The Morning Tulsa daily world. [volume] (Tulsa, Okla.) 1919-1927, 1920-08-21
In THE OIL FIELDS
Office, s24i w. II. PECK Residence 2442

sion decided that In order to ohmin
return Of 10 per cent upon inc
value OF their property plus hhli
Of one per cent additional, the cast
ern group uf railroads should m
crease their rates 40 per cont; the
southern group % poI cent inc
western group 80 per cent; tho
mountain Pacific group 20 per
cent
Rates between points In differ
ent groups are increased as follows
/ ID where rates are constituted ny
| the use OF combinations upon gate
ways between any two groups, the
/ through rate should he Increased hy
applying to each factor its respective
per centage (2D Joint or single lines
| through rates between points In on"
gruup and points In another group
should be increased 33 l-3 per cent.
These general advances are re-
qulrcd In order 10 give the carriers
the revenue to which they are on
titled. To granting the carrier nee
cHsnry revenue, the independent re-
finors uf tho mid-contincnt field has
/ and can have no objection lie roai-
iziod that such an advance was
needed and was bound to come. He
dld not oppose the was, however.
vitallv interested In the form such
an advance should take. lie desired
ana worked Tor "a specific advance uf
a certain number Cf cents per hun
drod pounds instead uf a per contago
advance"
80 far as revenue In concerned,
either form OF advance In equally ef-
/ fective. Tho effect upon compcti-
| tion between rcfinerH located at diff
/ forent points, N the two forms of
advance are entirely different" The
rcfincr close To n market has a low
ratio TO that market-tho refiner far
from the market has high rate "a
the market. In case rates suffer a
a advance OF "A certain number OF
cents per hundred pounds, both
rates suffer the same advance and
the two refnorles continue to com
pete In the market"
I'm case rates suffer per centags
increase the small rates for the short
haul refiner go up but cent or two.
The high rate for the long haul goes
up ten or twenty cents and the Ions
haul refiner must either absorb
this Increased cost or withdraw from
the market"
!
his o!! In Kansas or Oklahoma and
sends his refined product by rail e
market In all parts OF the country
even to the Atlantic scaboard. lie 1,
IA long haul reflner."
"Other refinera pump crude oil BY
pipeline from Oklahoma to refinor'
les situated In various parts OF tho
country even to tho Atlantic coas
and there refine II. They then nhiI
refined products by rail to nearb,
territory"
'Stln other refiners pump crud'
oil to tho Gulf coast, rofine II there
ship II by tank steamer to Atlanta
senports and then haul II by rail
! few miles inland to the adjacent ter
ritory, These two classes consiitut
the short haul refiners."
r Take Detroit for example: Th
gasoline used there may be refine
In oklahoma and shipped by rail I
= Detroit--it may be pumped by pipe
! line as crude oil to Lima. Ohio, ther
refined and the gasoline shipped b
rail to Detroit. At present the mid
continent refiner Is competing 10
. the Detroit business---the short rat
for tho short haul from Lima
{ small, II will advance but Il fey
, cents. The rate for the long hau
from Tulsa In high--35 per cent vii
, amount to an is cent advance
: This additional burden will i'm
, mediatoly lessen the amount OF bust
, ness the id-continont reflner vii
! do In Detroit. This means a smalle
supply OF oil in Detroit which wi
, not help Detroit"
During the war the railroad rate
were advanced rs per cent Tn