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By H. P. Leighly

WORNER1 briefly studied the embrittlement of titanium by mercury. He found that mercury will wet the titanium surface at 400°C in vacuo, if the specimen had been heated previously to 700°C to dissolve the oxide coating. Subsequent exposure to the atmosphere causes the mercury film to recede rapidly. Bending of the titanium specimen even after the mercury film has receded results in a brittle fracture. For the study of the embrittling effect of mercury on titanium, specimens 2 by 12 by 0.051 in. were cut from RC-130-A sheet, an alloy having a nominal 8 pct Mn content and a mixed a-ß structure. The specimens were stressed horizontally at a predetermined value after which a plastic ring having a cavity 1/2 in. diam by 1/2 in. deep was placed on the specimen. The cavity was filled with mercury and a hole was drilled in the specimen through the pool of mercury. If the stress level was high enough, fracture occurred instantaneously with the drilling. By repeating the test at different stress levels, the threshold stress can be determined. Mercury embrittlement causes a drastic reduction in the ultimate tensile strength of this alloy from 132,000 psi to about 15,700 psi. The drilling of the hole, in the absence of mercury, does not change the tensile properties. Fig. 1 shows the typical fractures observed as a result of the embrittlement of this alloy by mercury. The central portion of the fracture was brittle represented by the jagged region which appears to have occurred on the shear planes at about 45 deg to the stress axis. Ductile fracture, which is perpendicular to the stress axis, occurred near the specimen edges accompanied by a reduction of the specimen thickness. Examination of the fracture reveals that only in the brittle region does mercury wet the

Jan 1, 1962

CONTENTS PAGE UREN, LESTER C.-Increasing Production of Petroleum by Increasing Diameter of Wells. Discussed by A. Beeby Thompson 1 LAHEE, FREDERIC H.-Comparative Study of Well Logs on the Mexia Type of Structure. Discussed by W. A. I. M. van Waterschoot van -der Gracht.... 4 Increasing Production of Petroleum by Increasing Diameter of Wells Discussion of the paper of LESTER C. UREN, presented at the New York Meeting, February, 1925, and issued, as Paper No. 1364-G, with MINING AND METAL-LURGY, October, 1924. A. BEEBY THOMPSON, London, Eng. (written discussion).-The subject discussed in this paper has long been debated by operators in European fields, where very strong views are held regarding the advisability of controlling gas pressures by shutting in wells. While unwilling to theorize on the subject of restricted flow, the writer has always been disposed to associate himself with those who hesitate to impose any obstruction to a natural transitory state that breaks up the oil-containing strata and establishes a feeder system which no subsequent events, natural or artificial, can approach in intensity. In both Russia and Roumania, where the oil is concentrated in discontinuous, disturbed, and irregular lenticles of sand varying, within short distances, in coarseness of grain, extent of impregnation and degree of cementation, it has been the practice to let the wells run wild in order to provoke disruption of strata. By encouraging violent eruptions, an extended feeder system is created and the ejection of enormous quantities of sand, rock, and clay creates a sump and seepage area that it would be difficult to imitate by any artificial means, not excluding actual mining. Before discussing the somewhat novel method suggested for enlarging the infiltration area, the writer would like to confirm the fact that many valuable data applicable to oil are forthcoming from a study of water phenomena. Long association with water-supply problems in many parts of the world has shown how closely the phenomena of underground movements of water and oil are related, so that it is pleasing to note the author's use of water formulas. But there is one great distinction;

Jan 7, 1925

By Otis Hutchins

IT is intended to discuss in this paper the protection appliances used for high-temperature pyrometer installations involving the use of platinum couples and describe some of the characteristics of a new carborundum protection tube. Of all the components that go to make a complete pyrometer installation, the one given the least attention and the one about which there is the least exact information is the outer protection tube. This condition is unfortunate as much, and in some cases even the success of the equipment as a whole, depends on the proper type of protection. In the majority of cases, the installation is allowed to operate without attention until some part of the apparatus breaks clown. The outer tube is the component that usually fails and, more often than not, the failure causes breakage of the porcelain protection and ruin of the couple. This condition should be recognized and studied as it has a very important bearing upon the upkeep cost of pyrometer equipment. The cost of the outer protection tube is small compared with the cost of the platinum couple and procelain protection and it would well repay users of this type of equipment to replace their outer protection tubes at certain definite periods, which experience shows is necessary to prevent destruction of the platinum. Speaking generally, platinum thermocouple equipment is used for measuring temperatures over 2000° F. (1094° C.), and is used extensively for the control of brick and pipe kilns, glass pot furnaces, glass tank furnaces, heat-treating furnaces, open-hearth furnaces, and forge furnaces. A satisfactory protection tube must be sufficiently refractory not to soften at the maximum temperature within the furnace. It must be resistant to cracking clue to temperature changes, should be as nearly gas-tight as possible, and should be made of a material with a high thermal conductivity and great resistance toward erosion by the furnace atmosphere.

Jan 9, 1919

By Julian Glasser, Arthur Fleischer

THIS country was faced with the possible necessity of utilizing nonbauxitic ores for producing aluminum during World War 11. Construction of four experimental plants to treat such ores by four different processes was authorized1-4 including one at Salt Lake City, for the conversion of Marysvale alunite to metal-grade alumina and potassium sulphate by the Kalunite process.' An aluminum reduction plant in Tacoma, Wash., with a capacity of 50 tons of aluminum per day, was constructed to handle the Kalunite alumina produced at the Salt Lake City plant. The alumina and aluminum plants were Defense Plant Corp. projects operated by Kalunite, Inc. and Olin Industries, Inc., respectively. Kalunite alumina differs from Bayer alumina in several respects, particularly in that the former contains potash instead of soda. The presence of potassium in the alumina feed to the cryolite bath was stated by aluminum technologists to be undesirable under the usual operating conditions of aluminum furnaces. In 1940, about 20 tons of Kalunite alumina produced in the Kalunite pilot plant, were reduced electrolytically in a 10,000 amp furnace at Battelle Memorial Institute and at the aluminum reduction plant at Neuhausen, Switzerland. These relatively small scale tests indicated that satisfactory commercial aluminum could be produced in a practical manner. The Tacoma plant reduced about 2,500,000 lb of Kalunite alumina to produce more than 1,200,000 lb of aluminum, in accordance with the accepted gractice for reducing Bayer alumina. It was desired to determine whether commercial aluminum could be produced on a large scale and to establish the technological differences in commercial reduction practice between Kalunite and Bayer alumina. In the course of collecting data, the effects of the abnormal chemical composition and physical properties of Kalunite alumina were observed wherever possible. Tacoma Reduction Plant The reduction plant had two pot lines, each with 120 cells in series, operated at approximately 32,000 amp. Each cell was provided with a single rectangular Soederberg continuous anode, with side-pin electrical contacts. Each cell was hooded and ventilated through a stack connected to 14 other cells, with 25,000 cfm blower. When the plant started operation in 1942, all of the cathode linings were of block construction. Rebuilt cells were of rammed paste construction.

Jan 1, 1952

By R. A. Bowen

THE Montreal mine, operated by the Montreal Mining Co., is four miles west of Ironwood, Mich., in Iron County, Wisconsin. It is the westernmost producing property on the Gogebic Iron Range of the Lake Superior district. Its production is 4000 tons of hematite per day from an average depth of 2300 ft. This tonnage is hoisted through a five-compartment vertical shaft. Several mining methods are in use but in the larger orebodies the method is sublcvel caving. ORE OCCURRENCE AND CHARATERISTICS The main orebodies of the Montreal mine lie in eastward-pitching troughs formed by the intersections of intrusive dikes with impervious members of the iron formation. The formation has an average width of 425 ft., strikes east and west and dips north at approximately 62°. The dikes dip south at 45° and bear north 20° from the strike of the formation, making the intersections with various members pitch east at 16°. The dikes are not continuous across the formation but are interrupted by a longitudinal bedding fault, which has a throw of 380 ft. vertically and 885 ft. horizontally. North of the fault zone the formation is called "hanging," south it is called " footwall" formation. The faulting has created two ore-bearing horizons; viz., at the inter- section of hanging dikes with the slate members and the foot dikes with the quartzite footwall. In each formation the main ore-bearing member consists of wavy beds of hard chert interlaid with hematite. In the most productive part of the mine, where the sublevel caving method is employed, a hanging-formation dike lies in juxtaposition with a footwall dike and the iron formation carries ore in certain sections from the quartzite footwall to the hanging dike. Here a horizontal section of the orebody may be 300 to 400 ft. wide for a length of 150 ft. or more and tail out lengthwise in both the foot and hanging formations. The footwall ore section is much longer than the hanging wall because of the orebody's greater height above the "pitching dike."

Jan 1, 1938

By Oscar M. Kucus

In January and February of the current year, at the Tooele plant of the hternational Smelting Co., Tooele, Utah, a modification of the usual method of converting, for the treatment of copper-lead matte from lead blast furnaces, was developed and put into successful operation. In brief, the method consists in blowing molten matte direct from the blast furnaces in basic-lined converters, without the addition of siliceous fluxing ores, to the almost complete elimination of the lead contained, and to the production of copper bullion, the resulting lead fume being recovered by the filtration of the converter gases through woolen fume bags. The process is carried out in conjunction with the converting of rever-beratory copper matte, the heavy iron slag, together with the copper precipitated, being transferred to converters blowing copper matte. The purpose of this transfer is to reduce the copper oxide formed, due to the necessary overblowing of the lead-matte charge, and to utilize, as far as possible, the value of iron from the lead matte, for the fluxing of siliceous dry ores. The final slag from the copper converters is then skimmed off and transferred molten to a reverberatory smelting furnace treating copper ores. This variation from general converting practice was the outgrowth of results obtained during 1913 when it was endeavored to convert copper-lead matte in the usual manner, with the direct addition of siliceous fluxing ores. To make clear the reasons lying back of the process it is necessary to recount at some length the results of operations during that year. In the design of the lead plant it mas planned to treat the copper-lead matte from the furnaces by direct converting without reconcentration and thereby to recover the copper, silver, and gold as quickly as possible. A converter plant of ample capacity, treating copper matte, already being in operation, it was only necessary to install a bag house, a fan, and the necessary flues to complete the equipment. The bag house constructed has a bag-cloth filtering area of 136,000 sq. ft., provided by 960 fume bags, 18 in. in diameter by 30 ft. in length. A No. 20 Sirocco fan of 180,000 cu. ft. capacity delivers the gases from

Jan 1, 1915

By Ernest Gayford

THIS is a nontechnical paper on flotation, subdivided under three general headings: (1) Definition of flotation; (2) what flotation is now doing in Utah; and (3) what is the future of flotation? . DEFINITION T. A. Rickard defines flotation1 as "the act or state of floating," from the French flottaison, water-line and fitter, to float. The dictionary defines flotation as "the science of floating bodies." The flotation process is a method of concentrating ores by frothing. Weinig and Palmer 2 define flotation as follows: What is the flotation process? Briefly, it consists in the agitation of finely divided ore in water containing bubbles of air or gas, a small amount of oil and, usually, other reagents, soluble and insoluble; under these conditions the small parti- cles of native metals, sulfides, arsenides, antimonides, selenides and tellurides show a tendency to attach themselves to the 6lms of the bubbles, and are thus carried to the surface of the water. The oxidized gangue minerals, such as quartz, feldspar, limestone, hematite, etc., show much less affinity for the bubbles, are easily wetted by the water, and either remain in suspension in the water, or sink to the bottom of the vessel. If the bubbles are sufficiently stable they can be removed, carrying their load of sulfide-mineral particles with them. Thus there can be effected a separation of the two classes of minerals from each other, assuming that the grinding has been sufficient to unlock all of the particles of different composition. The separation does not depend upon differences in specific gravity of the various minerals; in fact, the sulfides are usually heavier than the oxides, and some of the heaviest sulfide minerals are the easiest to float. A particle of mineral may be so large, however, that its weight will counteract its affinity for the film of the bubble. In most cases the ore must be fine enough to pass a screen having at least 48 meshes to the linear inch. Taggart defines flotation as follows : Flotation is a method of wet concentration of ores in which separation of mineral from gangue is effected by causing the mineral to float at or above the surface of a body of liquid pulp while the gangue becomes or remains submerged. The method

Jan 1, 1928

By J. P. Lesley

The old do not love to see the young pass away from the light of the sun before them. Fathers would fain keep their sons by their side to the. end of life ; but the old Greeks, who loved the old gods, were wont to moderate their grief with the sweet superstition that only those whom their gods especially loved died early. The Christian church found consolation in that superstition applied in a new form to its new sorrows, and paid its most enthusiastic devotion to the memories of its young and beautiful martyrs. The natural science of our century is robbing us fast of this and all other superstitions, sweet as well as bitter, and leaving us for consolation to the teaching—colder, yet kinder—of personal fortitude and that optimism Which intelligently translates the Cosmos of Humboldt back into its old name of the Harmonia of Pythagoras. The Homeric Kataclothes, the three fates, are dead and gone for us, with that old world which comprehended none of the laws of cause and effect, and sorrowed for those who were cut off from the land of the living without hope of more than a shadowy existence beyond the river of death. All the more the ancients cherished the memory of their dead and lavished their choicest art upon their monuments. We moderns have lost the monumental arts, but we better keep the monuments which our dead leave behind them. No one of us who has done good work can fail to be remembered; and in an Institute like this, which keeps the press at work, an immortality in the memory of men is more possible, more certain, for every one of its members than the greatest heroes of antiquity could anticipate for themselves. In old apocalyptic times the works of men followed them through death to the throne of God to be their advocates in judgment, but in these modern times our works remain this side the grave, to follow the name of the departed one as it takes its course along the history of his peculiar art or science advancing slowly to perfection. We write the epitaph, not upon the mouldering stone of a tomb, but on the pages

Jan 1, 1890

By The Staff of Dames & Moore

Five factors are required for the formation of uranium deposits: a source, transporting medium, host, trap, and preservation. Locating and evaluating uranium deposits requires ail integration of methods and techniques to determine if the above factors are present. A typical exploration program consists of selection of a favorable area, field reconnaissance, land acquisition, and target definition and evaluation. Target definition and evaluation utilizes a combination of geologic mapping, geochemical surveying, geophysical surveying, and drilling and logging. Each overlaps the others to some degree.

Jan 10, 1978

By David M. Hopstock, Jose M. Pastrana

The magnetic susceptibilities of samples of natural and artificial hematite and natural goethite were measured by the Faraday method as functions of temperature, magnetizing field strength and particle size. All samples showed weak ferromagnetism, which accounted for large variations in susceptibility with field strength and particle size. Three probable sources of the weak ferromagnetism were identified.

Jan 1, 1978

By D. H. R. Price

This paper presents two tentative models of the use of a notional metal in a country like Britian, which have been developed using the System Dynamics modelling method. Computer simulations have been carried out using one of the models. These show the effect on the recycling of the notional metal of a wide range of possible future values of world market price and demand for the metal.

Jan 1, 1977

By P. R. Kneitz, G. Yoshikado, D. Zayakov

The design and analysis of a circular, domed powerhouse for Pacific Gas and Electric (PG&E) Company's Kerckhoff 2 Project is described. Exploration, geologic stress determinations, mechanical properties, reinforcement and instrumentation are addressed briefly. The analyses of the circular, domed cavern and the comparison of predicted and field deformations are presented in somewhat more detail. The behavior of the completed powerhouse cavern has been found to be substantially as predicted by the analysis.

Jan 1, 1982

By D. E. Etter, J. E. Selle

HIGH-PURITY cerium metals, supplied as 99.9 pct pure, by various suppliers, vary widely in melting points and in the shapes of the differential thermal-analysis curves obtained as the samples are heated. A definite correlation is noted between the melting point, amount of premelting, and the number of inclusions present in the material. Briefly, the DTA apparatus, previously de-

Jan 1, 1964

By Brian W. Mackenzie

Since mineral economics is often coupled with mining engineering in the solution of mineral industry problems, it is important that the principles of this science be a part of the mining engineer's education. Essentially, mineral economics is the application of economic principles to analysis of the multistage process by which minerals are converted from geologic resources to marketable products. In some instances, it may require only the analysis of case studies from a well- developed economics core. In others, however, it requires special skills, because some aspects of the mineral conversion process--such as mineral occurrence, exploration investment and depletion-have no complete parallel in general economics. The mining engineer has been an important contributor to the analysis of mineral economics problems because of his special knowledge of the mineral industry.

Jan 1, 1971

By G. Stuart Jenkins

Conditions at the properties of the Consolidated Coal Co. had reached a point where improvements were almost impractical. The mines, sunk years ago, had shafts and entries so small as to preclude the use of large mine cars. A radical change was necessary in the type of mining and also in the type of mine to accommodate such haulage units. After due consideration, the company decided to enter the field of trackless mining, utilizing belt conveyors and chain-flight conveyors, the belt conveyors to take the long haul, and the chain-flight conveyors to be used for gathering. It was decided not to sink a shaft, hut to drive a slope on an inclination of 17½°, which the company believes to be about the limit on which coal can be carried on a belt without rolling back unduly. Sinking the Slope It was decided, in sinking the slope, to make an opencut until rock was reached, which was some 65 ft. below the surface, and then to drive the slope through an inclined tunnel from that point. In making the open-cut, the schedule called for the removal of about 25,000 cu. yd. of clay, holding the banks on an inclination of one and a half to one, the thought being to make this cut in a minimum of time, put in a reinforced concrete slope, and then back-fill. Difficulty was experienced because the clay was of a sort that was called "subsiding base" material by contractors visiting the job. In other words, a "squeeze" occurred, the pressure causing the floor of the cut to move up just as it does in many mines where the coal is underlain by thick fire clay and inadequate pillars have been left. It was necessary to move the waste banks back from the edge of the cut 700 or 800 ft., and even then the floor could not be controlled, the result being that almost 100,000 cu. yd. of clay was handled before the rock was reached. A concrete slope was then rapidly constructed, using 95 tons of special-shaped reinforcing iron. The floor of this slope was made 30 in. thick at the bottom, and 17 in. thick at the top, the sidewalls being 18 in.

Jan 1, 1940

By G. Stuart Jenkins

Conditions at the properties of the Consolidated Coal Co. had reached a point where improvements were almost impractical. The mines, sunk years ago, had shafts and entries so small as to preclude the use of large mine cars. A radical change was necessary in the type of mining and also in the type of mine to accommodate such haulage units. After due consideration, the company decided to enter the field of trackless mining, utilizing belt conveyors and chain-flight conveyors, the belt conveyors to take the long haul, and the chain-flight conveyors to be used for gathering. It was decided not to sink a shaft, hut to drive a slope on an inclination of 17½°, which the company believes to be about the limit on which coal can be carried on a belt without rolling back unduly. Sinking the Slope It was decided, in sinking the slope, to make an opencut until rock was reached, which was some 65 ft. below the surface, and then to drive the slope through an inclined tunnel from that point. In making the open-cut, the schedule called for the removal of about 25,000 cu. yd. of clay, holding the banks on an inclination of one and a half to one, the thought being to make this cut in a minimum of time, put in a reinforced concrete slope, and then back-fill. Difficulty was experienced because the clay was of a sort that was called "subsiding base" material by contractors visiting the job. In other words, a "squeeze" occurred, the pressure causing the floor of the cut to move up just as it does in many mines where the coal is underlain by thick fire clay and inadequate pillars have been left. It was necessary to move the waste banks back from the edge of the cut 700 or 800 ft., and even then the floor could not be controlled, the result being that almost 100,000 cu. yd. of clay was handled before the rock was reached. A concrete slope was then rapidly constructed, using 95 tons of special-shaped reinforcing iron. The floor of this slope was made 30 in. thick at the bottom, and 17 in. thick at the top, the sidewalls being 18 in.

Jan 1, 1940

By H. R. Banks

The Sullivan concentrator has completed 20 years of operation. During this period a considerable amount of data has been accumulated concerning the characteristics of several types of flotation machines in their application to the problem of the differential separation of the lead sulphide, zinc sulphide and, in more recent times, iron sulphide, in the ore from the Sullivan mine. It is the author's intention to sketch briefly experiences encountered when the several types of flotation machines were introduced into the flow. Original Flotation Equipment and Ore The original flotation equipment consisted of four 18-cell lead-roughing machines, whose concentrate was cleaned in an 8-cell and recleaned in a similar 8-cell machine. Zinc concentration was carried out in four 18-cell machines. One 8-cell zinc re-treatment machine received the reground zinc middling. The 168 cells handled some 3000 tons of original daily feed. These cells were of the standard Minerals Separation type, equipped with 24-in. impellers. Spindles were driven through geared line shaft at a speed of 255 r.P.m. The impellers were the 45' type, except for the last three cells of the zinc-rougher machines, which were of sub-aeration type, with full bottom shroud and half shroud for the top side of the impellers. Four-pound air was introduced. This recognition of the benefit of intensified flotation operation for "gleaning" was an important phase in the early operation and will be discussed further on in this paper. Sullivan ore during this period is described as a finely disseminated mixture of four sulphides, totaling go per cent made up of 13.6 per cent galena, 14.4 per cent mar-matite, I per cent pyrite and 61 per cent pyrrhotite. The specific gravity of the ore was approximately 4.4. There has been a gradual change in the ore content. The 10 per cent of nonsulphide constituents has increased to between IS and 20 per cent and all three sulphides have dropped somewhat. Added equipment and changing technique have made possible the treatment of 8000 tons per day of mill feed instead of the 3000 originally handled. Special Features of Flotation at Sullivan Sullivan flotation differs greatly from customary practice. The very heavy return of lead rougher middling and lead cleaner tailing, totaling at times 125 per cent of the new feed tonnage, has been the subject of much investigation. The practice is still employed. This operating condition is mentioned because it is the author's belief that the in-

Jan 1, 1947

By H. R. Banks

The Sullivan concentrator has completed 20 years of operation. During this period a considerable amount of data has been accumulated concerning the characteristics of several types of flotation machines in their application to the problem of the differential separation of the lead sulphide, zinc sulphide and, in more recent times, iron sulphide, in the ore from the Sullivan mine. It is the author's intention to sketch briefly experiences encountered when the several types of flotation machines were introduced into the flow. Original Flotation Equipment and Ore The original flotation equipment consisted of four 18-cell lead-roughing machines, whose concentrate was cleaned in an 8-cell and recleaned in a similar 8-cell machine. Zinc concentration was carried out in four 18-cell machines. One 8-cell zinc re-treatment machine received the reground zinc middling. The 168 cells handled some 3000 tons of original daily feed. These cells were of the standard Minerals Separation type, equipped with 24-in. impellers. Spindles were driven through geared line shaft at a speed of 255 r.P.m. The impellers were the 45' type, except for the last three cells of the zinc-rougher machines, which were of sub-aeration type, with full bottom shroud and half shroud for the top side of the impellers. Four-pound air was introduced. This recognition of the benefit of intensified flotation operation for "gleaning" was an important phase in the early operation and will be discussed further on in this paper. Sullivan ore during this period is described as a finely disseminated mixture of four sulphides, totaling go per cent made up of 13.6 per cent galena, 14.4 per cent mar-matite, I per cent pyrite and 61 per cent pyrrhotite. The specific gravity of the ore was approximately 4.4. There has been a gradual change in the ore content. The 10 per cent of nonsulphide constituents has increased to between IS and 20 per cent and all three sulphides have dropped somewhat. Added equipment and changing technique have made possible the treatment of 8000 tons per day of mill feed instead of the 3000 originally handled. Special Features of Flotation at Sullivan Sullivan flotation differs greatly from customary practice. The very heavy return of lead rougher middling and lead cleaner tailing, totaling at times 125 per cent of the new feed tonnage, has been the subject of much investigation. The practice is still employed. This operating condition is mentioned because it is the author's belief that the in-

Jan 1, 1947

By E. C. Lee

The safety of mine workers has received more attention from both State and Federal law-making bodies than any other industry, a fact that shows clearly the hazardous nature of the industry. The last, but by no means the least, of the measures adopted for the protection of mine workers, is workmen's compensation legislation. This is proving to be a powerful instrument for greater safety in the industries, from the fact that special stress is laid not on how the accident happened or who may have been responsible for it, but on how badly the employee is hurt by it. The injured person does not have to employ lawyers to prove his case, because- the mere fact of his employment is proof of his right to compensation. The immediate effect of such legislation is the certainty confronting the mine operator that he must. pay out large sums for every accident, regardless of its cause, thus adding materially to the cost of the production of his coal. his fact furnished to the operator the strongest incentive to reduce the causes of accidents; not that the operator has ever lacked reasonable consideration for the welfare of his employees and a proper humane interest in their safety, but his engrossmentin earning his daily livelihood has been so great that he has not felt that he had the time to devote to the safety of the operation. This time he must now find because of the actual cash value of the prevention of accidents in his mines. This agency alone proved inadequate to bring about a material improvement because operators have always been willing enough to improve safety conditions when possible to do so within reasonable limits of their financial ability. The requirement in the Workmen's Compensation Laws of several of the States, that the mine operator shall insure as a guarantee of his ability to meet his compensation obligations, has furnished the needed incentive, moral and financial, necessary to the prompt and effective dissemination of a more general knowledge of the causes and

Jan 1, 1918

By Joseph Pogue

THE past year in the petroleum industry was one of overproduction, rising inventories, low prices, and meagre to vanishing profits. This outcome was the result of a long period of intensive and uncompensated effort on the part of both financial and industrial interests, to stimulate supply on the theory that the primary problem facing the petroleum industry was the development of an adequate reserve of raw material to protect a large and ever-growing investment. The stimulus was applied in various forms and through diverse channels: capital had, long flowed into the industry in excessive amounts under the attraction of large expected profits; the price level for crude petroleum had persistently been influenced -by speculative considerations, with the result that prices declined slowly in periods of flush production and were quick to advance in anticipation of statistical improvement, thus maintaining a superfluous degree of stimulus on wildcatting and on drilling; speculation in inventories had led to the unsound, or at least unusual, business practice of accumulating huge stocks of oil; and, above all, the industry had directed the potent force of technology to the expansion of supply and achieved radical results in accelerating oil discovery, speeding up the rate of oil extraction, and enlarging the recovery of gasoline and lubricating oils from the raw material. In short, the economic conditions of 1927 were exactly those to which the objectively driven enterprise of the petroleum industry had long been directed; and the undesirable financial consequences arising. therefrom reflected no lack of success in what had been set out to be achieved, but rather the failure to have established concurrently the necessary means of economic control to prevent the immediate conversion of reserves into current supply, and likewise the oversight in neglecting to apply the technological force to the enlargement and diversification of the market for petroleum products. Perhaps, when viewed in its longer perspective, 1927 will stand out as the turning point in the economic policy of the petroleum industry, when the technique of rationalizing production made its, initial claim for recognition.

Jan 1, 1928