The river press. [volume] (Fort Benton, Mont.) 1880-current, 1905-04-19
STANDARD OIL IN KANSAS,

STANDARD OIL IN KANSAS.
1t is announced in a press dispatch
from Topeka, Kas., that James r.
Garfield, commissioned by the federal
authorities to investigate the workings
of the Standard Oil company in the
Sunfower state, has entered upon his
duties in that connection. The Kan.
sas people think MIR. Garfield is not
exactly the right kind of person to
conduct such an Investigation: they
refer to his report upon the beef trust
as evidence that he is not an expert as
a trust.buster, and express the belief
that his investigation of Standard Oil
will not be as complete and exhaustive
as the situation demands.
There is a bitter fight in progress
between citizens of Kansas and the
Stand ard Oh company, the gigantic
corporation being charged with seek
ing to ruin the oil producers of the
state and practically confiscating their
property. This conspiracy, it is al
legged, included a manipulation of
railroad freight rates which compelled
Kansas oil producers to sell their
product to the Standar company.
AT the recent session of the Kansas
legislature several measures were
passed by which it was proposed to
assist the oil producers in their fight
against their alleged oppressor. One
of the new laws provided for a state
refinery to be operated by convict la.
Dor, and another important measure
made pipe lines common carriers and
placed them under control of the Kan.
sas railroad commission. Under this
latter law, the Standard company is
required to pump through its pipe
lines the oil produced by its compe-
titOrs.
According to the Kansas City Jour.
nal, the Standard has succeeded in ar
resting the development of the oil
producing industry In Kansas by the
simple and effective process of making
it Improbable. In January 1904, the
price of crude oil in Pennsylvania
was $1.S5 a barrel and in Kansas it
was go cents. On December %, of the
same year, the price of crude oil in
Pennsylvania was $l.5O a barrel and
in Kansas it was Al cents. On Janu-
airy 81, 1905, the price of crude oil in
Pennsylvania was 81 $50 a barrel aud
in Kansas it was % cents. On March
% the price of crude oil in Pennsyl.
vania was Sl.36 a barrel and in Kan.
a nobody was buying. Kansas, OF
course, is not yet a big oil producing
center. Last year the output was only
1923 OPS barrels in a total of ll9, 49,
67S barrels produced in the entire Uni
ted States. But nevertheless there is
q greater development going on in
Kansas than anywhere else, and ii
there was not intentional interference
with its progress there would be a
steadily increasing production.
Twenty-ninc-cent oil is Improbable
to the producer. Fifty.cent oil bare.
ly enables the producer to pay 6 per
cent interest or dividends on the mon.
ely necessary to be expended to put oil
property into Il producing shape.
This fact is known to every oil mar
and no people know it better than
does the Standard Oil company and
allied concerns. Therefore very nat.
urally it is surmiseu that the Standard
is forcing down prices in Kansas with
some definite object in view. What
this objcc, is can easily be guessed
from the history of the trust in othe,
fields.
The Standard either wants TO get
possession of all the producing prop.
critics in Kansas, ~ it wants to kill
the promoting business there for fear
the oil production, if development is
allowed to so on. would become So
great that Rockefeller would be un.
able to handle it all. Any ovcrpro-
duction which the Standard would be
unable to handle would bring indie
pendent retineries into the field, and
when one the independent retiueries
were established on a paying basis
that would be the end of the Stand.
ards monopoly.
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The Right Sort of Suunr. D.ol