The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1879-03-12
RAILRoAp plscnIMINATloN.


The Secret Contract OF the standard o.
Company and the Pennsylvania Raj
road, and Incidentally, with the HALT
more 4 Ohio and New York Central.
PHILADELPHIA, March 10. The follow
ing Is the contract between the Standar,
Oil Company and the Pennsylvania Rail
ROAD, produced in Court by Sccretary
Leslie:
PHILADELPHIA, October II, 1877.
Thomas 4. Scott, President PsRnsyirania Rail
road;
In consideration Of the covenants b,
your company, TO be performed as here
matter mentioned, we agree us follows:
First 1t having been agreed by the
trunk lines that OF oil shipped by the
trunk lines TO the cities OF New York
Philadelphia and Baltimore, sixty.tllrce
per cent shall be considered us the pro.
portion which should naturally 90 to the
city Of New York; and it having been
further agreed that Of this percentage one.
third shall be transported over each Of the
trunk lines having termini in New York,
viz, the New York Central, Eric and Penn.
sylyania roads, we agree, unless the aiore-
said division shall be changed by mutual
consent Of said trunk lines, 10 ship such
quantities OF oil over your lines, from time
TO time, as will, when added TO the Quan.
tity shipped by parties other than our.
selves, give your line one.third OF the
shipments to New York by the said trunk
lines, or q per cent Of the whole amount
shipped TO the three cities above named
by the said trunk lines; it being under
stood that in stating the number of bar.
rels for the purpose OF making this divi.
sion Of or carrying out any OF the other
stipulations herein contained. the barrel
OF 40 gallons Of crude shall be the unit,
and that such barrel Of the usual size Of
refined oil shall 10 counted as equal 10
l $40 barrels Of crude.
Second. 1t having been agreed, as We
are informed, between your company and
the Baltimore and Ohio Railroad that OF
the remaining 81 per cent Of the total
shipments aforesaid you should be enti-
tied to transport by lines owned and con-
trolled by your company to Philadelphia
and Baltimore 20 per cent, and the Balti.
more and Ohio Railroad Company 10 Bal
timore, by It's lines, II per cent, We agree,
until these proportions Rre changed BY
mutual consent, to ship such quantities 10
Philadelphia and Baltimore by line owned
and controlled by your company us will,
when added TO shipments OF parties other
than ourselves, give for transportation BY
your lines TO Philadelphia and Baltimore
90 per cent Of the total shipments BY the
four trunk lines to the three sea shore
cities above named.
Third. We further agree thatthe quaint.
ity Of oil which We will ourselves ship
over your limo shall not in any calendar
year be less than 100000 barrels, based
upon an average production OF not less
than twenty thousand barrelsper day. II
we should fail to give you the traffic here
in named We pay to you sum equal 10
the quantity In deficit. Provided, how
ever, that you will at all times furnish us
with transportation as we may require it.
Fourth. We will, OF all production OF
oil going to Philadelphia, refine rs much
as practicable in Philadelphia, as We un.
derstand that you desire to see the refining
capacity Of Philadelphia fully employed,
and, il needtul, increased. And in ship.
ping by your lines, whether to PhiIadel.
phia, Baltimore or New York, we will en-
deayor to deliver the oil 10 you ut points
from which you will have short hauls,
and to the extent that we can We will
make the proportion of crude shipped as
large as possible, as We understand its
transportation to be more protitab Q to
you than that OF refined oil.
Fifth. We ask in consideration OF the
above named guarantee OF business upon
which it is understood we shall pay such
rates as may he fixed from time to time by
the four trunk lines (which rates 1t is I'M
derstood, shall be so fixed by the trunk
lines Us 10 place Us OH parity as 10 cost
Of transportation with shippers by COM
peting lines); that you shall furnish US
promptly all the transportation We may
reasonably require, and that you shall al.
low TO and pay us weekly such commits
sion on our own shipments and the ship.
mentg which We may control Us may be
agreed to by your company and the other
trunk lines from time TO time, This com.
mission, it is understood, has been fixed
at ten per cent upon the rate, and shall
not be fixed at o less percentage, ex-
cept by mutual agreement OF your CON.
pany and ours; provided that no other
shipper OF oil by your line shall pay
less Than tho rate fixed for us before such
commission is deducted, and no commits
sion shall be allowed any other shipper
unless no shall guarantee and furnish you
such quantity OF oil for shipment as will,
after deduction OF commission allowed
him, realize 10 you the same amount oil
profit you realize from our trade; that is
YOU will not allow any other shipper oil
oil any part Of such commission unless,
after such allowance, you realize from the
total OF his business ihe same total amount
| OF profit you realize from the total Of oul
business, except so far as your company
may be compelled TO Ill certain CONTRACTS
for transportation made by the Empire
line with reIiners and producers, which
contracts terminate OH or before May ]
1873, a statement OF which shall accompa
ny your reply to this letter, such contracts
to be fulfilled. We agree that all the slip
ulalions herein contained shall be carried
out by Us for the period OF five year
from the date hereof unless sooner change
or terminated by mutual consent; provid
ed that you advise usin writing within teI
days that your company accept, and viii
carry out lis part OF the arrangement for
like term. In entering upon this agree
ment We desire to put ourselves on recort
as expressing our wish and intention o
making our business relations with you
company such that not only your mail
lines, but the connecting lines Uontrnllct
by you, especially the Allegheny Vallp!
Railroad, shall secure the best possible 70
suits from the oil traffic consistent will
our existing obligations to Ohio transpor
tation interests. We feel that the Location
Of our rc6ncries-all Of which can b.
reached by your lines-should mai
uralIy create a close alliance between
YOUR company and ours; and tina
Tho best results from this importan
traffic can only be secured to yOHrselvC
/, and ourselves, and, we might add, to th
. entire petroleum interest Of the country
, by the establishment OF friendly and mi
italy satisfactory arrangements betwec