Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1911-10-01

now selling to the Cudahy Refining
Company al CofieyWlle KAN on a
nice premium, what that premium
iA hc refused to say
Mr. Henderson felt sure that there
would bee little difficulty IN markets
ing thc Oh through others man the
present pipe line companies, II tho
Interstate Commerce Commission was
~ make reasonable rates ana regu-
latous fer tho pipe liucs lie SAID
ID was a practical proposition, ana
although The demand at the cur TOR
Oh Jum now ls being held back by
the prospective Mexican oil, he felt
sure the oil could ue disposed OF IN
other directions,
Mr. Henderson said that he would
have gone into the marketing bus
mess himself but for the fact that
be- was ffccd to ship by rail ana
could not be- guaranteed any stability
u the ruil rates he said he started
negotiations Tor the Record oil re
uuing Company plant ana at an'
other time contemplated a sNmmlng
/ plant, but was afraid OF the rail rates.
Attorneys OF the pipe line com
paups cndoayorcd 10 impress ON the
witness the hazards of the pipe line
business. The witness allowed there
were hazards In all businesses ana
/ that no pipe lines were built until the
investors were satisfied they would
get their money out Of il, whether
the lines were built by refIner,cs or
/ individuals. Mr. Henderson said that
/ he thought the Interstate Commerce
/ Commission is fully capable of asccr-
/ taininB just what Is Il reasonable pipe
/ line rate, considering whatever haz-
! ards there are attached TO the in
! vestment and all the conditions OF
| the business lie said that he would
! Ike to own line and be permitted TO
/ charge 20 cents "A barrel 10 the Gulf
coast country
Judge Beatty of the Texas Company
endeayored to argue to the witness
! that If the witness s plan of letting
/ the pipe lines charge enough Of a
rate to get Their money back In the
first three years Of their operation,
and then to reduce that rate to a
reasonable return on the Investment
| for future years, were followed, 1t
would operate as IA monopoly Mr..
/ Beatty cited that If such line were
/ put into the present Electra Tex,
/ hcld. and paid back its investment in
three years and then reduced its rates
no other line could come in, as COM
mon carrier against those rates. MIR.
. Henderson said that the original lire
would have TO carry all the oil Of
tored, or "A new line would inevitably
come in, and that if new line came
IN it would mean that the field had
been fully proven ond there was no
longer the extreme doubt or hazard
attaching to the investment, and
hence no necessity for its charging
such rate as to get the money back
in only three years.
A. c. Potter of Tulsa, said he was
producing through the Hin oil Com
pany and had about $50 barrels a day.
lie said that two years ago he had
a chance to sell oil for fuel in Omaha
and Lincoln, Neb., at $1.35 a barrel
when the crude market here was 35
'tllNS UdlItlt bul llbN lut lItiSl III
rates by rail, tank car rental and all,
would not permit them to get any
money out Of It, He said he tried to
get lower rates but was not success
full Mr. Potter complained princi-
pully against the rail rates. As to
pipe lines he felt the common car
rier feature would be good thing
although he expressed some doubt as
to the practical end Of handling many
shipments of different oil in the one
line at the same time. He said he
hadn't gone into this question much.
He felt however that the pipe lines
should be divorced from the produc-
ing end of the business, or that per-
haps some way could Doe arranged for
dividing the use of the line between
pipe line production and operator S
oil.
l.. n. Riese Of Tulsa, producing
under the name of the Quinuple Oil