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By R. V. Ramani, R. Bhaskar

"An airborne dust cloud is an ensemble of particles of varied size, density, shape and states of aggregation. An understanding and quantifying of the dispersion and deposition of the dust generated in mines is essential to the development of measures for reducing worker exposure to dust. In coal mining, the major portion of the dust is generated during the cutting of coal using a shearer or a continuous miner.The major phenomenon affecting ambient concentration is the deposition of dust. Particle deposition may take place due to the effect of gravitational, inertial, electrostatic, and thermal forces, and mechanisms such as Brownian and eddy diffusion and inertial impaction, The three major mechanisms of deposition in turbulent flow in mines are diffusion (Brownian and eddy), sedimentation and inertial impaction. The mechanisms determining particle deposition are size depend,From a review of the literature, there appears to be a knowledge gap in the understanding of the deposition phenomena in mine airways. In order to obtain a better understanding of the deposition of dust for various particle sizes, and to develop a set of data for evaluating predictive mathematical models for dust-flow in mines, a series of dust flow experiments was performed under controlled conditions in mine airways. It appears that the deposition data generally follow the theoretical behavior of dust based on the combined effect of diffusional and gravitational deposition. In this paper, the findings of the study on the deposition of dust in mine airways and its dependence on size, velocity and concentration are discussed. A set of deposition equations that could be used to determine the approximate deposition at various points in a mine airway are presented.The major factor affecting ambient dust concentration in mine airways is the deposition of dust. Particle deposition may take place due to the effect of gravitational, inertial, electrostatic, and thermal forces, and mechanisms such as Brownian diffusion, eddy diffusion and inertial impaction. The major mechanisms of deposition in turbulent flow in mines are diffusion (Brownian and eddy), sedimentation and inertial impaction. Inertial impaction is significant only during changes in direction, but the change in direction of flow with resultant powerful eddies may cause increased re-entrainment of the particles, thus having a compensating effect. While the literature in aerosol sciences contain several references on deposition, most studies were done in small diameter tubes for diffusional deposition (Liu and Agarwal, 1974). The deposition data from small diameter, short tube experiments may not be applicable to studying deposition in mine airways that have large areas and extend several hundred meters. Further, the change in concentration along the length of a mine airway may significantly affect the deposition, an aspect that may not be easily determined in short tubes in laboratory experiments."

Mar 1, 1992

By R. V. Ramani, R. Bhaskar

"An airborne dust cloud is an ensemble of particles of varied size, density, shape and states of aggregation. An understanding and quantifying of the dispersion and deposition of the du.st generated in mines is essential to the development of measures for reducing worker exposure to dust.In coal mining, the major portion of the dust is generated during the cutting of coal using a shearer or a continuous miner. The major phenomenon affecting ambient concentration is the deposition of dust. Panicle deposition may take place due to the effect of gravitational, inertial, electrostatic, and thermal forces, and mechanisms such as Brownian and eddy diffusion and inenial impaction. The three major mechanisms of deposition in turbulent flow in mines are diffusion (Brownian and eddy), sedimentation and inertial impaction. The mechanisms determining panicle deposition are size dependent.From a review of the literature, there appears to be a knowledge gap in the understanding of the deposition phenomena in mine airways. In order to obtain a better understanding of the deposition of dust for various particle sizes, and to develop a set of data for evaluating predictive mathematical models/or dust flow in mines, a series of dust-flow experiments was performed under controlled conditions in mine airways. It appears that the deposition data generally follow the theoretical behavior of dust based on the combined effect of diffusional and gravitational deposition. Jn this paper, the findings of the study on the deposition of dust in mine airways and its dependence on size, velocity and concentration are discussed. A set of deposition equations that could be used to determine the approximate deposition at various points in a mine airway are presented.IntroductionThe major factor affecting ambient dust concentration in mine airways is the deposition of dust. Particle deposition may take place due to the effect of gravitational, inenial, electrostatic, and thermal forces, and mechanisms such as Brownian diffusion, eddy diffusion and inertial impaction. The major mechanisms of deposition in turbulent flow in mines are diffusion (Brownian and eddy), sedimentation and inertial impaction. Inertial impaction is significant only during changes in direction, but the change in direction of flow with resultant powerful eddies may cause increased re-entrainment of the particles, thus having a compensating effect. While the literature in aerosol sciences contain several references on deposition, most studies were done in small diameter tubes for diffusional deposition (Liu and Agarwal, 1974). The deposition data from small diameter, short tube experiments may not be applicable to studying deposition in mine airways that have large areas and extend several hundred meters. Further, the change in concentration along the length of a mine airway may significantly affect the deposition an aspect that may not be easily determined in short tubes in laboratory experiments."

Mar 1, 1992

By R. Bhaskar

An airborne dust cloud is an ensemble of particles of varied size, density, shape and states of aggregation. An understanding and quantifying of the dispersion and deposition of the dust generated in mines is essential to the development of measures for reducing worker exposure to dust. In coal mining, the major portion of the dust is generated during the cutting of coal using either a shearer or a continuous miner. The major phenomenon affecting ambient concentration is the deposition of dust. Particle deposition may take place due to the effect of gravitational, inertial, electrostatic, and thermal forces, and mechanisms such as Brownian and eddy diffusion, and inertial impaction. The three major mechanisms of deposition in turbulent flow in mines are diffusion (Brownian and eddy), sedimentation and inertial impaction. The mechanisms determining particle deposition are size dependent.

Jan 1, 1990

By R. V. Ramani, R. Bhaskar

An airborne dust cloud is an ensemble of particles of varied size, density, shape and states of aggregation. An understanding and quantifying of the dispersion and deposition of the dust generated in mines is essential to the development of measures for reducing worker exposure to dust. In coal mining, the major portion of the dust is generated during the cutting of coal using a shearer or a continuous miner. The major phenomenon affecting ambient concentration is the deposition of dust. Particle deposition may take place due to the effect of gravitational, inertial, electrostatic, and thermal forces, and mechanisms such as Brownian and eddy diffusion and inertial impaction. The three major mechanisms of deposition in turbulent flow in mines are diffusion (Brownian and eddy), sedimentation and inertial impaction. The mechanisms determining particle deposition are size dependent. From a review of the literature, there appears to be a knowledge gap in the understanding of the deposition phenomena in mine airways. In order to obtain a better understanding of the deposition of dust for various particle sizes, and to develop a set of data for evaluating predictive mathematical models for dust-flow in mines, a series of dust flow experiments was performed under controlled conditions in mine airways. It appears that the deposition data generally follow the theoretical behavior of dust based on the combined effect of diffusional and gravitational deposition. In this paper, the findings of the study on the deposition of dust in mine airways and its dependence on size, velocity and concentration are discussed. A set of deposition equations that could be used to determine the approximate deposition at various points in a mine airway are presented.

Jan 1, 1992

Coal washery wastes comprise tailings, finer than 0.5 to 0.1 mm depending on the sophistication of the washery, and coarse reject, typically finer than 50 mm. Subaerial disposal of coal tailings slurry at about 30 per cent solids by mass results in the formation of a delta with an average slope of about 1 in 100, representing one extreme. The ravelling of coarse reject on loose-dumping, results in an angle of repose slope with an angle of about 37o (1 in 1.3), representing the other extreme. The pumped co-disposal of coal tailings and coarse reject results in the formation of an upper delta with an average slope of about to one in ten, between the two extremes. The depositional behaviour of these three waste streams is discussed and compared in this paper. The important depositional and material parameters, and a theoretical description of the processes involved, are also presented. Comparisons are made between the depositional behaviour of the various coal washery waste streams, and natural depositional systems, such as rivers, alluvial fans, and scree slopes.

Jan 1, 1998

By D J Williams

Coal washery wastes comprise tailings, finer than 0.5 to 0.1 inn depending on the sophistication of the washery, and coarse reject, typically finer than 50 mm. Subaerial disposal of coal tailings slurry at about 30 per cent solids by mass results in the formation of a delta with an average slope of about 1 in 100, representing one extreme. The ravelling of coarse reject on loose-dumping, results in an angle of repose slope with an angle of about 37" (1 in 1.3), representing the other extreme. The pumped co-disposal of coal tailings and coarse reject results in the formation of an upper delta with an average slope of about to one in ten, between the two extremes. The depositional behaviour of these three waste streams is discussed and compared in this paper. The important depositional and material parameters, and a theoretical description of the processes involved, are also presented. Comparisons are made between the depositional behaviour of the various coal washery waste streams, and natural depositional systems, such as rivers, alluvial fans, and scree slopes.

Jan 1, 1998

By J. A. Kinnaird, B. J. Youlton, K. L. Youlton

Methods for treating and processing refractory gold ores are well established. However, what is less well understood is how the formation of the gold-bearing deposits affects gold processing and extraction. In order to evaluate the effect of ore genesis on gold extraction a number of South African gold deposits were studied. These included complex Pilgrim’s Rest samples as well as refractory Fairview, Barbrook, and Consolidated Murchison samples. We found the refractory nature of gold ores is controlled by a limited number of well-understood mineralogical factors. Solid solution gold is linked to low temperature and pressure conditions in fine-grained sedimentary lithologies, while reactive pyrrhotite can form from hydrothermal fluids associated with mafic magmatic rocks. These formational controls can be used to identify and avoid complex deposits at a desktop study phase, or address and reduce complications further along the pipeline using early mineralogical studies.

Jun 1, 2021

By H. Kim

"IntroductionThe Hat Creek coal field contains low-grade coal deposits which are the thickest in the world. The diamond drilling and geophysical surveys conducted by B.C. Hydro over the last six years have indicated in excess of 2 billion tonnes of sub-bituminous to lignitic coal. The coal field is in the Interior Plateau Dry Belt, about 240 km northeast of Vancouver, and contains two explored, nearsurface coal deposits amenable to surface mining (Fig. I). The No. I deposit contains approximately 740 million tonnes of coal at 17.71 MJ / kg, or 7,600 Btu/lb, at 34.82% ash and 24% moisture. The No. 2 deposit to the south contains appreciably more coal resources at somewhat lower grade, but it has not been explored so extensively because of its higher stripping ratio. Therefore most of the exploration activities to date have been directed toward the development of the No. I deposit. The No . I coal deposit has been selected as the source of fuel for a proposed thermal powerplant to be built about 5 km east of the deposit. The purpose of this paper is to summarize the data obtained from the diamond drilling and the geophysical logging in the No. I deposit between 1974 and 1979. An attempt is made to explain the depositional environment of the Hat Creek coal measures. Because the understanding of the depositional environment in.a particular basin is essentially an evaluation of all the geologic properties of the area, the available geological information in the No. I deposit has been compiled on the basis of consistent criteria. This includes data on the lithology of the coal measures, thickness and areal distribution of the elastic sediments, and on the changes in the megascopic stratigraphic profile based on geophysical correlation. The palynopetrographic relationship and detailed sedimentological aspects are not examined in this paper. Such studies should provide important information relating the causal vegetal and chemical responses of the coals to -environmental changes. Extensive deposition of surficial materials during de-glaciation left most of the area of the Upper Hat Creek Valley devoid of bedrock exposures. Structural and stratigraphic features are hidden beneath glacial deposits and/or post-Eocene volcanics. As a result, the geological interpretation of the Hat Creek coal basin has been based primarily on drilling and geophysical data. Because of this, any explanation of the depositional environment details is tentative until the deposits are stripped for development."

Jan 1, 1985

By Draper J. J, Jell J. S

The Burdekin Basin in the Townsville hinterland is an intracratonic extensional basin which contains up to 4500 m of marine and continental siliciclastics and carbonates. The basin sequence is recognised as having accumulated during five major episodes of deposition. Facies analyses of these show that each consists of one or more transgressive or regressive phases. Each episode led to the accumulation of thick sequences in several half-grabens in a transtensional back-arc setting. The depositional episodes can be recognised in comparable sequences in the Broken River Province to the west and Drummond Basin to the south.An Early Devonian episode resulted in the deposi-tion of dominantly marine facies, currently mapped as Fanning River Group, in the northern part of the Burdekin Basin. Two transgressive phases are recorded there, firstly in the Pragian, then later in the late Emsian to early Eifelian. A Middle Devonian episode is represented by dominantly marine facies of the Fanning River Group, representing the peak of a widespread late Eifelian to Givetian transgressive phase. A Late Devonian episode is characterised by continental facies of the Dotswood Group. Deposition occurred during a major regressive phase in response to regional uplift of surrounding areas, and the onset of acid-intermediate volcanism to the south. A Late Devonian to Early Carboniferous episode followed, which was a period of alternating marine transgressions and non-marine regressions that resulted in the deposition of the Keelbottom Group. A final Early Carboniferous episode, marked by the deposition of calc-alkaline volcanics and non-marine faciesòof the Glenrock Group, was a direct outcome of Early Carboniferous subduction further to the east. Compression of the basin followed in the Late Carboniferous, resulting in folding and reactivation of basement faults.

Jan 1, 1990

By Hochwimmer B, Baxter JL

Heavy minerals are mined from two fossil strandlines on the southern Swan Coastal Plain. The Capel shoreline, 7 km inland, and the Yoganup shoreline, 15 km inland are arcuate, northwest-facing, and remote from the modern coast. Based on foraminiferal and molluscan assemblages, the shorelines are probably of Pliocene age. The Yoganup shoreline is adjacent to the Whicher Scarp, which is cut into the Leederville Formation (Lower Cretaceous) at the southern boundary of the Swan Coastal Plain. Stratigraphic relations and detailed sedimentology have been studied from temporary exposures in the Yoganup Extended and Yoganup North mines, within a strandline complex at 27 m and 18-33 m above sea level respectively. Heavy minerals were deposited in thin, shallowing-upward sequences along a wave-dominated clastic shoreline cut into pre-Cainozoic sediments. Lithofacies units deposited in eolian, foreshore, shoreface and lagoonal environments are the most significant sites of heavy mineral accumulation. The data collected provide a basis for further exploration.

Jan 1, 1986

By Bernard E. Weichman

The oil shales in the Piceance Creek Basin of northwest Colorado occur in the Parachute Creek member of the Green River formation. The oil shales were deposited in a unique environment of deposition which caused the mineral nahcolite (NaHC03) to be precipitated within the oil shales. Post-depositional tectonics resulted in extensive fracturing of the Middle Zone of the Parachute Creek member, and to a lesser degree portions of the Lower Zone, which allowed percolating ground waters to dissolve the nahcolite in the fractured portion of the oil shale beds which is characterized by broken porous oil shale, certain beds of which have collapsed into rubble and debris. The extent and porosity of the Leach Zone aquifer is dependent upon the percentage of kerogen and nahcolite originally deposited in the oil shale. Any oil shale development program in the Piceance Creek Basin of northwest Colorado will need to be preceeded by an extensive study of the Leach Zone in order to determine the effects on a mining program.

Jan 1, 1973

By Bernard E. Weichman

The oil shales of the Green River formation were deposited in an inland lake which contained abundant plant and animal life. A high percentage of sodium bicarbonate existed in the lower water layers. Digestion of the kerogen-rich mud accumulating on the lake floor lowered the pH of the interstitial waters and precipitated the sodium minerals dawsonite and nahcolite in the kerogen-rich mud. After about five million years of existence, uplift of land areas around the lake caused an influx of clastic sediments which filled up the lake. Continued tectionics gently folded the basin and caused fracturing of the kerogen-lean oil shale. Nahcolite existing in the fractured lean oil shale was dissolved by subsurface waters leaving a tremendous aquifer in a portion of the oil shale. The extent and porosity of the "Leached zone" aquifer is dependent upon the percent of kerogen and nahcolite originally deposited in the oil shale.

Jan 1, 1975

By John C. Ferm

The role of geology in coal exploration, mine planning and mine development has, in the past, been relatively small. The primary reason for this lies in. the simplicity of geologic concepts that were necessary to bring these operations about. These concepts can be briefly stated as follows: 1) coal occurs in the beds or layers and is overlain and underlain by shales, sandstone or limestone in varying porportions, 2) each coal bed has been given a name and certain quality characteristics can often be associated with a named bed and 3) coal beds (and their adjoining rocks) are often folded into broad anticlines or synclines and, in some places, displaced or faulted. In actual practice, however, these simple principles have been found wanting. Thickening, thinning, pinch outs or changes in coal quality occurred but the occurrence was apparently unpredictable and the only real solution to such problems seemed to be practice and experience. This combined with ingeneous engineering solutions have provided answers to most questions. Perhaps a more fundamental reason that geology could offer so little input to coal mining is that the thickest, most persistant and best quality coal seams followed the above stated rules fairly well. In many areas, however, such seams are now nearing exhaustion and the increased demand for clean, non-polluting, safe energy is quickly bringing a need for techniques of exploration and mining procedures that will make development of formerly unminable seams a profitable venture. For the past 20 years some considerable body of knowledge has been added to the framework of the geology of sedimentary rocks and it is the purpose of this paper to present some of these newer ideas that will be useful in solving some of the present problems of coal exploration and development.

Jan 1, 1976

The Proterozoic Pb-Zn deposits of the Gulf of Carpentaria, Australia, include HYC (McArthur River), Mt. Isa, Dugald River, Lady Loretta and Hilton. Two seamingly incom- patible depositional models have been proposed to account for their origin. Finlow-Bates (1980), Large (1983) and Russell(1983) classify these-deposits as sediment-hosted submarine exhalative deposits. This class includes Rammelsberg, Meggen, Silvermines, Sullivan and others. In contrast, a lacus- trine, shallow-water origin has been advocated by Williams and Logan (1981), Logan and Williams (1984), Muir (1983) and Eugster (1985). The discrepancies between these two models can be removed by creating a separate class, that of continental sediment-hosted exhalative deposits.. HYC., Mt. Isa and Dugald belong to this class and their sediments were deposited in shallow, alkaline lakes. Metal- rich, hot, Na-Ca-Cl brines entered the basins along boundary faults and interacted with pore fluids and sediments, depositing-Cu-Zn-Pb sul- fides. Similar brines entered the Lady Loretta basin after marine flooding, depositing sulfi- des and barite, placing Lady Loretta into the class of marine Sedex deposits.

Jan 1, 1987

By Joseph L. Gillson

BRAZIL has had an industry based on ocean beach deposits of heavy minerals containing monazite, zircon, rutile, and ilmenite for well over 40 years, but except at the very earliest period, prior to 1906, and again during World War 11, has this industry been at all comparable in size with similar operations in other countries. Limiting factors have been neither a lack of reserves nor lack of markets (except for zircon). Although poor local transportation and shipping facilities have handicapped the development in Brazil, these conditions were perhaps equally bad (when mining operations started) in the Indian State of Travancore, and in New South Wales and Queensland, Australia, in which states the principal production of beach deposits of heavy minerals has occurred. The outstanding restraints on the Brazilian industry have been the lower quality of the Brazilian minerals, the relative small size of individual deposits that were known until recently, the lack of interest of Brazilian investors in mining ventures, and the unfavorable climate for investment of foreign capital under Brazilian mining law. The lower quality of the minerals is indicated by the fact that the Brazilian monazite carries only 5 to 6 pct ThO2,*, and the ilmenite 56 1/2 pct TiO2, whiteness of the Australian zircon. An inadequate market for the abundant zircon that will be avail- able in any operation in Brazil is certainly a heavy restraint, since otherwise it could be an important byproduct. The oxide of zirconia, baddeleyite, that has come from Brazil is from other sources. 1 Since the Brazilian beach sands carry only a little rutile, that mineral has not been available as a valuable byproduct to help finance the operations.

Jan 6, 1950

By Frederick L. Knouse

THE south border of Espirito Santo begins about 400 km. north of Rio de Janeiro and extends along the Atlantic Coast northward some 325 km. and inland 100 to 150 km. The area under consideration, where quartz crystal of strategic grades has been mined, extends from 19° to 21° and 30" south latitude; and from 40° to 41° and 30" west longitude. This includes the central part of Espirito Santo, chiefly south of the Rio Doce from the Atlantic ocean, and west across the border into Minas Gerais near the town of Aimores, in the municipalities of Aimores, Minas Gerais; Baixo Guandu, Santa Teresa, Santa Leopoldina, Colatina, Joao Neiva, Fundao and Domingo Martines, Espirito Santo (Fig. 1). During 1943 and the first half of 1944, this region accounted for approximately 3 to 5 per cent of the quartz crystal produced in Brazil. Shipments of crystal have been made chiefly by rail to Rio de Janeiro. This region is serviced by the E. F. Minas-Vitoria and E. F. Leopoldina to Rio de Janeiro through Vitoria; and by the E. F. Minas-Vitoria and E. F. Central do Brasil through Bello Horizonte, Minas Gerais to Rio de Janeiro. The major deposits are accessible from the railheads by dirt roads, some being 5 to 30 km. off the road, reached by trail. In 1943 and the first half of 1944, the bulk of the production was from inter mountain marshes and adjoining hillside alluvial placer deposits in the zone surrounding the town of Santa Teresa. Most of these deposits were formed from the erosion of pegmatites, quartz veins and pockets in the gneiss, with minor quantities produced from miarolitic cavity fillings in the granitic rock. EARLY OPERATIONS Mining of quartz crystal in this region began in 1928, and has been stimulated by the market demand for military uses. Before 1936 little attention was given to it, either in Espirito Santo or eastern Minas Gerais. From 1936 to 1941 the Japanese sent agents to various points of production or potential production to acquire quartz through purchase. They bought crystal as small as 10 grams. Since 1941 only the United States and Great Britain have received quartz from Brazil. The United States purchases crystals of loo grams and larger for strategic purposes. The first known discoveries were made either in the municipalities of Aimores, Minas Gerais, or in Baixo Guandu, or Domingos Martines, Espirito Santo. Marketable quartz crystal was first found either in the massive quartz replacement veins of the Victor Hugo mine in the municipality of Domingo Martines, or in the large cores of quartz in the pegmatites near Baixo Guandu, extending into Minas Gerais. PRODUCTION The production of quartz in Espirito Santo from 1936 through 1941 as recorded

Jan 1, 1946

By Douglas Valentim Fernandes Neves

O aço inoxidável austenítico 316 (316 SS) é um dos materiais metálicos mais utilizados em aplicações médicas devido à combinação de propriedades mecânicas e do baixo custo. No entanto, desgaste e corrosão estimulam mudanças permanentes no tecido humano que podem levar à perda do implante. O desenvolvimento de recobrimentos biocompatíveis e estáveis, que apresentem propriedades mecânicas adequadas, e que não sofram ruptura ou delaminação durante o uso, é uma solução muito promissora para melhorar o desempenho do 316 SS como biomaterial para implantes. Neste trabalho, uma liga intermetálica FeAlCr, que tem apresentado propriedades adequadas para a aplicação como biomaterial, foi utilizada como recobrimento sobre um aço inoxidável 316 de grau médico. O revestimento foi obtido utilizando-se a técnica magnetron sputtering por corrente contínua. Os parâmetros de deposição, como distância substrato - alvo e pressão de gás argônio foram mantidos fixos em 50 mm e 5 mTorr, respectivamente. As amostras foram preparadas com os seguintes valores de potência de sputtering: 50 W, 75W, 100 W e 150 W. A adesão dos filmes foi analisada por teste de scratch, enquanto a espessura e a taxa de deposição foram analisadas por perfilometria ótica. As características estruturais foram analisadas por microscopia eletrônica de varredura com EDS.

Aug 8, 2018

By Y. M. Jiang

A users friendly PC Computer Program has been developed to implement a systematic design of the powered support. The required input data are: (1) thickness, RQD, and compressive strength of the immediate roof; (2) mining height; and (3) type, thickness, and tensile strength of the main roof. Several important parameters for support selection under a given geological condition are generated through the implementation of the program, including type of support most favorable for the geologic condition, minimum inclination angle of the legs with respect to the horizontal axis, suitable setting load ratio of the front to rear leg for the 4-leg supports, optimum setting load, and support capacity.

Jan 1, 1989

By Philip Henry

THERE is a difference of opinion among engineers on the subject of depreciation in general, and still more on its application to any given case. The committee which was appointed by the American Society of Civil Engineers to make a report on Valuation of Public Utilities, states "There is no subject connected with valuation about which there are more diverse views than those relating to depreciation;" and in the discussion which took place upon the presentation of the preliminary report of this committee in January, 1914, that part of the report dealing with depreciation called forth more discussion than any other. From this discussion it was evident that the word " depreciation" was not always used in the same sense, so it is quite important that some definition be adopted. As this paper relates to the proper method of treating depreciation by corporations or individuals operating oil properties, both of which must make a return of annual net income to the government in connection with the income tax, it will be in order to adopt the definition of the Internal Revenue Bureau. Under date of Mar. 29, 1910, the Commissioner of Internal Revenue of the Treasury Department stated "Deduction on account of depreciation of property must be based on lifetime of property, its cost, value and use." Again, on Form 1035, "Return of Annual Net Income" for miscellaneous corporations (Section 2, Act of Congress approved Oct. 3, 1913), a deduction from gross income is allowed for "Total amount of depreciation for the year." This item is defined more particularly as follows: "The amount claimed under Item No. 5 (b) for depreciation should be such an amount as measures the loss which the corporation actually sustains during the year in the value of buildings, machinery, and such other property as is subject to depreciation on account of wear and tear, exhaustion, or obsolescence. The amount taken credit for on this account in order to be allowable should be so entered on the books as to constitute a liability against the assets of the corporation. The amount claimed under this item should not cover losses in the value of stocks and bonds. Decrease in the book value of securities owned, so far as such decrease represents a decline in the actual value of such securities, should be deducted under item 5 (a) of the return.

Jan 1, 1915

Discussion of the paper of PHILIP W. HENRY, presented at the New York meeting, February, 1915, and printed in Bulletin No. 97, January, 1915, pp. 23 to 30. C. ,E. GRUNSKY, JR., San Francisco, Cal. (communication to the Secret ary*).-The difference of opinion of engineers on the subject of depreciation is justified, to some, extent, by the many viewpoints from which such a subject can be considered when applied to properties of widely differing physical characteristics. Mr. Henry takes up the subject of depreciation as applied alone to oil properties, and in doing so makes a clear distinction between amortization and the repair or renewal requirement. After carefully reading the paper the purpose of its author in suggesting a "depreciation" reserve or fund to keep the property at a constant value does not seem clear. As shown by Mr. Henry, the depreciation element as compared with the operating expense per gallon of oil is very large because of the comparatively short life of the oil properties, and it is also evident that such a "depreciation" fund would in a short time contain a very large amount of money. It seems desirable and permissible in income-tax matters to take into account the depreciation of property and to separate from the income such money as is necessary to amortize the invested capital to an extent warranted by the depreciation. However, it does not seem either necessary or desirable to create a large fund which will in time approximate the entire invested capital and which may he invested by the directors, as Mr. Henry suggests, "in the property itself or in outside securities." This method seems cumberome and liable to offer in the reinvestment of such a fund temptations to a directorate that might show more devotion to its own interests than that of the stockholders. A reserve fund is very frequently desirable in mining and oil operations, but to keep up a fund of this magnitude or to reinvest it in outside securities does not seem desirable from a stockholders' standpoint. The. money withdrawn from the receipts to be placed in the depreciation fund (not including replacements and the drilling of new wells necessary to keep up the productiveness) should he returned to the stockholders of the company, not as dividends, but as an amortization of the invested capital.

Jan 5, 1915