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There were present eleven Directors, the Institute's Legal Counsel, the Secretary, the Assistant Secretary, and twenty-three guests. The Report of the Committee on Nominations (listed elsewhere) was presented and ordered to take the statutory course. The appointment of a Committee on Mine Taxation was approved. An Advertising Manager was appointed. E. G. Spilsbury and A. S. Dwight were appointed as representatives of this Institute on the Franco-American Engineering Committee. The Transactions were presented to the University of Louvain, and the monthly Bulletin to the French Technical Index. Permission was given to publish in full the argument of William H. Shockley on simplified spelling. A committee was appointed to have charge of the publication of the Raymond Memorial Volume. There were elected 70 members, 15 associates, and 1 junior associate. Three members were reinstated and the resignations of two were ac-cepted. The clues of 10 members who had been in active service with the allied armies were remitted. An extension of time for the payment of dues was granted to the 11 members.

Jan 12, 1919

Discussion of the paper of Leonard Waldo, presented at the New York meeting, February, 1911, and printed in Bulletin No. 76, April, 1913, pp. 555 to 559. HERBERT HAAS, San Francisco, Cal. (communication to the Secretary*):-Referring to Leonard Waldo's paper on Temperature Conversion Tables, I believe the following formulas can be easily remembered, and by reference to the thermomter scales of Fahrenheit (F.), Celsius (C.), and Réaumur (R.), their derivation and relation are at once understood n° F. = 4/9 (n°-32) R. = (n°-32) C. n° C.=(9/5 n° + 32) F. = 4/5 n° R. n° R.=(9/4 n° + 32) F. = 5/4 n° C. As the freezing point of water is at 32° F., corresponding to 0° C. and 0° R., 32 must be deducted from the Fahrenheit degrees when these are converted into C. or R. degrees. Likewise, to C. or R. degrees converted into F. degrees 32 must be added. The fractions 4/9 and 5/9 and their reciprocals are obtained thus:

Jan 5, 1913

Discussion of the paper of P. B. LIEBERMANN, presented at the St. Louis meeting October, 1917, and printed in Bulletin No. 127, July, 1917, pp. 1051 to 1062. P. B. LIEBERMANN.-As mentioned in my paper, a special investigation was made on the effect of dirt on the track, for the -express purpose of educating mine operators to the advantage of keeping their tracks clean. As to the benefit of clean tracks to the saving in battery consumption, that can be easily determined if the rate of discharge is known under existing conditions, that is, on dirty tracks. The tests have shown that tracks covered with coal dust cause an increase in draw-bar pull of about 30 per cent. The battery discharge table will show the capacity corresponding to the new rate of discharge and will thereby disclose the possible saving in battery consumption. The difference between dirty tracks and clean tracks will be found large enough to have an appreciable effect on the size of the storage-battery locomotive, and for a locomotive of any given size it may mean

Jan 1, 1918

By Francis J. Dennis

Many factors govern the value of dredging-ground, and much capital can be wasted by the mistaken policy of contracting for the purchase of property arid the installation of machinery before a thorough examination has been made. To the uninitiated investor the presence of gold is generally the criterion, and very superficial evidence is necessary to satisfy him as to this point. he couuiclers the comprehensive report of a competent engineer as a wasteful extravagance, aild cannot understand why the engineer requires so much time and money to ascertain the information on which to base his conalusions, when the promoter can furnish him such pleaaing and satisfactory data with but little expenditure of time aud money. The uninitiated investor will often optimistically risk capital for purchase and equipment, and riot uiitil the veuture comes to grief does he learn that the condition8 are wholly unsuited for dredging. In many instances, a short preliminary examination by a competent engineer would have disclosed these facts. The mere presence of gold is by no means suficient; sonie of

Jan 1, 1912

By Thomas M. Drown

Theodore Dehon Rand was appointed Treasurer of the American Institute of Mining Engineers by the Council, at the Boston meeting of February, 1873, to fill a vacancy caused by the resignation of the treasurer who had been elected at the first meeting in Wilkes-Barre in May, 1871. He was elected by the Institute to this offce in the following May, and yearly thereafter until 1903. He often alluded with amusement to the abrupt way in which he was injected into this position, by my coming to his office and asking him to accept the appointment as Treasurer, on the ground that he was eminently fitted for the position by reason of his legal and business knowledge, his interest in geology and mineralogy, and more particularly because he was a neighbor of the person (to wit, myself) who was slated for the Secretaryship, and they could thus convenient.ly confer on Institute matters. He consented, on condition that the duties should not involve too.much additional work for him. This assurance was easily given, for the Institute then

Jan 1, 1904

SINCE you have asked me many times in particular how those mirrors are made that are commonly called spheres,* and even though I have told you at other times, I do not wish to omit writing of it here again in detail, so that you may have as complete information as I can give you, both in order to satisfy you fully and because it belongs among the subdivisions of the subject that I have proposed. Concerning this, I first tell you that it was an ancient discovery, and in those times as today was celebrated, and worthily so. For the effects these mirrors produce are miraculous things incomprehensible to me, and the more I think about it the more I am bedazzled with wonder, nor do I know how to explain by theory of perspective the causes demonstrated by their effects. Marvelous indeed is the beauty of their shining clearness, but much more so is the fact that (according to the shape that the craftsman has chosen to give them) they reflect back the shadow of the things

Jan 1, 1942

By Roger A. Harris

INTRODUCTION The Kidd Creek Mine produces a total of 3.6 million tons annually. Geologically the orebody is complex, containing rich values of zinc, copper, silver and lead which are mined and milled as two separate "ore types". Production is mainly from highly mechanized sub-level open stopes of approximately 300,000 tons each. The Mine Engineering Department has developed, and now operates, a computer system that is the subject of this report. It was created specifically to aid the daily work of the mining engineer and has features that are new and possibly unique in the industry. DESIGN OBJECTIVES In 1971 a task force, set up to investigate the subject of computer assistance to mine engineering, specified four design requirements which it felt a successful application had to satisfy. They were:- 1) The computer had to offer a TOTAL SYSTEM that was fully integrated into the routine mine engineering function. 2) The computer had to be directly usable by the current engineering staff, the majority of which had received no formal training in computing.

Jan 1, 1977

By O. W. Ellis

The writer has dealt with the effect of various methods of melting copper upon the gas content of the metal.' The copper referred to in his earlier paper was melted in the foundry both in the oil furnace and the electric furnace. As the metal did not measure up to conductivity standard, the term "casting copper" was applied to the material in the title of the paper. It was thought that some information in regard to the gases in a sample of overpoled copper might also be of interest, and through the courtesy of C. R. Stevens, superintendent of the copper mill of the West-inghouse Elec. & Mfg. Co., such a sample was obtained. The metal was chill-cast in the form of an ingot about 7 in. long, 2 1/2 in. deep (from the base to the raised surface of the ingot) and from 1 3/8 to 1 7/8 in. wide. A photograph of part of the ingot is shown in Fig. 1. The effect of over-poling on the surface of the metal is here quite clearly shown.

Jan 1, 1929

By O. W. Ellis

The writer has dealt with the effect of various methods of melting copper upon the gas content of the metal.' The copper referred to in his earlier paper was melted in the foundry both in the oil furnace and the electric furnace. As the metal did not measure up to conductivity standard, the term "casting copper" was applied to the material in the title of the paper. It was thought that some information in regard to the gases in a sample of overpoled copper might also be of interest, and through the courtesy of C. R. Stevens, superintendent of the copper mill of the West-inghouse Elec. & Mfg. Co., such a sample was obtained. The metal was chill-cast in the form of an ingot about 7 in. long, 2 1/2 in. deep (from the base to the raised surface of the ingot) and from 1 3/8 to 1 7/8 in. wide. A photograph of part of the ingot is shown in Fig. 1. The effect of over-poling on the surface of the metal is here quite clearly shown.

Jan 1, 1929

By G. A. Koenig, Moritz Stockder

Locality and Geological Occurrence. The Alpine region of Southwest Colorado, comprising the San Juan and Uncompaghre Mountains, is composed of a deeply eroded sheet of acid eruptive rocks, overlying in part gneissic sehists, and in part limestones and sandstones, including portions of the Silurian, Devonian, and Carboniferous systems. The section is clearly and beautifully exposed along the Uncompaghre River from its headwaters to its exit from the mountains. The river's course from the town of Ouray towards the Los Pinos agency is due north, and four miles from Ouray, in this direction, the Uncompaghre receives from the east the Red Cafion Creek. Following up the narrow caftan we find the section through white.. sandstone in strata dipping to the north and west, and belonging either to the lower or middle Devonian system. Presently the steep cafion-liko character of the ravine gives place to more gentle slopes, and we have entered crystalline rock-porphyry. The contact is well marked, for the sandstone, to a depth of from six to ten feet, resembles quartzite, i. e., is semifused. Ascending still higher, a small

Jan 1, 1881

By D. M. Hausen

The amenability of a given vanadium ore to any given treatment depends largely on the mineralogic combinations of vanadium in the ore. Quantitative data on vanadium mineralogy provide not only an objective basis for selection of proper treatment, but also may eliminate many time-consuming amenability studies whose results are empirical, at best. Vanadium is distributed through the interstices of mineralized sandstone ores in the form of oxidized vanadates, reduced oxides, and silicates. Oxidized vanadates, e.g., carnotite, tyuyamunite, etc., are most readily beneficiated by simple acid leaching. Reduced oxides are more slowly solubilized, but relatively amenable to most acid treatments. The layered silicates, roscoelite, mixed layered mica-montmorillonite, and chlorite, are least amenable to most acid extractions, and constitute an assemblage of vanadium- bearing clays that are common to many sedimentary deposits. Vanadium is combined principally as layered silicates in the clay fractions of many sandstone ores. Mineralogic studies in this paper are largely confined to clay minerals, and to their amenability characteristics in low pH liquors.

Jan 1, 1985

By Michel L. Bilodeau

The objective of delineation drilling is to provide a data base for the tonnage and grade estimates required to evaluate the economics of mine development. As drilling information is accumulated, geological risk is reduced and more reliable estimates of tonnage and grade are obtained. Investment in drilling is justified by the benefits which result from improving the reliability of the economic criteria evaluated. These benefits are subject to diminishing returns, i.e. as drilling information is accumulated the reliability of the economic criteria evaluated is improved but at a decreasing rate. At the same time, costs are incurred -- the direct investment cost associated with additional drilling and the time cost of delaying possible production revenues. The economic sampling limit is de- fined by the point at which the marginal benefits from drilling investment just balance the marginal costs. The paper describes the formulation of an economic model to optimize investment in delineation drilling. The model is applied to a simulated mineral deposit to illustrate the economic effects of a sequential drilling program.

Jan 1, 1977

By A. W. Griffith, R. G. Beverly, W. A. Millsap

THE Grand Junction Pilot Plant, operated by National Lead Co. Inc., for the U. S. Atomic Energy Commission, is engaged in the amenability testing of orebodies to establish design and cost data for commercial mills and to test new processes for recovery of uranium from ores. Test work was performed to study the effects of several variables on leaching of uranium ores in carbonate solutions. Many of these variables had been investigated in the laboratory, but pilot plant tests were desirable to evaluate their importance in semi-works equipment and to predict optimum operating conditions for future commercial mills. The results of these tests should serve as a guide in selecting the most efficient and economical method of leaching uranium ores amenable to a carbonate process. This article is concerned with a process in which uranium is extracted from the ore by a hot Na2CO3- NaHCO3 solution; the uranium-bearing solution is separated from the solid residue by filtration, and uranium is then precipitated by chemical means.

Jan 9, 1957

By Carl D. Broadbent

In 1956, Kennecott Copper Corp. instituted a slope mechanics program. Its objective was to obtain effi-ient and safe pit slopes. Since then, Kennecott has onducted a great deal of research into the area, most otably at the Kimbley Pit. This paper, which describes the transitional work at this period and draws from the pertinent experimental work done by others, paves the way for the next step of the program: refining the design process and applying it for profit. The goal of slope mechanics is to achieve efficient and safe pit slopes. In the case of ultimate mine slopes, the objective is to minimize the stripping ratio by steepening the slopes to their maximum stable limit. On the other hand, the inclination of working slopes is normally established by operating space requirements and the function of slope mechanics should be the continuous surveillance of slope conditions to assure long-term stability and provide timely warning of impending slides so that corrective measures may be incorporated in production planning. In 1956, Kennecott instituted a program to provide

Jan 1, 1970

By Y. Kondo, S. Yamazaki, Z. Asaki

Thermal deco7nposition of Pyrite particles in a fluidized bed with inert gas stream was studied. Assuming that heat transfer from the surroundings to the fluidized particles controls the overall decomposition rate, rate equations for the batch process and for the continuous process were derived. In the batch experiment, a linear rate equation satisfies the experimental results and the overall heat transfer coefficient calculated from the rate constant agrees fairly well with that obtained by Leva.l1 For the continuous process, two rate equations were derived, one on the assumption of complete mixing of particles and another on the upward piston flow of particles in a fluidized bed. The former holds for a bed containing a higher fraction of decomposed pyrite realized at lower feeding rates. The latter can be applied for a bed at higher feeding rates. Thus, segregation of particles in the fluidized bed was indicated at higher feeding rates. Bed temperatures also correspond to these conditions. ThERMAL decomposition of pyrite may be represented by Eq. [I]. The pressure of diatomic sulfur gas reaches 1 atm at about 690°C. The thermodynamics,' kinetics,2'3 composition, and properties3-5 of decomposed products of such a reaction have been studied. Pyrite is a very common sul-fide mineral and is often accompanied with other sul-fides. It is of basic interest in nonferrous metallurgy to clarify the behavior of pyrite in the pyrometallur-gical processes of sulfide minerals of metals such as copper, lead, zinc, nickel, and so forth. Interest in this reaction increased recently because of possible elimination of arsenic from pyrite in processing highly purified iron oxide pellets. Producing elemental sulfur from pyrite, instead of sulfuric acid, also aroused interest in this reaction. It is indicated that the thermal decomposition of solid particles, such as calcium carbonate, proceeds through three major sequential steps: heat transfer, interfacial chemical reaction, and mass transfer.637 It is known that the decomposed product of pyrite is very porous2, 3 and the diatomic sulfur gas evolved can easily escape through this layer of decomposed product. It depends upon the circumstances, therefore, whether the heat transfer to the interface within particles or the chemical reaction at the interface determines the overall decomposition rate. The enthalpy change in the decomposition of pyrite is about 33 kcal per mole FeS2 which is comparable to that of calcium carbonate. The decomposition of calcium car- bonate becomes more and more dependent on the rate of transport of heat when reaction temperature increases, such as occurs in a fluidized bed.6'7 It is reasonable to presume, therefore, that the thermal decomposition of pyrite, an endothermic process, carried out in a fluidized bed may be analyzed according to the heat transfer controlling model. This work intends, first, to propose a mathematical model that determines the overall rate in a fluidized bed for the decomposition process and, second, to investigate a few characteristics of the fluidized bed based upon the experimental results obtained. KINETICS OF THERMAL DECOMPOSITION IN A FLUIDIZED BED It is intended in this section to obtain rate equations for thermal decomposition of pyrite in a fluidized bed by assuming that the overall rate is determined by heat transfer from the surroundings to the particles. Both batch and continuous processes are considered. 1) Batch Process. To obtain the rate equation in the batch process, the following two additional assumptions are made. First, the temperature of preheated inert gas, tg, blown into the fluidized bed is assumed to be the same as the temperature of the fluidized bed, tf. Thus, no heat exchange occurs between the gas and particles in the bed and only the heat transfer from the reactor wall kept at tw to the particles is to be considered. Second, the decomposition is assumed to start at the outer surface of the particles and to proceed toward the center. At any given time during decomposition, undecomposed pyrite remains in the tori at a temperature: td. The decomposed shell is composed of FeS1+x whose outer surface is at tp Diatomic sulfur gas evolving at the interface is heated to tf during its escape through the decomposed shell. This is illustrated in Fig. 1. With the above-mentioned assumptions of heat transfer, we have:

Jan 1, 1969

By N. De Nevers

A calculation method has been developed for carbonated water flooding. This method takes into account the effects of oil viscosity reduction and oil swelling, due to carbon dioxide transferred to the reservoir oil from the carbonated flood water. It shows the effect of changes in carbonation pressure and carbonated water slug size. The method is based on a Buckley-Leverett-type linear flow model. The mathematical approach is similar to that developed by Welge, et al, for enriched gas drives. However, it contains a very important advance over the previous papers in its solution to the problem of injection of a "slug" of carbonated water rather than continuous injection of fluid of constant composition. The method also shows the chromatographic nature of the transport of Co 2 in a carbonated water flood. Sample calculations indicate that viscosity reduction is the most important source of incremental oil recovery. Swelling contributes to a lesser extent. Raising the carbonation pressure increases recovery, but this effect diminishes as pressure is increased. increasing the slug size also increases recovery, but again this effect diminishes as slug size is increased. INTRODUCTION In recent years there has been considerable interest in carbonated water flooding as a secondary recovery method. Several carbonated waterflood field tests are now in progress.1'3 Yet there is no published method for predicting the results of a carbonated water flood. This paper presents a method for predicting the oil recovery for ; carbonated water flood. In a carbonated water flood. a carbonated water slug is injected into the reservoir. Then this slug is driven forward by injecting plain water behind it. The field operator must choose the carbonated water slug size and the CO2:water ratio in the slug. The calculation method presented here shows the effects of both slug size and CO2:water ratio on oil recovery. The calculation assumes that the addition of carbon dioxide to flood water increases the oil recovery by two mechanisms: 1. Carbon dioxide transfers from the flood water to the oil, thereby reducing the viscosity of the oil. At the lower viscosity, the oil flows more readily and is more easily swept out by flood water. 2. The carbon dioxide which transfers to the oil phase causes the oil phase to swell. Assume that the residual oil saturation (volume per cent of pore space) is the same whether the oil is carbonated or not. Then the same volume will contain less stock tank oil if it is carbonated, due to oil swelling. The plain water driving the carbonated water slug forward will strip the CO2 out of this residual oil., causing this oil to shrink. This swelling-followed-by-shrinking leaves behind a lower residual oil saturation than would have been left behind by a plain water flood. Since some oils swell to almost twice their original volume at reasonable CO2 pressures, this effect may be large. Two additional benefits sometimes claimed for carbonated water flooding are: 1. Adding CO2 to flood water greatly increases the water injectivity in some cases.1 (Injectivity = BPD of water injected/ft of sand x differential bottom-hole pressure, psi.) CO2 forms a weak acid in water; injecting carbonated water is, therefore, somewhat like acid treating. If a formation responds to acid treating, it will probably have a higher injectivity for carbonated water than for plain water. Although the increased injectivity increases the profitability of a carbonated water flood over a plain water flood, it does not change the production curve based on total fluid injected. Therefore, the method presented here does not show any effect of increased injectivity. 2. It is claimed in one patent4 that carbon dioxide will react with some constituents of the oil to form detergents. These detergents are expected to increase the oil recovery. There is little data available to support this idea. The calculation method presented here takes no credit for extra oil recovery due to the formation of any such detergents.

Jan 1, 1965

The production of petroleum in India (including Burma) increased from 334,811,624 gal.' ill 1936 to 350,322,222 gal. in 1937, the highest figure in the history of the industry. The increase in 1937 was clue to an increase of some 20 million gallons from Singu, 51/2 million gallons from Attack, 11/4 million gallons from Thayetmyo, and 1 mi1lien gallons from Digboi, accompanied by decrcases of 91/2 million gallons from Yenan-gyaung and 2 million gallons from Yenangyat,. The amount of gasoline produced from natural gas during the year was 10,616,313 gal. in Burma and 456,780 gal. in the Punjab. Yenangyaung Field.—The Yenangyaung field maintained its reputation of being one of the most wonderful oil fields in the world. The total production during 1937 was less than in the previous year but the resources of the field as a whole are sufficient to ensure an adequate supply of oil for many years. At the end of 1037 there were 2910 wells producing in the field. Besides a large number of ells drilled to shallow sands, this total includes 180 hand-dug wells, whose continued existenice is one of the interesting features of the field. During the year the deep drilling activities of 1936 in the southern part of the field died down, owing to the disappointing results obtained. On the eastern flank the limit of present economic extension of the oil sands was approximately demareated. Satisfactory results continue to be obtained from gas drives in the leased blocks; gas is also injected for repressuring and storage. Casing policies continue to be carefully designed to protect the oil sands against the danger of flooding by water and, in general, production methods throughout the field are characterized by a realization of the importance of the conservation of oil and gas and the prevention of waste, whether simple or underground. Singu Field.—-In 1937 the increase in the output from the Singu field was continued. This increased production was due not only to the rapid development of the valuable area in the southern part of the field but also to the successful results obtained from the first wells to produce from behind the practically completed river training wall of the Burmah Oil

Jan 1, 1939

The production of petroleum in India (including Burma) increased from 334,811,624 gal.' ill 1936 to 350,322,222 gal. in 1937, the highest figure in the history of the industry. The increase in 1937 was clue to an increase of some 20 million gallons from Singu, 51/2 million gallons from Attack, 11/4 million gallons from Thayetmyo, and 1 mi1lien gallons from Digboi, accompanied by decrcases of 91/2 million gallons from Yenan-gyaung and 2 million gallons from Yenangyat,. The amount of gasoline produced from natural gas during the year was 10,616,313 gal. in Burma and 456,780 gal. in the Punjab. Yenangyaung Field.—The Yenangyaung field maintained its reputation of being one of the most wonderful oil fields in the world. The total production during 1937 was less than in the previous year but the resources of the field as a whole are sufficient to ensure an adequate supply of oil for many years. At the end of 1037 there were 2910 wells producing in the field. Besides a large number of ells drilled to shallow sands, this total includes 180 hand-dug wells, whose continued existenice is one of the interesting features of the field. During the year the deep drilling activities of 1936 in the southern part of the field died down, owing to the disappointing results obtained. On the eastern flank the limit of present economic extension of the oil sands was approximately demareated. Satisfactory results continue to be obtained from gas drives in the leased blocks; gas is also injected for repressuring and storage. Casing policies continue to be carefully designed to protect the oil sands against the danger of flooding by water and, in general, production methods throughout the field are characterized by a realization of the importance of the conservation of oil and gas and the prevention of waste, whether simple or underground. Singu Field.—-In 1937 the increase in the output from the Singu field was continued. This increased production was due not only to the rapid development of the valuable area in the southern part of the field but also to the successful results obtained from the first wells to produce from behind the practically completed river training wall of the Burmah Oil

Jan 1, 1939

By Dr. O’Neil Thomas J., Donald W. Gentry

Introduction “A Western mine is a hole in the ground owned by a liar. . ." -Mark Twain THE CAPITAL INVESTMENT DECISION Decisions pertaining to a firm's proposed capital investments can have vital short- and long-term consequences on the organization's ability to compete, and even survive.Capita1 investment decisions, in general, center around two fundamental activities: (1) allocating capital funds to specific investment projects or assets, and (2) obtaining necessary financing in such proportion as to increase the overall value of the firm. In essence these activities or decisions describe the science of finance (as contrasted with economics). Fimnce has been described in general terms as the study of how a present, known amount of cash is converted into a future, perhaps unknown, amount of cash (Archer, Choate, and Racette, 1979). Fundamental to understanding the science of finance and the capital investment decision process in general are the basic concepts relating to cash flow transactions, time, income generation (markets), expected returns, and risk. The functions of finance may be segregated into three fundamental decisions which a firm must address: (1) the dividend decision, (2) the financing decision, and (3) the investment decision. These decisions are interdependent and their joint impact on the objective of the firm must be considered. This book primarily addresses the concepts and components associated with the investment and financing decisions as they affect the practice of mine valuation. Responsibilities of Management A primary assumption incorporated in this book is that the fundamental objective of any firm is to maximize its value, or wealth of its owners (stock- holders). Here, the term wealth refers to the total current market value of the firm's assets. In the case of corporations, the wealth or value is considered to be represented by the market price of the firm's common stock. The price of the firm's common stock obviously will be affected by its investment, financing, and dividend decisions. Consequently, an optimal combination of these three decisions should maximize the value of the firm to its stockholders. It is important to point out that wealth maximization is a more appropriate and inclusive goal for the firm than profit maximization. Indeed, there is a difference between the two objectives in most situations. For instance, a firm can always raise profits by selling stock and investing the proceeds in treasury bills or certificates of deposit. This type of activity, however, would rarely cause net shareholder wealth

Jan 1, 1984

By Sidney A. Swensrud

Much has been said and written about uneconomic and evil marketing practices in the oil industry, including such factors as loaning of equipment, price cutting and secret prices, commercial discounts, abuses of credit cards and coupon books, and so forth. It is not my purpose here to add to the discussion of those problems, but rather to attempt a discussion of some of the more basic factors in the general distribution economies of the industry. The economics of distribution in the oil industry cannot be regarded apart from the general economics of the industry as a whole. The attempt to regard them as separate has led many people into the fallacy of believing that the responsibility for the apparent evils in the marketing end of the business lay entirely at the door of the marketing end. Such a view fails to take cognizance of many underlying factors; we can only expect to understand the distribution economics of the industry if we understand its general economics. We must realize also that the oil industry today is essentially the gasoline industry. The oil industry may be said to have begun about 60 years ago. At the outset it was concerned chiefly with the manufacture and sale of kerosene, lubricating oils and greases. Gasoline was then a most obnoxious by-product. The early oil-marketing company was engaged almost exclusively in refining and marketing—it did not concern itself with production but bore the relation to it merely of a purchaser. It may be said that the urge of marketing development in those days, therefore, came from the refining and marketing end of the business. The raw material had not yet begun to exert its enormous pressure, nor had the producer of crude oil acquired a direct interest in the sale of the ultimate finished products. Since then great changes have taken place. With the development of the automobile came a vast new demand for the raw material from which gasoline could be made. No longer could the refining and marketing companies be indifferent to the source of that raw material, particularly in view of the pessimistic outlook then presented as to the probable quantity of oil in existence. And despite the complete overturning of those early estimates, made before the bounty of nature and the skill of

Jan 1, 1931