The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-12-09
HOCH TO GOVERNORS.
Text of His Letter recommending
Adoption Of OIL Legislation.

Governor Hoch has made public a
letter which he has sent to Governor
Folk of Missouri, Governor Lar ollells
CT Wisconsin, Governor CummlnS OF
Iowa, Governor Deneen of Illinois and
Governor elect Pattison of Ohio, rec
ommending that they incorporate IN
their messages to their respective leg-
islatures an endorsement OF the anti
discrimination law and maximum rate
law passed at the last session OF the
Kansas legislature.
The action of Governor Hoch is in
spired by the suggestion of some OF the
Kansas oil producers, who are Trying
to secure from the western states the
ena ctnent of the same ant-Standard
oil laws which are on the Kansas
statute books.
Governor Hoeh's letter follows:
'"Fhe. Kansas oil field was developed
almost entirely by individual capital.
Thousands of comparatively poor peo-
pie, as well as many wealthy ones, put
their money in oil leases and oil wells.
They were led to do this by induce
rnents of the Standard Oil company
which has long had monopoly OF the
oil business in this country, and which
a year ago was paying $3.50 per bar
rel for crude oil, at which price no one
will claim it was losing money. This
price stimulated the investments re-
ferred to and made the investments
generally profitable, but in harmony
with its policy elsewhere, having Sc
cured the development of the field at
the expense of others, this greedy cor
poration reduced the price of crude oil
two-thirds, bankrupting many develop
ment companies, and practically rob
bing thousands of individuals Of their
investments.
ITO right these wrongs, the last leg
! islature courageousIy enacted several
laws. It provided for the establish
ment Of a state refinery, but the law
was declared unconstitutional by the
supreme court of the state under a.
section of the coDstitution which for
bids the state engaging in internal i'm
1 provements. Without criticising the
! decision, it can at least be said that it
was an unfortunate condition which
| rendered it necessa ry. Had the de-
/ cision been otherwise, great impetus
/ would have been given to the eSta b.
/ lishment of independent refineries. The
price of the finished product within
| the state would have been absolutely
within the control of the state. Other
/ states would have followed the exam
PIE undoubtedly, and competition in
I oil would have been restored to the
people of this country
But all was not lost by the failure
1 OF the state refinery law to stand the
/ test of the courts. The legislature
supplemented the refinery act by the
passage of other valuable laws which
! have been of incalculabIe benefit to the
| state and to this great industry.
! among these l. desire TO refer eSDe-
/ cially to the enactment of a. law fixing
a maximum freight rate on oil which
reduced the rate two-thirds and which
/ has made it possible to ship crude oil
/ to the rep1ostest parts of the state for
! fuel purposes, and its use for such
/ purposes is now becoming quite com
mon through the operation of this law.
! The legislature also passed an anti
/ discrimination law which is q most
| wholesome enactment
Before the enactment Of these laws.
| only one Independent refinery was in
existence in the state that at Hum
| boldt and it was at the mercy of the
monopoly and nearlE ready to quit.
But these laws have made it possible
to establish independent refineries on
a profitable basis and not only has the
Humboldt institution been made profit
able, but other Independent refneries
have been established at Cherryvale.
4 Longton, Paola, Rollins. Chanute, Erie.
and Niotaze. Without these laws these
institutions would have been impos-
sible.
at is extremely desirable to extend
the operation of these principles OF
government to other states that the
greatest possible good may come from
I them. therefore most heartily recon-
mend these enactments to the favor
able consideration Of the governors of