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By W. M. Mobley

The coal industry in Alabama, centered in Birmingham, has pioneered coal-bene-ficiation practice in the United States. The nature of the coal seams and mining methods employed have necessitated use of equipment and methods best adapted to the local conditions. Although all of the 30 or more coal seams now being mined in the state receive beneficiation, only the three most important producers of coking coals, the Pratt, Mary Lee and Black Creek, are discussed in detail. Nature of the seams, washability characteristics and equipment used are given as examples of the extent of work and progress in this field. The coal seams in Alabama are relatively thin and pitching, making mining difficult and expensive. Most of them are characterized by thin partings of rock or shale in the seam itself, as well as laminations of bone and rash. Mechanical mining methods have increased the occlusions from roof and floor to such an extent that nearly all the coal mined in the state must receive some treatment before it can be put on the market. During the year ending Sept. 30, 1943,1 18,129,792 tons of coal were mined in the state and 14,364,177 tons, or 79.2 per cent, received treatment. Excluding from the total the 1,223,014 tons produced by small wagon mines and the hand-picked lump coal, the amount re- ceiving beneficiation would be more than 90.00 per cent. This is, by far, greater than in any other coal-producing state. The earliest record of coal beneficiation in Alabama was the installation in 1890 of an experimental rig washer by Alexander Cunningham, for the Sloss Iron and Steel Co. at its blast furnace in Birmingham.* In 1894 the Jeffrey Manufacturing Co. introduced the English Robinson washer, a combination of a hydraulic classifier and centrifugal machine. Erskine Ramsay, who has contributed so much to the coal industry, saw its possibilities as well as its mechanical defects and soon had his inventive mind at work. He added a sludge tank of his own design, and many Robinson-Ramsay washers were installed in Alabama and other states. The Stewart jig appeared in 1900, followed by the Montgomery jig in 1910 and both have found extensive use. Increased interest in this field led to new designs, such as the American, Elmore, Burke and Faust. The first Baum-type Norton jig was operated in 1930 and within the last five years six large installations of this type have been made by the McNally-Pitts-burg, Jeffrey and Link-Belt Companies. Wet-washing tables were introduced in 1922 but not extensively used until recently. The two most popular types are the Deister-Overstrom and Deister Plat-O. The coal-cleaning equipment used in Alabama has been relatively simple, yet efficient, but as the amount of impurities in the raw coal has been increased by mechanical mining and labor costs have become higher, much interest has been shown in sand cones, froth flotation and

Jan 1, 1947

By W. M. Mobley

The coal industry in Alabama, centered in Birmingham, has pioneered coal-bene-ficiation practice in the United States. The nature of the coal seams and mining methods employed have necessitated use of equipment and methods best adapted to the local conditions. Although all of the 30 or more coal seams now being mined in the state receive beneficiation, only the three most important producers of coking coals, the Pratt, Mary Lee and Black Creek, are discussed in detail. Nature of the seams, washability characteristics and equipment used are given as examples of the extent of work and progress in this field. The coal seams in Alabama are relatively thin and pitching, making mining difficult and expensive. Most of them are characterized by thin partings of rock or shale in the seam itself, as well as laminations of bone and rash. Mechanical mining methods have increased the occlusions from roof and floor to such an extent that nearly all the coal mined in the state must receive some treatment before it can be put on the market. During the year ending Sept. 30, 1943,1 18,129,792 tons of coal were mined in the state and 14,364,177 tons, or 79.2 per cent, received treatment. Excluding from the total the 1,223,014 tons produced by small wagon mines and the hand-picked lump coal, the amount re- ceiving beneficiation would be more than 90.00 per cent. This is, by far, greater than in any other coal-producing state. The earliest record of coal beneficiation in Alabama was the installation in 1890 of an experimental rig washer by Alexander Cunningham, for the Sloss Iron and Steel Co. at its blast furnace in Birmingham.* In 1894 the Jeffrey Manufacturing Co. introduced the English Robinson washer, a combination of a hydraulic classifier and centrifugal machine. Erskine Ramsay, who has contributed so much to the coal industry, saw its possibilities as well as its mechanical defects and soon had his inventive mind at work. He added a sludge tank of his own design, and many Robinson-Ramsay washers were installed in Alabama and other states. The Stewart jig appeared in 1900, followed by the Montgomery jig in 1910 and both have found extensive use. Increased interest in this field led to new designs, such as the American, Elmore, Burke and Faust. The first Baum-type Norton jig was operated in 1930 and within the last five years six large installations of this type have been made by the McNally-Pitts-burg, Jeffrey and Link-Belt Companies. Wet-washing tables were introduced in 1922 but not extensively used until recently. The two most popular types are the Deister-Overstrom and Deister Plat-O. The coal-cleaning equipment used in Alabama has been relatively simple, yet efficient, but as the amount of impurities in the raw coal has been increased by mechanical mining and labor costs have become higher, much interest has been shown in sand cones, froth flotation and

Jan 1, 1947

By D. L. Gardner, H. L. Barr

The following report covers the history of the development of the mine, present equipment, methods and costs of mining and milling. In addition, a description of the ore deposit is given with emphasis on the origin of the fractures, mode and types of ore occurrence, and mechanics of granite emplacement. An endeavor has been made to present a complete and accurate statement of the San Mauricio mine, the highest grade gold mine in the Philippine Islands. Credit is gratefully acknowledged to the mine staff for descriptions and details regarding their particular field of work. All analyses were made by Mr. T. A. DeVore, head chemist, San Mauricio Mining Co. Messrs. Edward Wisser, J. E. Fyfe, A. F. Skerl and W. B. Meek, geologists, have contributed geologic information and ideas, for which thanks are extended. The Executive Committee of Marsman and Co., Inc., Managers of the Company, has kindly given permission for publication. Mr. J. B. Stapler, Division Manager, Marsman and Co., has had the courtesy to read the manuscript and to give critical and helpful suggestions. Location of Area and Scope of Work San Mauricio Mining Co. controls a group of 113 claims that lie immediately north of the town of José Pafiganiban (formerly Mambulao), Camarines Norte, Luzon, P. I. (Fig. 1). Exploration work commenced in the spring of 1934; active development began in the fall of that year and has continued to the present date. Mill construction was begun Ocl,. 15, 1935, and production started March 10, 1936. Total production to June 1, 1939, is P10,499,105.15 ($5,249,552.57).

Jan 1, 1941

By D. L. Gardner, H. L. Barr

The following report covers the history of the development of the mine, present equipment, methods and costs of mining and milling. In addition, a description of the ore deposit is given with emphasis on the origin of the fractures, mode and types of ore occurrence, and mechanics of granite emplacement. An endeavor has been made to present a complete and accurate statement of the San Mauricio mine, the highest grade gold mine in the Philippine Islands. Credit is gratefully acknowledged to the mine staff for descriptions and details regarding their particular field of work. All analyses were made by Mr. T. A. DeVore, head chemist, San Mauricio Mining Co. Messrs. Edward Wisser, J. E. Fyfe, A. F. Skerl and W. B. Meek, geologists, have contributed geologic information and ideas, for which thanks are extended. The Executive Committee of Marsman and Co., Inc., Managers of the Company, has kindly given permission for publication. Mr. J. B. Stapler, Division Manager, Marsman and Co., has had the courtesy to read the manuscript and to give critical and helpful suggestions. Location of Area and Scope of Work San Mauricio Mining Co. controls a group of 113 claims that lie immediately north of the town of José Pafiganiban (formerly Mambulao), Camarines Norte, Luzon, P. I. (Fig. 1). Exploration work commenced in the spring of 1934; active development began in the fall of that year and has continued to the present date. Mill construction was begun Ocl,. 15, 1935, and production started March 10, 1936. Total production to June 1, 1939, is P10,499,105.15 ($5,249,552.57).

Jan 1, 1941

By R. S. Shoemaker, D. L. Harris

PST investigations into the possibility of concentrating the low-grade iron ores of the Gogebic Range in Wisconsin have been hampered by the complex association of the constituent minerals. In part the problem arises from the fact that the iron occurs essentially as two minerals, hematite and goethite, having nearly the same chemical composition but exhibiting different physical properties. Individual grains of these minerals are usually so small that the ore must be ground to a size finer than 325 mesh if substantial liberation of the minerals is to be secured. Appraisal of beneficiation tests on this iron ore requires, therefore, some method of determining quantitatively the contents of constituent minerals in the various products of the beneficiation. Because of the chemical similarity of the two iron minerals, chemical analyses do not provide a means of differentiation. Although the minerals are different physically, they are both opaque and friable, and as the ore must be ground to a very fine size for liberation to be secured, quantitative microscopic methods of analysis are extremely difficult at best. In an effort to overcome these analytical problems, a quantitative X-ray diffraction analysis method has been developed at the University of Wisconsin for the research program on iron ore beneficiation. The X-ray diffraction analysis of chemical compounds of crystalline form has proved of inestimable value for structure studies and rapid qualitative analytical purposes in a number of fields.' In some cases X-ray diffraction analysis has been found suitable for quantitative determinations. H. P. Klug2 found that quantitative procedures for quartz powders when mixed with calcium fluoride were reproducible within ±1.0 pct. Talvenheimo and White3 reported quantitative analyses of clay minerals to be accurate within 10 pct and also detected 1 pct of bentonite in 99 pct illite. In other investigations,'" powders of quartz and mica have been analyzed quantitatively with accuracies from 1 to 5 pct. A powder of tungsten carbide was analyzed similarly by Redmond7 and Rooksby8 reported the determination of small amounts (0.11 pct) of calcium oxide in magnesium oxide. In the most generally practiced use of X-ray diffraction, traces of the diffracted beam are recorded as lines on a film much as lines of elements are recorded on an optical spectrograph film. As with the spectrograph, the darkness of the lines denotes the amount of the constituent in the sample. If the film is replaced by a Geiger tube assembly and a graphic recorder or a scaling unit, the intensity of the diffracted beam can be registered as a peak on a chart or energy impulses per unit of time on the scaler. Several methods of quantitative measurement have been investigated and reported in literature. Klug2 used manual operation of the goniometer and a counting technique to determine the difference in counting rates at the diffracted angle and for the background. In another case3 the area under the recorded diffracted peak was the basis for the determination. In other instances the height of the recorded diffraction peak above background, measured while the goniometer was moving, has been the basis for the measurement. The sizes of particles most suitable for diffraction techniques are reported in the literature as follows: for tungsten carbide a maximum of 40 microns7 and for quartz a maximum of 5 microns.' Very fine sizes of crystals are known to cause a broadening of the diffused beams; hence some workers have set a lower limit of 0.1 micron for quantitative results. Guinier10 has indicated that broadening of the diffracted X-ray beam is not appreciable for crystallites larger than 0.02 to 0.03

Jan 1, 1956

By E. DeGolyer

WAR has wrought sharp and sudden changes in the pattern of the oil industry. The most obvious and most striking of such changes have been in the fields of transportation and refining. A third of the world's total oil production formerly started to market, tanker-borne, over the waters of the Gulf and Caribbean. Most of this oil went to our North Atlantic ports, supply points for the world's greatest consuming center. This tremendous traffic, disrupted by the loss of tankers as a result of requisition for military purposes and by the activity of enemy submarines, has had to be substituted largely by such lines of supply as could be improvised without loss of too much time. No single solution for this gigantic problem has been found nor is it likely to be entirely solved for some time to come. It has been solved in part, however, by rearrangement, reversals, and patching up of existing pipe-line systems; by overland transport of crude and products in tank cars on a scale never before attempted; by barging over inland waterways; and through the construction at long last of the "big-inch" line, the first leg of which is just being put into operation as far as Norris City, III. The tank-car traffic alone, reaching a peak of deliveries of 856,710 barrels per day into District 1 during the week ending Sept. 19, 1942, and accomplished at an expense of millions of dollars in extraordinary transportation costs, defrayed by the Defense Supply Corp. and by the mobilization of tank cars from all over the nation, is a story worth the telling but by some of those who directed it.

Jan 1, 1943

By A. J. M. Ross, R. G. Wayland

The Homestake mine is situated in Whitewood mining district, in the northern Black Hills of South Dakota, in the city of Lead, Lawrence County. The entire property, comprising 557 lode claims with a total area of 3343 acres, is held under United States Patent. The older claims were 300 by 1500 ft. under local regulations, the newer ones 600 by 1500 ft. The Homestake was discovered April 9, 1876, by Moses and Fred Manuel, and Jake Harney, who were drawn into the northern hills, from the Custer placer district, by news of the discovery of rich placer deposits in Deadwood Gulch. They located a number of additional lode claims and, in a short time, the whole country was covered with locations. The Manuel brothers built an arrastre the following winter and took out $5000. The next year the Homestake lode was sold to Senator George Hearst and associates, who organized the Homestake Mining Co. Other companies were formed to exploit other groups of claims and at one time fivc companies were operating on this deposit, the Father DeSmet, the Dead-wood-Terra, the Caledonia, the Highland, and the Homestake Mining Co. These companies, however, have been merged into the Homestake Mining Company. The first stamp mill, known as the "Eighty Mill," commenced operation on July 12, 1878, and production has been nearly continuous since that time. Geology The orebodies of the Homestake are found in an intensely folded and altered bed of dolomitic limestone occurring in a series of ancient rocks believed to be of Archean age, belonging to the Keewatin series. The Keewatin series is estimated to be 20,000 ft. thick and is made up essentially of quartz mica schists, garnet schists, quartzites, slates, and some green schists, probably derived from basic igneous rocks. The dolomitic limestone bed has a thickness of 40 to 60 ft. The great width of ore, as much as 400 ft. in some of the stopes, is due to the folding, wherein the bed is repeated. In other cases the bed is stretched and pinched out. Dikes of Tertiary rhyolite cut across the country and, in places, sills overlie the

Jan 1, 1925

By L. D. Fetterolf

The New Jersey Zinc Zompany operates at Depue, Illinois, an integrated zinc smelting plant using tie vertical retort reduction process. The overall operation comprises green concentrate roasting, sintering, vertical retort smelting and metal refining. In the roasting operation, the fine concentrate is pelletized, the dried pellets fluidized and autogenously roasted with air in a “fluid column” with minimal formation of dust requiring recirculation. The roasted pellets and any associated roaster dust are agglomerated in a rotating drum and laid down, in combination with coal for fuel, on a Dwight-Lloyd sintering machine which converts to a semi-fused mass - a physical state more suitable for vertical retort smelting. The smeltins plant of 27 vertical retorts rated at 8 T zinc each per day on average requires the following major processing steps - mix preparation and briquettine, briquet coking, vertical retort reduction, vapor condensation and slab casting of metal. A portion of zinc production is converted to 99.99+ percent purity by boiling and fractional distillation in columns consisting of externally heated, superimposed trays of high-conductivity refractory.

Jan 1, 1970

By Arthur V. Abbott

In a few places attempts have been made to introdnce some means of delivering heat from a central station. Probably Pittsburgh, through the advantages derived from its almost inexhaustible supply of natural gas, has made a more wide-spread success in this direction than any other city. From the gas-wells in the vicinity of that town an enormous supply of natural gas can readily be obtained at a pressure sufficient to force it many miles from its source and to distribute it to all consumers. Obviously, very few places have such natural advantages, and some other means must be devised, if it is desired to furnish heat in a location not supplied with gas-wells. Several plants have been introduced to deliver heat by

Jan 1, 1888

By Richard Pearce

I am deeply sensible of the honor you have conferred on me in electing me your president for this year. It is difficult to understand why I have merited such distinction at your hands, except that I may possibly have helped, in some small way, in the develop ment of metallurgical practice in the West. I fear, however, that I shall fall far shirt of the expectations you may have in regard to my fitness for such a position. The responsibility of preparing an address for this occasion has caused me considerable thought and anxiety. Unlike my predecessors in office, many of whom have dealt in their presidential addresses with subjects covering a wide field, which they could survey with the confidence born of their own extensive knowledge, I have been confined by my experience, during the last twenty-five years, almost wholly to that portion of metallurgical science which bears especially on the treatment of gold and silver. Yet perhaps some sort of general review of the progress of this branch of metallurgy in the West, besides being the contribution I feel myself best qualified to offer, may prove acceptable to many of the members of the Institute. Some few of the gentlemen present will remember the crude condition of metallurgical practice as it was conducted in Colorado only twenty-five years ago. My own personal experience covers a period of eighteen years; and during this comparatively short time I have seen the most astonishing changes in the conduct of metallurgical works. In all probability the marked progress which this country has exhibited could hardly be reached anywhere else, and this result has been achieved mainly by the activity and enterprise so characteristic of the men of the West. The first little successful attempt at smelting made at Black Hawk, in 1867, by Ex-Senator N. P. Hill, representing the Boston and Colorado Smelting Company, proved a great boon to the miners,

Jan 1, 1890

By J. S. Harris

AS a result of the study of social problems to which so much thought has been given in this country and Europe in the last half century, many employers of labor have come to think that some provision should be made for their workingmen in case of injury. There has been a growing tendency so to administer the laws governing industrial pursuits in these countries as to add self-interest on the part of capitalists, to the plea urged by humanity, that every possible care should be taken to guard the workers from accident; but as no care can guarantee immunity, there is a necessity to supplement these precautions by some method of providing pecuniary aid that shall be available when disabling accidents do occur. It was once a favorite idea of theorists on political economy, that in the ideal state of society every man should take care of himself, and that the less care or control there was assumed by any man over others' private affairs, the better; but this gospel of selfishness has had its day, and it is now generally recognized that in the existing state of affairs the stronger and richer cannot escape the duty of being to some extent, the keepers of their less fortunate brethren ; and, on the other hand, that an assumption of care for them involving to some extent an exercise of authority, is not a thing to he necessarily and always resisted. Out of these convictions, many efforts for the amelioration of the condition of workingmen have grown—which or one result have produced various plans which combine the con-

Jan 1, 1884

By R. G. O’Meara, M. M. Fine

ONE of the principal activities of the Bureau of Mines connected with the recent war was to help to increase the supply of strategic and critical minerals. Fluorite was one of the most critical of the nonmetallic minerals because of the increased demand for it as a flux in basic open-hearth and electric steel furnaces and as a raw material for the production of artificial cryolite used in the aluminum industry. Wartime developments in the technology of hydrofluoric acid, such as the use of the anhydrous acid as a catalyst in production of high-octane gasoline and the use of organic fluorides as carriers for insecticides, also increased the demand for acid-grade fluorite.[t] In 1943 the consumption of acid-grade fluorite was advancing at a more rapid rate than production, and was only slightly less than production during the latter half of the year.1 The outlook for the postwar market for fluorite is encouraging. Steel production is expected to remain high until the domestic demand for commodities not manufactured during the war is satisfied. The uses for hydrofluoric acid are expected to increase under the impetus of war-initiated research. In consideration of these and other factors some authorities predict a postwar demand for fluorite equal to about 60 to 75 per cent of the wartime production.1,2 Others believe that the postwar fluorite industry will be permanently expanded over its prewar status.3 ACKNOWLEDGMENT This paper is one of many reporting on various aspects of the Bureau of Mines program directed toward the more effective utilization of our mineral resources. The program has been under the general supervision of R. S. Dean, Assistant Director, since July 1942. The scope of the paper falls in the province of the Metallurgical Branch, whose activities embrace the separation of difficultly beneficiated ores, the production of pure metals from domestic deposits, the exploitation of marginal ore reserves, the recovery of secondary metals, and the improvement of present industrial metallurgical practice. The investigation was initiated at the request of Mr. J. H. Steinmesch, vice-president and general manager, Minerva Oil Co., Eldorado, Ill. His hearty cooperation and helpful suggestions, and those of Mr. O. E. Anderson, mill superintendent,

Jan 1, 1946

By John A. Fagnant

At Elkol, Wyo., about 80 miles northeast of Ogden, Utah, the Kemmerer Coal Co. and the Utah Power and Light Co. are involved in a joint venture that will soon see 1 million tons of coal going "out by wire" to Ogden. Kemmerer, owner of a multi-seam strip mine, and the utility, now building a steam power plant adjacent to the mine site, expect to begin initial power generation by February 1963. Although capable of producing only 150,000 kw at that time, this plant is expected to be ultimately enlarged to 500,000-kw capacity which will require about 2 million tons of coal annually. The deposit consists of more than 30 seams of coal, usually varying in thickness from 2 to 40 ft, and separated by beds of sandstones and shales. In certain areas the aggregate thickness of all the coal seams measures 300 ft. The thickest and most spectacular of these seams is the lowest one, referred to as the No. 1 seam, which is 118 ft thick in some places.

Jan 8, 1962

By Anthony F. G. Lucas

BORN on Sept. 9, 1855, in the city of Spalato, Dalmatia. Austria, Antonio Francisco Luchich was the son of Francis Stephen Luchich, a prosperous shipbuilder and ship-owner of Lesina. His mother, Johanna Giovanizio, was known to the people of Trieste as a woman of unusual learning and piety. After receiving his high school training in Trieste, Antonio Luchich entered the Polytechnic Institute at Gratz in the year 1875, graduating two years later as an engineer. He then entered the Naval Academy of Fiume and Pola as a Midshipman, receiving his commission as a Lieutenant in 1878. In 1879, then 24, Antonio Luchich obtained a leave of absence from the Austrian Navy and came to Saginaw, Mich., to visit an uncle. He remained in this country and on May 4. 1885 at Norfolk, Va.. he became Anthony Francis Lucas. an American citizen.

Jan 1, 1945

By T. C. Desollar

THE group of iron-ore mines known as the Red Ore Mines, owned and operated by the Woodward Iron Co., is on Red Mountain approximately ten miles southwest of Birmingham, Ala. At the, present time No. 1 and No. 3 mines are active, No. 2 mines having been abandoned in 1928. Ore from this group of mines was first mined in 1882, and originally came from open cuts along the outcrop, but, when the "soft ore" (weathered hematite) was mined out and the harder ore was encountered, it became necessary to develop the orebody by means of slopes driven in the ore formation. The three mines to date have produced more than 22,000,000 tons, and the two operating mines now have a capacity of over 1,000,000 tons per year.

Jan 1, 1933

By William P. Shinn

Jan 1, 1881

By M. R. Geer, H. F. Yancey

0. R. LYONS*—I know that we are all interested in hearing about problems that other people have. To most of the people from the eastern part of the United States, this kind of coal preparation is completely different. It represents washing difficulties that most operators have never experienced, or, if they have, they have refused to consider them because there are coals that are much easier to wash and, therefore. they leave the more difficult ones alone for the time being. E. R. McMILLAN†—I think the au-thors have summarized the material very well. Dr. Yancey has spent a great many years in the study of washing coals, as has Mr. Geer. I might comment briefly on some of the plants that were mentioned, plants with which I have had some con-nection, particularly those of our own company, the Northwestern Improve-ment Co. I would like to point out this: that ill each case, a great deal of work was done in the way of preliminary studies of washability of the coal before plants were built. The first plant of any size built in Roslyn field was mentioned in the paper. This central cleaning plant was designed and built to handle coal from three different mines. I might say that prior to 1935, the year in which the plant was built, the coal was used largely as railway fuel, close to a million tons annually. But as mining increased in depth, it became increasingly difficult to separate and gob much of the impurities underground, with the result that the run-of-mine coal became so high in ash that the railroad eventually was forced to consider installing some kind of preparation plant at the mine. We spent about a year in preliminary studies in cooperation with the Bureau of Mines to find out the best type of plant that would clean the coal. The result, as Mr. Geer has explained to you, is a rather complicated plant, but it is doing a very satisfactory job. We have, however, made a number of changes and improve-n~euts since it was first built. The last addition was the, installation of a cen- trifugal drier to dewater the minus ¼ in. size. We are now contemplating installing heat driers for further drying of minus ¼ in. We use Vissac heat driers for drying the stoker coal, the ¾ to in. The demand for drier coal, for both railway and industrial use, is forcing us to further drying of the coal. The plant that was mentioned as having been built in Pierce County, during the war, was a government sponsored plant. I happen to have had some connection with its design, construction and initial operation. We did what we thought then, and still think, was a very thorough job of preliminary studies in cooperation with the Burea of Mines of the coal from that field. The plant was as good a plant as could be built with the equipment available at that time, 1943. The plant that was mentioned as having been built at Ravensdale for treating the McKay coal was rebuilt about two years ago, and in addition to the modified Elmore jig washer that was mentioned. we added a coucentrating table for re-cleaning the minus 3/32 in. Our object there was to produce a commercial

Jan 1, 1950

ENGINEERS AVAILABLE (Under this heading will be published notes sent to the Secretary of the Institute by members or other persons introduced by members.) Member, technical graduate, aged 36. Experienced copper metallurgist and mining geologist. Familiar also, through 15 years' broad practical experience, with mining, cyanidation, concentration (including oil flotation), metallurgical accounting, and mine and plant management. Best references. No. 237. Member, graduate engineer with 10 years' experience in malleable, gray -Iron, and steel, as chemist., metallographist, and metallurgist. Researches and investigations by laboratory methods and under works conditions. No objection to some routine. No. 243. Member, technical graduate, broad experience in coal, oil, and clay. Will go anywhere as mining geologist after Sept. 1, 1915. No. 244. Member, technical graduate, aged 30, married, with over 10 years' experience as chemist, engineer on construction, superintendent and general superintendent of bituminous coal and coke plants. SpeaksSpanish. References. No. 245. Member, open for engagement as mine safety inspector or as superintendent of bituminous coal mine. No. 246. Member, graduate mining engineer, with five years' experience in coal mining as mining engineer, construction engineer, pit boss, and superintendent, open for engagement. Best references. No. 247.

Jan 9, 1915

By Robert Gillham, Victoria Yablonsky, Grover R. Castle

INTRODUCTION The commercial paper market, unique to the United States, is a direct exchange of funds between high-grade borrowers and large lenders; because it eliminates both the bank's role as middleman and also some significant transaction costs, commercial paper is the lowest cost short term instrument in the world. For this reason, virtually all borrowers would like to enter the market, but only issuers with the highest rating from Moody's and Standard & Poor can attract purchasers at the best rates. COMMERCIAL PAPER The commercial paper market, in existence for over 100 years, has traditionally been used for short-term financings, with most paper maturing within 30-45 days. Under the U. S. Securities Act of 1933, (section 3(a)3) industrial paper can avoid registration only if it matures within 270 days and is used for current transactions. It was first used to finance the short-term seasonal working capital needs of manufacturing companies. Since World War II, commercial paper use has grown steadily, serving in the 1950's as the market in which finance companies financed the explosion in consumer credit purchases of heavy consumer durables. LETTER OF CREDIT BACKING As far as is known, the use of letters of credit to support energy-related commercial paper began about 13 years ago with an arrangement to finance the nuclear fuel for Con Edison's Indian Point 3 Plant. Goldman, Sachs was the architect of this financing and Chemical Bank provided the letter of credit support. After an early burst of interest, this type of financing wobbled severely in the difficult credit markets of the mid-seventies before regaining serious momentum in 1976 and 1977. A mining project would not normally qualify as a borrower in the commercial paper market because of its credit standing and because its large capital needs require long term financing. However, lately, commercial paper has begun to take the place of a bank term loan in limited recourse project financings. L/C backed commercial paper took this new and startling turn in 1982 when it was used as part of the $700 million financing for the development of the Newlands-Collinsville coal mines of Mount Isa Mines Ltd. in Australia. This was the first use of L/C backed commercial paper in a long-term limited recourse project financing. First Boston acted as financial advisor and, again, Chemical Bank provided sole letter of credit support of $155 million. The $785 million BHP financing for the acquisition of the Queensland (Australia) coal assets of Utah International from General Electric Company followed the next year; there we acted with two other Front Banks to provide $270 million of L/C support. These two important transactions indicate that not only has commercial paper become an integral part of a long-term financing package, but also that it is no longer the exclusive domain of the best known U. S. companies. Lesser-rated companies and a multitude of foreign borrowers have gained access to this "exclusive club." How has this become possible? OPERATION OF AN L/C An instrument of the commercial banks, the "direct pay" letter of credit, has enabled lesser-rated companies to issue commercial paper in their own names. The letter of credit allows the issuer to substitute the credit rating of the supporting bank for its own. The L/C in effect allows a lesser-rated company to rent the bank's credit rating. This upgrading is possible because the bank is unconditionally obliged to pay the note-holders at maturity and then turn to the Issuer for reimbursement. The Issuer commonly "rolls over" a new short-term issue and reimburses the supporting bank from the sale of the new issue until cash flows from the project allow the borrower to reduce the level of paper outstanding. The commitment for an L/C facility, up to 12 years in the case of the Broken Hill transaction, governs the life of the commercial paper tranche of the financing. The term of the L/C commitment thus has the power to extend the ordinary 30-45

Jan 1, 1985

By Thomas T. Read

AT this time of the year, engineering schools are releasing a group of young men who probably are, on the average, in much the same attitude of mind as a person arriving at the terminal station of a railway journey; namely, of having a general idea of his objective, but having to make a decision as to just where he is going and how best to get there. The man leaving the train can at first follow the crowd, but it soon breaks up, as one goes one way and one another, until he has to choose his own course. The recent graduate may do the equivalent of following the crowd by accepting the first position offered, but this only postpones a decision as to where he is going and how best to get there. So many young engineers ask for advice as to what to do that the following statement has been prepared as an attempt to make a general answer to such queries. The engineer taking his first job should realize two fundamental relations. The first is that in electing to be an engineer he has elected to be a hired man. A consulting engineer has more freedom than a man on a regular pay roll, but he is also a hired man; hired for briefer periods at a relatively high rate, but under the necessity of simultaneously doing his consulting work and developing new retainers. There is nothing derogatory in being a hired man (all doctors, lawyers and clergymen are hired men), but the tardy realization that he is one seems to give many an engineer a mental jolt that can be avoided if he accepts it from the beginning.

Jan 1, 1926