Albuquerque morning journal. [volume] (Albuquerque, N.M.) 1903-1926, 1906-02-05
WHAT KANSAS
HAS DONE To
OIL TRUST
Congressman Campbell Tells
Story Of The Battle.
HOW INDUSTRY GREW AND
WAS CORNERED BY OCTOPUS
And How the DespiSed Producer Put
a Crimp in the Tails Of the
Animals at 29 Broadway.
HOW INDUSTRY GREW AND
WAS C0RNERED BY OCTOPUS
Correspondence Morning Journal.

Correspondence Morning Journal.
Washington. Feb. Congressman
Philip p Campbell talks very interest
ing of the discovery of oil in Kansas,
its development, the various stages
through which the industry in his
prospects. He says the people are get
ting the benefit of the fight which the
last Kansas legislature made on the
Standard Oil company. "They are not
only getting better prices" he de-
elares, but they are getting better
OIL" In reviewing the situation in
Kansas. Mr. Campbell says;
The year after the civil war crude
petroleum was discovered in Kansas.
There was no effort made to develop
the field at that time. The first at
tempt in this direction occurred in
1892 In that year. more than 100000
acres of land in Allen. Neosho, Wilson,
Labette and Montgomery counties
were leased by the firm of Guffey &
Galley for the purpose of boring for
oil. Wells were drilled in all of these
counties without developing the pres
ence of oil in paying quantities, except
at Thayer, Neosho county, and at Ne
odesha in Wilson county
"Guffey e. Galley sold their leases to
the Forest Oil company of Pennsyl-
vania, and between '93 and 81 most
of the leases were permitted to lapse,
not because there was no hope of de-
veloping oil upon the leases, but be-
cause of the general depression in
business and financial circles. The
leases that had been kept up were
sold by the Forest Oil company. to-
gether with the leases that had been
developed, to the Kansas Oil COM
pany. and that company sold to the
Prairie Oil and Gas company, one OF
the subsidiary companies of the Stan
dard Oil company, which is holding il
as their oil interests in Kansas now
"The development which attracted
the attention of the oil men through
out the country were made by J. n
Knappat Chanute, Neosho county
Kan. Mr.. Knapp drilled more than
fifty wells on what was known as the
'Hetrlck farm, near Chanute, and ev.
cry we'll was a producer. This was
the beginning of active operations il
developing the oil fields OF Kansas
and Indian Territory.
about this time the president ot
the Prairie oil and Gas company de.
clared that Kansas oil was almost
equal to the Pennsylvania oil for re.
fining purposes. and that the Prairie
Oil and Gas company, as soon as the
production should reach 500 barrel!
per day in any one field. would builC
a pipe line for the purpose of carini
for the production, and as rapidly az
the production increased, would tak'
care Of 1t. Throughout the whole flelt
every encouragement was given to tn,
people to develop their oil properties
They were told that the oil fields o
Ohio and Pennsylvania and West Vir
gInia were falling off, and that the de
mand for the products of crude petro
leum We're increasing throughout TIL,
world. and that Kansas would un
doubtedly be called upon to furnisl
large share of the worlds supply o
refined oil and its by-products.
"Of course, many companies wert
organized with a large capitalization
and small amount paid in. 1t Is onl,
fair, however, to say that this prac
tice was not adopted wholly by tn
people of Kansas, but largely by ol,
oil men from the eastern fields Man
of these companies failed and brough
disappointment to those who had plac
ed their money in them.
During the time of this rapid de
velopment. the price of crude petro
leum steadily advanced from so cent
per barrel I'm 1900 to $136 per barre
in 1903. The encouragement to Dor
more wells and to extend the oil fiel
was substantial AS the production 0
oil increased, the price of oil increas
ed. There was no word OF warnin
from the Prairie oil and Gas com
pany, or from any of its officers. tina
such rapid development would resul
in over-production.
During the year of 1903, the devel
epment of the field continued. and tn
price of oil went up until It reache
S1.36 per barrel for North Neodoshi
the same price that was being pal
for North Lima, In Ohio. On Januar
/. 1904. the heaviest oil produced |
the Kansas field brought so cents pc
barrel--10 cents more than the bes
crude oil brings now in Kansas.
became apparent in 1904 that the. o
field in Kansas and the Indian Tel
ritory had been developed.
Standard Enters the Arena.
ut was now the Standard oil me
nopolys time to make one of its old
time moves in the oil business. Th
production in Kansas and Indian Tel
rltory was such as to justify a lare
refinery at Kansas City, Mo. Such
refinery and pipe line would COZ
4 about st2,000.OOO. Why not make I'll
producers pay for laying the pipe lin
and constructing the refinery? It VIZ
30 ordered. and the price Of crude
was rapidly reduced until It droppe
OH In the state, and H. Z. West,