Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1915-01-31
OIL MARKET QUOTATIONS

part of the Hepburn act which made
common carriers was unc1nstitu.
tional, and granted permanent in
junction restraining the commission
from compelling pipe lines to file
tariffs
The United States appealed this
case TO the supreme court, which
tribunal on June %, 1914, held the
law 10 he constitutional, and all the
pipe lines except the Uncle Sam com
pany, to be subject 10 the jurisdiction
OF the commission.
Consequently, the Prairie filed its
first schedule Of rates, rules and regu-
lations, etc, with the commission on
or about the 18th OF August, 1914.
The Rates Charged.
The rates provide for a charge of
~ cents per barrel for gathering the
oil from the lease into the Prairie's
tank and Its pumping stations The
charge for transporting this oil from
the pumping station to the Atlantic
| seaboard is 70 cents a barrel
1t is claimed by the Independent
producers that these rates are eXces-
sive.
The Texas company's lowest charge
! for gathering the oil from leases Is
|12lA cents per barrel, up TO 20 cents
/ Its transportation rate TO Port Ar
thur is 37ia cents barrel An ad-
! diuonal two and one-half cents a bar
rel is charged for pumping this oil
| into vessels or tanks at Port Arthur.
| The Gulf Pipe Line company
charges two and one-half cents more
/ than the Texas. its transportation
charges being 40 cents-the other
charges the same as the Texas.
Producers claim that these rates
T al al
on June 13, 1914, in a hearing before
| the senate committee, +. G. Proctor,
general counsel for the Gulf Pipe
Line pany said:
"I viii have to he perfectly frank
with you, even though an attorney
I for the other side is present and |
will tell you why that rate is made
so high II is done to keep the
refinery. In which Mr. Folger and Mr..
Archhold are Interested, from using
IT,"
/ At the same hearing Amos l..
Beatty, general counsel for the Texas
Company admitted the authority OF
/ the commission 80 change the rates,
Irules and regulations IN the following
| Language:
There is no question that the in
I tcrstate commerce commission has
| the power. II these rates are too
/ high, 10 put them down. The reason,
as We understand IT, that they have
not lowered these rates or have not
gone into the question: believe they
will lower them-is because OF the
doubt as 10 whether they could make
the Standard lines common carriers "
Rules are Objectionable.
Put producers complain more Bit
terly Of the pipe line rules and regu-
huons than they do Of the excessive
rates. These regulations render it
practically impossible for q producer
90 ship oil through these common
carrier pipe lines, regardless OF the
charges
one Of the Prairic's regulations is.
that 10 will not accept less than
100000 barrels Of crude oil for n
single shipment. This oil must be
above gruund-in sight The shipper
must have 10000 barrels OF tankago
az the destination Of the shipment
He must also ship his oil subject To
ITS being mixed with any other oil in
possession OF the pipe line-even
tank bottoms
Furthermore, the regulations OF the
various pipe lines either fix no time
within which they shall commence or
complete such shipment OF OIL or
strung over three or four months.
There is nothing I'm the regulations
20 prevent certain favored shipper
from monopolizlng pipe line for a
month at time.
I'm short 1t is n practical impos-
sihillty for producers TO use the
pipe lines under these regulations.
Prairie Within Rights.
Il is admitted that the Prairie is
strictly within lis legal rights-and
is performing Il duty imposed upon
u Boy the federal LAWN devoting It's
Gushing line 10 the transportation OF
common carrier OIL II is also ad-
mittcd that 10 cannot hc compelled TO
purchase oil I'm the Gushing field.
When the Prairie Pipe Line COM
pany takes over the Prairie on & Gas
Co.'S system of pipe lines. neither
branch of the concern will be under
amy obligations even under the Yea
Ecr-Straiu law. To buy oil anywhcrci
The law applies only TO the pipe line
companies engaged In purchasing oil:
the Prairie oil 4 Gas Co. will have
mo- pipe line.
Hence the law will apply to nei-
ther'
As matters now stand. certain OF
the Gushing leases are having all their
oil run, while no oil is being sold
from adjoining leases II Is entirely
possible TO extend this condition to
other fields.
The World has gone into this mat
ter In the length as set out above to
show the true condition as it exists
today and To show what may happen
In the future
There will be many operators hurt.
and hurt badly. In the Cushing field
before the congestion is relieved.
more particularly the owners OF river
bed leases. and the smaller producers
who cannot afford to build tankage
and dare not shut In wells. and who
also are unable TO protect their leases
by offsetting
Those who have large quantities
OF oil In tankage now can sell their
oil, get Il run by a common carrier,
As LEASES.