The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-08-27
KANSAS NEWS.
Chanute Has Good Prospects for
an Independent Refinery.
Business Men Freely Discuss
the Projected Enterprise.
SCHEME LOOKS GOOD.
Commercial Club VIII Likely
Back Proposed Deal.
Manager Has Built Seven Plants
Over the Country.
SCHEME LOOKS GOOD.

Chanute, Kan, Aug. 27-G. H.
Seager of Warren, Pa, conferred in R.
| c. Rawlings office one night this week
with dozen or fifteen oil producers in
regard to the establishment of an indie
pendent refinery here. With one or
two exceptions the sentiment of those
present was favorable to the project.
The refinery, will have a capacity at
first of 800 barrels per day, and Mr..
Saeger proposes to take all oil at top
grade that tests 81 degrees, and above,
prices, which is 20 cents higher than
the Standards prices. The sentiment
of the meeting was that this would be
OF great benefit to many producers
wells, grades % to 80 degrees specific
gravity, but after standing in storage
tanks for a few weeks, when unable to
market promptly deteriOrateS in quality
from evaporation, and then tests below
20 degrees. Mr.. Seager will only make
20 cents per barrel difference between
top grade oil and oil below 27 degrees
and down to and including "A degrees
specific gravity. If these prices were
current today Chanute producers would
be receiving So cents per barrel for
the light grade of oil and 6S cents per
barrel for the heavy, instead of 68 and
AZ cents as now.
Mr.. Seager further proposes that ev-
cry time water white oil advances /
cent per SallOn TO ADVANCE the price OF
crude oil 10 cents per barrel. He is
willing to do this for the reason that
every time water white oil advances /
cent per gallon it increases the profit
oil 20 cents per barrel. This profit he
is willing to divide with the producer,
thus enhancing the value of the crude
to the producer 10 cents a barrel
A prominent local operator, discussing
the independent refinery movement to-
day, said:
THE moral effect of this refinery, al
though small one to begin with, will
be something tremendous, for the sim
pie reason that when it is demonstrated
that the enterprise is a success finan-
c1ally 1t will encourage other capital
lists to come here and build 1 900 barrel
refineries and even larger ones, and each
one started will encourage others until
1t is safe to prophesy that, within five
years from the opening of this refinery,
there will be string of Independent re-
hneries throughout Kansas and Indian
Territory with a total capacity per-
haps of from ten to twenty thousand
barrels per day. In addition to this, the
paying of the same price for oil, here
that is paid at Neodesha, although the
beginning may be small will eventually
be the means of securing to all pro-
ducers in the Chanute district justice
from the Standard, and force that cor
poration to do away with an injustice
that rankles in the heart of every pro-
Queer in the Chanute district"
Mr.. Saeger has been personally iden-
titled with the business of refining oil
since 1882. He has built three plants
in Warren, Pa. one in Philadelphia, one
in Canada, one in the Dutch East In
dies and one in Port Arthur, Tex. The
latter is the largest Independent refin-
cry in the United States, having a ca
pacity of 10000 barrels per day. He has
made a careful analysis of the oil in
all the fields east of the Rocky Noun
tains and knows exactly the manner
in which the crude product should be
to secure the best and
most profitable results. He asks the
citizens to subscribe for Sc, 900 five-year
bonds, to draw 8 per cent interest and
be secured by $1,000 of the preferred
stock of the company. In addition to
this he asks for a site of ten acres. The |
matter was presented to the CONNER |
cial club at its last meeting, and was |
referred to the executive committee.