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By G. W. Brownell, H. T. F. Lundberg, R. W. Pringle, K. I. Roulston

The rapid improvement of the airborne scintillometer and the perfection of its efficiency for counting low energy gamma radiation has made it possible to work out a technique to map in great detail the radiation pattern at the earth's surface. On such maps low radiation over certain areas appears to indicate the existence of oil accumulations, forming a pattern similar to that obtained by the geo-chemists. RADIOACTIVE analyses of samples from the surface of oil fields were carried out more than 10 years ago in Alberta by the alpha particle ioniza-tion chamber technique,' but large enough tracts could not be covered in these investigations to make possible any evaluation of the method as a means of oil exploration. Considerable interest has recently been revived, however, as a result of certain striking advances which have been made in the instrumentation available -for the measurement of radioactivity. It is the object of this paper to indicate the nature of these improvements in radiation technology and then to describe the attempts that have been made to interpret the radioactive patterns obtained in the course of airborne recordings with the new instruments. Since the survey can be carried out from the air and records can be accumulated over vast areas in a short time, the result may easily lend itself to statistical treatment. Areas have been surveyed in Alberta, British Columbia, Saskatchewan, Quebec, Texas, New Mexico, Nebraska, Colorado, Utah, and Montana. Producing fields in Alberta and West Texas have been flown over several times in different directions, Fig. 1. The operations were then extended into unknown territory and drill holes were put down on the anomalies which looked promising. The results from these drillings were encouraging and have given hopes for the development of an entirely new method of oil exploration. Any large scale method for the survey of radioactive anomalies must be based on the measurement of gamma rays, as beta and alpha rays have much too short a range to be of any significance. Thus the essential improvement which has made the present stage of this work attainable is the development of new highly sensitive detectors for gamma radiation. In the past the only detectors of any consequence that were available were the ionization chamber and the geiger counter, but both of these suffer from the defect that only a small proportion of the gamma rays passing through the counter are detected, possibly 0.1 to 0.2 pct. The recent development of the scintillation counter2,3 has completely transformed the situation and has had a considerable impact on many branches of nuclear technology. The detection of alpha particles in zinc sulphide screens by visual observation of the individual scintillations which these particles produce dates back to the early spinthariscope of Rutherford and Crookes, but the combined use of an appropriate scintillating phosphor and photomultiplier tube had to await the technical development of the latter many years later. With this development came the modern era of the scintillation counter and a knowledge of phosphors which have a large light output under the bombarding action of gamma radiation. Some of these phosphors are relatively dense and are capable of stopping a large proportion of the incident gamma radiation. As the sensitive region is the whole volume of the crystal, a very high detection efficiency, 50 pct or more, can be obtained for medium energy gamma rays. Scintillation counters for geological purposes were first developed in 19494-6 in an attempt to utilize this remarkable improvement in efficiency, which has the attractive consequence that only a small portion of the normal background of the counter is due to cosmic radiation. In 1949 tests were made in northern Saskatchewan by Lundberg Explorations Ltd. with portable scintillation counters which gave excellent results in the search for uranium and served to indicate unknown uranium deposits in areas previously closely surveyed with geiger counters. Portable scintillometers (registered in Canada) are now commercially available and in regular use,' and the adaptation of the instrument to radioactivity oil well logging has also been very successful.8 Initial attempts to measure radioactivity from aircraft with scintillation counters were made during this period in the same area and yielded most encouraging results. It would be appropriate to consider some specific requirements for airborne investigations. The essential problem to be met in the detection of any radioactive source is the necessity of obtaining a signal greater than the statistical fluctuations of the background counting rate for the instrument. It is possible to show that Nt>2k2 is the condition for detectability of a signal where N = average background counting rate for the detection. t = time constant of the counting rate meter, used to determine the average number of counts arriving in a certain predetermined time interval. N' = average source counting rate at the detector. k = N/N', and N>>N'. Sample values are given in Table I. Assume that the aircraft carrying the equipment is travelling at 120 mph, in which case it will cover 176 ft in 1 sec. Assume also, as a first approximation, that a point source target is in range when the air-

Jan 1, 1954

By Arthur Redfield

THE year 1923 was marked by slight progress in exploring and developing the petroleum resources assumed to exist in Central America. Actual drilling for oil took place only in Costa Rica and Panama. The Sinclair Consolidated Oil Corpn., through its subsidiary the Costa Rica Oil Corpn., drilled in southeastern Costa Rica.. Its, Panaman subsidiary is reported to have abandoned drilling in Bocas del Toro. The Texas Co. drilled in Chiriqui, and the Panama Gulf Co. in Garachiné, Province of Darién. No oil was obtained in any of these wells;' shows of gas were met in Costa Rica. Concession hunting continued during the year. A number of concessions, several of which appear to be purely speculative, were submitted for ratification. Some confusion has been caused by overlapping concessions and claims to oil lands, caused partly by the imperfection of existing maps. A conflict between the Sinclair, and Gulf companies in Panama has been compromised. The Amory concession in central Costa Rica, held by the British Controlled Oilfields, Ltd., was voided by decision of the arbitrator, Chief -Justice Taft. Geologic exploration took-place in Guatemala and in Panama. The chief contribution of the year to Central American geology was a description by Katherine Van Winkle Palmer of Lower Miocene foraminifera and mollusks from southeastern Costa Rica. A new petroleum law was promulgated in Panama.

Jan 3, 1924

By Nathan C. Rockwood

BASIC mineral commodities may be divided into two general classifications in their market or price characteristics. In one class are commodities sold on a world-wide basis, as gold, silver, nickel, asbestos and petroleum, and in the second are those produced and sold locally. Of course, no precise line of demarcation exists between the two; coal, for instance, belongs more or less in both. If there are enough producers of any commodity to prevent control of production by any one person or group, a free market then exists and the price in a buyer's market is determined by the most favored producer-meaning the producer, with the lowest production cost or the lowest cost of transportation, or both, to the particular market, or place of use. With minerals in the first classification, their high intrinsic value far outweighs the transportation cost and a uniform market price is accepted as an essential element in the economy of distribution. But with common minerals of small. intrinsic value and relatively high transportation costs, economists are reluctant to admit that a uniform price may also be an essential element in distribution.

Jan 1, 1940

By C. MeCulloch

A NOVEL practice in the bituminous coal industry is the accelerated method of burning coal to ash used in the laboratory of the Fidelity washery of the United Electric Coal Companies, Du Quoin, Ill. Development of this method has supplanted the tedious float-and-sink process for plant control at this plant. In normal operation the plant operators have available within thirty minutes the accurate ash percentage of the coal loaded in the railroad cars and can therefore make adjustments to maintain a practically uniform quality of washed coal, regardless of the variations in washery feed.

Jan 1, 1937

By A. O. HAYES

SYSTEMATIC methods of ore-finding are looked to the more as increasing production requires greater supplies of raw materials. Unrelenting search for new sources of supply is necessary, and all the skill of science must be displayed both in methods of discovering and recovering the minerals necessary to the demands of present-day life. To this end most national governments have some sort of a geo- logical survey and there is a growing understanding of the desirability for cooperation between federal and state or provincial organizations and also financial assistance, from state and private universities, mining companies, railroads and manufacturers. Such surveys are now being directed by well trained geologists selected from federal, state and university departments. Large-scale maps are being prepared and better geo- logical interpretation made, more thorough chemical and physical examinations are being made and original search is fostered, with the result that successful prospecting is better directed, new mining regions are more likely to be discovered, and the life of. old camps lengthened.

Jan 1, 1931

By G. St. J. Perrott

A study of certain fundamental characteristics of liquid-oxygen explosives has been made. A discussion is given of the factors affecting the life of the cartridge and the relation between explosive strength and oxygen content. The explosive properties of L.O.X. cartridges packed with a variety of lampblacks, gas blacks, and other materials have been experimentally determined by means of the ballistic pendulum, Bichel gage, and measurement of the rate of detonation. DURING the past year, the Bureau of Mines has carried on an investigation of liquid-oxygen explosives (L.O.X.) to supplement the work described in previous publications.' The present paper gives results of the first part of this work, which was a laboratory investigation of the properties of typical combustibles used in L.O.X., and the relation of these properties to the absorption and retention of oxygen by the explosives and their explosive characteristics. No attempt will be made to describe the development of liquid-oxygen explosives, because this phase of the subject has been well covered. The L.O.X. cartridge consists of a paper wrapper filled with an absorbent combustible material that is saturated with liquid oxygen by soaking it therein. After saturation, the cartridge is removed from the liquid and fired with fuse and cap, or electric detonator, in a manner

Jan 12, 1924

By H. B. FERNALD

THE first year to which the Revenue Act of 1936 has applied is now passed. It is appropriate to try to give some calm thought to the plan of Federal income taxation as now imposed and what it will mean to the business and industry of the country if this plan of taxation is continued unchanged. Whether or not we like to pay these taxes is beside the point. Taxes are high and may be expected to be high for many years. The important question is whether the taxes to be imposed will destroy or injure business enterprise and development, and, in so doing, lower the standards of employment, living, comfort, and welfare of our people. The power to tax is the power to destroy. That destruction may come suddenly as a cyclone, or slowly as dry rot. What, if any, features are there in the present plan of Federal income taxation that have these destructive tendencies? A few of the points follow that seem to call for consideration.

Jan 1, 1937

By Jerrold Marcus

The peninsula is roughly 700 miles long and 180 miles wide. The southern portion is the American-sponsored Republic of Korea and the northern half is the Soviet-promulgated People's Democratic Republic of Korea. The area of South Korea is almost 40,000 sq miles, about the size of the state of Maine, and contains a population estimated at 22.5 million. Prior to annexation by Japan in 1910, the Korean economy was based on a system of self-sufficient farming units, but with Japanese occupation it was geared to Japanese economy. Emphasis was placed on supplying raw materials for Japanese industry and food surpluses to help feed Japan, and on providing a connecting link with Manchuria, traditionally a major raw material source for Japan. Small metal refineries, ore processing, and semi-finished goods manufacturing units grew into existence in the northern part of Korea, where much of the electric power is generated. Under Japanese domination, the south remained essentially agricultural. Food productivity was increased, although manufacture of elementary consumer goods was stimulated for Japanese markets.

Apr 1, 1956

J. MURRAY RIDDELL, Chairman Guy N. BJORGE, Vice-chairman Alluvial Mining CLINTON BERNARD , H. R. NORSWORTHY BENERE H. GRANT O. B. PERRY

Jan 1, 1938

By Fred C. Bond

JUST four years ago, in March, 1930, Gilbert LaBine discovered the rich deposit of pitchblende and silver ore on the east shore of Great Bear Lake, 30 -miles south of the Arctic Circle, which brought a new mining district into being. His original discovery is now the property of Eldorado Gold Mines, Ltd., but other groups have been active. Vigorous prospecting has outlined a mineralized zone that extends at least 100 miles from north to south. In this area silver discoveries have been relatively common; pitchblende, as might be expected, has been harder to find, though a deposit has been located this spring nearly 100 miles south of Eldorado that may be of great importance.

Jan 1, 1934

By Lloyd B. Underwood

Dr. Gardener, in Chapter 2, has presented a comprehensive state-of-the- art review of site investigations For tunneling. Nearly all of the techniques he discussed will also be required for future site investigations. Therefore, this chapter will be devoted to a few rather new exploration techniques plus ideas for improving some of the present-day methods. In March 1962, the first symposium on "Remote Sensing of Environment" was held at the University of Michigan.l Since that time, four additional symposiums have been held at the same University. Also, the technical Literature has recently included a number of articles on remote sensing techniques. A recent one appeared in the February 1968 issue of Materials Research and Standards.Vt was entitled "Developments in Remote Sensing Applicable to Airborne Engineering Surveys of Soils and Rocks," and was written by Dana C. Parker. Mr. Parker predicts that aerial reconnaissance will someday supplant soil augers, rock drills, surface reconnaissance, and geophysical surveys as the engineer's primary means of obtaining information about soils and rocks. He states, "The engineer wishing to survey a route or a site or to locate rock and soils suitable for construction projects will be able to push some buttons in an airplane and record all the data required for determining the relevant conditions. In a short time after he returns to earth with his rolls of film and charts, he will be able to reduce and analyze the data by partially computerized techniques and to compile a concise and comprehensive engineering report that gives all the relevant information about rocks, soil, water, and vegetation in the area he surveyed. Most important he will feel as confident with his recommendations, derived primarily from image characteristics and spectral power distributions, as his predecessors did with recommendations based on more tangible evidence obtained from drill cores and surface reconnaissance." The airborne sensors for engineering surveys of soils and rocks are those that sample some electromagnetic property of the materials that com- prise the terrain and cover its surface. In addition to cameras, these include

Jan 1, 1970

By Frank W. Bowdish, T. M. Plouf

The purpose of this writing is to make available additional data, not previously published, on the zeta potential at various pH values of chrysocolla from the Inspiration mine, Arizona. Much research has been performed on chrysocolla, its physical properties, and its flotation, the results of which have not yielded a commercially acceptable flotation process for its recovery. The present data were collected and are presented to further advance chrysocolla research. Experimental For this investigation a carefully prepared sample of chrysocolla was used. This sample was obtained by crushing specimens from the Inspiration mine and picking out by hand the solid blue particles at -3+8 mesh, by grinding these to 10 mesh and repicking the +28 mesh sizes, by cleaning this product using magnetic separation, and by grinding and screening the material into fractions for final magnetic treatment on a Frantz Isodynamic Separator. All testing was done on the -100+150 mesh fraction. A chemical analysis was made on a portion of this fraction which was washed in dis-

Jan 1, 1974

By G. Ansell, J. Weertman

G. Ansell and J. Weertman (Rensselaer Polytechnic Institute and Northwestern University, respectively) —The great increase in creep strength that you found in your indium-glass composites is quite striking. You ruled out a decrease in the dislocation source density as an explanation of the reduced creep rates. Could you tell in greater detail why you feel this is an inadequate explanation of the phenomenon. It appears to us that it is a reasonable one. Consider the spacing between the glass spheres in your composites. It is of the order of 10-3 cm. The spacing between dislocations in a (single-phase) annealed metal with a dislocation density of the order of 106 to 107 cm per cm3 also is of the order of 10-3 cm. Therefore it is not reasonable to expect that the arrangement of the dislocation lines is the same in the composite material as it is in pure indium. If the dislocation arrangements are different the density of the dislocation sources likewise will be different. Another way of saying the same thing is the following. The presence of the glass spheres reduces one of the dimensions of the metal phase to 10-3 cm. Thus the metal phase, in effect, is equivalent to a metal whisker or a thin metal film. These are strong because they have so few dislocation sources within them. T. D. Gulden and J. C. Shyne (authors' reply)—It is to be expected that the arrangement of dislocations in the indium-glass composites would be quite different than that observed in annealed pure metals. The dislocations probably exist primarily as segments connecting the dispersed particles. These segments and discontinuities at the very large area of particle-metal interface could act as dislocation sources. For this reason it was considered unlikely that the very high observed creep strengths were due to a low density of dislocation sources. A more likely explanation is that the distance a dislocation can glide is limited by the interparticle spacing. The particles averaged about twenty in diam and were less than 10 µ apart in the 40 pet composite. It seems reasonable to assume that a dislocation loop in a volume of metal surrounded by these relatively large particles would not bow out around them but would be restricted to the region between particles. A general expression for creep rate is given by the product of the dislocation source density, the average rate at which loops are generated from a source, and the average area swept out by a loop times the Burgers vector magnitude. Assuming that the area swept out is limited by the interparticle spacing and the rate of generation of loops is controlled by the rate of climb of loops over second-phase particles, as suggested by Ansel and Weert-men,9 a calculation of the dislocation source density may be made from the experimentally observed creep rates. The result comes out 10" to 10" per cm3 which seems reasonable in view of the assumptions involved. Thus it is concluded that the anomalously low creep rates that were observed were due not to a low dislocation source density but rather to a limitation on the area swept out by each dislocation loop.

Jan 1, 1964

By A. C. D. Chaklader, Ashok K. Kakar

The basic density equation originally dericed ' to predict the increase in density of a compact of spherical particles with the progressive deformation at the points of contact has been further modified to include the yield strength of the material. This has been done by assuming that the contact areas grow to stable sizes under a fixed stress which is equal to three times the yield strength. The final equation has the form: where Do and D me the initial and final bulk densities of the compact, u is the applied pressure, and Y is the yield strength of the material. This equation was tested with the data obtained on spheres of lead, K-Monel, and sapphire. The calculated yield strength t~alues for lead and sapphire are within the range of values reported in the literature. A few of the earliest hot pressing models proposed to explain the mechanism by Murray, Livey, and williams2 and then by McClelland3 are based on a plastic flow mechanism. However, more recent investigations suggest that the overall densification process is a combination of several mechanisms, such as particle rearrangement, fragmentation, plastic flow, and stress-enhanced diffusional creep. While fragmentation and particle rearrangement are considered to be responsible for the densification in the early stages,"475 it has been concluded that the final stages of hot pressing are controlled by stress-enhanced diffusional creep.516 The manner in which the densification takes place, i.e., by fragmentation, particle rearrangement, plastic flow, or stress-enhanced diffusional creep, would depend upon the type of material, the temperature, and the stress level used during the hot-pressing experiments. Metal compacts can be expected to have a much greater contribution from plastic flow than ceramic oxides. Also, plastic flow would be a significant contributing factor to densification at high temperatures and high stresses. Most of these works, directed towards elucidation of densification mechanism, have dealt with kinetics of the process. The results of most of the authors vary from one another and they have proposed either new empirical or semiempirical equations to fit their data. The densification rate was found to vary with the type of the powder, shape and size of the powder, initial packing density of the compact, and a few other factors such as rate of heating, pressure, and so forth. Beyond the initial stages, the densification process has been considered to be as time-dependent flow, controlled by a diffusional process, e.g., Nabarro-Herring creep. Palm our, Bradley, and johnson' have attempted to use modified creep rate equations to interpret the data of densification under hot-pressing conditions. Beyond the initial stages, however, the densification would be controlled by a process depending upon the temperature, pressure, and size of the powders. It is the authors' belief that such densification cannot be exclusively controlled by a single process and so attempts should be made to study some observable phenomenon like microstructure, yield strength, and so forth. The emphasis of this work has been toward studying the densification problem from a more fundamental point of view. Some of the principal variables, like initial packing density, mode of packing, and size of the powders, have been controlled to a great extent. The total strain produced on pressure application (instantaneous) in such a case can be considered to be due to plastic and elastic deformation. The elastic component of the strain can be determined by decreasing the load to the initial value. The strain remaining then can be correlated with the contact areas produced by deformation and the corresponding applied load. In a previous paper,' the possible deformation behavior of spheres in a compact has been theoretically analyzed and experimentally tested. The change in contact area radius a relative to the particle radius R was related to the bulk density and the bulk strain for simple and systematic modes of packing. Tt was found that a density equation relating the above parameters can be represented by: where D and Do are the bulk densities of the compact at any value of a/R and a/R = 0, respectively. This basic equation should hold for any material as it was derived from geometrical considerations alone. An attempt has been made in this work to include the yield strength in the above density equation, so that a knowledge of the properties of any material can be used in predicting the densification behavior during the hot-pressing process. THEORETICAL CONSIDERATTONS The deformation of two spheres in contact under a static load can be compared to the deformation occurring between a hard spherical indentor and the flat face of a softer metal. Tt has been shown theoretically by both ~encky~ and lshlinskyg and experimentally by ~abor" that, for a material incapable of appreciable work hardening, the mean pressure required to produce plastic yielding (for deformation occurring between flat face and a hemispherical indentor) is approximately equal to three times the elastic limit, Y, of the material (in tension or compression experiments). Tabor has further observed that the same relationship is valid in the case of work-hardening materials, if the elastic limit at the edge of the indenta-

Jan 1, 1969

[America,-Dear, G. C. Anniston.-Klugh, B. G. Auburn. *Poor, R. S. Bankhead.-Armstrong, W. D. Bessemer.-Creveling, J. G. Lindstrom, W. A. McKenzie, W. C. Mitchell, F. R. Birmingham.-Abbott, C. E. Armstrong, G. R. Austin, W. W., Jr. Ball, T. L. Beard, A. H. Benjamin, F. S. Blackburn, E. C. Blair, A. J. Blair, C. S. Blair. H. W.]

Jan 1, 1946

NEW YORK SECTION ALLEN H. ROGERS, Chairman, H. C. PARMELEE, Vice-chairman, FOREST RUTHERFORD, Vice-chairman, W. S. DICKSON, Secretary, 71 Broadway, New York, N. Y. J. E. JOHNSON, JR. . F. T. RUBIDGE, Treasurer, P. G. SPILSBURY. The annual meeting of the New York Section, for the election of officers and other business, was held at the Machinery Club on May 23,

Jan 8, 1918

By F. G. Miller, E. B. Wilson

In 1972, coal mine productivity was in steady decline and labor and maintenance costs were spiralling upward. Yet, despite this sad state of affairs, nowhere in the US at that time was there a comprehensive and coordinated coal research and development plan in the offing. The Bureau of Mines had not yet been charged with such a responsibility, and industry was content to rely on machinery manufacturers for innovations. It was during this period that Bethlehem Steel Corp. determined that a new approach to coal mining research was needed for the industry as well as for the company itself. After studying Bethlehem's own mining practices, the state-of-the-art of mining research elsewhere, and development work by manufacturers, a comprehensive research package was presented to company management in late 1972. The ideas and experience of many operating and management personnel in the company contributed to the formulation of the final plan as approved.

Jan 10, 1976

By Samuel H. Dolbear

NOT WITHSTANDING the extremely low ebb of business activity, the nonmetallic industries have fared somewhat better than some other branches of mining. The average price level in nonmetallics, although far from satisfactory, has resisted any cataclysmic fall such as has been suffered by copper and other metals. Stocks, also, though too abundant, represent no corresponding overhang of the market, which should result, in some branches, in a more rapid recovery. Research work has continued in some industries with interesting developments.

Jan 1, 1933

By R. G. Knickerbocker

A STURDY and consistent expansion of the metal industry occurred in 1947 exemplified by an increase of approximately 30 per cent in steel consumption over 1946. For this major reason, ferroalloy metals have seen their most useful and important peace-time year. The current domestic rate of consumption of high-grade ferroalloy ores, together with added consumption of new foreign producers as well as for eign nationals' restrictions on high-grade exports, makes very evident the increasing difficulties of obtaining sufficient high-grade ores. This accentuates the need for new and less expensive methods of production of ferro-alloy metals of higher purity from lower-grade domestic resources. As an important factor in preparedness, procurement of these high-grade, -critical ferroalloy minerals and metals for our nation's stock piles is a most important task. Also, this stock-piling can be the means of supplying incentive for the industrial development of the new metallurgical processes and plants necessary for the recovery of ferroalloy metals from our domestic low-grade deposits.

Jan 1, 1948

By L. D. Clark

Pay-out, the ratio of capital expenditure to annual cash return can be very revealing when employed to gage the merits of a proposed mining venture. It is a quantity, numerically but not physically equal to a factor, by which cash return may be discounted to equal required investment. The fewer the pay-out years, the greater the average annual earning power of the project. Considerable material has been written in the past about the most important and difficult problem mining management faces in evaluation of a property: the optimum production rate for the venture. What daily capacity should be adopted for the proposed operation that it may be the most rewarding to those underwriting it? H.C. Hoover has said, "The most important objective is the least cost per ton mined; and minimum working costs can only be gained by the most intensive production." Theoretically and practically, the quicker the ore is removed, the more profitable should be the venture because of the saving in fixed charges, the consequent lower unit costs and the interest unearned by the profit from the unmined ore. Yet, such performance will be tempered by policy and a restraint imposed by the ratio of capital expenditure to annual cash return. * The 'Annual net profit after taxes but including depreciation and depletion allowances. former will be based upon an analysis of the economic climate anticipated, with its many ramifications including the demand for the product, prices, tax laws, the conduct of labor and related wage scales. The variables and intangibles involved in estimating the optimum production rate for a mine do not readily lend themselves to mathematical relationships or equations and the problem can become complex indeed. The more readily applicable and relatively faster appraisal method will be used which, in addition to being reasonably adequate in most cases, will serve as a guide, should a more expanded and detailed estimate be desired. The first question is what is company policy with respect to the rate of investment return? This will depend on that significant period of time referred to as the pay-out, which can be defined as the estimated interval during which capital investment is returned through application of annual cash return to its recovery. Expressed another way, it is the ratio of capital expenditure to the annual cash return. For example, if the capital investment is $C and the annual cash return is $A (after Federal tax), then $C/$A = the pay-out period in years. That is to say, if $C = $1,500,000 and $A = $214,000, then which is the mathematical expression for the period of time it takes to recover the funds originally invested in a mining enterprise. The relationship yp = $C/$A can be useful — an expression which requires only the significant tern yp to be fixed; in other words, the long range investment policy. For what is the pay-out period but an expression of that policy in terms of the speed, within practical limits, with which an individual or company may want to recover capital expenditure? A policy by which pay-out will be fixed is imperative. This ratio must lie within relatively narrow limits governed by what is economically feasible. It cannot be too low, rendering the ratio impractical or absurd, nor too great, delaying the return of capital for reinvestment beyond a commensurate interval. What pay-out will govern this policy? Federal corporate taxes would seem to present the best measure. Consider mining in Canada where new mines are exempt from Federal income tax for 3½ yr from date of first production. This exemption expressly allows The Act states: "A corporation . . . i s not required to include the profits . . . for the period of 36 months commencing with the day on which the mine came into production in reasonable commercial quantites." a company to recover capital expenditure during the early stages of production. With such an incentive, it is logical to strive for as much capital redemption as possible during this period. Thus, 3½ yr would be a major contribution to the pay-out in Canada. Furthermore, it generally takes from 1½ to 3 yr to develop

Jan 1, 1963