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By R. A. Greenkorn

This project originated in a practical problem—we needed five tracers that could be used together to locate flow paths in a pilot flood. While tracers for subsurface liquids have been used since the turn of the century,1-15 none of those reported in the literature appeared to be either consistent or quantitative enough for our purposes. Most were used in field systems without controlled experiments to determine the accuracy and precision of analysis, and many were tracers that could not be used collectively. The ideal tracer, of course, would follow the fiuid of interest exactly, traveling at the same velocity as the fluid front. But the ideal is impractical to attain because adsorption-desorption effects cause the tracer to lag behind the front; these effects, plus diffusion-dispersion effects, cause the tracer front to spread more than the fluid front. Thus, our objective was not to locate a tracer that would be ideal for all circumstances but rather, to find one that would approximately follow the fluid, or one that under controlled conditions could be corrected to calculate the movement of the fluid front. We considered tracers satisfactory—(1) if they were easy to analyze; (2) if their breakthrough-elution curves were not too different from those for the chloride ion, a tracer believed to follow the fluid front closely; and (3) if we could calculate from the curves a material balance, at 1.25-PV (pore volume) injected, within 5 per cent of that calculated from chloride curves. Of a possible 35 materials, we selected 13 tracers that could be quickly and easily identified and whose analysis was claimed to be accurate within 5 per cent. Only one of these, tritiated water, was a radioactive tracer. Radioactive tracers are easy to detect even in small quantities, but they require special handling and special equipment. Also, those that can be used together are limited because special equipment is required to separate emissions from the various tracers. Two of the original 13 tracers were eliminated in static tests to determine how accurately and precisely they could be analyzed, and to check on gross adsorption. The remaining 11 were flowed through a 9-ft linear sandstone model, and breakthrough-elution curves were obtained. Finally, three tracers were field-tested as breakthrough tracers. These tests are described in the following sections. The 13 tracers considered in these experiments were EDTA (ethylene diamine tetra acetic acid), fluo-rescein, picric acid, salicylic acid and ammonium, boron (as borate), bromide, dichromate, iodide, nitrate and thiocyanate ions, plus chloride ion and tritiated water. All but the chloride ion and tritiated water were subjected to static sand tests to eliminate the tracers that could not be analyzed quickly and accurately and to eliminate those that showed excessive adsorption. All but two of the tracers, EDTA and salicylic acid, qualified for flow tests on this basis. The procedures used in the static tests (see Appendix A for analytical details) were as follows. Each tracer (in the amount shown in Table 1) was dissolved in 1,000 ml of water. Then, 800 ml of this solution was added to 500 gm of sand, and the remaining 200 ml was reserved as a control standard. The sand-tracer mixture was agitated once a day over a 10-week period, and during this period we analyzed five duplicate samples from this mixture, along with five duplicate samples from the control solution. From the control-sample analyses, we constructed a control chart on which the sand-tracer analysis results were plotted. The control chart, and its use to determine accuracy and precision of analytical results, as well as the amount of adsorption, is described in Appendix B. The results of the static tests are summarized in Table 1, which lists the concentration c (concentration at time t) divided by c, (initial concentration). If there was no adsorption, c/c, = 1. The acceptable deviation from this value varied from tracer to tracer, depending upon the limits of analytical precision established for the different tracers. The best results were obtained with boron, bromide and dichromate, with all values falling within limits of accuracy and precision. Ammonium, iodide, nitrate and picric acid also were satisfactory, although the ammonium results were erratic. Flourescein and thiocyanate were unsatisfactory ini-

By G. A. Vissac

The drying of fine coal involves special techniques, which are discussed and analyzed. Types of dryers employing these techniques are described. Calculations are presented for new methods of deal ing with the entrained dust that is always present in fine coal drying operations.

Jan 10, 1953

By David A. Summers, John Corwine, Li-King Chen

The results from fracturing plexiglas beams are combined in eight existing equations to determine the surface energy of the material. The reliability of each equation is tested, and the equation in use to determine fracture toughness is found to be the most exact. This equation is then used in determination of the surface energy of Barre Granite.

Jan 1, 1971

By Milton R. Pickus, Earl R. Parker

THE modern theories of creep¹-4 in general have been based upon the concept of generation and migration of dislocations, with the generation process normally assumed to be rate controlling. The theories are generally deficient in that they fail to take into account many factors that are known to influence creep. The influence of the state of the surface of the test specimen has been almost completely overlooked; yet the present report shows that the nature of the surface may, in certain cases, govern the creep characteristics of a specimen. In the period since Taylor" applied the concept of dislocations to a study of metals, a school of thought has developed that closely relates the plastic deformation of metals to the generation and migration of dislocations through the crystal lattice. It might be expected that the thermal energy required for the generation of a dislocation would be different from that for migration of the dislocation through the lattice. Furthermore, the activation energy for generation would be expected to vary for different parts of the solid metal. It has been predicted that dislocations would be generated most easily at external surfaces, but could also be activated at certain internal surfaces such as grain or phase boundaries. Within the body of the metal a range of values for the activation energy might be expected because of different degrees of disorder at such regions as grain boundaries, impurities, and second-phase particles. The particular value of the activation energy that was rate determining could then depend on the specific conditions of a test. If, for example, the surface atoms were by some means constrained, the generation of dislocations in the body of the metal might become the important factor. On the other hand, other conditions may favor generation at the surface. It is possible then that the creep behavior may not be completely determined by the inherent properties of the metal. Even the environment in which a test is carried out could have a significant effect. In fact it is conceivable that in order to obtain the maximum creep resistance from a given alloy, the surface atoms must be so constrained that the activation energy for generating dislocations on the surface is at least equal to that required for generation in the body of the metal. On the basis of such considerations, and in view of the limited number of publications discussing this subject, it seemed that an investigation of the influence of the state of the surface on creep might yield information of both theoretical and engineering interest. Experiments on single crystals, demonstrating a variation in the mechanical properties due to alterations in the surface layer, have been reported by several investigators.6-13 he results of these experiments have been briefly summarized;14 consequently, the earlier work will not be reviewed here. As an example of these findings the observations of Cottrell and Gibbons may be cited. They reported the critical shear stress of a lightly oxidized cadmium single crystal is greater by a factor of 2½ than a specimen with a clean surface. Materials and Methods Single crystals M in. in diam and 8 in. long were prepared from Horse Head Special zinc, melted under an atmosphere of helium in a large pyrex test tube, and drawn up into a long ½ in. diam pyrex tube by means of a vacuum pump. The cast zinc rods thus produced were cut into convenient lengths and sealed in evacuated pyrex tubes. Single crystals were grown by gradual solidification of the remelted rods. Cleaving the ends of the single crystal specimens chilled by liquid nitrogen proved a simple method for determining orientations from the exposed basal plane from the markings left on the cleaved surface that gave the slip directions with sufficient accuracy for the experimental work. The specimens chosen for the experiments were those having the angle between the basal plane and the specimen axis within the range of 15" to 65". Since zinc single crystals are quite delicate, it was necessary to devise an appropriate method of gripping the specimens in order to suspend them in the furnace and apply the load. Stainless steel collars were prepared having an inside taper, the smaller end of the taper being of such a size that the specimen could just pass through freely. The tapered hole did not extend the full length of the collar; a sufficient thickness of metal remained so that a hook could be attached to provide a means of applying the load and suspending the specimen. One of the collars was slipped over the upper end of a specimen which was supported vertically in a steel jig. The collar was then heated electrically until the end of the crystal melted and filled the collar with molten zinc. At this point the application of heat was discontinued, whereupon the molten zinc quickly solidified, due to the chilling effect of the jig. The specimen was then inverted and the second collar applied in a similar manner. The jig served several purposes: limiting the length of specimen that was melted, providing excellent alignment of the collars with respect to the specimen axis, and protecting the specimen from mechanical damage. Once the specimen was suspended in the furnace and loaded, it was desired to accomplish the surface treatment with a minimum of disturbance of the specimen. Around the specimen was a long pyrex tube, the upper portion of which was approximately 1 in. in diam, and in it was a copper coil of such a diameter to fit snugly against the tube. A specimen, approximately ½ in. in diam and 4 in. long, was suspended by means of a stainless steel rod so that it hung within the copper coil. The lower portion of the glass tube was approximately ¼ in. in diarn, and passing through it was a 5/32 in. diam stainless steel rod which hung from the lower specimen collar. This portion of the glass tube and the stainless steel rod extended through the bottom of the furnace. A T-connector, with suitable packing, was attached to the lower end of the stainless rod to provide a water-

Jan 1, 1952

By R. W. Heckel, R. A. Tanzilli

ANALYTICAL results have previously been presented for the diffusion-controlled solution of a second phase in a finite medium for planar, cylindrical, and spherical geometries.' These results were obtained by numerical methods using digital computer techniques and are applicable not only to the stage of the problem where the unstable phase shrinks to zero size, but also the subsequent stage where the concentration gradients in the matrix phase become negligible (essentially complete homogenization). It is anticipated that the results of such an analysis may be of use to those workers who are interested in the processes

Jan 1, 1970

By J. R. Thoenen

THE preper classification of mining methods has received the earnest study of many mining engineers and has resulted in much technical controversy, depending no doubt upon the point from which classification is viewed or the use to which it is put. So far as the writer is aware, the discussion has invariably centered around the classification of underground mining methods, and only superficial attention has been directed to surface methods. Volume 72, page 10, of the Institute Transactions, presents such a classification, sponsored by the Mining Methods Committee of the Institute. A similar classification by Prof. Hugh P. Nicholson appeared in Mining and Metallurgy in October, 1934. The two classifications are quite different in their treatment of underground methods but are identical in classifying surface methods, although Professor Nicholson does suggest possible further divisions for surface mining and admits that such subdivision is more difficult than appears at first. Surface subdivisions as given by these two authorities are as follows, showing that in spite of rearrangement the two classifications are identical: From his experience of many years in the study and operation of both underground and surface metal and nonmetallic mines, the writer does

Jan 1, 1942

By J. R. Thoenen

THE preper classification of mining methods has received the earnest study of many mining engineers and has resulted in much technical controversy, depending no doubt upon the point from which classification is viewed or the use to which it is put. So far as the writer is aware, the discussion has invariably centered around the classification of underground mining methods, and only superficial attention has been directed to surface methods. Volume 72, page 10, of the Institute Transactions, presents such a classification, sponsored by the Mining Methods Committee of the Institute. A similar classification by Prof. Hugh P. Nicholson appeared in Mining and Metallurgy in October, 1934. The two classifications are quite different in their treatment of underground methods but are identical in classifying surface methods, although Professor Nicholson does suggest possible further divisions for surface mining and admits that such subdivision is more difficult than appears at first. Surface subdivisions as given by these two authorities are as follows, showing that in spite of rearrangement the two classifications are identical: From his experience of many years in the study and operation of both underground and surface metal and nonmetallic mines, the writer does

Jan 1, 1942

By C. K. Leith, W. J. Mead

One of the most significant developments in the iron industry in recent years has been the discovery and opening of enormous reserves of low-grade ore in eastern and northeastern Cuba. The two principal fields are the Mayari and the Moa, situated on Nipe bag, in the Province of Oriente. A less well-known district of the same type is that of Baracoa, at the east of the island, and another is in Csmaguey Province in central Cuba. In the comprehensive estimates of the iron-ore reserves of the world, published during the summer of 1910 by the International Geological Congress in Sweden,' these Cuban deposits are estimated at about 2,000,000,000 tons. Certain it is that the reserve is a large one. The Spanish-American Iron Co., the Juragua Iron Co. (Bethlehem Steel Co.), the U. S. Steel Corporation, and others have been active in this exploration. The Spanish-American Iron Co. has established a port for the handling of these ores at Felton, has built a railway 16 miles to the ore-fields, and has operied up deposits for steam-shovel mining. Its expenditures have reached an aggregate of about $6,000,000 in preparation for the handling of these ores. Shipment of the ore to Sparrow's Point, Md., has begun and may be expected to rise to a considerable amount in the near future.

Jan 1, 1912

By H. K. Livingston

THE first person to investigate intensively the vast field of surface phenomena and capillary effects was the eminent English scientist, Lord Rayleigh (1842-1919), who laid down most of the fundamentals of this subject. This work was greatly amplified by Irving Langmuir,1 who, in connection with research for the General Electric Co., spent 25 years on the study of the surface chemistry of films, finally receiving the Nobel Prize in Chemistry for 1932 in recognition of his work. At present, William Harkins,2 of the University of Chicago, is the world's foremost authority on surface-tension measurement and his independent work, when combined with that of Langmuir, resulted in the orientation con-cept of solubility and surface activity, which is now an important funda-mental in chemistry. The theory laid down by these men was first applied to practical considerations regarding petroleum reservoirs by F. E. Bartell,3 of the University of Michigan, in connection with an American Petroleum Institute research grant. The latest and most advanced application of Bartell's work is contained in an article published in 1935 by Allen Garrison,4 of Rice Institute, in which he relates Bartell's measurements to the ratio of oil to water produced by wells and shows the types of petroleum reservoirs where the effects studied by Bartell are significant. This article is intended as a minor extension of such work.

Jan 1, 1938

By H. H. Lowry

Science attracts the attention and interest of an individual or an industry in general only in proportion to the apparent direct application to its immediate welfare or benefit. Engineering accomplishments, as aphlied science, therefore receive more recognition than the scientific discoveries on which they are based. Even self-evident truth needs endless repetition before recognition: engineering as applied science cannot advance beyond the science on which it is founded. Scientific research, and discovery, is sometimes forced by the limitations recognized by those active in its development for the use of society and industry and sometimes results from an apparently superficially illogical curiosity about natural phenomena. Research has received inadequate support except in industries born in the laboratory, the chemical and electrical industries, from which many lessons might well be drawn by their elder associates. The rapid growth of these industries has been largely due to close cooperation of scientists and engineers. Most rapid advance is made when the research worker and the engineer keep in close touch with each other's ideas and problems. Many of the developments of modern industry are based on discoveries buried for years in scientific journals because the "time was not ripe" at their discovery. The situation with regard to utilization of coal is quite the oppositre. The fundamental facts in regard to the scientific aspects of the problem of developing the energy from coal are scarcely known. The engineer, without much scientific cooperation, has accomplished much in increasing the number of kilowatt-hours per pound of coal from 0.31 in 1919 to 0.69 in 1934, in increasing the 1000 gross ton-miles of freight hauled from 12.2 to 16.4 per ton of coal in the same period, in fuel economy in production of coke, and in developing the production of motor fuel in Germany and England by hydrogenation of coal. This lack of scientific research on the utilization of our most important natural resource, coal, has been due undoubtedly in large part to the reluctance of investigators to study the interrelationships involved in the complicated processes in which coal is used. These complexities are made

Jan 1, 1936

By H. H. Lowry

Science attracts the attention and interest of an individual or an industry in general only in proportion to the apparent direct application to its immediate welfare or benefit. Engineering accomplishments, as aphlied science, therefore receive more recognition than the scientific discoveries on which they are based. Even self-evident truth needs endless repetition before recognition: engineering as applied science cannot advance beyond the science on which it is founded. Scientific research, and discovery, is sometimes forced by the limitations recognized by those active in its development for the use of society and industry and sometimes results from an apparently superficially illogical curiosity about natural phenomena. Research has received inadequate support except in industries born in the laboratory, the chemical and electrical industries, from which many lessons might well be drawn by their elder associates. The rapid growth of these industries has been largely due to close cooperation of scientists and engineers. Most rapid advance is made when the research worker and the engineer keep in close touch with each other's ideas and problems. Many of the developments of modern industry are based on discoveries buried for years in scientific journals because the "time was not ripe" at their discovery. The situation with regard to utilization of coal is quite the oppositre. The fundamental facts in regard to the scientific aspects of the problem of developing the energy from coal are scarcely known. The engineer, without much scientific cooperation, has accomplished much in increasing the number of kilowatt-hours per pound of coal from 0.31 in 1919 to 0.69 in 1934, in increasing the 1000 gross ton-miles of freight hauled from 12.2 to 16.4 per ton of coal in the same period, in fuel economy in production of coke, and in developing the production of motor fuel in Germany and England by hydrogenation of coal. This lack of scientific research on the utilization of our most important natural resource, coal, has been due undoubtedly in large part to the reluctance of investigators to study the interrelationships involved in the complicated processes in which coal is used. These complexities are made

Jan 1, 1936

Just three years after researchers announced its development, Dravo is putting the finishing touches on a new $60-million Thiosorhic lime mine/kiln complex near Maysville, Ky. Electric utilities in western Pennsylvania and Ohio have already signed long-term contracts for over three-quarters of the projected 907 000-t/v (1-million-stpy) production. Thiosorbic lime, a flue gas desulfurizing agent, proved in industrial testing that at high emission levels (greater than 3000ppm SO2) it could be twice as effective in SO2 capture as conventional lime, while eliminating the major problem of scaling and plugging of scrubber equipment.

Jan 4, 1977

By Peter Kos

Since advances in the understanding of gravity thickening reflects the development of knowledge about suspensions themselves, the paper starts with the discussion of flocculent and nonflocculent suspensions. The properties of flocculent suspensions and their behavior in different concentration regions (zone settling, channelling, compression) are defined and discussed. In the main portion of the paper, the behavior of flocculent and nonflocculent suspensions during batch as well as continuous thickening, is presented, together with a brief review of the gravity thickening theories and sizing methods. The classical as well as the most recently developed methods are presented and their use and limitations are discussed.

Jan 1, 1980

By V. S. Rood, J. A. Norden

The general system of workings at the Utah-Apex is similar to that found in many of the western metalliferous mines. There is a vertical three-compartment shaft extcnding to the surface, from which the various levels have been driven to the orebodies. The 1000-ft. (305-m.) level, about 3/4 mile long, was driven as a haulage and drain adit. Geology The formation is a flat north-dipping series of alternating limestone and quartzite beds. Extensive north-south faulting and fissuring have taken place, resulting in the formation of large replacement orebodies in the crushed zones in the limestone. The orebodies are irregular in shape and size, but follow closely the trend of the mineralizing fissures. The ore consists of galena, pyrite, sphalerite and small values in silver and gold. Large masses of non-commercial pyrite are frequently found in or adjacent to the orebodies, and more or less pyrite is found for some distance in the walls of the orebodies. Lenticular bodies of a black pyritic shale also occur in the zones where extensive faulting has taken place. Mining Methods and Condition of Workings Geological conditions, mentioned before, have made the ground extremely heavy. In mining above the 1000-ft. level, square-set and filling methods were used, but not altogether successfully. The crushing of timbers extended even into the filled portions of the stopes. The filling material itself, consisting of limestone, shale, and pyrite, possessed swelling qualities which added to the difficulty of maintaining

Jan 1, 1920

By C. P. Proctor, J. T. Crawford

TROUGH washers were among the earliest methods used for concentrating ores; they are referred to by Agricola about the middle of the sixteenth century as already being used while the hand- operated jigging sieve had only recently come into use. For cleaning coal the trough washer apparently was first used in France and Belgium .about 1841. The early trough washers were intermittent and the refuse at least was shoveled out by hand. The invention of a continuous jig washer, by a Frenchman, Berard, in 1848, acted as a stimulus to coal washings in jigs and retarded progress in trough washing' in the nineteenth century. Chapman and Mott describe a number of trough washers developed in England and on the Continent from 1850 to 1900, such as the Bell and Ramsay, Ramsay, Bell and Green, Wunderlich, Scaife, McLellan; Lodge, Elliott, Blackett, and Murton. , The later of these removed the refuse mechanically, either intermittently or continuously, but in ways that interfered with stratification. THE RHEOLAVEUR A Belgian engineer, Antoine France, is responsible for the development of means to remove refuse materials continuously from a trough washer while preserving stratification and preventing the loss of coal with the refuse. The methods and equipment devised, which have become known throughout the world as Rheolaveur, were initiated at the St. Nicholas mine near Liége, Belgium, about 1912. This installation consisted of two units to wash 20 to 8-mm. (13/15 to 5/16 in.) and 8-mm. to 0 (5/16-in. to 0), each having only two superimposed inclined troughs. The first few "Rheo" boxes on the top trough removed refuse directly and the remaining Rheo boxes discharged impure refuse to the lower trough for rewashing. On the lower trough the first few boxes removed refuse and the following boxes removed a middling product

Jan 1, 1943

By F. D. Rosi, C. H. Mathews

THE plastic properties of face-centered cubic metals below room temperature present a field of investigation which has not been extensively ex-plored. The work by Schmid and Boas1 has demonstrated the importance of temperature upon such properties as strain hardening and critical resolved shear stress. The work by Yamaguchi2 upon the shear stress as related to the number of slip bands accentuates the necessity for further experiments of a similar nature. The approach to a mechanical equation of state from the standpoint of thermal fluctuations and activation energies by Becker3 and more recently by Kauzmann4 further emphasizes the need for a quantitative and more comprehensive analysis of the dependence of fundamental plastic properties on temperature. The purpose of the present work was to investigate specifically: (1) The gross shape of the stress-strain curves at several temperatures, (2) the change in the critical shear stress as a function of temperature, and (3) the number and appearance of slip bands as a function of strain and temperature. Preparation of Specimens Single-crystal specimens of 99.996+ pct alumi-num, 1/2 in. in diam and 5 to 6 in. in length, were made by the Bridgman method of gradual solidification from the liquid state. The crystallographic orientation of the single crystals was determined from back-reflection, Laue X-ray photograms ac-cording to the method described by Greninger.6 In most specimens the Laue photograms showed double diffraction spots indicative of the lineage structure type of imperfection, discussed in great detail by Buerger.7 The angular spread of these spots was never observed to exceed 2". Most of the crystals were radiographed to insure against microporosity. In preparing the metal surface for optical microscopy, the following sequence of operations gave good results: The as-cast crystals were turned down in a lathe, 0.001 in. per cut, to obtain a 2.5 in. gauge length. The cold-worked layer resulting from this operation was removed chemically by etching with Tucker's reagent. Then the specimen was polished mechanically through 2/0 metallographic emery paper, after which it was etched again to remove the cold-worked layer resulting from the mechanical treatment. A 48-hr anneal at 580°C ±10°C followed so as to insure an essentially stress-free single crystal. After the annealing treatment, the specimen was electrolytically polished in a 2:l solution of methyl alcohol and concentrated nitric acid. With a current density of 10 amp per sq dm (decimeter) the time required to obtain a satisfactory surface varied from 10 to 12 min. The polish-ing was carried out for short periods of 2 min to avoid rapid deterioration of the solution as well as to enable the rotation of the specimen 180" for uniformity of polish. It was necessary to place the solution in a bath of dry ice in view of its explosive nature at room temperature. Etching of the electrolytically polished surface was accomplished by using the fuming etch-pit method recommended by Lacombe and Beaujard8 for high-purity aluminum. Method for Tensile Testing A modification of the loading equipment devised by Miller9 was used. In this apparatus, the specimen was suspended from a chain and gimbal arrangement (for axial loading) in a heavy steel framework connected at the bottom to a balanced 6:1 lever and bucket system. Loading of the specimen was accomplished by allowing sand to flow from a reservoir into the bucket suspended from the longer end of the lever-arm at a rate of approximately 3 lb per min. Strain measurements were made using the Baldwin SR-4, bonded, resistance-wire, strain gauge and an SR-4 portable strain indicator (type K), which permits a reading accuracy of 2 microinches per inch. For low-temperature study, the gauge was calibrated by measuring the elastic modulus of an annealed stainless steel rod, which is known to be independent of temperature."

Jan 1, 1951

Jan 1, 1887

By J. Iannicelli

Availability of large-scale high field/high gradient magnetic separators during the past five years allows applications of magnetic separation to feebly paramagnetic materials which have been considered nonmagnetic in the past. Technology is now available for magnetically attracting not only feebly magnetic compounds of iron such as hematite and pyrite, but also hundreds of compounds of nonferromagnetic elements such as copper, tin, uranium, vanadium. Besides enabling novel separation of industrial minerals, metallic ores, and coal, the new technology also can be used in effluent treatment, catalyst cleanup, and purification of chemicals.

Jan 1, 1979

By O. W. Ellis

IN VIEW of the extensive use of the brasses and bronzes in engineering practice it is indeed surprising that so little scientific work has been done on the oxides in these alloys. Recognition of the ill effects of these compounds is universally accorded, both in foundry procedure and in such specifications as cover the melting of these useful mixtures. In the latter, limits, for example, are placed on the proportions of scrap metal in the charge, and clauses governing the use of fluxes are included, the addition of fluxes to the charge being made with the object of avoiding oxidation during the process of melting and of subducing and separating non-metallic matter from the melt.1 In the manufacture of brass it occasionally, though rarely, occurs that the virgin metals, copper and zinc, alone are used. In the event of virgin metals being employed, that of the higher melting point is always melted first. If it is melted under suitable conditions, little or no oxidation will occur. Whether oxidation has occurred or not, however, can best be determined by microscopic examination of a sample taken from the melt.

Jan 1, 1930

By Samuel Dolbear

PUBLIC discussions of mine finance in the tech-nical press have been confined mainly to methods of providing funds for the development of pros-pects or other mining operations which have not reached the stage of productivity. The application of modern financing methods to mines which have behind them a successful record of net earnings has, for some reason, been given scant consideration by mine owners and managers. In a few conspicuous cases, such for example as the Anaconda Copper Mining Co., Chile Copper Co., and one or two others, industrial finance has been applied to mining operations on the scale and after the fashion of other operations. When extensions are needed re-course is usually had, however, to the sale of common stock, with the obvious disadvantage of diluting the holdings of every stockholder of record prior to such financing. In some cases, it has been sought to over-come this disadvantage by issuing stock purchase rights to shareholders of record. If the stockholder is in a position to acquire additional stock, he may then pre-serve his interest intact, otherwise he must suffer a dilution of his holding. If he purchases additional stock he is, from one point of view, paying more for his in-terest than he bargained for when he made his original purchase. In many cases development and equipment are paid for out of surplus or current earnings. It is sometimes most difficult to explain to a manager why he can afford to borrow money when funds are available from a sur-plus account. Nevertheless, industrial enterprises with adequate surplus accounts often finance new construc-tion by the issuance of bonds. Such a procedure enables the company to maintain its surplus intact, and to con-tinue the payment of dividends during a temporary period of unusual expenditures.

Jan 2, 1927