James Clark McReynolds

“ In computing the amount of tax levied hereunder, however, for any year, there shall be deducted from the values, or from the gross income of the business, as the case may be, an exemption of ten thousand dollars of the amount of such values or gross income. Every person exercising any privilege taxable hereunder for any fractional part of a tax year shall be entitled to an exemption of that part of the sum of ten thousand dollars which bears the same proportion of the total sum that the period of time during which such person is engaged in such business bears to a whole year. ”

“ Upon every person engaging or continuing within this state in the business of mining and producing for sale, profit, or use, any coal, oil, natural gas, limestone, sand or other mineral product, or felling and producing timber for sale, profit, or use, the amounts of such tax to be equal to the value of the articles produced as shown by the gross proceeds derived from the sale thereof by the producer (except as hereinafter provided) , multiplied by the respective rates as follows: Coal, forty-two one-hundredths of one per cent.; oil, one per cent. ”

“ Most of this passed into interstate commerce by continuous movement from the wells.
Here it has been argued that the challenged act burdens interstate commerce and therefore conflicts with section 8, article 1, of the federal Constitution; also that to enforce the act would deprive plaintiff in error of property without due process of law and deny equal protection of the laws.
Counsel admit that without violating the commerce clause the state may lay a privilege or occupation tax upon producers of natural gas reckoned according to the value of that commodity at the well. American Mfg. Co. v. ”