Abilene weekly reflector. [volume] (Abilene, Kan.) 1888-1935, 1906-03-22
THE PROFIT IN OIL.
More Testimony Before Interstate
Commerce Committee.
HOW STANDARD AGENTS REPORT
Pine Line Is Laid ON santa Fe Right
Of way-Adr. wilhOyt Reports
Finding Important Letter
Regarding Instructions.

hearing Wednesday before tne cOA-
mittee Of the interstate commerce
commission the cost Of refining OH
was made public and It showed sur
prising profit above the cost. Kero-
sene oil sells in Kansas City 70 CON
sumera for IL to Is cents a gallon.
That ia IS to 81 barrel.
@. W. Mofitt, superintendent OF INC
Standard Oil company's refinery az Su-
gar Greek, testified as follows:
"How much crude oil do you reane
day at Sugar CreekT
about 5000 barrels q day"
"What do you estimate the cost 70
be to refine barrel Of kerosene oil7"
"I would estimate that barrel Of
40 gallons Of kerosene would cost 10
to 20 cents barrel to refine"
"What do you make from crude ONT
From 100 gallons Of crude oil we
make 10 to 70 gallons OF gasoline 20
gallons Of kerosene and GA to % per
cent of fuel oil. Subsequently we re-
distill this 65 per cent Of fuel OIL ana
get from 1t 70 per cent. of gas OIL ID
per cent. of fuel oil and the balance Is
netroleum coke, which is used as fuei
and which we sell for $3.50 per ton.
"Does not this 65 per cent. left from
the original distillation pay the enure
cost Of refning?"
II cannot say"
A. H. Coffin, Of Longton' Kan, q
pumuer and refner Of oil, testlneo
that the freight rate outside of Kan
sas prevented him from shipping out
of the state. He said the cost OF re.
flning oil was Is to 80 cents a barrel
Of AZ gallons. From 100 gallons Of
crude oil he would get eight gallons
Of gasoline, 80 to 35 gallons OF kero-
sene and the remainder would be 1uel
oil which he would sell for one cent
a gallon.
H. B. Scott testified Wednesday tna'
until recently he was director OF tne
Prairie Oil and Gas company, the Kan
sas branch of the Standard OIL com
many. He resigned year ago ant
!, went into business for himself. HI
said that oil from the Kansas field goei
to the Atlantic seaboard through tn
Prairie Oil and Gas pipe line to Whit
ing, Ind, through the pipe line OF tn
Buckeye Pipe Line company to easter
Ohio and from there through the pip
, lines Of the National Transit company
and that all these were owned by tn
> Standard Oil company. This company
! he said, had its own telegraph wires
: upon its own poles, all over the Kan
, sas, Indian territory, Ohio and Indian
, fields and that by means Of thes'
and a secret code, all Standard agent
were in direct communication wit
the Standard headquarters at z
> Broadway.
a J. r. Koontz, general freight agen
/. of the Santa Fe railroad, with head
: quarters in Topeka. was also a Wi
t ness.
: Are the pipe lines Of the Standar
Il Oil company upon the right of wa
9 of the Santa Fe railroad?" he we
g asked.
"They are for portion of the dii
lance"
= For what distance?"
/ 1.-THE pipe lines are on the right
IS way Of the Santa Fe railroad for
L distance east Of Sugar Creek to a poll
o somewhere In Illinois, where thu
!. branch of. West of Sugar. Creek Il
u pipe line is upon the right Of way
n the Southern Kansas division Of u
Santa Fe for considerable distance
"How did the Standard OIL COL
ia pany get this right Of .way3"
ar Il do not know. That is a matt
r with which l do not come In contact
" @. W. Mayer, manager Of the Star
i'd ard Oil company in this city, who "
AZ witness tuesday, was recall
ed Wednesday. Tuesday q. M. Wilho
an Independent oil dealer in SpriI
field, Mo-, testified that while he "
agent for the Standard Oil in Tope
lie Mr.. Mayer allowed him monthly
Cd pense with which to buy inf
TO nation from railroad employees as
ne incoming oil shipments to comp'
ow tors, and that this money came in
Cd form Of a personal check from
Mayer, and that Mayer wrote b
. that he had instructions from
Standard OIL company no longer
remit this expense money by me-
Of q check.
Mr.. Mayer denied all Of this positi
ly. Mr.. wilhoyt returned Tues
night to Springfield. The conn
sion received a telegram from
wednesday stating that he had fol
among his papers the letter from
Mayer and that he would mail 1t to
commission.
Mr.. Mayer testified Wednesday
he made regular reports to the b
once Of what his competitors were
'At ing and be showed tia hlant. IN
10 upon wnicn ne made these repC
ad' He said the information was gath
lem for him BY all his employees. He
ure he aid not report upon the doing
-. the Republic Oh company or the
ers-Pierce OIL company.