Search Documents

By D. B. Dowling

The interest which has been aroused in prospecting for oil in the foothills of southern Alberta, and in the oil possibilities of the known gas fields situated in the less-disturbed areas, called for a much closer examination of the structure, thickness, and composition of the underlying rocks of the region than had hitherto been made. The areal geology of the larger part of the great plains was outlined by Dawson, McConnell, and Tyrrell, between 1881 and 1885. The foothill area was not critically examined at that time, owing to the time which would have been required for its proper study and the difficulty that was found in recognizing in the foothills the divisions which had been adopted in the mapping of the formations of the plains. This was due in great measure to the paucity of exposures in continuous sections of the lower divisions of the Upper Cretaceous. Since the pioneer work on the plains was published, the beds which form continuations south into Montana have been critically examined, The Canadian beds arch over the end of a flat anticline which rises to the south; and two sections in Montana, one on each side of the anticline, help to explain some of the difficulties previously encountered in the mapping of the measures found in the foothills. The index map, Fig. 1, shows the area studied, and its relation to southeastern Alberta, and to Montana. Problems of Correlation The principal difficulty experienced in correlation was in connection with the measures known as the Montana group. The beds of this group did not seem to agree in the two Montana sections. They showed the same differences to some extent as are encountered in comparing the foothill measures with those of the plains. The Montana group in Dakota and Manitoba consists of a series of shales of marine origin. In the eastern Montana section two sandstone members appear, leaving a shale member at the top and another

Jan 1, 1916

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 Louis Ware

BEFORE the war we often heard the term "Big Business." And there were complaints of the ills and abuses attributed to bigness in business. Although there were examples where the small businessmen spoke for their rights and sought protection from the bigger ones, it has only been in recent war years that a tendency has developed definitely to divide the business of our nation into the big and the small. In some cases, those with an eye to the political value of the vastly greater number of small businessmen of the country have fomented this division by hurrying to the protection of these more numerous voters, and intentionally or not have emphasized in their writings and verbal attacks any and all differences of these interests that could either be found or fabricated to, suit the occasion. It has become another example of breaking the people into classes and thus setting up the basis for the claims of one class against another, and the subsequent demand for legislation and Governmental aid. The terms "big" and "small" are purely relative. One businessman, employing a hundred men, told me recently he did not know which adjective would be more appropriately applied to his operation. He did not know whether he should join the small operators' group that had been organized, or should consider himself big. He said that his present plant seemed big to him when he looked back to its humble beginning many years ago with a couple of men in two rooms. Yet, when compared with many of his competitors who employ thousands, his was small. He did add, however, that he probably became big one day a few years ago when the union moved in and organized his employees.

Jan 1, 1945

By G. D. TRANT

HOT metal is commonly transported from the blast furnace to the open hearth by one or the other of two general methods: (1) by hot-metal ladles, usually in conjunction with a stationary mixer, or; (2) by means of mixer-type ladle cars, taking the place of both the hot-metal ladles and the stationary mixer. In both cases, the use of transfer ladles for charging the metal into the open-hearth furnaces is necessary. The American Rolling Mill Co. at its Middletown division, adopted hot metal practice on. June 2, 1928. The pig iron is produced' in a .blast furnace about 11 miles from the open-hearth furnaces, and is trans- ported in Pugh-type mixer cars having a capacity of 150 gross tons each. Three cars are in service and handle the delivery of hot metal to the pig machine and the open-hearth furnaces. The capacity of the blast furnace is 550 tons and casts are made every four hours.

Jan 1, 1929

By R. Greenwood

The advent of the space age and its promise of interplanetary flight has prompted new ideas for propulsion systems that will allow maximum energy with minimum fuel weight. The use of cesium as the source of energy for such rocket flights has been found desirable. Theoretical efficiency of a rocket fuel is measured in terms of specific impulse, defined as the number of pounds of thrust per pound of propellant consumed per second. Specific impulse is usually expressed in seconds (the number of seconds for which one pound of fuel would produce one pound of thrust) although it is really a measure of total energy, not of power. The most sophisticated chemical fuels have a specific impulse of 300 to 400 sec; liquid hydrogen heated by nuclear reactor has a specific impulse of 1000 to 1200 sec. Specific impulses as high as 20,000 sec, however, are theoretically attainable with the ion rocket, in which free cesium ions are accelerated across a voltage drop and ejected at high velocity.' Characteristics of the system have been sketched by Boden.2 The desirable properties of an ion propellant are: 1) low ionization potential, 2) low boiling point, and 3) high atomic weight. Alkali metals best fulfill these requirements, and Table I indicates the superiority of cesium. The use of heavy complex ions such as UCl3 is ruled out by their instability and other disadvantages.' Despite its enormous superiority in specific impulse, the ion rocket is inherently low-powered, capable of very small acceleration. Application of ion propulsion will be limited to large rockets and spaceships on missions requiring powered flight for weeks or months and employing a separate chemical propulsion system for escape from the earth's atmosphere where power requirements are large but of brief duration. For example, Kraemer and Larson3 considered the case of an unmanned 25,000-lb pay-load placed in a 300-mile orbit by chemical rockets, proceeding thence by ion propulsion to the vicinity of Mars, where it would go into orbit once again. Calculations provide for 8500 lb of cesium for such a voyage. The question of whether such quantities of cesium will be readily available to the space program does not appear to have been considered by geologists and mining engineers. Present Production and Uses Literature on industrial applications of cesium is scanty. The metal is used in scintillation counters, photocells, infra-red detection devices, and as a "getter" in low-voltage vacuum tubes. Production is sporadic and total figures are not published, but the annual consumption is measured in pounds rather than in tons. The few pollucite deposits known, small as they are, can easily supply the present limited demand for gram or pound lots of cesium. Until recently the price of cesium was $2 to $4 per gram, but according to Chemical Engineering, cesium salts are now available at $13 to $27.50 per lb. Geochemical Distribution As a large alkali ion, the cesium ion accompanies potassium in geological processes and tends to be concentrated in the latest crystallizing fractions of potassium minerals in much the same manner as rubidium. Most of the cesium in igneous rocks, therefore, is in the micas and potash feldspars of granites, and especially in granitic pegmatites. The cesium content rises markedly in the micas of the late by-drothermal replacement stage in complex pegmatite~.' Typically, cesium is only 0.5 to 0.01 times as abundant as rubidium in potassium minerals. Rb', with a radius of 1.47 A, is close enough in size to K' (1.33 A) so that rubidium forms no minerals of its own. Cs+ is so large (1.67 A) that only small concentrations can be taken up in potassium minerals; when cesium is present in solution in larger concentration it forms the mineral pollucite, Cs3-Na2A17Si17O48.3H2O, which is known only in pegmatites. In the weathering of igneous rocks, cesium is dissolved, carried to the ocean, and apparently in-

Jan 1, 1961

By Nathaniel Herz

The formula very frequently used for computing the economical size of pipe to transmit compressed air is that of D'Arey, as follows: D = cV w1l Where, D = the volume of compressed air delivered in cubic feet per minute, at the final pressure. c = an experimental coefficient determined for the various sizes of pipe, d = the diameter of the pipe in inches. 1 = the length of the pipe in feet. p, = the initial gauge-pressure in pounds per square inch, p2 = the final gauge-preesure in pounds per square inch. w1 = the density of the air, or the weight in pounds per cubic foot at the initial pressure, p1. The most common case is that in which the given quantities are: the quantity of air required, the length of the pipe, and the initial pressure. The method of solution is to assume a pressure-loss and to compute the remaining factor, cd5, thus giving the size of pipe corresponding to the assumed loss of pressure. It is always desirable to try two or more pressure-drops, in order to find the combination that is most satisfactory, since often a small change in the size of pipe will reduce or increase the loss of pressure several pounds. An alternative method is to assume a size of pipe and calculate the corresponding pressure-drop. Each method involves a series of tedious calculations to arrive at the most economical solution, and also requires the use of tables giving the constant, c, the density of the air, w1, and often, for convenience, a table giving the values of the expressions p1-p2 and c J I hare constructed a graphic chart, Fig. 1, for the solution of

Jan 1, 1913

A. Bement, Chicago,Ill. (communication to the Secretary*):— Formerly it was the general practice of engineers to designate coal that is free from moisture and ash as " combustible," notwithstandirig that it contains oxygen and nitrogen. The origin of this practice was more particularly due to the requirements in connection with boiler-testing, which demanded a consideration of that portion of the fuel which took part in the combuition-process because results based on a unit of either moist or dry coal were not comparable, since both moisture and ash were recognized as variable quantities. Thus, a pound of " combustible " became a standard of value, and was treated as a constant before employing measurements of heating-power and calculating therefrom the percentage of efficiency. The recognition of this term " combustible " was an advance to be credited to the engineer rather than to the chemist, because the latter, not having to do with the interpretation of analyses in practice outside the laboratory, usually saw no reason for reporting results in terms other than those of the moist-coal composition. Some years ago I needed a table of fuel-composition in terms of moist, dry, moisture-free and ash-free coal, and of the combustible components. This table required the use of the word combustible in its proper sense, for the purpose of designating carbon, hydrogen, and sulphur, instead of including these three elements with oxygen and nitrogen, to which aggregate the term combustible was formerly applied. To make such a tabulation involved either the use of the inconvenient and cumbersome term, "ash- and moisture-free coal," or of some other representative term, and for this purpose I adopted the expression pure coal, which is short, simple, convenient, and technically correct. It is also harmonious, because it agrees

Jan 1, 1909

By John Jermain Porter

The chief purpose of this paper is to indicate the laws governing the fuel-economy of the cupola, to examine the feasibility of some of the proposals for increasing its fuel-economy, and to show that the conditions limiting fuel-economy here are altogether different from those prevailing in the blast-furnace. The two methods available for studying the thermal efficiency of the cupola and determining the factors limiting fuel-economy are: 1, by the determination of the total heat-balance; and 2, by the application of the theory of critical temperatures. The case selected as an example represents a cupola operating under fairly efficient conditions. The data are as follows : Cupola, GO in. in diameter, 15 ft. high to the charging-door, with a 9-in. lining. Bed-charge, 2,000 lb. of coke and 4,000 lb. of iron. Subsequent charges, 400 lb. of coke and 4,000 Ib. of iron. Total number of charges, 20. There was 800 lb. of coke recovered from the drop, hence the total coke burned is 8,800 lb., or 0.11 lb. of coke per Ib. of iron. Coke contains 90 per cent. of fixed carbon and 2 per cent. of moisture. 300 1b. of kindling-wood is used in lighting. 80 lb. of limestone (95 per cent. of CaCO,) is used per charge, or 0.02 lb. per Ib. of iron. Melting-loss, 4 per cent.; distributed thus : Fe, 3.5; Si, 0.25; Mn, 0.25 per cent. Average analysis of top-gases : CO2, 15.1; CO, 10.0 per cent. Average temperature of top-gases, 1,600" F. Temperature of air and stock charged, 60" F. Dew-point of air, 50 F. The items entering into the total heat-balance and their calculation are as follows: 1. Heat of combustion of fuel.—Total heat evolved = 14,580 x lb. of carbon burned + 7,200 X Ib. of wood burned. Hence B.t.u. per lb. of iron charged =

Jan 1, 1913

By Fred C. Bond

Many grindability tests have been made in the Allis-Chalmers laboratory since the tabulated results were last published.' The lists of standard ball-mill and standard rod-mill grindability tests are brought up to date in this paper, and considerable new material is added. This includes a tabulation of open-circuit grinding tests, with impact and compression-crushing tests. The standard ball-mill grindability tests (Table I) were made in a standard laboratory ball mill, 12 by 12 in. inside, running at 70 rpm, with a charge of 285 iron balls ranging from 1½ to 3/4 in. in diameter and weighing 20,125 grams. Seven hundred cubic centimeters of minus 6-mesh stage-crushed dry feed was used, and the circulating load was maintained constant at 250 pct by adjusting the number of mill revolutions for each grinding period. Tests were made at all mesh sizes from 28 to 200, and the grindability is the number of net grams of screen undersize produced per revolution. The table includes 479 tests. It has been calculated that the ball mill does 52.3 joules of useful work on the ore per revolution2 with 93 joules input to the mill. The standard rod-mill grindability tests (Table 2) were made in a laboratory tilting rod mill, 12 in. in diameter by 24 in. long inside, with a wave-type lining, running at 46 rpm. The grinding charge consisted of six I1/4-in. diameter and two 13/4-in. diameter steel rods, all 21 in. long and weighing 33,380 grams. The mill was rotated level for eight revolutions, then tilted up 5' for one revolution, down 5° for one revolution, and returned to level for eight revolutions. It was discharged by tilting downward at 45° for 30 revolutions. Feed consisted of 1250 cc of minus in. stone and the circulating load was maintained constant at 100 pct by adjusting the number of mill revolutions for each grinding period. Tests were made at all mesh sizes from 3 to 65, and the rod-mill grindability is the number of net grams of screen undersize produced per revolution. The table includes 105 tests. The impact and compression-crushing tests (Table 3) are given in a table that is an extension of a previous publication8 in which the method of testing was described in detail. Two equal hammers weighing about 30 lb each were arranged to strike simultaneous blows on opposite sides of the test specimen. Broken pieces of rock passing a 3-in. square and retained on a 2-in. square were set up with the smallest dimension between the hammers, and this distance was measured. The height of the hammers was increased slightly before each blow until the specimen broke, and the foot-pounds per inch of thickness was calculated. Ten pieces

Jan 1, 1949

By Eugene McAuliffe

NO physical impairment can be more serious than the partial or complete loss of sight. With reasonably good eyesight, a person is equipped to care for life and I limb, provided a rational measure of t caution is manifested. When the sight of one eye is lost or badly impaired, one-half of this God-given asset is gone, and extreme care must be taken to prevent the tragedy of total darkness that closes out the beauty of sky, field and mountain, the faces of relatives and friends, and either removes entirely or in part one's capacity to produce and earn. During 1933, The Union Pacific Coal Co., operating ten coal mines in Wyoming, decided to undertake a visual survey of all of its mine operating officials and employees. Although the cost of workmen's compensation paid because of eye injuries was material, the management was more deeply concerned with the social loss and the suffering resulting from the many eye injuries. As every element of coal production cost must be scrutinized, accurate data on all accidents, with the workmen's compensation paid therefor, are carried forward monthly. The number of accidents to eyesight and the resultant compensation paid are shown in Table 1 for nine calendar years:

Jan 1, 1934

By Sterling G. Valentine

Until within late years, the preparation of sulphurous ores for the blast-furnace has received comparatively little attention. After the first improvement made on the old style of heap-roasting and roasting between walls, there has followed an almost general adoption of the Gjers kiln or some modification thereof, and the majority of iron-masters have seemed perfectly satisfied with so much progress. However, the Westman kiln was developed in Sweden, and other gas-roasters for sulphurous ores have been since constructed. They are in use on the continent of Europe and in America to a limited extent. The following experiments were made in order to furnish additional information as to the proper conditions for the elimination of sulphur from ores where it is present as sulphide of iron, FeS2 I desire here to acknowledge the Kindness of Dr. Franklin Menges, of the laboratory of Pennsylvania College, at Gettysburg, Pennsylvania, for lending his valuable aid in carrying out a part of these experilnents and analyses. In the first series of these experiments, pure, roughly-pulverized pyrites crystals were used, containing 53.42 per cent. of' sulphur. They were made with a view to determine the effect on pyrites, of heat alone, in various degrees of intensity and duration, air being altogether excluded. The heats at a low temperature were made in glass combustion-tubes, sealed at the end, where the pyrites to be tested were placed, and with only a small opening at the opposite end. Although not allowing circulation, this arrangement still permitted a part of the evolved sulphur to escape. The heats at high temperatures were made in Hessian and graphite crucibles, tightly luted, every precaution being taken to exclude air. The temperatures attained are given approximately, and are as nearly correct as it was possible to estimate them, using Pouillet's scale as a guide.

Jan 1, 1890

By James F. Kemp

Jan 1, 1914

MEN AVAILABLE Engineering Manager, many years' experience in design, construction and operation of industrial plants and mining properties, requiring a knowledge of mechanical, electrical, civil and mining engineering. Have directed many men and engineers working on foregoing projects. Domestic and foreign experience. Now available. M-702. Mining Engineer, 36, married. Thirteen years' experience underground mining operations; exploration, development, mine evaluation, cost estimation and job evaluation. Registered Professional Engineer. Employed. Available reasonable notice. M-697. Mining Engineer, B.S. plus 2 years' pre-law. Three years' experience; completed training program all phase open pit and underground. Last 2 years sintering, nodulizing and wash plants. Varied pre-professional job experience. Veteran, 32, married, 2 children. Available immediately. Will consider any location. M-703.

Jan 1, 1952

By E. H. Bunce

CONTINUED progress in zinc metallurgy has been shown during 1933 by the adoption of new methods as well as the modernization of old processes and equipment, and by the initiation of new fields of activity for future advancement. The use of suspension roasting continued to grow as its advantages and adaptability became increasingly, apparent. The process developed by the National Smelting Co., Ltd., several years ago, of completely roasting on large sintering machines with utilization of the gas for acid manufacture has worked so successfully that an additional machine was installed during the year. At both the Swansea and the Avonmouth Works all of the ore for smelting is now roasted on the large sintering machines, thereby completely eliminating the old hearth-roasting furnaces. Work continued on obtaining partial purification of zinc ores from lead and cadmium by close control of conditions on the sintering machine, and in a few instances by chlorine additions to the ore before sintering. Ores so treated were either partially roasted or com-

Jan 1, 1934

By Warden A. Moller

(Pittsburg Meeting, March, 1910.) THE Fushun coal-field, now being opened up by the South Manchurian Railway Co., is connected with the main line by a branch, 30 miles long, from Sui Chia Tun, 10 miles south of Mukden, the capital of Manchuria. The coal-field, which lies on the southern bank of the Hun river, 25 miles east of Mukden, consists of a long narrow valley,. running east and west between hills composed of granitic and volcanic rocks. At the foot of the northern hills, the Hun river flows westward towards the Liao river, which drains the greater part of South Manchuria. At the foot of the southern hills, resting immediately upon volcanic rocks, and overlain by 20 ft. of alluvial, is a thick layer of Tertiary shales, carrying near the base two coal-seams. In many places the lower of these two seams is in immediate contact with volcanic lauds and basalts, the flows of which were evidently both prior and subsequent to the formation of the coal-seams. This contact has practically destroyed the lower seam for commercial purposes. The value of the field lies in the upper seam, which, for a length of nearly 8 miles, varies from 100 to 130 ft. thick. Of this seam, 85 per cent is good coal. The seam dips to the north conformably with the shales, at angles of from 25° to 30°, and appears to have an uninterrupted dip for about 1.5 miles before being possibly cut o$' by the northern hills. The coal-bearing shales extend east and west for a length of about 20 miles, but towards the east the continuity of the seams is broken by intrusive rocks. The coal is of the sub-bituminous variety, low in ash, bright in appearance, and breaks with a conchoidal fracture. It has the usual qualities of Tertiary coal-quick steam-raising and poor stacking-qualities. Pieces of resin, varying in size from

Apr 1, 1910

By HENRY M. HOWEL

1. Introduction.-The first part of this papers treats of the causes and the restraining of piping in steel ingots; the second& considers the causes and the restraining of -segregation; and the third proposes certain precautions in engineering specifications concerning these two defects. Into their causes I have looked carefully, with the purpose of arriving at rational methods of restraining them, and at efficient ways of detecting. and measuring the harm which they cause, so as to benefit the public by reducing this harm at once effectively and with the least expense to the manufacturer, and therefore in the end with the least expense to the consumer. In Part I., I infer that the pipe is chiefly due to what I, call the virtual expansion of the outer walls of the ingot in the early part of the freezing. I find that the upper and smooth-faced part of the pipe probably forms while the interior is still molten, but that the lower, steep, and crystal-faced part probably forms in metal which is already firm. Of the five causes which may co-operate to limit the depth of the pipe, I find that three-blow-holes, sagging, and the progress of freezing from below upwards-are usually effective. I find that the pipe may be lessened by casting (1) in wide ingots,; (2) in sand molds, especially if these are pre-heated (this is rarely expedient); (3) at the tops instead of at the bottom; (4) slowly; (5) and with the large end up; (6) by the use of a sinking-head or other means of retarding the cooling of the top; (7) by permitting blow-holes to form; and (8) by liquid compression.) Most of these I consider in some detail, and in particular I dwell on the advantages of casting with the large end up, and I propose certain administrative arrangements to permit this.

Mar 1, 1907

By O. J. C. Runnalls, L. M. Pidgeon

Some observations on the kinetics of the iodide process are reported. The deposition rate is geometry-sensitive in a system containing a finely divided titanium charge. Further, results indicate that the iodine diffusion rate influences the velocity of the process. The nonvolatile iodide, Til,, forms in the hot filament zone, thus removing iodine from the cycle. TITANIUM metal of 99.9 pct purity may be prepared using a refining technique originated by Van Arkel and de Boer.' The purity of this metal, commonly called iodide titanium, exceeds that produced by any known process. In a recent application, the method was employed by Gonser et al.² to prepare titanium rods up to 2 to 3 cm in diam. In the Van Arkel-de Boer system, the relative influence of the fundamental mechanisms: l—production of titanium iodides, 2—gaseous countercurrent diffusion, and 3—decomposition, on the deposition rate have not been clearly established. Blocher and Campbell" have indicated that the controlling step in the process under practical conditions of operation may be the reaction rate of iodine with the crude metal. Fast' reported that crude titanium metal reacted with iodine rapidly, even at room temperature, in his apparatus. Little has been reported on the effect of gaseous diffusion or decomposition on the deposition rate. It is these aspects of the process about which this investigation is centered. An attempt has been made to separate these latter effects from those due to the formation of the iodides at the crude metal surface by a division of the experimental program. Reaction of Iodine with Titanium Apparatus: In the investigation of gas-metal reactions of this type, the chemical reactivity of the halogen and halide vapors dictates the use of all-glass apparatus. In such a system standard techniques for measuring reaction rates are difficult to employ. Here, a simple apparatus was devised (Fig. 1) so that some indication of the reactivity of titanium powder with iodine vapor could be obtained. A stream of iodine gas was evolved from a bulb of controlled temperature and passed over a sample of titanium powder heated in a horizontal tube furnace. The product of the reaction, TiI4, volatilized and was condensed outside the furnace in a series of four glass bulbs, each cooled to room temperature in turn. Preliminary experiments indicated that distillation was retarded in a sealed evacuated system due to a pressure build-up in the condensing end of the apparatus. Hence, the system was pumped continuously using a mechanical pump and two oil diffusion pumps in series, through a liquid air trap. The iodine bulb was made large and a capillary restriction was inserted between the titanium bulb and the condensers so that the iodine pressure over the metal would approach the equilibrium pressure over solid iodine crystals. The effect of this restriction on the evaporation rate of TiI4, was determined separately. The iodine bulb was heated in an oil bath controlled to ±2°C. The titanium bulb temperature was automatically controlled to ±5°C. Procedure: About 200 mg of —30 mesh titanium powder, weighed to 0.1 mg, was placed in the reaction bulb after part B had been joined to part A. The powder was tapped into a long (5 cm) shallow mass along the bottom of the tube. Two chromel-alumel thermocouples were inserted into the magnesium radiator which was clamped to the reaction

Jan 1, 1953

By Peter J. Maxworthy

INTRODUCTION There is no hard and fast rule on whether functions within a company, diversified or otherwise, should be strongly centralized or decentralized. In all diverse organizations, there are certain basic functions which remain common (or central) to each element of the business, viz: Personnel Management Cash Management Taxation Management Legal Planning Accounting Standards It would follow that each of these common factors requires some supervision at a central level to ensure that overall group objectives are met. It is true that other functions including: Industrial Relations Marketing and Distribution Production Research and Development Purchasing Management Accounting may also be common to each element of the organization. However, there is far less commonality in the degree to which these functions are central to the efficient performance and financial well-being of the business. Role of Operating Units The resources of operating centers may be viewed as a bank of funds, the nature of which can be changed from time to time, but the employment of which must provide for ongoing increases in the net worth of the total enterprise expressed in terms of market values. Operating units are required to continually review products, methods, and opportunities and to monitor avenues for incremental investment--all with a view to attaining the necessary additive net present value of future cash flows of the enterprise. Operating units should be permitted sufficient autonomy to enable the best use to be made of the skills and experience of the people it employs in order to produce a return appropriate to the value of assets employed. Role of Head Office The head office will typically comprise a specialist group--the leaner the better if one strongly adopts the decentralist approach--often acting as Service Centers but also performing a control function in the corporate sense. The head office function is a cost center. It may be instrumental in developing strategies for increasing revenues or reducing costs on a group scale, but it does not generate revenue. Every dollar spent on this function is an extra dollar to be generated by the operating centers in order to achieve an increase in corporate wealth. TREASURY MANAGEMENT Treasury management is concerned with the provision of finance, cash-flow management, and risk analysis. Each decision taken within the enterprise has a cash implication. It follows that a well-integrated central Treasury function can, in all likelihood, produce economic benefits. The degree to which the function should be centralized depends largely upon the unique nature of the operating units it is servicing. Levels of ownership, the calibre of unit operating managers, and the nature and geographic distribution of the business are all factors determining the degree to which the Treasury function is centralized. In the case of Peko-Wallsend, the Treasury Department is small, comprising four people. While divisional cash-flow management is largely decentralized, Treasury is responsible for the daily management of funds surplus to the immediate needs of operating units. Treasury also operates as central banker and provides funds to

Jan 1, 1985

By I. R. Taylor

Union Carbide has recently developed two open- pit vanadium mines in the Wilson Srpings area of central Arkansas about five miles southeast of Hot Springs. The ores from these mines, together with those from a larger vanadium deposit at nearby Magnet Cove, are processed at a new 1600- tpd plant built by the company in the immediate vicinity (Fig. 1). The Wilson Springs vanadium deposits are associated with the Potash Sulfur Springs intrusive, a circular igneous complex which is exposed over an area that is somewhat less than a mile in diameter.1 The complex has a crude ring structure similar to that of the larger Magnet Cove instrusive six miles to the east.2

Jan 4, 1969