The Somerset reporter., 1905-04-13
The OH Fight in Kansas.


but the field was not developed and the
output was small. Later prospecting
for natural gas developed larger oil
areas. 10 1901 the output was 10000
barrels and 10 1902 it was nearly doubled.
The oil fever reached its height soon after
this and the rush to the field was on in
earnest. From all sections of the State
men Of means invested and numerous
companies we're organized. In 1903 the
oil output was more than million bar
rels and the talk was oil, oil, OIL from
morning till night.
just here the Standard Oil Company
stepped in. 1t had operated a refinery
at Neodesha, and announced that it
would lay pipe line 200 miles to con-
meet with $4,000 900 refinery at Kansas
City, Missouri, to relieve the railroads
which had been taxed in handling the
tank-cars. The pipe line was laid and
| the refinery built in 1904 and the Kansas
oil output for that year was more than
| $500 900 barrels, five times greater than
/ the year before.
And now the fine work of the Standard
Oil Company began to be apparent. I'm
med'ately following the opening of the
pipe line, railroads advanced the freight
on crude oil from ten to seventeen cents,
which producers found to be prohibitive
The only market and the only place OF
delivery was the Standards pipe line.
10 1903 the price paid for crude oil was
$l.38 per barrel, in January last it was
78 cents.
The price paid by Kansas for refined
oil was as high as before oil was found
in the State, except in few towns
where the single Independent refinery
sold it at a lower figure, where the
Standard cut the figure from twenty to
nine cents in an attempt to drive out the
independent concerns. The people how
ever stood by the company and refused
to buy the Standard oil.
! The situation when the Republican
| legislature met, Jan. 10th last, was, the
price of crude oil cut nearly so per cent,
and railroad rates nearly doubled, the
business demoralizad and no one making
any money but the Standard Company.
A bill providing for the erection Of a
! State refinery was introduced, supported
| by all parties, advocated by Kansas
| papers. All Kansas was ST lme. The
people demanded the passage OF the re.
! finery bill and they were desperately in
earnest. The question of constitutional
| ity was raised and TO meet this a clause
was inserted providing for the erection
OF branch penitentiary In the heart OF
the oil region and the building of an oil
| refinery to give employment TO the con-
victs. Political lines were swept away
and Republicans, Democrats and Popu-
lists voted "aye' on the same measure.
This act was supplemented by law to
make pipe lines in the state common car
riers; another to make discrimination be-
tween different localities for purposes of
stiffiing competition, Unlawful; maxi
nun freight rate bill and a law vesting
! power of control in State board of rail-
road commissioners.
The good effect of these measures was
Immediately seen. Before the legisla-
ture adjourned the freight on car load
of oil from the independent refinery at
Humbolt was reduced from seventy
eight to twenty seven dollars.
This lesson by the Kansas Legislature
ought to prove a salutary one to other
legislatures, to railroads and to the
mammoth grasping corporation, the
STANDARD Oil Company.