The Salt Lake herald. [volume] (Salt Lake City [Utah]) 1870-1909, 1906-03-13
that would be prohibitive to the indie
pendent producer
Gould Not Compete.

SOAiA wv SSiiFNNC'
with a rate of 81 cents from Neo-
desha to Kansas City can you compete
with a pipe line that operates for
cents2"
Certainly not"
Suppose the railroads had a rate of
5 cents to Kansas City, Mo, could you
compete with a 2-ceht pipe line?"
Yes, sir; because we handle our
own product"
What effect did the passage of the
Kansas rate law have upon the con-
sumner in Kansas
Before that law went into effect the
price of refined kerosene was 10 cents a
gallon. When the law went into effect
the Standard Oil company reduced the
price to cents"
Mr.. Robertson, will you tell the
commission how intimately kerosene
and gasoline enters into the life of the
kansan?"
In many parts of Kansas there is
no other fuel
Mr.. Robertson. Cross-examined by w.
R Smith, attorney for the Santa Fe
railway. denied any knowledge of the
government having issued a fraud or
der against the Uncle Sam Oil COM
pany. He admitted that charges had
been preferred against his company,
principally that it was over capitalized
and that the assets were not sufficient
Freight Agents Testimony.
w A Leland. assistant general
freight agent of the Missouri. Kansas
& Texas railway, was the second wit
ness called. He told in reply to ques-
lions of a meeting at st. Louis in June,
1904. of the traffic managers of the
Missouri Pacific. the Santa Fe. the
Frisco and his road. to consider rails
ing the oil rate from Kansas. He said
that Mr.. BOgardus, traffic manager of
the Standard Oil company. was pres
ent but he did not recall that any Of
the independent oil refineTs Of Kansas
had been asked to attend the meeting.
After the meeting he was Informed
that the rate was to be changed from
10 cents TO II cents from Kansas points
to Kansas City, Mo.
Didn't you know that the change
was contemplated before that meet
ing?" Mr.. Leland was asked
Yes, we had discussed tt
81 hold a letter signed by you and
addessed to J. A. Boland of Kansas
CITY, written May %. 1904" said Mr..
March and he showed it Mr.. Leland.
The letter. which Mr.. Leland admitted
baying written, advised Mr.. Boland
that the rate upon crude oil from
southeastern Kansas to Kansas City
Leavenworth. Atchison and ST. Joseph
would be raised to II cents.
when did the 17-cent rate go into
effect?"
Aug 10, 1904
When the Rate Went Up.
About that time the Standard oil
company completed a pipe line from
the Kansas oil field to its refinery at
Sugar Greek in Missouri, did it not?''
Yes"
And coincident with that the rate
went up"
ct had been agreed upon"
Did Mr.. Bogardus object to the
the raise in rate?"
YES, he severely objected TO 1t. He
wanted lower rate"
The effect of the 17-cent rate would
be to guide oil into Bogardus' pipe line.
wouldn't it?"
4 don't think SO"
with a 17-ce1t rate and a 2-cent
pump line rate. don't you think the oil
would all go by the pump line?"
Not necessarily so, since the rate
went. into effect the shipment of oil
over the railroads has been increased -
Mr.. Leland admitted that under the
Kansas rate law the rate for oil from
Chanute kan. to Kansas City, Kan,
was 81 cents. in less than carload lots.
But to Kansas City, Mo, Il was 31ik
cents, and the distance further was
only seven miles by his road, which
made a detour to get into Kansas City,
Mo. He said his. road hauled a tank
car seventy-fiYe miles ia Kansas under
the Kansas rate law for $685.. and
CHARGED $50 for the same service in
Missouri