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By G. F. Loughlin

Nearly 55 years have elapsed since the U. S. Geological Survey was organized. During this period the mineral industries have grown from infancy or early childhood to well developed maturity, and some mining industries appear to be declining. Decline in mining is even more conspicuous in certain districts, or even states, than in any mining industry as a whole, and discoveries or developments of important new districts have been very few in recent years. Our reserves of most metals and nonmetals are adequate for many years of normal production, subject to changes in rate of exploitation that may be caused by foreign competition and by changes in technology and market conditions; but the declining production of many districts and the scarcity of important new discoveries to compensate for them is cause for some apprehension. It is likely that future production will depend to a considerable extent on deep exploration and on the thorough examination of places in and adjoining existing districts where significant outcrops are lacking and only apparently insignificant geologic features offer encouraging clues—more so than on the discovery of entirely new districts. Even the possible discovery of new districts, which have escaped the intensive search by the nontechnical prospector, must be dependent on geologic information. There is therefore no need for argument as to the value of geology to the mining industry; and the need of continuing to advance the science. The U. S. Geological Survey's past contributions to mining geology, as expressed in its official reports and other publications, are recognized by Ransome in his historical review of mining geology in the Lindgren volume.' These contributions have helped to form the basis of modern mining geology, which has grown rapidly in the last 25 years. This growth has witnessed the organization and maintenance of geologic staffs by mining companies in several districts, and their detailed work, together with the fact that nearly all of the larger mining districts have

Jan 1, 1935

By A. B. Parsons

LAST YEAR (1934) saw the completion of a ten-year program of reconstruction and modernization of the world's largest lead- smelting plant, that of the ' Broken Hill Associated Smelters Proprietary, at Port Pirie, South Australia, which has a capacity for smelting and refining 220,000 (short) tons of lead per year. It deals with the entire output of lead concentrates from the famous Broken Hill district in Australia, being owned .jointly by the three leading companies: North Broken Hill, Broken Hill South, and the Zinc Corporation. These companies, together with the Sulphide Corporation, are credited with a production of 198,000 tons of lead in 1934. When one says regarding any metallurgical plant that modernization is "completed" he should add "for the moment." Development in the art of metallurgy and in the equipment used never ceases; that which seems close to the last word today is likely to be obsolete in a few years even in a process so well standardized as smelting and refining lead. However, the reconstruction at Port Pirie has altered the procedure materially. More im-

Jan 1, 1935

By Walter F. Bradley

CLOSE to 300 members and guests were registered at the Regional Meeting of the Institute in San Francisco. Oct. 3-6, and many other mining men were present at some of the sessions, but failed to register. Headquarters were at the Palace Hotel. Technical papers for the Metals Session were sponsored by the San Francisco Section, whereas the program for the Industrial Minerals Session was arranged by the Southern California Section. Walter W. Bradley, Chairman of the San Francisco Section, opened the General and Metals Session, introducing President Buehler, who gave a hearty welcome to those present. Clyde M. Eye, of the. Benguet Consolidated Mining Co., presented the first paper, entitled "The Economic and Strategic Value of Philippine Metals to the United States." In closing, he urged. that this country retain and control the Philippines because their large

Jan 1, 1935

By James Aston

A PROPER consideration of this subject is not confined to the technical channels of production and metallurgy. It concerns an industry, and should cover economic aspects which are of material importance in any program of development. The discussion may logically be treated under three subdivisions, as follows: (1) manufacture, (2) characteristics related to quality of material; (3) adaptability and exploitation of product. MANUFACTURE OF WROUGHT IRON The manufacture of wrought iron is the most ancient art of the ferrous metal industry. The eighty years or less of existence of processes identi-fied with our modern "Age of Steel" is a relatively brief interval com-pared with the several thousand years associated with the production of wrought iron by man. From the primitive early methods of production, manufacture for many centuries followed the line of direct reduction. There were developments as experience was gained through the years; but man's needs for a strong, ductile, forgeable product were met by reducing the ore to metallic iron in a single-stage operation. Following the development several centuries ago of what has become our modern blast-furnace operation, manufacture of wrought iron was gradually transformed into a two-stage method of first producing cast iron and then refining this to the desired degree of forgeability; the fore-runner in principle of today's scheme of manufacture of steel. The product retained the essential characteristics of highly refined base metal with iron-silicate slag incorporation, which were associated with the material resulting from direct reduction methods. Cort's invention of the puddling process in 1784 is a landmark in wrought-iron manufacture. It consisted essentially in adapting a coal-fired reverberatory furnace to the refining operation; thus lifting the industry out of the slough of

Jan 1, 1935

By James Aston

A proper consideration of this subject is not confined to the technical channels of production and metallurgy. It concerns an industry, and should cover economic aspects which are of material importance in any program of development. The discussion may logically be treated under three subdivisions, as follows: (1) manufacture, (2) characteristics related to quality of material; (3) adaptability and exploitation of product. Manufacture of Wrought Iron The manufacture of wrought iron is the most ancient art of the ferrous metal industry. The eighty years or less of existence of processes identified with our modern "Age of Steel" is a relatively brief interval compared with the several thousand years associated with the production of wrought iron by man. From the primitive early methods of production, manufacture for many centuries followed the line of direct reduction. There were developments as experience was gained through the years; but man's needs for a strong, ductile, forgeable product were met by reducing the ore to metallic iron in a single-stage operation. Following the development several centuries ago of what has become our modern blast-furnace operation, manufacture of wrought iron was gradually transformed into a two-stage method of first producing cast iron and then refining this to the desired degree of forgeability; the forerunner in principle of today's scheme of manufacture of steel. The product retained the essential characteristics of highly refined base metal with iron-silicate slag incorporation, which were associated with the material resulting from direct reduction methods. Cort's invention of the puddling process in 1784 is a landmark in wrought-iron manufacture. It consisted essentially in adapting a coal-fired reverberatory furnace to the refining operation; thus lifting the industry out of the slough of

Jan 1, 1935

By G. C. McLachlan

Two papers dealing with Noranda's milling operations have already been presented. The first1 of these covered the initial metallurgical problems connected with the treatment of the ore, while the second2 described the development of the mill from a 500-ton unit in 1928 to one with a daily capacity of 3000 tons less than six years later. At the time the second paper was written the equipment whirh had been installed to bring the mill capacity up to 3000 tons was being tuned into production and for this reason, though each step had previously been tested by a large-scale pilot operation, it was thought advisable to withhold metallurgical data until any starting-up difficulties had been overcome and anticipated requirements fulfilled. These requirements called for an improvement in gold recovery without any lowering of the previous ratio of concentration, and the pages that follow deal with the methods by which this result was obtained. An idea of the character of Noranda concentrating ore will be gained from an inspection of the following mineralogical analysis of the ore treated by the mill during 1933: MineRal Content Mineral ConteNt Chalcopyrite, per cent..... 6.8 Silica and silicates, per cent............ 18.3 Pyrite, per cent........... 22.1 Gold, native and as telluride, oz. per ton 0.15 Pyrrhotite, per cent....... 51.5 Silver, probably as argentite, oz. per tou 0.35 Magnetite, per cent....... 0.5 Thesr figures, which are typical, show that over 73 per cent of the ore treated consists of pyrite and pyrrhotite. Determirnation of the proportion of unrecovered gold associated with each of these minerals was therefore of primary importance in developing a suitable method for improving gold recovery. As pyrrhotite is magnetic, this information was obtained by making magnetic sorting tests on samples of the mill tailing and screening the material thus segregated. This showed that the magnebtic material finer

Jan 1, 1935

By D. Harrington, W. J. Fene

That fatalities from mine explosions can be very much reduced from the experience of past years if not wholly eliminated was fairly well demonstrated during the fiscal year ended June 30 , 1934 , there being only 28 deaths in the United States from explosions during this period . This is by far the lowest number of fatalities from explosions in the history of coal mining in the United States insofar as records are available . Although the frequency of occurrence of explosions has not decreased greatly during the past 6 years , there has been a marked decrease in severity , indicating that our coal -mining people are taking more effective precautions to prevent the spread of explosions . Pennsylvania is a good example of what may be done in reducing both the frequency and the severity of explosions ; by the adoption of up- to - date safety measures , Pennsylvania bituminous mines now have the enviable record of only one major explosion disaster in more than 5 years , and the one major explosion which did occur cost but 7 lives although 277 persons were exposed ; their lives were saved because rock- dusting prevented the spread of the flame and violence . Many of our other mining States are making definite progress in working mines without disastrous explosions and fires ; some of these , like Alabama , West Virginia , Indiana , Wyoming, and others now operating with few , if any , explosions , have had anything but a favorable record in the past .

Jan 1, 1935

By C. W. Owings, J. J. Forbes

"Although coal-mine explosions rank third among causes of underground fatalities, they receive more wide-spread attention than any other accidents in mines because frequently many persons lose their lives in a single disaster. Each bituminous coal-mine explosion endangers the lives of approximately 100 persons--the average number employed underground in a commercial mine. A critical analysis of coal-mine explosions in a restricted district gives a cross-section of relative existing explosion hazards, of common causes of ignitions of gas and dust, and of effective prevention measures. The Safety Division of the United States Bureau of Mines is collecting data on coal-mine explosions in the various States, and this circular is one of a series analyzing the causes and recommending methods for thy prevention of similar occurrences,The data on this circular are based on records of the United States Bureau of Mines and the West Virginia Department of Mines. Unfortunately practically all of the early records were destroyed by fire in the State House at Charleston, W. Va.; the remaining records were made available to the authors by N. P. Rhinehart, chief of the Department of Mines, and his cooperation is gratefully acknowledged.The earliest available reference to coal in West Virginia is that made by John Peter Lally who in 1742 found ""a great plenty of coals"" near a river later called Coal River. In 1809, Nicholas Roosevelt found coal along the Ohio River and used it on the New Orleans, said to have been the first steamboat west of the Allegheny Mountains. In 1810, Conrad Cotts opened a mine near Wheeling and sold coal for domestic purpose in 1812, a mine was opened on the Ohio River opposite Mason City and produced 1,200 bushels of coal that year. In 1840 the total West Virginia coal production was 298,691 tons; in 1863, the production had increased to 444,468 tons, and in 1883, to 2,335,833 tons. During this period apparently most of the coal was extracted from coal outcropping on the hillsides; little danger of gas ignition existed at that time, but explosions from blown-out shots occurred frequently. On February 22, 1383 the West Virginia legislature enacted legislation providing for a mine inspector to inspect the mines of that State, to prevent mine accidents, and to insure properly ventilated mines.In a special report to the Governor on December 31, 1884 the Inspector of Mines reported:We have 5 shafts, in 4 of which there is more or less gas; and in 1 of our drift mines there was an explosion on the 27th day of March 1880, whereby 2 men were killed and a boy badly burned.Table 1 lists 287 explosions in West Virginia coal mines. Several early explosions were listed in the annual reports of the West Virginia Department of Mines as ""blown-out shots"" or ""powder explosions"". The injuries usually were described; explosives accidents have been eliminated from these and other available data, and only those in which dust or gas were involved have been included in this paper as explosions."

Sep 1, 1934

By J. J. Forbes

First - aid training is an essential part of safety programs in the mining industry , but it is only a means to an end ; first -aid training will not eliminate accidents , but unquestionably it is of considerable value in any accident prevention program . Numerous features should be incorporated in any efficient , well - developed safety plan ; in addition to first -aid training safety work , to be reasonably effective , should include the establishment and maintenance of a safety organization , safety competitions between mines or sections of mines , safety- inspection committees , accident - investigation committees , safety meetings of mine officials , safety bulletins and posters , employees ' safety publications , Holmes Safety Chapters (which provide for monthly safety meetings of all employees ) , and numerous other activities looking to safe operation of mine or plant . These features are supplementary to the fundamentals of safety-- adequate and effective supervision and discipline . Years of experience , however , have demonstrated that first - aid training is a good accident -prevention auxiliary and should be made an integral part of every company's safety program . Many safety-organization plans have failed because they have been based upon the assumption that the supervisory force should be given full authority and responsibility for achieving safety and eliminating accidents and that the workers , who are most vitally concerned , are nonessential . First -aid training causes the employees to feel that they have a personal and full participation in the safety program and is now available so readily that no individual or organization has any valid excuse for not having it . Early investigations made with a view to bettering health and safety conditions among the employees in the mineral industries demonstrated the need of prompt care of injured employees because , under the difficulties inherent in the occupation , seemingly unimportant wounds , when not treated promptly, became infected and caused permanent disability and even death . Many seriously injured persons , brought out of mines and plants by fellow workers who were ignorant of the approved methods of giving first aid or of safe means of transportation

Aug 1, 1934

By C. C. Anderson

"While conducting investigations in connection with the helium program of the Bureau of Mines, the Cryogenic Laboratory has improved an apparatus for the rapid and accurate determination of the helium content of natural gas and gaseous mixtures derived from that source. The separation of helium is effected by the use of activated coconut charcoal which, when cooled to liquid-air temperatures, absorbs the nitrogen and other constituents of the gas, leaving the helium in a. spectroscopically pure state. This absorptive property of activated charcoal was discovered- by Dewar3/ in 1875. Several years later, while conducting their original researches on helium in natural gas, Cady and McFarland employed the charcoal method for the absorption and removal of the common constituents of natural gas and constructed an efficient apparatus in which this operation could be effected.4/ Shortly after initiating the government's helium activities during the World War period, the Bureau of Mines adopted, with Minor modifications, the Cady and McFarland apparatus and method of analysis. Seibel.5./ described this modified apparatus and method of procedure as part of a publication on helium-bearing natural gas. Subsequently, the Bureau's apparatus for helium analysis has been simplified and improved to facilitate more rapid and positive operation. The apparatus and method of procedure now being used by the Bureau of Mines Cryogenic Laboratory arc described in this paper.The personnel of the Bureau of Mines Cryogenic Laboratory has improved and brought the helium apparatus described herein to its present state of perfection. The writer's contributions have been-of minor importance, and he wishes to give the various members and former members of the laboratory staff full credit for the improvements they have made. He also desires to express his appreciation for suggestions and criticisms offered during the preparation of this paper to the following members of the Petroleum and Natural Gas Division, Bureau of Mines, which now includes the Amarillo Helium Plant and Cryogenic Laboratory: H. A. Cattell, chief engineer; C. W. Seibel, supervising engineer of the Amarillo Helium Plant; W. M. Deaton, chemist-in-charge of the Cryogenic Laboratory; and H. S. Kennedy.The quantitative determination of helium in a gaseous mixture is accomplished by the removal of the other constituents from the sample, either by chemical or physical Means, leaving only the helium which can be measured directly. Chemical methods, when applied to natural gas, require the burning of the hydrocarbons in oxygen, the, absorption of the resulting carbon dioxide in a caustic solution, the removal of the excess oxygen in a suitable solution such as an alkaline pyrogallate, and the elimination of nitrogen by sparking or by combination with hot calcium or magnesium.. Such procedures are very slow and tedious compared with the physical method which employs the absorptive property of activated charcoal to effect the separation of the other constituents from the helium."

Jun 1, 1934

By Will H. Coghill, Fred D. DeVaney, R. S. Dean

Part I CONTENTS

May 1, 1934

By R. E. Heithecker

Zwolle oil field of Sabine Parish, La., is different from most oil producing areas of the State in that the oil is obtained from marl and chalk-rock formations. The thickness of the reservoir rocks averages 500 feet; but production is not continuous throughout this thickness, as the oil apparently is localized in vertical and nearly vertical solution cavities and channelways or in porous zones of limited horizontal extent. The nature of the oil accumulation has caused two outstanding peculiarities of the field: (1) About 60 percent of the tests drilled were dry holes and (2) there were many instances of well interference. Commercial production was discovered in November 1928, after 17 years of prospecting in and around the present limits of the area now developed which has a length of about 22 miles and a maximum width of 4 miles. The field had produced 10,266,896 barrels of oil to January 1, 1934. The oil ranges in gravity from 400 to 420 A.P.I. Although the field is divided into several districts which are more or less clearly defined and separated by unproved territory the term Zwolle field", as used in this report, includes the entire area from Blue Lake on the west side, through Zwolle proper, and eastward, including the Many or Eastern extension.

Jan 1, 1934

By A. Gronningsater

Introduction As is well known, the fight between the blast furnace and the reverberatory furnace in copper smelting during the second decade of the century ended with a victory for the latter, a result which must largely be attributed to the introduction of flotation methods. To my knowledge, no new blast furnace has been blown-in at any American copper smelter since the War. As the metallurgy of nickel, up to and including matte smelting, is generally considered a close parallel to that of copper, the introduction of reverberatory smelting in the big new smelter of the International Nickel Company at Copper Cliff, built in 1928-30, seemed a logical adherence to a well established trend. In view of these facts, considerable comment was made when Falconbridge Nickel Mines decided to retain the blast furnace in their smelter built about the same time, in 1929. A presentation of the reasons governing this choice should therefore be of interest. The basic principles underlying the Falconbridge practice, and the considerations guiding the successive steps in the operations, will be discussed in the following. To understand the problems involved, the character and mode of occurrence of Sudbury ore must be kept in mind. Large amounts of disseminated ore are generally present. Although the gangue usually runs only about 50 per cent Si02, the ore hoisted as a rule contains more silica than needed in the smelting operation; until recently this excess was removed entirely by hand picking (in later years supplemented by magnetic sorting methods), a difficult and not very satisfactory method, in which 'the border line between ore and waste is entirely arbitrary, and therefore too much depends on the judgment of the picker.

Jan 1, 1934

By V. C. Smith

Reliable and detailed statistical data available for Kentucky, Ohio and West Virginia are the most meager and unsatisfactory of any of the producing states. Detailed histories and statistics are available for only a few pools. The antiquity of these pools, loose nomenclature, particularly where several names are applied to the same pool or various parts of the pool or a new namsed when the pool was rediscovered, made the collection of accurat historical and statistical data almost impossible. So many of the data reported are unreliable that a breakdown by pools or even by counties, until more accurate information is available, would lead to gross errors. Rather than perpetuate inaccuracies, we have endeavored to go to original sources wherever possible, sift these and provide data that may serve as an incentive and basis for future work. The necessity for accurate information is thoroughly recognized by the operators, particularly because of the effect of recent government regulations and request? for data in connection with the preparation of the various codes a pending legislation. Producers, both major operating companies and individuals, . freely given their time and assistance in the compilation of these data. Valuable information was obtained from tax records, rate cases, statistics published by the oil and gas publications and the Bureau of Mines. So many individuals cooperated in the preparation of these data that individual credit cannot be given. Undoubtedly many errors will be found. Some of the data are open to controversy, and many have been omitted in the hope that new information of a more reliable character may become available. Other omissions are due to an inability to contact the proper individuals, many of whom are no longer connected with this industry. Pennsylvania grade crude sold in 1933 for the lowest price since 1895. Gas production could not find sufficient new markets to fill the void left by industrial stagnation. In the gas industry, where the market price is fixed by contract, uncertainty persisted because of impending legislative action affecting both taxes and utility rates. As a result of these factors and a lack of new money, drilling was restricted to a new low. The lifting of proration toward the end of the year in the Pennsylvania

Jan 1, 1934

The following have been compiled from information furnished through the courtesy of Dr. W. P. Haynes, of London, and Mr. T. V. Grigorescu of Ploesti, Rumania. Gura Ocnitzei was the most active field during the year, furnishing 40 per cent of the production and 50 per cent of the drilling activity. Extensions to the west in this field were made both by Concordia and Romana Americana. In these new extensions the bulk of the production comes from the Drader member of the Dacian, with an average depth of 1300 m.; the underlying third Meotic at 1700 m. has not been developed yet. In Gura Ocnitzei east no new drilling has been done in 1933, but here declining pressures have led to the extensive use of gas-lift and pumps. Ochiuri saw some small drilling activity, but production declined. Two good wells were brought in by Unirea and Astra at the close of the year. Boldesti continued to be developed on a general plan by the four major companies interested. Production was from the Meotic, which in this dome has been penetrated for 356 m. Reserves have been estimated at about 63,000,000 bbl. An important discovery in this area was the bringing in of Credit Minier No. 1 Harsa to the east of the main field and producing from the Meotic. This well came in during October, 1932, and is now making 1400 barrels. In the Moreni Piscuri field only routine operations have been carried on. The prolific sands are now declining rapidly. Ceptura also saw only routine operations. In the Arcesti field development of the Meotic continues. Seven new wells were brought in during the year and ten were drilling at the close of 1930. The field produced over a million barrels for the first time during 1933. In the other fields only routine operations were carried on. A considerable increase in efficiency of operations was noted during the year. The average drilling time has been reduced, coring programs have been amplified, and much care has been taken in straight hole drilling. The Schlumberger electrical coring apparatus is extensively used. Electric-driven rotaries have been introduced at Gura Ocnitzei. The Moniteur du Pétrole Rouman reports that the index cost of drilling one meter, taking 1929 as a base of 100, has been reduced to 32 in 1933.

Jan 1, 1934

By D. Harrington

During the 5-year period 1906-10 inclusive, 84 major disasters (a major disaster being one in which 5 or more lives are lost) occurred in the coal mines of the United States, or an average of 17 per year, and the total number of fatalities from coal-mine gas and dust explosions (major plus minor) for the 5 years aggregated 2,338 or 477.6 per year. The monotonous continuance of coal-mine disasters month by month aroused the people of the United States to such an extent that it was felt necessary for the Federal Government to try to do something looking to the avoidance of the admittedly excessive loss of life in our coal mines, and this was one of the deciding factors in the establishment of the United States Bureau of Mires in 1910. That results have been obtained in this particular cause of coal-mine accidents may be seen from the fact that for the year 1933 but one major explosion disaster occurred in the coal mines of then united States and the total number killed in that disaster was 7. Unquestionably the coal-mining industry through use of oaf or mining practices and aided by the various kinds of work of the Bureau of Mines looking to the prevention of mine fires and explosions is in large part responsible for this very creditable change. If the gas and dust explosion fatality rate of 1.059 per million tons of coal produced during the period 1906-10 inclusive had continued to the first of January 1934, instead of the 6,373 deaths which actually occurred due to gas and dust explosions, there would have been 13,480. Hence, during the 23 years existence of the Bureau of Mines there has apparently been a saving of about 7,102 probable deaths, or an average of more than 300 per year, from gas and dust explosions as against the number which would have occurred had the 1.059 gas and dust explosion fatality rate for the period 1906-10 continued. Thirty-nine persons were killed in all kinds of explosions (both major and minor) in the coal mines of the United States in 1933; if the 1.059 gas and dust fatality rate of the 1900-10 period had been in effect in 1933, about 400 persons world have been killed. Unquestionably, the various teachings of the U.S. Bureau of Mines looking to the avoidance of explosions and fires in mines have had a vital influence in reducing the number of explosions and fires and also in decreasing their destruction in case they occur.

Jan 1, 1934

By R. E. Heithecker

The Zwolle oil field of Sabine Parish, La., is different from most oil producing areas of the State in that the oil is obtained from marl and chalkrock formations. The thickness of the reservoir rocks averages 500 feet; but production is not continuous throughout this thickness, as the oil apparently is localized in vertical and nearly vertical solution cavities and channelways or in porous zones of limited horizontal extent. The nature of the oil accumulation has caused two outstanding peculiarities of the field: (1) About 60 percent of the tests drilled were dry holes and (2) there were many instances of well interference. Commercial production was discovered in November 1928, after 17 years of prospecting in and around the present limits of the area now developed which has a length of about 22 miles and a maximum width of 4 miles. The field had produced 10,266,896 barrels of oil to January 1, 1934. The oil ranges in gravity from 400 to 420 A.P.I.

Jan 1, 1934

By Elmer W. Pehrson

The recent establishment of an official price of 64.64 cents per ounce for silver by the President's order of December 21, 1933, has provoked discussion as to the effects of this move on the various metal-mining industries. To assist those of the mineral industry who are interested in this problem, the Bureau of Mines presents the following analysis of basic statistical data concerning; the relation of the silver price to the value of copper ores mined in the United States. The term "copper ore" as used herein includes all ores in which copper is the most abundant base metal paid for. In 1928, this class of ore contributed 98 percent of the total copper output of the United States.

Jan 1, 1934

By Hugh M. Wolfin

This Information Circular is an abstract of a manuscript which was completed in June 1933, by Mr. Hugh M. Wolflin, formerly of the U. S. Bur eau of Mines. This abstract has been prepared by Charles Will Wright for presentation at the February meeting of the American Institute of Mining and Metallurgical Engineers in New York. It has been necessary to omit many of the details and most of the cost data and tables, as well as the illustrations in the original manuscript. As the use of airplanes in mining developments is making such progress and as a publication on this subject to be of greatest value should include the most recent information, it is unfortunate that, due to a lack of printing funds, it has not been possible to publish this manuscript. The purposes of Mr. Wolflin's paper are: (1) To describe briefly what has been accomplished in some outstanding examples by the use of aircraft in the mining and petroleum industries, (2) To record costs, (3) To present available information and suggestions to assist in solving future air-transportation problems in the industries under consideration.

Jan 1, 1934

By E. D. Fox

Introduction The financial statement of the hypothetical Gold Mining Company, which forms the background of this survey, was designed for the Institute with the express abject of having it assessed in respect to Profits by the several taxing bodies representing the Federal and Provincial Governments, which comprise the Dominion of Canada. On the completion of the figures, copies were sent to the several Ministers of Mines, accompanied by a request that they be submitted to their taxing authorities and assessed accordingly. The response, while it was not general, was very favourable, and at all times we were treated with the utmost courtesy and patience, and what has been set forth in the compilation bears the authentication of the various government officials who are immediately concerned with taxation. The data itself constitutes a fairly comprehensive digest of taxation as it directly applies to gold mining profits in Canada. The Hypothetical Balance-Sheet (See Exhibit A) In the balance-sheet schedules 1 and 2 (Exhibit A), income is divided between taxable and non-taxable classifications, and here it should be noted that the division contemplates only the assessment for Dominion income tax. The same applies to the factors of exchange and depletion. Therefore, in making comparisons, it is to be borne in mind that the set-up for assessment to the Provinces, that is, Manitoba and Alberta, will stand as if the gross non-operating income is taxable, with the reservations as shown in the notes below the schedules.

Jan 1, 1934