Los Angeles herald., 1906-03-13
RAILROADS MUST
SHOW OIL RATES
KANSAS PRODUCERS AFTER
STANDARD OIL
Interstate Commerce Hearing Develops
Interesting Condition of Freight
Charges In SunfoWer State.
Few Witnesses Heard
By Associated Press.

| KANSAS CITY, Mo-, March 12.-In
the interstate commerce hearing today
into the charges of the Kansas Oil
Producers association that Kansas
railways discriminate in favor of the
standard Oil company in the matter
oil giving rates on oil, A. F. Robertson
OF Cherryvale, Kan, a member of the
Uncle Sam Oil company, and A. f.
Leland, assistant general freight agent
of the Missouri, Kansas & Texas rail-
way, gave important testimony
The railroads involved are the Santa
F'e, the Missouri Pacific, the Missouri,
Kansas & Texas, the ST. Louis & San
Francisco, the Rock Island, the Union
Pacific, the Kansas City Southern and
the Burlington.
Mr.. Robertson's testimony brought
out an interesting story of the Kansas
oil field. Mr.. Robertson said he was
member of the Uncle Sam Oil COM
pany, which is affiliated with the Pro-
ducers association. He said that the
Standard Oil company, the Prairie Oil
and Gas company and the Republic
Oil company were not members of the
Kansas Oil Producers association,
known as the independents. The STAN
dard and its affiliated companies, the
witness said, produce only 1000 or 1900
barrels day. Practically all the field
is produced by the independent COM
panies. In 1904 pipe line was built
from Neodesha to Caney, near the
Indian Territory line, and it was
gradually extended down into differ
ent points in Oklahoma. The Standard
has had a refinery at Neodesha, Kan,
for ten years, and it has q pipe line
from Neodesha to Sugar Creek (Kan-
sas City,.
Five years ago, the witness 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 10 cents. This 10-cent rate was
in effect until 1904, when it was
changed to II cents to Kansas City
and % cents to Omaha. The weight
of gallon of oil was estimated by the
railroads prior to 1904 at 4-10 pounds.
In 1904 a change was made and the
weight was estimated at 4-10 pounds
for both crude and refined oil. These
rates applied to Kansas City, Mo-. ana
to all points in Missouri, Nebraska,
Colorado and Oklahoma.
Mr.. Robertson testified that while
the rate on oil from Cherryvale to
Atchison and Leavenworth, near the
Missouri state line, was 10 cents, 1t |
was II cents to Missouri points. Prior !
to this advance to II cents, which he |
said was made in 1904, the Kansas in |
dependents had market outside of |
the state but since then they had no |
market. Robertson said that when in |
1904 the railroads raised the rate on |
oil outside of Kansas they made no |
raise in the rate for transporting other
commodities such as COAL wheat and |
lumber.
Rates Are Juggled
Mr.. Robertson testified that the rail-
road rate from Caney, Kan, to Bartles
VILE, 1. T., a distance of siXty-one
miles, prior to the building of the pipe
line by the Standard Oil company, was
IL cents, and it was reduced to 5 cents
per 100 pounds while the pipe line was
being constructed. After it's compile
ton the railroad rate was put up to
10 cents and it stands there today.
What effect did the 10 cents rate
have upon the Independent producer"
Mr.. Robertson was asked.
at makes the rate from the well to
the refinery cents a barrel more than
the top price paid for crude oil in
Kansas or the territory. The top price
paid for oil is 50 cents a BARREL while
the freight upon barrel would be 81
cents"
f. A. Leland, assistant freight agent
OF the Missouri, Kansas &S Texas rail-
road, was the second witness called.
He told in reply to questions of meet
ing at st. Louis in June, 1904, of the
traffic managers of the Missouri Pa
cifc, Santa Fe, the Frisco and his own
roads to consider raising the oil rate
from Kansas. He said that Mr.. Bo-
gardus, traffic manager of the Standard
Oil company, was present, but he did
not recall that any of the independent
oil refiners of Kansas had been asked
to attend the meeting. After the meet
ing he was informed that rate was to
be changed from 10 cents to II cents
from Kansas points to Kansas City
Mo.
Didn't you know that the change
was contemplated before that meet
ing?" Mr.. Leland was asked.
"Yes, we had discussed it."
II hold a letter signed by you and
to j. A. Boland of Kansas
City, written May 2S. 1904" said Mr..
Marsh, and he showed it to Mr.. Leland.
The letter. which Mr.. Leland admitted
having written, advised Mr.. Boland that {
the rate upon crude oil from south /;
eastern Kansas to Kansas City, {
Atchison and st. Joseph !
would be raised to II cents.
when did the 17-cent rate go into
effect?" {
August Is. 1904" replied Mr.. Leland.
about that time the Standard Oil
completed pipe line from the
Kansas oil field to its refinery at Sugar
Creek. in Missouri, did it not?" !
"Yes."
"And coincident with that the rate
went up?"
Mr.. Leland admitted that under the
Kansas rate for oil from Chanute, {
Kas., to Kansas City, Kas., was 91a '
cents in less than car lots. But to {
Kansas City, Mo-, it was 314 cents and
he distance further was only seven
niles by his road, which made detour
% get into Kansas City, Mo. He said X
lis road hauled tank car seventy-five t
niles in Kansas, under the Kansas a
ate law, for $2,93, and charged $3.50
or the same service in Missouri. d
Killed by Jumping From Car