The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-08-01
LINE TO ST. LOUIS.
Kansas Oil Producers Assured OF a
Good Market.

Pittsburg, Pa, Aug. 1.-The Pittsburg
capitalists who are financing the pipe
line from Kansas to the Gulf of Mexico
will begin Immediately upon the COM
pletion of that line, the construction OF
a pipe line from the Kansas oil fields to
St. Louis and a refinery in the Mis-
Sissippi river city to cost not more than
21z million dollars.
This is the reason why the promoters
have been securing Kansas production
far in excess of that required for the
Gulf pipe line. The production asked
by the f1nanciers was 10000 barrels
daily The amount secured is in ex-
cess of $4,000 barrels daily.
1t was part of the agreement by which
the big acreage and production of the
Cherokee Oil company in Kansas were
brought into the Gulf pipe line arrange
ment that the St. Louis line and refine
ry be built. The Cherokee Oil company
is owned by the same persons who own
the Cornplanter refinery in Warren, Pa
the largest independent refinery in the
east The CornpIanter people decided
some time>last fall, after trip over the
Kansas field, to build pipe line OF
their own from their wells at Chelsea,
/. T., to ST. Louis and to erect the re-
finery. But the organization of the
Gulf pipe line scheme and its direct
appeal to the producers caused delay
in the execution of the plans.
Two Lines Decided Upon.
When the MELONS Of this city took
hold of the Gulf pipe line and an an
nouncement was made that it was their
purpose to fight the Standard Oil COM
pany for the control of the markets OF
the middle west and Mississippi valley,
the COrnplanter people again urged the
opinion that St. Louis was a convenient
place from which to fight for the con-
troll OF the refined oil business in the
territory mentioned. This was con-
Cured in by the others interested with
the result that the two lines were de-
termined upon.
Each of the lines will be six inches in
diameter. This will give daily capac-
ity of 10000 barrels to the gulf and TO-
600 barrels to ST. Louis. At the present
rate of Kansas-Territory production,
according to the latest estimate made
by Standard Oil company officials, this
will take care of one-third of the pro-
duction of the entire field.
The Gulf line and the Port Arthur
refinery will handle the oil for export
and for the southern and southeastern
states while the st. Louis. line and re-
hnery will handle the oil for the middle
west and the Mississippi valley coun-
try The whole plan involves the in
vestment of Is million dollars 1t is ex-
pected that the working out of the
scheme will take at least year and
half More than six months Will be
consumed in building the line to the
gull.
Rivals the Standard.
This is the greatest consolidation of
oil interests made in this country since
the organization of the Standard Oil
company itself. The Pure Oil company
of Pennsylvania, the present greatest
rival of the Standard Oil company, is
capitalized for only 10 million dollars.
1t controls a limited amount of the pro-
duction of the eastern fields. The new
company will be capitalized for 20 mil
lion dollars based on the actual value
of the properties included. In the mat
ter of owning its own oil, the new COM
pany will rank higher than the Stand
ard Oil company in this field. In pipe
| line mileage the Gulf line will be sec
ond only to the Standard company, the
| mileage exceeding that of the Pure Oil
| company. In its alliance with the Shell
Trading and Transport company OF
London. for the use of the Shell fleet
| products at the Shell depots throughout
| the world, the new company begins at
| a point which required 20 years of eff
| fort on the part of the Pure Oil COM
| pany to reach.
Promoted by Kansans.
| The promoters of this consolidation
which has resulted in turning Pittsburg
capital into the scheme. are all Kan
sans H. E. West of Peru, president
of the Kansas Oil Producers associa-
ton; w. r. Stubs of Lawrence, NJ. A.
! Low of Topeka, J. f. Mundy and ]. N.
| Mcdonald of Chanute, William Geiser
mayor of Peru, and others have spent
| time and money in carrying out the
| plan. 1t has required years steady
work and attention to get the deal
| through. The plan was first launched
| in Chanute, Kan, August 8. Ever since
| that time Colonel Mundy, at least. has
| been devoting his time and attention
| to nothing else.
| -~ze--------
| re TN