The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1905-04-10
MAKES CHEAP FUEL.
Oil From the Kansas Fields a Factor
in Kansas City.

Kansas City, April 10.--Kansas City
is getting cheap fuel and conditions
for the growth of manufacturing IN
dustries are growing better rapidly
While the gas company is fighting Tor
a new franchise the Standard Oil COM
pany is pushing new contracts for oil
to be used as fuel and the coal opera
tors are beginning to look for new
markets or a reduced output.
An agent for the Standard Oil COM
pany who was trying to get big con-
tract for oil to furnish the fuel Tor
one of the big plants explained that
the big output in Kansas is overload
ing the company with oil for fuel. He
said about 40 per cent of the Kansas
oil cannot be refined and must be used
as fuel. The natural market IS the
territory near where the oil is pumped,
for freight rates will prevent it being
hauled great distance, but Kansas
City is the natural market.
The company is Offering oil at fifty
five and sixty cents a barrel. but IS
said to have made some contracts IN
Kansas City as low as fifty cents a
barrel where the oil can be easily de-
livered on tank cars. That means oil
in the consumers own tanks
1t is estimated by an expert that oil
at sixty a barrel is as cheap as coal at
! S1.40 ton, and this estimate does not
allow anything for the expense OF put
/ ting the coal under the boilers. and
/ that is an item of considerable conse-
| quence in making up the cost of fuel
! At fifty cents a barrel 1t is something
! like $1.15 per ton for coal and When
4 the cost of handling the coal is count
ed probably 81 ton is not far from
the price, on the tracks that coal
| must reach before it can compete with
oil in the big steam using plants
The STANDARD is pushing the sale OF ITS
! oil for fuel One of the latest concerns to
| contract for oil is the electric light plant
| It is run in connection with the Metropoi-
| tan and it is not improbable that the
/ Metropolitan will contract for the use OF
/ oil when its contract for coal shall expire
at the end of this year. There has been
! considerable figuring done by the Metro
/ politan officials with a view to the posi-
4 BILE use of oil for the big power house next
/ year. This year it will experiment with
/ the electric light company and the results
/ will probably determine its future action.
The price of oil is so low that it will
! affect the price of gas for manufacturing
i purposes and coal as well. It IS estimated
/ that when natural gas is put in a lower
4 proposed will be necessary before gas can
/ compete with oil in the big steam plants
The coal operators must have lower
/ freight rates and lower prices Tor mining
or they will not be able to hold their
trade. They have been losing trade al
ready and they now have low frelgnt
| rate for steam coal Early last winter the
| freight rate on slack coal was cut to 30
/ cents, first a a rate to favored companies
and later as an open rate. Then nut coal
was given the same rate. This rate appneS
| to coal from the Pittsburg and Weir city
|
cents a ton. That probably accounted for
i the fact that the price OF coal Tor comes
tic uses did not advance during the win
ter. There is now a lower rate to the
country towns near Kansas City than IS
usual at this or any other season.
4 Cheaper fuel, whether it is gas, oil or
/ coal. will help the manufacturing inter
ests. The price OF coal IS q DIG item IN
every kind of manufacture. Even the beef
trust uses high prices for fuel as defense
when coal goes high and beef goes hlgher-
The first question every manufacturer
wishes to settle in picking new location
is the price of fuel, and the next is the
Dermanence of the supply. Kansas city
has both in its favor now.