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By Edward L. Clark, Garrett A. Muilenburg

THE first record of the discovery of iron ore in Missouri was Marquette's observation in 1673 of brown iron ore, or limonite, in the Mississippi River bluffs just north of the mouth of Apple Creek in southeastern Perry County. There is no record of any attempt to mine or smelt Missouri iron ores until 1815, when the Ashebran furnace was erected at the Stouts Creek shut-in near Arcadia, Iron County. Some limonite was treated in this furnace, the first iron furnace west of Ohio, but most of the ore was hematite from Shepherd Mountain and adjacent deposits. Eight years later, in 1823, the Perry furnace five miles north of Caledonia, Washington County, was constructed to smelt limonite ore. It

Jan 1, 1955

By W. H. Howard

As the result of a series of analyses and volume determinations of gases discharged from the converters at the Garfield Smelting Co.'s smelter at Garfield, Utah, it was found that a considerable amount of lead fume was escaping from the stacks of the converter plant, and that if this lead could be recovered at a reasonable expense an attempt should be made to collect it. Two methods suggested themselves: (1) filtration through bags; (2) electrical precipitation of the condensed fume by a Cottrell plant. Filtration through Bags Tests were made in filtering converter gases through the ordinary woolen bags of lead-smelter bag houses to determine how long such material could withstand the corrosive action of the gases. While blowing on white metal only, the fabric was usually destroyed in 10 to 14 hr. In tests conducted in filtering gases when blowing on matte or slagging stage exclusively and when relatively considerable lead was being volatilizcd, bags in one instance lasted 60.5 hr. It therefore was evident that the Garfield converter gases did not contain in themselves sufficient neutralizing elements for the purpose of direct bag filtration, even during the slagging stage. Such results were more or less anticipated, but it was thus proved that under all conditions of blowing Garfield mattes a very considerable amount of neutralizing agent, zinc oxide or lime, or both combined, as in the Sprague process, would be required to render bag filtration possible. Again, owing to the constantly changing quantities of SO3 from a given battery of converters, depending on the number blowing at a given time and on the stages of the blow, it would be practically impossible to feed automatically the required amount of neutralizer. In order to safeguard the bags sufficient neutralizer would have to be continuously added to meet the maximum SO3 output, thus wasting neutralizers and giving an undesirably diluted final product. Such a condition is entirely different

Jan 1, 1915

H. H. Bleakney (Dept. of Mines and Technical Surveys, Ottawa, Canada)— The work of Dr. Machlin and his colleagues at Columbia University is so scholarly that one hesitates to take issue with them. Nevertheless the writer feels compelled to enter a demurrer to the mechanism of intercrystalline cracking proposed in this paper. The principal obstacle to its acceptance is found in its preoccupation with purely mechanical influences and its disregard for the chemical effect of impurities. The writer believes that the destruction of metallic cohesion by concentration of impurities at the grain boundaries is a necessary and sufficient condition for the development of intercrystalline cracking; and he believes that discussion of the numerous mechanical explanations proposed should wait until some valid objection to the chemical hypothesis has been advanced. It is nearly twenty years since Gillett" drew attention to the possibility that the chemical influence of precipitation might be the cause of intercrystalline cracking. As early as 1935, Greenwood'" remarked that grain-boundary precipitation of impurities in lead appeared to promote intercrystalline cracking. Again in 1939, Scott commented as follows on a paper by Thielemann and Parker:'" "There are at least two familiar phenomena that can influence grain-boundary cohesion: 1) intergranular oxidation; and 2) grain boundary precipitation. An important consideration in this work, therefore, is to determine which, if either, of these factors is responsible for the low values of cohesive strength observed." In 1952. the writer presented evidence," some original and some abstracted, which indicated that in copper, silver, aluminum, lead and iron, intergranular cohesion was a function of the purity of the metal. In 1954 Glen, discussing a paper by Ridley and Tapsell14 indicated his belief in a precipitation mechanism for the intercrystalline embrit-tlement of molybdenum steel and suggested that with an absolutely pure metal it would be almost impossible to obtain an intercrystalline crack. This suggestion has

Jan 1, 1959

By R. M. Hudson

Equilibrium constants have been determined for the jeaction C (in steel) + H2O = CO + H2 as a function of carbon content (0.013 to 0.74 ujt pct) and temperature (1200° to 1800°F) by using a flow system in which the water-vapor content of various gas mixtures containing hydrogen, carbon monoxide, and nitrogen was systematically controlled. The equilibrium partial-pressure ratio K1 = PcoPH2/PH2O was obtained for two low-carbon steels and four Fe-C binaries from a series of runs made at each temperature. By comparison of Ki with the analogous ratio for the reaction C (graphite) + H2O = CO + H2, the activity of carbon in steel (ac) was comDuted for each temperature and carbon content studied. From these data values of the equilibrium constants for two other carburization-decarburiza-tion reactions of importance were estimated. The chemical compositions of the two steels and four Fe-C binaries used are given in Table I. Specimens of Steel E were cut from a 0.035-in.-thick commercially box-annealed and temper-rolled lot of a low-carbon low-metalloid steel. Steel F was a commercially hot-rolled rimmed steel that was cold-reduced at the Laboratory to a 0.059-in. thickness. Fe-C binaries A, B, C, and D were vacuum-melted and poured, hot-rolled, pickled, and cold-reduced at the Laboratory to furnish specimens 0.035 in. thick. Sheet specimens were cut from all lots to approximately 3/4 by 3 in. by gage and were vapor-degreased with trichlo-roethylene and weighed before heat treatment. Heat treatments were carried out in a hinged-top Hevi-Duty electric furnace with a Vycor-glass tube. When the furnace was at the desired

Jan 1, 1965

In 1776 two Franciscan friars, Dominguez and Escalante, started to find a direct route from Santa Fé to Monterey, and in their misguided wanderings northward they reached Timpanogos, now known as Utah lake, where they heard of a much larger body of water to the northwest, of which they were told that it was extremely salt.* They never saw this great lake, because they passed south of it on their way to the Pacific coast. The Dead Sea of North America was discovered in 1835 by James Bridger, a trapper. He and other trappers had ascended the Missouri and had reached the Bear river. A discussion arose as to the course of this river, and a bet was made, to settle which Bridger followed the Bear river to its source, in the Uintah mountains, and from the crest of the watershed he caught sight of the lake, to which he then descended.† He tasted the briny water of the inland sea and wondered if it were an arm of the Pacific Ocean. The lake was first seen by the Mormons on July 24, 1847. A band of them, numbering 145 and led by Brigham Young, had migrated from Missouri in search of a new home in the western wilderness. It is recorded that when Brigham Young stood on the summit of the pass over the Wasatch range and saw the valley of the Jordan outspread before him, he exclaimed: "It is enough. This is the right place". He had seen it in a vision, so he claimed, and foresaw the future glory of the new Zion that was to be planted in that happy

Jan 1, 1932

By Alfred Weiss

The Daniel C. Jackling Award, established in 1953, is presented for significant contributions to technical programs in mining, geology, and geophysics. This year's recipient, Alfred Weiss, was cited "For his pioneering achievements in applying systems analysis, operations research, and computer methods in exploration, mining, and environmental control; and in disseminating the new technology to the worldwide mining community; and for his lecture, “New Concepts and Tools in Decision-Making.”

Jan 1, 1979

We regret to advise that, owing to unusual pressure of business at our printers, Volume TAX will not be ready for distribution so early as was announced in the last Bulletin. It will probably be distributed in November. Volumes LVII and LVIII were mailed during the month of August to all members whose dues were paid on Aug. 1; members who failed to receive their Transactions within a reasonable time are requested to notify the Secretary. In the case of members who have recently changed their addresses, the Transactions Were sent-to addresses on record on Aug. 19; those who did not notify .us of change of address until after Aug. 19 will find their Transactions at the old address.

Jan 10, 1918

By G. J. Roe

Drawing largely on desulfurizing practices which have been developing abroad in the last several years, this paper will cover the main ways in which producing steels with low sulfur provides appreciable benefits -- beginning with improvements in ingot processing and carrying over into improved product properties, in particular cleanliness, formability, notch toughness and weldahility. Because the raw materials and fuels used in steelmaking are sources of sulfur and the removal of this element is difficult, sulfur has tended to be accepted as an unavoidable incidental contaminant of steel. Although it was early recognized that sulfur significantly affects several mechanical properties, the main concern was with its effect on hot shortness. Concentrating on countering this effect, operators have traditionally added manganese in sufficient multiples of the sulfur content to form manganese sulfide and thus avoid iron sulfide formation, the assumption being that the steel would then be acceptable in terms of both processing and mechanical properties.

Jan 1, 1972

Jan 1, 1931

NEW MEMBERS The following list comprises the names of those persons who became members during the period of Mar. 10, 1917, to Apr. 10, 1917. ADKINS, HARVEY S Adkins & Denham, Engineers, Box 291,. Hazard, Ky. ANDERSON, ARTHUR P .... Leaser, Gibson Copper Co., Box 1978, Miami, Ariz. ARNOLD, EDWARD C... Min. Engr., Chief Engr., Federal Lead Co., Flat River, Mo. ASKIN, THOMAS B. H., Ball Mill Expert, Inspiration Cons. Copper Co., Miami, Ariz. BAIN, C. KREMER Butte & Superior Mining Co., Butte, Mont. BAKER, WILLIAM A.,.JR., Vice Pres. & Sales Mgr., The Georges Creek-Parker Coal Co., 306 North Gay St., Baltimore, Md. BOOTH, GEORGE H Mech. Engr., Inspiration Cons. Copper Co., Miami, Ariz. BRIDGMAN, G. TEMPLE, Asst. Consulting Mining Engr., Guggenheim Bros., 120 Broadway, New York, N. Y. BROOKS, CHARLES A Mine Surveyor, Homestake Min. Co., Lead, So. Dak. BUTCHER, FREDERIC E., Secretary, Missouri Metals Corpn., 1945 Railway Exchange Bldg., St. Louis, Mo.

Jan 5, 1917

By Y. C. Liu, R. H. Richman

Deformation and recrystallization textures of the a solid solutions of Cu-P, Cu-As, and Cu-Sb alloys are examined as a function of composition. It is found that the deformation texture of copper is unckanged up to a composition of 0.43, 0.41, and 0.24 at. pct of phosphorus, arsenic, and antimony, respectzvely, and then the transition to the 70 : 30 brass type of deformation texture proceeds linearly as the logarithm of the solute content. Recrystallization textures consist of strong, new components that do not all bear the usual<111> rotational relation to the deformation components. The dependence of the deformation texture transitions and the recrystallization orientations upon composition and solute-element type is discussed. A systematic evolution of individual recrystallization components in the annealing texture of copper was portrayed as a function of germanium or tin content in a previous study.&apos; Similar patterns of tex-tural change have been observed with copper-zinc alloys,2 and in less detailed studies of other systems.3,4 In fact, most of the literature dealing with preferred orientations in copper alloys indicates that the influence of solute elements upon textures in copper is of one general type. As the alloy content of copper is increased, the deformation texture changes from the copper type to the 70:30 brass type, and the annealing texture undergoes a comparable change from the (001) [ loo] orientation of unalloyed copper to the {113} <211> type of 70:30 brass, with the notable exception of copper alloyed with Periodic Subgroup V-B elements.4-8 In almost every case it is possible to describe the reorientations after annealing as 30 to 40 deg rotations about <1ll> poles of the deformation components. Since there is apparently not much difference in the final textures of the copper binary systems already investigated, only a limited variety of preferred orientations has served as the basis for current theories of the origin of annealing textures. In order to test the validity of the proposed theories, and the possibility that the <111> rotations are not unique, it would be most desirable to study the reorientation relationships of additional, and heretofore unanalyzed, recrystallization components if such components exist. Examination of the literature reveals a good deal of uncertainty concerning preferred orientations in copper alloyed with elements in Subgroup V-B of the Periodic Table. Phosphorus is known to inhibit the cube texture in copper when present in amounts as low as 0.01 wt pct,8 but the recrystallized matrix that occurs instead of the cube orientation was reported as either random or weakly textured, with orientations not observed in Cu-Zn, Cu-Ge, or Cu-Sn alloys.4-9 A Cu-0.75 at. pct As alloy apparently contained, along with the (001)[100] and (113) <211> type of recrystallization components, {110} <112> and (110) <001> components, whereas an almost random distribution of orientations was found in alloys of higher arsenic content.4 A {110} <001> component also appeared in rolledand annealed Cu-Sb alloys, but otherwise the recrystallization textures of Cu-Sb alloys seem to con-

Jan 1, 1962

Jan 1, 1967

By J. L. McK. Yardley

There are two general classes of problems in connection with electric furnaces. First, those relating to the best utilization of the electrical power inside the furnace; second, those connected with the bringing of the electrical power to the point where it is to be utilized. Referring particularly to the latter class of problems, many calculations have been made, covering a wide variety of furnaces, to check the electrical capacity and power factor found from test. The following analysis, made for the purpose of determining the maximum capacity and approximate performance of a new furnace, to operate at 160 volts on a 60-cycle circuit, may be of interest. The first characteristic necessary to determine is the inductance, since this is the factor that limits the amount of power which can be put into the furnace. Inductance is calculated from the dimensions of the furnace, according to formulas of the U. S. Bureau of Standardsll as follows. Formula 99, for mutual inductance, is: M = 2l [log 2l/d-1 +d/l] Formula 103, for self-inductance, is: Both of these formulas are approximations which are nearly correct when 1 is great compared to d or R. 1 = length of circuit, in centimeters, d = separation between the conductors, in centimeters, R = geometric mean radius of conductors. For a circular tube, R = the radius of the circle. For a solid circular conductor, R = 0.7788 X the radius of the conductor. For a rectangular conductor, R = 0.2235 X (a + b), a being the length, and b being the width of the rectangle. To calculate the inductance of a three-phase circuit, it is customary to figure the inductance of one leg. In circuits where the three conductors

Jan 1, 1920

By J. C. Bartlett

(Read at the Wilkes-Barre Meeting, May, 1877.) THE following discussion was suggested by an experiment of Mr. Krom, the manufacturer of air-jigs, to illustrate the superiority of air over water as a medium of concentration. The paper is written in the interest of no system of concentration, but simply to test the experiment, and, perchance, to add something to the general fund of information on the subject. To speak of testing an experiment by a theoretical discussion, may seem a misuse of terms, but the theories concerning falling bodies and the resistance of fluids are pretty well crystallized into laws, which may properly be used to show where experiments which seem to refute them were improperly performed, and that instead of refitting they only corroborate. It is well known that a sphere of galena 1/8 inch in diameter, and a sphere of quartz 1/2 inch in diameter, are equal falling in water ; that is, these two spheres, being placed together in a column of water at rest or in motion, will practically remain together, falling or rising together, or remaining in suspension. Mr. Krom, to show that these

Jan 1, 1878

By Walter O. Snelling

Continuation of the discussion of the paper of WaltER o. SnelLIng, presented at the New York and San Francisco meetings, February and September, 1915, respectively, and printed in Bulletin No. 100, April, 1915, pp. 695 to 704 and Trans., li, pp. 657 to 671. A. C. McLaUghlin, San Francisco, Ca1.—It seems to me that Mr. Snelling&apos;s work, if it is what it appears to be, is one of the most important contributions to petroleum technology that has been brought out in the last 25 years. If his end products are what they seem to be, he has made. a discovery, which, in my judgment, will revolutionize the petroleum industry. As to industrially carrying out these processes I do not think there is the slightest difficulty, for I have had some work recently where crude oils were handled successfully at a temperature of 750" F, and pressure of 750 lb. per square inch. William A. WillIams, San francisco, Ca1.—What metal did you use, Mr. McLaughlin? A. C. McLauGHILIN.—Ordinaly seamless tubing, extra strong. William A. Williams.—Tests were made in Dr. Rittman&apos;s experimental plant at Pittsburgh, upon samples of residuum furnished by Mr. Bell, the residuum being the remainder of the crude oil after the lighter fractions had been removed. After the material had been run through Dr. Bittman&apos;s plant, yields of from 43 to 58 per cent. of material, boiling under 150" C. were obtained. The distillate had a peculiar odor, due to the presence of benzene, toluene, and other unsaturated hydrocarbons. W. N. Best, New York, N. Y.—What is the difference between the Rittman and the Snelling process or system? William A. Williams.—he fundamental difference is that reactions take place under relatively higher temperatures and pressures and with none of the oil present in its original or liquid state, while the reactions secured by Mr. Snelling and other investigators have been from the liquids in the presence of some vapors. Under such conditions as Mr. Snelling operates, the temperatures and pressures used are limited and the flexibility in the control of these variables is extremely limited when compared with the Rittman process.

Jan 1, 1916

By E. H. Crabtree, T. C. King

THE ferrosilicon grinding unit at the Central Mill of the Eagle-Picher Mining & Smelting Co. near Picher, Okla., was completed in March 1947. The object of the plant was to grind pigs of ferrosilicon, having a size of approximately 1 ½ by 4 by 12 in. and an analysis of 85 pct Fe and 15 pct Si, to approximately 100 mesh by crushing and wet grinding in a ball-mill classifier circuit. The minus-loo mesh ferrosilicon had formerly been purchased, and was used as medium in the heavy media process for treatment of lead-zinc ores. From the standpoint of dollars and cents, the cost of minus-100 mesh ferrosilicon was roughly $40.00 per ton more than pigs of the corresponding alloy delivered to the mill. Estimated wet grinding costs were considerably below this figure. The possible saving in cost of make-up medium for the cone plant was particularly attractive since, at that time, the plant losses averaged over four tons of minus-100 mesh ferrosilicon per day. Aside from the probable saving on the grinding charge, the need for such a unit was twofold. First, periodic fluctuations in the differential between the top and bottom densities of the cone were thought to be detrimental to metallurgy. There was little doubt that an intermediate differential existed at which the heavy media separation was most efficient, representing a compromise between concentrate grade and tailing loss. Furthermore, if a finer, but considerably cleaner, medium could be obtained, there was the possibility that the differential could be decreased without increasing the viscosity, or conversely, the viscosity of the medium decreased without increasing the differential. Preliminary to experimental work aimed at pegging the cone differential and circulating medium viscosity at whatever values were found to be most efficient, it was essential to have control over both the non-magnetic content of the medium and the particle size of the contained ferrosilicon. The latter was possible by means of a grinding unit at the mill. Second, whereas the ferrosilicon alloys are made by a number of manufacturers, only two, to our knowledge, grind it in any quantity for use in heavy media plants. For all practical purposes, the Central Mill was limited to one source of supply, a particularly vulnerable position. In case the supply was cut off, it was thought that pigs of the 85 pct Fe, 15 pct Si alloy could be obtained elsewhere, providing means of grinding them was available. There was no published information available covering wet grinding of ferrosilicon. Dry grinding in batch mills and in continuous mills with air classification was being practiced, but the cost of grinding was excessive and the dust condition objectionable. It appeared that primary and secondary crushing was no particular problem, providing heavy duty equipment was used;

Jan 1, 1947

ZAY JEFFRIES (communication to the Secretary*).-Having seen Mr. Ruder&apos;s micrographs of electrolytic iron, I am of the opinion that the tentative explanation offered verbally is correct. Mr. Ruder has informed me that both of the samples were cooled in the furnace. The structures as shown in Figs. Band C resulted from the last cooling through the temperature range near 900° C. Assuming that the rate of cooling through this range was the same in both cases, the differences in struc-ture of the gamma iron in the two samples must have ]:)]-ought about, in some way, the variations in grain size and grain shape shown in Mr. Ruder&apos;s micrographs. Even though there is practically no temperature gradient in muffle-furnace treatment during the "soaking" period, during both heating and cooling, there is a temperature gradient. Fig. B should normally have been fine-grained prior to the last cooling, due to the comparatively low maximum temperature to which it was heated (1,000° C.). On cooling through the allotropic change point at 900°, these small gamma grains, iii conjunction with the temperature gradient, should form an ideal condition for germination. Germinant grains should form near the surface of the sample (the-colder portions) and the small gamma grains would be progressively absorbed as they changed into non-gamma iron. The elongated grains in Fig. B, converging toward the axis of the piece of iron, indicate that germinant grains first formed near tine surface and advanced their boundaries toward the interior of the sample. The gamma grains in Fig. C, however, should have been large, prior to the last cooling, due to time high temperature treatment (1,250 to 1,300° C.). In other words, to use one of Prof. Howe&apos;s expressions, the crystalline organization should be very complete and the change from gamma to non-gamma iron on cooling would take place reluctantly. This resistance to change from gamma to non-gamma iron would probably be greater in the interior of the large grains than at their boundaries. Non-gamma iron centers or nuclei would probably form at a great many places, at the grain boundaries, thus masking the influence, to a large

Jan 6, 1917

By Harlan W. Nelson, James B. Purdy

A study of data obtained during laboratory tests to determine the suitability of bituminous coals for use in residential underfeed stokers of the clinkering type has led to the following general conclusions: 1. Performance data obtained during the test furnish useful and practical information upon which to judge the performance of stoker coals. 2. Conclusions derived from the results of evaluation tests are in general agreement with use experience of the coals in the field. The method is of practical use in this regard. 3. Few direct relationships were found between data furnished by the evaluation test and determinations by standard laboratory tests. This is particularly true with regard to coke formation and clinker formation, two of the most important factors in determining the degree of satisfaction to be obtained in applications of the small underfeed stoker. It has not been the intention in this paper to prescribe this evaluation test as the best method for the evaluation of coals for use in residential stokers. That there are other test methods having similar objectives serves to point out the necessity for full-scale laboratory tests. At the present time, a standard test procedure for the evaluation of coals for use in residential stokers is not available. For the past several years a joint committee, appointed from the membership of the Residential Stoker Committee of Bitulninous Coal Research, Inc., and from the Engineer- ing and Research Committee of The Stoker Manufacturers Association, has been working to develop a standard procedure for testing and evaluating bituminous stoker coals. This procedure has been completed to the extent that it has been drawn up in tentative form. It is now planned to install the equipment in several laboratories and to run check tests, using portions of identical lots of coal, to determine the degree of reproducibility offered by the method. Completion of this standard test procedure should greatly facilitate the evaluation of coals for use in residential stokers. Acknowledgments The cooperation of coal operators sponsoring the coal evaluation tests, in granting permission to use data and results from their tests, is gratefully acknowledged. Acknowledgment is also made to Carroll F. Hardy, Chief Engineer, Appalachian Coals, Inc., for his interest and timely suggestions on the preparation of this paper. Special thanks are due to Ralph Sherman, Assistant Director, Battelle Memorial Institute, who was largely responsible for development of the evaluation procedure, for helpful suggestions and advice. References I. H. A. Sherman: The Evaluation of Coal for Use in Domestic Stokers. Univ. of Ill., Eng. Experiment Station, Circular No. 39 (1939). 2. . Q. Shotts: The Relation of Free- swelling Indexes to Other Characteristics of Some Alabama Domestic Stoker Coals. TP 2314, Coal Tech., (Feb. 1948); Trans. AIME (1948) 177, 502. 3. . J. Helfinstine and C. C. Boley: Correlation of Domestic Stoker Combustion with Laboratory Tests and Types of Fuels 11. Combustion Tests and Preparation Studies of Representative Illinois Coals. Ill. State Geol. Survey, Re1. of Zntlestigations No. 120 (19467 ) p. 35. DISCUSSION E. R. Kaiser*—AS a former fuel engineer assigned to residential stokers at Battelle, the writer has read with considerable interest the paper by Messrs. I&apos;urdy and Nelson. It is gratifying to note that earlier test techniques have been developed and that criteria found important in the years 1935 to 1938 are still important in judging the performance of stoker coals for residential heating. The authors have plotted a number of the primary coal data singly against performance data of the stoker in an effort to establish relationships. Unfortunately, wide scattering of points usually resulted, which did not illustrate what experience generally indicates to be the case. For example, Fig 3 indicates almost no trend in the percentage of released ash converted to clinker with change in ash-softening temperature. Other factors, such as fuel bed temperatures and zones of heat release must have influenced the results. In the present state of our knowledge, we cannot explain all of the reasons why suitable stoker coals perform satisfactorily, nor why one satisfactory coal may be better than another. It would therefore

Jan 1, 1950

By O. Saeki

Dolomite-fluxed pellets have been produced at Kakogawa Works, Kobe Steel, Ltd., since August, 1975. The pellets contain 5.5 % dolomite and have a basicity (CaO/Si02) of 1.3. By charging 30-50 % of dolomite-fluxed pellets into the two large blast furnaces at Kakogawa, a low fuel rate of 450 kg per ton of pellets has been achieved with better furnace permeability and gas utilization. Laboratory studies show that dolomite-fluxed pellets have excellent high temperature properties, and that their softening and melting-down temperatures are about 50°C higher than those of lime-fluxed pellets, and that reducibility at 1250°C is increased from 25 to 70 %.

Jan 1, 1977

By J. Elmer Thomas

If 1929 witnessed a growing realization on the part of the oil industry that supply must be balanced against demand, 1930 proved conclusively that excessive inventories constitute a price depressant even with balanced conditions. Increased attention was certainly paid to economic considerations last year, and the achievement of holding daily crude production, with a constantly mounting potential, to levels 500,000 bbl. below the output of the summer before, deserves special mention. The ill-advised accumulation, however, of gasoline stocks, at least 10,000,000 bbl. larger than necessary, nullified the restraint exercised by the producers and finally necessitated drastic downward price revisions. An event of special significance was the appointment by the Federal Oil Conservation Board, last March, of a temporary Committee on Petroleum Economics that attempted a forecast of demand, an estimate of supply, and an allocation of the latter between the principal producing states. Thus for the first time was an economic program for an entire basic industry drafted by an independent body under the auspices of the Federal Government. The report was widely discussed and generally approved, but its schedules were not adopted by the refining division nor by oil producers in the State of Texas until too late to contribute to the industry&apos;s prosperity during 1930. If the restraint of November had been exercised in May a profitable year might have been the result: The gasoline price war in California during June, however, illustrated the point that even with a fairly sound statistical position insistent pressure to expand normal marketing outlets must result in losses to all concerned. The balanced program so painfully attained by producers must be maintained by refiners and distributors to be completely effective. Again in November the Federal Oil Conservation Board, acting on the request of the directors of the American Petroleum Institute, called its Committee on Petroleum Economics back into existence to prepare a new estimate for the next six months. An economic program adopted in advance of the winter period of accumulating inventories may aid this large and essential industry toward the profits to which it is entitled

Jan 1, 1931