Tulsa daily world. [volume] (Tulsa, Indian Territory [Okla.]) 1905-1919, 1911-05-26
TEXAS COMPANY Asks RECEIV.
IuSulp TOR OIL COMPANY.
TIME INJUNCTION Granted
Properties Worth Millions Involved
Hearing June > Contract Called
Into Question.

+ lars, the Toyas Company Wednesday
night was granted temporary in
/ Junction against the Central Fuel OH
| Company by Judge Ralph Campbell
LAT Muskogoa, The petition of the
ToNas Company was filed with Judge
7 Campbell in the Circuit Court OF the
/ United states for the Eastern District
/ Of Ollahom, shortly before midnight
The Texas Company asked the court
for an injunction to prevent the Cen
tral COMPANY from delivering It's pro-
ductIon TO any other pipe Tine COM
pany, for t,~ enforcement Of specific
performance of contract, and for
rccct, crship for the Central, alleging
that company to be insolyeut,
Judge Campbell granted the Texas
Company temporary Injunction and
set the matter for hearing at Musko-
see on jun g week from today
The action Of the Texas Company
was taken after It Is said to have re-
ceivcd notification about week ago
from the Central that upon May 25.
tho Central would not deliver its pro-
ductlon to the Texas Company This.
It Is said, Nas contract agreement
entered int between the Central and
the Texas shortly after the Central
was formed TO take over oil lands
In Northeas'ern Oklahoma nearly a
year ago that the output of the Cen
tra was to go to the Texas.
The contract between the two COM
panies has peen much a matter OF
Speculation and It Is said by promin-
ent oil mcl that there are few who
are acquan ed with the real agree
ment. However, 1t seemed that the
Central Fuel Company contracted
with the Texas Company for the de-
livery Of It's production into the lines
Of tho Texas. the Texas Company to
build It's lines into the Centrals fields.
connect the different leases with Its
pipe line, aiid stipulatlng the estab-
handling Of the oil Of the Central
Company
The Central Company was to re-
ceiye a price OF 80 cents a barred for
IT'S oil. and agreed to deliver to the
Texas Company so It is understood.
something like 10000 barrels Of oil
n day The Central however, was
not 10 receive cash for its entire pro-
d ductlon bu. so per cent Of the pro-
ducton taken by tho Texas was to
be paid for by the Texas in fuel oil.
which the Texas Company was to de-
liver 70 the Central at Houston, Tex.
at fixed piice per barrel, from
winch was to be deducted the cost
. Of transporting the oil between the
oklahoma field and Houston through
the pipe line Of the Texas. cost OF
about IA cents barrel. The Cen
ral Company Is said to have bound
Itself in tn, agreement to pay the
Texas the sum Of $4,000 a month for
the foregoing facilities
About a week or ten days ago, It Is
d understood he Texas Company re-
ceived notification from the head
quarters OF the Central to Bartes-
p vile Okla that beginning on MaE
IS, the Con'ral would not deliver It's
b production 20 the Texas. The Texas.
3 through It's attorneys. Kellough &
f billiard Of Tulsa, and James A. Au-
r ,ry and A l., Beatty Of Houston,
D Tex, Immediately began preparations
q to force th' Central 10 comply with
D the terms Of contract, resulting In
{ the action Of Wednesday night.
q The petition filed by the TeXvs
{ Company asserts that the Central
d Company is not living up to its con-
E tract in thu matter Of furnishing tho
3 daily number OF barrc.s OF oil agreed
/ upon, which, tho petition states, now
/ amounts 10 something over 100000
barrels mcnth, or something like
1000 barrels a day The Texas also
) claims to have expended about $1,000.
900 IN preparing TO handle the output
agreed upod with the Central
Altogether. twenty-nne oil compa-
MES that went into the gigantic deal
involving millions OF dollars are
named as defendants.
At the Offices Of the CentrqI Com
pany IN Raulesvlle yesterday George
C. . Prlestly president Of the company.
refused 90 discuss the action Of the
Texas Comrany Information was
Impaired from the Centrars offices
that "lts site or The controversy
, would be- brought out when the mat
ter comes no IN court on next Friday.
The alleg I'd action Of the Central
Company IN serving notification on
: the Texas Company that Il would dis
continue giving It's oil into the lines
of tho Texas, and the cause Of that
action, Is a hing that VIII probably
rcmaiu prohlcmatlcal until the date
of the Injunction hearing. Moro
than likely IL tx based on that part
Of the agreement TO take fuel oil In
return for 30 per cent Of us deliver
les 20 the Texas. Al the time the
agreement vas made It Is said, the
Central saw an opening 20 market
immense quantities OF fuel oil to the
Texas aud southern Pacific railways.
That which seemed to be a sure thing
IdId upt On lhrnugh and n IA aaId nn