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By C. M. Heath, B. W. Gonser

Soft solders are used principally in the automotive, can-making, building construction and electrical industries, but their field of usefulness extends well beyond these principal users to a vast list of miscellaneous applications where metal joints are required. The most common soft solders and the only ones considered in this discussion are those composed of lead and tin, with or without various relatively small percentages of impurities or additions. A small amount of antimony is often purposely added. As an indication of the importance of these lead-tin solders, 8620 long tons of tin were consumed in 1934 in the United States for making new solder, and during most of 1935 from 900 to 1000 long tons often were used each month. In addition, many thousands of tons of secondary solder are recirculated annually. A great many factors influence the properties of joints made with soft solders. Fluxes and the fluxing procedure used to prepare the surfaces to be joined in order to give a true metal-to-metal contact are among the most important of these factors. The temperatures used, cleanliness of the work and general soldering technique have their effect, but when results are unsatisfactory they are usually attributed to the metallic solder itself and the raw materials from which it is made. Sometimes criticism of the solder is justified. The wrong composition may be chosen for a given job, impurities may be present that ruin certain desired qualities, or uniformity may be lacking. A solder may even be looked upon with suspicion because of its ancestry, regardless of its true composition and behavior. To clarify the effect of slight differences in composition as found in commercially refined solders, a comparison of properties of solders grouped according to their origin has been undertaken. This investigation seeks to give practical information on the properties of tin-lead solders produced from virgin metals, from commercially refined secondary solder, and from an electrolytically refined crude

Jan 1, 1936

By Frank Rieber

The discovery that strongly magnetic bodies localized near the surface of the earth could be detected by the distortion which they produced in the resultant magnetic field marked the beginning of magnetic surveying methods. From an original ability to detect bodies of magnetic iron ore and the like when located very close to the surface, these methods have been extended until today they promise to give much information with regard to the structure of such slightly magnetic material as sedimentary rock containing only a very small proportion of iron.' The recent extensions have been made possible through the development of more delicate instruments, and of methods for their use. From the original compass and dip needle, the design of apparatus has progressed until equipment is typified by magnetic balances capable of measuring the components of the earth's field to an extremely high degree of accuracy. It seems unlikely that the limit of such instrumental development has been reached. Just as the change from compass and dip needle has enabled the location of relatively minor changes in magnetic materials, so additional developments in the direction of increased sensitivity, as well as in greater dependability and constancy of operation, should reveal positively many slight changes which either escape notice in the present surveys or are so small that they cannot with certainty be separated from uncontrollable errors due to inconstant operation of the equipment. The ability to read smaller and smaller variations does not mean, of course, that deductions as to the causes of these variations will be made as accurately and definitely as is possible with the more pronounced anomalies.

Jan 1, 1929

By Paul Billingsley

The Georgetown mining district is located in Deerlodge county, Mont., about 20 miles west of Anaconda. It lies along the divide between the headwaters of Warm Springs creek, draining eastward, and Flint creek, flowing west and north through the Philipsburg valley. The actual divide is formed by Cable mountain, a narrow ridge running north and south, terminating to the south in low hills overlooking Georgetown lake, and to the north in a high, rugged plateau that falls off to the west to the wide valley of Flint creek. On the eastern, or Warm Springs, slope of Cable mountain is the Cable mine, with the Hidden Lake mine a few miles north. On the western slope is the Southern Cross group, with smaller mines, the Twilight, Cincinnati, Red Lion, and Big Bill, at intervals to the northward. The Georgetown mines lie in the hills south of Cable mountain; the Philipsburg mines, of which the Granite Mountain, Bimetallic, Hope, and Trout are the chief, form a separate group to the north, overlooking Flint Creek valley and Philipsburg. (See Fig. 1.) The region ranges in elevation from 5,000 to 9,000 ft. It is, with the exception of the lower valleys, well timbered with small fir and pine, although Cable mountain and the higher summits to the northward rise slightly above timber line. The main valleys have the smooth contours of glaciation, and their mouths are frequently choked with morainal deposits. General Geology. In a very general way the valley of Flint creek coincides in this region with the boundary between the pre-Cambrian slates of western Montana and the folded Palaeozoic rocks of the Rocky Mountain system. The great limestone formations of the Carboniferous and Devonian, lying at flat dips, extend from Anaconda well toward the head of Warm Springs creek, but on the divide the Cambrian appears, closely folded and intruded

Jan 1, 1914

By A. R. Troiano, W. J. Barnett

IN recent years the demands of space limitations and increased loads, particularly in the aircraft industry, have accelerated the trend toward utilization of ultra-high strength steels. The increased application of such steels has focused attention on the phenomenon of delayed failure or static fatigue. Parts subjected to a static load, after successfully sustaining the load for an extended period of time, may fail in a brittle manner. Subsequent examination of such failed parts by conventional laboratory tests in many cases reveals no apparent signs of embrittle-ment. That is, the material exhibits good ductility and impact resistance. Furthermore, consideration of the service conditions (environment and temperature) under which this brittle failure occurred eliminates its classification as a stress-corrosion or creep type of failure. Recently this unique time dependent fracture process has been the subject of numerous investigations. The most significant result of these studies was the recognition of hydrogen as the source of embrittlement. While the effect of numerous variables on the occurrence of static fatigue failure has been defined, an adequate explanation of these behaviors is lacking. The occurrence of this phenomenon in steels generally has been limited to strength levels in excess of 180,000 lb per sq in. Although steels at high hardness levels have exhibited delayed failure in the absence of hydrogen introduction after heat treat-ment,'.' this behavior was most prevalent when the material in processing had been subjected to an environment conducive to the absorption of hydrogen. Delayed failures have been produced in high strength steels by the introduction of hydrogen

Jan 1, 1958

By G. St. J. Perrott

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.2 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 similar to other explosives. Certain types of cartridge may be detonated with fuse alone, requiring no cap to initiate the detonation. ' By suitable variation of the nature and density of the combustible, cartridges having a wide variety of explosive characteristics may be made.

Jan 1, 1925

By L. E. Mannion

Sodium carbonate or soda ash is one of the two principal alkalis of commerce, the other being sodium hydroxide. The use of sodium carbonate is recorded in ancient Egypt, where naturally occurring brines or solid salts were the source of impure soda for glass manufacture. In early modern times until the 19th century, soda ash, as well as potash, was recovered mainly by leaching the ashes of plants. In Europe, during the 18th century, a brown lye for laundering was produced by pouring hot water over burned seaweed. One of the better grades of this kind of material was a product from Spain termed "barilla," which analyzed 24 to 30% Na2CO3 (Hou, 1942). The birth of the modern chemical industry may be said to start with the LeBlanc process for making sodium carbonate from salt, sulfuric acid, and lime. Although invented in France in 1691, England made the most extensive use of it. In 1863 Ernst Solvay devised the ammonia-soda or Solvay process, and by 1874 the first of many Solvay plants was built. These were to supplant the LeBlanc method and dominate soda-ash production until the present time. Although of lesser importance, natural sodium carbonate deposits continued to support operations in various parts of the world. Shortages during World War II stimulated production of "natural" soda ash, particularly at Searles Lake, Calif., and at Lake Magadi, Kenya. Within the last ten years in the United States, a notable surge in production has occurred based on the vast trona deposits in Wyoming. Table 1 lists some principal producers of natural soda ash and the character of the source deposits. Uses and Specifications Sodium carbonate (Na2CO3) is a white, crystalline hygroscopic powder, an aqueous solution of which is strongly alkaline. Most commercial soda ash is a product that must meet high standards of purity and uniformity. Two forms are commonly sold: a fine, powdery material called light ash, and a more coarsely crystalline dense ash; these weigh 32 to 39 and 60 to 66 lb per cu ft, respectively. Dense ash may be produced by adding a little calcium chloride to the sodium carbonate solution to control crystal size and prevent agglomeration. Specifications and typical analyses of light and dense ash in the United States are shown in [Table 2]. Sizing generally achieves about 75% of light ash and 90% of dense ash between +30 and -100 U.S. screen mesh. World use of sodium carbonate now exceeds 24 million tpy, of which the United States produces more than 7 million tons. The market for soda ash is dominated by the glass industry, which uses almost half the supply. Inorganic chemicals, including phosphates and silicates, consume about 30%. Other principal uses include the manufacture of soaps and detergents, petroleum, caustic soda, organic chemicals, and paper; and nonferrous and ferrous metallurgy. [Fig. 1] shows the percent consumption by use of soda ash in Europe, Japan, and the United States. The price of soda ash in the United States remained relatively stable during the 1960s at about $33 per ton; in 1972 it reached $35 per ton. The price in 1975 was $42 per ton. Geology Mineralogy [Table 3] is a list of the more common sodium carbonate-bearing minerals. Anhydrous sodium carbonate is almost never found in nature; only natron, thermonatrite, and trona have been used directly as sources of sodium carbonate. At Searles Lake, burkeite and hanksite are important in the reconstitution of

Jan 1, 1975

An "international gold conference" was held at Spokane, Wash., on Sept. 5, 1918, under the auspices of the Northwest Mining Association, which was attended by a large number of engineers, mine operators, and bankers, representing the northwestern states, as well as Alaska and British Columbia. The principal subject under consideration was the doleful condition of the gold-mining industry, gripped between the diminished purchasing value of its product, and the increased cost of its operation. Two resolutions were adopted by the meeting. The first approved the resolution adopted Aug. 12 by the American Gold Conference, a permanent organization formed at Reno, Nev., in which it is stated that relief by the United States to the gold producers of this country should he made to correspond with the increased cost of production, the extent of the relief to be fixed from time to time to Meet changing conditions. The second resolution, adopted after serious and long-continued discussion, was introduced by F. A. Ross, mining engineer, of Spokane, and a member of the Institute, and was as follows: WHEREAS, it is now clearly understood and agreed by the allied nations that national gold reserves must be augmented without delay if rapidly expanding credits are to be secured; and WHEREAS, at this time, the production of gold is daily decreasing to an alarming extent because of well known conditions that, render the mining of gold-bearing ores unprofitable; and WHEREAS there is no way by which the mining of gold-bearing ores may be made profitable except by the direct' aid and influence of the government; and WHEREAS the government has appealed to the mining industry for practical information and practicable suggestions upon this subject; therefore, be it

Jan 10, 1918

By G. R. Fitterer

By means of the C-Sic thermocouple1, liquid metal temperatures have been found to vary much more than was previously supposed, and fortunately these variations can be directly associated with some of our former knowledge which combined to form the "art" of liquid-metal manipulation. Commercial Development of This Device Several types of installations are operating in different plants. There are so many variables in steel plants in regard to operation, procedure, arrangement of pouring platforms, ladles, etc., that most of the installations now in service in this country are "tailor-made"; nevertheless, it is felt that satisfactory gains have been made, inasmuch as each installation has indicated some effect of temperature upon the metallurgical operation, and has pointed the way toward technical and financial benefits. In most cases, it has been necessary to accumulate the temperature data until sufficient metallurgical information is available for the drawing of conclusions. When mechanical difficulties have been eliminated, a distinct correlation of these factors has been obtained. The installations now in service are used for the determination of temperatures in the basic open-hearth furnace prior to tapping and in ladles from both acid and basic furnaces prior to pouring. Some of the installations are in shops making the higher priced steels; others are in "tonnage shops." The errors of human element, smoke screens and emissivity corrections connected with the use of the optical pyrometer do not affect the C-SiC thermocouple readings. The accuracy of the C-Sic thermocouple and the temperatures measured are discussed later in this paper. Temperature Variations or Liquid Pig Iron One well-known discussion between the blast-furnace and open-hearth (or Bessemer) departments has occurred intermittently for more

Jan 1, 1936

By G. R. Fitterer

By means of the C-Sic thermocouple1, liquid metal temperatures have been found to vary much more than was previously supposed, and fortunately these variations can be directly associated with some of our former knowledge which combined to form the "art" of liquid-metal manipulation. Commercial Development of This Device Several types of installations are operating in different plants. There are so many variables in steel plants in regard to operation, procedure, arrangement of pouring platforms, ladles, etc., that most of the installations now in service in this country are "tailor-made"; nevertheless, it is felt that satisfactory gains have been made, inasmuch as each installation has indicated some effect of temperature upon the metallurgical operation, and has pointed the way toward technical and financial benefits. In most cases, it has been necessary to accumulate the temperature data until sufficient metallurgical information is available for the drawing of conclusions. When mechanical difficulties have been eliminated, a distinct correlation of these factors has been obtained. The installations now in service are used for the determination of temperatures in the basic open-hearth furnace prior to tapping and in ladles from both acid and basic furnaces prior to pouring. Some of the installations are in shops making the higher priced steels; others are in "tonnage shops." The errors of human element, smoke screens and emissivity corrections connected with the use of the optical pyrometer do not affect the C-SiC thermocouple readings. The accuracy of the C-Sic thermocouple and the temperatures measured are discussed later in this paper. Temperature Variations or Liquid Pig Iron One well-known discussion between the blast-furnace and open-hearth (or Bessemer) departments has occurred intermittently for more

Jan 1, 1936

By Arthur Taggart

INTRODUCTION THE flotation process for the concentration of ores is a method by means of which one or more of the minerals in the ore (usually the valuable ones) are picked up by means of a liquid film and floated at the surface of .a mass of fluid pulp. Here they are separated from the other minerals, which remain immersed in the body of the pulp. In general, the minerals which are floated are sulphides of metallic luster, but some other minerals of metallic luster such as graphite and some sulphides with adamantine luster, such as sphalerite and cinnabar, are amenable to treatment by the process. The importance of flotation lie's in the fact that it is primarily a "slimes process" by means of which the particles of valuable mineral, too fine for efficient gravity concentration, are saved with a high percentage of recovery. Recoveries in the mills treating low-grade copper sulphide ores have been advanced 10 to 20 per cent. by the installation of the process and similar increased savings have been accomplished by the same means in mills treating sulphide ores of zinc and lead. When finely ground ore containing sulphides mixed with a siliceous or earthy gangue is brought gently onto the surface of a body of water, in a direction forming an acute angle with the surface of the water, a considerable portion of the sulphide constituent of the ore floats on the surface of the liquid, while the gangue sinks. This is the so-called film flotation, exemplified by the Wood and Macquisten processes. When gas bubbles are introduced into a fluid pulp composed of finely ground ore and water, to which has been added (1) a small amount of certain oils, or (2) a small amount of certain acids or acid salts, or (3) a small amount of certain alkalis or alkaline salts, or (4) a small amount of a mixture of oil with acid or alkali, the sulphide particles in the ore are brought to the surface on the gas bubbles. These collect in a froth

Jan 8, 1916

By Carl Henrich

Jan 1, 1890

By Lawrence Henderson

TO increase tonnage in the early days of coal mining it was necessary only to hire more men. The job now is to increase the tons per man, but other troubles arise because this has been accomplished. With the introduction of continuous miners, newer and faster loading machines, and faster belt conveyors the safety engineer has been faced with new difficulties. Use of larger equipment created roof control problems, which were thoroughly studied by the safety engineers of various companies. With the assistance of the U. S. Bureau of Mines, safety engineers in Alabama conducted roof bolting experiments wherever they appeared to be applicable. Accident records before and after the method was adopted showed results more than justifying the efforts and funds expended. The larger mining companies responded enthusiastically to the program because roof bolting not only prevented accidents but also increased production efficiency, in many cases rep- resenting the margin between profit and loss. In Alabama today there are miles of roof supported by bolts.

Jan 8, 1957

By Milton H. Ward

This paper contains a review and discussion of the major design parameters of a block caving mine, with special attention given to access, development, and operational methods. Information will be provided on the economics and costs of various design alternatives, and how they can influence financial results of a particular project. Technical and economic factors that pertain to an actual operation, Freeport Indonesia, Incorporated's block caving mine in Indonesia, will be provided, and highlights of the planning, development and operation of this mine will be presented. The major thrust of the paper will be to emphasize the importance of good planning and to encourage economic analysis of various methods of layout and design.

Jan 1, 1981

By Z. T. Bieniawski

The importance of understanding the phenomena associated with rock fracture has long been fully appreciated in rock mechanics. This is clearly apparent from the special attention paid to rock fracture in the comprehensive papers published within the past four years.l-5 These papers present a picture of how the knowledge of brittle fracture of rock was gradually enriched and also show that what was often taken for granted three or four years ago is no longer considered as valid today. The Griffith hypothesis,6 thought in the past to predict the strength of rock, is now known to be applicable to fracture initiation only. The knowledge of a failure criterion for fracture initiation is not sufficient, however, as after fracture initiation the rock is still a useful material even possessing increasing load-bearing ability. The importance of the fracture propagation process, subsequent to fracture initiation, is thus obvious. Yet, relatively little attention has so far been paid to brittle fracture propagation in rock. As it is now realized that understanding of this process is a prerequisite for practical rock mechanics applications, studies of propagation of brittle fracture in rock constitute an important aspect of rock mechanics research. It has been pointed out 4 that it is essential that the failure mechanism is fully understood before a failure criterion is postulated. Many failure criteria have been propounded in the past on the basis of theoretical reasoning alone and could not be verified by experimental evidence. Recently, a hypothesis for the mechanism of brittle fracture of rock was propounded, 4 describing the events taking place in the rock from the initial application of gradually increased load to complete disintegration of the material.

Jan 1, 1972

By Frederick Laist

(Butte Meeting, August, 1913.) WHILE remodeling No. 1 section of the concentrator at the Washoe Reduction Works of the Anaconda Copper Mining Co. during the summer of 1912, for the purpose of ascertaining what additional metal recoveries could be made by improvements in concentration practice which had been developed by the staff of the Boston & Montana Reduction Department, at Great Falls, it was deemed advisable to carry on some experiments on the treatment of the regular mill tailings by roasting and leaching, to see whether the losses of metal values might not be still further decreased. In the course of these experiments about 5,000 tons of tailings were roasted, and of the resulting calcine about 200 tons were leached. The results were so satisfactory that it was decided to continue the work on a larger scale, particularly as regards the leaching end of the process, and construction work on an 80-ton roasting and leaching plant was accordingly commenced during the latter part of February, 1913, and is being pushed as rapidly as possible. 80-Ton Leaching Plant. This plant will consist of one 20-ft. roasting furnace of the MacDougall type, specially adapted to the work of roasting for leaching; two leaching tanks, .32 ft. in diameter by 12 ft, deep, together with the necessary solution tanks, air lifts, precipitating launders, etc. It has been decided to precipitate the copper from solution on scrap iron, so as not to hamper the roasting and leaching departments by any weakness that might develop in the precipitating department. It is, however, the intention to experiment with a number of different methods of precipitation ; for example, by electrolysis and by hydrogen sulphide.

Jan 7, 1913

By Harlowe Hardinge

The sound made by ball, pebble and rod mills has long been used by the operator as the "telltale" of their operation. The nature of this sound depends upon local conditions and the type of mill used. By experience an operator can tell whether the mill is running properly or not. Some operators are able to detect the difference in sound much better than others and get better results running the same mill under the same conditions. The automatic operation of a mill using sound as the fundamental means for maintaining control presents many problems. The satisfactory solution of these problems requires, for given operating conditions, a greater average output, with improved product for subsequent processing, than can be obtained by manual control. Relation of Sound to Useful Grinding Energy Experience has taught us that there is a difference in character as well as in intensity of sound between a mill grinding wet and one grinding dry, in open or closed circuit, to obtain a coarse or fine product, on the same material, to say nothing of the effect with a variety of different materials. Broadly speaking, a wet-grinding mill operates best at a lower sound level than the same mill grinding dry, with other conditions the same. Several reasons for this variation in sound intensity under these conditions can be advanced, but the important point is that there is a difference, based upon practical results. Since these reasons may be more or less involved, and may be subject, to much discussion, only one will be considered here. It is apparent that two balls hitting together or a ball striking the lining, if there is no intervening material, will produce the maximum sound. If a complete cushion of material is placed between the balls or ball and liner, so that the energy is dissipated without doing useful work, the balls will be unable to create enough pressure or force to fracture the particles, and the sound will be at a minimum. At some point in between—that is, where there is sufficient material between the balls or ball and liner so that the ball will fracture the particles without mashing them unduly—the sound

Jan 1, 1939

By Harlowe Hardinge

The sound made by ball, pebble and rod mills has long been used by the operator as the "telltale" of their operation. The nature of this sound depends upon local conditions and the type of mill used. By experience an operator can tell whether the mill is running properly or not. Some operators are able to detect the difference in sound much better than others and get better results running the same mill under the same conditions. The automatic operation of a mill using sound as the fundamental means for maintaining control presents many problems. The satisfactory solution of these problems requires, for given operating conditions, a greater average output, with improved product for subsequent processing, than can be obtained by manual control. Relation of Sound to Useful Grinding Energy Experience has taught us that there is a difference in character as well as in intensity of sound between a mill grinding wet and one grinding dry, in open or closed circuit, to obtain a coarse or fine product, on the same material, to say nothing of the effect with a variety of different materials. Broadly speaking, a wet-grinding mill operates best at a lower sound level than the same mill grinding dry, with other conditions the same. Several reasons for this variation in sound intensity under these conditions can be advanced, but the important point is that there is a difference, based upon practical results. Since these reasons may be more or less involved, and may be subject, to much discussion, only one will be considered here. It is apparent that two balls hitting together or a ball striking the lining, if there is no intervening material, will produce the maximum sound. If a complete cushion of material is placed between the balls or ball and liner, so that the energy is dissipated without doing useful work, the balls will be unable to create enough pressure or force to fracture the particles, and the sound will be at a minimum. At some point in between—that is, where there is sufficient material between the balls or ball and liner so that the ball will fracture the particles without mashing them unduly—the sound

Jan 1, 1939

By O&apos, R. G. Meara, M. M. Fine

One of the principal activities of the Bureau of Mines connected with the recent war was to help to increase the supply of strategic and critical minerals. Fluorite was one of the most critical of the nonmetallic minerals because of the increased demand for it as a flux in basic open-hearth and electric steel furnaces and as a raw material for the production of artificial cryolite used in the aluminum industry. Wartime developments in the technology of hydrofluoric acid, such as the use of the anhydrous acid as a catalyst in production of high-octane gasoline and the use of organic fluorides as carriers for insecticides, also increased the demand for acid-grade fluorite. † In 1943 the consumption of acid-grade fluorite was advancing at a more rapid rate than production, and was only slightly less than production during the latter half of the year.' The outlook for the postwar market for fluorite is encouraging Steel production is expected to remain high until the domestic demand for commodities not manufactured during the war is satisfied. The uses for hydrofluoric acid are expected to increase under the impetus of war-initiated research. In consideration of these and other factors some authorities predict a postwar demand for fluorite equal to about 60 to 75 per cent of the wartime production.1,2 Others believe that the postwar fluorite industry will be permanently expanded over its prewar status3 Acknowledgment This paper is one of many reporting on various aspects of the Bureau of Mines program directed toward the more effective utilization of our mineral resources. The program has been under the general supervision of R. S. Dean, Assistant Director, since July 1942. The scope of the paper falls in the province of the Metallurgical Branch, whose activities embrace the separation of difficultly beneficiated ores, the production of pure metals from domestic deposits, the exploitation of marginal ore reserves, the recovery of secondary metals, and the improvement of present industrial metallurgical practice. The investigation was initiated at the request of Mr. J. H. Steinmesch, vice-president and general manager, Minerva Oil Co., Eldorado, Ill. His hearty cooperation and helpful suggestions, and those of Mr. 0. E. Anderson, mill superintendent,

Jan 1, 1947

By M. M. Fine, R. G. Meara, O&apos

One of the principal activities of the Bureau of Mines connected with the recent war was to help to increase the supply of strategic and critical minerals. Fluorite was one of the most critical of the nonmetallic minerals because of the increased demand for it as a flux in basic open-hearth and electric steel furnaces and as a raw material for the production of artificial cryolite used in the aluminum industry. Wartime developments in the technology of hydrofluoric acid, such as the use of the anhydrous acid as a catalyst in production of high-octane gasoline and the use of organic fluorides as carriers for insecticides, also increased the demand for acid-grade fluorite. † In 1943 the consumption of acid-grade fluorite was advancing at a more rapid rate than production, and was only slightly less than production during the latter half of the year.' The outlook for the postwar market for fluorite is encouraging Steel production is expected to remain high until the domestic demand for commodities not manufactured during the war is satisfied. The uses for hydrofluoric acid are expected to increase under the impetus of war-initiated research. In consideration of these and other factors some authorities predict a postwar demand for fluorite equal to about 60 to 75 per cent of the wartime production.1,2 Others believe that the postwar fluorite industry will be permanently expanded over its prewar status3 Acknowledgment This paper is one of many reporting on various aspects of the Bureau of Mines program directed toward the more effective utilization of our mineral resources. The program has been under the general supervision of R. S. Dean, Assistant Director, since July 1942. The scope of the paper falls in the province of the Metallurgical Branch, whose activities embrace the separation of difficultly beneficiated ores, the production of pure metals from domestic deposits, the exploitation of marginal ore reserves, the recovery of secondary metals, and the improvement of present industrial metallurgical practice. The investigation was initiated at the request of Mr. J. H. Steinmesch, vice-president and general manager, Minerva Oil Co., Eldorado, Ill. His hearty cooperation and helpful suggestions, and those of Mr. 0. E. Anderson, mill superintendent,

Jan 1, 1947

By John R. Caldon

INTRODUCTION Leasing has become a major industry in many countries because of the advantages it affords. Whilst the accounting, legal and tax treatment of leasing varies from country to country, there is far more similarity than difference. The general approach to the subject is largely the same. This paper looks to the basic financial considerations in the decision to lease or buy. TYPES OF LEASES Before embarking upon the subject, it would seem appropriate to define a "lease". A lease may be defined as: "an agreement granting one party the right to use, for a specified period of time, property owned by another party in return for a series of payments of rental by the user to the owner''. Ownership, of course, generally entitles the owner to unrestricted use of the asset over its useful life in contrast to a lease which gives the lessee use over a limited period. The distinction between the status of owner and a lessee often is fairly small. In this case we are dealing with what is generally termed a "finance lease". A finance lease is one which substantially transfers the risks and benefits of ownership from the legal owner to the lessee. For example, a finance lease would exist where the lessee enters into a lease of an asset for most of its useful life and has an option to buy the asset at the end of the lease for a price which takes cognisance of the rentals already paid. Where a lease does not substantially transfer the benefits and risks of ownership to the lessee, i.e. those benefits and risks remain with the owner and lessor, the lease is termed an "operating lease" and is an agreement for the renting and usage by the lessee of an asset owned by the lessor for a limited period. An example of an operating lease might be where a tenant leases a building for a defined period say 6 years with the rent and occupancy subject to renegotiation at the end of the lease term. The economic consequences of the distinction between a finance and an operating lease is very important. With a finance lease, the lessee has a de facto economic interest in the asset and the alternative to a finance lease is some form of purchase; with an operating lease, the lessee does not have a basic economic interest in the asset and consequently a comparison with a purchase option involves far more than simply a funding comparison. Some of the principal differences between finance and operating leases can be summarised as follows: (a) finance leases: -the risks and benefits of ownership are substantially transferred to the lessee; -the lessor normally recovers his investment during the term of the lease; -the lessor in entering into the transaction is relying more on the creditworthiness of the lessee than the underlying value of the asset; - the lease is either non-cancellable or a large penalty will apply for unilateral cancellation by the lessee; (b) operating leases -the risks and benefits of ownership remain essentially with the lessor; -the lease rental income would not normally cover the recovery of the lessor's investment; -the lessor evaluates his risk in terms of the underlying value of the assets;

Jan 1, 1985