The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-03-13
FOUND TWOR RATES
3. T. Mccarthy Testifies in Rail-
way Investigation.
He Wanted Fuel Oil for Use at
His Mines.
"a CENTS A HUNDRED.
Was the Freight Charge Quoted
by Frisco.
While the Standard Paid Six for
Same Distance.
4 CENTS A HUNDRED.

Kansas City. No. March 12.-When
/ the interstate commerce commission re-
sumed its hearing here today in the in
vestigation Of char ges of discrimina-
tion in railway rates on oil flied by the
Kansas Oil Producers association, it
was believed that the work in Kansas
City would be finished this evening.
There were several witnesses remain
ing to be examined but It was consider
ed likely that their evidence for the
most part would be cumulative, and
each man placed upon the stand would
/ be disposed Of quickly.
/ When the commission concludes the
hearing here, Judson c. Clements will
go to Davenport, Ia, to investigate
other charges of alleged illegal rate
making. Francis NJ. Cockreu ana
! Charles A. Prouty, the other commits
I sioners, will return direct to Washing
/ ton.
The testimony of E. T. Mccarthy, of
the Mission Mining company of Qua
! paw, Indian Territory, brought forth
4 two letters on oil rates, one from the
Standard Oil company's office at 26
4 Broadway, New York, and the other
from the st. Louis & San Francisco
railways general offices. Mccarthy
said that his mine was just over the
Kansas line, six miles from Baxter
4 Springs, Kan. He told of an efrort on
/ MS part 10 use OIL from the fAeiiloelS
field instead of coal at his mines. He
had, he said, on November 27 last, writ
/ ten E. K. Voorhees,, general freight
agent Of the st. Louis & San Francisco
railway requesting a rate on oil from
! the Kansas field to Quapaw. In let
ter written in reply by Mr.. voorhees,,
and which was introduced, the latter
quoted q rate of II cents hundred
pounds on crude oil and fuel oil from
Neodesha Kan, to Baxter Springs,
oF tn
Wrote to Standard.
At about the same time, witness said,
he had written a similar letter to the
Standard Oil company, and had received
a reply from c. W. OustOn, manager or
the fuel department of the Standard
Mr.. Custom letter, which was present
ed as evidence, read as follows
Replying to your favor Of the 12th
instant, while the rate OF frelghl from
Neodesha, Kan, to Baxter Springs is
only s "A cents per hundred pounds, 1t
lis "a cents per hundred to QuapaW
station L t. which would make the
price of oil delivered there a cents
a gallon, at which figure we DO not
think you could use oil economically
as against the low priced coal you
could probably purchase. OF course,
the amount of oil required to equal
ton of coal would depend upon the
quality OF the coal used, but with
ordinary. grade of run of mine coal, it
would take about three barrels Of oil,
~ gallons to the barrel to equal a. ton
of coal. We fear you will find the
price we name too high to enable you
to use oil to advantage as against the
cheap coal that you can probably pur-
chase.
These letters were introduced in an
attempt to prove that while the rail-
way company charged all others II
cents for transporting oil from Neode-
sha to Baxter Springs, it charged the
Standard Oil company only s y cents
for the same haul. The correspond
euce also was introduced to prove that
while the Standard secured a rate 6 IA
cents for transporting oil from Neode-
sha to Baxter Springs, a distance ap-
proximately of Sc miles, the railroads
i charged in effect II y cents for haul
of six miles further beyond the Kan
sas line.
WiIIhOyt Testifes.
E L. Wflhoyt formerly an agent at
Topeka, Kan, for the Standard Oil
company, but now an Independent
dealer with Offices at Joplin and
Springfield. No, was placed on the
stand. In reply to questions, Mr. Will
hoyt said:
sThe Standard Oil company when I
was with them was charged five dol
lars a car by the Terminal company in
St. Louis for transporting a car from
East st. Louis, III, to St Louis, Mo
To save this five dollars the Standard
laid a pipe line under the river and
every car of oil bound westward would
be pumped out in East st. Louis and
pumped into another car in St Louis.
This five dollars car saved was that
much off the ability of the Independent
dealer to live in competition with the
Standard.
Continuing Mr.. Willhoyt said:
''Since I have been in business for
myself 1 have had much trouble in
getting my tank cars transhipped at
St Louis. This generally happens
when I am low on OIL Once l had
tank car of oil drift off from East St
Louis to Alabama. At the time / was
out of oil and I lost a. lot of customers
on account OF it. The Standard com
pany, my competitor in Springfield, had
plenty of oil and got the customers 1
lost"
Mr.. WiIlhoyt said that while agent
for the Standard at Topeka ne was in
structed to watch all shipm ents of oil
to that point and to ascertain the
name Of the shipper and the point Of
How would you get information
from railroads as to your competitors
shipments" was asked of Mr.. Will
'0' Bribery System Worked.
ssI never went to railroad officials
said the witness I always got my in
formation from employees of the rail-
road. was allowed eight dollars a
month to spend with railroad employees,
in buying drinks and making myself q
good fellow, and I was permitted to
give away oil and gasoline to railroad
employees and report such gifts as
donations The So a month was sent
me in a personal check by z. P. Pratt,
manager for the Standard in Kansas
| CITY. and later by J. W. Mayer. who
succeeded him as manager. My in
structions how to spend the check
never came by letter; they were al
ways given in person. I was also in
structed to promise railroad employees
good positions with the Standard Oil
7