The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1906-03-12
PROBING BEGINS.
Interstate Commerce Commits
sion Opens the Investigation
OF Observation-Disclosures Kan
sas Oil Producers.
RAILROADS INVOLVED.
Include All Important Lines in
the State.
MOnnett and ThOrne Appear for
the Independents.

upon resolutions passed by both houses
of congress, three members of the in
terstate commerce commission began
an investigation here today into
charges made by Independent pro
ducers of Kansas that the railroads Of
Kansas discriminate in favor OF the
Standard OIL company in the matter Of
oil rates outside that state. The rail-
roads involved are the Santa Fe, the
Missouri Pacific, the Missouri, Kansas
& Texas, the St. Louis & San Francisco,
the Rock Island, the Union Pacific, the
Kansas City Southern and the Burling-
ton
The members Of the interstate com
merce commission who will make the
investigation are Francis NJ. Cockrell,
Judson c. Clements and Charles A.
Prouty, who has been in the southwest
for the past two weeks making a pre-
/ liminary investigation of the producers
charges was present today as the at
1 torney for the commission. Frank S.
/ Monnett, former attorney general Of
/ Ohio, and Clifford Thorne of Washing
ton, Iowa, were present as counsel for
the independent producers. The rail-
ways interested had representatives at
the investigation and there were sew
eraI interested spectators. Among the
I
land, Ohio Bee retary of the National
Petroleum assd citation, comprising IN
i dependent reflners of Pennsylvania
and Ohio. He said he was here to
watch the proceedings in the interests
/ OF his association.
The agitation for the investigation be-
! gan today was started some time ago
when Clifford Thorne acting upon be-
4 half of the Kansas Oil Producers associ-
+ alton. filed with James r. Garfield, COM
missioner of corporations at Washing
1 ton, a statement in which instances Of
/ alleged discrimination against the in
dependents in the matter Of rates were
made. This statement said in part;
Thomas Statement.
Your petitioners firmly believe that
no class of shippers in the United States
today are more directly affected by in
I terstate rates than the independent oil
men, by reason of the fact that their
competitor controls many great railroad
systems and owns pipe lines forming
network over the American nation, rem
dering them practically Independent of
the freight rates they establish for their
rivals to pay.
''By means of a remarkable manipu-
latiOn Of interstate freight rates the
Standard Oil company is endeayoring to
crush all competition from the Kansas
oil fields to points outside Of the state
of Kansas. Today you can ship the
same quantity of oil 100 miles in Kansas
for the same price that you can ship
;
be over the state line"
While members OF the producers as
sociation and railroad officials will be
the chief witnesses, the interstate COM
merce commission has invited ''all per-
sons, firms, companies or associations
/ having any interest in the proceedings
to appear to produce and ss-examirle
witnesses. 1t Is expected that the near
ing will last through Wednesday.
A. L. Robertson of Chanute, Kan,
was the first witness examined Mr..
Robertson, who formerly was a news
paper correspondent, is now member
Of the Kansas Oil Producers aSsocia-
ton which makes the charges of dis
elimination. To the Associated Press,
! Mr.. Marchand stated that Mr.. Robert
son probably would be the most i'm
portant witness produced by the inde-
/ pendent oil interests and that the gov
ernment would base its investigation
mainly upon his testimony
Robertson Testif1es.
Mr.. Robertson's testimony brought
out an interesting history of the Kan
sas oil field. Mr.. Robertson said that
he was a member of the Uncle Sam
OIL company. which is affiliated with
the producers association. He said
that the Standard Oil company, the
Prairie Oil and Gas company and the
Republic Oil companies we're not
members of the Kansas Oil Producers
association, known as the independ-
ents. Mr. Robertson said that oil was
discovered in Kansas in paying quanti-
ties in 1893. The production then was
200 barrels day. The standard and
its affiliated companies. the witness
said, produce only 1000 or ] 800 bar
rels a day Practically all the oil in
the field is produced by the independ-
ent companies. The first pipe line was
laid in Kansas in 1895, from Thayer to
Neodesha. In 1904 a pipe line was
built from Neodesha to Canev, near
the Indian territory line and It was
gradually extended down into different
points in Oklahoma. The Standard
has had q refinery at Neodesha. Kan, /
for 10 years and it has a pipe line
from Neodesha to Sugar Creek CKan-
sas City,. Five years ago. Mr.. Robert
son said the rate on crude oil and re-
fined oil from Cherryvale, Kan, to
Kansas City was 10 cents per 100 {
pounds. To Omaha the rate was Is
cents. This 10 cent rate was in effect 4
till 1904 when it was changed to II :
cents to Kansas City, and p cents to /
Omaha The weight Of a gallon of oil (
was estimated by the railroads prior (
to 1904 at six and four-tenths pounds I
In 1904, a change was made and the (
weight was estimated at seven and 4
four-tentlls pounds for both crude and
refined oil. These rates applied to /
Kansas City. Mo, and to all points in /
Missouri, Nebraska, Colorado and /
Oklahoma.
Robertson testified that while the rate
on oil from Cherryvale to Atchison and /
Leavenworth. near the Missouri state /
line was ten cents. It was II cents to
Missouri points. Prior to this advance 1
to II cents. which he said was made in !
1904 the Kansas Independents had q |
market outside of the state, bct sirSe \
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, lumber, and so on. I