The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1906-03-13
Pipe Line Rate z Cents, Rail-
road Rate L Gents
BUT PIPE is MONOPOuzEO
Independents Produce 10000 Barrels
Daily and Standard 1900, But the
Independents Cannot Sell
oil oustde of State.

Kansas City. Mo. March 12-ln the in
terstate commerce hearing here today INTO
the charges of the Kansas oil Producers
association that Kansas railways diserim-
mate in favor of the Standard Oil COM
pany in the matter of giving rates on OIL
f. Robertson of Cherryvale. Kansas,
member Of the Uncle Sam Oil company
| e. A. Leland, assistant general freight
agent of the Missouri Kansas and Texas
railway. gave important testimony
A. F.. Robertson was the first witness
examined. Mr. Robertson who was Tor
merly newspaper correspondent Is now
member of the Kansas oil Producers
association which makes the charges OF
discrimination. To the Associated Press
Mr. Marchand stated that Mr.. Robertson
probably would be the most important
witness produced by the independent oil
interests and that the government would
! base it's investigation mainly upon his
testimony.
Gives History of the Industry.
/ Mr. Robertson's testimony brought out
an interesting history of the Kansas oil
/ field. Mr. Robertson said he was mem-
! ber of the Uncle Sam Oil company, which
! is affiliated with the producers asso-
/ citation He said the Standard OIL COM
many the Prairie Coil and Gas company
/ and the Republic OIL company were not
members of the Kansas OH Producers
| association known as the independents.
Mr.. Robertson said that oil was dis
| covered in Kansas in paying quantities
/ in 1893 The production then WAS 2eQ bar
rels a day. Now the production was from
Il 400 10 20OOo barrels day The Standard
and its affiliated companies. the wit
ness said. produced only 1000 or 1900 barrels
a day
Practically all the oil in the field IS
nroduced by the independent companies
rbe first pipe line laid in Kansas was 1885,
from rhaver to Neodosha. The Standard
| has had refinery at Neodosha, kas,
fourteen years, and it has a pipe line from
Neodosha to Sugar Creek, Kansas CITY
Five years ago Mr.. Robertson said the
rate on crude oil and refined oil from
! cherryvale, Kas., to Kansas City was
! 10 rents per 100 pounds. To Omaha the
rate was Is cents This 10 cent rate was
in effect until 1904. when it was changed to
Il cents to Kansas City and % cents to
Omaha.
Change Made in Weight.
Tho weight of a gallon of oil was esti-
mated by the railways prior 10 1904 at
& % pounds In 1904 change was made
and the weight was estimated at 2 20
mounds for both crude and refined OIL.
These rates applied TO Kansas City NO.
and to all points in Missouri NeprasAa'
! Colorado and Oklahoma.
"What was the rate from cherryvale
to Atchison and Leavenworth at the time
il was II cents to Missouri points? was
asked of Mr.. Robertson.
ut was 10 cents
| ..When in 1904 the railroads raised the
rate for transporting oil from ki-nsas
points to points outside that state, ala
they also raise the rate for transporting
other commodities, such as coal, wheat
lumber and so on?''
| mo, sir. The advance In rates appned
| only to oil. an
"Did YOU sell oil to the Standard on
| company prior to the completion of their
| pipe line to Sugar Creek?
! 'Yes, sir"
"Did YOU sell them afterwards
mo, SIR"
"Why?"
"The standard Oil company hoycotted
| all the Kansas field February TO- l9oo'
| and tore out all pipe line connections
| with Independent producers and issued Or
ders to purchase no oil from independent
producers, so we had no market
prior to the advance to Il cents, haa
| you a market outside the state TOT po1n
| crude and refined oil?'
1--WE had, but since then we have had
no market"
oil from Chanute to Weber kas.Y
| "Ten and one-half cents. Ihat IS
! distance of 254 miles. Weber IS seven
| miles from Superior. Neb. But the rate
| from Chanute to Superior is 80 cents, so
| thai the difference OF seven miles In dis
! tance makes a difference of 1879 cents in
the rate" ~
nave upon the independent -refineries In
| Kansas
Enabled Them to Do Business.
''Wlthout that law II would be impos-
sible for them to do business AS re-
! sult of that law, six Independent ref1neries
are i'm operation and three are building.
"What is the cost Of shipping crude oil
through pipe line? -,
Two cents a hundred pounds for 100
miles"
with rate of II cents from Neodosha
/ to Kansas City. can you compete with
/ pipe line that operates for cents?'
Certainly not"
suppose the railroad had rate OF
| Z cents to Kansas City. could you COM
pete with a cents pipe line?
Yes. sir: because we handle our own
| product"
! ..What effect did the passage OF the
Kansas rate law have upon the consumer
| In Kansas"
Before that law went into effect the
| price Of refined kerosene was 13 cents
| gallon When the law went into effect
| the Standard reduced the price to 3
| cents"
| Mr. Robertson. cross-examined by w.
| r.. Smith, attorney for the Santa Fe. de-
| MED any knowledge OF the government
| having Issued a fraud order against the
| Uncle Sam oil company. He added that
| charges had been preferred against his
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1 ,ntinued on Second Pase(