The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-10-18
Want TO KNOW.
Independent Oil Producers Try
Question Method.
Put Candidates for Attorney
General on Record.
THEY ISSUE A LETTER
Ask What About Kansas Anti
Trust Laws.
VIII They Be Enforced Against
the Standard
FHEY ISSUE A LETTER


The Independent producers of oil are
going to find out in advance of the
election how the candidates for attor-
ney general stand on the question of
enforcing the antitrust statute against
the Standard Oil company. The fol-
lowing letter has been prepared and
signed by the members of the commit
tee on legislation of the Kansas oil
Producers association to be mailed to
David Overmyer and Fred S. Jackson,
candidates for attorney general Of
Kansas;
"Chanute, Kan, oct. II.
Dear Sir: This committee repre-
senting the producers of crude oil in
the state of Kansas respectfully show:
THAT there are at this time more
than $500 oil wells producing crude
petroleum in Kansas That the cost
of each well equipped and ready for
service is approximately $1,000. That
the Held tanks, storage tanks, pumping
plants pipe lines. and other necessary
machinery and supplies for the carry
ing on of the business Will run more
than $6,000,000 making the field
equipment in this state more than
merely the cash outlay necessary to
operate the wells and to keep them in
operation. That there has been paid
for leases on which the wells and ma
600, making the grand total invested
in actual cash, in the production of
crude petroleum in this state, more
than $12,0O0,000.
THAT the development of the Kan
sas oil fields is purely the result of in
dividual effort and the capital expend-
ed was Individual capital. That thOus-
ands of men came to Kansas and en-
gagged in the production of crude Pc
Iroleum relying on the promise OF
square deal That the present condi-
ton of the industry is distressful. That
present market prices are barely equal
to the cost Of operation in many places
and in other places are not equal to
the cost Of operation. That the price
Of the product has been reduced from
$1.38 per barrel to SO cents per barrel
in two years. That the quality of the
oil has not decreased, that its COM
mercial value has not decreased, that
it's refining value has not decreased.
That this distressful condition is purely
the result Of the strangle hold which
the Standard Oil company, foreign
corporation. has on the crude oil mar
ket. That the Standard Oil company
does control the crude oil market
q absolutely and fixes prices to suit itself
with malignant disregard for the
rights of the producers OF. crude pc
troleurn in this state That this un-
natural domination of the market has
forced hundreds of producers into
bankruptcy and others are now on the
brink of ruin
THE effect of the reduction in price
shown in figures Is this: The average
daily production of crude petroleum is
5000 barrels. At S1.3S per barrel the
daily revenue to Kansas producers was
$50 700 At SO cents per barrel the daily
revenue paid Kansas producers is So
$50 This logs of $14.S50 per day amounts
in the course Of one year to $500 $50.
In the 20 months that this policy of
confiscation and rapacity has been 60
ing on the total loss to the producers
of Kansas is 81, 202, $50. AS the farmers
Of the state who have leased their lands
for development purposes receive one
eighth of the amount paid for oil they
also lose One-eighth of the total which
will be $500. PSI. q These farmers are
all located in the counties Of Allen, Mi
ami Neosho. Montgomery, Wilson,
This loss has not been due to panic, to
overproduction, to any natural cause.
It is the result of the formed design of
the Standard Oil company operating IN
the Kansas oil fields under the name
of the Prairie Oil & Gas company to so
reduce the price Of crude petroleum in
this state as to make the further opera
ton of the properties impossible, with
the inevitable result that they VIII be
thrown on the market at sacrifice
and then gobbled up by the agents and
stool-pigeons of the Standard OIL COM
pany.
sas crude petroleum IS unreasonable
unjust and unwarranted is shown by
a comparison of the situation here and
elsewhere. Kansas oil for refining pur-