Chapter XXXVII: Appendix (1)

NUMBER 37 (See page 2004)
ARTICLES OF INCORPORATION OF THE TIDEWATER PIPE LINE

Incorporation Tidewater Pipe Company, Limited, of Titusville,
Pennsylvania. Recorded November 22, 1878. William F. Dickson,
Recorder.

The undersigned persons, to wit: Byron David Benson, Robert Emmet
Hopkins, Andrew Worton Perrin, Alanson Ashford Sumner, David Boyd
Stewart, David McKelvy, Samuel Queen Brown, Adam Clark Hawkins,
Willis Booth Benedict, Marcus Brownson, William Henry Nicholson,
Calvin Nathaniel Payne, John Hahn Dilks, Hascal Ledger Taylor,
William Henry Conley, Thomas Benton Riter, Clark Isaac Hayes,
Gershom Hyde, James Henry Caldwell, George Lawrence Benton, George
Hill Graham, Elisha Gilbert Patterson, Benjamin Bakewell Campbell,
Delos Olcott Wickham, Joseph Henry Simmonds, Lewis Henry Smith,
desire to form a partnership association, pursuant to the provisions
of an act of the General Assembly of the Commonwealth of
Pennsylvania, entitled, “An Act, authorising the formation of
partnership association in which the capital subscribed shall alone
be responsible for the debts of the association except under certain
circumstances,” approved the second day of June, A.D. 1874, and the
several supplements thereto for the purpose of conducting a legal
business or occupation, within the United States or elsewhere, whose
principal office or place of business shall be established and
maintained within the state of Pennsylvania, by subscribing and
contributing capital thereto, which capital shall alone be liable
for the debts of such association, and to that end sign and
acknowledge the following statement:

Full names of the persons desiring to form such association are:
Byron David Benson, Robert Emmet Hopkins, Andrew Worton Perrin,
Alanson Ashford Sumner, David Boyd Stewart, David McKelvy, Samuel
Queen Brown, Adam Clark Hawkins, Willis Booth Benedict, Marcus
Brownson, William Henry Nicholson, Calvin Nathaniel Payne, John Hahn
Dilks, Hascal Ledger Taylor, William Henry Conley, Thomas Benton
Riter, Clark Isaac Hayes, Gershom Clark Hyde, James Henry Caldwell,
George Lawrence Benton, George Hill Graham, Elisha Gilbert
Patterson, Benjamin Bakewell Campbell, Delos Olcott Wickham, Joseph
Henry Simmonds, Lewis Henry Smith.

The amount of capital of said association subscribed for by each is
as follows, to wit:

Said Byron David Benson has subscribed for $100,300 of the capital
of said association; the said Robert Emmet Hopkins has subscribed
for $72,400 of the capital of said association; said Andrew Worton
Perrin has subscribed for $24,700 of the capital of said
association; said David Boyd Stewart has subscribed for $16,800 of
the capital of said association; said David McKelvy has subscribed
for $72,500 of the capital of said association; said Samuel Queen
Brown has subscribed for $25,000 of the capital of said association;
said Adam Clark Hawkins has subscribed for $6,000 of the capital of
said association; said Willis Booth Benedict has subscribed for
$5,000 of the capital of said association; said Marcus Brownson has
subscribed for $10,000 of the capital of said association; said
William Henry Nicholson has subscribed for $5,000 of the capital of
said association; said Calvin Nathaniel Payne has subscribed for
$5,000 of the capital of said association; said John Hahn Dilks has
subscribed $82,300 of the capital of said association; said Hascal
Ledger Taylor has subscribed for $50,000 of the capital of said
association; said William Henry Conley has subscribed for $2,500 of
the capital of said association; said Thomas Benton Riter has
subscribed for $2,500 of the capital of said association; said Clark
Isaac Hayes has subscribed for $10,000 of the capital of said
association; said Gershom Clark Hyde has subscribed for $1,000 of
the capital of said association; said James Henry Caldwell has
subscribed for $2,500 of the capital of said association; said
George Lawrence Benton has subscribed for $1,000 of the capital of
said association; said George Hill Graham has subscribed for $1,000
of the capital of said association; said Elisha Gilbert Patterson
has subscribed for $5,000 of the capital of said association; said
Benjamin Bakewell Campbell has subscribed for $10,000 of the capital
of said association; said Delos Olcott Wickham has subscribed for
$2,500 of the capital of said association; said Joseph Henry
Simmonds has subscribed for $1,000 of the capital of said
association; said Lewis Henry Smith has subscribed for $1,000 of the
capital of said association.

_Second._—The total amount of the capital of the said association is
$625,000, and said capital shall be paid at the times and in the
manner following, to wit: Twenty-five per cent. thereof on the
second day of December, A.D. 1878; twenty-five per cent. thereof on
the second day of January, A.D. 1879; twenty-five per cent. thereof
on the first day of February, A.D. 1879, and the balance of
twenty-five per cent. thereof the third day of March, A.D. 1879. The
whole of said capital shall be paid in lawful money to the treasurer
of said association at the principal office or place of business of
said association at Titusville, Pennsylvania.

_Third._—The character of the business to be conducted by said
association is the production, shipping, refining, storing,
insuring, buying and selling of petroleum and its products, and the
acquisitions, manufacture and management of such property, real,
personal and mixed, as may be deemed necessary or advisable to use
in such business or in connection therewith. The location of the
business to be conducted by said association is at the city of
Titusville, in the county of Crawford, and state of Pennsylvania,
where the principal office or place of business of said association
is established and shall be maintained.

_Fourth._—The name of the said association is the Tidewater Pipe
Company (Limited).

_Fifth._—The contemplated duration of said association is twenty
years from the date of this statement.

_Sixth._—The names of the officers of said association selected in
conformity with the provisions of said act are as follows:

The managers of said association so elected are: Byron David Benson,
Hascal Ledger Taylor, Alanson Ashford Sumner, Robert Emmet Hopkins,
and John Hahn Dilks, of whom said Byron David Benson is so selected
chairman of said association; said Robert Emmet Hopkins is so
selected treasurer of said association; and said Alanson Ashford
Sumner is so selected secretary of said association.

_In Witness Whereof_, the persons named in this statement have
hereunto severally signed their names, this thirteenth day of
November, _Anno Domini_ one thousand eight hundred and
seventy-eight:

ELISHA GILBERT PATTERSON, BYRON DAVID BENSON, MARCUS BROWNSON,
HASCAL LEDGER TAYLOR, GEORGE LAWRENCE BENTON, ALANSON ASHFORD
SUMNER, DELOS OLCOTT WICKHAM, DAVID MCKELVY, ADAM CLARK HAWKINS,
DAVID BOYD STEWART, JOHN HAHN DILKS, GEORGE HILL GRAHAM, WILLIAM
HENRY NICHOLSON, JOSEPH HENRY SIMMONDS, GERSHOM CLARK HYDE, LEWIS
HENRY SMITH, WILLIS BOOTH BENEDICT, BENJAMIN BAKEWELL CAMPBELL,
WILLIAM HENRY CONLEY, CALVIN NATHANIEL PAYNE, THOMAS BENTON RITER,
JAMES HENRY CALDWELL, CLARK ISAAC HAYES, ANDREW NORTON PERRIN,
SAMUEL QUEEN BROWN, ROBERT EMMET HOPKINS.

NUMBER 38 (See page 2015)
TESTIMONY OF HENRY M. FLAGLER IN REGARD TO THE TIDEWATER CONTEST

[Proceedings in Relation to Trusts, House of Representatives, 1888.
Report Number 3,112, page 783.]

_Q._ Now you can make your statement.

_A._ I want to say this: The Tidewater Pipe Line was the first line
built to the seaboard, and it had a connection with the Reading
Railroad, by which the railroad and the line jointly undertook to do
business. We had several discussions of pipe-lines of the future
with the representatives of the Tidewater Pipe Line, and would have
had no difficulty whatever in making satisfactory arrangements with
them, which would have removed all unnecessary competition, but the
New York Central, the Erie road, and the Pennsylvania Central said
to us: “Gentlemen, we don’t want you to make any alliance of any
formal nature with the Tidewater Pipe Line.” They added: “We will
protect you in the matter of rates as against any competition
furnished by the Reading and Tidewater Pipe Line.” I replied to
that: “I have never seen a contest begun of this kind but what there
was an end to it. Now, we can make a satisfactory arrangement with
the Tidewater Pipe Line and avoid all this contest. It is not
necessary for you to throw away any money. We are not seekers after
low rates. We have done our business by you, and are willing to
continue, but only upon one single, solitary condition: we would
prefer not to have this contest; it is better that the Tidewater and
Reading Railroad should be recognised.” The reply was: “We never
will recognise them as carriers of oil.”

_Q._ That was the reply of these three trunk lines?

_A._ Yes, sir. I said: “Gentlemen, the other thing is of a great
deal more importance than the rates. The rates are short-lived
affairs.” Now, I will make this explanation in justice to ourselves,
in reply to the remark you made of our contest with the Tidewater
Line. We had no contest. It was simply a contest of the
transportation lines, and we, like fools, allowed ourselves, instead
of making arrangements with the Tidewater Line, to say to the trunk
lines: “Very well, then, we will stick to you and leave you to fight
out this battle.” They fought it for a year or two, and you know how
it ended.

_Q._ Three or four years, was it not?

_A._ I thought it was two years.

_Q._ Then I understand you to say that all that struggle, and the
low rate that the trunk line charged at the time the competition
with the Tidewater and Reading came into existence, was brought
about by the trunk lines themselves?

_A._ It was a struggle on the part of the trunk lines to hold the
entire oil business, and they avowed it to me not once, but many
times, that it was their firm intention never to recognise the
Tidewater to the seaboard.

_Q._ And during that struggle they actually carried it at fifteen
cents a barrel?

_A._ I should have said twenty or twenty-five cents. I knew it was a
ridiculously low rate.

NUMBER 39A (See page 2024)
AGREEMENT BETWEEN STANDARD AND TIDEWATER REFINERIES

[From manuscript presented to the Industrial Commission by Lewis
Emery, Jr.]

This agreement, made and entered into the ninth day of October, A.D.
1883, by and between the Standard Oil Company, a corporation of
Ohio, the Standard Oil Company of New York, a corporation of New
York, and the Standard Oil Company of New Jersey, a corporation of
New Jersey, who collectively constitute the party of the first part,
and the Ocean Oil Company, a corporation of New Jersey, the Chester
Oil Company, a corporation of Pennsylvania, and Ayres, Lombard and
Company, a corporation of New York, who collectively constitute the
party of the second part.

_Witnesseth_: That in consideration of the mutual covenants and
agreements hereby made and entered into, the said parties do hereby
covenant and agree to and with each other as follows:

_First._—That for the purpose of this contract the business of
refining petroleum is defined to mean the distillation of crude
petroleum within the United States, without regard to where the
crude is obtained; the quantity of crude petroleum received at each
refinery, except for export in its crude state, shall be regarded as
the quantity refined by it.

_Second._—That in said business the refineries named in schedule “A”
and schedule “B” (which schedules are hereto attached and made a
part of this agreement) shall respectively be entitled to have and
do the following percentage or proportionate part of the aggregate
business of all refineries named in both schedules, viz.: The
refineries named in Schedule “A,” eighty-eight and one-half (88½)
per cent. thereof, and the refineries named in Schedule “B” eleven
and one-half (11½) per cent. thereof.

_Third._—The refineries named in Schedule “A” and the refineries
named in Schedule “B” shall respectively do as nearly as practicable
their said proportion or percentage of said business; and is agreed
that,

_A._—If in any calendar month the refineries named in Schedule “A”
shall receive more than their said percentage of the said aggregate
of crude petroleum received except for export in its crude state,
the party of the first part hereto will pay to the party of the
second part hereto, twenty (20) cents per barrel on the quantity so
received in excess of their said percentage.

_B._—If in any calendar month the refineries named in Schedule “B”
shall receive more than their said percentage of the said aggregate
of crude petroleum received except for export in its crude state,
the party of the second part hereto will pay to the party of the
first part hereto twenty (20) cents per barrel on the quantity so
received in excess of this said percentage.

_C._—If in any year the refineries named in Schedule “A” shall
neglect or refuse to do eighty (80) per cent. of their said
percentage of said business, then the party of the first part shall
return and repay the party of the second part the sums received
under the provisions of this paragraph in excess of the sums paid
under the same provisions during the same year.

_D._—If in any year the refineries named in Schedule “B” shall
neglect or refuse to do eighty (80) per cent. of their said
percentage of said business, then the party of the second part shall
return and repay to the party of the first part the sums received
under the provisions of this paragraph in excess of the sums paid
under the same provisions during the same year.

_Fourth._—Each party hereto shall make to the other daily reports
showing all crude petroleum received at the refineries named in said
schedule, and when, where and from whom received, and all crude
petroleum exported therefrom, and when, where and to whom delivered.
The reports of the party of the first part shall show the crude
received at and exported from refineries named in Schedule “A,” and
the reports of the party of the second part shall show the crude
received at and exported from refineries named in Schedule “B.” The
correctness of such reports shall, if required of either party, be
verified by the party making them.

_Fifth._—A settlement shall be made, on or before the fifteenth day
of each month, of all business done under this agreement during the
preceding month, and payments shall then be made of all such sums as
under the terms hereof shall be found payable by either party to the
other.

_Sixth._—All refineries now owned or controlled by those owning or
controlling a majority of the refineries embraced in Schedule “A”
are or shall be included in Schedule “A,” and all refineries which
may hereafter be acquired or controlled in the same interest shall,
as acquired or controlled, be added to said Schedule “A,” and by
such addition be included in the terms of this agreement. All
refineries now owned or controlled by those owning or controlling a
majority of the refineries embraced in Schedule “B,” and all
refineries which may hereafter be acquired or controlled in the same
interest shall, as acquired or controlled, be added to said Schedule
“B,” and by such addition be included in the terms of the agreement.

_Seventh._—It is understood that forty-two gallons constitute a
barrel.

_Eighth._—A year, whenever used in this contract, is understood to
mean a calendar year.

_Ninth._—This agreement shall take effect on the first day of
October, 1883, and remain in force for fifteen (15) years from said
date.

_Provided_, however, and it is agreed that it shall not remain in
force longer than a certain other agreement of even date herewith
between the National Transit Company and the United Pipe Lines of
the first part, and the Tidewater Pipe Company, Limited, of the
second part, shall remain in force, and that a termination of said
other agreements shall at the same time terminate this one.

_In Witness Whereof_, the said parties have caused their common and
corporate seals to be hereto attached and to be attested by the
signature of their proper officers the day and year first aforesaid.

Standard Oil Company, by
O. H. PAYNE, _Vice-President_.
[S. O. C., Cleveland] Attest: W. P. THOMPSON, _Secretary_.

Standard Oil Company of New York, by
WILLIAM ROCKEFELLER, _President_.
[S. O. C., New York] Attest: GEORGE H. VILAS, _Secretary_.

Standard Oil Company of New Jersey, by
J. A. MCGEE, _President_.
[S. O. C., New Jersey] Attest: GEO. H. VILAS, _Secretary_.

NUMBER 39B (See page 2024)
AGREEMENT BETWEEN STANDARD AND TIDEWATER PIPE LINES

[From manuscript presented to the Industrial Commission by Lewis
Emery, Jr.]

This agreement, entered into the ninth day of October, A.D. 1883, by
and between the National Transit Company and the United Pipe Lines,
each being a corporation of the state of Pennsylvania, parties of
the first part, and the Tidewater Pipe Company, Limited, a limited
partnership association formed under the laws of the state of
Pennsylvania, party of the second part.

_Witnesseth_: That in consideration of the mutual covenants and
agreements hereby made and entered into, the said parties do hereby
covenant and agree to and with each other as follows:

_First._—That for the purposes of this contract the business
hereinafter referred to is divided into departments, one known as
the “Gathering Department,” one known as the “Transporting
Department,” one known as the “Interior Export Department,” and one
known as the “Seaboard Export Department.”

All crude petroleum received directly or indirectly from wells
located in the state of New York or state of Pennsylvania, and into
the system of pipes and tanks now owned or controlled, or which may
hereafter be owned or controlled by any party hereto, either
directly or indirectly, shall constitute gathering, and the business
of so receiving crude petroleum is the business of said gathering
department. All deliveries from local lines of pipe of crude
petroleum gathered as aforesaid, to or for any of the refineries
then embraced in Schedule “A” or Schedule “B” (which schedules are
hereto attached and made part of this agreement), and also all
deliveries of crude petroleum from any of the trunk lines of pipe
now owned or controlled, or which may hereafter be owned or
controlled, by any party hereto, either directly or indirectly, and
the getting of such crude petroleum to the point of delivery shall
constitute transporting, and the business of so getting and
delivering crude petroleum is the business of said transporting
department, except, and it is agreed, that whatever petroleum
gathered as aforesaid shall be delivered to or for any party hereto,
or to or for any refinery or refining company then embraced in
either of said schedules, for export in its crude state, whether the
same shall be delivered from a local line of pipe or a trunk line of
pipe, shall not be included in transporting, nor in the business of
said transporting department.

All petroleum gathered as aforesaid and delivered from local lines
of pipe for export in its crude state (other than deliveries to
trunk lines of pipe of such petroleum for export in its crude state)
by or for any party hereto or by or for any refinery or refining
company then embraced in either of said schedules, shall constitute
interior exporting and the business of receiving and exporting such
petroleum in its crude state shall be the business of said interior
export department.

All petroleum gathered as aforesaid and delivered from trunk lines
of pipe for export in its crude state by or for any party hereto or
by or for any refinery or refining company then embraced in either
of said schedules shall constitute seaboard exporting, and the
business of receiving and exporting such petroleum in its crude
state shall be the business of said seaboard export department.

All pipes used for gathering and delivering at points in the
oil-producing regions are herein called local lines.

All lines of pipe used for transporting beyond the oil-producing
regions are herein called trunk lines.

_Second._—That in each said department of the business the
respective parties hereto shall be entitled to do the following
percentage or proportionate part of the aggregate business done by
all parties hereto then in said department, viz.: The said parties
of the first part eighty-eight and one-half (88½) per centum
thereof, and the said party of the second part eleven and one-half
(11½) per centum thereof.

_Third._—Each party hereto shall do as nearly as practicable its
said proportion or percentage of said business. And it is agreed
that:

_A._—If in any calendar month either party shall gather more than
its said percentage of said aggregate of crude petroleum gathered,
as gathering is herein defined, it shall pay to the other party on
the quantity gathered in excess of its said percentage an amount per
barrel equal to three-fourths of the then current full rate per
barrel charged for collecting and delivering crude petroleum in the
oil-producing regions—commonly called local pipage;

_Provided_, however, and it is hereby agreed that this clause shall
not be applicable to crude petroleum gathered as aforesaid prior to
September 1, 1884.

_And provided, further_, That the excess over its said percentage
gathered prior to September 1, 1884, by either party shall on demand
of the other be delivered to the other party at some point or points
in the oil-producing regions convenient to both the party receiving
and the party delivering (the means and places to be mutually agreed
upon) when and as often as the said excess amounts to ten thousand
(10,000) barrels, upon legal orders or certificates with storage and
assessments thereon paid to date of delivery being presented
therefor, or upon the payment of the then market price of United
Pipe Line certificates for a like quantity. The party receiving
shall pay the party delivering the same a gathering charge of ten
(10) cents per barrel upon all petroleum so delivered.

_B._—If in any calendar month either the parties of the first part
or the party of the second part shall transport and deliver more
than their or its said percentage of the said aggregate of crude
petroleum transported, as transporting is herein defined, they or it
shall pay to the other party twenty-five (25) cents per barrel upon
the quantity transported and delivered in excess of their or its
said percentage.

_Provided_, That the amount payable under this clause shall not
exceed the amount it would cost to bring said excess from the mouth
of a local pipe in the oil-producing regions to either the port of
New York or the port of Philadelphia at the then current rate of
transportation by any route or method not owned or controlled
directly or indirectly by any party hereto.

_C._—If in any calendar month either party shall do more than its
said percentage of business in either the exterior export department
or the seaboard export department, it shall pay to the other party
twenty-five (25) cents per barrel upon the quantity so exported in
excess of its said percentage.

_Provided, however_, That the amount per barrel payable under this
clause shall not exceed the amount per barrel which would be payable
under Clause B and its proviso at the same time for excess in the
transporting department.

_D._—If in any year either party shall neglect or refuse to do
eighty (80) per centum of its said proportion or percentage in any
department of said business, then the party so doing less than
eighty (80) per centum of its said proportion shall return or repay
to the other party the sums received in that department under the
provisions of this paragraph in excess of the sums paid in the same
department under the same provisions during the same year.

_Fourth._—Each party shall make to the other daily reports showing:

1st. All crude petroleum gathered, as gathering is herein defined.

2nd. All crude petroleum delivered from local lines other than
deliveries to trunk lines, stating when, where and to whom
delivered.

3rd. All crude petroleum delivered from local lines to trunk lines,
stating when, where and to which line delivered.

4th. All crude petroleum delivered from trunk lines, stating when,
where and to whom delivered.

5th. All crude petroleum exported in the crude state, stating when,
where and from whom received, so as to distinguish between receipts
from local lines and receipts from trunk lines, and when, where and
to whom delivered for export. The correctness of such reports shall,
if required by either party, be verified by the party making them.

_Fifth._—On all deliveries of crude petroleum from local lines made
by said parties of the first part or either of them, other than such
deliveries as constitute transporting, as transporting is
hereinbefore defined, the parties of the first part will account for
and pay to the party of the second part eleven and one-half (11½)
per centum of the then current full rate of local pipage, first
deducting from such full rate ten (10) cents per barrel for the work
of gathering and delivering such petroleum.

On all deliveries of crude petroleum from local lines made by said
party of the second part other than such deliveries as constitute
transporting as hereinbefore defined, the party of the second part
will account for and pay to the parties of the first part
eighty-eight and one-half (88½) per centum of the then current full
rate of local pipage, first deducting from such full rate ten (10)
cents per barrel for the work of gathering and delivering such
petroleum.

_Sixth._—It is agreed that in case of excess of deliveries over the
quantity gathered, as gathering is herein before defined, by all the
parties hereto, the stocks in custody of the respective parties
shall to the extent of such excess be diminished in the ratio of
eighty-eight and one-half (88½) per centum thereof from the stocks
in custody of said parties of the first part, and eleven and
one-half (11½) per centum thereof from the stocks in custody of said
party of the second part; and to this end it is agreed that whenever
and as often as under the working of this agreement the depletion of
the stocks in the custody of either of the respective parties shall
amount to ten thousand (10,000) barrels in excess of such party’s
percentage of depletion, then the other party shall and will on
demand deliver, and the party whose stocks are so depleted will when
tendered receive, said ten thousand (10,000) barrels at some point
or points in the oil-producing regions convenient to both the party
receiving and the party delivering (the means and place to be
mutually agreed upon), upon legal orders or certificates with
storage and assessments thereon paid to date of delivery being
presented therefor, or upon the payment of the then market price of
United Pipe Line certificates for a like quantity. The party
receiving shall pay to the party delivering a gathering charge of
ten (10) cents per barrel upon all petroleum gathered.

_Seventh._—A settlement shall be made on or before the fifteenth day
of each month of all business done under this agreement during the
preceding month, and payment shall then be made of all such sums as
under the terms hereof shall be found payable by either party to the
other.

_Eighth._—If in any year the profits of the party of the second part
added to the profits of the several refineries then embraced in
Schedule “B” shall in the aggregate amount to less than five hundred
thousand (500,000) dollars (excluding from the calculations all
profits realised and losses sustained from speculation and the value
of property destroyed by fire), then the said party of the second
part shall have the right within three months from the time the
profits of such year shall have been ascertained to cancel this
agreement.

_Provided, however_, That the said right shall not exist or shall
not be exercised under the following circumstances, to wit:

1st. If the average of such profits during the said year and all
previous years from the beginning of this agreement shall equal five
hundred thousand (500,000) dollars per year.

2nd. If the said parties of the first part or either of them shall
contribute to the said party of the second part such sums of money
as together with the said profits for the said year will make the
average profit five hundred thousand (500,000) dollars per year.

_And provided, further_, That in exercising the right of
cancellation the said party of the second part must give to one or
both of said parties of the first part three (3) months’ written
notice of said cancellation, which notice must be accompanied by a
statement of the said profits of the party of the second part, and
of said refineries then embraced in Schedule “B,” and any
contributions made as aforesaid must be made within the said three
(3) months.

The party receiving said notice shall have the right to verify the
statement by an examination of the books of said party of the second
part, and books of said refineries.

_Ninth._—All refineries now owned or controlled by those owning or
controlling a majority of the refineries embraced in Schedule “A”
are or shall be included in Schedule “A”; and all refineries which
may hereafter be acquired or controlled in the same interest shall,
as acquired or controlled, be added to said Schedule “A,” and by
such addition be included in the terms of this agreement.

All refineries now owned or controlled by those owning or
controlling a majority of the refineries embraced in Schedule “B”
are or shall be included in Schedule “B”; and all refineries which
may hereafter be acquired or controlled in the same interest shall,
as acquired or controlled, be added to said Schedule “B,” and by
such addition be included in the terms of this agreement.

_Tenth._—It is agreed that any business done in either the interior
export department or the seaboard export department by any of the
refineries or refining companies then embraced in Schedule “A” shall
be treated for the purpose of this agreement as if done by the
parties of the first part; and that any business done in either of
said export departments by any of the refineries or refining
companies then embraced in Schedule “B” shall be treated for the
purposes of this agreement as if done by the party of the second
part.

_Eleventh._—It is understood that forty-two (42) gallons constitute
a barrel.

_Twelfth._—A year, whenever used in this contract, is understood to
mean a calendar year.

_Thirteenth._—This agreement shall take effect as of the first day
of October, 1883, and unless sooner cancelled, as provided in the
eighth paragraph, shall remain in force for fifteen (15) years from
said first day of October, 1883.

_In Witness Whereof_, the said parties of the first part have caused
their common and corporate seals to be hereto attached and to be
attested by the signatures of their proper officers; and the said
party of the second part has caused the same to be signed in its
name and on its behalf by two of its managers, the day and year
first aforesaid.

NATIONAL TRANSIT COMPANY,
[Nat. Tran. Co. Seal.] (Signed by) BENJAMIN BREWSTER, _Vice-President_.
Attest: JOHN BUSHNELL, _Secretary_.

UNITED PIPE LINES,
[U. P. L. Seal.] (Signed by) J. J. VANDERGRIFT, _President_.
Attest: H. D. HANCOCK, _Secretary_.

SCHEDULE OF REFINERIES REFERRED TO IN THE ATTACHED AGREEMENT

SCHEDULE “A”

Atlas Refining Co. Works at Buffalo, N. Y.
Acme Oil Co. of Pennsylvania Works at Titusville, Pa.
Acme Oil Co. of New York Works at Olean, N. Y.
Atlantic Refining Co. Works at Philadelphia, Pa.
American Lubricating Oil Co. Works at Cleveland, Ohio.
Baltimore United Oil Co. Works at Canton, Md.
Bush Denslow Mfg. Co. Works at South Brooklyn, N. Y.
Camden Consolidated Oil Co. Works at Parkersburg, W. Va.
Camden Consolidated Oil Co. Works at Canton, Md.
Central Refining Co., Limited Works on Newtown Creek, L. I.
Empire Refining Co., Limited Works on Newtown Creek, L. I.
Eclipse Lubricating Co., Limited Works at Franklin, Pa.
Eclipse Lubricating Co., Limited Works at Olean, N. Y.
Eagle Oil Co. Works at Communipaw, N. J.
Galena Oil Works, Limited Works at Franklin, Pa.
Imperial Refining Co. Works at Oil City, Pa.
Pratt Mfg. Co. Works at Bushwick Creek, L. I.
Jenny & Son, S. Works at Wallabout Land.
Donald & Co., James Works at Newtown Creek, L. I.
Portland Kerosene Co. Works at Portland, Me.
Paine, Ablett & Co., Limited Works at Smith’s Ferry.
Paine, Ablett & Co., Limited Works at Freedom, Pa.
Sone Fleming Mfg. Co., Limited Works at Newtown Creek, L. I.
Standard Oil Co. of New York Works at Newtown Creek, L. I.
Standard Oil Co. of New York Works at Hunter’s Point, L. I.
Standard Oil Co. of New Jersey Works at Bayonne, N. J.
Standard Oil Co. of Pennsylvania Works at Pittsburg, Pa.
Standard Oil Co. of Ohio Works at Cleveland, Ohio.
Union Refining Co., Limited Works at Oil City, Pa.
Vacuum Oil Co. Works at Rochester, N. Y.

SCHEDULE “B”

Chester Oil Co. Works at Chester, Pa.
Ocean Oil Co. Works at Bayonne, N. J.
Seaboard Oil Co. Works at Bayonne, N. J.
Solar Oil Co. Works at Buffalo, N. Y.

NUMBER 40 (See page 2028)
TWO AGREEMENTS OF EVEN DATE, AUGUST 22, 1884, BETWEEN THE PENNSYLVANIA
RAILROAD COMPANY AND THE NATIONAL TRANSIT COMPANY

[Report of the Industrial Commission, 1900. Volume I, pages
663–666.]

Memorandum of a traffic agreement, made this twenty-second day of
August, 1884, between the Pennsylvania Railroad Company, hereinafter
designated the railroad company, and the National Transit Company,
hereinafter designated the transit company, _Witnesseth_:

That for consideration mutually interchanged, the parties hereto
agree, each with the other, as follows:

_First._—The transit company owns an extended system of local pipes
in the Oil Regions of Pennsylvania and New York, which are grouped
into a separate division, known as the United Pipe Lines Division of
the National Transit Company. This division will be hereinafter
designated as the Transit Company’s Local Division.

The business of this division is to collect oil from producer, store
it in tanks, and deliver it, as may be desired, to any through
carrier of petroleum, which will transport the same to where it is
to be refined or otherwise disposed of.

The transit company also own certain through or trunk line pipes,
extending from several points of connection with the aforesaid local
pipe division to various refining and terminal points.

With these latter pipes, which will be hereinafter entitled the
Transit Company’s Trunk Line Division, it competes in the through
carriage of petroleum with all other through carriers, whether pipe
or rail.

The business of its local division is therefore entirely distinct
from the business of its through trunk line division.

It undertakes and agrees that its local division will deliver into
cars furnished by the railroad company at any of its regular
delivery points and under its regular delivery rules whatever
petroleum the owners thereof may desire to have so delivered, and as
the railroad may furnish cars to transport, and will make no
discrimination in its local charges for carriage, storage, and other
services, or in the use of any of its local facilities, against such
oil, but will at all times treat it in the said respects as
favourably as it at the same time treats any other petroleum which
may be delivered to its own trunk line division or to any other
through carriers.

_Second._—The transit company agrees that all petroleum brought to
the Atlantic seaboard by all existing carriers, whether rail or
pipe, now engaged in transporting such property, or which may
hereafter engage in such transportation in conjunction with the
transit company’s pipe-lines, shall be ascertained monthly, and so
much of it as shall have been shipped in the refined state shall be
reduced to its equivalent in crude oil by considering that one and
three-tenths (1–3/10) gallons of crude are required to make one (1)
gallon of refined oil. It further undertakes and agrees that if of
the total so transported the railroad company shall not have moved
in its cars twenty-six (26) per centum thereof, the transit company
shall cause to be delivered to cars furnished by the railroad
company at Milton, Pa., such quantity of crude petroleum as shall,
when added to the amount which has been actually transported by the
railroad company to the seaboard in said month, make the total
transported by the railroad company in said month equal to said
twenty-six (26) per centum.

The railroad company agrees to furnish the needful cars and
facilities, and promptly transport the oil which the transit company
agrees in this contract to deliver to it at Milton:

_Provided_, That if during any month the railroad company is not
able to assign from its oil equipments a sufficient number of cars
to the traffic of the transit company to move the proportion of oil
herein provided to be delivered at Milton, then during that month
the transit company shall only be required to so deliver to the
railroad company such quantity of oil as the railroad company shall
be able to transport, and shall not be required to make up any
deficiency that may occur during said month.

Efforts shall be made by the transit company to deliver so much
during each month as will probably be necessary to make the total
carried by the railroad company equal to said percentage.

Shortages, if not due to short supply of cars, and such excesses as
may be found to have occurred in any month, shall be adjusted in the
following month, or as soon afterwards as shall be possible.

_Third._—It is agreed that the proportion of petroleum which the
transit company is to deliver under the second section of this
agreement shall be considered as petroleum transported from
Coalgrove, Pa., via Milton, Pa., to the Atlantic seaboard, and that
the railroad company shall be entitled to one-half of the current
through rates thereon.

It is agreed that whenever the through rates shall be so low that
the railroad company shall suspend the movement of oil by its cars,
at other points than Milton, the transit company shall during such
suspension not be bound to deliver to the railroad company any oil
at Milton.

_Fourth._—All joint rates for the joint transportation of oil from
any delivery point of the local pipe division aforesaid to any
refining or terminal point shall be fixed by the railroad company,
subject to the advice and concurrence of the transit company.

It is agreed that said joint through rates shall be uniform to all
parties. The railroad company stipulates that it will make no
discrimination whatever, either in rates or facilities, against the
transit company or against the oil which the said transit company
herein covenants to deliver to it.

It is agreed that the joint through rates to Philadelphia shall
always be five cents less per barrel on crude oil, or its refined
equivalent, than shall be currently charged to New York harbour.

It is agreed that the joint through rates, which shall be so fixed
from time to time, shall be as low as shall be currently made
between same and similar points by rival carriers of petroleum, and
shall not be higher than an approximate mileage proportion of rates
current on petroleum produced south of Oil City, nor than rates from
Olean and similar points.

It is also agreed that rates on refined oil and other products of
crude oil shall be fixed by the railroad company upon the following
basis, viz.:

From railroad stations in the Oil Regions to which oil is delivered
by local pipes the rate to any point east thereof on a barrel of
refined oil or other products shall be one and three-tenths (1–3/10)
times the current rate on a barrel of crude oil to the same point.

From Pittsburg the rate to any point east thereof on a barrel of
refined oil or other products shall be one and three-tenths (1–3/10)
the rate currently charged on crude oil to any such eastern point
from rail points south of Oil City:

_Provided_, That one and three-tenths times the charges for moving a
barrel of crude oil by rail or through pipe from the local pipe to
Pittsburg shall first be deducted therefrom.

From Cleveland and Buffalo the net rate on a barrel of refined oil
or other products to any point east thereof shall be not less than
is currently charged to the same point from Pittsburg.

_Fifth._—Whenever the term barrel is used herein, unless otherwise
specified, it means forty-five gallons of crude petroleum; and
whenever the term oil is used herein, unless otherwise specified, it
means crude petroleum.

_Sixth._—The transit company hereby agrees that it will not make any
more favourable terms with any other rail line connecting with any
of its pipes than the terms which under this agreement are given to
the railroad company; or if for any reason it should desire to do
so, it hereby agrees to modify this contract so as to give the said
“more favourable terms” to the railroad company.

_Seventh._—All existing contracts between the parties hereto shall
be deemed to have been accomplished, and shall become void and of no
effect upon the day this contract goes into operation.

_Eighth._—This contract shall take effect as of the first day of
August, 1884, and shall continue until terminated under the
provisions hereof. It may be terminated after August 1, 1889, by
either party hereto giving ninety days’ written notice to the other
of a desire that it shall end, at the expiration of which notice it
shall cease and determine.

_In Witness Whereof_, the parties hereto have executed this
agreement under their corporate seals the day and date above
written.

THE PENNSYLVANIA RAILROAD COMPANY,
[L.S.] By FRANK THOMSON, _Second Vice-President_.
Attest: JOHN C. SIMS, JR., _Secretary_.

THE NATIONAL TRANSIT COMPANY,
[L.S.] By C. A. GRISCOM, _President_.
Attest: JOHN BUSHNELL, _Secretary_.

* * * * *

Memorandum of agreement, made this twenty-second day of August,
1884, between the Pennsylvania Railroad Company, hereinafter
designated the railroad company, and the National Transit Company,
hereinafter designated the transit company.

_Witnesseth_: That for considerations mutually interchanged the
parties hereto hereby agree with each other as follows:

_Whereas_, The parties hereto have made an agreement of even date
herewith, in which, among other things, it is stipulated that under
certain circumstances the transit company shall deliver certain
crude petroleum into cars furnished by the railroad company at
Milton, Pa.; and

_Whereas_, It has been proposed that the railroad company shall
contract with the transit company to the effect that the transit
company shall transport through its pipe-lines the aforesaid crude
oil, which, under the other contract aforesaid, it has undertaken to
deliver into the cars of the railroad company at Milton.

_Now, therefore_, this agreement witnesseth:

_First._—The railroad company agrees that instead of delivering said
crude oil to said cars at Milton, the transit company shall
transport the same through its pipes to destination, and the transit
company undertakes and agrees to do such transportation. It is
mutually agreed that the compensation to the transit company for
doing said work shall be as follows:

Whenever the through rate for transporting a barrel of crude
petroleum from Olean to Philadelphia shall be forty cents, the
transit company shall receive eight cents per barrel as such
compensation for so much of said oil as under the provisions hereof
shall be considered as Philadelphia oil.

For each five cents of increase or diminution in said rates from
Olean to Philadelphia the said compensation on Philadelphia oil
shall be increased or diminished one cent per barrel.

_Provided, however_, That the transit company shall not be obliged
to accept less than six cents per barrel, and shall not receive more
than ten cents per barrel on such Philadelphia oil.

It is agreed that the said compensation on the oil, which under the
provisions hereof is to be deemed New York oil, shall be one cent
per barrel greater than it currently shall be on Philadelphia oil.

Whenever, and from time to time, as the said joint through rates
shall be so low that the said minimum compensation to the transit
company of six cents per barrel shall be as much or more than the
railroad company’s share of said joint through rates, this contract
may, at the option of either party hereto, be suspended during all
or any part of the time such low rates shall prevail. During such
suspension the aforesaid other contract shall alone remain in force;
but whenever, and from time to time, as said joint through rates
shall again be high enough to make the said minimum compensation,
under said sliding scale, less than the said share of said joint
through rates, this contract shall again resume its force and
effect.

_Second._—The transit company agrees to account for, and pay to the
railroad company, on or before the twentieth of each month, the
latter’s share of the joint rates on joint business _via_ Milton (as
provided in said other contract) during the next preceding month,
first retaining, however, the proportion of such share which it is
hereinbefore agreed the transit company is to have for its services
in pumping said oil to the seaboard.

It is agreed that all such joint business shall be considered as
having transported from Coalgrove _via_ Milton, Pa., to the Atlantic
seaboard, and that it shall be considered as having gone either to
Baltimore, Philadelphia, or New York, or partly to each. The
proportion thereof which has constructively gone to New York shall
be determined upon the following basis:

The total amount of oil transported in any month by the railroad
company to New York shall be compared with fifty (50) per centum of
the total oil which the railroad company is entitled to carry in
said month under the aforesaid other agreement. If the amount which
has been in such month carried by cars to New York shall be less
than fifty (50) per centum, then the difference shall be considered
as having been moved by the pipe to New York, at New York rates, and
shall be accounted for accordingly. The remainder of the oil _via_
Milton shall be accounted for at Philadelphia rates.

This contract shall commence and terminate simultaneously with said
other contract.

Witness the corporate seals of said parties duly attested the day
and date above written.

THE PENNSYLVANIA RAILROAD COMPANY,
[L.S.] By FRANK THOMSON, _President_.
Attest: JOHN C. SIMS, _Secretary_.

THE NATIONAL TRANSIT COMPANY,
[L.S.] By C. A. GRISCOM, _President_.
Attest: JOHN BUSHNELL, _Secretary_.

NUMBER 41 (See page 2060)
TABLE SHOWING PRICES OF OIL AT COMPETITIVE AND NON-COMPETITIVE POINTS IN
1892

[Trust Investigation of Ohio Senate, 1898. Appendix, pages 43–44.]

───────────┬─────────────────────────────────────────┬──────────────────── TERRITORIES│ │ AND STATES.│ PRIME WHITE OIL. │ WATER-WHITE OIL. ───────────┼────────────────────┬────────────────────┼──────────────────── 〃 │Non-competitive per │ Competitive per │Non-competitive per │ gallon. │ gallon. │ gallon. ───────────┼────────┬─────┬─────┼────────┬─────┬─────┼────────┬─────┬───── │ │ │ │ │ │ │ │ │ 〃 │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │ │Barrels.│Case.│Bulk.│Barrels.│Case.│Bulk.│Barrels.│Case.│Bulk. ───────────┼────────┼─────┼─────┼────────┼─────┼─────┼────────┼─────┼───── Arizona │ │ │ │ │ │ │ │ 31 │ Arkansas │ 14 │ │ 13 │ 8 │ │ 7½│ 16 │ │ 17 Alabama │ 13 │ │ 8½│ 8¼│ │ 6½│ 17 │ │ 12 California │ │ │ 16 │ 13 │ │ 12½│ │ 26½│ Colorado │ │ 26 │ 21 │ 10 │ 15 │ 7 │ │ 31 │ 25 Florida │ 13½│ 16 │ 12 │ │ │ │ 17 │ 18½│ Georgia │ 14 │ │ 9½│ 9½│ │ 6½│ 17 │ │ 14 Idaho │ 22½│ 29 │ │ │ │ │ 22½│ 30 │ 17 Illinois │ 10 │ │ 8 │ 7½│ │ 5½│ 15 │ │ Indiana │ │ │ │ 6¼│ │ 5 │ 12½│ │ Iowa │ 9½│ │ 8 │ │ │ 7 │ 12 │ │ Kansas │ 10½│ │ 9½│ 8½│ │ │ 16½│ │ Kentucky │ 9½│ │ 8¾│ 7 │ │ 6½│ 12 │ │ Louisiana │ 12 │ │ 10 │ 7¼│ │ 7 │ 16 │ │ 14 Michigan │ 8½│ │ 6¾│ 6¾│ │ 3½│ 8½│ │ 7 Minnesota │ │ │ 9 │ 7½│ │ 5 │ 13 │ │ 11 Mississippi│ 13½│ │ │ 7¼│ │ │ 15½│ │ Missouri │ 12 │ │ │ 6 │ │ 5½│ 17 │ │ Montana │ │ │ 20 │ │ │ 13 │ 21 │ 33 │ 25 Nebraska │ 18 │ │ │ 7½│ │ │ 27 │ │ Nevada │ │ 37½│ │ │ │ │ │ │ New Mexico │ │ 31 │ 26 │ │ │ │ │ 32 │ 28 North │ │ │ │ │ │ │ │ │ Dakota │ 15½│ │ │ 12½│ │ │ 18 │ │ 14 Oregon │ │ 21 │ 14 │ │ 19 │ 13 │ │ 24 │ Oklahoma │ │ │ 15 │ 9½│ │ │ │ │ 17 South │ │ │ │ │ │ │ │ │ Carolina │ 12½│ │ │ 8 │ │ │ 13½│ │ South │ │ │ │ │ │ │ │ │ Dakota │ 11½│ │ │ │ │ 8 │ │ │ 12 Tennessee │ 11½│ │ 8½│ 7¾│ │ 6 │ 17 │ │ Texas │ 25 │ 27½│ 19 │ 8 │ 14 │ 9 │ 30 │ 33½│ 24 Utah │ 23 │ 28 │ 25 │ 13 │ │ │ │ │ Washington │ 16 │ 20½│ 15 │ │ │ │ │ 25½│ Wisconsin │ 9 │ │ │ 7½│ │ 6 │ 15¼│ │ Wyoming │ 20 │ 25 │ 15 │ │ │ │ 21 │ 35 │ 29 ───────────┴────────┴─────┴─────┴────────┴─────┴─────┴────────┴─────┴─────

───────────┬────────────────────┬─────────────────────────────────────── TERRITORIES│ │ AND STATES.│ WATER-WHITE OIL. │ PER GALLON. ───────────┼────────────────────┼─────────────────────────────────────── 〃 │ Competitive prices │ │ per gallon. │ 〃 ───────────┼────────┬─────┬─────┼────────┬───────┬───────────┬────────── │ │ │ │ │ │ │Difference 〃 │ │ │ │ │ │ │ per tank │ │ │ │ │ │ │car 6,000 │Barrels.│Case.│Bulk.│Highest.│Lowest.│Difference.│ gallons. ───────────┼────────┼─────┼─────┼────────┼───────┼───────────┼────────── Arizona │ │ │ │ 31 │ │ │ Arkansas │ │ │ │ 17 │ 7½│ 9½│ $570 Alabama │ 10¾│ │ │ 17 │ 6½│ 10½│ 630 California │ 13 │ 17½│ 11½│ 26½│ 11½│ 15 │ 900 Colorado │ │ │ │ 31 │ 7 │ 24 │ 1,440 Florida │ │ │ │ 18½│ 12 │ 6½│ 390 Georgia │ │ │ │ 17 │ 6½│ 10½│ 630 Idaho │ │ │ │ 30 │ 17 │ 13 │ 780 Illinois │ 7¾│ │ 3½│ 15 │ 5½│ 9½│ 570 Indiana │ 6½│ │ │ 12½│ 5 │ 7½│ 450 Iowa │ 10½│ │ 8 │ 12 │ 7 │ 5 │ 300 Kansas │ 9½│ │ │ 16½│ 8½│ 8 │ 480 Kentucky │ 8½│ │ │ 12 │ 6½│ 5½│ 330 Louisiana │ 7¾│ │ 7½│ 16 │ 7 │ 9 │ 540 Michigan │ 7½│ │ 3⅖│ 8½│ 3½│ 5 │ 300 Minnesota │ 8 │ │ 5½│ 13 │ 5 │ 8 │ 480 Mississippi│ 9½│ │ │ 15½│ 7¼│ 8¼│ 435 Missouri │ 7¾│ │ 5½│ 17 │ 5½│ 11½│ 690 Montana │ │ │ │ 33 │ 13 │ 20 │ 1,200 Nebraska │ 8½│ │ │ 27 │ 7½│ 19½│ 1,170 Nevada │ │ │ │ 37½│ │ │ New Mexico │ │ │ │ 32 │ 26 │ 6 │ 360 North │ │ │ │ │ │ │ Dakota │ 12¼│ │ 11¼│ 18 │ 11¼│ 6¾│ 405 Oregon │ │ 23 │ │ 24 │ 13 │ 11 │ 660 Oklahoma │ │ │ │ 17 │ 9½│ 7½│ 450 South │ │ │ │ │ │ │ Carolina │ 9 │ │ │ 13½│ 8 │ 5½│ 330 South │ │ │ │ │ │ │ Dakota │ │ │ 8 │ 12 │ 8 │ 4 │ 240 Tennessee │ 8½│ │ │ 17 │ 6 │ 11 │ 660 Texas │ 12 │ 16½│ 8 │ 33½│ 8 │ 25½│ 1,530 Utah │ │ │ │ 28 │ 13 │ 15 │ 900 Washington │ │ │ │ 25½│ 15 │ 10½│ 630 Wisconsin │ 7½│ │ 6 │ 15¼│ 6 │ 9¼│ 555 Wyoming │ 8 │ 16 │ 15 │ 35 │ 8 │ 27 │ 1,620 ───────────┴────────┴─────┴─────┴────────┴───────┴───────────┴──────────

PRIME WHITE OIL

The table shows that this grade of oil ranges in price as follows:

In barrels 6 to 25 cents per gallon
In cases 14 to 37½ cents per gallon
In bulk 3½ to 25 cents per gallon

WATER-WHITE OIL

This table also shows that this grade of oil ranges in price as follows:

In barrels 6½ to 30 cents per gallon
In cases 16 to 35 cents per gallon
In bulk 3½ to 29 cents per gallon

A comparison of these two grades of oil shows:

A difference of 24 cents per gallon on barrelled oil
A difference of 21 cents per gallon on case oil
A difference of 25½ cents per gallon on bulk oil

NUMBER 42 (See page 2069)
STANDARD OIL COMPANY’S PETITION FOR RELIEF AND INJUNCTION

[In the case of the Standard Oil Company _vs._ William C. Scofield
_et al._, in the Court of Common Pleas, Cuyahoga County, Ohio,
1880.]