Omaha daily bee., 1906-03-13
l, F, Robertson Rsoites Instances Of
Discrimination Against Producers.
aEIeHT AGENT GIVES SIMILAR TESTIMONY
Rates Raised as Soon as Standard Pipe Line
Was Finished.
PROMINENT OIL MEN ARE PRESENT
Legal Representative of Parties lyVho
May He Affected by Evidencs
Ready to Take Part
Tn Case. oA

KANSAS CITY, March i2-1n the Inter
state Commerce commission hearing here
today Into the charges Of the Kansas OIL
Producers association, that Kansas rail-
ways discriminate in favor of the Standard
OIL company in the matter Of giving rates
on oil, A. r. Roberton of Cherryvale, Kan.
a member of the Uncle Sam oil company.
and F. A. Leland. assistant general freight
agent Of the Missouri Kansas & Texas
railway, gave important testimony.
Acting upon resolutions passed by both
houses Of congress, three members Of the
| Interstate Commerce commission began an
investigation here today into charges made
by Independent producers Of Kansas that
the railways Of Kansas discriminate In
favor of the Standard oil company in the
matter of oil rates outside that state. The
railroads involved are the Santa Fe, the
Missouri Pacific the Missouri Kansas a
Texas. the st. Louis & San Francisco. the
Rock Island, the Union Pacific the Kansas
City Southern and the Burlington.
The members OF the Interstate Commercs
commission who will make the investiga-
tion are Francis NJ. Cockrell. Judson q.
Clements and Charles A. Prouty. John c.
Marchand. who has been in the southwest
for the last two weeks making a prelim-
mary investigation of the producers
charges. was present today as the attor-
ney for the commission. Frank s. Monett,
former attorney general OF Ohio and
Clifford Thorne OF Washington, Ia, were
present as counsel for the Independent
producers
Railway Counsel Present.
, The railways interested had representa-
tives at the investigation and there were
several interested spectators Among the
latter c. d. Chamberlain of Cleveland,
O., secretary OF the National Petroleum
association. comprising independent re-
} fners OF Pennsylvania and Ohio. He said
he was here to watch the proceedings in
, the interests of his association.
The agitation for the investigation begun
today started some time ago, when
, Clifford Thorne, acting upon behalf of the
, Kansas Oil Producers association. fled
: with James r. Garfield, Commissioner OF
corpora tiOns at Washington, g statement in
, which instances of alleged discrimination
. against the independents IN the matter OF
D rates were made. This statement said in
part
Your petitioners firmly believe that no
class of shippers in the United States to-
day more directly affected by inter-
sIate rates than the independent oil men,
: by reason of the fact that their competAs
tor controls many great railroad systems
: and owns pipe lines forming a network over
the American nation, rendering them prac-
tically independent of the freight rates
they establish for their rivals to pay.
by means OF a remaFkaDia manipulation
Of Interstate freight rates the Standard
h Oil company is endeavoring to crush all
a competition from the Kansas oil fields to
points outside of the state of Kansas. To-
i day you can ship the same quantity of oil
y 100 miles in Kansas for the same price
, that you can ship IL tive miles IL those five
miles happened to be over the state line.
j. While members Of the Producers assoca-
: tion and railway officials will be the chief
witnesses, the Interstate Commerce COM
: mission has invited 'all persons, Arms.
:, companies or associations having any in
. terest in the proceedings TO appear to pro-
duce and cross-examine witnesses" 1t is
: expected that the hearing will last through
. Wednesday.
Robertson stand.
It A. f. Robertson of Cherryvale, KAN was
a the first witness examined. Mr.. Robertson,
D. who formerly was a newspaper correspond
/: ent is now a member OF the Kansas OH
J. Producers association, which makes the
q charges of discrimination.
- To the Associated Press Mr. Marchand
ct 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 investiga-
sion mainly upon his testimony.
Mr.. Robertsons testimony brought out
d an interesting history OF the Kansas oil
field. Mr.. Robertson said that he was a
member Of the Uncle Sam Oil company,
which is affiliated with the producers as
sociation. He said that the Standard on
'e company, the Prairie oil and Gas company
ID ands the Republic OIL company were not
al members of tic Kansas Oil Producers as
RS soeiation. known as the Independents Mr.
10 Robertson said that oil was discovered In
n Kansas in paying quantities In 1898. The
N production then was 200 barrels a day
r Now the production was from 1900 70 5000
Y. barrels day. The Standard and its ami
T. fated companies, the witness said. produce
J., only 1000 or 1900 barrels day
u Independence Large Output.
- Practically all the oil in the aeld is pro-
y duced by the independent companies. The
" first pipe line was laid in Kansas in 1866
Vi from Thayer TO Neodesha. In 1904 a pipe
u line was built from Neodesha to Caney.
S' near the Indian Territory line. and II was
gradually extended down into different
points In Oklahoma. The STANDARD has had
z a refinery at Neodesha, Kan. for tea years.
and IL has a pipe line from Neodesha 70
N Sugar Greek Q5ansas City. Five years
ago Mr.. Robertson said. the rate on crude
oil and refined oil from Cherryvale Kan
to Kansas City was 10 cents 100 pounds
,s To Omaha the rate was IS cents. This,l
q, cent rate was In effect until 1904 when &c
was changed to II cents to Kansas City
= and q cents 70 Omaha. The weight OF a
~, gallon OF oil was estimated by the railway
80 prior 20 1904 at Ga pounds. In 1904 a change
- was made and the weight vas estimated at
- IA pounds for both crude and refined oil.
= These rates applied to Kansas City, Mo.
-. and to all point in Missouri, Nebraska.
- Colorado and Oklahoma.
Robertson testified that while the rate
on oil from Cherryvale to Aochison and
LeavenwOrth. near the Missouri state line.
ne was 10 cents. it was u cents to Missouri
ed points Prior to this advance 10 IT cents,
he which. he said was made IN 1904, the Kan
an sas independents had market outside os
Il the state but since then they had no
Ter market. Robertson said that when IN iso'
le- the railroads raised the ate OF OIL outside