The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-04-11
CONSOLIDATED PRODUCERS.
New Oil Company Badly in Need Of
Tank Cars.

Chanute, Kas., April 11.-The ex-
ecutive committee of the oil producers
who a consolidated their holdings
into a company to supply a Kansas
it is now in the market for mi cars.
If the arrangements pending with the
Santa Fe railroad are completed, the
shipments of oil from this part of the
field to Kansas City will begin this
week. An announcement that a rate
has been secured was a little prema-
ture. The rate was suggested and the
railroad officials are working on it.
The scarcity of tank cars is one of
the things which Will delay the rapid
movement of the oil for a while. The
Santa Fe company did not anticipate
the organization of the consolidated
company n is, therefore, hort of
tank cars. The tank car factories are
the product of the field gets to market.
But the producers are going to ship
ali they can and increase the ship
ments as the supply of tank ears in
creases.
It is the intention of the consolidated
company to ship by tank cars until the
pipe line is completed, which will be a
matter Of several months. The refinery
IN Kansas City VIII be started within
the next two weeks. The company Will
need every tank car it buys later on to
supply those portions of Kansas n
the middle west, where there are no
pipe line facilities.
There is an advantage in buying tank
cars because while they are in use, the
railroads pay mileage on them and in
this way the producers company can
earn the value of the cars in a few
months. Then where the ownership Of
the cars is vested in the railroads or
some other corporation, there is always
a chance of delayed shipments n
things like that, which in the long run
affect business more than ordinary re-
ha+ca UThnra4 a nnrnnra+fnT1 nu-nE ffE
cars it can control their movement,
whereas If the railroad or a foreign
corporation owns them. the producers
would be at the mercy Of somebody
else.
The members of the producers exec
utfve committee have been holding ses-
sions twice a day, working out the de-
tails of the plan of consolidation. me
members win leave Chanute Wednesday
morning for a trip to Humboldt n
Paola. The idea is to start the COM
pany with the maximum of production,
10000 barrels a day. This will enable
the organizing committees to do all the
work at once and thus Obviate the ap-
praisement of properties which may
wan to come in later.
h appraisers already are at work.
The real details of he consolidation
fall on them. The companies Whlch
have pledged their production to h
consolidated company are submitting
inventories and the appraisers
go over every item nj verify II. me
assets of the companies are to be
taken into the consolidated company
on the basis of the present value or
what they could be replaced for in
their present condition, n not on
the basis of original cost. This again
makes trouble for the appraisers, be-
cause it renders necessary an accurate
knowledge of the cost of everything
necessary for the conduct of h oil
business.
Production car be easily proved by
the pipe line statistics, but when it
comes to the value of tanks which
have been in service for two or three
years, or casing and pipe and things
of that kind, it is entirely a different
matter.
The route of the new pipe line from
here to Kansas City has been dis
cussed. but not decided upon. It is in
ended to take in all of the producing
districts and this may make a wide
divergence from the route Of the Santa
Fe. It is more than probable that the
pipe line will not follow the route OF
the railroads at all. There viii be
pumping stations on the line at Sedan,
probably one at Independence, GER
tainIv one at Chanute and others
aIong the line wherever necessary.
There will be storage tankage also.
The ganiz of the company are go
ing to be prepared to take car of all
the production of the constituent com
panies before a market is provided FOR
all of the production.