The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-03-15
BREAKERS AHEAD
FOR COMMISSION
CockreII Says They VIII Probe
to the Bottom
RAILROAD MEN TESTIFY
Claim the Kansas Rates Are Arbitrary
and Were Made Without Giving
Railroads Chance to Be
Heard.
RAILROAD MEN TESTIFY

Kansas city, Mo, March 1.-THE inter
state commerce commission today COM
pleted its investigations here into the
methods of the Standard OIL company
and the railroads in dealing with the in
dependent oil producers of Kansas. The
commission adjourned to meet again at
a time and place to be designated by it.
1t will probably resume the investigation
In Washington, and may summon before
1t there the presidents of different rail-
roads 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 manufacturing interests and the
methods by which the transportation de
partments of different railroads prevent
other coal companies from operating in
Kansas
Ex-senator Cockrel of the commission
said tonight
This is just start. We will go to
Washington and investigate the oil and
coal business. We must get a great deal
of information from the railroads The
question of ownership of the railroads
must be settled The trouble will come
when we undertake to learn the owner
ship of all these concerns. We must try
to give everyone a fair chance
Santa Fe Freight Agent.
J. r. Koontz, general freight agent Of
a nd 10
way. the first witness, was asked by
Mr. Marchand, attorney for the company:
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 (Kansas City to point
somewhere in illinois, West of Sugar
Creek the pipe line is upon the right-of-
way of the Southern Kansas division
How did the Standard Oil company
get this right-ofway?"
Il do not know"
Mr. Koontz vas questioned about the
meeting of traffic managers of different
railroads in st. Louis in June, 1904, at
which the oil rate east from Kansas
points was raised from 10 to Il cents a
hundred pounds. He said he was at the
meeting, but did not know who called It.
Mr.. Koontz said that Mr.. Bogardus
traffic manager of the Standard Oil com
pany, was at the meeting. No record of
the proceedings of the meeting was kept
according to the witness.
Mr.. Koontz, eross-examined by Thomas
r. Morrow, attorney FOR the Santa Fe
railroad, was asked.
Are the freight rates established by the
Kansas Legislature COMPENSATORY
Il do not so consider them
How do the railroads look upon
them?"
Rates Arbitrarily Established.
''As arbitrarily established without the
railroads having been given chance to
be heard It was an effort ON the part of
the Legislature to meet the scale in force
in Texas with the difference that while
the Kansas rate Is the same as the Texas
rate upon crude and fuel oil 1t Is much
lower than the Texas rate upon all prod
ucts of petroleum, such as gasoline and
kerosine.'
why has there been no assault by
the railroads on the Kansas rate? Mr..
Kontz was asked.
Largely In Difference to public senti-
ment," replied the witness. THE officials
of the Santa Fe, and | think of other
Kansas roads think that the Kansas rate
would have been tested long before this.
but in view of the agitation and inilamed
condition of the public mind. the policy of
the railroads has been to submit quietly
to the unreasonable rates forced on them
by the legislature of Kansas"
H. - TIT ..r Ia.
iate at the ST Louis meeting was made
necessary by trade conditions. and the ae-
ton was not taken to harrass any one
or at the behest Of any one interest, or
another. or TO benefit one interest to the
detriment of any other.
Marcus A. Low, general solicitor OF the
Rock Island railway, asked Mr.. Koontz:
"Was 1t to the advantage of the Stand
ard OIL Co. that you raised the rates as
you did in the st. Louis meeting?"
mo. 1t was to their disadvantage.
They had to pay higher rate upon crude
oil from Neodosha to st. Louis
Mr.. Prouty of the commission interrupt
ed and said
"But that was the very thing of which
Mr. Webster, an Independent refner of
Kansas. complained"
In answer to q question If the Standard
Oil company had asked him TO advance
the rate, he answere In the affirmative.
In the course of his examination, Mr.
Prouty asked Of Mr. Koontz:
"Why should more be charged for NOV
ing oil than coal?' and the witness an
swered that the oil tanks go back empty
while the coal cars go back loaded with
sand.
Mr.. Koontz said that the risk involved
in hauling fuel oil was an important fac
tor, but he was unable to state what
the risk amounted to. He promised to
produce the figures later
Mr.. Monnett attorney for the oil Pro-
ducers association Of Kansas. stated that
the rate on coal In Kansas was so per
cent less than the crude oil rate.
Emporla Producer Testifies.
c. A. Stannard, an oil producer of
Emporia. Kas., testified that no Kansas
oil could be sold out Of that state by
Independent producers because the rate
beyond Kansas prohibited II, but If the
Kansas maximum freight rate was ex-
tended into other states. there would
be a good market for all the oil Kansas
could produce.
G. w. Mayer, manager of the Standard
Oil company at Kansas City, was re-
called. and denied positively that he had
sent e. NJ Willhoyt formerly agent for
the Standard at Topeka. and now an in
dependent oil reiner at Joplin, and Spring.
field, Mo. check with which to bribe
railroad employees in order to secure in
formation regarding the shipments of oil
by Independent companies.
H. b. Scott, until recently a director
of the Prairie OIL and Gas company. a
branch of the Standard company. but