The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-03-15

The Independent oil men claim that
they have showed conclusively that
there is collision between the Stand
ara OIL company and the railroads. They
say this has been brought out by show
ing that the Standard is by far the best
customer of the railroads; that where
1t has no pipe line it has been given
low rates and where it has secured an
immense advantage Of the independents
by building pipe lines, this advantage
has been multiplied by the raising Of the
rates; that the field Of the Independents
has been circumscribed and kept within
the state of Kansas by prohibitive rates
beyond the state, whereas the Standard
by various means is enabled to COM
pete.
No evidence was produced at the hear
ing to show that the Standard was Civ
en- rebates. Upon this point the indie
pendents had declared they We're count
ing to show that high rates for all
were for the benefit Of the Standard.
On the other hand, the explanation Of
the railroads as to why the rates be-
yOnd the state were so high was that
when the Kansas maximum rates went
into effect, the original rates were or
course not reduced beyond the state If
the reduction of the Kansas rate still
left the Independents crippled the indie
pendents ask. What show did they
ever have under the original rates?"
Commissioner COckreH said, discuss
ing the hearir 2 just closed;
1T was but the beginning. We had to
make a start some time and somewhere.
We viii get at all the facts in due time.
We can't tell how long 1t VIII take or
where it will end We cannot, even II 1t
would be proper for US to do SO, say
what would be a just remedy for the
evils complained of. We must take in
the whole situation and not local con-
dition We cannot wipe out one indus
try simply because greater number
Of people would be benefited by the cor
responding and resultant development
Of another industry.
Interests necessarily conflict We
have the task Of removing as many m
eduaIities as possible keeping in mind
the rights Of all. &. The anthracite coal
field is in one section Of the country
The soft coal industry Is in another
All the interests involved rasnify and
extend into quarters Of Which we 90 not
know now. The hearing must develop
the ownership of the various ROADS.
That Is where the trouble viii come
If the railroads will not give the infor-
nation we desire, we must get II IN
some way But the railroads are not
the only sinners=not by any means.
The shippers are to blame as well. we
shall try to do equal and exact justice
between everybody concerned
ut would not be proper to comment
on the evidence produced al the hear
ing said Commissioner Prouty prior
"a his deDart11re "I tried to keep in
mind during the hearing the attltude OF
both or all parties in interest. asked
many times as to the benenI tnat W W.. OU tlll
accrue to the independent oil men II the
Standard was given an equal rate we
were fold that a high rate enabled the
roads to give the Standard rebates, but
there was no rebate evidence introduced,
''I remarked during the hearing tnat
the Standard Is able to fix absolutely
the price of oil except as this so-calL5u
monopoly Is affected by the demand TOT
f,,e1 oil tried to keep this phase OF
the question In mind. for ] beileYe II Is
an important one. The STANDARD Gun
A. abos1t as it pleases IN fixing. prices
and controlling the msrket- In sense
tba producer and the rehner is at the
mercy of the Standard, if there IS NOT
market for fuel oil. so long as the stan
dard buys large quantities OF the pro
ducers' oil and has sUch q great auNall-
tage OF the redner-
nra ctfcaf features of the situation IS
7 fhe relation between coal ana Tuel OIL
The only market that can see can be
kent omen by equitable freight rates
Is the market for fuel oil
Viewed broadly the independents
claim that they are caught coming
land going" The railroads are largely
Interested in coal lands in some I'M
portant Instances OIL and coal ccm-
T,afe as fuel. The roads would natur-
s1lv favor coal and as a matter of fact
coal rates are on the whole only aoou'
half the oil rates
But If the Standard Oil company
dominates the roads wherever II ships
oil It must be favored Where It has
Dipe lines while the independents
have to ship, oil rates go ~ the IN
deDendents. generally speaking. would
he satisfied with an interstate rate ap-
proxfyuating the Kansas maximum
freight rate on a mileage basis and
thew claim that if coal and oil rates
were eouaIized. they would have a
market for their crude oil for fuel To
oether with the fair field for refined oil
which would. be assured by EQUITABLE
freight rates corresponding to the
maximum Kansas rate. they say they
would be very near the oil millennium
one Of the interesting points
4 brought out Yesterday was the state
rent of G. d. Chamberlain of Cleve-
4 land O., a manufacturer Of lubricatine
oil He said that he bad offered 70
sell the railroad lubrieating oil for SO
rer cent Of the price the roads pay the
staudard. but none OF them dared buy
+ fndependeut oil The 5000 miles OF
~n~d IN the United States consume
s9R 0na 400 worth Of this oil ner yea r
Trhe STANDARD tbus has. according t.
1 Mr.. Cha nah erfafn'a figures. an anuua'
GRAFT Of $40 nn0 nm on fhiz 3tera alone
At the uaornins session Il wes
brought out that e costs but - 70 2n
cents TO refine fo~ty-two RafIons OF
l-ereaa~e. which sells to consumers ~
( 2 to 1 z cents per Gallon. This oil costs
I tho e~@ce~ ehort cents.
G. y. MOfatt, superintendent Of the