The Topeka state journal., 1906-03-13
RAILROAD NEWS.
Kansas Oil Men Air Grievances
to Commerce Commission.
Demand Reduction in Rates
Outside the State.
ARE MANY WITNESSES.
Claim Of COIIusion Between Rail-
ways and Standard Oil.
Gossip and Matters of Interest
in Railroad Circles.
RE MANY WITNESSES.

Kansas City, March 13--ln the inter-
state commerce hearing here yesterday
into the charges of the Kansas Oil Pro
ducers' association that Kansas rail-
ways Disseminated in favor of the
Standard Oil company in the matter Of
giving rates on oil, A. F. Robertson of
Cherryvale, kan, a member of the Uncle
Sam Oil company and F. A. Leland, as
sistant general freight agent of the NJ.
K. & T. railroad, gave important testi-
mony.
Mr.. Robertson, who is also a. member
of the Oil Producers association, was
the first witness called.
rs the Standard oil company a mem
Der of your association asked Mr..
Monett, attorney for the Kansas oil
men.
1T is not"
rs the Prairie Oil and Gas company
or the Republic Oil company mem
ber?"
Neither of these COMPANIES belongs
to our association.
Mr. Robertson gave in detail the his
tory of the discovery Of oil IN Kansas
and the development Of the INDUSTRY 10
the present time. He said that the stan
dard Oil company produced less than
I 500 barrels of oil per day. The resi-
of the production of from l5OOO to zV'OOO
barrels is by the independent oil men.
The witness testified that until the
standard built its pipe line from Neo-
desha to Sugar Creek the rate on Oh
was 10 cents to Kansas City, ana 10
Omaha Is cents. After the pipe me
was built. the Kansas City rate was
raised. in 1904, to II cents ana od1 ene Olll1
haL RAJ te to p cents. Prior to l9O4 sal-
/ Ion of oil weighed 81 pounds, put IN
come 1,naccountable manrer all natural
laws we're overthrown and the weight
/ suddenly jumped to "A pounds per gaI-
ssVvha+ was the rate from Cherryvale
| to A+chison and Leavenworth at the
/ time it was II cents 10 N1lSsouIi
points ?" was asked OF Mr.. Robertson
ut was 10 cents. ..5
/ the rate for transporting oil from ran
sas points to points outside tnat suale'
! diS thew also raise the rate for trans
porting other commodities such 81, as
coal wheat, lumber and so on
ssNo. sir. The advance in rates ap-
piled only to oil .o-,ia,
reason why the rate on oil shoulu
a. mo, sir. I have never been able 70
oissPfSA .s9S6 YOU SlS sell offto The standard oA
/ company prior to the eonptsU.oh u
their pipe line to Sugar creek
..Did i'd you s5il sell them afterwards"
mo, sir"
f'Why?" 1900.
.'The Standard Oil company ooyc96-
tod ali the Kansas field February IT,
1q05 and tore out all pipe hhe con-
1,ections with Independent producers
and issued orders to purchase no OH
IRON, independent producers, so we mad
no "Prior Pic n to the advance to II cents,
had vou a market outside the stare TOT
both crude and refined oil
eve had. but since then we nave
| had no market 80.
ssvVhat is the present railroad rate
on oil from Chanute to Weber Ran;
saTen and half cents. That is dis
lance of 254 miles. Weber Is near lWhe W
| NTebra ska line It is seven miles from
/ +l,o--a 70 e,1nerior. Neb. But the rate
/ from Chanute to Superior is 80 Genus
so that the difference Of seven miles IN
| distance makes a dlHerehce Oh - p
cents in the rate 49,
distance is 191 miles said Mr.. Robert-
! son "and the railroad rate on OH -
| co734e AIva. Okla is 8 miles further
/ b1,+ the rate from Chanute to Ava Is
o. oo,,fs q 7ifference Of 26 cents. From
! Chan,1te to Coolidge. KAN the ols-
tance is ass miles and the rallIoAu e
| rate on oil is 5 cents. SIX IllIes ~ -
Their is the town Of Holy, Coi0. lS ne
/ rafa to Holly is so cents, a dlHerence
of S5 cents in the rate TOT an euueu
distance Of 6 miles
"TTron Cherryvale. to Galena, kas-'
Is ss miles and the railroad rate on
oil IS y cents SIX Iniles - 80
Toniin MO, and the rate from Cnerfy-
S-eie to joplin is IS cents. From
Cherryvale, Kas.. to Springfield NO.
| the rate Is ; cents 80 49,
Mr.. Robertson testified tI1al 1ile ne
railroad rate from Caney. kas' 10
| 1Sa+Ies1,illa T. a distance of 1
miles. prior to the building OF the pipe
line bv the Standard oil company was
- cents and it was. reduced to cents
a hundred pounds while the pipe 1he
was constructing. After It's com PIE
zion +be railroad rate was put up TO
10 cents and it stands there today.
srVhat effect did the 19-cent rate
have 1DoD the independent producer
.'T+ makes the rate from the weH to
tba reTnery < cents a barrel more than
The ton price paid for crude oil in
TEansas or the Territory. The top
D,ice Maid for oil is 50 cents barrel
While the freight upon barrel would
what effect did the Kansas rate
law have upon the independent re-
fineries in Kansas
seyvithout that law it would be i'm
nossible for them to do business. AS
a result of that law six independent
reAneries are in operation and three
are building There were only Two IN
oneration before the rate went into
effect"
What is the cost OF SnlpphS Ctuue
oil through a pipe line ?"
Two cents hundred pounds for
100 miles. Oil can be sent from Neo-
deeha to the standard Oil company 5
refinery at Sugar creek for two cents
2 hundred miles ana any railroad
rate in excess of that would be pro-
hihitive to the indenendent producer. "
with a rate of ] : cents from Neo-
desha. to Kansas City, NO. can you
/ compete with n pine line that oper-
ateS for two cents
Certainly not"
Suppose the railways had a rate
of five cents to Kansas City. Mo.
could you compete with a two cent
pine line2"
yes. sir: because we handle our
own nroduct' -