The producers news. [volume] (Plentywood, Mont.) 1918-1937, 1926-12-31

on the Investment in property used
in the refining process, the state
could have sold the gasoline at 10
cents per gallon and still have re-
ceived more money for its royalty /
than it otherwise did, At IL cents |
per gallon, it would have received 4
SAG. 1920. as against S43, 996.20 actual /
lv received. Of course, from this
sum the freight rates would have to
be deducted. The freight rate from
Great Falls to the Dakota line Is 40
cents per gallon and from Great
Falls to the Idaho line "A cents per
gallon. The average freight per gal
lon to points in Montana should not
: exceed two cents per gallon.
/ Hence, it is apparent that the state
should insist upon receiving oil roy
alties in oil rather than in cash.
Fair Price. Is Dema lded.
"Mv suggestions in this regard are
not prompted By any desire to work
an injustice to gasoline distributors
engaged in business in this state l
am prompted to make these sugGes-
tions by the desire to compel gaso-
line distributors to treat the people
of this state with fairness. They
ought not to be permitted to charge
unreasonable prices for gasoline.
Gasoline distributors out to be salts
fled with a reasonable profit on gaso-
line.
"This plan would result in one of
two things: Either it would bring
more money into the appropriate
state fund entitled to the proceeds
of the oil from state lands, or 1t
would tend to reduce the excessive
cost of gasoline to consumers, or per
haps both, and, in any event, the adj
vantage to the state is palpable.
"The State of South Dakota tried
similar plan and, until it was con
demned by the supreme court Of thai
state, its results were highly benefit
cial to the users of gasoline in thai
state. It greatly reduced the cost o.
gasoline to the consuming public. The
; plan there attempted, and for time
carried out, was somewhat differen
than the plan l have outlined allow
: for this state.
Not Producing State.
ain the first place, South Dakot'
: lis not q producing state, and thu
I fact was commented upon by the su
u preme court of that state in its opin
ion. In the state of South Dakot
: to purchase gasoline and engage
9 the business of selling same. Im
y plan was held unconstitutional by tn
Il supreme court of that state in tn
: case of White Eagle Oil and Refinin
u company versus State, 205 N. W. Oh
But, as above indicated, the pla
that / believe should be adopted
e Montana is essentially different, f
8 here the state need not purchase ga
e oline, but only engages in selling tn;
: which belongs to it.
p Allowed By Constitution.
. "In my opinion such legislation
authorized by the constitution al
y laws of this state. Section / Of A
. ticle X of our Constitution provide
~ in part, that: such other institute
H. as the public good may require shi
= be established and supported by t
- state in such a manner as may
~ prescribed by law
~ "The supreme court, in the case
Ell State ex rel. Lyman versus Stcwa
58 Mont /. held that the state,
this section of the constitution, W
authorized to engage in the busine
of operating a grain elevator. 1
court, in referring to this prOvisi
of the constitution, said: "Fhis Ia
guage is broad enough in its scope
incllide anv sort of an institute
which the legislature in its discreet
may determine the public good
quires."
For Legislative Act.
+. However, as a matter OF prec'
} ton. 1 believe that the legislatu
, simultaneously with the passage
= appropriate legislation, should p
e pose constitutional amendm
e which would authorize the state
T. construct, operate and maintain
e oil refinery, or refineries, for
=, purpose of refining its oil. and
+ own, operate and maintain filling
s, tions for the purpose of market
i its gasoline, in the event that
l. supreme court should be of the OF
It ion that a constitutional amendm
II is necessary to authorize Cne legl
II ton that believe should be put
effect as above stated.
ex- Furthermore, I believe such
sive stitutional amendment, as well as
! in legislative enactment, should autl
.bly ize the state to purchase such a
tate tional crude oil for refining purp'
He'd, as it deems for the best interest,"
cept the state IN operating SAID REIN
.ses, and also to purchase gasoline for
lave sale if it so desires.
ave of you desire these matters in
d as porated in your proposed bill, | S
be glad to prepare them.
every truly yours,
+ OF 81. A. FOOT, Attorney Generi