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 money withdrawn from the receipts to be placed in the depreciation fund (not including replacements and the drilling of new wells necessary to keep up the productiveness)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

Jan 5, 1915

(Under this heading will be published notes sent to the Secretary of the Institute by members or other persons. ) A member, technically educated, with 20 years' practical experience as engineer, assistant superintendent, superintendent, and manager of large mines and mills on construction and operation, also experience in mine examination, is open to engagement. Metallurgist of 18 years' experience in Mexico with large plants is open to engagement. Last position, superintendent of copper smelting works. Best line, copper and lead smelting, but also experienced in mine valuation and ore-treatment investigation work. Speaks Spanish. A member of the Institute and graduate mining engineer with 10 years' experience in the Lake Superior copper district, also practical experience, desires position as superintendent or manager. Member, graduate mining engineer, experienced in mine and mill work, geology and field work, one year in the hydrometallurgy of copper, is open for engagement Aug. 15. A member, at present in the Southwest., desires a position as assistant superintendent or assistant manager with a mining company operating in Washington or Alaska. Experienced assayer and engineer. A member, technical graduate, with nine years' mining experience as assayer, engineer, foreman, manager's assistant, and superintendent of large development and operating mining companies in the United States and Mexico, is open for engagement. A member, technical graduate, 33 years of age, 11 years' experience as chemist, metallurgist and superintendent of lixiviation plant and in charge of construction of cyanide mill, desires position as assistant superintendent or superintendent of mining or milling company in United States or Canada. Young man, technical graduate, two and a half years' experience in chemical laboratory, desires position as chemist.

Jan 9, 1913

By George H. Hanna

THE importance of the Donets coal field (the Donbas) to the national economy of the Soviet Union is well known. Great as was the significance of this tremendous deposit of coal in prewar days it is destined to become an even greater factor in the economic life of the country now that the tremendous havoc wrought by the Germans is being remedied. Since the war began, new coal fields have been extended; for example output of the Moscow and Karaganda (Kazakhstan) fields has become considerably larger while new mines are producing coal in several parts of Uzbekistan and Kirghizia. The huge West Siberian coal field, the Kuznetsk Basin, is producing more coal than ever before to supply the industries of that region and of the Urals. But so great has been the development of industry to meet war needs, especially in those districts of the Soviet Union that lie to the East of the Urals, that the coal obtained, eked out by such locally-won fuels as peat and wood, is still barely sufficient to meet industrial requirements. The main burden of the coal supply for the restored industries of the West, therefore, will fall on the Donbas.

Jan 1, 1945

PRIOR to the World War most of the barite used in the United States for manufacturing lithopone and barium chemicals was imported. Germany, by virtue of an abundance of high-grade ore and low labor costs, was in a position to dominate the world market. With the cessa-tion of imports and with the war demand for barium chemicals, the barium chemical industry and the mining of barite became well estab-lished in the United States. This industry has continued to expand because of the increasing use of lithopone. In 1914 the sales of domestic crude barite was 52,919 tons and in 1934 it was 209,850 tons. Barite deposits of economic importance occur in at least 20 states, but the principal producers in 1934 were Missouri, Georgia, Tennessee, South Carolina, Virginia, California and Arizona. The main mining centers are located near the crude barite markets of the three principal marketing districts-the Pacific Coast, the Midwestern area, and the Eastern area. The Pacific Coast is supplied entirely by California, Nevada, and Arizona. The Midwestern area uses most of the Missouri crude and a small amount from the southern states. The eastern market is the chief competitive area. Practically all of the imported crude is marketed there; also the bulk of the southern crude and ground barite. In addition, this area absorbs a small part of the Missouri crude and 80 per cent of the ground barite. Besides the advantage of low delivered costs and purity of product, the imported barite has commanded a price differential because it is soft rather than hard, like many of the domestic ores. The inherent physical properties of the southern ores remain, but the purity can be controlled to a great extent by beneficiation. Simple washing or gravity concentra-tion has sufficed in the past, but in many cases a more efficient process now becomes imperative to remove impurities not amenable to these methods. Certain deposits now being opened are of lower grade and require more precise milling conditions. In some ores, the kind of impurities has changed as the mining advanced.

Jan 1, 1936

By Dwight C. Roberts, Stender Sweeney

The spacing of wells in Long Beach oil field has caused much discussion from the earliest days of its development, on account of the closely drilled town-lot areas which have been as intensively developed as any productive areas in the world. The purpose of this paper is to present the results obtained from this type of development in comparison with the more widely spaced development in this field, now that a sufficient length of productive life has elapsed. The intensity of development in Long Beach is indicated by the fact that up to Sept. 1, 1929, there were 1736 wells either drilled or drilling. Of these 165 failed to get production and 121 were drilling. Thus 1450 wells have produced oil from an area of 1350 acres. Up to July 1, 1929, these wells produced a total of 35.5,047,913 barrels. Method Pursued Four groups of offset areas were chosen, in each group the wells in one area are widely spaced and in the other, closely spaced. The areas in each group are contiguous and the groups are spread over the field from the southeast end to the northwest, so that representative data are assured. The comparison has also been extended to shallow and deep zones, like zones in their respective areas being compared. Even though these productive zones are very thick, a fair picture of results is obtained, because the drilling of the wells in the two types of areas was concurrent in the different groups and, as a rule, the thickness of sand opened up at any one time was about the same. As deeper sands were found, wells in offset areas were deepened or new ones were drilled in both types of areas. The division of zones was made in the same manner in contiguous areas. The total cumulative production up to July 1, 1929, of the wells in their respective zones in each area was obtained. From these figures were computed the recovery per well, recovery per acre, acreage per well, and the ratios of these factors. Thus July 1, 1929, is the end of the period considered in all areas.

Jan 1, 1930

By O. B. Harden

In working out the geological structure of a complicated district, where the problems are difficult to solve by the ordinary methods in use, a model, upon which all the geological and topographical data may be put, will be found of great value, bringing, as it does, all the facts in their proper relationship at once under the eye. In the teaching of structural geology, also, a model is of great value, since the student can thus have before him, in miniature, a representation of the rocks, as he would see them in place. Topographical models may often be useful in suits at law for damages in railroad accidents, or for trespass against mining companies, etc., in order

Jan 1, 1882

By L. Michael Kaas

On its tenth anniversary, the computer is a "fact-of- life" in the mineral industries. Its evolution as a practical mining tool was accurately summarized by Alfred Weiss, editor of the Proceedings of the 1969 International Computer Application Symposium, A Decade of Digital Computing in the Mineral Industry: "During the past decade, data processing and operations research developments within the mineral industry have evolved through states typical of any new technique. These have ranged from mere recognition, to cautious acceptance, to confident utilization, and in some instances, to substantial investment in computer hardware and software."

Jan 1, 1970

Jan 1, 1940

By A. E. J. Engel

The New York talc deposits of commercial importance are in St. Lawrence and Lewis counties, in the northwest Adirondack Mountains (Fig 1). All of the deposits are of pre-Cambrian age and occur within highly deformed and recrystallized marble of the Gren-ville series. The deposits in St. Lawrence County, near Gouverneur, are the largest and most productive of their type known in the Western Hemisphere. In 1948 the seven mines which are in operation will produce about 130,000 tons of ground talc. All talc production in Lewis County is from one mine. There the annual production ranges from 15,000 to 30,000 tons. These so called talcs of New Yorb State include earth materials of different chemical and mineral compositions. In general the mineral talc is subordinate in amount to other minerals in both the Gouverneur and Natural Bridge deposits. In the Gouverneur district the mineral talc comprises less than 25 pct of the mined and ground rock. Most of the rock mined is a tremolite- or tremolite-anthophyllite schist somewhat altered to serpentine and talc. This characteristic in no way tlevaluates the "talc" for certain markets, and in some instances makes the material more desirable. The Natural Bridge talcs include types high in serpentine, as well as complex aggregates of serpentine, talc, carbonates, and diopside. Usage of the term talc, however, for

Jan 1, 1950

By Winthrop P. Haynes

The symposium on production for the year 1944 includes more foreign papers than any one of the past three years, because of a partial relaxation of the censorship in many Western Hemisphere countries. The committee was not successful, however, in securing papers from Europe and the Near and Far East at this time, with the exception of Saudi Arabia and Bahrein. Where possible, these papers include summaries upon production for the missing war years, so that we shall have no permanent gap in the records. At the close of the war, we hope again to publish the usual more complete form of report for all important oil-producing countries. EXCERPTS FROM CIRCULAR TO AUTHORS In order to facilitate interpretation of the data in this chapter, we print the following excerpts from the Circular to Authors. The field is the unit in this tabulation. In cases of fields extending across State boundaries, such as Rodessa, it is suggested that each State author treat the section of the field in his State as a unit, and by a footnote indicate that the field extends into an adjacent State. Each place in the table may represent one of three possibilities; either the proper entry is determinable and can be supplied by the author, or an approximate figure can be supplied which is the author's best guess and should be entered followed by an x, or it does not apply to the particular field and the space is left blank. Contributions of great value may be made by the author in many cases where entries are not subject to precise determination. In such cases the author should use his good judgment and make the best entry possible under the circumstances. The entry of a zero is a positive declaration, and it is an important declaration where it is in order. It is thought that the nearest whole numbers are sufficiently accurate for our purposes except as to percentage of sulphur in oil. If an author desires to report any other figures to tenths, he may do so. The quantity of gas produced should include, where possible, gas sold or otherwise marketed, and gas blown into the air, burned as flares or otherwise wasted. Segregation of these figures would be interesting if the authors can make such segregation. In any event, the figures should represent as nearly as possible the total quantity of gas removed from the reservoir. . Under the columns on "Depth," the average depth to the top of the productive zones and to the bottom of the productive wells, when subtracted, should give the approximate thickness of the productive zone. For fields where this is not true because of unusually high dip or for some other reasons, it is suggested that the authors indicate in their text the approximate average thickness of the productive zone. The net thickness of the producing formation should be the thickness of the producing zone, less the estimated amount to cover the portions of the zone that do not yield oil, such as dense shales, etc. It is recognized that for some fields the authors can only make rough guesses; in such cases, they should enter their best estimate followed by an x. Average production per acre-foot need not be reported as it can

Jan 1, 1945

Edward A. UehliNg, New York City (communication to the Secretary*):—In adding my mite to the discussion, I wish to touch on a few points which bear emphasizing and perhaps a little further elucidation. Mr. Grammer says that he "found the electric pig-breaker at Duquesne, if used in connection with the iron-chill, less expensive and more satisfactory " thau the casting-machine. The cost of handling the iron over the Duquesne casting-niachine is about double the average cost of the other Uehling machines at the several Carnegie plants. It is nearly as expensive to run as the Hey1 & Patterson machines, and while Mr. Grammer's statement is, no doubt, true, as applied to that particular machine and breaker, it should be borne in mind that the machine at Duquesne had embodied in it several new features, which were not improvements; also that it was taxed beyond its economic capacity. The machine at the Lucy furnaces under the management of Mr. Scott handled the output of the two furnaces, and saved

Jan 1, 1905

By C. E. Sims

In some experimental work conducted several years ago, it was noted that sulphur seemed to have a distinct influence on grain size of carbon steels. 111 order to check this observation, a series of S..A.E. 1040 steels was made with the normal composition held as nearly constant as possible. The steels were made with three sulphur levels, which were 0.012, 0.024 and 0.038 per cent sulphur, respectively. For each of the sulphur levels, steels were made with only silicon deoxidization and with aluminum additions of 0.1015, 0.025, 0.050 and 0.10 per cent. The melting medium was an acid-lined high-frequency induction furnace. These steels were forged and rolled and differentiall!. quenched from temperaturcs in the range of 1500O to 1800°F. After this, the A.S.T.M. grain size was determined and plotted as in Fig. I. It will be noted, first of all, that the aluminum-free steels had filler grain size with higher sulphur when heated to 1500, but that this condition was reversed at 1700°. When aluminum was added to produce fine grain size, the steels in the lowest sulphur level were fine-grained only to 1600°. and then only with an addition of one pound of aluminum per ton. The medium sulphur steels werc fine-grained to 1600' with a wider range of aluminum addition. The steels in the highest sulphur level were fine-grained at 1600° over a still wider range of aluminum additions and fine- grained at 1700° with an addition of one pound per ton. Fig. 2 shows curves of the grain-coarsening temperature for these steels and illustrates how sulphur and aluminum combine to give greater inhibition to grain growth than aluminum alone. Only the highest sulphur steels have a grain-coarsening temperaturc above 1700°.. At 1650°, the low sulphur steel is fine-grained only at its peak, while the highest sulphur steel is fine-grained over a wide range. In these tests, one pound of aluminum per ton gave the best results; this is equivalent to about 1 1/2 lb. per ton for commercial condition. IllcQuaid-Ehn tests made on these steels showed the same trend but to a lesser degree. The tests were repeated on a series of S.A.E:. 1015 steels with sulphur levels of 0.02 and 0.03j per cent. Aluminum additions were made in the range from 0.025 to 0.15 per cent. These steels were forged and rolled, normalized at 2000°F. to put them all in the same starting condition, then reheated to various temperatures from 1600" to 1800" and cooled at rates that would allow ferrite precipitation in the austenitic grain boundaries. The results of these tests arc shown in Fig. 3. It will be noted that. up to the temperature of 1650°, there is very little difference in the grain size obtained from the two levels of sulphur. .At temperatures of 1700° and 1750°, however, the lower sulphur steel was fine-grained only with an aluminum addition of 1 1/2 lb, per ton;

Jan 1, 1945

By B. C. Morrison

Because of U.S. Forest Service regulations and the consequent cost of leaving several diamond drill holes open at the same time, it was necessary to develop an electrical method that could be used in one hole at a time to extend known mineralization. This was achieved by balancing the surface current electrodes so that the two potential electrodes in the hole being surveyed were in the same equipotential surface. This condition eliminated stratigraphic response but enhanced any asymmetry due to ore between the hole and either current electrode. This method was successfully used in mineralized holes at West Fork, Reynolds County, Mo., to show the direction in which to extend the drilling into areas of better mineralization.

Jan 1, 1972

By Robert Abbott

THE influence of various elements in retarding or accelerating the absorption of carbon during the process of carburization is fairly well known. In general those elements which forth carbides accelerate the absorption, while those which do not retard it. It has sometimes been wrongly stated that those elements which raise the temperature of the critical range increase the absorption, while those which lower this temperature decrease it. Silicon is a notable exception to this rule, for its influence is to raise the critical range but to lower the absorption of carbon. Some elements which do not form carbides have no apparent influence upon the absorption rate. Carbon itself retards the absorption rate. With a view to obtaining more exact data upon the subject the following experiments were undertaken : 208 steels of different chemical composition were selected to represent most of the types of modern constructional steels. Specimens 3 in. in diameter and in. in length were weighed to milligrams. They were then packed in the special carburizing box shown in Fig. 1, and kept in .the furnace for 10 hours at a temperature of 900° C. A duplicate experiment was conducted at 1,000° C. At equal' intervals of time the box was rotated in the furnace so that. two complete revolutions were made in the 10 hours. This precaution was taken to neutralize as much as possible any effect of unequal heating. At the end of the 10 hours the box was allowed to cool in the furnace with the doors open. The specimens were then weighed again and the increased weight (carbon) determined. In. the following table are given the analyses of the various steels, together with the. increased weight of .carbon expressed in milligrams.

Jan 10, 1913

The annual report of the Secretary of the Southern California Local Section for the year ending May, 1919, says that the Section was called upon to give all the assistance possible for the different Liberty Loan drives, for the Red Cross drives and not only in the canvass of our membership, but the canvass of all of the mining companies represented in this city. The committee on the Red Cross drive on which we were represented raised a larger proportion of the total amount than any other in the city. The subscriptions for Liberty Bonds from the members of our' Section that were credited to the Committee of the Joint Technical Societies exceeded in amount the subscription from the members of all the other technical societies combined. Members of our Section slid splendid and efficient work throughout the first half of the year at the Red Cross headquarters in this city, and under the leadership of A. B. W. Hodges and F. B. Close, systematized the work of handling the enormous quantity of material that passed through that organization. Mr. E. A. Montgomery directed the canvass of the mining companies of this city in the bond drives, and the Executive Committee did its part in solicitation among the mining engineers. The Section, together with the local sections of the American Chemical Society, American Institute of Architect, American Institute of Electrical Engineers, American Society of Civil Engineers, American Society of Mechanical Engineers, and the local Engineers and Architects Association, forms what is called the Joint Committee of the Technical Societies. of Los Angeles. The honor of having the first president of this combined organization of engineers was given to us with, the election of Mr. Seeley W. Mudd. Upon Mr. Mudd's entering the service, Mr. George A. Daman of the Electrical Engineers was elected to the position and served splendidly during the latter part of the year. It devolves upon this Section to be represented upon this Joint Committee by three members, and it is our duty to supply a speaker once in six weeks to address the engineers in attendance at the weekly luncheon. During the year not a few of the most prominent men of the engineering professions have spoken upon subjects of the greatest interest to us all. Had it not been for the organized team work in the engineering profession available through this Joint Committee, there would have undoubtedly been passed in the recent session of the legislature of this state a bill for licensing and registering all professional engineers in this state, which, in the opinion of your Executive Committee and a large proportion of the membership of this Section, would have fallen far short of either protecting the engineer or protecting the public from impostors. That the public is awakening to the importance of what our National Society represents in the profession of mining engineering can be well inferred from the increasing number of inquiries your Secretary receives regarding the reputation of mining engineers. The necessary qualifications which a membership in the Institute requires and the membership of an engineer in this National Organization is more and more a criterion as to the ability of an engineer who represents himself as such, to the general public.

Jan 9, 1919

By J. B. Newkirk, R. W. Hendricks, R. Baro

STUDIES of the kinetics of precipitation in binary alkali halide systems are of interest from a theoretical point of view, because of the possibility of controlling diffusion rates by additions of aliovalent impurities. This note reports some preliminary results of a study of the kinetics of precipitation of AgCl from supersaturated solid solutions of AgCl in NaCl containing trace amounts of divalent cation impurities. In their study of the system NaC1- AgC1, Stokes and Li1 derived the phase diagram containing a mis-cibility gap with a broad maximum at approximately 170°C. They found that single crystals quenched from above the miscibility gap and aged at various temperatures within the two-phase region gradually turned light blue, then cloudy white, and finally opaque. The rate of transformation depended markedly on the aging temperature. The light-blue color in the early stages of aging was interpreted to be the result of Rayleigh scattering from precipitated particles less than 0.1 µ in diameter. These qualitative observations have been confirmed by us. However, a more precise tool was needed in order to quantitatively follow the growth kinetics of the precipitate particles. Because of the suspected small size of the precipitate particles and for other reasons, small-angle X-ray scattering was thought to be a suitable technique for this study. Small-angle X-ray intensities scattered from powder specimens were recorded on a General Electric XRD-5 diffractometer using the four-slit geometry described by Neynaber, Brammer, and Beeman.2 The slits were 0.08 mm wide by 10.00 mm high. It was found that, with very careful alignment, meaningful data could be obtained to within 3 min from the middle of the direct beam. Chromium radiation (?Ka = 2.29Å) was used in order to spread the scattered intensity to a relatively high angle, as indicated by Eq. [1]. A specimen containing 21.0 at. pet AgCl was prepared by melting analytic reagent-grade AgCl and NaCl under a chlorine atmosphere in a vycor cap-

Jan 1, 1964

New Device Eliminates Blasting in Coal A non-explosive device developed by duPont utilizes the high pressure of a gas generated inside a steel tube which is inserted in a hole drilled in a coal seam to break down the face of coal. Chemical reaction is started by an electric current which produces heat to initiate the action. The same heat destroys the starter wire as soon as electric current is no longer needed. The tube containing the chemical is closed at the outer end by a plug with electrical connections, and at the other with a disk that is ruptured by the compressed gases formed. When the gas has been liberated in sufficient quantities to create a desired pressure the disk breaks and the released gas breaks down the coal face. The new device is called a Chemechol.

Jan 10, 1951

By C. M. St. John

INTRODUCTION The stress redistribution accompanying the excavation of a deep tunnel may induce failure of the rock. The role of the support system is to control the extent of the failed region and hence to limit closure of the tunnel within an allowable amount. In such circumstances, the design of the support system is generally based on the Ground Reaction Curve (GRC). The GRC is the relationship between the support pressure and the induced displacement at the tunnel wall for a circular tunnel under hydrostatic loading. In the calculation of the GRC (see Brown et al. (1983) for an exhaustive list of reference), the rock is generally treated as an elastoplastic material characterized by cohesive-frictional yield strength and by dilatancy during plastic deformation. A recent analytical development (Detournay, 1983) has allowed the generalization of the GRC concept for some cases of non-hydrostatic in-situ stress fields (Detournay and Fairhurst, 1982). As an application of that development, this paper describes design charts that provide powerful means of performing parametric analysis for tunnels subject to non-hydrostatic loading. BACKGROUND The in-situ stress in a plane perpendicular to the tunnel axis can be decomposed into mean and deviatoric components, Po and So (see Fig. 1). Since it is assumed that the rock is characterized by a Mohr-Coulomb yield strength, the deviatoric invariant So must be less than the limiting value Sl0 given by

Jan 1, 1984

By Charles O. Thomson

When a wire rod of iron or of steel is immersed in a hot solution of common salt, allowed to remain long enough to bring the metal to the temperature of the brine, and withdrawn, the surface of the rod is irregularly covered with a deposit of crystals of salt. These crystals adhere to the cod with great firmnes, in consequence, doubtless, of a thin film of ferric hydrate, which is formed between them and the rod as the water dries off. The rod can now be reduced, by successive passes through a dic or draw-plate, without any

Jan 1, 1881

By Peter J. Maxworthy

INTRODUCTION There is no hard and fast rule on whether functions within a company, diversified or otherwise, should be strongly centralized or decentralized. In all diverse organizations, there are certain basic functions which remain common (or central) to each element of the business, viz: Personnel Management Cash Management Taxation Management Legal Planning Accounting Standards It would follow that each of these common factors requires some supervision at a central level to ensure that overall group objectives are met. It is true that other functions including: Industrial Relations Marketing and Distribution Production Research and Development Purchasing Management Accounting may also be common to each element of the organization. However, there is far less commonality in the degree to which these functions are central to the efficient performance and financial well-being of the business. Role of Operating Units The resources of operating centers may be viewed as a bank of funds, the nature of which can be changed from time to time, but the employment of which must provide for ongoing increases in the net worth of the total enterprise expressed in terms of market values. Operating units are required to continually review products, methods, and opportunities and to monitor avenues for incremental investment--all with a view to attaining the necessary additive net present value of future cash flows of the enterprise. Operating units should be permitted sufficient autonomy to enable the best use to be made of the skills and experience of the people it employs in order to produce a return appropriate to the value of assets employed. Role of Head Office The head office will typically comprise a specialist group--the leaner the better if one strongly adopts the decentralist approach--often acting as Service Centers but also performing a control function in the corporate sense. The head office function is a cost center. It may be instrumental in developing strategies for increasing revenues or reducing costs on a group scale, but it does not generate revenue. Every dollar spent on this function is an extra dollar to be generated by the operating centers in order to achieve an increase in corporate wealth. TREASURY MANAGEMENT Treasury management is concerned with the provision of finance, cash-flow management, and risk analysis. Each decision taken within the enterprise has a cash implication. It follows that a well-integrated central Treasury function can, in all likelihood, produce economic benefits. The degree to which the function should be centralized depends largely upon the unique nature of the operating units it is servicing. Levels of ownership, the calibre of unit operating managers, and the nature and geographic distribution of the business are all factors determining the degree to which the Treasury function is centralized. In the case of Peko-Wallsend, the Treasury Department is small, comprising four people. While divisional cash-flow management is largely decentralized, Treasury is responsible for the daily management of funds surplus to the immediate needs of operating units. Treasury also operates as central banker and provides funds to

Jan 1, 1985