Deseret evening news. [volume] (Great Salt Lake City [Utah]) 1867-1920, 1906-03-12
KANSAS OIL RATE
HEARING BEGUN.
The Charge is That Railroads
Discriminate in Favor of
Standard Oil.
EIGHT ROADS INTERESTED.
Agitation for Investigation Begun by
Agent Of Kansas Oil Pro-
duccrs Assn.

Kansas city, March l2,-Acting upon
resolutions passed by both houses OF
Congress, the three members of ths
interstate commerce commission began
an investigation today into the charges
made by independent producers Of
discriminate in favor Of the Standard
Oil company in the matter Of oil rates
outside that state. The railroads ia
volved are the Santa Fe, the Missouri
Pacific, the Missouri. Kansas 4 Texas.
the st. Louis and San Francisco. the
Rock Island, the Union Pacific, the
Kansas city Southern and the Burling-
ton. The members OF the interstate
commerce commission who will make
the Investigation are Francis NJ, Cock
r;u Judson g. Clements and Charles
A. Prouty. John T. Marsh, who has
been In the southwest for the past two
weeks, making preliminary IN
vestigation of the producers charges,
was present today as the attorney for
the committee. Frank S. Monet.
former attorney-gene OF Ohio, and
Clifford Thorne, OF Washington, Iowa,
were present as counsel for the indie
pendent producers, The railways in
the state had representatives at the
Investigation and there were several
interested spectators. Among the lat
ter was g. D.. Chamberlain OF Cleye
land, Ohio, secretary OF the National
ll.Y. al tel. Ia,
dependent refiners OF Ohio and Penn
eylvania. He said he was here to watch
the proceedings In the interests Of his
association.
The agitation for the investigation
begun today was started some time ago
when Clifford Thorne, acting upon be-
half OF the Kansas Oil Producers as
ISOLATION. filed with James r. Garfield,
commissioner Of corporations at Wash
ington, a statement in which instances
OF alleged discrimination against the
independents In the matter OF rates
we're made. This statement said In
part:
Your petitioners firmly believe that
no class OF shippers in the United
States today are more directly affected
by interstate rates than the indepen-
dent oil men by reason OF the fact
great railroad systems and owns lines
forming a net work over the American
nation, rendering them practically In
dependent Of the freight rates they es-
tablsh for their rivals 10 pay, BY
means Of a remarkable manipulation Of
interstate freight rates the Standard
Oil company IL endeavoring to crush all
competition from the Kansas oil fields
10 points outside Of the state Of Kan
Has. Today you can ship the same
quantity OF oil 100 miles In Kansas for
the same price that you can ship II Ave
miles n those Ave miles happened to be
over the state line.
while members Of the Producers
association and officials will be chief
witnesses, the interstate commission
has invited "all persons, firms, COM
panles or associations having any in
terest In the proceedings" to appear to
produce and cross examine witnesses
II is expected that the hearing will
last through wednesday.
A. r. Robertson OF Cherryvale. Kan.
was a witness examined Mr.. Robert
son. who formerly was newspaper
correspondent, is now a member OF the
Kansas on producers association,
which makes the charges OF discrimina-
ton.
MI. RODeEtBOns testimony brought
out an interesting story of the Kansas
Oil field Mr.. Robertson said that he
was member of the Uncle Sam OIL
company, which rs AFFILIATED with the
producers association, known as the
independents. MIR. Robertson said that
oil was discovered In Kansas IN paving
quantities in 1898, The production then
was 200 barrels a day The Standard
and It's affiliated companies, the wit
ness said, produce only 1000 or 1900
barrels day. Practically all the oil
In the field II produced by the indie
pendent companies The first pipe line
was laid IN Kansas In 1895 from Thay-
err TO Neosha In 1904 pipe line was
built from Neosha 10 Caney, near the
Indian Territory line, and Il was
gradually extended down into different
'noInts In Oklahoma. The Standard
has had refinery AZ Neodesha, Kan.
for 10 years, and Il has pipe line
from Neodesha 10 Sugar Creek Kan
sas city.
Five years ago Mr. Robertson said
the rate on crude oil and refined oil
from Cherryvale, Kan. to Kansas City
was 10 cents per 100. TO Omaha the rate
was is cents. This 10 cent rate was In
effect until 1904, when 1t was changed
10 II cents to Kansas city and % cents
TO Omaha The weight Of n gallon OF
oil was estimated by the railroads
prior to 1904 at six and four-tenths
pounds. IN 1904 change was made.
and the weight was estimated az seven
and four-tenths pounds for both crude
and refined oil These rates applied to