The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1907-02-06
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time how these rates were based, when
Senator Porter, in answer to this in
quiry of the senator from Nebraska,
explained that through friends among
railway officials, 1T was possible to Sc
cure facts In regard to the rates on
similar shipments made by the Stand
ard Oil company, and the maximum
rates made legal in Kansas were fixed
at approximately the same figures,
which Senator Porter explained were
higher than the Standard paid when it
was taken into consideration that that
company enjoyed rebates. 1t is thought
however that since the Hepburn bill
has been passed there will be an equal
ity on this score, and that the Standard
will not be able to secure rebates.
Our maximum rate law fixing the
rates on oils cannot be successfully as
sailed in court" said Senator Porter
THE railroad companies know that
they hauled oil for the Standard Oil
company for years at a lower rate than
that fixed by law in Kansas, and they
have shown no willingness to attempt
to show that the rates were not COM
pensatory."
Mr.. Chamberlain briefly the
tactics of the Standard Oil company
for the benefit of those present who
were not familiar with them, and eX-
planned how the antidiscrimination law
in Kansas worked an injustice to no
one. but opened up the avenues of COM
petition so that it could be conducted
along legitimate lines; so that the
Standard Oil company could not by its
superior financial strength and in
fiuence and connections, reduce the
prices of oils in certain localities to the
extent of exhausting the resources of
the dealer in that locality to the point
of his commercial ruin, while the prices
were advanced in other localities where
there was no competition, beyond a
reasonable figure. 49,
Burden on Railroads.
Speaking further on the maximum
rate law, Mr.. Chamberlain said:
The legislature should throw upon
the railroad the burden of proving that
rate is not compensatory. This is the
move that the railroads do not want.
But for the protection of the people, it
is the law that should be made. The
single small shipper can never hope to
gain a point when he goes into court
to contest the reasona bleness of a rate,
because he cannot afford to hire a high
priced attorney who could successfully
cope with the skilled attorneys of the
railroad, who bring into the evidence
testimony of a technical nature that Is
really understood by few but them
selves. When the railroad has to take
the initiative, it becomes another mat
ter.
Il know of one case in Pennsylvania
where suit was brought against the
Pennsylvania railroad 10 years ago
The case was repeatedly won by the
plaintiffs in all the lower courts to
which it was carried by the railroad
company and it is still in the supreme
court of the United States, and not
settled yet. But the Standard Oil COM
pany still goes on, and the Independent
company that brought the suit is out
of business"
Mr.. Chamberlain explained the meth
DDS of the Standard in influencing rail-
road rates, and in putting their con-
petitors to disadvantage through in
spection laws that made 1t possible to
collect big fees for inspection of small
quantities of oil, while the Standard
had large quantities inspected at small
cost.
Mr.. Chamberlain explained how the
beneficial laws of the last legislature
were instrumental in building up the
oil refining business in Kansas, so that
where but one refinery existed prior to
that time, there were now 16 independ-
ent refneries representing upwards of
s5Co, 600 in existence and all in healthy,
prosperous condition.
Figures were presented showing that |
the standard of quality of oil sold in
Kansas had risen during the period
and that the consumers of oil in Kan
ses had been saved upwards of $500, 900
during the past year because of the low
er prices of Oil made possible by the
competition brought about by the KAN |
sas laws.
Kansas City branch of the Standard Oil
was able to get information |
from the railroads of the destination !
Of shipments of oil offered by independ- |
ent concerns, wherein the railroad COM |
panies thereby violated the fiduciary |
trust implied in them.
The statement was made by the rep
of one of the Independent |
refners at Cherryvale, that a tank car |
of oil had been shipped from that point |
on December %, destined to Garden |
City, but that 1t had not yet reached |
its destination, and that he was unable /
to locate the whereabouts of the car.
Governor HopeweIPs Figures
Lieutenant Governor Hopewel. of |
Nebraska, presented some figures of the |
oil business in Nebraska. In the year
1906. rs, 913 barrels of oil were sold in |
that state, divided among five distribut-
ing companies as follows: Standard Oil !
company sold 183. $40 barrels; the Mar |
shall Oil company sold 16775 barrels; |
the National Refining company sold 49, /
$50 barrels; the Iowa Tank Line sold |
IA barrels and the Rartels Oil COM |
pany sold 222 barrels. The Standard |
Oil company has 73 tank stations in the |
state; the Marshall Oil company has
one, and the National Refining COM |
pany has three.
The Kansas independent refineries do |
about 80 per cent of the business in |
Kansas. The price of kerosene is from |
to IL cents per gallon. In Nebraska, |
the price Is around 16 or II cents per |
gallon.
W. D. Todd. of cheJsa. was the only