The Kevin review. [volume] (Kevin, Mont.) 1922-1929, 1926-12-30

premG court ndd upneId the state gas
oline tax law which by inference
aitho sustains the initiated bill fol
good roads purposes, approved by the
people at the November general elec
tion, the Montana chapter of the
Rocky Mountain Oil & Gas associ
alton Immediately decided to concen
trate its efforts on a movement tc
eliminate Objectionable features oi
the law by legislative enactment, it
was announced by Walter Brittan.
secretary of the chapter.
The association will appeal to the
legislature for an amendment to the
1926 law which would eliminate the
feature which now permits consumers
to import gasoline from other states
for their own use and escape the
tax. The association believes that is
discriminatory and works an injustic,
on Montana refiners, Mr.. Britta.
said
"It discriminates against the refin
er, against the state and against the
small consumer especially the small
farmer-who cannot afford to buy
gasoline in carload lots
"It probably is true that the refin-
ers are hardest hit, and that means
the Montana oil industry is placed a
disadvantage. For the industry car
expand only to the extent that is pos
slble through consumption of crude
b. refineries within the state. The
point is easily illustrated.
Cites Kevin-Sunburst Crude
EARLY last year, Kevin.Sunburs
crude oil was selling for $1.S5, includ
ing the bonus paid Several months
later the price was down to $1O5,
with no bonus offered The slump
was traceable to a single reason
production was greater than could be
consumed by the Montana refineries.
but the excess was only 1000 barrele
day That small amount created
congestion that Seriously handicapped !
! the field, forced down prices 80 cents
a barrel and greatly curtailed devel
opment Without our present limited
freight structure the production OF
the field could not be moved out Of
the state, and therefore the local cor
gastion adversely affected the entire
industry in the state
"That is an indication of how nee
essary it is for the Montana refiners
to be placed on a parity with refiners
in other states if they are to expand
consistently with the growth of the
oil industry. If an adequate market
cannot be created through the refin
cries, then the industry confronts :
serious situation. Just now some Of
the most important operators in the
west, individuals and corporations
are entering the Montana field and il
is inevitable that the prospects for :
market will be vital Influence il
their operations
Lost to State $500 Day
'The oil industry has already
grown to where it is matter of vital
consequence to the income of the q
state. The price slump Of last sum 3
r7r represented a daily l3Ss - the
stat! Of Montar;. Of 1920 a day. III =
en-, there WAS a reduction in th /,
or .se production TAX az the net
proceeds tax. If the price slump were
considered on year-round basis, the !,
states loss would approximate $2,
100000 a year. Certainly the oil in !.
dustry has come to mean a great deal
to Montana's annual income, and any
the industry encounters .
cannot avoid being reflected in the 9
effect on the state.
Last year, the Campbell farm near :
Hardin, in Big Horn county, the lar =
gest in the state, imported it's gas
oline and did not pay the Montana
tax. Some few other farms may have
done the same thing, but it was not :,
possible for any # the small farm
ars-to avoid the tax. Unquestionably
the small farmer was Disseminated :
w
against. :,
"The contractor on one of the lar = :,
gest highway projects carried on in
Montana last year, Minneapolis 5,
firm, escaped paying the Montana
gasoline tax by importing it's fuel =,
It seems somewhat at odds with the !,
spirit Of the good roads movement ei
n Montana to have the states new N
highways, or any portion of them, f.
quilt in that way And the untaxed m
gasoline thus used is refined outside fo
If Montana, from crude oil produced il,
n other states. The Montana refin- E
,res are handicapped to just that ex- M
ent, while the price of crude oil pr
lumps because the states produc- fr