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.

An Interesting Account of the Trouble as
Told by a Correspondent of the
Omaha World.Herald, Who
Makes Out Bad Case
Against Them.
The fight against the Standard Oil
Trust by the people Of Kansas is at.
traoting world. wide attention and
are showing their sympathy for Kan
sas. On February 81, the Illinois
legislature adopted resolution offer
ing to lend the State OF Kansas the
sum of 100000 without interest, for
period OF siI years to aid in estab-
fishing a 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
a 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 prt posed by some that
the state erect refinery. Oklahoma
iB 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 2. Gallagher,
the staff correspondent for the Omaha
World-Herald. in dispatch to that
newspaper, under date of Topeka, Feb
21. Mr.. Gallagher says: TT was
bitter experience with the sinister in
fluences Of Standard Oh that led the
people Of Kansas, but as late as two
years ago the oil industry amounted
to little. Twelve years ago STANDARD
On wriggled into Kansas under the
deceptive title Of the Forest Oil com
pany. Departing from its 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 VIII.
son county many wells were sunk, but
the Oil refused to gush and the boz
1ngs we're abandoned. Standard Oh
relinQuished Its leases to hundreds of
acres and surrendered the task Of de-
vnlnnnanf nd
moters."
The first important strike was mads
by Charles Knapp, six years ago, at
Chanute, near one Of the abandon
properties OF the Forest Gil company.
A little later 1t was found that Peru
Kansas, was located on vast oil de-
posit. 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.
veloped the Forest Oil company under
went several changes. Its small Cap
italization disappeared, and on Janu
ary Z, 1901, 1t took the name OF the
Prairie OH and Gas company and III
creased its capital stock to 50, 500, 000.
The company then built pipe In g. 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 boom
1t suddenly raised the price OF crude
oil from 80 cents to Sl.l0 barrel
The effect was magical. In Twelve
months the output grew from 322,
600 barrels with value Of $3.50, 900
to LOIS, 900 with value uf Sl,l2O.-
O18. A greater part Of the output
was taken by the Standard Oil com
pany, but each day e. j. Webster,
who has built an independent refinery
at Humboldt Kan, took 200 barrels.
In the meantime, Standard Oil, ac-
cording to Mr.. Gallagher, had been
whettipg its Cimitar With the inten
tion of striking down the entire inde
pendent oil industry Of Kansas. The
capacity OF It's plant at Neod. sha was
ADDED to until II had reached 800, 600
barrels If crude oil day. The lipe
lines were eXtenC ed until the maiu
conduit ran from Tulsa in IT,, Usage
nation south OF the Kansas state ine
through Kansas to Kansas City, Mo
At CLANCY, Neodesha, Altoona and
Humboldt, the Prairie Oh and Gas
company built giant tanks, and began
to store oil. BY January 1, 1905, il
had q total stock on hand OF 5,44S. .034
barrels. Until last Augus:, when the
Standard finished It's system OF pipe
lines through The state, oil had been
bringing prices ranging, from 30 t.
e1.40 a barrel, according to It's spectic
gravity. 1t vas at this juncture tha
Standard Oil sprung lis trap, in which
the oil producers and consumers Of
Kansas and the single indepeI dent oil
Teflner, E. j. Webster, are still squif-
ming, but with a show OF life that
astopishes the captor. The price OF
crude oil began TO fall In four re-
ductions the prices we're cut TO II cts.
for barrel Of the best Oil. Another
smash OF 9 cents was made on Janu-
ary 81, 1905. TO what low level
prices for crude oil had sunk is Illus
tratcd in the following comparative
table: Western crude oil price So
degree and above, 70c; 3 J to 80, Coo;
81 to 3ll, 60c; 80! 10 81, 55c; 80 u
3O4, soc; 291 10 80, 45c; 20 to 294, 40c;
2s1 to 20, $50; % TO 284 SOC; 22 To
% heavy, 29u per barrel. Bartlesvile,
/. T., 82c per barrel Eastern crude