New-York tribune., 1875-02-06
THE PETROLEUM TRADE.
A STRUGGLE FOR Trs POSSESSION.

VANIA RAILROAD COMPANY-GRoWTH OF THE
OIL REFINING AND EXPORTING BUSINESS OF
BALTIMORE.
[FROM THE REGULAR CORRESPONDENT OF THE rRiDUNE.l
PHILADELPHIA, Feb. 4-Wbether n small
iron pipe for conveying oil shall be allowed to cross
local railroad in Western Pennsylvania would not ap
pear to be question much concerning people away
from the neghOOrhOoi where pipe and road are situated
1t is however matter OF such moment that II eSces
business circles in Philadelphia and Baltimore, Affects
the oil shipping and refining interests OF New-fork, and
vitality corporations and ndiVlduaIs con-
neced with the oil trade in Cleveland, Pittsburgh ana
other interior points The struggle for the possession OF
the business Of refining and exporting oil Is Thought 10
hinge upon the decision OF this question Although New
YORK has great q stake this city in the matter
not awaken much interest there because the
petroleum trade is only OF many lines OF export
business centerng in that metropolis Here II Is one OF
u few. If not the lamb Of Philadelphia com-
merce 1t belongs to a small Aoek. The significance OF
the attempt to lay the pipe Is that 1t Is an ehort
the part OF Baltimore to take away thIs
trade, and with it the business Of refining. which
has grown into an important industry OF late'
The pipe company, called the Columbia Conduit Com
pany. has constructed line from MillcrstoTn, In the
lower or Butler oil fields TO Fairyew point on the Al
egheny River, Just above Pittsburgh, the purpose
being 10 tap the best producing district in the state and
conduct the crude petroleum to Pittsburgh for supply
ing the rehner5s tneTc and for shipment to Baltimore
over the COnnesve branch OF the Baltimore and ONO
Railroad. After putting down nearly 40 miles OF pipe
and getting within sight OF s destination, the Company
encountered Powerss Run the track OF the western
Peunsyveuia RlrOad, branch, In effect OF the Pehh
sylyania Railroad How 10 get across thi3 Track was
the next ques ION The General Pipe law, passed In
1872 does net apply TO Allegheny County III was puf
posely limited to the olproducmg counties IN order
that lines might be built to take away tao carrying
fo oft he rail- ada Tnn
difficulty in getting the right Of way from the land
owners whose property tho pipes crOsscu uhtl II
reached the railroad but The railroad company barred
the further progress OF the work. aud Attempted TO rem
der the enterprise abortye by refusing 10 permit
the pipe to De carried undcr over its track As the
railroad owned the groand in fee simple all the way
down to the center OF the crth and the air FOR an IN
definite distance heavenwJrd the obstacle was insuper
able unless legislation IudciI decision removed IT,
Tue Conduit Company had capital to back H. ana deter
mined 10 make tiaht. IL proceeded to complete It's
line On the other SIDE Of the track all ready Tor couhec
ton. Finally, last FI. the connection was at
teuptpd but was successfully resisted by n
force OF men employed by the railroad An
Injunction was also obtained by the railroad company
and the Conduit Company was forbidden from proceed
iuc course was had 10 the L'gi51turr bat as
the new constitution prohibits tue passage OF sp'cHl
acts the ConIu; Company obliged to ask for
general pipe law applicable TO the whole state OH
for sueh aIaw pen-ag, with an excellent prospect
OF being speedily smothered by the PennsJ Jlyaua rail-
road interest. /, was roblhly because It knew that
such a fate awaited the that the Conduit Com
panv reopeucd hosities with the railroad few days
ago by connecting their pp5s across the track and
defending the crossing with an armed force.
TIE system OF OIL TRANSPORTATION.
IL! order just what IL at issue III tins novel
quarrel we must know something Of the ystcm Of oil
transportation now IN operation Uatl very recently
D. tpflF "a IN
the OH regions These the Peuusylvann, the Like
shore and the Atlantic and Great western. The
establishment OF pipe lines modiicd someShat tie
transportation system but the il0lence OF the roads
and the restrictive easllton adopted III their interest
made the pipes feeders them Instead or rivals convey
l2 TIE crude oil to the prncipe shipping points OIL the
railroads. ana seldom ruGntng parallel to them. a
bitter competition sprung up between the three rail-
roads for tho carrying trade Of the OIL region The
Pennsylyania road endeayOred 10 direct the crude OIL
east TO the Phlladelpbii AMI New-YOTk rehnercs Ihe
Atlantic aud Great Western ana Luxe Shore
Roads were, of course, rivals for the New-Iork
bound oil. but they also acted in the interest
of the rich and powerful refining firms in CieveLtnd'
An anomalous feature IN tnc WnOic transportation DuS-
ness was crested By these Cleveland rhner', VINO Rad
accumulated ars cipifal established extensive WORKS,
and were determined TO make Tie OIL How to their doors
before taking ITS natural trade cnGnne to tie selbord
with the exception Of t.uce in the Spring Of 1872 the
war Ia, uuiil ccnDer 1873 Fc-ut ratcswcrc put
so low lyt oil was carried at positive loss BY all three
compaLi,s FM.lly the r0ads got tirel OF tins cut
throat business and MAJ peace VITA each ohcr on thc
basis OF diSi Ing thc T.H. curious peculiarly OF
the compact hcY made that the Whole on region
is considered as station, aud ulorm rate eo'aO
lished from it t. E.stcrn Shipping port by way OF all
rcHglug points. example the CHARGE fer transport
ing enough crGl; o.l 70 80 +. barrel Of rciIat OIL Gb
bb.s) to Cleveland Puspurgh, or Ttisvlic reanore+
and taxing the barrel OF rcIuct to Philadelphia from
either of these places the same A. for trtnp
the same qutut,tY OF yruIc directly from the pipe =
mouth 10 P.iad pAia The chett was ,o pui all cli-
ing points upon Ieycl. Tue Cleveland rcnncr coHld
pat a barrel OF o wharf m Ncv-lork Jr P"i'-
GcIpl for shipment To Europe rs cheapy aS couii las
rivals III eitaCr Of those cities.
After this compact Was male the 1aroade began to
reaZca far profit G r oil Traffic but the excessive
production which bad been depressing tnc market
f1r year or two before, continued. Consumption
Jagged far behind rad ilmease stocks accumulated ~
trei, markets. and at :Ac rc1neris N tins country.
Last summer the pr'ce Of Grade OH fell 20 4j cents a
barrel nj the wells. II was heraly cheaper than
water f,- many people nad 10 pay 80 cents b. rsa FOR
h,ullg pare water for the domestic from wells
unco,rlptcd by petroleum tant Rates were mlIn-
taned ON the railroads, hut The shipments ceased In
this d,pres condition Of the m irkct tue Baltimore
and 40 Rad appeared As c0mpoutOr Tor the Oh
carr,irg trade, aud b,<tl sli2pl{ large lots from
Pi;tsaargh 10 Baltimore at low rates. the other com
pani.s uavng o1y jnst got their own differences
narnDn'Z Il, saw "ioh G!drn new anu po"'riu tN1l
i'm the ii t. T. pc evident that the u tttnJI'
and ONO CDiGptnN WAS not merely maHIng sPis'n"
effort f,r tonnage III d" seas )O nat meant - CIV"
huld Of IN petroleum tXtrt trld' 20 Bttlth".c'
r0,sbl' Farther, tihs enicrpIisnE eorpOrItlol sex
iug dlw -, TO Du. up iis paFth, citt, was de'efhe
~ cucguigc tn iblish'.pt rrfnercs there an
thus max. Baltimore the cDcf rchnng a. wen as the
cnirf cXuurting place Tor petr0, u, grcaty to TIC
de. rimrnt of Pulideip'Ia aud NV YORK.
PARTIAL SUCCESS or TIE BALTIMORE AND ONO.
The Columbia CONDUIT Company WAS TO be feeder OF
the B4luOre aHi OaiD Il, "a, and tAo ciai instrument
in he Accomplishment vi It, plrPJSc draining tie best
norous OF the Butter OIL lie d. and pouring the oil into
the tank ears Uf the Company III Pit-barrh without
the iuesmlDe advantages OF the conduit, the Bati-
t,r,, ,ui Ohio s.uWrd GurIgG the month