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Show PIPE LIME II ISTHMUS Agrees to Fnrnish Oil to Government Gov-ernment at Ninety Cents a Barrel. WASHINGTON. Jan. 10 Secretary Taft has ro-com mended1 to the President that he sanction th isuo of a revocable license to tho Union Oil company of California t.-. construct and maintain g pipe line across the canal zone There were six applicants for such a right, but the enm-pin- named Is the only one which specified' speci-fied' tho price of oil If used by the government gov-ernment and whoso offer was otherwise sufficient!) definite and reasonable. It Is however, expressly provided thnt tho license li-cense shall n..t be exclusive, so that other companies may hereafter compote for the business May Use It for Power. For Its part the company undertakes to pay Jin per month, to be applied to school purposes In tho canal zone, and also to peipnlt the Government to draw upon Its pipe line at any point for oil at 90 centn a barrel. Secretary Taft. In his letter to the President, explains that this Is about equivalent for fuel purposes to Pocahontas coal at the pr,..ent COSl on tho Isthmus of M per ton, so that the oil vnns ho used for all power purposes If desired de-sired In the construction of the canal. Build Tank Steamers. As only refined oil Is at present carried over the' Panama railroad, the -ecr'tiry does not fonr that the transportation of crude oil by pipe would Injure the t.usi- i vs of the railroad. The roinpany under , taket to complete the line by August 1 next and to build In American shipyards suitable tank Steamers to supply. In addition ad-dition to ItS present large fleet the necr-s- ary means of conveying the oil to the pipe. |