OCR Text |
Show "DON'T KILL THE GOOSE THAT LAYS GOLDEN EG(J" The new war revenue bill which has been passed by the House and is now before the Finance Committee for consideration, vitally effects the oil and mining industries of the west. Without going into the technical details of the measure it is sufficient to say that the dovetopement of oil and mining properties nre nulike the dovclonement of almost any other industry. in-dustry. The risks co-incident with the business bus-iness must be one of the main feat-i feat-i ures considered in framing any legislation leg-islation governing these industries. While it may be perfectly equitable equit-able to take 80 per cent of the excess profits of an established business busi-ness receiving largo government war orders, it is an entirley different proposition prop-osition to take 80 per cent of a re cently discovered mine or oil well, for the simple reason that the risk involved in the business is so great thai the hope of a 20 per cent profit above cost of development and operation op-eration are not enough to counter balance the fear of losing the entire investment through failure to develop devel-op a producer. The same argument holds true in regard to an exhorbitant tax on the proceeds from the sale of new mining and oil properties, it would simply drive these properties off the market. The west as well as the nut ion is vitally intrested in a tax measure which will encourage rather than discourage the exploration and development devel-opment of new mining and oil properties prop-erties and which will give the new companies a chance to become producers pro-ducers along with the old established ones. Let our law makers consider well before placing inequitable tax burdens bur-dens on these western industries which would mean the earley death of the goose that lays the golden egg. |