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By AIME AIME

A COMMITTEE of the American Railroad Association, consisting of Samuel Rea, president of the Pennsylvania System, Chairman; F. D. Underwood, president of the Erie Railroad; A. T. Dice, president of the Philadelphia & Reading Railroad; E. J. Pearson, president of the New York, New Haven & Hartford Railroad; and C. H. Markham, president of the Illinois Railroad (who was represented at the meeting by J. F. Porterfield of his system), met at the headquarters of the American Institute of Mining and Metallurgical Engineers, New York, on April 6 to assist in the Coal and Coke Committee's attempt to solve the bituminous coal problem. There was a full discussion of the questions of seasonal freight rates and the purchase by the railroads during the slack months of their winter's supply of coal. As the question of fuel supply for the railroads is in the hands of the Railroad Association, as well as the coal operators, it was vital that it should be represented at this important conference. The situation from the point of view of the mine operators was presented very thoroughly. No seasonal rates were considered necessary for the year 1920, and, as this matter requires considerable thought, it will be given thorough study and worked out in detail at a subsequent meeting.

Jan 1, 1920

By NEWTON B. KNOX

PERU, lying south of Ecuador and having common frontiers with Brazil, Chile, and Bolivia, includes over a thousand miles of the Andean mountains. The coastal plain is arid and narrow and the Amazonian jungle region is of interest only on account of its oil and gold placer possibilities. The mountain zone, however, here forms one of the world's most highly mineralized regions. The Peruvian Andes, like their Bolivian and Ecuadorian counterparts, form two distinct chains separated by the great Apurimac and Maralion valleys; but these rivers cut through the Eastern range to join the Amazon drainage, and the central valley is missing north of the passes thus formed by these rivers; the localities where the ranges are joined are aptly called knots. In addition, in central Peru, there exists a third range lying to the east of the first two and separated from them by the Urubamba and Huallaga Rivers. The Eastern range, however, is of little importance to the miner for few metal deposits are to be found therein except for the gold mineralization in the South. In general, deposition of metals in the Peruvian Andes accompanied igneous intrusions which invaded the folded Paleozoic and Mesozoic rocks during the Tertiary; thus the ore bodies are all typical of shallow or moderate depths.

Jan 1, 1945

By AIME AIME

NO ADEQUATE salary scale, at the present time, can ignore the increase in the cost of commodities 'during the last few years or- afford to assume that this increase is merely temporary. A study of the change in prices and wages during and after the Civil War is of interest in connection with changes that have taken place from 1913 to 1919. The curves on the accompanying figure, based on reports of the War Industries Board and Department of Labor, show these changes. During the Civil War retail prices rose to 164,2 per cent. of the prices of 1860, during the next 8' or 10 years. It is interesting to note that the rise in wages during the Civil War was almost simultaneous with the rise in the prices of commodities. During the World, War, the rise in wages has lagged about a year behind the rise in prices. Furthermore, in the period immediately, following the Civil War, wages continued to rise after prices started to fall, The present price level is not considered merely temporary by such of our Government agencies as the Department of Labor and the Federal Reserve Board or by such economists as Irving Fisher' and J. S. Holden.2 Sub-

Jan 1, 1920

By P. B. Baxendell

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

By J. J. Bodmer

Although the similarity between puzzolana, or trass, and blastfurnace slag, as seen by comparison of the analyses, is a well-known fact, blast-furnace slag has not been used commercially as a substitute for those cementing materials. The reason, the writer apprehends, lies in the fact that unless such slag is disintegrated or subdivided by rolls, the process must either be too costly, or the material is not in a fit and proper condition for the purpose. In order to produce a reliable slag cement, the slag must be ground together with the lime into an impalpable powder. The subdivided slag must, therefore, be perfectly dry, and, at the same time, friable. The stronger the hydraulic properties of the lime, the more reliable the slag cement will be, and practice has proved, that the slag from a gray-iron furnace gives the best results. The slag cement which has given the results shown in the annexed table, under pressure tests, was composed of six parts of slag, from a blast-furnace producing No. 3 foundry iron, and one part of lime, of medium hydraulic properties. The above-described class of cement bears storing as long as most Portland cements, and the cheapness of its production is self-evident.

The American Federation of Labor adopted 'the following resolution at its Atlantic City convention: "WHEREAS, scientific research and the technical application of results of research from a fundamental basis upon which the development of our industries, manufacturing, agriculture, mining, and others must rest; and WHEREAS, the productivity of industry is greatly increased by the technical application of the results of scientific research in physics, chemistry, biology; and geology, in engineering and "agriculture, and related sciences; and the health and well-being not only of the workers but, of the whole population as well, are dependent upon advances in medicine and sanitation; so that the value of scientific advancement to the welfare of the nation is many times greater than the cost of the necessary research; and WHEREAS, the increased productivity of industry resulting from scientific research is a most potent factor in the ever-increasing struggle of the workers to raise their, standards of living, and the importance of this factor must steadily increase since there is a limit beyond which the average standard of living of the whole population cannot progress by the usual methods of re-adjustment, which limit can only be raised by research and the utilization of the results of research in industry;. and

Jan 8, 1919

By J. J. Bodmer

ALTHOUGH the similarity between puzzolana, or trass, and blast-furnace slag, as seen by comparison of the analyses, is a well-known fact, blast-furnace slag has not been used commercially as a substitute for those cementing materials. The reason, the writer apprehends, lies in the fact that unless such slag is disintegrated or subdivided by rolls, the process must either be too costly, or the material is not in a fit and proper condition for the purpose. In order to produce a reliable slag cement, the slag must be ground together with the lime into an impalpable powder. The subdivided slag must, therefore, be perfectly dry, and, at the same time, friable. The stronger the hydraulic properties of the lime, the more reliable the slag cement will be, and practice has proved, that the slag from a gray-iron furnace gives the best results. The slag cement which has given the results shown in the annexed table, under pressure tests, was composed of six parts of slag, from a blast-furnace producing No. 3 foundry iron, and one part of lime, of medium hydraulic properties. The above-described class of cement bears storing as long as most Portland cements, and the cheapness of its production is self-evident.

Jan 1, 1874

Minute of the Board of Directors, Jan. 26, 1917 In the name of all the members of the American Institute of Mining Engineers, this Board extends to. Mr. Herbert C. Hoover, an honored Vice-President of the Institute, on the occasion of his present temporary return to his native land, the cordial welcome of his colleagues, and their congratulations upon the noble work splendidly done by the Commission for Relief in Belgium of which he is the head. It is understood that a leading purpose of Mr. Hoover's visit to America at this time is the collection of additional funds, to be administered by his Commission in the care of the destitute children of Belgium. To this enterprise endorsed by both the belligerent parties, as well as inspired by the purest and tenderest sentiments of humanity, contributions are solicited from engineers, especially through an organization known as the "Belgian Kiddies Limited," which this Board, heartily approving its object and method, recommends to the consideration of the members of the Institute. On motion duly seconded it was unanimously VOTED.-That this minute be spread upon the record of the Board, and published in the Bulletin, and that a copy thereof be transmitted to Mr. Hoover, and to the San Francisco Section of the Institute.

Jan 3, 1917

INTO their great Pacific Northwest counting house went the members of the Industrial Minerals Division recently, to count their blessings amidst the scenic grandeur and mineral wealth of the State of Washington. From their vantage point in Seattle, those who attended the IMD's fourth Pacific Northwest meeting turned their sights to the South and Southeast, scanned Montana, Idaho, Oregon and Utah, and predicted a very healthy economic future for their region. The praises of Idaho's booming phosphate industry were sung by Earl W. Murphy, secretary of that State's Chamber of Commerce. He said the establishment of Fort Hall, on the banks of the Snake River near Pocatello, first turned the eyes of the world toward what is now the center of the greatest known deposits of phosphate rock-the section adjacent to the common corners of Idaho, Wyoming and Utah. With the founding of Fort Hall, Mr. Murphy said, historians will also rank the construction of the first electric furnaces for the production of elemental phosphorous as equally significant in the commercial history of the West. Those furnaces were installed only last year by the Westvaco Chemical Div. of the Food Machinery & Chemical Corp. at Pocatello, at a cost of $8 million.

Jan 7, 1950

By Oliver B. Hopkins

During the year 1936, a new high record was established for Peruvian production, the total amounting to 17,594,689 bbl., which brought the cumulative production of the country up to 205 million barrels. The 1936 figure represents an increase of 530,288 bbl. over that of 1935. The property of the International Petroleum Co. contributed 369,577 bbl. of this increase and the Lobitos property 158,233. Exploration work in the country was continued. The Selden Breck Co. examined a strip of the National Reserve in eastern Peru from Tambo del Sur to the Rio Pachitea. This company was granted a concession for a term of four years embracing approximately 50,000 acres near the confluence of the Rio Pachitea and the Rio Ucayali. During the year, the Peruvian Government commenced drilling a well on one of the reserved zones at Zorritos. At the end of the year, this well had reached a depth of 1300 feet. La Rrea-Parinas Estate.—Production on the La Brea-Parinas Estate of the International Petroleum Company, Ltd., reached an all-time high in 1936 of 15,126,491 bbl., an increase of 369,577 bbl. over the 1935 record. The total production from 1890 to 1936 was 163,668,014 barrels.

Jan 1, 1937

By E. T. Cox

WHILe engaged, in the year 1856, in determining the oil-bearing properties of some bituminous coals from Western Kentucky, by subjecting them to dry distillation in an iron retort, which held about a pint;, and to the neck of which were attached several bottles, for collecting the carbon oils, and washing and measuring the gas, I observed that there was a very great gain in the weight of coke thus made, over that obtained from the same coal when charred in a platinum crucible, as is usual in the laboratory for making the proximate analysis of coal. It was thought at the time that the increase of coke, by the former mode of treating the coal, was due to the pressure which the retarded gas exerted upon the solid carbon, and the possible fixing of a portion of the carbon from the volatile hydrocarbons. For the purpose of obtaining a more definite idea of the effects of pressure on the coking of coals, a series of experiments were made this spring under my direction, by my assistant, Dr. G. M. Levete. The results are highly instructive and full of interest, since they point out some peculiarities in the nature of bituminous coals which

By E. T. Cox

WHILE engaged, in the year 1856, in determining the oil-bearing properties of some bituminous coals from Western Kentucky, by subjecting them to dry distillation in an iron retort, which held about a pint, and to the neck of which were attached several bottles, for collecting the carbon oils, and washing and measuring the gas, I observed .that there was a very great gain in the weight of coke thus made, over that obtained from the same coal when charred in a platinum crucible, as is usual in the laboratory for making the proximate analysis of coal. It was thought at the time that the increase of coke, by the former mode of treating the coal, was due to the pressure which the retarded gas exerted upon the solid carbon, and the possible fixing of a portion of the carbon from the volatile hydrocarbons. For the purpose of obtaining a more definite idea of the effects of pressure on the coking of coals, a series of experiments were made this spring under my direction, by my assistant, Dr. G. M. Levete. The results are highly instructive and full of interest, since they point out some peculiarities in the nature of bituminous coals which

Jan 1, 1875

By T. D. Yensen

AT the symposium on gases in metals held at the Annual Meeting of the Institute in New York in February, 1933, a suggestion was made1 that the term "gases in metals" as now employed is unsuitable as descriptive of the substances usually involved in that term. The Executive Committee of the Iron and Steel Division thereupon appointed a subcommittee, composed of the authors of this paper, to study the "nomenclature involved in the general subject of gases in metals, including the name itself" and to report its findings to the Executive Committee. The subcommittee decided at once to discuss the subject with an "Advisory Council" composed of representative metallurgists, metallographers and analytical and physical chemists in the Pittsburgh district.2 As a result of conferences held by the subcommittee and with the Council, a report with recommendations was submitted to the Executive Committee at an open meeting on Oct. 5, 1933, during the National Metals Congress in Detroit. The report and recommendations were accepted, and the subcommittee was instructed to proceed with the dissemination of the report for the purpose of having its recommendation generally adopted either as it was or in a modified form as a result of further discussion.

Jan 1, 1934

By B. B. Zavoico

Considerable progress has been made during the past year throughout the Russian petroleum industry. Perhaps the most remarkable achievement is the execution of the programs set out by the Central Planning Bureau of the Department of Commerce. These programs have been increased twice during the past operating year, necessitating drilling the richest reserves, instead of developing gradually as originally planned. The fulfillment of the set-out programs during the past few years makes therefore the present five-year plan of considerable importance to the international oil statisticians in approximating actual supply conditions up till 1933. The production of all Russian fields increased by 14,200,000 bbl. as compared with the 1927-1928 operating year, while the next year's program anticipates a further increase of 15,700,000 barrels. It appears therefore that production for 1932-33 will total 187,000,000 bbl., or approximately double that of the operating year just closed. It is also evident that the old fields are counted upon to produce only about 67 per cent. of the total, the new fields, not yet discovered, to furnish the balance of 33 per cent. The Soviet oil leaders therefore are hoping to have new fields discovered and developed by 1932-33. However, as in the past wildcatting

Jan 1, 1930

By V. M. Lovell

The recovery of apatite from the phoscorite ores occurring in the Transvaal, Republic of South Africa, involves a flotation process that is particularly difficult to characterize from a fundamental point of view. However, the reagents used, (tall oil fatty acid, nonylphenyltetraglycol ether, sodium silicate, and sodium hydroxide) can successfully bring about a separation of apatite from dolomitic calcite, which is the most troublesome gangue component. Recently, it has been demonstrated with some flotation feeds that the addition of certain polysaccharides can improve the flotation significantly. It has been shown that the metallurgy obtained is closely linked to the nature of the froth, and this, in turn, is influenced, often dramatically, by the presence or absence of certain of the reagents. The character of the froth depends less on the inherent frothing ability of these reagents than on the presence or absence of fine mineral particles in the froth, and on their surface characteristics and state of aggregation. The polyglycol ether and the polysaccharides have been shown to affect these properties, and it is suggested that a major function of these reagents is to modulate the properties of the fine particles in the pulp, thereby changing the character of the froth and giving rise to improved results.

Jan 1, 1976

By Richard A. Busch, Roy L. Soderberg

Large, high, open stopes resulting from vertical crater retreat (VCR) and similar methods are usually filled with sand tailings to support the stope walls and make it possible to mine the pillars. The hydrostatic head resulting from these high stope fills demands extremely heavy bulkheads in the crosscuts to withstand the pres- sure. Occasionally, these bulkheads fail because there are no drains or the installed drains are inadequate. Costly flooding of the mine and loss of life result from these failures. With proper design of blanket drains and filters, the fill can be made failure-proof, requiring only a minimum bulkhead, designed specifically for zero water retention. The effectiveness of the blanket drains can be increased by laying perforated pipes on the bottom of the crosscut within the blanket drain. These drains can have a safety factor of 10 with minimal expense. When the water is properly drained, the hydrostatic pressure on the bulkhead is reduced to zero, leaving only the lateral pressure of the sand. This lateral pressure is partially dissipated by arching and shear against the crosscut walls and consolidation of the tailings as the water is drained. The bulkhead should be placed at least one cross-cut diameter back from the collar of the drawpoint.

Jan 1, 1983

By C. Schlumberger

SINCE the, beginning of the year 1928 the senior authors and their associates have applied a series of procedures which makes possible the detailed study in situ of the formations traversed by a drill hole before the casing has been landed. They have given the name "electrical coring" to the ensemble of these processes, which now replace in a large measure the mechanical coring performed by the drillers, and permit the gathering of bottom-hole data hitherto unobtainable. Three years have elapsed since the technique and interpretation of these measurements emerged from the experimental stage and entered the field of industrial application on a large scale. The total length of drill holes so far surveyed by the authors and their associates, all over the world, amounts to several millions of feet. Practical and strongly built equipment has been evolved, which permits the examination in a short time of an open hole several thousand feet long. No comprehensive paper has yet been published discussing the essential principles of the processes applied and bringing into evidence their economic interest. This is the object of the present paper.1 Numerous examples of field work performed under varied geological conditions are given, constituting a concrete illustration of the services rendered by the new methods.

Jan 1, 1932

By Herbert Clark Hoover, Lou Henry Hoover

IN the last book I have explained the methods of delimiting- the meers along each kind of vein, and the duties of mine officials. In this book1 I will in like manner explain the principles of underground mining and the art of surveying. First then, I will proceed to deal with those matters which pertain to the former heading, since both the subject and methodical arrangement require it. And so I will describe first of all the digging of shafts, tunnels, and drifts on venae profundae; next I will discuss the good indications shown by canales2, by the materials which are dug out, and by the rocks ; then I will speak of the tools by which veins and rocks are broken down and excavated ; the method by which fire shatters the hard veins ; and further, of the machines with which water is drawn from the shafts and air is forced into deep shafts and long tunnels, for digging is impeded by the inrush of the former or the failure of the latter ; next I will deal with the two kinds of shafts, and with the making of them and of tunnels ; and finally, I will describe the method of mining venae dilatatae, venae cumulatae, and stringers.

Jan 1, 1950

By Roy McLellan

THE slags derived from the smelting of lead and copper ores are composed essentially of silicates. The problems arising from the smelting of these ores consequently involve the study of silicate fusions. In the absence of specific knowledge concerning the compounds occurring in slags, it has been the practice of metallurgists to treat them in terms of their total chemical composition. Slags have been classified as monosilicates, bisilicates, sesquisilicates, and subsilicates according to the relative amounts of oxygen in the acid and basic radicles of the hypothetical salt produced. While this has been a useful guide to metallurgists in computing the furnace charges, it falls far short of a basis for the scientific investigation of slags. In order to understand the nature of a slag as a whole it is necessary to learn the physical and chemical properties of the mineral compounds which go to make up that slag. The efficiency with which an ore is smelted in a furnace depends primarily on the physical properties of the compounds formed during the operation. When the melting points and fields of stability of each of the mineral compounds in slags have been established, it will be possible to determine the properties of any given slag by examining the nature and amounts of its mineral constituents.

Jan 1, 1930

By L. H. Simons, H. H. Spain

I NT RODUCTION Theory indicates that linear water-floods should exhibit scaling and stabilization properties in both oil-wet and water-wet porous media'. Experimental verification of these proper-ties in oil-wet media was obtained some time ago', and more recently, Perkins', employing a high permeability unconsoli dated sand and a low oil-to-water viscosity ratio, has obtained flooding data in a water-wet medium which follow the pattern of scaling and stabilization. Also, Root and Calhoun3 have found similar trends in the displacement of gas by liquids from unconsolidated sands. In general, however, the experimen-tal evidence appears still somewhat conflicting since scaling and stabilization of water floods in water-wet media has not been observed in most of the studies to date'.".'. The purpose of this paper is to provide a more comprehensive picture of waterflood behavior in water-wet media and to corroborate the validity of the scaling and stabiliza-tion concepts. The need for differentiating between the intrinsic nature of water-oil displacements inside a porous medium and perturbating secondary end effects is discussed, pertinent experimental procedures are outlined and the results of flooding tests conducted at low and at high oil-to-water viscosity ratios on con- solidated, water-wet Alundum cores are analyzed. END EFFECTS IN WATER-WET MEDIA Outlet End Effects The peculiar feature of the outlet end effect in water-wet cores is that it not only results in an excessive wetting phase saturation at the outflow face,'.' but that it also retards the moment of water breakthrough: i.e., causes an undue delay in the appearance of water in the produced effluent. Conditions existing in a water-wet core when water first arrives at the outflow face are schematically shown in Fig. 1. At this flooding stage the saturation distribution, Fig. la, has not yet been distorted by the outlet end effect. A water-invaded pore at the outlet core face, opening into the oil-filled void space between the end of the core and the end plate of the flooding cell, is illustrated in Fig. lb. The curvature of the water-oil interface is concave toward the outlet, and the pressure on the water side of the interface is lower than on the oil side by an amount equal to a certain capillary pressure (Fig. lc). Before the water (of this particular pore) can be produced from the core, it is apparent that the pressure in the water phase must exceed that in the oil outside the core. Accordingly. when water first reaches the outlet face, it will not leave the core but will accumulate inside, and only oil will be produced. Eventually, as the water injection is continued. sufficient pressure is built up in the water to reverse the curvature of the interfaces in the outlet pores, and only then will water be produced from the core. This stage, illustrated in Fig. 2. corresponds to the conventional "water breakthrough" observed in flooding experiments. For purposes of discussion, it is convenient to distinguish between the flooding stage at which water first arrives at the outlet face of a core (Fig. 1) and the stage at which water is first produced from the core ( Fig. 2). The former will be referred to as "water arrival" and the latter water breakthrough. In oil-wet media