The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1917-06-23

give YOU these facts to show you how
the world is depending on Kansas ana
Oklahoma for this black gold.
Big Gain in 1915.
I'm 1915 Kansas produced little
over 4 million barrels. In 1916 Sne
produced about IL million barrels.
gain of about million barrels over
1915. This year will show greater
gain.
oklahoma produced in 1915 about
121,99S,915 barrels, in 1915 she pro-
duced 122,671,677, gain of only
$50, $50 barrels. The figures show
you what gain Kansas is making and
why Oklahoma is laying pipe lines to
Kansas. Most of the crude in Kan
sas is owned by Oklahoma people
and Kansas is not getting the benefit
of the wealth it should get.
Nov then as to the pipe lines.
ONLY an oil man can know what the
cost of gathering crude oil Is. Inc
producer only drills the well and the
world has been so short of crude OIL
save the year 1918, that as soon as the
producer brings in a new Held, all
gathering companies, crude scouts,
have a wild race to see who gets to
the producer first, to see who will get
the production Especially if it is
good grade. Therefore, competition
in crude being keen it is customary
for the gathering company to oulld
the lines to the field from their near
puts it in the receiving tanks, where
the gauger takes gauges each day,
and tests the oil. Before going thru
the receiving lines the producer is
given a gauge ticket which can be
cashed at almost any bank in the oil
fields, or if he should elect to hold
the ticket for 80 days and cash in, he
gets the benefit of all advances in
crude on his 80 day ticket, bad
condition that cannot be helped.
Growth of Independents.
1.-THE Standard Oil company pipe
lines ran over IS million barrels in
1915 The Gulf, a subsidiary. ran over
10 million barrels. The Texas, an
other subsidiary, 81 million barrels.
The Magnolia, another subsidiary, I
million, and the Independents ran over
so million barrels. Please note the
Standard Oil company by Is million
barrels. The Standard Oil company
and all it's subsidiaries ran only IA
millions as against almost 81 millions
ran by the Independents. l give TINS
to show the large growth of the Inde-
nendents. These figures also show
that we took over 6 million barrels
out of our storages and the refineries
ran more crude than was produced.
''There are II independent refin-
cries in Kansas and Oklahoma having
an investment of 500, and
there are 8 Standard refinerieS with
an investment of millions. There
are IS Independent refineries in course
of construction. Completed they will
have an investment of 3 u million dol
lars, giving the Independent refineries
in the mid-continent field an invest
ment of $1O3,O99, 720. The II indie
pendent refineries have a daily capac-
ity of IT'S, 900 barrels per day. The
Standard Oil companys capacity is
so 900 barrels per day. The 35 re-
,,I,o dnn OF 10ti inn a
pacity of 43, 500 barrels per day. This
gives a total capacity of Standard Oil
and Independents of 100000 per day,
or a capacity of 102, 200 barrels
per year. Our production last year
was only 122,671,767, so you see we
have almost enough refineries in Kan
sas and Oklahoma to run all the crude
we produce. Yet the Standard Oil
company and it's subsidiaries pumped
away from this field last year and to
100000 barrels of crude, so you can
see the keen competition there is 60
ing to be in buying crude.
Standards Big Pipe Lines.
1.-The Standard Oil company has,
believe, six 8-inch pipe lines to Chi
cago from Tulsa. A pipe line also
to Woodriver Ill. I cannot say how
many pipe lines they have to New
Jersey and other points east pump
ing from Tulsa. The Independent re-
fineries in this field run three times
as much crude as the Standard Oil
company do thru their refineries
Counting the crude the Standard Oil
company pumps east. they take almost
half the crude produced in this field
The Independents have made won
derfu1 growth in the last few years
Before that time they were unable to
finance themselves as they could not
command the attention of the bank
erS. The Standard Oil company had
all the large banks at their command
as well as the press. The banker did
not want to take the risk, as he was
afraid the oil man could not live in the
face of Standard Oil company COM
petition. So the Independents in many
cases promoted their own banks and
then few years ago the banks woke
up and found that the oil business
was one of the largest in the world
And that the oil securities were the
best that they could have gotten They
only found this out when they began
to do business with the oil mans bank
The oil business demands access to a
great deal of money and oil men are
heavy borrowers.
Business Must Grow.
The refinery is not like a mill or
other mercantile business, lust build
a factory and lay in a stock of goods,
but they have to build pipe lines and
the tank farms to gather the crude,
the refinery to run the crude and the
tank cars to transport the finished
products. The average refinery needs
about 500 to 1000 tank cars. These
cars cost today approximately $4,000
apiece. The railway companies fur
nlsh very few of these, and under a
recent legislation of the interstate
commerce commission they do not
nave to furnish any. The Frisco is
today selling all it's tank cars, which
| is victory for the Standard Oil COM
pany. Especially at this time when
steel is so high, and we have a car
shortage confronting US. Then again.
we nave the distributing stations
Ihese stations in all these small
towns have wagons and motor trucks
| 10 make delivery and think that we
denver Kerosene and gasoline 200
miles from production, and deliver