Omaha daily bee., 1907-05-23
OIL RATE TO OMAHA TOO HIGH
Ohio Independent Dealers Given Hearing in
Washington.
UNABLE TO COMPETE WITH KANSAS FIELD
Rate from Cleveland 70 Missouri
River il 30 1-2 Cents, while Rate
from Kansas to Omaha IL
Is Cents.

WASHINGTON, May 22-Freight rates
on petroleum and its products from Ohio
and Pennsylvania to St Paul Omaha, Sioux
City and Sioux Falls constituted the sub
ject Of hearing today before the Interstate
Commerce commission.
The complaint does not hinge upon pref
erential rates given to the standard OIL
company, for 1t is admitted that the rates
are uniform. The complaint is that the
! tariffs In force are excessive and unreason-
able.
/ Frank E. Fretter secretary OF the Ma
/ tional Refining company OF Cleveland, the
principal witness for the complainant. the
I National Petroleum association. complained
OF the rate from Ohio points to Omaha,
which he said was the sum OF the local
rates through Chicago. or 4OlA cents per 100
pounds.
! Witness explained that the western field
( was controlled by the Standard OIL com
pany from its Kansas territory. In going
with our products into this territory monop-
I Olized by the Standard said Mr.. Fretter,
| the excessive rate which we are charged
will show you how we are held up by the
railroads"
! Discuss CIeveInnd-Omnha Rate.
On cross-examination Attorney Dawes Of
the Burlington line, asked Mr.. Fretter how
| he was injured by the Cleveland-Omaha
rate OF 4OIS cents He said that the Stand
ard people had rate Of l3 cents a hundred
/ pounds from the Kansas field into Omaha
I and they could not compete with that.
Hasn't the geographical position Of the
Standard in Kansas something to do with
its lower rate?' asked Mr.. Dawes.
g
| is excessively high and we are seeking
fair rate in order to be better able to COM
pete with the Standard"
Mr.. Fretter explained further that the
eastern oil was OF a higher grade than that
produced in the Kansas field and that he
received a higher price for 1t in competi-
ton with the Kansas oil.
How much higher?'
1 Three or four cents a gallon"
l According TO calculations made by wit
ness and counsel. a difference Of cents
gallon would make a difference in price
OF about 64 cents hundred pounds.
Then you get back your freight rate In
this Increased price at which you sell your
productg'' suggested Attorney Dawes.
We've got TO get It back, OF bust re-
sponded Mr.. Fretter
Mr. Fretter thought a fair rate from
per hundred pounds
''In other words you want to ship OIL
from Cleveland to Omaha IN competition
with the producers in the Kansas fieldsT'
said Dawes.
Yes, that Is IT," replied the witness.
Mr. Dawes indicated that such an adjust
ment Of rates would not be possible.
Railroads Defend Rates.
George H Crosby. freight trafic man
ager of the Burlington railroad was called
by the defendants to testify as TO the
statement that oil is being shipped by tho
Standard Oh Co. in barrels from Whiting,
4 Ind, to St Paul and Minneapolis points.
He said that as far as he knew no ship
ments OF that kind were being made, al
though some might be made to Duluth.
He declared that the Standard OIL COM
pany never had made any request Of his
road TO change rates on oil.
Frank P. Eyeman, assistant general
freight agent OF the Chicago & North
western road. said that hts line carried
about 1000 barrels OF oil from Chicago
70 St Paul during 1895 and that suhstan=
TALLY all Of II was shipped by the Stan
dard OIL company. He regarded the %
cent rate on oil from Chicago TO st. Paul
and the 27-cent rate from Chicago TO
! Omaha as reasonable, as II was the reg
ular fifth class rate He asserted that
according to his information, no barge
; shipments OF oil went into the St. Paul
territory.
ON crOss-examination Mr. Eyemsn said
that the Standard OIL company never had
asked for a reduction OF the rate from
) Chicago TO St. Paul.
; The hearing will be continued tomorrow.
Report on Hartman Inquiry.
It is not the intention OF the Interstate
Commerce commission 70 await the result
of the proceedings to compel E. H. Harri-
man 10 answer certain inquiries that were
put 70 him in the New York investigation
before taking action on the general SUBJ
ject OF the investigation.
In the opinion OF members OF the COM
2 mission II may be a year or more before
3 a final decision can be reached regarding
the refusal OF Mr. Hartman 70 answer
{ questions. The proceedings will be in
stituted IN New York the latter part OF
I this month or the hrst OF next month. Il
is expected that II the court upholds the
= commission. Mr. Hartman will carry the
! case 20 higher courts. Should the lower
courts decision be adverse 10 the COM
' mission, pit is probable that 1t will carry
: the matter up inasmuch as a right OF the