Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1915-02-07


VILE outward IN any direction I'm this
group is about 100 miles, and the
mean radius rather less than IS miles.
which considering the enormous
volume OF production and the close
relation which all bear 10 the source
Of supply. the cost OF the crude
production and the available markets,
win be seen to constitute a very CONF
pact group when considered rs a
whole
Production Of Field.
'The production OF crude oil in this
field is stated in the report of the De-
partment Of the Interior, H. S. ieolog-
icai Survey. by David T. Day In his
1914 report, as really beginning In
Kansas In 1892 and In oklahoma two
years latcrs hut NOT reaching any
volume of production until 1904 when
tho total production OF crude oil for
the two states was less than 100000
hbls., per aunUn: while COX 1913 fn'
latest correct figures. the production
had Increased 20 practically $4,000, goo
bbls. and for 1914 the amount u est"
mated ~ over l0O.00o,OOO bh.s. per
auuum. or this amount til" ~ .1d'-
pendent TofiTors. practically all ot
whom are complaining IN one form UI
another IA This proceeding. converted
nearly 5000 bbls. of crude oil per
day into products which they ship, ar
practically oAethird Of the prodG''
ton for 1913, and about Onc.scNenth
Of the production east of the Rocky
Mountains.
The relation Of the various fields IN
the United States Is shown in Mr..
Days report above referred 20, in
round numbers. in barrels, as follows
appalachian, 2j,O0O,O0O: Lima-lndi.
Mid.COntinent, S5,000,000: Gulf 81
100000: California. 97.00OOO0: Colo.
TOadO and Wyomingo 100000
''The natural territory in which this
enormous production Is disposed of
aside from the amount. exported and
the amount transported by pipe line, IS
the territory lying between the Mis-
sssippl river on the east including
Illinois and Wisconsin, the Wyoming
field on the west and northward into
Canada, the Appalachian and Illinois
refineries Cor eastern group supply
ing the territory east of the Mississippi
river Except Illinois and Wisconsin,. .
the Gulf Group in Texas and Louisiana
south and southwest, and the Colorado
and California fields mark the western
boundary.
'The principal cities forming market
bases from which this territory is supo
piled and which also form the rate
bases, are st. Louis. No. Chicago ILL.,,
Milwaukee, Wis., Kansas City Moe
Omaha. Neb.o st. Paul, Minn.s and
Winnipeg. Man: ON the north and
east: Denver Colo, and Salt Lake
City, on the west; Little Rock Arll.s
and Memphis, Tenn.o on the south
which, together with the intermediate
and common points taking the same
rates as the basing points in said terrio
tory constitute the points from which
distribution Of these products is made
to the consuming public"
The Diffcrentials.
The brief concludes as follows: 'It
will be noted that there are no rec
ductions in these proposed rates, but
that in every instance where present
differentials are less than cents they
have proposed to advance the differo
ential between Kansas and Oklahoma
points cents above the proposed
Kansas rates, except to st. Louis
where the proposed differential is 2
cents-and this Notwithstanding that
no differential has ever been made
heretofore to st. Louis, and notwith-
standing that Vinita is much nearer
to st, Louis than any of the Kansas
refining points. This proposed change
in rates, from a differential stand
point, entirely violates the rule that
differentials shall decrease as distance
inCreases-and consequently. cannot
be sustained for a moment
There is, very obviously, no effort
on the part Of the carriers to meet the
complaints Of the shippers. nor to es-
tablish uniformity in rates. In every
case, except those marked where the
commission itself has interfered, the
old high basis of adjustment is OBJ
served except where that adjustment
has been increased. This proposed
scale OF rates would render nugatory
the decisions of the commission in all
cases where the rates complained Of
have heretofore been reduced. This
neglects the rule that where tonnage is
increasing on a particular commodity
and density of traffic is increasing
rates should decrease
Discrepancy of 100 Per Cent
Let the earnings per car mile at
the proposed rates be figured out and
compared with the car mile earnings
on other commodities shown I'm tho
Eastern Advance Rate case. and they
will show on an average 100 per cent
greater than on like commodities
shown I'm the commissions figures i'm
the Eastern Advance case. The record
I'm the instant case shows how much
profit TO the carriers and how much
loss to the shippers the furnishing of
tank cars results In, and to increase
the transportation cost to the shippers
by these proposed rates Is entirely un-
fair unjust and inedaquate.
THE only proper scale of rates that
the carriers should propose, or that the
commission can dnd justifiable, es-
pecially In view of their already issued
and effective affirmative orders, would
he founded upon a reasonable rate
from this group OF Mid-Continent re
fineries to st. Louis Mo, and by con
structing rates to points beyond st.
Louis in harmony with the established
scheme OF rate making in this territory
upon all other commodities except oil.
If the rate Of Is cents is found to be
that reasonable basis, then the rates
TO all other points beyond ST. Louis
should be constructed with reference
20 that reasonable rate and the burden
IS upon the carriers to show that any.
thing above that rate would be reason
able. which they have not attempted
TO show: then such eases as the Joliet,
Springfield. Hannibal, Omaha, Cincoln,
Fremont and Sedalia cases have been
properly decided by the commission.
and upon that basis the rate shoulc.
be extended TO all this territory in