A TANK-STORAGE TERMINAL is a group of tanks located on what is commonly called a tank form. Its location should be at a strategic point on water, rail, and main highways, to provide for the receipt, storage, and ultimate distribution of liquid commodities. To indicate the economic justification for a terminal's existence, let us take, for example, a landlocked refinery located at such a point as Tulsa, Okla., which desires to export material and bring the material from the refinery to the Gulf Coast via tankcar, store it therein, and ultimately, after accumulation of the cargo, pump it to the boat for movement to foreign ports. Conversely, oils originating in foreign countries can be brought in to our terminal, stored, and then distributed to the consumer's centers within the interior of the United States. With the mounting costs of construction even a large corporation hesitates to erect tank-storage facilities for the commodities that they may have to accumulate or distribute. That is where GATST enters the picture. We can handle their material in a majority of cases at a lower cost than they can (without any investment on their part), not because we are better operators or have any secret methods but because we will handle a hundred times more material than their single operation. We will use the same dock, the same crew, the same watchmen, the same boilers, the same pumps, sometimes the same pipe line for a number of customers, whereas they have to install a separate unit for their own product. Terminals are highly mechanized. The initial investment is huge, and the break-even point is high, depending on property costs, variety of tank sizes, and the like. After that, additional tankage is very profitable, as the additional operating costs are small, and the main cost is the investment in tanks, pumps, roads, pipe lines and loading racks. Most terminals have tanks ranging in size from 2,500 to 150,000 barrels or 100,000 to 6 million gallons. The larger-size tanks are in petroleum service and the smallersize tanks in the chemical, petrochemical, and lube-oil services. Materials are received by tankcar, tank truck, barge, tank vessel, and pipe line. and shipped out in the same manner. We started our first terminal in 1926 at Goodhope, La., on the Mississippi River, about 25 miles north of New Orleans, with about 8 million gallons of storage. As of January 1954, we have six terminals with a capacity of approximately 352 million gallons of storage, all on deep water, except the Chicago Terminal, which is on the Chicago Sanitary Ship Channel, a part of the Illinois-Mississippi Waterway System. On May 1, 1954, this was increased to about 430 million gallons of storage. We are currently building about 33 million gallons of storage, to be completed within the next three months, giving us a total of approximately 463 million gallons of storage. The terminal is usually notified three or four days in advance of the arrival of a tanker or barge. After the vessel has tied up to the dock, the gager samples each tank on the vessel, and takes the samples to the laboratory, usually on our premises, where they are analyzed to make certain that there has been no contamination during the trip. The samples are then approved by the chemist, and the gager and pumper are notified. Then the cargo hose is connected to the vessel. The material is then pumped through suitable lines to the storage tank in the terminal that has been selected to receive the material. After delivery the tanks are gaged to determine the outturn received against the quantity invoiced by shipper. This usually checks out within one half of 1%. When instructions are received to ship the material, it is loaded out to tankcar, barge, or tank truck. A sample is taken from the tankcar or tank truck or barge, and usually the sample is approved before the shipping clerk issues the bill of lading. The sample is retained for at least thirty days. Among the products we handle are all types of petroleum, vegetable oils, fish oils, benzol, toluol, xylol, molasses, caustic soda, methanol, glycols, acetates, alcohol, hydrochloric acid, carbon tetrachloride, hexanol, various solvents, lube oils. Many of the above products are blended by us to the specifications of the customers. We are working on a number of deals with petroleum and chemical companies which will necessitate a further expansion program on our part in order to take care of the requirements of these companies.