The Kevin review. [volume] (Kevin, Mont.) 1922-1929, 1926-06-24
RAILWAYS
CUT FUEL RATE TO
MINNESOTA POINTS
SO 1-2 CENTS PER HUNDRED, is
FIGURE; EXTENDS MARKET;
WILL BE EFFECTIVE JUNE %

After three months of negotiation!
the Canadian Pacific railway and the
500 Line have granted rate of 39A
cents hundred pounds on fuel oil
shipments from Coutts to Minneapo
lis, st. Paul and northern Minnesota
points, according to H.. H. Schwartz
Jr., of Lewistown, president Of the
AFRO Oil & Refining company and
managing director of the Maple Leaf
refinery at Coutts.
Establishment of the new rate, ac
cording to Mr.. Schwartz, will result
in the opening up of a larger market
for fuel oil, which is. now poorly
served, and will make the Kevin-Sun-
burst oil field independent of the
present fluctuating demands. The
Great Northern railway now is the
principal consumer of fuel oil pro-
duced from northern Montana crude.
The new rate will go into effect on
June %, Mr.. Schwartz said, and will
affect only fuel oil shipments, the
rates on gasoline and other light oils
remaining the same The oil will be
carried over the Canadian Pacific
lines from Coutts, Alta, the location
of the Maple Leaf refinery, to Way
burn, Sask., and from that point will
be routed over the 500 Line into
Minnesota.
According to Mr.. Schwartz, Mon
tana fuel oil producers will be at
slight disadvantage in competition
with refneries in Kansas and Okla
homa, in selling at Minneapolis and
st. Paul, he says, but they will have
the advantage in the northern por
ton of Minnesota.
The amount Of crude oil purchased
in the Kevin-Sunburst field, Mr..
said, depends entirely on
the amount of fuel sold. At best, he
pointed out, it is possible to take
out only about half in lighter oils,
leaving so per cent fuel oil, and
when there is a market for 100 bar
rels of fuel oil it means that the re-
finer can run only 200 barrels of
crude through his stills.
"The fuel oil market has been
serious problem" Mr.. Schwartz as
serted, and the new rate should go
long way toward relieving the solu
alton We will have the same rate
as that granted to refneries in the
Fort Worth district and one only
slightly higher than that for group
three, which includes Kansas and
At present there is a de-
mand for fuel oil in the territory
which we will be able to serve and
| believe that there is market for
fully 10000 car loads every year."
According to Mr.. Schwartz, assur
ance of the new rate has resulted in
an expansion program which will !
double the capacity of the sIaple |
Leaf refinery. Within the neyt two
weeks a new $500 barrel unit will be
completed and will supplement
unit of similar size which was put
into operation early in the year.
The Maple Leaf company has just
the installation of a triple
pipe line from the refinery east Of |
he town to the Great Northern and |
Canadian Pacific tracks at Coutts
ind Sweetgrass and has built a new
oading rack to facilitate the move
nent of fuel oil and other refined
products. One new 10000 barrel
,ank is now being constructed and
material for another has been order
I'd. Recently the refinery completed
20, 900 barrels 70 new storage.
The Maple Leaf refinery, Mr.
Schwartz said, markets its products
n northern Montana, Alberta and
Saskatchewan. Capital of 100000
vas invested in the refinery on jan
larry 1 of this year and when the
lew improvements are completed the
,lant will have an invested capital of
s430,0O0.
After the new rate has g.na into
effect it is planned for the Maple
Leaf refinery too take approximately
D 800 barrels of Kevin-Sunburst
rude daily and the AFRO refinery at
.ewistown will consume a like
amount. The AFRO plant also uses
,ortion of the production from the