The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1904-07-26
AFTER THE OIL TRUST.
Southeast Kansas Producers at WORK
ON a Big Scheme.

Chanute Kas., July 26.-The oil pro-
ducers of Kansas are organized for
fight against the Standard Oil COM
pany, and they are organizing $780,
900, 900 corporation as a starter Fro
ducing oil, transporting oil, rehnlng
OIL marketing oil, all these are lncluo-
ed in the great scheme which the pro-
Iducers are bending their energies TO
! perfect.
The plans contemplate the forma-
ton of a company with $50, OO0,0O0
capital, to be owned and controlled
| by the producers, and so organized
that the Standard will be forever ex-
cluded from a voice in its manage
ment. This company is to construct
and own oil and gas wells, pipe lines,
storage tanks, refineries, pumping
plants, telegraph and telephone lines,
gas plants, vessels and any and every
thing required in the proper carry
ling on of it's business, including docks,
wharves and even railroad lines. There
will be $20,0O0,000 preferred and
$40. 10000 common stock.
Actual producers of oil are to have
the first call the stock. Contracts
agreeing to sell the new cor
poration the entire output of the APP
plicant for a period of from ten to
| twenty years must accompany the sub
scription. The applicant can pay for
the greater part of his stock, If he so
desires, by setting aside a certain per-
centage of his production, say 25 per
divided into 1000 shares of the par
value of 500 each, and the preferred
stock carries a guarantee or per cent
dividend per annum from the date of
the beginning of operations. The af-
fairs of the company are to be man
aged by board of trustees or df-
rectors, and it is to be expressly stip-
ulated that mo man connected with
the Standard Oil company, or any of
! it's allies or subsidiary companies in
any capacity or friendly to them, shall
be a member of this board, and if
member of the board shall become at
filiated in any way with the Standard
Oil company, its allies or subsidiary
companies in any capacity or friendly
to them. shall be member OF this
board, and if a member of the board
shall become affiliated in any way with
the Standard Oil company, its allies
or subsidiary companies, he shall be
Immediately expelled. That language,
one of the men says, is going into the
bylaws. The directors are to be elect
ed for varying periods of years and
are to be chosen by a majority of the
stockholders, not of shares. This is
another move to keep out the Stand
ard and prevent its possible domina-
ton of the company through the pur-
chase of a majority of the stock.
The first work of the new concern
will be to provide storage tankage for
its shareholders. and thus enable all
plants to keep moving continuously.
To take care of from 100000 barrels
an outlay of approximately 100000. |
The tank farms will be commenced
Immediately upon the organization of
the company and completed rapid |
ly as possible. Then comes the system
of local pipe lines and the big-pipe |
line from the suburbs of Kansas City |
on the north to Muskogee, I. T., in |
the south to get the oil to the tank
farms. After this are the three really |
ambitious features of the programme: |
The building of a six-inch pipe line |
to Port Arthur, Tex, the building of
wharves and docks at that place, and |
the building of refinerieS at various
places and the shipping of oil to mar |
kets in both the Old and New Worlds. |
It is a big thing to come out of |
Kansas. 1t means 500 miles of pipe |
line in Kansas main lines and laterals: |
500 miles in the Indian Territory, and |
1900 miles in Texas, a total of 1900 |
miles of lines. At an average cost of |
$1,000 per mile, and this is far above
the average cost, the pipe line invest
ment will be approximately SIS, 40O,-
900. The pumping stations will cost
another $1,00O,0O0. The docks and
terminal facilities at Port Arthur will I
cost perhaps $2,000,000 or more. Three
or four or five refineries will bring
the total up to $1S,0O0,00O, or posi-
bly, $2O,OGO,O00. According to the plan
there is to be left in the treasury as
working capital from $15,000,000 to
$25,000,000 in stock to be sold at such
times as necessary.