The Goodland republic., 1905-02-03
NO. %.
THE STATE OIL REFINERY Law
THE STANDARD OIL L0BBY oS HAND 70
Try 10 DEFEAT THB BILL
They Urge the sreat Expense Of a Plant.
That It Won't Pay, That Kansas Is Not
q Productive Oil Feild-Their SPs-
eial Pleading Is Very RedicuIous.

There is a proposition before the state
legislature TO pass a bill establishing an
oil refining plant, to be operated by the
state, and employing convict labor, only
a few salaried experts being required.
There is no question but that the plant
would pay for itself in short time, be
sides the raPacity and extortiOn of the
oil trust would be curbed and the peO-
pie of Kansas be saved an immense
sum-
But now comes the Standard Oil
trust, and, through the daily press, by
interviews of head officials, discourage
the proposition on the grounds of, the
cost of a plant, that it would not pay,
and that Kansas is a poor oil field. IN
refutation of the last mentioned plea,
the following article from an exchange
as to Kansas oil production is given:
The total of the pipe line runs for
December, in the Kansas oil field, viii
aggregate zoo, 900 barrels. For 1904 the
total field will be approximately $780,
900 barrels. The increase is a fraction
more than 500 per cent. This a new
record in the history of the petroleum
industry. Since the discovery Of oil IN
1856, nothing like it has been dreamed
of. Kansas has made more progress in
the development of the oil industry in
II months than was accomplished in
Pennsylvania in II years, or than was
accomplished in Indiana in II years.
January 1, 1904, the total number of
producing wells in the whole field be-
tween Kansas City and Cleveland,
Okla, was ,4S9. There are now more
than 1000 producing wells, and this
number will be increased to I, 400 by
the end Of the year.
That an oil refining plant would not
pay IS simply ridiculous. Whence came
I the Rockefeller millions, and the i'm
mense dividends on Standard Oil ilstOck?
The Independence Daily Reporter has
the following:
The refinery here estimated figuring
on the state plant prOposition) does not
propose a wax plant, just a plain re-
/ 6nery to take out the benzine, illumin-
]
rest would go into liquid fuel to heat
the charitable, and penal institutions of
the state. The estimated profits, as
shown by these figures, are astounding.
But when it is considered, that every
time the Standard Oil was reOrganized,
It added many parts of water to one
part of actual investment, and, that it is
paying dividends on ali this watered
stock at the rate of 48 per cent, It is an
easy thing TO understand what this en-
Ormous percentage of profit, on the ac-
tual cash investment, in the oil refining
business means-and this, too. figuring
refined oil at only six cents a gallon to
the cOnsmer.
Senator N. L. Lockwood IS the au-
thor of the estimates, taken from the
Daily Reporter, of Independence, Kan.
The cost of the state plant estimated IS
$500. 900, and If the experiment proves
a success, to enlage It as business may
require. Even at the low price of six
cents a gallon for refined oil, {. o. b. ar
the refinery, the estimated profit per an
mum would be S342, ,948, or 199 per cent
of the investment.
Unquestionably, however, opposition
to the passage of the bill viii be de-
veloPed in the legislature, which viii be
prima facie evidence that the Standard
! Oil has been getting in its work, and
is trying to still the waves of OPpOsi-
ton by pouring oil upon the waters
Petroleum Is often used as a lubricant,
not only OF Journals" but also Of the
machinery of government.