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By Eugene A. Stephenson

THE year 1935 is noteworthy for the superior legislative measures passed by several states. Sincere efforts have been made to establish equity between the various producing tracts in oil and gas fields. Outstanding legislative measures include the New Mexico law, known as Senate Bill No. 79, approved on Feb. 23; the Oklahoma law on April 22; the Texas law on April 30; and the Kansas law, which became effective July 1. Primarily designed to prevent waste, but more or less the direct out- growth of the current excess of potential oil and gas production, these statutes fall in the class of "Proration Laws."

Jan 1, 1935

By A. E. Seaton

In this paper it will be my endeavor to trace the development of the marine engine and its appurtenances, and the general progress that has taken place in marine engineering generally during the past fifteen years, rather with the object of attributing much of it to the successful efforts of the makers of iron and steel, thereby rendering my thanks to them for the valuable service they have contributed to my profession, than to recount what has been achieved by the skill, ability and perseverance of my colleagues in shipbuilding and engineering. The engineer has been at all times dependent on the ironmaster, and on more than one occasion his progress has been barred by the inability of the latter to overcome some obstacle to success in his manufacture. But on the other hand, it is equally true that the ironmaster has often been ahead of the engineer, and has been prepared, long beforehand, to supply that which would make a success for the marine engineer if he would avail himself of it.

Jan 1, 1891

By AIME AIME

THE following paragraphs comprise such information as the Secretary has been able to obtain concerning the members and associates whose deaths have been reported. Further particulars or corrections of errors, and biographical data concerning deceased members or associates not already noticed in this way, are solicited. [SECRETARY'S NOTE.-All of these notices have been revised, and some of then have been more or less completely prepared, by me. To those which contain more particularly the expression of my personal feeling, my initials have been appended. The labor of preparing or editing these paragraphs has been in many respects both welcome and interesting, on the one hand, and sorrowful, on the other. In going through the list, I have repeatedly felt like one who, visiting the Morgue, suddenly comes upon the pale face of a dear friend, of whose death lie was not aware ; and, even when this fact was known to me, the work of recording it has brought upon me a flood of recollections, almost preventing the discharge of that official duty. The list for 1907 seems to me to he peculiarly sad, comprising, as it does, so many sudden deaths by violence or accident, so many veterans, removed too soon, and so many young men whose early departure impoverishes the future, even more than the present. Probably, this feeling on my part is largely due to the circumstance that the increased membership of the Institute necessarily in¬volves an increase of the annual death-list. Probably, also, it is connected with the circumstance that during the first years of the history of the Institute-say from 1871 to 1880-it was joined by men of all ages, and that the death-rate is consequently now above the average which would result from the normal annual addition, principally of young men. And finally, I must admit that, as one of the original members of the Institute, and practically connected with it for nearly thirty-seven years as Acting President, President or Secretary, I am peculiarly impressed and depressed by the successive deaths of those who were my associates in the years of its early struggles and triumphs. I do not wish to inflict upon my younger colleagues the melancholy reflections of an increasingly lonesome old man. In fact, my prevailing mood concerning the Institute is not at all melancholy, but triumphant and hopeful. If I may be permitted to preach at all, I would enforce, from the texts given below, a moral which many of them declare so forcibly as to preclude the necessity of expository enforcements-namely, the duty of every one of us, old or young, to give to his brethren, as he goes along, and without waiting for some future occasion for a comprehensive and monumental contribution to technical literature, the results of his observation and experience. When I look at this list of names, my personal sorrow over many of them is drowned in my professional reflection as to each and all-How much has died with

Jan 1, 1908

By Pierre de P. E. M. Ricketts

HAVING had occasion while in Europe during the past summer to visit some of the foreign mints and assay offices connected with the same, I thought a brief description of the general process of coining employed, and such items connected with assaying as were new, might prove interesting to the Institute. The principal foreign mints are: the Royal Mint, London; and the mints in Paris, Brussels, Utrecht, Berlin, Vienna, Copenhagen, St. Petersburg, Stockholm, Madrid, Milan, Rome, and Constantinople. My time only permitted my visiting a few of the principal and largest given in the list, and for a description of the remainder I am indebted to the kindness of Mr. James M. Napier, who in company with the deputy master, and chemist of the Royal Mint, made a complete inspection of all the European Mints in 1870.

Jan 1, 1876

By Pierre de P. Ricketts

Having had occasion while in Europe during the past summer to visit some of the foreign mints and assay offices connected with the same, I thought a brief description of the general process of coining employed, and such items connected with assaying as were new, might prove interesting to the Institute. The principal foreign mints are: the Royal Mint, London; and the mints in Paris, Brussels, Utrecht, Berlin, Vienna, Copenhagen, St. Petersburg, Stockholm, Madrid, Milan, Rome, and Constantinople. My time only permitted my visiting a few of the principal and largest given in the list, and for a description of the remainder I am indebted to the kindness of Mr. James M. Napier, who in company with the deputy master, and chemist of the Royal Mint, made a complete inspection of all the European Mints in 1870.

By C. J. Beevers

Tlze influence of zirconium hydride precipitate mprphology on the fructure of Zr-H alloys tested at strain rates of 10- sec at 20° and - 196°C and at strain rates of -500 sec.-1 at 20°C has been inves-tigated. The critical stage in the embrittlement of these alloys was the fracture of the zirconium hyhide precipitates to form large interval cracks at a stress of 25,000 10 137,000 psi. In specimens con-temping up to 100 ppm H the preciptates existed as isolafed platelets in the zirconium matrix and their fracture as enhanced by low temperature (—196°C) and high strain rate (-500 set-f) loading. These resl~lts lead to the conclusion that the rate of strain hardening of the zirconium metal controls the frac-tzrm of the hydride platelets. Increased hydrogen contents of 500 to 2000 ppm resulted in an increase in the 1)volume fraction and size of precipitates and crlso led to crack propogation in the hydride at both 20 and —196C at the low strain rates (10'* sec-'). Quenching led to refinerment of hydride precipitate size and reduced the degree of embrittlement at — 196°C; this effect is attributed to the absence of fracture of the fine precipitates. The formation of zirconium hydride precipitates has been shown to be the cause of hydrogen embrittlement of zirconium.' Several investigators'-" have studied the problem in broad outline, demonstrating that impact-loading conditions, testing temperatures below room temperature, and increasing hydrogen content produce increased brittleness. For example, Muehlenkamp and schwope2 showed that the transition temperature for notched impact tests was raised from 150" to 350°C on increasing the hydrogen content from 45 to 490 ppm. The degree of embrittlement is also controlled by the morphology of the zirconium hydride precipitates. The solubility of hydrogen in zirconium decreases from 600 ppm at 550°C to 10 ppm at 20"C,~ so that the form of the zirconium hydride precipitates (ZrH2) can be modified by varying the cooling rate through the Zr-aZr + ZrH2 phase boundary.= Forscher showed that quenching a specimen containing 35 ppm H from above 315°C resulted in a reduction in area of 70 pct at -196"C, whereas slowly cooling from above 315°C resulted in a ductility of half this value. The role of the hydride precipitate in the fracture process has been examined by Young and schwartz6 and more recently by westlake.' From metallo-graphic observations on slowly cooled Zr-H alloys they have suggested that cracks are nucleated in the hydride precipitates by the interactions of twins in the zirconium metal with the hydride. The experiments reported in this paper show that crack propagation in the zirconium hydride precipitates is the critical stage in the embrittlement of Zr-H alloys. The factors influencing fracture of the hydride precipitates and crack propagation in the zirconium metal will be related to the problem of embrittlement. EXPERIMENTAL TECHNIQUES The zirconium used in these experiments was produced from an ingot of vacuum arc-melted iodide zirconium forged down to 1 in. diameter at 800' to 850°C. The 1-in.-diameter bar was surface-machined and cold-swaged to 0.375 in. diameter. After a vacuum anneal at 800°C for 1 hr the hardness was 60 to 70 Vdh. The total impurity content was approxi-

Jan 1, 1965

By AIME AIME

AT Williams College, in the quaint old New England town where people still go to the post office for their mail, an interesting institution has come into being as one of the aftermaths of the peace conference at Paris in 1919. The war taught the world many things about economics although much remains to be learned and more to be appreciated. B. M. Baruch, H. A. Garfield, president of Williams, and others who took part in the conference at Paris or in preparation for it, feeling that benefits would accrue from informal friendly discussion of the problems that lead to political differences between peoples, called together a summer conference in 1920. This has now become an annual affair and is coming to be looked upon as an important center for developing and stimulating public opinion. Membership in the Institute is by invitation and the lists change to correspond with the particular subjects taken up. Each year a number of distinguished foreign public men are invited to be the guests of the Institute and to meet men and women from various parts of the United States interested in their special subjects. Round tables, general conferences, and public lectures are the means employed to bring out discussion. The first are organized by groups, each including usually 25 to 40 people interested in a special subject and meeting three times a week for informal discussion. Teachers, writers, economists, engineers, business men, indeed men of all vocations and many shades of opinion, are brought together. Once a week each round table presents in general conference with the members of all other groups the more general conclusions reached in its own decisions. Afternoon and evening lectures are given by the foreign guests and these are open to the public. The lectures and the general conferences are reported widely in the press but the proceedings as a whole are not printed, no resolutions are passed, and no action is taken or contemplated. The whole plan is to furnish a forum for free discussion in hopes that the difficulties of various groups and peoples may be taken up sympathetically and good understanding promoted. There is no creed, doctrine or dogma to which the Institute is committed and widely different views are currently presented. The constant effort is to bring out points of view and the reasons for them rather than to build up convincing arguments favourable to a specific action

Jan 1, 1926

By C. G. Dunn, P. K. Koh

The primary recrystallization textures of 11 single crystals cold rolled 70 pct were determined. The effect of crystal orientation on recrystallization behavior was investigated also and found to be large. An exception was found to the relationship that strong components of the recrystolliza-tion texture are rotated from the cold rolled texture by 30° about <110> axes, but generally this relationship was found to hold quite well. Evidence supporting oriented nucleotion was found and discussed in terms of probable active slip systems and <110> edge dislocations. THE present paper is one of a series&apos;.&apos; on recrys-tallization phenomena in cold rolled 31/4 Si-Fe single crystals and is mainly concerned with the textures produced on recrystallizing from stable end orientations. Data for the cold rolled textures of the crystals used have been reported by Koh and Dunn." Their results showed that the sharpness of the cold rolled textures varied throughout the range of stable end orientations and that the tendency to re-crystallize was related to the sharpness of the cold rolled texture, wherein the rate of recrystallization increased and the size of recrystallization grains decreased with decreasing sharpness of the cold rolled texture. In the project under consideration the cold rolled crystals involved a range of initial orientations that, together with those studied earlier,&apos; provide information on several points. The first point is whether the recrystallization texture from a (111) [112] cold rolled texture, a stable end orientation that can be approached from different directions, correlates in any way with the initial orientation before cold rolling, or whether the recrystallization texture is entirely determined by the observable features of the cold rolled texture. The second point involves a preliminary study to see if the main components of the recrystallization textures correlate with the most probable active slip systems. The third point is to determine what effect departure from slip on one slip system has on the tendency to recrystallize. Experimental Procedure Nine specimens from a previous investigation and two additional ones from thicker stock (lot D) but of similar composition to the others were used in the present work. The latter two crystals, like the nine, were cold rolled to a reduction in thickness of 70 pct and the amount of widening was determined. Depending on their primary recrystallization behavior, the cold rolled crystals were given short or long anneals at temperatures of 980°C or higher. Table I summarizes the data on initial orientations, the textures obtained by cold rolling, and the anneals given to provide samples for the present work. Fine grained specimens were thinned to 0.002 in. thickness and placed in an integrating specimen holder. Chart recordings using a transmission X-ray method and MoKa radiation were obtained for diffraction from (110) planes. This method,&apos;,3 which gives data for all of the pole figure except a central region of 30" radius, proved sufficient to give generally five, and sometimes six, of the six possible pole concentration areas of any one component of the texture. These data, therefore, were generally adequate for a positive identification of each component present. The first texture obtained for specimen B-2 was poorly defined because of too coarse a grain structure and therefore too few crystals in each component for satisfactory X-ray reflections. The same

Jan 1, 1957

By M. W. BERNEWITZ

ALL live producers and manufacturers of metals and alloys are investigating new uses for their products. The tin and tin-plate industry is no exception. One-third of all the new tin mined and refined is consumed in making tin plate. Several billions of cans are each year made from tin plate for the preservation of nearly 200 kinds of food. There are more than 500 tin-plate mills or individual stacks in the United States, which country makes more tin plate than all other countries combined and exports large quantities. As much as 1,800,000 tons of till plate has been made in a year in this country, and 28.000 tons of tin has been used in this period for this purpose. In sonic years a third of the till is so consumed; in 1933 it was half of the supply.

Jan 1, 1935

By F. Lowell Lawrance

JOHN SMITH, citizen of the U.S.A., has become so accustomed to reading that Congress has appropriated billions of dollars to pay war costs. that he no longer is impressed by relatively small figures, such as several hundred thousand or a few million, in connection with Government departments.

Jan 1, 1944

By B. S. Crocker

Pebble grinding was used at Lake Shore Mines in 1949. A full description of experimental evidence and test plant results was published in 1952 1 and further operating details in 1954 2.&apos; In more recent years the term autogenous grinding has been coined and is now frequently seen in the technical literature. Autogenous crushing and/or grinding covers any grinding mill in which the larger pieces of ore are made to grind the fine pieces; the crushing and grinding may be either dry or wet. This discussion deals only with wet autogenous grinding, and only in the fine grinding part of the circuit, i.e., from 6 mesh to 92 pct —325 mesh. The term pebble milling could apply to fine autogenous grinding in which the pebbles are made from the ore itself, or it could also refer to grinding with pebbles, such as flint pebbles, from a source outside the mine. The first mill to use screened ore to grind the ore (1949) was Lake Shore Mines, Kirkland Lake, Ont. Pebbles were screened from the jaw crusher discharge and used in 5x16-ft tube mills which had been converted to 6 ft 8 in. by 16-ft grate discharge pebble mills. The same general practice was adopted the following year by the Wright-Har-greaves Mine in Kirkland Lake. Shortly after that the Neptune Mines in Nicaragua started correspondence with the writer concerning the possibility of using screened ore for grinding in their plant. They first ran some plant-scale tests which confirmed the Lake Shore findings, with the ultimate result that their plant was successfully converted in 1956 to an autogenous grinding plant. In 1957-1958 the writer was successful in converting the grinding plant of Renabie Mines in northern Ontario to autogenous grinding. In all these plants the existing grinding equipment was converted, usually by expanding the diameter of the shell to make the change from steel grinding to ore pebble grinding mills. In all the above plants primary grinding was done in either small rod mills or ball mills. These mills first reduced the pebble mill feed to about 6 mesh. The final grinding in the pebble mills varied from 75 pct —200 mesh to 92 pct —325 mesh. At Lake Shore three stages of pebble milling were used, with a different size pebble in each stage. In other parts of the world interest was being shown in this form of grinding, and in March 1952 the writer had some correspondence with the mill staff at Outokumpu in Finland, with regard to the pebble system used at Lake Shore. At Stockholm in 1957 the account of the crushing and grinding system at Outokumpu was presented in a paper by H. Tanner and T. Heikkinen.V his is the only ore grinding plant that does not use grate discharges on its pebble mills; trunnion discharges equipped with heavy reverse spirals retain the pebble load. The first new mill designed to use screened ore as a grinding medium was the Bicroft mill at Bancroft, Ont., which began operation in the fall of 1956. In 1957 this plant was followed by similar installations at Faraday Mines, also in the Bancroft area, and the North Rankin Nickel Mines in the North West Territories. In 1958 the Dyno Mill at Bancroft was converted, using the same type of grinding. Since all these plants, designed by Kilborn Engineering (1954) Ltd., were originally planned as pebble grinding mills, they were able to take full advantage of the latest design and technique. They are neat in appearance and very efficient and easy to operate. Effect of Ore Hardness: It is often commented that this type of autogenous grinding applies only to hard siliceous ores. Experience has shown that this is not so. In the past ten years the author has had an opportunity to test more than a dozen ores, several of which were quite soft. One of these was shale. The softer ores actually make better looking pebbles than the hard ores. These soft ores produced no particles in the intermediate size range which could not be ground by the largest pebbles in the mill charge. Slabby ores, such as shales, make a suitable pebble for the —6 mesh grinding. It is not generally recognized that for fine grinding a spherical medium is not essential or more efficient. Another frequent objection to pebble grinding is the belief held by some operators that there is too much variation in the hardness of their particular ore to make it acceptable as a source of pebble media. Experience has also shown that this is not a serious problem at all. The variation in pebble load due to changes in the ore hardness is nothing like as great as most people would expect, and the method used for feeding the ore and controlling the the load in the mills is more than sufficient to take care of daily variations in ore hardness. This point

Jan 1, 1960

By George I. Adams

PHYSICAL AND CLIMATIC DIVISIONS. PERU is divided into three regions-the coast, the sierra, or high mountainous region, and the a montana," or forest region of the Amazon basin. The Coast.-The coast is an arid region. No rain falls excepting in the extreme northern part, which borders the Gulf of Guayaquil. There is, however, a slight precipitation in the form of mist (garua), which occurs on the coast hills during the so-called winter months. The aridity of the coast is due principally to the antarctic or Humboldt ocean-current, which, being cold and having a temperature lower than that of the land, absorbs rather than produces vapors. The coast mists occur during the season when the land is relatively cold. Near the Gulf of Guayaquil the antarctic current diverges from the coast, so that in the Tumbes valley and adjacent country the conditions in the summer months are such as produce rains. In the remaining valleys of the coast, agriculture is made possible only by means of irrigation, and is accordingly very limited in extent, although rich and varied. In the northern and south-central portions of the coast, plains extend inland from the sea, while in the southern part there is a coastal plain separated from the Pacific by a range of coast hills. Between the northern and south-central plains, as well as between the south-central and southern, the foothills of the sierra descend to the seacoast. The Sierra.-The sierra embraces the high land dominated by the lofty cordilleras of the Andes. In the southern part of Peru there are two cordilleras, the western and the eastern, which enter from Chile and Bolivia respectively, and inclose between them the Titicaca Lake basin. To the north of Lake Titicaca these cordilleras unite in the knot of Vilcanota, south of Cuzco. From this knot three cordilleras, known as the western, the central, and the eastern, extend to the northward, reuniting in the

Jan 7, 1908

By William P. Prof. Blake

WHEN we consider the efforts made in Europe to promote the physical and moral well-being of the working classes, the question is suggested whether in this country, where, theoretically, every man is peculiarly the arbiter of his own destiny, we may not be too prone to expect every man to take care of himself, and neglect to make those provisions for the welfare of the employed, demanded alike by enlightened economy and humanity. In the older countries, where the disproportion between capital and labor is greater, and the working classes are more dependent, their welfare largely occupies the attention of employers. The subject is involved in the problem of the just relations of capital and labor, and we are rapidly approaching the time, if we have not already reached it, when a generous paternal interest in the welfare of the employed should be more generally manifested. It is a subject which is of special importance to mine-owners and engineers in this country, especially to those located in the coal regions. My own attention has been particularly directed to it by a visit made to the Hassard collieries, a few miles from Liege, Belgium, under the direction of M. Andrimont. This celebrated engineer has established a comfortable home for the miners near the mouth of the shaft of the mine. It has been highly successful and beneficent in its results, and may to a great degree be regarded as a, model for such undertakings. It is known as "Hotel Louise," this being the name of Madame d&apos;Andrimont, who laid the corner-stone of the building April 4th, 1871. The structure is of brick, upon three sides of a square, and

Jan 1, 1875

By William P. Blake

When we consider the efforts made in Europe to promote the physical and moral well-being of the working classes, the question is suggested whether in this country, where, theoretically, every man is peculiarly the arbiter of his own destiny, we may not be too prone to expect every man to take care of himself, and neglect to make those provisions for the welfare of the employed, demanded alike by enlightened economy and humanity. In the older countries, where the disproportion between capital and labor is greater, and the working classes are more dependent, their welfare largely occupies the attention of employers. The subject is involved in the problem of the just relations of capital and labor, and we are rapidly approaching the time, if we have not already reached it, when a generous paternal interest in the welfare of the employed should be more generally manifested. It is a subject which is of special importance to mine-owners and engineers in this country, especially to those located in the coal regions. My own attention has been particularly directed to it by a visit made to the Hassard collieries, a few miles from Liège, Belgium, under the direction of M. Andrimont. This celebrated engineer has established a comfortable home for the miners near the mouth of the shaft of the mine. It has been highly successful and beneficent in its results, and may to a great degree be regarded as a model for such undertakings. It is known as ((Hotel Louise," this being the name of Madame d&apos; Andrimont, who laid the corner-stone of the building April 4th, 1871. The structure is of brick, upon three sides of a square, and

By Edwin Higgins

SINCE the "Days of Forty-nine" California has been the premier gold producing state of the union. The greatest production was recorded in 1.852, during which year the state&apos;s placer and lode deposits yielded over 81 millions. This peak was followed by a steady decline to about 12 millions during the years 1888 to 189.3, a period marked by the cessation of gravel mining. After 1893, production increased to a new peak of over 22 million in 1915, thereafter decreasing steadily to something over 13 million in 1923. Today; California&apos;s gold production shows a decrease of 84 per cent. as compared with the output of 1852, and a decrease of 41 per cent, as compared with 1915. It is not a difficult matter to find the causes of this more recent decline. In 1916 there began an upward swing in the cost of labor, which represents approximately 60 per cent. of the cost of mining, and in the price of supplies, representing the remaining, 40 per cent. This rise continued until 1922 and since that year there has been no decided tendency either upward or downward. The increase in the cost of mining since 1916 is variously estimated at from 50 to 75 per cent.; the price of gold has remained fixed at $20.67 per oz. This condition resulted in wiping out the profits of the low-grade operations which, in recent years, have constituted California&apos;s main source of supply of gold ore. It is now predicted that there will be renewed activity in California- gold mining. What are chances for the materialization of this forecast? A boom or even a revival of gold mining must of necessity be brought about or accompanied by one or more of the following factors: 1. A decrease in the cost of mining. 2. An increase in the price of gold. 3. New capital for development. 4. The discovery of new deposits. 5. The revival of hydraulic mining.

Jan 1, 1925

By W. T. Malone, J. R. Williams, R. L. Tiner, J. M. Tinsley

Hydraulic fracturing methods for production stimulation have become a common procedure in the oil and gas industry. Fracturing treatments are performed on wells of various potentials to help increase the production rate. In addition to the desire for increased production is the need to predict what increase might be expected. This knowledge is useful in economical treatment planning to accomplish the desired production goals for the well. Theoretical production increases due to horizontal radial fractures may be calculated using equations developed from mathematical analyses and electrical models.1,2,6 It also is possible to predict theoretical production increases due to vertical fractures using curves developed from electrical3 and mathematical models.8 However, these studies assumed that the vertical fracture height and the formation height were equal, which may not be true." In addition, the final fracture height through which fluid is produced may not be equal to the created height. The development of vertical fracture proppant transport relationships has made unrealistic the assumption that propped fracture height is equal to created fracture height. Through the use of published proppant transport equations,4&apos;12 it is possible to calculate the height of a bed of propping agent deposited in a fracture of a given height. Assuming that the fluid flowing in the fracture moves through only the propped portion of that fracture (i.e., that the un-propped part of the fracture heals) it becomes essential to know how production increase varies with the ratio of propped fracture height to formation height. It should be recognized that future investigation may determine that the fracture does not heal completely and that a highly permeable channel exists over the deposited bed of proppant. The effect of this channel was not considered for the present study. The following analysis of experimental data allowed development of curves to determine theoretical production increases considering fracture height as a variable. Discussion In designing a fracturing stimulation treatment a number of variables must be considered. The size of the treatment, type of proppant used, proppant concentration, treatment fluid properties and well conditions are all factors affecting the dimensions and permeability of the fracture. Production increase due to a vertical fracture is affected by propped length, height, width and permeability of the fracture for a given set of formation conditions. Production increase may be defined as the ratio of production rate after fracturing to the production rate before fracturing at the same pressure differential, pe — pw. The producing rate in an

Jan 1, 1970

By AIME AIME

NEW place was assigned to the women for their headquarters at the annual meeting of the Auxiliary but they, as usual, occupied a large place in the activities of the annual meeting. The alcove on the Thirty-ninth Street side of the building was a busy place on Monday morning, as the members of the various sections from New York to California greeted each other. The registration was conducted under the supervision of Mrs. Wolfes, Miss Georgene Davis and Mrs. Jennings, while Mrs. Hursh, Mrs. Hyde, Mrs. Charlton Reynders, and others dispensed tickets to the various functions that had been provided for entertainment. There seemed to be the usual number registered, but when only one member of the District of Columbia Section made herself known everyone wondered why the large delegation of last year had so dwindled. The explanation appeared next day, when a number of others from that Section arrived, telling of a delightful reception on the night before, at the White House. Mrs. Hoover had honored the "Canaries"¬(the organization of Lone Girl Scout&apos; workers) the officers of the Section, and their husbands, who for once became only "so and so&apos;s husband." Luncheon was served on the fifth floor on Monday, the hostesses for that day being Mesdames C. F. Ayer, Willis Burns, G. W. Farny, H. G. Moulton, and T. T. Read. A number of sight-seeing trips had been arranged for the afternoon. The most popular proved to be an expedition to the new Riverside Church; where Dr. Fosdick is pastor. Guides were there to conduct

Jan 1, 1931

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 Stuart St. Clair

EARLY in 1936, when the American Petroleum Institute issued -J "American Petroleum Industry," which was a survey of the current position of the petroleum industry, and its future outlook, and the figures for petroleum requirements .for 1950 and 1960 were widely publicized by the several oil journals, the impression was given that the petroleum- industry must be nearing maturity and would by 1950 have passed the high&apos; point of its obligations to business progress in the United States.`&apos; Let -us look at the figures which might conduce, this thought. Referring to p. 32 of the report, the total indicated crude-oil requirements in 1940 are 1,099,000,000 bbl-; for 1950, the peak, 1,109,800,000 bbl.; for 1960 a decline to 1,071,020,000 bbl. This downward trend, then established, is probably expected to continue. And this in the face of a crude production in 1935 of 993,942,000 bbl., 38,858,000 bbl.

Jan 1, 1936

By R. J. Brison, W. C. Bleimeister

The International Salt Company has long been interested in finding an efficient process for the removal of impurities from rock salt, and particularly from the rock salt produced at the Detroit mine. Methods which have been used previously at the Detroit mine included both hand sorting and differential crushing in a Bradford breaker with rejection of the oversize. Neither of these methods was adequately effective. The development of a new process for removal of impurities from rock salt has been described in the preceding article." Basically, the process consists of exposure of crude rock salt to radiant heating which selectively heats the impure particles. Subsequently the heated particles are removed by adhesion to a heat sensitive-coating on a conveyor belt. This method was found to be effective in improving both the quality and appearance of rock salt by the rejection of the dark, impure particles. The first commercial unit employing the new thermoadhesive method of dry separation of minerals was installed at the Detroit mine of International Salt Company in Detroit, Mich. (Fig. l). This unit was first put into operation in March 1957. The purpose of the Detroit installation was 1) to serve as a pilot plant for evaluating the process on a commercial scale and 2) to produce marketable quantities of rock salt of improved quality and ap- pearance. The design of this plant was based on the results and information obtained from a 1-tph pilot plant at Battelle Memorial Institute. DESCRIPTION OF PLANT Location: The separation plant was installed underground near the crushing and screening plant, for this was the most suitable location from the standpoint of material handling. Furthermore, ample space was availabe at this location. Because the process requires a relatively constant temperature, the uniform year-around temperature of the mine (57°F) gave an added advantage to an underground operation. Feeding: The rock salt is conveyed to a surge bin, from which it is fed to the heating unit by a conveyor. The feed-rate control consists simply of an adjustable gate at the bottom of the surge bin. The plant may be fed either No. 1 grade of rock salt (0.279 to 0.375 in.) or No. 2 grade (0.375 to 0.500 in.) with a maximum input capacity of 500 tons per 15-hour day. Heating Unit: The heating unit (Fig. 2) consists of a panel of infrared lamps suspended inside a low-speed revolving screen. The radiant-heat panel, which is curved for most effective utilization of the heat, holds 240 infrared lamps of standard industrial type, each rated at 500 watts. The position of the panel is adjustable so that it can be placed centrally over and to within 6 in. of the salt bed on the screen. The entire heat panel is suspended by rollers in ¦ R. J. Brison and O. F. Tangel: Development of a Thermo-adhesive Method for Dry Separation of Minerals.

Jan 1, 1961