The Indianapolis times. [volume] (Indianapolis [Ind.]) 1922-1965, 1925-02-20
DriIIers of Wells Aided by
Charges Of Discovery
Depletion
Times WGshin0ton Bureau.
1899 NeaC York AUenue

I ASHINGTON, Feb. 20.-Un-
|IWI less the Senate authorizes the
LII special tax committee head
sd by Senator Couzens Of Michigan
to continue its Investigations, the
committee will die on the adjourn
ment of the Sixty-Eighth Congress
on March 4. The committee was in
structed one year ago to make a
thorough study Of the bureau of
the Senate on improvements and
changes which should be made in
the methods Of collecting income
and corporation taxes.
Owing to the immensely of the
task assigned it and the difficulties
placed in it's way, the committee has
not completed its work. 1t has now
adopted resolution asking the Sen
ate to continue its life. This re-
quest has been taken under advise
ment the Senate Finance Commit
tee. Before this committee the ad-
vocates of an extension Of time have
pleaded that the Couzens committee
be given a chance to complete it's
study. An equally eloquent plea
has been made-in secret session
by those who wish to have the inves-
tigation brought to an abrupt end.
There's Reason
And now it is revealed that the
most insistent opponents to contin-
uation Of the investigation are the.
country's big oil companies.
This is the reason: During The
war period, when the Government
was anxious to promote oil prod,ic-
ton, Congress passed a bill calc1-
lated to encourage Indicating" b.
oil drillers. It provided that "djs-
covery depletion" was to be allowed
drillers who, in seeking sushers,
first drilled dry holes in the ground.
The terms of this provision, which
Is still on the Statute books, were
so loosely drawn that oil companies
have been able. to offset great parts
of their annual earnings by dis
covery depletion" charges. Mem
bers OF the Couzens committee now
estimate that between $35,000,000
and $40,000,000 in corporation taxes
through the Stretching" of deple-
ton charges that has been INDUCED
in by oil companies.
If the facts concerning the mis-
use of the discovery depletion" al
lowances are fully established Sena-
tor Couzens and his colleagues on
the special committee believe few
men will dare stand up in either
house of Congress and oppose the
repeal OF this law. The oil compa-
MES are Of the same opinion, and 1t
is for this reason that they want no
further expose to be made.
Authority May Be Taken
From legislative standpoint the
situation is a hazardous one for the
Couzens committee. II the majority
Of the Finance Committee who op-
pose further investigation can sim
ply delay the matter another ten
days or so the investigators win be
without authority to continue.
Fearing that pigeon-hole in the
Finance Committee rooms is now
the selected destination for their re-
quest for a longer life. Senators
Couzens, King Otah) and Jones IN.
M are preparing to ask the Sem
ate to discharge the committee from
further consideration of the request
and to take up the matter in open
session of the Senate proper. II
this expedient is resorted to, the op-
ponents of the Couzens committee
have been assured that during the
open debate a major scandal will be
exposed and that certain prominent
persons, both In and out Of public
life, win have their spots knocked
off,