The Salt Lake tribune. [volume] (Salt Lake City, Utah) 1890-current, 1906-03-14

SCREWS WERE PUT ON TO
AID THE STANDARD TRUST
Rates Boosted Until Freight
Tariffs Exceeded Market
Price of Product.

Price of Product.
KANSAS CITY, March BIN the inter
state commerce hearing here today into
the charges OF the Kansas OIL Producers
association that Kansas railways discrim-
inate in favor of tho Standard OH COM
pany In the matter OF giving rates on
oil. A f Robertson Of Cherryyalc. Kan,
n member of tho Unclo Sam on com
pany, md F, A. Leland. assistant general
freight agent of the Missouri Kansas *
Tcxas railway, gave important testimony,
Five years ago, Mr.. Robertson said, the
rate on crude oil and refined oil from
Cherryvale, Kan TO Kansas city was ~
cents per leo; TO Omaha the rate was ID
cents, This 10-cent rate was In effect un-
III 1904, whom II was changed To II cents
TO Kansas City and y cents TO omana.
The weigh, of a gallon Of oil wss IdS;
at six and four-tenths pounds.
Boosting the Rate.
In 1904 a change was made and tho
weight was estimated at seven and four
icnths pounds for both crude and refined
oil. These rates applied TO Kansas City,
Mo- and TO all points In Missouri Ne
braska, Colorado and Oklahoma.
What was tho rate from Cherryyalc
10 Atchison and LeavcnwoTth at the time
asked of Mr.. Robertson.
1T was 10 cents
When in 1904 the railroads raised the
rate for transporting oil from Kansas
points to points outside that State did
they also raise the rate for transporting
other commodities. such as coal. wheat,
lumber and so on?'
NO, sir. The advance in rates applied
only to oil.
do YOU know Of any commercial rea-
son why the rate on oil should ndvance?"
W Of hGyrn nnN hnn al 10 ~
discover any
Standard Begins Boycott.
Did you sell to the Standard OH com
pany prior TO the completion OF their
pipe line to Sugar Creek9'
Yes cir
Did you sell them a1terward?'
Why"
The Standard OIL company boycotted
all the Kansas field February 10 1905.
and tore out all pipe line connections
with Independent producers and Issued or
ders to purchase no oil from Independent
producers, so we had no market
What Is the present railroad rate on
oil from Chanute TO Weber Kan. -
Ten and one-half cents, That Is dis
tance Of 2S4 miles. Weber is near the
there TO Superior. Neb. But the rate
from Chanute to Superior is 80 cents.
that the difference OF seven miles In
distance makes a difference of l9ia cents
in the rate"
Other Inflated Rates
From Chanute 10 Kiowa, Kan, the
distance is 19l miles said Mr., Robert
son, and the railroad rate on oil is .
cents. Alva. Okla, is eighteen miles fur
ther. but the rate from Chanute TO Alva
is 81 cents, a difference of 26 cents. From
Chenute to Coolidge, Kan. the distance is
49, miles and the railroad rate on oil is
10 cents. Six miles further is the town
of Holly. Colo. The rate from Chanute
TO Holly Is 30 cents. a difference OF 35
cents In the rate for an added distance
OF six miles
Mr.. Robertson testified that the rail-
road rate from Caney, Kan. to Bartles-
vile, /. T., n distance OF sixty-one miles
prior to the building OF the pipe line by
The Standard OIL company was u cents
and IL was reduced to 5 cents per 100
pounds while the pipe line was construct
ing. After its completion the railroad rate
was put up TO 1s cents, and 1t stands
there today.
Rate More Than Price of Oil
What effect did the 19-cent rate have
upon the independent producers"
1T makes the rate from the well to
the refinery cents n barrel more than
the top prices paid for crude oil In Kan
sas or the Territory. The top price paid
freight upon a barrel would be 81 cents, -
F. A Lennd, assistant general freight
agent OF the Missouri Kansas 81 TeXas
railway. was the second witness called.
He told In reply to questions OF meet
Ing at St Louis In June. 1904. of the
traffic managers OF the Missouri Pacific.
slider raising the oil rate from Kansas
He said that Mr. Bogardus, trafflc man
ager OF the Standard OH company, was
present. but he did not recall that any
OF the Independent oil rehners OF Kansas
had been asked to attend the meeting
Change Was Looked UP.
Didn't YOU know that the change was
contemplated before that meeting" Mr.
Leland WAS asked.
Yes. we had discussed IT."
II hold IL letter signed by you and ad-
written written N May & ' iso4 said al eDS Mr March arch
The letter, which, Mr., Leland admitted
the rate upon crude oil from southeastern
Kansas 10 Kansas City, Leayenworth
Atchison and St Joseph would be RAISED
when did the l7-cent rate go into ef
fect?"
August Is. 1904"
About that time the Standard Oil com
pany completed pipe line from the Kan
sas oil field to its refinery at Suga
creek, in Missouri did it not?''
Yes
Damaging Admissions.
Mr Leland admitted that under IN
Kansas rate law the rate for oil from
Ghanute. Kan. 10 Kansas city, Kan
was 9;z cents in less than carload lots
But to Kansas City. Mo-, It was 81
cents, and the distance turtner was onl
seven miles by his road, which made
dctour to get Into Kansas City. Mo. II
said his road hauled tank car seventy
Ave miles in Kansas under the Kansa
rate law for s233 and charged $50 10
the same service in Missouri
G. D. Webster president OF the Wester
refinery at Humboldt, Kan. this after
noon told how he had built up a pros
porous oil business, how IL was almos
ruined by increased railroad rates in 100
and how the maximum freight rate law c
Kansas had made 1t possible for him I
clear profit again.
Indicted for Perjury.