The Washington herald., 1921-02-11

CHICAGO. Feb. 1o.-H. F. SIN
clair, president Of the Sinclair Con-
solidated Oil Corporation. in an
nouncing today that the Sinclair
C nsolidated Oil Corporation has
sold to the Standard Oil of Indiana
a one-half interest In the Sinclair
Pipe Line Company, said;
The Sinclair Pipe Line Company
heretofore owned entirely by the
Sinclair Consolidated Oil Corpora
tion is now owned jointly by the
Sinclair Consolidated and the Stand
ard of Indiana, each of these COM
panies owning 50 per cent of the
stock. This transaction does not
involve in any way the producing,
manufacturing or distributing de-
partments of the business. 1t does
not involve the granting to the
Standard of Indiana of any interest
or representation whatsoever in the
Sinclair Consolidated Oil Corpora
ton.
The Sinclair Pipe Line Company
owns and operates about 2,SOO miles
of main trunk and tributary pipe
lines, extending from the oil fields
of North Texas, Oklahoma and Kan
sas through Missouri and Illinois
to East Chicago and Indiana. This
line representing an investment of
Isore than 100000, 900, has been sup
plying the Sinclair Refineries in the
mid-continent fields and at Kansas
City and East Chicago. Almost from
the beginning of operation of the
Sinclair Pipe as a common carrier
we have been transporting also
crude oil for and delivering it to
the Standard of Indiana at Whiting,
Ind
Capacity on Increase.
In the meantime the capacity of
our East Chicago refinery has been
on the increase and it was apparent
that in order to continue making
deliveries to the Standard of Indiana,
it would be necessary to increase
the capacity of the pipe line. The
Indiana company's proposal that the
capacity be increased and that they
| buy a half interest was attractive
as it will result to our mutual ad-
vantage because the cost of making
the increase will be relatively small
and comparatively little will be
added to operating expenses. No
change in operating personnel is
contemplated.
The increase in pipe line capacity
will be a distinct benefit to the
! crude oil producers of the mid
continent fields as it will provide an
additional outlet for their OIL
stewart Answers Sinclair.
! Commenting upon Mr. Sinclair's
statement, Gel. r. W. Stewart, chair
man of the board of directors and
chief executive officer of the Stand
ard Oil Company, said:
Yes we have purchased a hall
interest in the Sinclair Pipe Line
Company. The Standard Oil Com
pany. of Indiana, has never until
compelled by war conditions con
cerned itself with either production
or pipeline transportation. We Sc
cured our requirements of crude OF
through purchase, delivered to oul
rehneries by pipeline companies oil
in tank cars by rail.
During the period of the war oul
pipe line connections were unable tC
supply sufficient crude to keep oul
refineries operating at full capacity
owing to extraordinary demands fol
midcontinent crude on the Atlantic
Seaboard., and had it not been fol
our ability to obtain deliveries Of
crude oil through the Sinclair Pip'
Line ii would have been necessary
for US to greatly increase our use OF
rail transportation.
Main Purchases from Sinclair.
"A substantial portion of our pur'
] chases in Kansas and Oklahoms
have been made from the Sinclair