The Houston daily post. [volume] (Houston, Tex.) 1886-1903, 1901-08-01
WILL BURN. FUEL OIL
Southern Pacific Preparing TO Aban.
don the Use of Coal.
CHANGE TO BE MADE At ONCE.
Expected Alterations viii Be Completed
Within Sixty Days.
hANGE TO BE MADE AT ONCE.
OTHER IMPROVEMENTS CONTEMPLATED
Five Hundred Tank Cars and Fifty stor-
age Tanks Have Been Ordered tor
Immediate Delivery.
lspecIal q The post.l

New York. July Silt was announced
today that the Southern Pacific RAILROAD
company had placed an order for 500 tank
cars and fifty storage tanks for Immediate
delivery This is the first step toward sub
shutting oil for coai as fuel on the At.
laniic division of the system, and II Is ex
pected that the change viii be completed
within sixty days.
The oil burners for the locomotives have
also been ordered, aud will be delivered
before September l. The work of chang
ing the furnaces of the engines from coal
TO oil will require hut little time. aud
will be done in the company's shops.
The storage tanks viii be located nj
beaumont, Houston, Lake Charles. I.afay-
cite and Algiers on the Eastern division
The tanks will be distributed at conyen.
lent points on the Texas division between
Houston and III Paso The Houston ana
Texas Central and Houston. East and West
Texas railroads, controlled by the Southern
Pacific, will also substItuts oil for coal and
a portion of the storage tanks ordered Va
be assigned to those two lines.
The officials of the Southern Pacific are
considering the ACCESSIBILITY OF construct
Ing pipe line along the nghtof-way of
the railroad between Houston and New
Orleans and 1t is quite probable that the
project viii he carried out. A pipe line
would enable the company to handle the
oil much cheaper than by rail while II
would lie of immense BENEFIT 10 the oil
companies operating in the Texas fields
II pipe line Is built, the company will
also put on line of tank steamers to
transport the oil from New Orleans 10
HAVANA, New York, Philadelphia Boston
ana other eastern cities rAece- IL will be
placed in competition with coal
The Southern Pacific steamers. 1t is re.
ported, Will abandon coal and use oil for
1uel as soon as the change can be con
yenently made.
10 Issue from $10,0O0,000 10 Sl5.000.00O Of
new bonds, to be used largely for making
the change in motive power on the Texas
and California lines from coal TO oil. for
constructing pipes to transfer oil and for
oil properties which the company has ac-
CURED, or Is about to acquire, In order TO
guarantee an abundant supply for years
Officials of the Union Pacific and sonth-
ern Pacific companies have held several
imIcrtant conferences since The arrival
of President Charles NJ. HAYS in this city,
with q view 70 mapping eut needed I'M
proyements on the two systems, Imme-
.diate attention Is to be given to the South
ern Paeilc, whose traffic growth has been
very rapid, and which. IN the opinion Of
the interests which coutrol the company,
Justlhes the expenditure OF liberal amounts
for improvements and for rendering the
roadway capable of hauling traffic at 4
lower ratio of expense.
one of the vital weaknesses of the South.
nrn Pnclhcs operations Is the high cost Of
vintnge as compared with the Atchisbn.
for example, and II the former could secure
!ts fuel equally cheap II would mean sub
stantlal dividend on Southern Pacific stock.
The discovery Of oil In paying quantities
in Southern California and Texas was
watched witr interest by Southern Pacific
officials. and careful observation convinced
them that enough oil could be obtained,
substitution of oil for coal on many divl-
SONS The late President Huntington had
used oil on many engines in California and
found 1t cheaper than coal before the for
mer was discovered In large quantities.
Since the recent ''strikes' the price of oil
has tumbled t. such basis that an offl-
cial Of the Southern Pacific company csti-
mates that there will be a saving of Mt
least one-thlrd In fuel where the substl-
tuition is made. The economy may he still
greater The cost Of changing the fire
boxes and certain other parts OF the en-
gincs win not be large.
In addition to the substitution of oil for
coal the company will make large expeadi.
turts for replacing bridges along the main
divisions and in laying heavier rails Fhe
rails taken up Will not he vaste,t lnt VIII
lie put down on less Important divisions.
PLns for hrancing the new expenditures
have not yet been fully determined upon;
but III IS Salu indtr lHp utW holiu lnHit Nili
mr.. badly lie short-term collateral tTnst
AZ per cent bonds of 1900. Of which $50.
GOO. 600 was authorized, and OF which Slo,-
100000 Is already outstanding. These are
secured by TIE deposit Of, S7,l14Ho .par
valre of various Issues of bonds and $50,
3S7 600 In stocks OF companies controlled.
The mortgage provides that other bonds
may he issued against the. deposit OF auul'
tional stocks and bonds Of companies con
frolled or acquired up g 30 per rent OF me
actual cost thereof The Southern Paeinc
has still other mortgages under which bonds
may he issued for Improvements.
Officials OF the Southern and Union ia,
cIhc who we're seen about the proposed
issue of bonds. declined 10 speak about the
matter, saving that the details Of the new
improvements had not been fully WORKED
out One director sald that the system =, l,I u
so enormous that s5o,OO0.Vo could. easliS
he spent upon It and none of II wasted.
The gross earnings for the year s end tsa
June 80 last are declared 70 ne IN r .aS
With SG4. 100000 Inst year, and they con
tinue 10 show large increase. The on
cials OF the company hope. as result o.
the large expenditures 70 he made durlns