Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1939-05-27
BUYING BARGAIN PRICE OIL

oil in underground storage pays no taxes
until the oil is taken from the ground.
IL is true that his tax burden is heavy,
but it is INCOME tax and not the multi
hued taxes that prey upon industry. Oil
in the ground is not taxable. Royalty
oil in the ground is absolutely safe.
The one sacred thing in the history
of mankind is LAND TITLES. The farm
ers are seldom deprived of their farms
ever by despOts. Governments may come
and go, but land titles prevail, as a rule.
The title to a royalty is a part of the
title to land, and is less subject to the
whims of government edicts which invaIl-
date other things of value It is a fact
that the added burdens of this modern
age have fallen upon the man who pro-
duces the oil while the royalty remains
Just as it was before the depression, just
as it was before the war and in fact just
as it was back in the days of Oil City.
Pennsylvania, where the principle of zone
eighth to the landowner was established.
We stated last week that we expect
that in future leasing the oil operators
are going TO try to cut down these roy
altics They are going TO ask for either
lower royalties, else seek to have all
ROYALTIES thrown into a unit plan which
viii make ii possible for the operator to
Cut uVWH on MS investment IN urIinng.
IT viii mean that the landowners children
and his chiIdren's children win receive
royalties from the unit-not very much
for each generation-but it will prOlOng
the life of oil field and the royalty
earnings over the centuries will be greatly
increased by the efficiencics of modern
DEVELOPMENT methods. That is not so
desirable as present royalties
u all points out that royalties NOW
available, under the 1913" form of
lease, are the most highly desirable
form of investment. They are royalties
that will not be effected by the new
reforms" such as discussed in Senator
OMahoney's monopoly investigation.
The writer has some accident insurance
taken many years ago that is worth once
again as much any similar policy that
IS obta1nable today. It is no longer writ
ten. 1t was written by substantial COM
pany before the time when the actuaries
arrived at the true risk of mOdern-day
accident rates. Every man, woman and
child would buy one of these old policies
were they available today, but they are
not.
The same thing applies to royalties
available today. few years hence we
will have the same appreciation of their
policy which appeared only ordinary when
it was written.
Royalty investment is the PURCHASE
OF OIL IN UNDERGROUND STORAGE.
1t is apparent that the COST is a vital
element. Every royalty investor must
know the relation Of PROBABLE VALUE
to the cost. Once that idea is definitely
established I'm the mind of amy thinking
investors, we are sure that we will have
more members than we can handle. As
1t is, we are seeking more members to in
crease our purchasing power. The great
err our purchasing power the lower the
prices we can obtain: the more we are
enabled to grasp bargains which our ex-
perience causes us TO recognize.
Our members must be people who can
READ with understanding and who are
willing TO invest MENTAL effort along
with their money.