The Bozeman courier. (Bozeman, Mont.) 1919-1954, 1926-07-09
STATE TO FIGHT
GAS TAX RULING
ASK REHEARNG OF SUNBURST
CASE; MAY APPEAL TO
HIGHER COURT
Supreme Court Says City of Mis-
sOula is Not Preferred Creditor of
American Bank and Trust Com
pany; Committee Files Report
CBy Or Helena COrrespOndent)

With approximately S15O.O00 held by
distributors Of Montana as the
tWO-cent tax paid by consumers
penalty paid under laws now held
the attorney generals department to ask
SUPREME court for a rehearing /
Of the Sunburst case and, If necessary, to
the legal battle to the United States |
supreme court. The state maintains that
the cash collected by the dealers belongs
to the state. In an opinion the other day, /
the state supreme court holds that the
collection was made under invalid laws.
Two large Montana distributors have
paid the tax. They are the Continental
Oil company and the Texas Oil company
now pending against the state treasurer
filed by the Hart refineries for the return
of the tax collected. The tax is now be-
ing collected under the 1925 amendment to
the old law Of 1921. The original law Of
1921, and the amendment Of 1923, have been
held unconstitutional by the supreme court
of the state as discriminatory. The 1925
law, which was drafted by Assistant At
tOrney General A. H. Angstman, so amends
the law as to remOve the featured OBJ
~jectiOns and taxes al gasoline in. the state
whether produced in Montana or shipped
in, in tank cars, after it has cOme to rest
within the state boundaries.
Two cases are pending against com
panies, filed under the 1925 law. They are
against the Silver Bow Refining company
for S6,O41 and penalty Of SAT- and against
the Roundup Oil and Refining company
for $2,964 and penalty Of 1921. Nine other
suits are pending, filed dnder the 1921 law,
for a total Of $69,57430 tax and $33,7S.51
yenalty.
The city Of MissOula is a general credit
tor only Of the defunct American Bank
and Trust company Of that city, the su-
Preme court says, affirming a decision OF
the district court for MissOula county.
When the bank closed it's doors and
after the city's bOndsmen had fulfilled
their obligations there still remained a
little more than S1,1O0 unsecured. This
ferred claim against the bank.
The court points out that the law mere
~ requires such bond as the council shall
deem sGfG.cient and, since no further bond
was required when the deposits mounted to
a sum larger than the bond made, the
court finds no reason why the balance
should constitute more than a general
claim against the bank.
Advocating a central bookkeeping office
for all the state departments and institu-
tiOns and a detailed inventory all state
prOpjertv the report Of the centralized
accounting committee, created by the 1925
legislature, has been made to Governor
Members Of the commission are George
T. Porter, state auditor; Jay G. Larson
state examiner, and William HOsking, stat,
accountant. The commission does not
make any detailed suggestion Of an &C.
iCOuALluS pAAAs approval Is gwen 70 III,
Tanner system, set up for the state in.
stitutiOns some years.
N MOntana's state railway commission. hal
Improved a reduced rate on cherries anC
berries from the fields at Darby, Charle
{ Heights and Hamilton to Butte, Henela
& Livingston, Billings, Great ais and Lew
IistOWn. The rate, which is lower thar
express, IS announced in a letter to W. il
4 MerrimRn. Northern Pacific official a
Butte, as being effective on carload lot
carried on passenger trains. The new rat
I per hundred weight follows: Butte 81
Helena, 81; Livingston, $1.48; Billings
y SL50; Great Falls, $i.4S; LeWistOWn, S1.8i
and Great Falls, $3.50.
Isl. Diering, deputy land agent Of OBze
man, has been at the office Of State Ian
4 Agent u. 30, ChOQuette and Registrar o
+ State Ian I. III. BrandiOrd, cOnferrln
g with these officials in regard to s~electio.
Of lieu lands for the state. The state la
lost considerable areas On Indian reserve
tons, on forest reserves and some tnrou0
homesteadlng. "At The present time "a
shortage IN state lands IS more than 400
q Oyy acres" said Mr. Bradford, "ond 90
Z planned 70 select lieu land Tor these los1s
the south portions Ol eBaVerh6ad an
- Madison counties IL ia felt that this
tAe last opportunity Che state has Co ceIe,
-Ilauo8 ln place 81 chose lost. end the Wo1
va tnereLore be theoretically posled ou-
tn8 the summerH