The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-03-06
STANDARD OIL
FILES A REPLY.
Presents Its Answer to Com
missioner Garfield.
Asks for a PrOmptand Full In
yestfgatiOn.
HAS DONE NO WRONG.
Kansas Oil Producers Treated
With Utmost Fairness.
Has Really Been Irving to Do
Has Really Been Trying to Do
State a Service.

New York. March 6.-M. F. Elliott,
attorney for the Prairie Oil & Gas COM
pany, of Kansas, has presented to Com
missioner of Corporations Jas. r. Gar
field, at washington, the first answer
of that company in regard to the Kan
sas and Indian Territory oil fields. The
company asks of Commissioner Gar
field, the most full and prompt investi-
cation possible at his hands, feeling en-
tirely sure, as Mr.. Elliott says: THAT
when their relations to the oil producers
of Kansas are fully laid bare it will be
seen that the latter have been treated
with the utmost fairness" The state
ment adds: THAT the recent action of
the company with reference to its Oper-
reason. The legislature of Kansas was
threatening to pass and has indeed
passed laws, compliance with which is
an utter impOSSibility. If they are to
be enforced the company certainly does
not desire to increase its investment in
Kansas"
Mr.. Elliott states further that on in
Vestigation the many sensational
charges recently made as to relations
of the company with railroads, etc, will
be entirely disproven; that the agitation
has not been by the legitimate oil pro-
ducerS, but principally by OVercapital-
lied fake stock companies, who have
sold their stock to the public and are
seeking a scapegoat.
ION January l. 1906" continues the
statement, 1.-THE company had invested
in the business over nine and one-half
millions of dollars, about equally divid-
ed as to cost between general equipment
and crude oil in tanks 1t had paid
the producers for the crude oil over one
million dollars more than its value on
January 1. The increase in stocks of
crude oil during the year 1894 was
nearly four and one-half millions of
barrels, all of which the company had
m, q nTOdnR6TG
tankage for
1.-THE tankage cost an average of %
cents per barrel. In the month of jan
uary 1905, the daily production of crude
oil had reached the enormous average
of over %, 500 barrels. and the daily con-
sumption about 10000 barrels, so that
there was an excess of production to be
provided for of over $4,000 barrels daily
In order to provide a further mar
lxet for this enormous and increasing
production, the company has under
way line of pipe to Whiting, Ind, at
which place a large oil refinery is To-
Gated. This line of pipe, together with
its necessary equipment VIII cost over
three and one-half millions of dollars
All together the amount already in
vested and contra ted for by the Prai-
RE Oil & Gas company in connection
with the KanSas-Indian Territory oil
field amounts to nearly Ia million and
much more will be required. The
present accumulation of about five
millions of barrels of crude Oil is as
much as can be used and marketed in
the next two years with present facili-
ties Notwithstanding the enormous
over production in the Kansas-Indian
Territory field, the decline in price has
been relatively no greater, considering
the quality of oil they produced. than
the decline has been in other produc-
ing sections of the country
The entire statement of which the
above covers but a few points is a
lengthy document.