The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1921-07-18
Commerce Counsel HOgueland
Sees Opportunity for Appeal.
BASED ON |. C. C. OPINION
/. G.. C. Wouldn't Hike Oil Rates
Within the State.
May See Rates on Farm Prod
ucts in the Same Light.


Kansas shippers of grain. brick, ce-
ment, coal. sand and similar commodi-
ties which are hard hit by the increase
in freight rates authorized by the in
terstate commerce commission, may
find ray of hope in the attitude ex-
pressed by the commission in the mat
Ter Of freight rates on oil.
z. H. Hogueland, commerce counsel
for the Topeka Traffic association, be-
heves that the commissioners have
open minds on the subject of rates on
commodities which have greatly de-
creased in value since the increase of
interstate rates was authorized in Au-
gust. 1920. This applies most pointed
Iy to wheat and other farm products.
Hogueland bases his belief on the
refusal of the committee to permit
increases of the intrastate rates in
Kansas, of petroleum, crude, fuel, road
and gas oils, to a scale level with the
Interstate rate.
Discuss Rates on Oil.
In the printed opinion handed down
with the order of the interstate COM
rnerce commission which reached To-
peka today, this class of rates is dis
cussed as follows:
Fuel oil completes with coal. The
Kansas oil interests show that at the
rates to number of important points
average about 1872 per cent of the
slack coal rates and the proposed
fuel-oil rates average about 221 per
cent of the proposed slack coal rates.
They point out that the carriers seek
about $29 per car increase in freight
charges, although during the past nine
or ten months the price of crude oil
has dropped about so per cent and
that of fuel oil about 70 per cent.
Prices of refined products at the time
of the hearing had dropped from 40
to so per cent.
Freight Charge Ration Increased.
Data, submitted by the shippers,
show how the ratio of freight charges
10 the value of oils has increased, and
what the increase would be under the
rates sought by the carriers. On
crude oil, the charges were formerly
ii per cent of the value of the Oil;
under the present rate they are % per
cent of the value of the oil, and under
the proposed rates. 29 per cent of the
value of the crude oil. On fuel oil
they were formerly IL per cent, are
now SO per cent, and under the pro-
posed rates would be 70 per cent.
Several instances were cited in
which the present intrastate rates are
higher than interstate rates in the
west.
Like most other industries in the
country. Kansas oil refineries are
either not operating at all or only at
about half capacity. Witnesses for
these interests state that any further
increases, particularly in the rates on
low grade oils, would be disastrous to
the refiners, as it would more than
wipe out the profit, there being too
narrow a margin between the values
OF the crude oils and the refined oils
=. If the commission, Hogueland rea-
sons, are willing to refuse increases
in rates on oil products because of
the ratio of the freight rates to the
value of the product, they can hardly
overlook the fall in the price of wheat
and other farm products, which has
been approximately the same as the
fall in the price of oil products.
The same thing is likely to apply to
brick, cement, sand and similar COM
modities of heavy weight and COM
paratively little value.
In the opinion which reached To-
peka today, Hogueland believes that
a gate is left open for the adjustment
of these specific cases in accordance
with their real merits, in the follow
ing paragraph:
Gives p. q. c. Chance.
These findings are without preju-
dice to the right of the authorities OF
the state of Kansas or of any other
party in interest to apply in a proper
manner for a modification of our
findings and order as to any specific
fntrastate rates, fares or charges or
the ground that the latter are not re-
lated to the interstate rates, fares and
charges in such a way as to contra
vene the provisions of the interstate
commerce act. In appropriate pro-
ceedings we shall avail ourselves OF
opportunity to cooperate with the
Kansas authorities in considering
particularly such questions as join
rates in lieu of combination rates and
the correction of the disparities due
TO the relocation of the line of the
Atchison, Topeka, and Santa Fe be
tween Kansas City, and Topeka"
Shippers Are Interested.
Shippers are applying frequently Il
the Traffic association for informa
ton as to the new rates and the TIM
when they will be put into effect
Railroad officials do not yet know
how soon theme tariffs can be pre-
pared and filed with the interstate
commerce commission. The order o
the commission permits the rates t.
become effective five days after the,
have been filed with the commission
There was dissension in the com
mission itself as to the right of tina
body to establish intrastate rates il
Kansas. Two new commissioners
Lewis and Campbell, dissented from
the opinion handed down. Campbell
and Lewis asserted that the commits
sion had no right to interfere wit
the rates fixed by the state authorities
except as they were related with tn
Interstate rates ordered by that body