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By Eduardo J. Chibas

Location.—The principal manganese-deposits of the Department of Panama, Republic of Colombia, are located almost clue south of Viento Frio, a native village bordering on the Caribbean Sea, and about 45 miles northeast of Colon (Aspinwall). The mining-claims are the Viento Frio, the Carrano, the Nispero, and the Soledad. Each property is to the south of the preceding one in the order mentioned. The first one is about one mile from the coast, and the most southerly boundary of the Soledad is about five miles in a straight line from the same coast-line. I shall confine my remarks to the four properties mentioned and to La Guaca, west of the Carrano, because these are the only ones where mining has so far been done to more or less extent. Manganese has also been found, however, in the neighborhood of these deposits, and a large area adjoining them has been divided into sections and " denounced " as mining-claims. The relative position of the manganese-deposits and Nombre de Dios, the present terminal of the railroad and shipping-port, as well as Viento Frio and the adjacent coast, can

Jan 1, 1898

By F. M. Doyle-Garner, A. J. Monhemius

Hydrolytic stripping is the process whereby metal ions in a loaded solvent extractant are hydrolyzed by water, typically at 130°C to 200°C (265°F to 392°F). Equilibrium hydrolytic stripping tests were done on Versatic 10 solutions containing various metals, singly and in mixtures. Single solutions of Fe, Ni, Cu, Mg, and Mn precipitated [a]Fe2O3 Ni(OH)2 Cu2O + CuO, Mg(OH)2 and [?]Mn203 respectively, during hydrolytic stripping. Several mixtures containing iron precipitated magnetic spinel ferrites, MFe204. No other combinations formed mixed oxides. It is proposed that the mechanisms for hydrolysis and precipitation of iron in loaded Versatic solutions are similar to those for iron hydrolysis in aqueous solutions. Magnetic interactions between mixed carboxylate complexes are thought to be responsible for the homogenous nucleation of magnetic mixed oxides in preference to single oxides.

Jan 1, 1986

By H. R. Peiffer

Hardening of soft metals can be accomplished by dispersing finely divided hard particles in them. The dispersing of finely divided alumina in silver in the presence of oxygen yields a high strength material which is unusual in that its mechanical properties above the melting point of the continuous Ag-O alloy matrix are similar to other solids. The tensile strength is studied for two of these alloys, one of which contains 15 pct by weight alumina and the other 20 pct by weight alumina. The average fracture strengths above 960°C of these alloys were found to be 0.4 x106 dynes per sq cm and 3.8x106 dynes per sq cm respectively. The strengths appenred to be independent of temperature above 960° C. The creep behavior of the 20 pct alumina material was studied above 960°C. The initial creep rate, 6 , of this material can be represented by where s is the applied stress and E the activation energy for the process. This energy is of the order of 1.7 to 2.1 ev. HARDENING of soft metals by the addition of finely divided, hard particles has resulted in the production of materials with excellent creep resistance and with inhibited recrystallization.' It has been demonstrated that such composites have useful strength up to temperatures very near the melting point of the soft metals, but one might expect that the strengthening by the dispersed particles ceases to be of importance above the melting point of the softer phase. This, however, is not so.2 In this paper the strengthening of a liquid Ag-O solution by the presence of dispersed alumina is discussed and experimental data concerning the mechanical properties of such a material at temperatures above 960°C presented. EXPERIMENTAL PROCEDURE Specimens were prepared using powder metallurgical techniques. Finely divided silver oxide was mixed in the appropriate proportions with "Linde B" alumina. For these experiments the specimens contained 15 or 20 wt pct alumina in pure silver.* These alloys were used in these experiments since they were the ones that could be handled readily enough to yield experimental data. Silver oxide was used in preference to silver because it is readily available in a very finely divided form and because the presence of excess oxygen in the silver is important to the properties2 of the material. The powders were mixed wet, using alcohol as the medium, in an ordinary food blender until a uniform mixture was obtained. They were then dried and heated to reduce the silver oxide to silver. Only a fraction of the finely divided silver remains unoxi-dized upon removal from the oven since the finest particles of silver oxidize immediately upon contact with air. The remaining fine silver served as a binder during pressing. The mixture was then pressed at 20 tons per sq in. into shoulder-grip (reduced section 1/4 in. by l/4 in. by 1 1/4 in.) and rectangular bar specimens (l/4 in. by 1/4 in. by 2 in.). The green specimens were heated very rapidly in a globar furnace to 1000°C, held at temperature untic they had reached theoretical density and then furnace cooled. The strength of the two compositions at temperatures above 960 °C was determined by pulling shoulder grip specimens inside a furnace mounted on a tensile machine. Specimens were gripped by means of wires wrapped around the shoulders of the specimen. Temperatures were measured by means of a chro-mel-alumel thermo-couple placed in the vicinity of the specimen. Control of temperature (within ±°15C) was accomplished by means of a Weston Recorder-Controller. Before loading, specimens were held at temperature for approximately 15 min in order to insure uniform specimen temperature. The low loads were measured by a special load cell designed by Baldwin Lima Hamilton. All testing was performed on a FGT testing machine of the same com-pany. Creep studies were performed in bending utilizing rectangular specimens of the 20 pct alumina alloy. Specimens supported at both ends by knife edges of inconel were placed in a globar furnace, heated quickly to temperature, and the deflection of the beam measured optically as a function of time. The weight and size of the specimen were predetermined and the maximum stress on the beam calculated from

Jan 1, 1962

By Alan Kissock

MOLYBDENUM is thought of as one of the rarer elements, for though it occurs in almost every country of the world it is seldom found in commercial quantities. In this country, however, there is one deposit which makes the term "rare" a misnomer. There are two commercially mined molybdenum minerals: molybdenite, the sulfide, and wulfenite, a lead molybdate. Of these two only the former is of any con- sequence but wulfenite is of mineralogical interest. It is frequently associated with oxidized lead ores and particularly in arid sections. Deposits, however, are usually quite superficial. It is highly oxidized and yet it does not appear to be an alteration product for it apparently disappears below water level and I know of no case where primary molybdenite, or in fact any molybdenum whatever has been identified below these surface wulfenite occurrences. The genesis of wulfenite would make an !- interesting study.

Jan 1, 1933

By R. L. Minckler

PETROLEUM industry forecasts are constantly made and revised but are not in the nature of predictions. Particularly in the field of demand, many of the factors are far beyond control by the producing industry. Supply reacts on demand and demand reacts on supply. Competent economists in the oil business forecasted a year ago, on the basis of experience, that demand would now be at a much lower level than it is. This increased demand increased the price of crude oil and products, and in turn those increased prices have brought forth increased supply. A reduction in demand would lead to a reduction in supply. Shortages are now world-wide, and costs of secondary importance, so if there were extra supplies in California they would be moved into what are termed "unnatural markets." For example, Argentina is in the market today for California gasoline; that is an unnatural market because of the greater transportation distances from California to Argentina than from normal sources.

Jan 1, 1947

By Charles Catlett

An examination of the census reports' for 1880, which contain a large number of complete analyses of typical American iron-ores, indicates that the existence of barium sulphate in intimate association with iron-ore is rather unusual. Of 94 analyses reported there, but four show any barium sulphate, and the maximum content amounts to 3.04 per cent. The note of the occurrence of considerable quantities of barite in connection with certain iron-ores found in the Pinar del Rio Province of Cuba may be of interest. These deposits are found near the little village of Francisco, about 25 miles west of the city of Pinar del Rio on the Western Railroad of Havana. The principal ridges are anticlines, and consist of very thick deposits of sandy shales and slates containing a large number of little veins of white quartz, which, by the gradual disintegration of the mass of the material, is left covering the surface. This quartz occasionally shows sulphide, but is generally barren of any such indication. At times lenticular masses of a more or less pure limestone mere observed in these slates. The shales, which are of light color, are occasionally talcose. The formation would tentatively be classed as the Lower Cambrian, arid the heavy ridges of comparatively horizontal limestone found in the anticlinal valleys as the Upper Cambrian. Along the crest of these slaty ridges deposits of iron-ore are found which are apparently in place, and were probably formed by replacement of masses of limestone similar to those noted elsewhere. The ready disintegration of the slates, arid the

Jan 1, 1908

C. A. ROSE, New York, N. Y. (written discussion *).-Without doubt the excellent results obtained at Ajo will cause surprise among metallurgists; 75 per cent. average capacity and 80 per cent. extraction during the first year of operation of a plant using a new metallurgical process are figures that speak for themselves. It is obvious that the most troublesome feature of the process is the fouling of solutions. The effects of this are most evident in the electrolytic tank house; but apparently the solutions are so heavily loaded with salts that their dissolving power is also impaired. This is indicated by the fact that copper comes into solution during washing after the leaching of the ore is completed, as shown by the decreasing ratio of acid to copper in the various washes tabulated in Table 4, and also by the fact that 4.9 per cent. of the total copper in the ore remains in the tailings in a soluble form. Even though the extraction in leaching and the ampere efficiency in electrolysis would be benefited by keeping the salts in solution at a lower concentration, it is doubtful whether it would pay to decrease these salts by discarding more electrolyte without other changes in the, process, since this would increase the amount of cement copper produced, which is already very large. If, however, it would not disturb the process otherwise, this object could be accomplished by increasing the range of electrolysis, so that solution going to the tank house would contain, say, 4 per cent. copper and 1 per cent. acid, and the solution returned to the leaching plant 1 1/2 per cent. copper and 4.8 per cent. acid, and by increasing the volume of solution to be discarded, this to be taken from the electrolyzed solution returned to the leaching plant. By this arrangement, more salts will be removed from the system per ton of cement copper produced; and if sufficient solution is discarded to keep the iron content down to 1 1/2 per cent. it would he feasible to recover the copper from

Jan 4, 1919

By T. G. Madgwick, W. Calder

Production of petroleum increased again during 1929, thus maintaining the steady growth inaugurated by the bringing in of Royalite No. 4 in Turner Valley, Alberta, towards the end of 1924, prior to which a decline over a number of years had been experienced. The growth has been confined to the Province of Alberta, the older production in New Brunswick and Ontario showing declines, although in the latter case considerable activity in the search for new gas structures was maintained and during the last six months two wells were brought in, one at Howard in the Trenton at a depth of 1250 ft., giving 5,500,000 cu. ft., and the other at Tilbury in the Guelph or Salina at 750 ft. giving 9,000,000 cubic feet. As has been the case during the past five years, interest in the search for structure and in the following up and development of areas already recognized has centered in Alberta and adjacent portions of Saskatchewan. This was due in the first instance to the striking of wet gas in the Palaeozoic limestone (Madison) of Turner Valley, some 30 miles south of Calgary, in Royalite No. 4 in October, 1924. The bringing in of other wells of similar importance late in 1928 and in the spring of 1929 which extended the productive area 3 miles southwards led to greatly enhanced drilling activity throughout the structure and adjacent areas and in other parts of Alberta. As a result good strikes of heavy crude oil have been recorded during the year at Ribstone, Oyen, Skiff and Coutts, in each case at moderate depths and in sufficient quanitity to justify prolonged testing. The prospects of a satisfactory production of this grade of oil are very encouraging. Actual oil production in the west is still confined to the Province of Alberta and for all grades of oil totaled 997,359 bbl., which compared with previous years shows a gratifying increase. To this increase the naphtha obtained from the wet gas of Turner Valley has proved the principal contributant, heavy crude also showing an improvement, while the light crude, the product of the Cretaceo-Jurassic sands overlying the Paleozoic of Turner Valley, remains unchanged. This is largely owing to operators casing off these sands in their endeavor to reach the limestone, but, there is evidence that in future more attention will be paid to

Jan 1, 1930

By Eugene McAuliffe

THE heavy shrinkage in the production of bituminous coal has reflected adversely in the matter of tonnage produced by stripping arid mechanical loading machinery. The purchase of stripping and underground loading equipment has likewise been circumscribed. How- .ever a growing percentage of bituminous coal is being loaded by stripping and mechanical loading machinery. This situation is due to the fact that numerous strip pits were able to operate in Illinois and Indiana when under- cover mines were subjected to labor interference, a further advantage gained by their ability to produce and market coal at a price below that of the undercover mines. The mines equipped with mechanical loading. apparatus have enjoyed more continued operation for the double reason that the companies using coal-loading machinery are, generally speaking, more substantial and in better financial condition than many of the smaller properties who maintain hand-loading methods, and the market advantage due to lower production costs also reflects to the advantage of the undercover mines using mechanical loading equipment. Where a number of mines are con- trolled by one company, those not equipped with loading machinery and suffering from higher producing costs have often been closed, with the available tonnage concentrated in the more modernly equipped mines.

Jan 1, 1933

By W. W. Anderson

A formula for quantitative efficiency is proposed, in which the efficiency value is a function of the improperly distributed material at the, gravity of separation effected by the cleaning equipment. The misplaced material is expressed as a percentage of the total material discharged from the equipment. Numerous examples are given, demonstrating application of the formula to various types of separation, including multiple-product separations.

Jan 1, 1950

By H. T. Morris

ONE of the chief concerns of the Bethlehem Steel Co. naturally is the proper functioning of its organization. This involves the training of a continuous supply of younger men to fill the vacancies caused not only by the inevitable departure of older men, but also by the growth of existing establishment, and by expansion in new directions. It does not oper-ate a student training course with a fixed time schedule or with definite periods of rotation through the differ-ent divisions. To state the case positively, the gradu-ate's training course must operate continuously from the beginning of his employment through a long term of years. No period of weeks or months nor pair of years suffice to bring him into contact with all the com-binations needed to qualify him for the larger destiny toward which we hope he is headed. Our first step in selecting a college man is to require that he have a degree. We thus approximate the assur-ance that at least four annual siftings have reduced the chance that a non-worker may find himself in a job where work is necessary. The next step is to try to ascertain facts, from the graduate and from others who have known him at his home and in 'his college, to indi-cate whether our opportunities offer him a career that will challenge his continuing interest, and hold him to tenacious effort against all happenings. We aim to avoid knowingly bringing into our organization a man who will not develop in it enough enthusiasm to keep him happily striving. Having made our selections, we assemble the gradu-ates into a probationary observation circuit. We-put ourselves under their observation by taking them in small groups, usually of two to four men, on a circuit of every part of the Bethlehem plant, in which every manufacturing principle of our steel business is ex-emplified. The probationers work at something from day to day, with their hands if it can be arranged; otherwise in questioning, examining, and note-taking. Their observations include talks with superintendents, foremen, and workmen, the conditions under which workmen labor, apparatus, machinery, methods, design and operation of plant.

Jan 7, 1928

By AIME AIME

IN ACCORDANCE with the provisions of the Rules of Procedure of the American Engineering Standards Committee, the American Society for Testing, Mate-. on Feb. 15, 1921, submitted for approval by the A. E. S. Committee certain Standard Specifications for Copper, all of which were adopted or in process prior to Jan. 1, 1920, and sent with the standards the following histories of development and statements of use. FOR SOFT OR ANNEALED COPPER WIRE (B3-15) These specifications were originaly adopted by. the American Society for Testing Materials in 1912. They were prepared by a committee of the Society designated as Committee B-1 on Copper Wire. The committee consisted of eleven members; representatives of five manufacturers of -copper wire, of four manufacturers of electrical apparatus, and of two firms of consulting and contracting engineers. The members of the committee were designated by the officials of the companies to act as their representatives in the committee.

Jan 1, 1921

By S. A. TAYLOR

THERE is probably no other mineral industry of which the public has as much information and misinformation as it has of the coal industry. Unfortunately, however, the general public's knowledge of the coal industry, outside of the particular kind of coal it is accustomed to, by reason of use, is largely made up of information received from newspaper and popular magazine articles, in which the mine workers are depicted as overworked and mistreated men, and the coal operators as "coal barons." Those who have any specific knowledge of exact conditions in the coal industry know how unjust and un- fair such an opinion of the coal industry is, not only to the miner but to the operator as well. Many reporters and writers of magazine articles are misled by statements regarding the condition of the miners that are exaggerated and not founded on facts and, if an investigation of the conditions of the miner's work, his habitation and surroundings were fairly made, it would at least compel more truthful statements by those who write for public reading. That such an investigation would not reveal anything that was wrong, or anything to be censured or cured, no one, I think, would maintain, but I do think that any fair investigation of the facts would show that conditions in and around the newer and later-developed coal mines and communities would compare favorably with those of manufacturing districts, and that where the mines and com- munities are old and not very attractive places to work, or live in, they carry with them other considerations, compensating for these conditions, and cannot be remedied by reason of a lack of sufficient coal to warrant economically any costly changes.

Jan 1, 1926

By Allan B. Bowman

Several years ago a wealthy Chinese business friend of mine purchased an interest in a pro- posed oil well to be drilled a great distance from his home. A few months later it came in as a producer and proved to be a huge success and materially added to his resources. I asked him why a man of his wealth should be so lucky in a venture outside his sphere of knowledge when most people of modest means never seemed to get ahead. His answer was, "Fat Hoy takes a chance." Even though this was his answer, I knew from my association with him that there were other tempering considerations which Mr. Hoy applied before making up his mind to enter any transaction. First, he was a cautious individual. He was also a great believer in details and insisted on knowing everything possible about a situation, and finally, he was what we call a very solid individual with good basic instincts and judgment. This philosophy of Mr. Hoy may be applied to most any business but especially to those engaged in a search for natural resources such as mining where great risks are involved. This article concerns events in the history and growth of Banner Mining Co., with which I have been associated for 27 years in capacities from mine surveyor to vice president. Mr. Hoy's philosophy has played a significant role in the exploration projects of this company over the years, but what is more important, the officers, directors, and controlling interests in Banner have been aggressive in their search for ore reserves.

Jan 6, 1963

By N. Mungan

Formation damage, i.e.. reduclion in permeability, has been generally attribuled to clay minerals which expand or disperse upon contact with water that is less saline than the connate water. Luboratory, studies show that penneahility reduction can also occur in formalions containing only nonexpandable clays such as illite or kaolinite, and can be caused also by changes in pH. Furthermore, pH changes can damage even formations that are essentially free of clays. It is suggested that permeability reduction is due to the small passages being blocked by particles, which may be dispersed clays, cemenlion material or other fine parricles. These particles are dislodged by dispersion of clays due to changes in salinity or by dissolution of calcareous cement by acids, or of silicaceous cement by alkaline solutions. In working with reservoir cores, it was found that extracted cores damaged more easily and extensively than nonextracted cores. The extent of damage depended also on tenlperatltre. INTRODUCTION Permeability is an important property of porous media and has been the subject of many studies by engineers and geologists. Many of these studies are conccrned with formation damage, i.e., reduction in permeability, resulting from exposure of oil-producing formations to water substantially less saline than the connate water. This effect causes understandable concern since during drilling, completion and production phases formations are often exposed to fresh water. The damage resulting from contact with relatively fresh water has been attributed to expansion and dispersion oF clay minerals. During laboratory investigation of the use of NaOH as a wettability reversal agent to increase oil recovery from oil-wet reservoirs, several cores used in the displacement studies suffered loss in permeability. Despite the traditional usage of NaOH for conditioning aqueous mud systems, the role of the caustic filtrate in wellbore damage seems to have been overlooked. Browning2 as recently reported on the effects of NaOH in dispersing clay minerals but he was concerned only with complications that may arise in drilling massive shale beds. The following study was made to examine the role of pH and salinity changes in core damage. Where cores from reservoirs were used, tests were performed with extracted and nonextracted cores both at room and reser- voir temperatures, since it was felt that the test environment and core condition may affect the results. Because of its limited coverage and exploratory nature, this study is not intended to provide answers to field formation damage problems. It is hoped that it will encourage research into new aspects of the permeability reduction problems, particularly those allied to new recovery and production processes. PROCEDURE In all permeability tests, fluids were pumped through the cores at a constant volumetric rate. Only deaerated fluids and reagent grade chemicals were used. The fluids were passed through two ultrafine filters before injection to remove any entrained particles. The cores, with the exception of the unconsolidated cores, were mounted in Hassler holders. Water was used to transmit pressure to the sleeve. The inlet endpiece had two entry ports which permitted scavenging one fluid with another to avoid any mixing in the small holdup volume. The cores were flushed with CO2 gas, evacuated for 5 to 6 hours and saturated with the first liquid at a pressure of 1,000 psi for 24 hours to eliminate any free gas from the cores. Pressure differences up to 20 psi were measured by transducers, calibrated in inches of water and continuously recorded. For greater pressure drops, gauges were used. All reservoir cores were cleaned with a light refined mineral oil, then with heptane, and finally dried with CO2. Compatibility tests showed that no precipitates formed when mineral oil and the crudes were mixed. Some cores were extracted in Dean-Stark-type solvent extractors using xylene and trichloroethane and dried in a vacuum oven at 450F. Each test consisted of a sequence of water, test solution, and again water flow. RESULTS AND DISCUSSION STUDIES IN BEREA CORES Salinity Contrast Berea cores 2-in. in diameter and 12-in. long were cut from sandstone quarried in Cleveland, Ohio. The clay minerals were identified by X-ray diffraction to be chlorite, kaolinite, illite and incerlayered illite. Flow of fresh water or 30,000 ppm brinc does not cause any permeability reduction (Fig. 1). However, after injection of brine the core is readily damaged by fresh water. Damage starts almost instantly as the fresh water injection is begun, and at a cumulative injection of 1.2 PV fresh water, the permeability has dropped from 190 to 0.9 md. Upon continued injection, the effluent contains clay minerals dislodged from the core. The final core per-

Jan 1, 1966

Page Foreword—H. Foster Bain........................ 9 Letter of Transmittal—F. Julius Fohs...................11

Jan 1, 1927

Page Foreword—H. Foster Bain........................ 9 Letter of Transmittal—F. Julius Fohs...................11

Jan 1, 1927

By V. R. Garfias R. V. Whetsel

Production of crude petroleum in Mexico during 1935 totaled approximately 40,082,000 bbl., an increase of 1,925,000 bbl. over the previous year. Successful development continued in the Poza Rica field during the year, increasing production in that area from 3,708,000 bbl. in 1934 to 9,542,000 in 1935. The output of the South fields (Golden Lane) area decreased by 3,000,000 bbl. during the year, and the heavy-oil district of the Northern fields by 1,500,000 bbl. Production in the Tehuantepec fields showed a slight gain. Production of natural gasoline increased from 430,000 to 600,000 bbl. in 1935. Crude run to stills in local refineries is estimated at 30,000,000 bbl., some 4,000,000 bbl. more than in the previous year. Exports of crude and refined products were approximately 22,000,000 bbl., or 2,000,000 bbl. less than in 1934. Exclusive of ships bunkers, domestic consumption increased about 900,000 bbl. during the year, reaching an estimated total of 14,500,000 barrels. Only 74 wells were completed, as compared to 148 in 1934 and 91 in 1933. In proven areas 58 completions resulted in 33 producers and 25 failures. In northeastern Mexico, near the United States border, six wildcat wells were completed, all of which gave little or no encouraging results, except Rancheria No. 3, near Camargo, which is a fair-sized gas well. Four wildcats were drilled just northeast of the Northern fields (heavy-oil district), all of which were failures. A deep test was completed a short distance southeast of the Golden Lane (South fields) in Palo Blanco, which encountered small production not sufficient to exploit. On the Isthmus of Tehuantepec a wildcat well was completed for an estimated initial production of 2000 bbl. daily, a short distance south of the old Jalapa field, which was perhaps the most important new development of the year. Four other wildcats drilled in the Isthmus district resulted in failures. Fields Northern Fields (Heavy-oil District).—In the Northern fields, 18 producing wells and 20 failures were completed, as compared to 34 producers and 71 failures in 1934. The initial production of the new

Jan 1, 1936

By V. R. Garfias R. V. Whetsel

Production of crude petroleum in Mexico during 1935 totaled approximately 40,082,000 bbl., an increase of 1,925,000 bbl. over the previous year. Successful development continued in the Poza Rica field during the year, increasing production in that area from 3,708,000 bbl. in 1934 to 9,542,000 in 1935. The output of the South fields (Golden Lane) area decreased by 3,000,000 bbl. during the year, and the heavy-oil district of the Northern fields by 1,500,000 bbl. Production in the Tehuantepec fields showed a slight gain. Production of natural gasoline increased from 430,000 to 600,000 bbl. in 1935. Crude run to stills in local refineries is estimated at 30,000,000 bbl., some 4,000,000 bbl. more than in the previous year. Exports of crude and refined products were approximately 22,000,000 bbl., or 2,000,000 bbl. less than in 1934. Exclusive of ships bunkers, domestic consumption increased about 900,000 bbl. during the year, reaching an estimated total of 14,500,000 barrels. Only 74 wells were completed, as compared to 148 in 1934 and 91 in 1933. In proven areas 58 completions resulted in 33 producers and 25 failures. In northeastern Mexico, near the United States border, six wildcat wells were completed, all of which gave little or no encouraging results, except Rancheria No. 3, near Camargo, which is a fair-sized gas well. Four wildcats were drilled just northeast of the Northern fields (heavy-oil district), all of which were failures. A deep test was completed a short distance southeast of the Golden Lane (South fields) in Palo Blanco, which encountered small production not sufficient to exploit. On the Isthmus of Tehuantepec a wildcat well was completed for an estimated initial production of 2000 bbl. daily, a short distance south of the old Jalapa field, which was perhaps the most important new development of the year. Four other wildcats drilled in the Isthmus district resulted in failures. Fields Northern Fields (Heavy-oil District).—In the Northern fields, 18 producing wells and 20 failures were completed, as compared to 34 producers and 71 failures in 1934. The initial production of the new

Jan 1, 1936

THE distinction btween price reduction as a re-sult of lowering of production cost and price re-duction through unrestricted competition cannot be made too clear, because they are often interwoven in actual experience. Take the whole population of a town whose principal industry is shoe manufacturing as a concrete example. If the manufacturer is able to cut his price per pair in half because he has found out how to make a pair at half the cost, he will com-monly let a number of his men go, because reduction in production cost usually results from substituting cheap mechanical energy for expensive human energy. These people will normally find other employment. The workmen who remain employed usually earn more in dollars than they did before, and in spending it give employment where there was less before. Mining companies that initiate considerable enter-prises in foreign lands where the economic level is low, and where most of the people are busily but in-efficiently engaged in raising enough food to support themselves and their families, often find themselves confronted with an acute labor problem. If any con-siderable number of workers leave the land to work in and about the mines, those left on the land cannot raise enough food to keep them all unless they are taught better methods of agriculture and provided with equipment that will enable them to produce more with less expenditure of effort. Add to this the fact that managers commonly find that the "natives," as our British cousins designate them, usually need more food and a better balanced diet than they have been accustomed to in order to show anything above the lowest order of efficiency in industrial work,. and it is clear that to make a new industry possible in what may be termed an economic province involves increas-ing the productivity, not only of those who are em-ployed in it, but of the whole social group. It has already been pointed out that the employ-ment of large numbers of men in automobile manu-facture is only possible because the others have in-creased their productivity enough to turn out every-thing else that is needed without the help of the auto-mobile workers.

Jan 7, 1928