Omaha daily bee., 1906-03-15
AFTER THE RAILWAYS
Mr.. Oookrell Outlines Plans for Oil and
Goal Investigation,
OWNERSHIP OF LINES TO Be AScERTAlNtD
Presidents Of Transportation and Fuel Com
panios to Be Summoned,
WILL CALL FOR STOCK RECORDS
Relation Of Common Carriers to Producers
to Be Asosrtained.
WILL CALL FOR STOCK RECORDS
HEARING At KANSAS CITY At AN ENT
Indications that Commission Will
order n Lower Rate on Fuel OH
from Kansas and Indian
Territory.

KANSAS CITY. Mo- March 1.-THE In
terstate Commerce commission today COM
pleted It's Investigations here into the
methods Of the Standard OIL company and
the railroads in dealing with the inde
pendent oil producers of Kansas The COM
mission adjourned TO meet again at a time
and place to be designated by it, II will
probably resume the investigation in
Washington and may summon before It
the presidents of the different railroads
and coal companies. These men may be
ordered to show their companies records
and to show the stock and bond ownership
Of all affiliated coal companies and manu-
featuring interests and the methods by
which the transportation departments OF
different railroads prevent other coal COM
panies from operating in Kansas.
Many who heard the testimony and
watched the investigation here concluded
that the commission would probably grant
q lower freight rate upon fuel oil. In the
hearing Mr.. Prouty Of the commission
asked great many questions Of railroad
trafic men about what would be the prin-
cipal effect of lower freight rate upon
fuel OIL
Ex-senator CoclSren OF the commission
said tonight:
This Is Just a start. We will go to
Washington and investigate the oil and
oil business. We must get a great deal Of
information from the railroads The ques-
tion OF ownership Of the railroads must be
settled; the trouble will come when we
undertake TO learn the ownership Of all
these concerns. We must try to give every
fair chance"
Pipe Line Along Railroad.
Half dozen witnesses were still to be
its hearing today.
J. r. KoontE. general freight agent Of
the Atchison, Topeka & Santa Fe railway,
the first witness, was asked by Mr..
Marchand, attorney for the commission:
Are the pipe lines OF the Standard oil
company upon the right-Of-way of the
Santa Fe railway
Yes sir: they are for "a distance east
of Sugar creek CSansas City, to a point
somewhere ip Illinois, where they branch
on. West of sugar creek the pipe iine IS
Upon the right-of-way OF the southern Kan
sas division OF the Santa Fe for con-
siderable distance"
How did the Standard oil company set
this right-of-way?"
Il do not know. That is a matter with
which do not come in contact"
Mr. hoontz was questioned about The
meeting Of traf1c managers of different
railroads in st. Louis in June. 1901, at
which the oil rate east from Kansas points
was raised from 10 cents to Il cents hun
dred pounds. lie said that he was at the
meeting He did not know who called il.
NO Records OF Meeting.
II was notified by Mr. German our
freight tranio manager" coutnued Mr..
koonts, TO represent the Santa Fe at
that meeting"
''Did he give you any inslruetlons?'
None at ALL
Mr.. Koontz said that MI Bogardus,
trsfie manager of the Standard OH COM
pany, was az the peeting
who invited Mr. Bogardus?" was asked
II do not KNOW
''wss any record kept OF the proceedings
Of that meeting?"
"No. sir"
Mr.. KoOntz, cross-examined by Thomas
r. Morrow. attorney for the Santa Fe
railway. was asked;
Are the oil freight rates established by
the Kansas Legislature COMPENSATORY"
II do not so consider them"
How do the railroads look upon them %
AS arbitrarily established without the
railroads having been given chance TO
be heard. II an efrort the port
Of the legislature to meet the scale IN force
IN Texas with this difference that while
the Kansas rate Is the same as the Texas
rate upon crude and fuel oil. II IS much
lower than the Texas rate upon all pro-
ducts Of petroleum. such as kerosene and
gasoline"
PuSyie Sentiment Enective.
why has there been no assault by the
railroads upon the Kansas rate?" Mr..
Koontz was asked.
Largely in Difference TO public senti-
nent" replied the witness. "The onieals
Of the Santa Fe and I think OF other
Kansas roads, think that the Kansas rates
would have been contested long before
this, but in view OF the agitation and in
famed condition OF the public mind the
policy OF the railroads has been to submit
quietly 10 the unreasonable rates forced
upon them by the legislature OF Kansas -
There has. has there not" asked Mr.
Morrow. been a great deal of agitation.
both In the press, at political meetings,
and in one way and anotherg'
Yes, and because OF this the railroads
decided 20 submit for the present"
MIR. KOontE said that the raising OF the
rate az the ST. Louis meeting was made
necessary by trade conditions and the ae.
tion was not taken TO harrass anyone OF
az the behest OF any one interest or an
other. 10 bensfit one interest to the detri-
msnt Of any other.
Dnect of Raise In Rates.
Marcus A. Low. general solicitor OF the
Rock Island railway asked Mr.. KoOntz
Was Il TO the advantage OF the sian.
dsrd OIL company that you raised the
rates as you did in the ST. Louis meeting p
mo. ii was to their disadvantags They
had 10 pay higher rate upon crude oil
from Neodesha 10 ST. Louis"
Ar. Prouty OF the commission interrupted
and said
But that was the very thing OF which
Ar. Webster. an independent rehner OF
Kansas complained. He said the inoreas,
IN freight 70 81, Louis caused him 20 lose
large contracts for fuel oil IN ST Loui,
because he could not send by rail at thai
rate IN competition win the STANDARD