
The bill Is regarded by dlslnterest-
ed observers TO he a distinct blow to
the development OF the state gem
orally and especially to the cities and
towns who cannot hope during the
next 40 years TO induce manufacture
ing business and other Industries 90
establish plants in this state.
Chambera OF commerce throughout
the state are volcing their opposition
'in no uncertain terms There are
suggestions on every hand that the
Tulsa Chamber OF Commerce should
call meeting at the earliest possible
date in order that this vicious piece
OF legislation may be explained and
he thoroughly understood before the
people vote upon It at the election
next November.
The tax levyins clause OF tho bin
Is as follows;
section 30. The bonds author
iged 10 be issued by this amendment
and the interest that will accrue
thereon shall be paid out OF fund
20 be provided by the levy and col
lection OF n direct annual tax upon
tho gross earnings OF all public serv-
'ice corporations. banks, loan and
trust companies, and foreign corpor'
htions, the tax on the foreign cor
pOrations ia be restricted TO the bus
.iupss done by such COrDOratlOni