Evening star. [volume] (Washington, D.C.) 1854-1972, 1906-03-12
RATE DISCRIMIN ALTON
OIL INQUIRY BEGUN AT INSTIGA-
TON or CONGRESS.

KANSAS CITY, Mo, March 12.-Acting
upon resolutions passed by both houses OF
Congress, three members of the interstate
commerce commission began an investiga-
ton here into charges made by independent
producers of Kansas that the railways OF
Kansas discriminate In favor of the Stand
ard oil Company in the matter of oil rates
outside that state. The railroads involved
are the Santa Fe, the Missouri Pacific, the
Missouri. Kansas and Texas, the st. Louis
and San Francisco, the Rock Island, the
Union Pacific. the Kansas City Southern
and the Burlington.
The members of the interstate commerce
commission who will make the investiga-
ton are Francis NJ. Cockrcll Judson &.
Clements and Charles y. Prouty. John L,
MarChand. who has b=e in the southwest
for the last two weeks making d prelim-
mary invest cation of the producers
charges was present today as the attorney
for the commission. Frank 5. Monet,
former attorney general of Ohio. and Cliff
ford Thorne Of Washington, Iowa, were
present as counsel for the independent pro-
duCers Che railroads interested had rep
reSeEtatiVeS at the investigation and there
were several interested spectators. Among
the latter was c. -. Chamber TN of Cieve-
land. Oflfts~ secretary of the NIt.ontl Petro
leun Association, comprising INDEPENDENT
companies of Pennsylvania and Ohio. He
said he was here to watch the proceedings
in the interests of MS association.
Statement of Complaint.
The agitation for the investigation begun
today was started some time ago, when
Clifford Thorne, acting upon behalf of Kan
Gas on Producers Association fled with
James Garfield, commissioner of corpora
lions, at W asnington. u statement in which
instances OF alleged discrimination against
the Independents IL the matter of rates were
made. This statement said in part:
Your petitioners firmly believe that no
class of shippers In the United States to-
day are more directly anected py interstate
rates than the independent oil men, by rea-
son of the fact that the competitor con-
trolls great many railroad systems ana
owns pipe lines forming = network over the
American nation. rendering them practical
ly independent of the freight rates they
establish for their rivals 10 pay.
by means OF a remarkable manipulation
of interstate freight the Standard Oil Com
pany is endeavoring to crush all competi-
ton from tie 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 it five miles If these five miles hap
pened TO be over the state line
While members of the producers associa-
ton and railway officials will be the chlet
witnesses. the interstate commerce commits
panies or associations having any interest
in the proceedings to appear TO produce
and cross-examine witnesses. 1t IS cA-
pected that the hearing will last through
Wednesday.
Mr. Robertsons testimony brought out 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 association.
He said that the Standard Oil Company,
the Prairie Oil and Gas Company and the
Republic Oil Company were not members OF
the Kansas Oil Producers Association.
known as the independents. Mr.. Robert
son said that oil was discovered in Kan
sas in paying quantities in 1873. The pTo-
duCtion then was 200 barrels day. Now
the production from 1900 to 2o.Uo
barrels a day. The Standard and its af-
fliated oil companies, the witness said.
produce only 1000 or 800 barrels a day.
Practically all the oil in the field is pro-
duced by the independent companies '"he
first pipe line laid in Kansas il lSlG
from Thayer to Neodsha. In 1904 pipe
line was built from Neodsha to Caney, near
the Indian Territory line, and IL was grad
ually extended to different points in Okla
homa. The Standard has had refinery
at Neodsha. Kans., for ten years, and It
has a pipe line from Neodsha to Sugar
Creek Ckansas City,
Five years ago, Mr.. Robertson said, the
rate on crude oil and refined oil from
Cherryville, Kans., to Kansas City was 40
cents per 100 pounds. To Omaha, the rate
was Is cents This l0-Cent rate was In eff
feet till 1904, when it was changed 20 II
cents to Kansas City and % cents 10
Omaha The weight of a gallon of oil was
estimated by the railroads prior to 1904 at
8 40 pounds In 1904 change was made
and the weight was estimated at 40
pounds for both crude and refined oil.
These rates applied to Kansas City, Mo,
and to all points in Missouri, Nebraska,
Colorado and Oklahoma.