The Marlboro democrat. [volume] (Bennettsville, S.C.) 1882-1908, 1905-03-17
The OIL TRUST.
Kansas and Other States Are
Fighting the Standard.
CAUSE OF THE FIGHT.

Told by Correspondent of the
Omaha World.H Herald, WHO
Makes Out a Bad Case
Against Them.
The fight against the Standard Oh
Trust by the people Of Kansas is at
traoting world wide attention anG
people In all sections of the country
are showing their sympathy for Kau-
sas. On February 81, the Illinois
legislature adopted resolution offer
ing tn lend the State OF Kansas the
sum Of 100000 without interest, foI
period OF six years to aid in estab-
fishing state oil refinery. This res
olution referred to the Standard Oil
trust as that merciless octopus
whose tentacles now encircle every
state in the union" Another resolu-
tion provided for the appointment OF
joint commission to confer with the
state officials of Kansas and to agree
on steps to be taken for pipe lines to
aid common carriers. Indiana oil
producers have organized to fight the
oil trust and they will urge the ercc.
tion OF a state refinery. The bill has
been introduced in the Texas legiSla.
ture, making the pipe lines OF that
state available to independent pro
ducers and 1t Is proposed by some that
the state erect refinery. Oklahoma
tB likewise considering the erection OF
q state refinery, together with the
proposition to make oil producers pre-.
serve uniform price Throughout the
state.
An interesting description of the
troubles between Kansas and the oil
trust Is given by Frank z. Gallagher,
the staff correspondent for the Omaha
World Herald, in dispatch to that
newspaper, under date Of Topeka, Feb
21. Mr.. Gallagher says: III was a
bitter experience with the sinister in
f1uences Of Standard Oil that led the
people Of Kansas, but as late as two
years ago the oil industry amounted
to little. Twelve years ago Standard
Oh wriggled into Kansas under the
deceptive title of the Forest Oh com
pany. Departing from It's historic
policy, the Standard Oh management
determined to develop the fields with
out waiting for the people To catch
the oil fever. Near Neode sha In vii.
Bon county many wells were sunk but
the oil refused to gush and the boz
1ngs were abandoned. Standard OIL
relinquished It's leases to hundreds OF
lores and surrendered the task Of de-
velopment to the prospectors and pro-
moters."
The f1rst important strike was mads
by Charles Knapp, six years ago at
Chanute, near one Of the abanuolr d
properties Of the Forest Gil company.
A little later 1t was found that Peru
Kansas, was located on vast oil de-
pos1t. Soon nearly every town lot
had Its oil we'll, and the Forest Oh
company returned to the field with
renewed vigor. AS the business de.
yeloped the Forest OIL company under.
went several changes It's small Cap
1talizatlon disappeared, and on Jauu
ary 7, 1901, 1T took the name of the
Prairie Oh and Gas company and in-
creased It's capital stock to 50, 500, OOO
The company then built pipe In O. to
NeOdesha from Chanute and al the
latter point refinery was establish.
ed. In 1902 the supply Of oil was
still unsatisfactory to the STANDARD
Oh folk, and In order to create boon
1t suddenly raised the price Of crude
oil from 80 cents to Sl.lO barrel
The effect was magical. In twelve
months the output grew from 322,-
600 barrels with value Of $3.50, 900
to 1,018,0O0 with value ut 81, l2O.-
O18. A greater part or the output
was taken by the Standard OIL com,
pany, but each day E. j.. Webster,
who has built an independents retiuery
1T Humboldt, Kan, took 200 barrels.
In the meantime, Standard Oil, ac-
cording to Mr.. Gallagher, had been
whetting Its cimitar With the iiIten-
tion Of striking down the entire indie
pendent oil industry OF Kansas The
capacity OF its plant at NeOd, sha was
adasd to until 1T had reached 300, 600
barrels II crude oil day. The pipe
lines were extenc ed Until the naiu
conduit ran from Tulsa in IT,, Usage
nation south of the Kansas state iine
through Kansas to Kansas City, Mo
At CLANCY, NcOdesha, Altoona and
Humboldt, the Prairie Oh and Gas
company built giant tanks, and began
w buOlC VII. bJ lOoOi IL
had total stock on hand OF 5,44S, ,03i
barrels. Until last Angus, When the
Standard finished it's system Of pipe
lines through the state, oil had been
bringing prices ranging, frtm Sl20 tt
sl40 barrel, according TO It's specsti,
gravity. 1t vas al This juncture tina
Standard Oil sprung It's trap, in which
the oil producers and consumers OF
Kansas and the single indepel dent oi
refner, e. j. Webster, are still sQuir
ming, but with show OF life that
astoDishes the captor. The price Of
crude oil began to fall. In four re
duct;ons the prices we're cut TO IL cts
for barrel Of the best oil. Another
smash OF cents was made on Janu
airy 81, 1905. To what a low leve
prices for crude oil had sunk Is illus
trated In the following comparative
table: Western crude oil price s 3.
degree and above, 70c; 3l4 to 80, Cos
81 to 31i, 60c; 3o3 10 81, 55c; 80 u
3O3, SOC; 294 10 80, 45c; 20 to 294, 4Oc
284 to 20, $50; % to 281, 3Oc; % u
% heavy, 29o per barrel. Bartlesville
/. T., $40 per barrel. Eastern crude