Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-03-13
RATE DISCRIMINATION
Hearing of Oil Case Resumed
at Kansas City.
COMMISSIONS NEXT MOVE
Will Go to Davenport, Iowa, to Probe
Charges.
TWO MEMBERS TO RETURN HEEE
The Testimony Today Brought Out
Important Letters Relating to
Freight Charges.
TWO MEMBERS TO RETURN HEEE

KANSAS CITY, Mo, March 13.-The in
terstate commerce commission resumed its
hearing here today in the investigation of
charges of discrimination in railway rates
on oil. filed by the Kansas Oil Producers
Association.
When the commission concludes the hear
ing here Judson C. Clements will go to
Davenport. Iowa, to investigate other
charges OF alleged illegal ratemaking.
Francis NJ. Cockren and Charles A. Prouty,
the other commissioners, will return to
Washington.
The testimony of E. T. Mccarthy of the
Mission Mining Company of Quapaw, In
dian Territory, brought forth two letters
on oil rates, one from the Standard Oil
ComIany's office at 26 Broadway, New
York and the other from the st. Louis and
San Francisco railroads general offices. Nc
Carthy said that his mine was built over
the Kansas line. six miles from Baxter
Springs. Kan. He told of his effort to use
oil from the Kansas field instead of coal at
his mines. He had. he said, November
q last, written r. K. Voorhees,. general
freight agent of the st. Louis and San
Francisco railway, requesting rate oil
from the Kansas field to Quapaw. In a let
ter written in reply by Mr.. Voorhees, and
written was introduced, the latter quoted
rate of II cents a hundred pounds on crude
oil and fuel oil from Neodosha. Kan, to
Baxter Springs, and of "a cents to Quapaw.
Letter in Evidence.
About the same time, witness said, he
had written a similar letter to the Standard
Oil Company. and he received a reply from
c. W. Ouston. manager of the fuel depart
ment of the Standard. Mr.. Customs letter,
which was presented as evidence read as
follows:
Replying to your favor of the 18th in
slant, while the rate of freight from Neo-
Ia Tor - ,T,, asIy
cents per 100 pounds, It is "A cents per 100
to Quapaw Station, 1. T., which would
make the price of oil delivered there 81
cents q gallon, at which figure we do not
think you could use economically as against
the low-priced coal you could probably pur-
chase. Of course, the amount of oil re-
qulred to equal a ton of coal would depend
on the quantity of coal used, but with an
ordinary grade of run of mine coal il would
take about three barrels of OIL forty-two
gallons to the barrel, to equal q ton of coal.
we fear you will find the price We name
too high to enable you to use oil to advan-
tage, as against the cheap coal that you
can probably purchase.
These letters We're introduced in an at
tempt to prove that while the railway COM
pany charged all others II cents for trans
porting oil from Neodosha TO Baxter
Springs, it charged the Standard Oil Com
pany only 61a cents for the same haul. The
corresp ondence also was introduced 10 prove
that while the Standard secured rate of
61a cents for transporting oil from Neo-
dosha to Baxter Springs. distance approx
imately of ffty-siX miles, the railroads
charged in effect 171A cents for haul OF
six miles further beyond the Kansas line.
Independent Dealer Testified.
f. L. Willhoyt, formerly an agent at
Topeka, Kan, for the Standard Oil Com
pany. but now an independent dealer, with
Offices at Joplin and Springfield, Mo, testi-
fed today.
He said: The Standard Oil Company,
when l was with it. was charged Ga car
load by the terminal company in ST. Louis
for transporting a ear from East st. Louis
H. to ST. Louis. Mo. To save this S5. the
Standard laid a pipe line under the river
and every car of oil bound westward would
be pumped out in East ST. Louis and
pumped into another car In ST. Louis This
$5 a car saved was that much off the abl-
ty of the independent dealer TO live in
competition with the Standard"
Continuing, Mr.. Willhoyt said: Since
have been in business for myself / have
had much trouble In getting my tank cars
transshipped at ST. Louis This generally
happens when | short of oil. Once /
had a tank Of oil drift off from East
st. Louis to Alabama. A the time l was
out of oil. and | lost customers on account
fit. The Standard company, my COM
petitor IN Springfield, had plenty of oil and
got the customers / lost"
Mr. Wfllhoyt said that while agent for
the Standard at Topeka he was instructed
to watch all shipments Of oil to that point,
and 10 ascertain the naane of the shipper
and the point of distribution.