The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-06-05
Running South From the Kansas
Fields to Port Arthur.
700 MILE PIPE LINE.
Shell Company Has Paid Up
Capital of $50 Millions.
Promises to Be q Great Factor
in the B4g Oil Fight.

nouncement that the Shell Trading &
TRANSPORTATION company of England
will enter the oil business in Kansas
and the territories has been interesting
news to the oil operators. The Shell
company is the great competitor OF
the Standard Oil company in Russia.
at Beaumont Texas. and in all the oil
fields where the oil is Of heavy grade.
It owns or controls absolutely the pro-
duction of the Baku fields in Russia,
the foreign market for Tevas oils. and
is the agent handling the production
of the British company operating in
India with hundreds of wells in Upper
Burmah.
The Shell people have recently made
a hard and fast alliance with the Pure
the Standard company IN America OF
consequence, whereby the Shell COM
pany is to be the foreign agent of the
Pure Oil company, and in exclusive |
control of all opposition to the Stand |
ard Oil company all over the world. |
This deal has been years in the max
ing The Shell company has never
gone very heavily into the business of
selling high grade oil. 1t has always
bought and handled the heavy grades.
The Pure Oil company, on the other
hand, always has handled the highest
grade Of the American product. But
the Pure Oil company cannot furnish
the Shell company. with al 1.-The high
grade oil necessary to supply the
worlds markets and so the Shell COM
pany comes to Kansas.
Has Agents Here.
The agents of the Shell company,
who have been in Kansas. are H
Jannen of Berlin and c. +. Rule of
New York, in charge of the American
branch. They investigated the condi-
- d., H. loT-7 IL IL
ters received from them indicate that
they have recommended that the Shell
company enter the Kansas-Territoryl
field and purchase production here.
These agents spent a month in the
field and enjoyed exceptional facilities
They told several producers in this
field that they were surprised that so
much high grade oil was produced in
this section.
At the head of the Shell company is
Sir Marcus Samuel, ex-lord mayor of
London. It has a large fleet and has
been in exclusive control of nearly all
foreign oil fields. Of the companies
which have found an extended market
Tor fuel oil it may fairly be placed at
the head. From the marketing of
fuel oil its advance into participation
into all other phases of the oil bust
ness has been in part voluntary and in
part under pressure. It represents the
petitors of the Standard Oil company
After securing the production of the
Russian fields the Shell company. en-
tered the Dutch East Indies fields. The
Royal Dutch Petroleum company. the
ROthschilds and French and Russian
interests formed the Asjatic Petroleum
company. Later as part of the same
general plan of securing control of all
foreign markets, the General Petro-
ieum company was organized. This
brought IN all the individual operators
! IN the Roumanian fields. other COM
panies, financial institutions and indi-
v1duals concerned with the oil indus
try, are SO closely related to the com
b1nation that it may be said to unite
most of the opposition to the Standard
Oil company in all the countries Of f,e
old world.
Has Vast Capital.
The Shell company has paid m
/ capital of $50 million dollars. owns ifs
meet OF ships, has its own selling
agencies in all the markets of the
world, buys its oil outright and pavs
for it 1t is not in the business Of
! producing oil. It has never been in
the business of refining or producing
The great difficulty with the Shell
company up to this time has been to
md an adequate supply of high grade
/ OH 20 enable It to compete successfully
/ with the Standard Oil company.
To get Kansas oil to its Sims the
] smell company, so the promoters saw.
has agreed to build a pipe line from
! the Aansas-Ie rritory field to Port Ar
Ihur- This pipe line will be more than
/ 700 miles long in a direct line. and
/ with the laterals, means the constr,Ic-
| ton of more than 1900 miles of nine
me cost OF the line will be about
million dollars. At Port Arthur the
Shell people have their own Ioadine
racks. their own ships and docks and
are 1uIIy equipped. The Shell COM
pany was one of the first companies to
carry Beaumont oil to foreign mar
kets- Early in the DEVELOPMENT of the
| Beaumont field the Shell company
made contract with the J. NJ Cuffev
Peuroleum company which secured for
II an adequate supply of cheaper
grades or oil. It constitutes the most
complete cooperation of independent
interests which has been effected
against the Standard in this country
Standard Sought It.
The Standard Oil company tried
some years ago to buy the control of
the shell company, but the managers
Of the Shell company asked dollar for
dollar of their invested capital and the
standard company was not willing to
pay this.
By the combination with the Pure
Oil company and the Kansas pro-
ducers, the Shell company is in a posi-
ton to compete with the Standard
company in all branches of the oil in
dustry. It's control of the fuel oil
market is now undisputed and its en-
try into the high grade oil branches
is taken as a hopeful sign that the
monopoly Of the Standard company
will no longer be as complete as it
/ has been.
Saloons Open Sunday.
Kansas City, Kan. June 5.-The sa-
4 looms did the usual back and side door
! business yesterday. The saloons in the
.rsrfraitrr tia Il