The Lancaster news. [volume] (Lancaster, S.C.) 1905-current, 1919-10-07
Reported That Company Has
Arranged to Replace The
Coal Burners
MUCH CHEAPER THAN COAL
Mexican Petroleum Company
Will Finance Deal and Sup
ply Fuel Oil Saving Half
Million a Year.

Conversion of a large number of it's
freight and passenger engines to the
oil burning type instead Of the COM
mon coal burning type IS planned by
the Seaboard Air Line Railway Com
pany, according to a current report.
The Seaboard will be the first impor-
tant road in the southeast to employ
engines Of the oil burning type, al.
though such engines have been used
In other parts of the country for
years. 1t is believed that the cost of
transportation will be decYeased by
the step.
According to the report, the Sea-
toard has entered into a five year
contract with the Mexican Petroleum
Company, by the terms of which the
oil company is to furnish it with 40
per cent of its fuel requirements, the
oil to be sold on a basis of SO per net
ton of coal at the railway junction
points, where the fuel is ordinarily
taken A ton of coal is taken to be
equal to 3.66 barrels Of oil.
The Mexican Petroleum Company,
is to loan the Seaboard 81 100000 in
cash $250,000 of which is to be used
in erecting tanks at Tampa aud Jack.
sonville, where the oil VIII be brought
by the oil companies steamers direct
from Mexico. The other $3.50, 900 is
to be used in converting $50 locomo-
from IN oil h;o
floan is to be repaid. according TO the
y report, at the rate of ten cents for
each barrel of oil delivered
1t was only about ten days ago tnat
the Mexican Petroleum Company en-
tered into a contract with the re-
ceivers of the Missouri, Kansas G.
Texas Railroad, whereby they arc to
supply this road with fuel oil. this to
'oe delivered at Galveston. Texas
This railroad last year used 1892
tons Of coal. at a cost os st.5t per
ton or astotal of $2.SO64S6.52.
Others Have Changed.
In the petition to the court per-
NIT the receiver to enter into a con-
tract with the oil company, II was
shown that other railroads in the
southwest have changed from coal to
oil. During the period of the war one
road was compelled to return to the
coal burning type of locomotive, so
that the Missouri, Kansas & Texas
was constrained to hold proposals it
had made for substituting oil in
abeyance. The Texas & Pacific has
also determined to burn oil
There Is comparatively little coal
in Texas and the cost of obtaining
coal from Oklahoma, Kansas and
other States is constantly mounting
the petition states. The cost of the
changing OF its equipment for sub
stituting oil will not exceed $3.50 900,
and the contract with the oil COM
pany provides for the advancement
OF that sum or that part of 1t that
may be needed.
The contract calls for 1900. 900
barrels of oil year TO be furnished
the railroad company between Sep
tember 1, 1919 and December 81,
1924. The railroad is to pay sixty.
five cents barrel of forty-two gal.
Ions, plus the handling charge When
the railroad has its locomotive equip
ment ready to begin exclusive use of
oil for fuel the oil company will fur-
nish about 10000, 900 barrels per
month.
Advance the Money.
The oil corporation is to advance
not in excess of $780, 900 to allow the
railroad funds with which to refit
its locomotives with oil-burining
equipment and provide storage facili-
ties at other places than on Calves
ton Island where the oil company will
install three or four standard 5000
barrel tanks. The railroad company
will reimburse the Oil company by a
payment of thirty-five cents addition
al on every barrel received untn the
debt is satisfied.
The primary saving by the sub
stitution OF the oil burners Will
amount to s53s.453 year, accept