Gilpin observer., 1910-06-02
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and laid the line in one place floating raft
OF logs mile long, as there was no bottom.
The following additional description of the
line is quoted from the Canal Record the official
organ Of the canal commission, with few slight
corrections of errors in connection with mechan-
ical features
By the first Of January 1909, practically all
OF the stationary boilers in the service of the
1sthmian Canal commission will be using crude
oil as fuel. 1t is estimated that the actual saving
to the commission by substituting oil for coal will
be at least 60 per cent Coal is delivered
on the isthmus by the Panama Railroad company
for $685. ton. On commercial basis a barrel
of the oil delivered to the commission will gen.
crate as much steam quarter ton Of coal and
as the oil costs 80 cents barrel, the saving
from a fuel point alone will be sc per cent In
addition to this the fixed expenses, such wages
OF fremen, etc, are considerably less
Oil is delivered on the isthmus by the Union
OIL company of California under a concession
granted January 10. 1906. for the construction
and operation of a pipe line from the Pacific to
the Atlantic side of the isthmus over land owned
by the United States and the Panama Railroad
company. This company had previously OBJ
tanned, under date of October 80. 1905. similar
concession from the government of Panama for
the construction and maintenance Of pipe line
across the isthmus for the purpose of conveying
crude oil and for the erection of pumping stations
and storage tanks in the cities of Panama and
Colon. The license granted by the secretary Of
war is revocable at the will Of the government of
the United States and is conditioned upon the
payment of $500 United States currency month.
beginning August l. 1906. into the Canal Zone
treasury, the fund thus created to be set aside
for the support of the public schools Of the Canal
Zone. 1t is further stipulated in the grant that.
II desired, the Isthmian Canal commission the
Panama Railroad company may purchase crude
oil from the Union Oil company of California at
80 cents United States currency barrel. In ad-
dtlon to the monthly payment of $500 to the
treasury of the Canal Zone the Union Oil
pany also pays $3.50 to the government Of Panama
and is subject to the usual Canal Zone taxes.
The oil delivered on the isthmus comes from
Santa Barbara county, Cal.
It's consistency is about the same water and
1t can be transported in pipe line as readily.
1t is pped from the field to Port Hartford where
1t is pumped Into the Union OIL company's tank
steamers. which are serving points in Oregon,
Washington Hawaii. Chile and Guatemala, as well
Panama. There are seven storage tanks in
the Canal Zone, four at La Boca. at the Pacific
entrance and three at Mt Hope. near Colon Each
tank has capacity of 1880 barrels. An eighth
tank Of like capacity, formerly located at Mt
Hope was destroyed by lightning on May 10, 1908.
The pipe line through which the oil Is pumped
to the Atlantic side of the isthmus follows the
line OF the Panama railroad and is about 4S miles
long. 1t is made of open-hearth steel pipe, eight
inches In diameter with gate valves at one-mile
intervals and without expansion joints. The pipe
holds $4,000 barrels Of oil. From level to