The Iola register. [volume] (Iola, Allen County, Kansas) 1875-1902, 1897-07-02
HOW 1T HAPPENED.
Inside Story of the way the Standard
Oil Company GObbled the
Kansas Oil Fields.

The following interview had by a
Globe Democrat reporter with w. 81.
d. Chaplin, OF Oil City, Pa, tells an
interesting and doubtless true story:
"Let me tell you the true history OF
the Kansas Oil field. The facts pre-
sent characteristic illustration of the
powerful methods employed by the
Standard people to crush out all
rivals.
flames Guffy and John Galley,
two oil producers of Pittsburg, Pa,
heard of indications of oil in Kansas
and went out there to prospect for
oil. drilled several holes quietly and
found oil. They kept their secret
until thew and their associates had
leased all the land for drilling in
four counties. Then they began their
work in earnest, and they struck it
rich, They had a good flow of oil
from quite q number of wells. They
buiIt some large tanks and kept stOr-
ing away their oil until at the end of
two wears they had 100000 barrels of
oil in tankage. They were counting
on having a good thing, as Kansas
Citv was only $50 miles away.
Now the Standard Oil company
revealed its clOven hOOf for the first
time in the Kansas territory. When
Guffey & Galley went to ship some oil
to Kansas City the railroads demand
ed as much money for hauling it $50
miles as they charged for hauling oil
from the Indiana and Ohio fields to
Kansas City, a distance of over 800
miles. OF course such freight rate
for that short haul was simply
robbery. The Standard Oil company
the Indiana and Ohio oil fields and
the railroads were clearly discriminate
ing in favor of the big trust, and the
experience of Guffy aud Galley proved
-conclusively that if the ROckfellers are
not behind the Missouri, Kansas and
Texas road, the ROckfellers had no
trouble in using that road as club to
crush out q small rival concern
through exorbitsRt freight rates. The
Frisco might have helped them out,
but it didn't.
Guffey & Galley had territory ex-
tending over four counties, and they
had 100 600 barrels in tankage, with
market only $50 miles away, but they
couldn't sell a gallon of oil because OF
the freight trOcha controlled oy the
Rockefellers and the railroads. me
unshot of the whole matter was that
one day an agent of the Standard Oil
company happened into the Kansas
oil field. called on Guffey u Galley ana
told them that the Standard would
buv them out, aud pay Them Tor ali
their labor and eXpen~e of two years,
nav them for the oil in tankage, and
give them $780, 200 over and above eA-
nenses. The agent intimated that
they Gould fare better back home in
Pennsylvania. anyhow. Guffey d
Galley accepted the offer, aud the
Standard Oil company controls the
Kansas field to-day.
at may appear to the unlh!tlateu
that Guffev IL Galley have no strong
grounds for protest, as the sale al
lowed them to clean up 100000 IN
cold cash i'm two years. But that Is
not the poin'. These men ought tn
have the opportunity 10 make
million dollars. They were compelled
to sell. because they knew the big oil
octopus had them in its teutacIes.
But with fair and just freight rates
they could have kept their wells ana
piled up uoney.
t.The newspapers have heen pub
fishing story lately that Geo. Nj:
Pullman. the palace car king, and
Nelson Morris and Phil Armour, the
champion hog killers. and beef barons
of Chicago. had combined to spend
s., OOO, 900 i'm developing the Kansas
oil fields. and that they would put mp
a stiff fight against the STANDARD.
The story is mere bosh Why. the
interests of Pullman, Armour ana
Morris are intermingled indirectly
with the Standard Oil people, and the
Chicago people are dOing no such
thing.