The Minneapolis journal. [volume] (Minneapolis, Minn.) 1888-1939, 1906-03-12
OIL TRUST UNDER
The SE E | { |. J:
Interstate Commerce Commission
Opens Inquiry into Kansas
Conditions.

Kansas City. March 12-Acting upon
resolutions passed by both houses OF
congress, three members of the inter
state commerce commission today began
an investigation here into charges made
by independent producers of Kansas
that the railways of Kansas discrlm-
mate in favor Of the Standard OH COM
pany in the matter of oil rates outside
that state.
The railroads involved are the Santa
Fe, the Missouri Pacific, the Missouri,
Kansas 6 Texas, the st. Louis y San
Pacific, the Kansas City Southern and
the Burlington. ..s:s
The Notables Present,
The members of the interstate COM
merce commission who will make the IN
yestigation are Francis N; ~, o o'as
hudson @. Clements and Charles A.
Prouty.
John T. Marchand, who has been In
the southwest for two weeks making a
preliminary investigation of the pro-
ducers' charges, was present today as
the attorney for the commission. FRANK
III. Monnett, former attorney general OF
Ohio, and Clifford Thorne of Washing
ton, Iowa, were present as counsel 1or
y the independent producers. 49, =
The railroads interested had repre-,
there were several interested specta-
tors. Among the latter was c. D. Cham.
berlain of Cleveland, Ohio, secretary, of
the National Petroleum association,
comprising independents of Pennsyl-
vania and Ohio. He said he was here
to watch the proceedings IN the 1nter-
ests Of his association. ffS'":-.
Based on Kansas Plea. ~
The agita ton for the investigation
begun today was started some time
ago, when Clifford Thorne, acting upon
behalf Of the Kansas Oil Producers
association, fled with James R. Gar
Washington. statement in which in
stances of alleged Discrimination
against the independents in the matter
of rates, were made. .- :.
While members of the producers, as
ISOLATION and railway officials will be
the chief witnesses, the interstate com
merce commission has invited all 'sper'
having any interest in the proceed
ings,'' to appear to produce and cross
examine witnesses. It is expected that
the hearing will last thru Wednesday
One Man Holds Key. -
A. F. Robertson, of Cherryvale, Kan
sas, was the first witness examined Mr.
Robertson. who formerly was news
paper correspondent, is now a member
Of the Kansas Oil Producers associa
ton, which makes the charges of dis
elimination. Mr.. Marchand stated that
Mr.: Robertson probably would be the
most important witness produced by the
independent oil interests, and that the
government would base it's investiga
ton mainly upon his testimony.
Mr. rRobertson's testimony brough
out an interesting history of the Kan
sas oil field. Mr.. Robertson said tina
he was member of the Uncle Sam OF
company, which is affiliated with tn
the Standard oil company, the Prairi
Oil & Gas company and the Repubi
Oil company were not members of tn
Kansas Oil Producers association
known as the independents. @5.
Mr.. Robertson said that oil was dis
e.ov ,aee in z Kansas in paying quantitie
barrels day. now the p 9nah wSs
from 5000 to 10000 barrels day. Tn
Standard and it's affiliated companies
the witness said, produce only 1000 o
1900 barrels a day. Practically a,
the oil in the field is produced by tn
independent companies.
The first pipe line was laid in Kansa
II 1896, :fromsThayer to Neodsha I
1904 pipe line was built from Neot
sha to Caney near the Indian territor
line and it was gradually extende
down to different points in Oklahom,
The Standard has refner in Neodsh
for ten years and has pipe line fro1
Neodsha to Sugar Creek (Kansas City
Five, years ago, Mr.. Robertson sal,
the rate on crude oil and refined 20
from Cherryvale, Kan, to Kansas Cit,
was 10 cents a hundred pounds. I
Omaha the rate was Is cents. This ]
cent rate was in effect till 1904, when
was changed to II cents to Kansas Git
and 22 cents to Omaha. - =
The weight Of a gallon of oil was est
mated by the railways prior to 1904 .
4-IO pounds. In 1904 a change ";
made and the weight was estimated
40 pounds for both crude and refine
Oh. These rates applied to Kans;
City, Mo-, and to all points in Missou1
Nebraska, Colorado and Oklahoma.