Montana oil and mining journal. [volume] (Great Falls, Mont.) 1931-1953, 1939-04-08

ness. The soundness of that investment is
beyond question. National statistical SER
vices and financial reports frequently
comment upon the intrinsic value of
investments in petroleum enterprises. In
brief the oil industry is today in a
favored position both as to demand for
it's products, its ability 90 supply the
demand at fair prices and the finan-
cial stability of the industry as a whole
The banking interests should be con-
cerned about the attempts to handicap
the petroleum industry by unwise and
improper legislation. The proposal TO Inn
pose a federal sales tax on the sale of
fuel oil in order to handicap its COM
petition with coal is an illustration of
this sort of harmful legislation. If any
banker who is interested in petroleum fl
nancing does not feel that ne should in
terest himself also in measures such as
this one, then he is ignoring what might
be a very serious element in the stabi-
lizatiOn of the petroleum industry Ex-
cessive taxes proposed elimination of the
depletion allowance for the petroleum
industry, exorbitant transportation rates.
inequitable rulings ON oil royalties as
type of securities, additional ex-
emptions from the excise taxes on petro-
ieum imports, are some more Of the un-
favorable pieces of legislation which
from time TO time are brought up. In
all of these the banker who enters the
field of oil financing has a definite
interest.
The speaker pointed out the import
ance of the oil industry to the State of
Texas and quoted the expenditures of the
industry in Texas in 1887. One of these
items was the sum of $3.50 S35 900 paid
in royalty and oil payments.
Whenever a barrel of oil is produc-
ed in this country, a portion of that bar
rel of oil belongs to the landowner or his
assigns and that portion of the oil call
ed royalty, is delivered to the owners
FREE OF COST OF PRODUCTION. It
follows that in an industry so stabilized
as the oil industry that the man who
owns oil in underground storage can
look forward to the future with the
greatest security. If he can buy oil in
underground storage G H A PLY
ENOUGH, he is likely to make a fortune
That is the SPECULATIVE feature that
is added to security. Oil in the ground
is not taxed: 1t is one of the few in
vestments OF this day and age that es-
capes the terrific burden Of taxation. A
man pays taxes on his oil whenever il
is brought to the surface of the ground
and sold, but he is perfectly willing TO
pay taxes at that time. II he owns a
piece of land, he has to pay taxes when
1t - idle as well as when it is produc-
tive of income. Not so with oil I'm un-
foreground storage known as royalty
OIL
An increasing number of hard-shen
conservative investors of the banker
type are today turning their investments
to LANDOWNERS ROYALTIES. It is
a fact that investment I'm royalties involv-
es the investment also, OF some time
and study of the subject. 1t is our bust
ness TO provide each investor with COM
plete information on the subject of
royalties. Our experience OF II years
In royalties equips us to give any in
quirer the information ON which he can
determine his policy of investment The
attached coupon win bring to amy In
quirers complete details regarding This
service.