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By P. B. Baxendell

The appraial of producing properties and profitability ntzalysis of a proposed capital expenditure are based on the same principles. In both problems a projection of future cash income is. cornpared to one or more capital expenditures. Several different methods have been in use either to compute a price to obtain a given earning power on the investment or to compute the earning power which will result from a given capital expenditure. One of these, the "Average Annual Rate of Return" method, computes in a simple manner the ratio of the present value of the future earnings after amortization to the present value of the undepreciated balances of the investment over the life of a project. This method, not well known generally, appears to have some rather unique advantages in reducing the computation work required, eliminating trial-and-error solutions, and providing a more accurate answer when applied to oil industry investments subject to the unit-of-production basis of amortization. Its derivation is given and its versatility demonstrated in the solution of certain everyday investment problems. A number of charts, useful in applying this method to profitability analysis and appraisal work, are provided. The current trend in the market values of producing properties is shown. INTRODUCTION Making sound capital expenditure decisions requires an objective means of measuring the productivity of individual investment proposals. Since the best measure of the economic worth of such proposals is their ability to produce profits, it is common practice to grade proposed capital expenditures according to their annual earning power as a percentage of the outstanding capital. The same principles which govern the determination of the rate of return of proposed capital expenditures also apply generally to the problem of determining the appraisal value or purchase price of income-producing oil and gas properties. Both problems are of prime importance in the producing phase of the oil business, where management is faced daily with decisions to drill or not to drill certain development wells, or with the determination of the appraisal value of producing properties. The common feature in both problems is that a projection of future cash income is compared with a known or estimated capital investment to determine itsiearning power or annual rate of return. In the case of development drilling, the cost of the proposed well can usually be estimated with a fair degree of accuracy and the problem consists of finding the rate of return on the invested capital. In the case of appraising producing properties, on the other hand, the desired rate of return is usually known in advance and the problem consists of determining the purchase price which, for the given income projection, results in the fequired rate of return. Certain accounting procedures common to the oil and gas producing business make these two problems and their solutions somewhat different from corresponding problems in other industries, and, in certain ways, simpler. The main difference is in the amortization policy which, for oil and gas production, is frequently on a unit-of-production basis, compared to the amortization on a time basis used in many other industries. The purpose of this paper is to discuss briefly the various methods currently in use for the measurement of productivity of invested capital in producing properties and, in more detail, the derivation and application of what will be called the "Average Annual Rate of Return Method". This rather interesting and not too well known method has some very definite advantages in the solution of many problems common to the oil industry. For the sake of simplicity, federal income tax considerations have been disregarded in the examples used, since they do not affect the principles involved. The use of the production payment route in the sale or purchase of producing properties, which has been amply covered in many other publications, has also not been included in this analysis. METHODS FOK MEASUKING THE EARNING POWER OF INVESTED CAPITAL, Of the many different methods used to measure the earning power of invested capital, four are applicable to oil or gas production ventures. Depending on whether these four methods utilize one or two interest rates, and whether a fixed amortization pattern is used, they may be classified as follows.

By AIME AIME

I am happy to welcome you to the twenty-third conference of the National Open-Hearth Committee, and our joint conference with the Blast Furnace Committee, of the American Institute of Mining and Metallurgical Engineers. It is appropriate that, for our fifteenth year anniversary, we should meet in the hotel and the city where this Open-Hearth Committee was inaugurated in 1925. At that first meeting, only a handful of men from a number of steel companies met to discuss ways and means to start a movement to improve the practical and metallurgical technique of open-hearth operations among independent manufacturers, as the United States Steel Corporation had carried on for many years.

Jan 1, 1940

By A. M. STROKG

Discussion of the paper of Charles R. Keyes, presented at the Spokane meeting. Bulletin o. 34, October, 1909, pp. 867 to 903. A. M. STRONG, Bishop, Cal: (communication to the Secretary*) The paper of Mr. Keyes gives us the most complete account of the geology of the borax-deposits in the Death Valley region that has yet been published, and is a valuable addition to the geological literature of a very interesting though little-known territory. During the past ten years I have been over much of the northern part of the country described by Mr. Keyes and the region immediately north of it. Mr. Keyes seems to give the impression that Furnace creek is the northern end of these borate-bearing deposits, but such is not the case. Of the seven principal marsh-deposits which for years furnished the greater part of the borax supply in the manner described by him, four are north of the boundary-line as given on his map. The entire territory immediately east of the Sierra Nevada is composed of a series of sinks, each with a well-defined drainage-area.. Of these, Death valley is the deepest, and its drainage-area one of the greatest. The section given in the paper is typical of any line drawn eastward from the Sierra Nevada. At the lowest point of each of these sinks is a marsh, which, in times of heavy rain-fall in the mountains, is converted into a lake. These marshes always contain borax, which is now considered to have been derived from the washing of the Tertiary lake-beds in the surrounding mountains, of which they form a considerable part. Additional territory which I have studied shows that the boundaries given on Mr. Keyes's map should be considerably extended to the north. Just how far these borate-beds extend I am not prepared to say. J. E. Spurr says of them : 1

Feb 1, 1910

It is particularly interesting at this time to notice the recommendations of F. L. Bishop, clean of the University of Pittsburgh School of Engineering as to the types of engineers required and the training that should be given each type. Dr. Bishop's recommendations, which follow, are substantially the same as the first two recommendations made by resolution at the National Conference recently held to discuss commercial engineering problems. This provided business training for the engineer arid engineering training for commercial enterprises. Dr. Bishop says: "The first type is that of the man who may be called a technician, who is highly trained in science and mathematics, who possess the instinct of the research man and who can devote his entire time to highly technical research problems, either in the research laboratories which are now rapidly being developed in the large industries, or by applying the results of his research to engineering science. For the training of this type of man, there is needed the best of scientific equipment, the members of the faculty must be those who are intimately interested in research problems, and the student himself must have what is sometimes called a mathematical mind. It is doubtful if this type of nan can be developed in a four-year course under existing conditions. In fact, it is probable that such a man can be developed only M. a school which has a thorough graduate department. "The second type which seems to be demanded by the industries is the man who has a broad general knowledge of engineering subjects and can apply that knowledge in an effective way in present engineering problems. He must have ability to command men, a knowledge of the applications of economic principles to industries, and a broad training in the so-called humanities, since he is the man in contact with men of other types in other fields of human activities. He should not be a research man, his training in mathematics need not be of necessity so extensive as that of the research technician, but his understanding of engineering problems should be extensive. Such a man cannot be trained in the ordinary schools because of the artificial conditions which of necessity exist in academic institutions. He must become familiar with the industries while yet, a student in order that he may understand thoroughly the application of his theoretical courses in school and their application to industries, and also that he may become familiar in the formative period of life with the problems of labor and the human factor in engineering. It is in the development of this type of man, who is to become. the manager and operating head of our large manufacturing industries, that the advantages to be derived from the cooperative system of engineering education are needed."

Jan 9, 1919

By F. G. BREYER

ZINC metallurgists continue to follow with keen interest reports of successful results from the continuous retort plants at Palmerton, Pa., and Meadowbrook. W. Va. The new process had already demonstrated its ability to reduce the lead content of the metal and to effect savings in labor and fuel. The past year has shown that the retorts themselves can he built to last long enough so that the retort cost per ton of metal is lower than in past practice with small horizontal re- torts. A number of the latest type of retorts are reported to have been in continuous operation for over 18 months without a failure and are said to be still in good condition. This seems a complete answer to the last question which remained before continuous zinc smelting could he pronounced commercially practicable.

Jan 1, 1932

By AIME AIME

THE 129th meeting of the American Institute of Mining and Metallurgical Engineers convened at New York City, in the Engineering Societies Building, Feb. 18-20, 1924. On February 21 an excursion was made to the Bethlehem Steel Co., at Bethlehem, where about 200 members and guests were splendidly entertained. An illustrated description of the Bethlehem Plant will be published next month. The meeting and excursion were largely attended; the registration at New York totalled 1276 versus 1201 in 1923. William Kelly, long identified with the iron-mining industry of the Lake Superior district, was elected President of the A. I. M. E. for the coming year, at ,the annual business meeting, Feb. 19, succeeding E. P. Mathewson. The following Directors were also elected (the date signifies year of termination of office; the final figure indicates the "District" the Director represents).

Jan 1, 1924

This study of engineering education arose out of the action of a joint committee on engineering education, representing the principal engineering societies. The committee had gathered so much material that it decided the work could best be carried out by some one trained in applied' science, who would devote his entire attention to the study.. The Carnegie Foundation therefore asked Prof. Charles R. Mann, of the University of Chicago, to undertake the work. After making a thorough study Prof. Mann has made a most comprehensive report. In it he says: The engineering schools of the United States began their work upon a definite teaching plan and one that had at least pedagogic consistency. But during the past half century the course of study has been overlaid with many special studies intended to enable the student to deal with the constantly growing applications of science to the industries. As a result, the load upon the student has become so heavy that there is a feeling that the students fail to gain a satisfactory grounding in the fundamental sciences and do not fulfil the expectations of engineers in d manufacturers in dealing with the practical problems with which they are confronted on leaving school. At present 60 per cent. of those who enter the schools fail to graduate, still many of them persist in engineering and make a success of it. It is evident, therefore, that the present systems of admission are not satisfactory. If a group of schools will take up the careful study of their entrance systems and experiment with objective tests and records of the students' youthful interests and achievements, the percentage of elimination can be reduced to at least a fourth of its present size, with an enormous saving of time, energy, and money for both student and school. The number of required credit hours per week should be less than eighteen, preferably sixteen. The few experiments that have been made indicate that college students do their best work when not more than five subjects are studied at a given time.

Jan 1, 1919

By E. Northcott, I. M. LeBaron

Before describing the electrostatic processing of feldspar, it might be well to review some of the basic definitions and terminology of feldspars. The feldspar minerals constitute a group of alumino-silicates of potassium, sodium, and calcium. Barium feldspar sometimes occurs naturally but is very rare. Hardness varies between 6 and 6.5 and specific gravity between 2.5 and 2.8. Color is generally white or pale shades of red, yellow, or green. The approximate chemical composition of the principal feldspars is given in Table I. The albite (sodium aluminum silicate) and an orthite (calcium aluminum silicate) feldspars are the end members of a series called plagioclase. These two molecules form a complete solid solution series ranging from pure soda feldspar at one end to the pure lime feldspar at the other end. Intermediate solid solutions are known as oligoclase, andesine, labradorite, and bytoconite. The general structure throughout this series is the same. Sodium and calcium may replace each other and silicon and aluminum may replace each other in the structure.

Jan 10, 1958

By John T. Galey

An intensified search for gas, because of the shortage in the area, led to the completion of 482 wells in southwestern Pennsylvania during 1944. This number was 27 more than the number in 1943, but 118 of the wells were nonproductive. Shallow Development Oil The initial production of the 25 producers completed was slightly less than was obtained from four wells above last yearJs total. The largest well, 20 bbl., was found in the Big Injun (Miss.) sand in Morris township, Washington County, at a depth of 2085 ft. It is currently producing about 3 bbl. per day. Outside the main producing area, a well drilled in Nicholson township, Fayette County, obtained 15 bbl. per day from 1864 to 1866 ft. in the Gantz (U. Dev.) sand. The Federal subsidy of 75¢ per barrel, effective , 1, 1944, which increased to $3.40 the current pipe-line price in this area, seems to have been insufficient stimulus to materially increase drilling for oil, although more repressuring operations are contemplated. Gas The volume of initial open flow of gas developed is off slightly over 10 million cu. ft. from 36 more wells than were completed a year ago, and the average rock pressure of this new gas is more than 100 lb. less than that obtained a year ago. Apparently the best find of this year was reported in Patton township, Allegheny County, where an initial volume of over 4 million cu. ft, was encountered in the Speechley (U. Dev.) sand at a depth of from 3293 to 3303 ft. The rock pressure there, 1190 lb. per sq. in., is nearly virgin. However, this area is fairly well delimited by dry holes and docs not seem nearly so promising from the standpoint of reserves as the Armbrust area, which was discovered several Years ago. In the patton township locality another fair well with 1303 M cu. ft. open flow and 400 lb. Per 59. in. rock pressure completed in the Hundred-Foot (U. Dev.) sand at a a depth of 2125 feet. Armstrong County, as usual, leads in number of producing wells completed with lowest percentage of failures but ranks only fou th in volume of production developed. Only two wells here had more than one million cubic feet capacity, but the rock pessure was under 200 Ib. Per sq. inch. In Fayette County, where the largest portion of new gas was found, activity appears to be shifting eastward. In Luzerne township, four producers having a total combined initial open flow in excess of 10 million cu, ft, were found in the Big Injun (Miss.) sand. The best well was found also in the same area in the Speechley sand (U. Dev.) at a depth of 3460 ft. This was a 2500-M CU. ft. well in Georges township. Several wells of more than a million cubic feet capacity were found in Jackson, Washington, Wayne and Whitley townships, Greene County. None of these, however, was in a new pool.

Jan 1, 1945

By J. J. Arps

This paper reviews the methods currently in use for estimating primary oil reserves and discusses the principles on which these methods are based. Particular emphasis is placed on how these methods change with the type of information available during the life cycle of an oil property. This paper contains various novel estimating methods and shortcuts heretofore unpublished. INTRODUCTION Estimating oil reserves is one of the most important phases of the work of a petroleum engineer since the solutions to the problems he deals with usually depend on a comparison of the estimated cost in terms of dollars, with the anticipated result in terms of barrels of oil. His recommendations to management regarding the best course of action are therefore normally based on the most favorable balance between these two. Specific engineering problems which require such a knowledge of recoverable oil reserves and a projection of future rates are: [a.] the exploitation and development of an oil reservoir; [b.] the construction of gasoline plants, pipelines and refineries; [c.] the division of ownership in unitized projects; [d.] the price to be paid in case of a sale or purchase of an oil property, and the magnitude of the loan which it will support; [e.] the proper depreciation rate for the investment in oil properties; and [f.] evaluation of the results of an exploration program. This discussion will be confined to the various methods and tools which are currently in use for estimating oil reserves to be obtained during the primary phase of an oil-producing reservoir and for a projection of the future production rates. Reserves which may be obtained by secondary recovery methods or fluid injection programs and gas and gas condensate reserves will not be discussed in this paper. Unfortunately, reliable oil reserve figures are most urgently needed during the early stages when only a minimum amount of information is available. Management's interest in the oil recovery from a property—aside from its use for accounting purposes—usually declines when the property approaches its economic limit, just at the time when the reliability of the estimates is at its best. To illustrate this general idea a chart is presented (Fig. 1) showing the three periods in the life of an imaginary oil property. Time is shown on the horizontal axis, while the cumulative production and estimated ultimate recovery are plotted vertically. No particular units are used and this schematical chart is not to scale. During the first period, before any wells are drilled on a property, any estimates will of necessity be of a very general nature, based on experience from similar pools or wells in the same area, and usually expressed in barrels per acre. This will

Jan 1, 1957

By Harvey S. Mudd

WHEN talking about Europe it is well to endeavor to keep politics and economics apart but they have become so intermingled in recent years that the discussion of one topic inevitably leads to the other. Economic influences formerly prevailed over politics but today national and international economies are governed by political forces. Commerce in raw materials, food, and manufactured products is now so restricted by governmental controls that the capacity of the world to produce and to consume, to exchange goods and to pay for them, cannot be gauged by the past or predicted by a multitude of experts. In prewar days there were some yardsticks but today there are none. Thus it is hazardous to make forecasts, for in all fields of human effort the world has been cast upon an uncharted sea.

Jan 1, 1947

By William P. Shinn

It is almost exactly seven years since the last previous meeting of the Institute in this city. In a paper on " Pittsburgh, its Resources and Sorroundings," read at that meeting, I showed that Allegheny County had produced in 1878, " one-twelfth of all the pig-iron,.... two-ninths of all the rolled iron (except rails), over one-eighth of all the Bessemer and open-hearth steel, two-thirds of all the crucible blister and puddled steel, one-fourth of all the glass, one-eighth of all the coal, and one-sixth of all the pig-lead produced in the United States;" and the object of this paper is to show that, great as the record then was, it has been greatly surpassed since.* Population. In my former paper I expressed the opinion that the census of 1880 would show the population of Allegheny County to be in excess of 300,000. The census report made it 355,869. The following shows the growth of the county in population from 1790 to 1880: 1790,...........10,309 1800,........... 15,087 1810,...........25,317 1820,...........34,921 1830,...........50,552 1840.............81,235 1850............138,290 1860............178,881 1870,...........262,204 1880,...........355,869 This makes Allegheny County, in 1880, rank sixth in population of the counties of the United States, whereas in 1870 its rank was ninth. The population of Pittsburgh in 1880 was 156,359, being twelfth

Jan 1, 1886

By Bernard Lallement

INTRODUCTION Geostatistics have been used for five years at the B. R. G. M. to compute the ore reserve estimation. At present this technic is also used at the beginning of the exploration project to determine the best way to prove the orebody. The best way is a compromise between the cost of the exploration and the precision of the estimation. It is clear that geostatistics cannot be used without any data, but very often an exploration project is decided on an orebody which has already been drilled. Old data can therefore be used. This was the case this year for two orebodies: an iron deposit and a lead deposit. The iron deposit was explored by drifts and has now to be proved. We used geostatistics to determine the best drilling pattern. The variograms computed with these old data showed that an anisotropy existed between the two directions of the orebody, which meant that the drill pattern had to be rectangular. The lead deposit was explored by drill holes and a short drift in part of the orebcdy. The problem was to choose between a regular pattern of drill holes or a long drift and some added drill holes. The case of this study will be exposed afterwards. On the other hand, if the orebody is completely unknown, the exploration project generally forecasts two exploration steps (the first step

Jan 1, 1977

Officials of the State Department have expressed their hope that a considerable number of technical men will take the examination for consular service. The Department recognizes that the interest of the United States will be served best if technical men are made available through these examinations for vacancies at points where their training will be of special value. Industrial engineers who have passed the con-sular examination will be assigned to industrial centers of Europe or South America. Mining engineers, chemists, electrical engineers, etc., will be assigned to industrial centers requiring special training.

Jan 11, 1919

By Oliver M. W. Sprague

THIS gold problem is full of complications and can hardly be handled adequately or comprehensively in any short period of time. Perhaps I might begin by mentioning a few aspects of the subject about which I suppose there will be no disagreement. The first of these is that we already have a stock of monetary gold in the United States far in excess of what is needed to support any desirable increase in the present volume of currency and credit. The second is that this already superabundant gold stock is certain to be considerably enlarged during the course of the war, and presumably during the months of readjustment following its conclusion. Some billions of additional gold, we may reasonably presume, will come into the country during these next few years, thus increasing the aggregate monetary gold stock from the present eighteen billions to perhaps twenty- two or even twenty-five billion dollars.

Jan 1, 1940

By U. C. Tainton

IN reviewing progress in zinc metallurgy during the last year or so one is reminded of the premise on which H. G. Wells based his "Food. of the Gods," namely that growth does not and cannot take place smoothly and steadily, but occurs in a series of bursts and intermissions: "It is as if every living thing has to accumulate force to grow, grows with vigor only for a time, and then has to wait for a space before it can go on growing again."

Jan 1, 1937

By E. L. Davis

There have been many attempts to devise formulas for flowing efficiency and flow friction of oil-gas mixtures in oil-well flow tubes. Actually, however, flowing efficiency is rarely any real concern of the oil producer and flow-friction formulas contain so many unknown variables as to be of little, if any value. The production engineer is generally concerned with producing as much oil as possible with a minimum expense per barrel, and with the lowest possible net gas-oil ratio. These ends frequently are opposed to each other and the gas-oil ratio usually is sacrificed. In competitive operations, such as in town-lot fields, high current production is the sole interest. In conservative operation the greatest possible amount of oil obviously should be produced by natural flow unless the net formation gas-oil ratio can be improved by circulating gas. In practice this condition frequently exists. It would be a great advantage if the flowing condition of a well could be analyzed to determine the best possible producing status. Anticipating the death of a well so that gas-lift could be started immediately after the death, or preferably before, would save both production and expense. Frequently it happens that circulating gas fails to help a flowing well, or will not flow it after it has stopped flowing naturally. A knowledge of the laws governing flow would save considerable expense in testing such cases. A predetermination of probable pressures and amounts of circulating gas needed to flow wells and give best possible producing conditions would help in designing compressor installations. The optimum producing status of an oil well generally may be obtained by the conditions that subject the producing formations to the least possible back-pressure. This pressure is made up of the weight of the fluid column, frictional resistance to flow and the reaction from the acceleration of the fluid mass. A mathematical calculation of these components to arrive at a condition giving a minimum summation is impractical. Formulas would be complex and the results untrustworthy because it is impossible to assign proper values to the many variables involved.

Jan 1, 1931

By Robert W. Hunt

(Cleveland meeting, October, 1912.) PERHAPS of all the scientific economic questions which have been claiming the attention of capitalists, metallurgists, manu-facturers, directors of public utilities, and the general public of America, during the last few years, none have been of more importance than the one relating to the wear and safety of steel rails. The discovery of the Bessemer process made possible modern railway development. In that growth, as has generally happened in all progressive movements, ill its department have not remained equally balanced. Iron rails permitted the construction of roadways for the passage of power-driven vehicles. In time the speed and weight of such carriages proved too much for the wearing-qualities of the rails, and the limit of railway capacity seemed to have been reached. Bessemer made his invention, which was soon perfected and developed, especially as related to steel rails, and thereby increased the limit of capacity, acid vastly greater railway progress was, made possible. The Siemens-Martin open-hearth process followed, and was later supplemented by the Thomas-Gilchrist basic improvement. For a time the Bessemer steel rails of commerce Were, more than equal to all that was asked of them, but this did not long continue, as evidenced by the records in our Transactions. Revolutionary changes occurred in the industrial world, and in no part of it more than in steel-rail manufacture. Great and powerful commercial combinations were made, whose financial resources made possible the supplanting of the then most efficient blast-furnaces, steel-works, mid mills, by others of theretofore unimagined capacity. Old traditions and practices of steel-making were wiped away, and, in too many cases, output was apparently the chief aim, with the result that much dissatisfaction with the wear and safety of rails was felt by railway officials, and the general public was concerned as to its safety when traveling. The climatic conditions of the winter

Dec 1, 1912

By S. J. McCarroll

Fig. 1—The belt shown at right carries filter cake to mixing station over calciner. Crude ore conveyors appear in right background. THE Three Kids mine, some six miles east of Henderson, Nev., is in a typical southwest desert area, with high dry summer heat and cool to cold winter seasons. The manganese deposit was located during World War I.' During this period 15,000 to 20,000 tons of ore assaying up to 41 pct manganese were shipped. Interest in the deposit was not revived until the middle thirties, when experiments on the ore were initiated. Test work indicated possible recovery of only 70 pct by flotation, but in 1941 additional work was done at the Boulder City pilot plant of the U. S. Bureau of Mines and also by M. A. Hanna Co. As a result, the Manganese Ore Co. was formed and a plant utilizing the SO2 process was constructed. Numerous operation difficulties ensued, and the plant. was closed when the manganese situation in the country eased. In 1949 Hewitt S. West initiated negotiations to acquire the plant. In 1951 Manganese, Inc., was formed and contract entered into with the General Services Administration to supply 27 million units of metallurgical grade manganese in the form of nodules to the national stockpile. A second contract was made to upgrade 285,000 tons of stockpile ore. Test work was undertaken by the Southwestern Engineering Co. and likewise by the Boulder City pilot plant at the U. S. Bureau of Mines. Results obtained indicated the commercial feasibility of the flotation process. Construction of the plant, which is shown in Figs. 1 and 2, was started in June 1951, and operations on a break-in basis began in September 1952. Apart from the usual starting difficulties two major disasters caused serious setbacks, one a kiln failure in February 1953, and the other a fire that destroyed the flotation building in June of the same year. The nodulizing section of the plant resumed operation in November, and the flotation section in January 1954. The ore minerals are chiefly wad,* with minor amounts of psilomelane, and occur in sedimentary beds of volcanic tuff. The ore is overlain with beds of gypsum which outcrop or may be covered with surface gravel. Intermediate beds of red and white tuff occur frequently with lenses of red and green jasper and stringers of gypsum and calcite. Small amounts of iron are present; lead content averages about 1.0 pct and minute amounts of copper and zinc are found. Barite, celestite, and bentonite are present. Since these are made up of minute asicular crystals, moisture content is very high, averaging about 18 pct. Ore reserves have been estimated at 3 million tons averaging 18 pct Mn2 and up to 5 million tons after grade is dropped to 10 pct Mn. A good part of the orebody was stripped of overburden by the previous operating company . Approximately 50 pct of the ore, representing more than 60 pct of the manganese, can be mined by open-cut methods. A system for underground min- . ing has not yet been decided on. Open-cut mining with benches of 20 ft has proved satisfactory. Although the ore is soft and appears dry and dusty it has a certain resilience, probably due to the porosity and moisture which makes drilling and fragmentation difficult. Wagon drills have been abandoned in favor of the Joy 225-A rotary drill which will put down a 43/4 -in. hole at the rate of 2 ft per min. Holes are spaced in a pattern with 8 to 9-ft centers. Forty percent powder has been used, but better breaking to 2-ft size is obtained with low velocity bag powder of 30 pct strength. Loading is done with one 21/2-yd shovel, and cleanup follows with one D-7 bulldozer. The ore is hauled with Euclid trucks about 1000 ft from the pit to a blending pile, where the daily mine production is spread in layers by bulldozing until approximately one month's mill feed is accumulated. A new pile is then started and mill feed is drawn from the first pile by one 13/4-yd shovel and Euclid trucks, with a haul of approximately 500 ft. Mining is performed by an independent contractor with engineering and supervision by the company staff. Early test work indicated that the manganese could be floated with soap, a wetting agent, and fuel oil to give a recovery of better than 75 pct with a grade of 43 pct Mn. The concentrate when nodulized with coke would upgrade to 46 pct Mn or over, and the lead volatilized to 0.6 pct residual.

Jan 1, 1955

By PROCEEDINGS OF MEETINGS

THE opening session of the Institute was held at Hazle Hall, Tuesday evening, October 27th, with a large attendance of members. President Raymond called the Institute to order, and after a few introductory remarks, introduced Mr. I. Lowthian Bell, President of the Iron and Steel Institute of Great Britain, and Honorary Member of the American Institute of Mining Engineers. Mr. Bell was received with great applause, and made his acknowledgments in a brief speech, of which the following is the substance: He desired to thank the Institute personally for the honor conferred upon him in his election to membership, and also for the invitation extended last year to the body of which he was President. The difficulty felt by many members of the Iron and Steel Institute, of leaving for a long journey the works of which they had charge, aggravated by special industrial troubles at the time of the invitation, had obliged them to conclude that it could not then be accepted in a fitting manner. The iron manufacture of this country is a subject of great interest to Englishmen, who look with pride upon the achievements on this side the water of the descendants of a common ancestry. His own reception in this country had far surpassed in cordiality even the well-grounded anticipations he had formed from the assurances of the President and other friends. Notwithstanding the flattering manner in which his friend, in introducing him to the Institute, had spoken of his contributions to the science of iron metallurgy, he could not take to himself alone the significance of this welcome. He knew it was a recognition of the services rendered by the body which he had the honor to represent; and he was glad to see present a member of that body, Mr. Thomas Whitwell, who had fortunately been able to make the journey at this time, and whom he had had the pleasure of meeting on the shores of Lake Champlain. He had been requested to say something of his impressions of the American iron industry. It was not easy to digest so soon the vast

Jan 1, 1875