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By Albert E. Ketler

Introduction – The introduction of computerized monitoring and control (M/c) equipment into the U.S. coal mining industry may prove to be of truly revolutionary proportions in the 801s.Many of you are aware that the British have developed and have been using such sophisticated M/C equipment for performing production and safety related tasks in their coal mines for nearly a decade. The benefits of M/C systems in the mining industry are usually separated into those which improve productivity, and hence make money for the company, and those which improve safety, and hence cost money. The economic benefits of M/C are startling for the production related functions such as for monitoring and controlling conveyor belts, de-watering pumps, electrical power distribution, and the like. It doesn't take much analysis to show that hundreds and even thousands of tons of coal don't get mined every time a belt shuts down or when power is out due to circuit breakers tripping for any number of reasons. A flood, caused by a malfunctioning pump which goes undetected for lack of feedback monitoring of pumping parameters, can destroy literally millions of dollars worth of mining equipment. The M/C system would be justified or not based on whether or not the productivity benefits balanced the cost within a timespan commensurate with the return on capital philosophy of the company. The safety related benefits are easily underestimated or ignored completely and the purpose of this paper is to under-score some of these benefits, as well as to review the application of M/C to the coal mining industry. The companies involved are Transmitton Ltd of England and Minetics Corp of Pittsburgh, Pennsylvania. Transmitton is probably the most experienced manufacturer of M/C equipment in the world having some 200 installations to its credit. Minetics is the marketing and manufacturing arm for Transmitton in the U.S.A. and is responsible for all aspects of distribution and service. Plans are underway for manufacturing of the Transmitton hardware for U.S. sales to be transplanted into U.S. subcontractors by 1981. Thus our coal mining industry will benefit from British technology, but without the delays and additional costs usually involved in international shipments.

Jan 1, 1981

By Blake M. Caldwell, Thomas C. Poulter

A new approach to an old problem has made it possible to do in a a tively short period what has not been accomplished in the past three quarters of a century using strictly experimental methods. A theoretical study was made of the underlying principles whereby a jet is formed by a shaped charge and of the mechanism of the penetration of the target by that jet. It was found that there are more than 10, and perhaps as many as 15 variables affectin!? the performance of the shaped charge. Only a few calculations are necessary to show that it is physically impossible to investigate all of these variables experimentally. The shaped charge theory has been extended to include a previously little-understood mechanism in high explosive phenomena; namely, low order detonation. By superimposing a high order detonation on a zone already undergoing low order detonation, all appreciable improvement in performance is accomplished. The development of a design wherehy these phenomena are coordinated in such a way as to develop a jet which is tailored to meet the specific target requirement will be described in detail. The shortcomings or even impossibility of strictly experimental techniques will be illustrated by a discussion of the development of a special-purpose explosive charge. INTRODUCTION In an article appearing in the May, 1888 issue of Scribner's Magazine, Charles E. Monroe described his early experiments with gun cotton (Fig. 1) which led to his name being most fre-quently connected with our present-day shaped charge. Although the sunken letters or "cavities" in Mon- roe's gun cotton were not lined, they produced some penetration of an iron plate. The credit for the lined shaped charge, however, should rightfully go to Dr. R. W. Wood of the Physics Dept. of Johns Hopkins University, who was responsible for first discovering the fact that a metal liner in a cavity of explosive gave high velocity fragments and/or jets of metal. This discovery was made by Dr. Wood inadvertently while investigating an accidental death resulting from an electric blasting cap. He discovered that a jet of high velocity copper particles was ejected from the dimple

Jan 1, 1958

By V. C. Smith

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

Jan 1, 1934

By George Collins

AT the meeting of the Western Division of the American Mining Congress, held in Denver last September, papers were read by F. H. Brownell, a vice-president of the American Smelting and Refining Co. and chairman of its finance committee, and by H. Foster Bain, former director of the United States Bureau of Mines and now secretary of the A. I. M. E.. which dealt thoroughly with certain phases of my sub-ject. These addresses can hardly have failed to awaken serious reflection in all who listened to them; but their implications have apparently not penetrated the con-sciousness of bankers, economists and statesmen, whose business it is, or should be, to prepare for the economic and social changes which must inevitably follow, if the conclusions which I shall outline hereinafter are true. In discussing this subject I wish to disclaim any intention or desire to forecast the course of the metal markets or the immediate prospects of the mining in-dustry. The facts' adduced must inevitably influence the value of metals, the activity and profitableness of mining, and perhaps also the social status of those en-gaged in it. But my forecasts do not refer to this year, next, year, or the year after. The nearest ap-proach to a date on which I will venture is that the relative scarcity of gold may begin to make itself felt in something like ten years from now, but its effect will not culminate for several years thereafter. Scarcity of new gold is likely to be offset, to some extent, by increasing use of currencies based on credit; but unless it is found possible to dispense with the gold standard altogether, this can hardly prevent a great ultimate fall in commodity prices. This fall, moreover, is likely to be more severe in manufactured goods than in what are, popularly termed raw ma-terials; and most of all in those manufactured goods which are susceptible to the greatest degree to cheapen-ing by mass production, and which are least counter-affected by increasing metal prices; by which I mean those in which the cost of metal contained forms a relatively small, element in the total cost of production.

Jan 6, 1927

By M. E. Wadsworth

The chief value of a paper like this consists in its statistical tables, putting on record material useful to future inquirers. The data here given have been compiled from time to time as far back as 1874, and subsequently brought up to date. Much of the data could only be procured by personal inspection of the catalogues, as for example those relating to the Lawrence Scientific School, which were taken at that time from the catalogue of Harvard University, on file in the University Library, by the present writer, then an instructor in that institution. These tables of statistics were first prepared for publication by the present writer in 1888-1890 and published in his "Report to the Board of Control of the Michigan College of Mines " (Michigan Mining School) for 1886 to 1890. Later they were revised, enlarged and brought down to date in his reports to the same Board for 1890-92; and since that time they have been, at his request, revised, greatly enlarged and kept up to date by Mrs. Frances H. Scott, the efficient Librarian and Secretary of the Michigan College of Mines. Great credit is due to her for her devotion to this work and her untiring efforts to have the statistics complete as far as possible. The accompanying running commentary is given simply as a string to hold these statistics together, and in order to call attention to a few points. In compiling any tables like those accompanying this paper, one is confronted by serious difficulties, some of which render these results only approximate. In order to insure greater correctness and fullness in the statistics to be published the writer's reports for 1890-92 were sent to the president of every college, university, and technical school in the country, so far as known. Accompanying this was a personal letter which asked of each one his aid in correcting any errors, and in giving fuller statistics. But relatively few answers were obtained, and subsequently from one to many letters have been sent to each institution not formerly reply-

Jan 1, 1898

By C. P. Sandberg

C. P. Sandberg, London, Eng. 1 think we should all be grateful to the Pennsylvania Railroad Company, and to their chemist, Dr. Dudley, for spending so much time and money in order to solve an important question; nor are me less indebted to the public spirit which leads them to impart tlie experience thus gained. In Europe nothing similar has hitherto been done, either by a company or by any private individual. In England the great railway companies employ their engineers in other ways, and do not keep a chemist or specialist to study rails; bat even if they did they would probably not publish the results. The chief professional engineers are so occupied with their private practice of railroad construction generally, that they cannot be expected to devote their time and energies to so special a question. The German Railway Union has, in my opinion, missed the real object of its elaborate researches by falling into the error of specifying costly, impracticable tests for rails—tests at the same time which do not infallibly expose the impurities that may be in the rails under examination. There has, therefore, been nothing done on this side of the Atlantic in the way of exhaustive study to determine the best composition for steel rails. America should consequently have full credit for the enlightened example which she has set. I wish, however, to make a few remarks on Dr. Dudley's second paper,—& paper which follows very much upan the same lines of argument as the first red three years ago, upon which I have previously touched in my pabr on the same subject read at the meeting in August last. If Dr. Dudley had discovered a new metal he could hardly, I think, have taken wore pains to prove that he was correct in his first formula for the best chemical colnposition of steel rails. But I hare seen so much done in the way of proof by experiment that I am inclined to think that almost anything can be proved by experiments and by satnples. If Dr. Dudley would only give up his formula, which would not suit any country—not even America—

Jan 1, 1881

By B. H. Dunshee

This paper is not intended to be a technical discussion of square-set framing as used in mines, but merely a short description of the different kinds of framing that have been used in the Butte mines, and what has been decided upon, after years of practical experience, as being the best, taking into consideration the physical condition of the veins and country rock, and also the supply of timber available for mining purposes. Butte is, essentially, a square-set district. Virginia City, Nev., was the first mining camp to use this method of timbering, and to Philip Deidesheimer, who went to the Ophir mine in 1860, is given the credit of solving the problem of square-set framing, where large bodies of ore were stoped and the timbers were supposed to hold the ground from caving without any filling. That he did his work well is shown by the fact that the main features of his framing are in use to-day. In the Butte mines the conditions are such that this method of timbering is generally used. We do not, of course, depend upon the timbers any more than is necessary. The worked-out stopes are filled with waste rock as close behind the miners as possible and not interfere with mining operations. The waste rock is obtained from development work on the different levels or from the surface. In the earlier days of mining in Butte there were numerous independent companies and naturally there were different ideas as to the best way to frame the square sets, although the general features were the same. Timber was abundant for mining purposes and the common practice was to use sawed lumber, generally 10 by 10 in. or 12 by 12 in. square. Some of the mines used for girts 6 by 10 in. or 8 by 12 in. timber, depending upon whether they used 10-in. square or 12-in. square timber for posts and caps. This avoided the necessity of framiug the ends of the girts, and also required less timber for the

Jan 1, 1914

By Philip Henry

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

Jan 1, 1915

By C. Richard Tinsley

INTRODUCTION The economic analysis (Chapter 3), the engineering studies (Chapter 10), the credit structure (and the consequential funding sources) - Chapter 11, and the overall feasibility structure for any venture are all directed to determining one major decision element: How much and how certain is the reward for taking these risks? Risk assessment is a surprisingly weak area of analysis and is usually addressed in a checklist fashion. It is much preferable to deal within a risk system so that the inevitable tradeoffs among risks are correctly made. DEFINITION The first step toward risk definition must be to ascertain all of the risks to which a project or a company is exposed; otherwise one will remain ignorant of the possibility of a financially crippling loss until it occurs. (Carter and Crockford, 1974). However, simply stating what "risk" is can lead to debate. For example, risk could be (adapted from Vaughan, 1982): -the chance of a loss - uncertainty of loss -possibility of loss - uncertainty -dispersion of actual from expected results - probability of an outcome different from the one expected - possibility of an occurrence of an undesirable contingency -a condition in which a possibility of a loss exists. For the minerals industry financier, the last definition is probably the most appropriate. However, from a mineral company's point of view the definition might well include the possibility of not achieving the expected financial return. RISK CLASSIFICATION Risk identification will be readily agreed as the all-important first step. There are five major "branches" of risk classification. These are: -Statistical -Modellers -Checklist -Project Financing -Insurance The Statistical set discovered probability theory and any risk discussion soon deteriorates into a mathematical jungle (Megill, 1977; Hartman, 1976; Reutlinger, 1970; and Pouliquen, 1970).Their use of terminology tells its own story: coin toss (binomial distribution), gamblers' ruin, delphi (oracle) techniques, monte-carlo simulations, random walks, etcetera. These techniques inadequately represent the judgements necessary in an increasingly complicated and interrelated world. The risk Modellers have turned to the computer to handle these inter-relationships but soon find barriers because of "simultaneity". Certainly the computer has its uses to conduct various analyses (marketed as "sensitivity" analyses) but very often one finds that this involves changing one or two variables at a time, all other things being equal. Unfortunately, in a modern and complex world all other things do not remain equal. The statisticians will, no doubt, jump to their own defence by citing this

Jan 1, 1985

SANTA Rita del Cobre Grant, as the present Chino property was known in the early part of the nineteenth century, was the scene of the first copper-mining operations of consequence in the territory now included in the United States. As early as 1801, the mines afforded the principal supply of copper for coinage by the Mexican Government. According to an estimate made from old records by H. A. Thorne, now superintendent of mines for the Chino company, about 41,000,- 000 lb. of copper had been produced prior to 1845, when the exploitation of the native copper deposits of the Lake Superior district was started for the first time by white men. B. S. Butler, in Mineral Resources of the United States for 1913, estimated the production from Grant County, New Mexico, from 1845 to 1913, at 134,353,963 1b.-an amazingly precise figure, considering the character of the data that he must have used. As "Grant County" may be interpreted for practical purposes as the Santa Rita district, it seems fair to credit the Chino group with a production of 165,000,000 lb. of copper prior to the time when the modern operations commenced. Unlike Morenci, which, by the way, lies only about 80 miles westerly across the Arizona-New Mexico line, Chino offers no problem as to when its production might properly be classified as coming from a Porphyry Copper. The time is definitely fixed by the starting of the new mill at Hurley in October, 1911. The interval from 1903 to 1913 had witnessed little production of any kind; and prior to that time operations had been confined entirely to the mining of narrow veins or lenses of ore assaying 10 to 15 per cent copper or even more. Such orebodies frequently are encountered today, when the electric shovels, working in broad daylight, eat away rock that once was buried

Jan 1, 1933

By Kenneth Seaver

It is rather gratifying that in the field of the manufacture of refractories, in which, as a whole, foreign practice has surpassed us, the United States stands pre-eminent in the making of silica brick. In some instances European manufacturers have refused point-blank to credit the possibility of making to such specifications as are Common with us, until the actual completed shapes were shipped for inspection. But both the manufacturer and consumer in foreign lands are now frankly learning from us, and benefiting by our advanced practice in this field, as is evidenced by the orders placed here and the efforts put forth abroad to come up to the standard of American-made material. In no metallurgical operation has the employment of silica brick spread with such leaps and bounds as in the building of plants for the carbonization of coal, particularly in the byproduct coke oven. Today, in practically all types of oven, the structure above the floor level (except the facings) is of silica, while in the recuperative and in some regenerative types, its use is extended to that portion of the oven below the floor as well. By reason of the fact that there are a number of classes of refractories of higher silica content than the usual so-called fire-clay brick, there is sometimes a misunderstanding as to the class of material referred to as "silica" brick. We here refer only to a brick having a silica content of 94 per cent. or more and made usually from quartzite rock with a small percentage of lime as a binder. The term "silica" brick is sometimes rather loosely applied to brick from highly siliceous clays, or to a quartzite refractory of mingled fire-clay and quartz rock; but such products are not considered in this discussion. : Materials The rock from which practically all high-grade silica brick are made is a true quartzite or metamorphosed sandstone, variously known as

Jan 1, 1916

By Horace V. Winchell

This paper, embodying information acquired by the writer in his work in connection with the Geological Survey of Minnesota, is presented by permission of the State Geologist. Historical.—On November 16, 1890, the workmen of Captain J. A. Nichols, of Duluth, Minn., encountered in a test-pit on the northwest quarter of section 3, township 58, range 18, west of the fourth principal meridian, the body of soft ore now called the Mountain Iron mine. Hard ore, chiefly magnetic, had been known for many years on the Mesabi range, and explorations made by Mr. E. W. Griffin, of Minneapolis, near the falls of Prairie river in T. 56-24 and T. 56-25, and by John Mallmann, at the Mallmann explorations, T. 59-14, had revealed some hard hematite interbedded with quartzite and low-grade soft ore; but this was the first discovery of merchantable hematite on the range. Captain Nichols had been exploring more or less along the range for some two years. To him and to the Merritt brothers, of Duluth and Oneota, who, unshaken in Faith by the discouraging reports of explorers, miners, experts, and geologists, had persevered in the search for ore, great credit is due for the final success, and large rewards have accrued to them already.

Jan 1, 1893

By H. A. Baumann, C. C. Wright, T. S. Spicer

A LTHOUGH the efficiency of coal utilization has A improved steadily since the turn of the century as a result of continued research and development, little of this increase in efficiency can be credited to improvements in the single retort stoker. There are still numerous problems connected with the burning of coal on this type of unit, the solution of which would be a stimulus to coal and stoker sales and a boon to the user. Among the more critical of these problems is that of burning slack bituminous coal of strong caking tendency and containing large percentages of fine material. With the increased trend toward mechanical mining, it may be expected that in the future an even larger percentage of the coal available for use on this class of stokers will contain higher percentages of the fine sizes, thus aggravating an already serious problem. During the war, the problem of efficient and economic burning of available coals on the single retort industrial stoker, particularly the class 4 stokers (301 to 1200 lb per hr), became quite critical in many localities. In addition to the inherent problems associated with the use of this class stoker, the coals available were frequently not those best suited for use on this equipment and the manpower shortage made it difficult as well as expensive for the consumer to provide the labor necessary to keep the iires in reasonably satisfactory condition. Although exact figures on the number of class 4 stokers are not available, the yearly tonnages of coal consumed are of considerable consequence and have been estimated* at between 15 and 20 million the stoker research staff of the Mineral Industries Experiment Station of The Pennsylvania State College was requested to study the performance of the single retort industrial stoker and to undertake a program of research on the more efficient burning of bituminous coal on this class of unit. Various aspects of overall problem have been investigated since the inception of this program in 1942, only one of which is here reported. General Considerations There are numerous factors which appear directly or indirectly to affect the overall performance of bituminous coal underfeed stokers, such as the caking or matting properties of the coal, the contact relationships between coal and air, the ash fusion characteristics, the burning rate, and the design of the stoker and furnace in which the coal is burned. An analysis of the influence of each of

Jan 1, 1951

By D. B. Williams

For the first time in the history of the Venezuelan petroleum industry production exceeded 200 million barrels. The total production for all fields amounted to 205,430,869 bbl., which is more than 9 per cent of the world's 1939 total. This is an increase of over 15 million barrels or 8.0 per cent above the 1938 figure, which, compared with the slightly less than 2 per cent increase of the 1938 figure over 1937, shows the marked activity in Venezuela during the past year. The Maracaibo Lake fields are still the predominating factor in Venezuelan production, showing an increase of approximately 9½ million barrels over last year's figure and accounting for 71.8 per cent of Venezuela's total. Lagunillas continues to hold precedence as a single field, having yielded 47.1 per cent of the accumulative total and 39.4 per cent of 1939's total. This field showed an increase of slightly more than 3½ million barrels over 1938. Tia Juana, the second largest field, attained a record production, increasing its percentage of the Venezuelan total from 23.4 in 1938 to 23.7 in 1939. The La Rosa field, which includes Punta Benitez and Ambrosio, declined from 13.7 to 12.0 per cent; Bachaquero, the southernmost Lake field, which came into regular production at the end of 1938, contributed over 31/3 million barrels. Quiriquire, in eastern Venezuela, ousted La Rosa as the third largest producing field, and, although production increased by 11/3 milliorl barrels, percentage of the total declined from 13.2 to 12.9. Mene Grande, the oldest field, declined from 6.6 per cent in 1938 to 5.9 in 1939. Tem-blador produced for a whole year for the first time and yielded 3,647,867 bbl. The Colon district, in the Maracaibo Lake area, comprising the Tarra-Los Manueles fields, showed slight increases, as also did Cumarebo and Pedernales. Construction of the 16-in. pipe line from Oficina to Puerto La Cruz (Guanta), the longest line of this size in the world, was completed toward the end of the year and this new field in eastern Venezuela started shipping oil in December. This field is operated by the Mene Grande Oil Co. and was credited with a production of 2,347,625 bbl. in 1939. Jusepin field, some 25 miles southwest of Quiriquire in eastern Venezuela,

Jan 1, 1940

By H. A. Baumann, T. S. Spicer, C. C. Wright

A LTHOUGH the efficiency of coal utilization has A improved steadily since the turn of the century as a result of continued research and development, little of this increase in efficiency can be credited to improvements in the single retort stoker. There are still numerous problems connected with the burning of coal on this type of unit, the solution of which would be a stimulus to coal and stoker sales and a boon to the user. Among the more critical of these problems is that of burning slack bituminous coal of strong caking tendency and containing large percentages of fine material. With the increased trend toward mechanical mining, it may be expected that in the future an even larger percentage of the coal available for use on this class of stokers will contain higher percentages of the fine sizes, thus aggravating an already serious problem. During the war, the problem of efficient and economic burning of available coals on the single retort industrial stoker, particularly the class 4 stokers (301 to 1200 lb per hr), became quite critical in many localities. In addition to the inherent problems associated with the use of this class stoker, the coals available were frequently not those best suited for use on this equipment and the manpower shortage made it difficult as well as expensive for the consumer to provide the labor necessary to keep the iires in reasonably satisfactory condition. Although exact figures on the number of class 4 stokers are not available, the yearly tonnages of coal consumed are of considerable consequence and have been estimated* at between 15 and 20 million the stoker research staff of the Mineral Industries Experiment Station of The Pennsylvania State College was requested to study the performance of the single retort industrial stoker and to undertake a program of research on the more efficient burning of bituminous coal on this class of unit. Various aspects of overall problem have been investigated since the inception of this program in 1942, only one of which is here reported. General Considerations There are numerous factors which appear directly or indirectly to affect the overall performance of bituminous coal underfeed stokers, such as the caking or matting properties of the coal, the contact relationships between coal and air, the ash fusion characteristics, the burning rate, and the design of the stoker and furnace in which the coal is burned. An analysis of the influence of each of

Jan 1, 1951

By Sidney A. Swensrud

Much has been said and written about uneconomic and evil marketing practices in the oil industry, including such factors as loaning of equipment, price cutting and secret prices, commercial discounts, abuses of credit cards and coupon books, and so forth. It is not my purpose here to add to the discussion of those problems, but rather to attempt a discussion of some of the more basic factors in the general distribution economies of the industry. The economics of distribution in the oil industry cannot be regarded apart from the general economics of the industry as a whole. The attempt to regard them as separate has led many people into the fallacy of believing that the responsibility for the apparent evils in the marketing end of the business lay entirely at the door of the marketing end. Such a view fails to take cognizance of many underlying factors; we can only expect to understand the distribution economics of the industry if we understand its general economics. We must realize also that the oil industry today is essentially the gasoline industry. The oil industry may be said to have begun about 60 years ago. At the outset it was concerned chiefly with the manufacture and sale of kerosene, lubricating oils and greases. Gasoline was then a most obnoxious by-product. The early oil-marketing company was engaged almost exclusively in refining and marketing—it did not concern itself with production but bore the relation to it merely of a purchaser. It may be said that the urge of marketing development in those days, therefore, came from the refining and marketing end of the business. The raw material had not yet begun to exert its enormous pressure, nor had the producer of crude oil acquired a direct interest in the sale of the ultimate finished products. Since then great changes have taken place. With the development of the automobile came a vast new demand for the raw material from which gasoline could be made. No longer could the refining and marketing companies be indifferent to the source of that raw material, particularly in view of the pessimistic outlook then presented as to the probable quantity of oil in existence. And despite the complete overturning of those early estimates, made before the bounty of nature and the skill of

Jan 1, 1931

By Thos. W. Gibson

The object of taxation is the raising of a revenue. Unless a tax accomplishes this, it is a failure. The right to take for public purposes a part of the moneys obtained from the carrying on of private enterprises is an attribute possessed only by a lawful government, and may indeed be called the supreme attribute of government. In free, democratic communities this power must of necessity rest upon the consent of the governed. Power implies obligation, hence it is obviously the duty of a government, in framing a system of taxation, to provide one which, while effective in producing a revenue, is also just and impartial. • It will be conceded that mines and mining property ought to bear a fair share of the public expenditure. The question is, upon what basis taxation should proceed. Two separate taxing principles are usually contended for: Taxation should be proportionate to the benefits received by the person or property taxed; taxation should be based on ability to pay. A third is sometimes added, taxation should have reference to the extent and value of the natural resources enjoyed. As applied to mining taxation, it is pointed out by those who support the fist mentioned basis that, mines being usually situated in rocky and hence sparsely peopled regions, mining companies are frequently obliged to construct roads, railways, telegraph and telephone lines, schools, water and sewerage systems, and many other amenities and conveniencea of civilization the cost of which in regions better suited for agriculture, and consequently more thickly populated, has either been defrayed locally, or can be spread over a sufficiently large taxable group of people to materially lighten the financial burden on the mine. The mining company, it is argued, having made these outlays, should receive credit for them and be relieved of taxation to a corresponding extent. There may be some force in this contention, but the situation is capable of relief without attempting to place taxation upon so unworkable a basis as the value of benefits received. Who is to be the judge of these benefits, and how are they to be valued? The very existence of a mining company and its ability to carry on business in peace and security depeind on the prevalence of law and order, which is a result of good government. The state provides protection against violence, and courts of law for

Jan 1, 1920

By Thos Gibson

THE object of taxation is the raising of a revenue. Unless a tax accomplishes this, it is a failure. The right to take for public purposes a part of the moneys obtained from the carrying on of private enterprises is an attribute possessed only by a lawful government, and may indeed he called the supreme attribute of government. In free, democratic communities this power must of necessity rest upon the consent of the governed. Power implies obligation, hence it is obviously the duty of a government, in framing a system of taxation, to provide one which, while effective in producing a revenue, is also just and impartial. It will be conceded that mines and mining property ought to bear a fair share of the public expenditure. The question is, upon what basis taxation should proceed. Two separate taxing principles are usually contended for: Taxation should be proportionate to the benefits received by the person or property taxed; taxation should be based on ability to pay. A third is sometimes added, taxation should have reference to the extent and value of the natural resources enjoyed. As applied to mining taxation, it is pointed out by those who support the first mentioned basis that, mines being usually situated in rocky and hence sparsely peopled regions, mining companies are frequently obliged to construct roads, railways, telegraph and telephone lines, schools, water and sewerage systems, and many other amenities and conveniences of civilization, the cost of which in regions better suited for agriculture and consequently more thickly populated, has either been defrayed locally, or can be spread over a sufficiently large taxable group of people to materially lighten the financial burden on the mine. The mining com¬pany, it is argued, having made these outlays, should receive credit for, them and be relieved of taxation to a corresponding extent. There may be some force in this contention, but the situation is capable of relief without attempting to place taxation upon so unworkable a basis as the value of benefits received. Who is to be the judge of these benefits, and how are they to be valued? The very existence of a mining company and its ability to carry on business in peace and security, depend on the prevalence of law and order, which is a result of good government. The state provides protection against violence, and courts of law for

Jan 4, 1919

By D. B. Williams

For the first time in the history of the Venezuelan petroleum industry production exceeded 200 million barrels. The total production for all fields amounted to 205,430,869 bbl., which is more than 9 per cent of the world's 1939 total. This is an increase of over 15 million barrels or 8.0 per cent above the 1938 figure, which, compared with the slightly less than 2 per cent increase of the 1938 figure over 1937, shows the marked activity in Venezuela during the past year. The Maracaibo Lake fields are still the predominating factor in Venezuelan production, showing an increase of approximately 9½ million barrels over last year's figure and accounting for 71.8 per cent of Venezuela's total. Lagunillas continues to hold precedence as a single field, having yielded 47.1 per cent of the accumulative total and 39.4 per cent of 1939's total. This field showed an increase of slightly more than 3½ million barrels over 1938. Tia Juana, the second largest field, attained a record production, increasing its percentage of the Venezuelan total from 23.4 in 1938 to 23.7 in 1939. The La Rosa field, which includes Punta Benitez and Ambrosio, declined from 13.7 to 12.0 per cent; Bachaquero, the southernmost Lake field, which came into regular production at the end of 1938, contributed over 31/3 million barrels. Quiriquire, in eastern Venezuela, ousted La Rosa as the third largest producing field, and, although production increased by 11/3 milliorl barrels, percentage of the total declined from 13.2 to 12.9. Mene Grande, the oldest field, declined from 6.6 per cent in 1938 to 5.9 in 1939. Tem-blador produced for a whole year for the first time and yielded 3,647,867 bbl. The Colon district, in the Maracaibo Lake area, comprising the Tarra-Los Manueles fields, showed slight increases, as also did Cumarebo and Pedernales. Construction of the 16-in. pipe line from Oficina to Puerto La Cruz (Guanta), the longest line of this size in the world, was completed toward the end of the year and this new field in eastern Venezuela started shipping oil in December. This field is operated by the Mene Grande Oil Co. and was credited with a production of 2,347,625 bbl. in 1939. Jusepin field, some 25 miles southwest of Quiriquire in eastern Venezuela,

Jan 1, 1940

By Philip W. Henry

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

Jan 1, 1915