The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1922-02-14
The Tax Problem
As SOIped by Experts

| Whlle at the present writing there
seems to be less doubt of tax on
gasoline being imposed by congress,
than during the closing hours of the
week Just gone, II Is nevertheless a
question that Is worrying the oil
men, and they are all with one ac-
cord, asking: What kind OF an ad-
ministration is this, that would re-
fuse to put tax on the import of
oil from Mexico, and then even sug-
gest a tax on gasoline and automo-
biles?"
Right now the big manufacturers
are putting on big cut In the price
of tractors. TO reduce the expense
thereof. so that farmers can use
them in the place OF horses. Ono
cent per gallon would be n tre-
mondous handicap, should that be
levied on gasoline.
Fortunately; , some of the best
known and most prominent oper-
ators have contributed from the
wisdom gained by experience, 10 this
subject, and the quotations follow:
This From ii. ii. Gray-Prcsldcnt
Aztec OIL Company and OF the
independent oil Mems
Association.
II am heartily In accord with the
views expressed by Mr.. Schock Of
the Western Refiners association
that the proposed tax on gasoline
would be a heavy burden for the in
dustry to bear. and exceedingly
onerous on the independent refiner.
Personally l am opposed to pay
ing a soldiers bonus. IL. however, a
soldiers bonus is to be paid. the
portion OF IL which is to be levied
upon the OIL industry should be
levied upon the oils being imported
In here from Mexico. Some OF our
statesmen at Washington seem to
be bent upon the destruction OF the
oil industry In this country and the
recreation of 1t In foreign countries.
Continued burdens are being added
by the federal and state govern
ments to the oil industry In this
country while our competitors In
other countries are invited to par
take OF our markets free Of taxation.
How long the Industry can stand It
Is a question. One by one the In
dependent refiners are being put out
OF business.
II will do all l can to prevent
congress making the mistake of put
ting the flat cent gallon tax on
wv. II. GRAY"
p, NJ. Miscal, manager of the En-
pire rcfineries, and vice president
and n director OF the Western Pc
troleum Refiners association says;
"1'he levying OF tax on gasoline Is
class LEGISLATION and should be Wig
orously protested by everyone as II
affects two of the leading industries
OF the country, oil and automobile.
There is enough taxation on both
OF these industries and why they
should be singled out by congress a
, present for this additional burden is
hard to understand. This tax would
work an immeasurable damage to
the independent. refining industry
) which Is already staggering under
heavy taxation and excessive freight
rates.
: From a Tax Expert.
, The following article was pre-
{ pared by Samuel j. Caudill, perto-
: leum engineer. Mr.. Caudill Is con-
! sldered an authority in valuation
I and income tax matters as they are
$ applied TO the oil business. He IL a
= pioneer in this work, being mem
D ber OF the government staff that
I prepared the Manual for the OIL q
4 Gas Industry" published by the
! treasury department, 1918:
: "Our present taxation measures
? and regulations In many important
aspects fly in the face OF eeonomio lii'
laws, good judgment and equity
4 They handicap industry and thrit1
: and leave the wastrel and loafer ul-
4 touched. They disrupt and Impede
sound business and place American
c business at disadvantage WIN
European competition.
The present regulations not only
tend 10 curtail productioIS but are
strong contributing factor for the
> prevailing high level OF prices
. grave and serious evil which should
: be mitigated. grievous burden up
=. on those who live on normal sah res
. and who are all the more entltlea &c. 10
. redress as they have borne 'hel
burdens without murmur and
:, noteworthy absence OF importunate
/ agitation. . -,
: "The prosperity and progress OF
the future depend upon the corfec'
solution OF the problem OF taxation
and other economic questions
mo doubt the most conspicuous
r example of the effect OF our TAXA
tlon Is in sitting enterprise and pre-
/ venting capital from acconplishlhs
{ It's normal and necessary function;
Z "Regarding the oil men II may oe
7 / Hal1, ana OIAEIl NiltlANbNoaS
he has an enormous income ana mas
: plenty left after the payment OF ex.
( cesslve burdensorne taxes. But that
t is not the point. The point Is nor
Il what happens to the man OF large
Z; income-he can protect himse elt-
Q hut what is the effect on the couh-
= tryq CAPITAL for business or for cor
porate Investments 4 necessity for
I the upkeep and expansion OF trace
| and Industry. And Il Is out or an
| nuai savings, after meeting expenses
| and taxes. that the means are pro-
yided for that necessity.
| EScessiye surtaxes and corpora
a ton taxes accomplish double harm,
a I'm diminishing the incentive 70
a thrift and TO an unreasonable sXteh,
n n Appropriate tho means which shoulu 1sIo
r. be used for industry ana enter eh', l'sS; y;
81, would be beyond the scope oil
- This article TO 20 into details con
cerning the heavy tax burdens whieh