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By B. M. Loring, I. R. Krame, F. M. Walters

NO observations on the mechanical properties of man-manganese alloys have been published since pure manganese became readily available, either distilled manganese or electrolytic manganese. The purpose of this investigation was to determine whether iron-manganese alloys are essentially brittle, as reported by Hadfield,' or whether the lack of ductility observed was due to impurities in the alloys that he studied. Experimental Methods The alloys were melted in a roo-lb. high-frequency induction furnace with a magnesia crucible, using ingot iron and electrolytic manganese. The heats were split, the first giving six 18-lb, ingots and the second three. Each successive heat was higher in manganese and about 0.3 per cent silicon was added as ferrosilicon. The alloys forged without difficulty and were given a 9' per Published by permission of the Navy Department. Manuscript received at the office of the Institute June 28. 1941. Issued as T.P. 1369 in Metals Technology. September 1941. * Division of Physical Metallfirgy Naval Roscarch Laboratory. Anacostia Station Washington. D. C. 1 References are at the end of the paper. 4 cent reduction to ¾-in. rounds. The chemical analysis of the alloys is given in Table I. The forged rods were homogenized for 224 hr. at r150°C. (2100°F.) and air-cooled. The alloys were tested in two conditions of heat-treatment: (I) as normalized from 870°C. (1600°F.) and (2) normalized from 870°C. and tempered for I hr. at 540°C. (Iooo°F.) and air-cooled. The tensils specimens were 0.505 in. in diameter with a 2-in. gauge length, and the impact specimens were v-notch Charpy. The proportional limit and yield strength were taken from the stress-strain diagrams drawn by a Peters recorder. The data obtained from the tensile test and the hardness measurements are given in Table 2. Specimens that were normalized are designated by N; those that were normalized and tempered by T. Alloy G was tempered after forging (D).

Jan 1, 1942

By H. I. Young

INASMUCH as there has been a great deal of activity in this district recently, a paper of this kind should treat of all the various phases of mining, namely, prospecting, developing and operating. PROSPECTING Where ore is found it a depth of 100 ft. (30 m.) or more, the prospect work is done by churn drilling. Several makes of churn drills are used in this work, both steam- and gasoline-driven machines being used. The drilling is usually started with a 6-in. bit, and the size of the bit is reduced, if necessary, as the hole is advanced. It is general practice to drill from 100 to 400-ft. holes, but this is governed entirely by the location and formation of the ground. In drilling sheet ground, close spacing of drill holes is unnecessary, but in narrow orebodies, the holes are spaced from 15 to 50 ft. (4.6 to 15 m.) apart. Ten years ago, very few assays were kept of the drilling, but during recent years records have been kept very accurately, showing the location, elevation, assays, and also the vertical section of the hole. After the orebody is reached, cuttings are taken every 2 or 3 ft. (0.6 to 0.9 m.) samples being sometimes taken by pouring the water off the cuttings and taking a portion of the coarse material for assay. It has been found, however, that very often the sludge material poured off with the water contains high mineral values. To overcome this, cuttings from each 2 or 3 ft. are put in a container and after the water is evaporated, sample for assay is taken by means of Jones samplers. Permanent records of cuttings showing various formations are kept in glass jars or glued on large cards. Drilling at present is costing from $1.25 to $1.50 per foot. In pre-war times, the drilling costs ran from 75c to $1 per foot.

Jan 9, 1917

By G. E. Steudel

THE study of the possibility of effecting a lower cost in the manu-facture of pig iron reveals the importance of the ever present question of slag chemistry and volume. Factors that determine slag chemistry and volume are the impurities in the ore available, the ash-sulphur content of the coke, and a flux material necessary to promote removal of sulphur. Of these, the ores present by far the major source of impurities and what may prove to be the lowest practical slag volume with desired chemistry in one locality may be considered low or high in some other center of iron manufacture. The Chicago district is not only blessed with ores of high quality, but with excellent coke and flux materials as well. It is the intent of this paper to discuss slag problems at the South Works only, where burdens consist of Mesabi ores, Michigan stone, and coke ranging from 7 to 9 per cent ash and containing an average of 0.57 per cent sulphur. Early in the development of modern blast-furnace practice, the con-sideration of slags was secondary to the many adjustments of mechanical difficulties, such as furnace lines, stock distribution, stove design for obtaining higher blast temperatures, improved chemical segregation and size of raw materials. Furnace operators, after making these improve-ments, turned their attention to the study of other refinements in practice, of which slag chemistry appeared to be the most important. It is only within the last two decades that operators have become familiar with the various aspects of slag compositions. The industry, while rather slow in its recognition, is indebted to such investigators as Rankin,1 Wright,1 Feild,2 Royster,2 McCaffery,3 Kinney,4 Holbrook,5 and Joseph5, whose researches concerning the elimination of sulphur within the blast furnace and the effect of slag composition upon melting point, viscosity, and desulphurizing power have established criteria for the selection of slags of the requisite quality.

Jan 1, 1939

By Milton Williams

IT is generally recognized that fluid is lost from rotary drilling mud s to permeable strata during normal drilling operations;1,2,3 but that this fluid is the filtrate from the mud, rather than the mud itself, has been shown by various workers.1,4,5 . The presence of this filtrate in oil-bearing or gas-bearing strata is undesirable and harmful. The decreased permeability of the stratum to oil effected by the presence of water has been pointed out by several investigators,6,7 and since, in the production of the reservoir fluid, the greatest pressure drop occurs immediately adjacent to the borehole, it follows that infiltered water is particularly objectionable in this region. Again, this filtrate tends to make electrical logs less reliable, since oil in the proximity of the borehole is probably flushed out to an appreciable ent by the water.8 Observation of side wall cores may be misleading for the same reason. Drill-stem tests in low-pressure areas may be of doubtful value where no oil is recovered, unless sufficient time is allowed for production of water lost from the mud. The infiltered water may hinder drilling operations by softening shales and causing sloughing; the "tight hole" occasioned by excessive deposition of filter cake in the hole is a common occurrence. The filter cake remaining on the face of the producing formation may itself sometimes be detrimental to production.9 In view of these implications of the importance of filtration of mud, an investigation was undertaken to determine the factors involved in the infiltration process, and to correlate these in such a manner that the values obtained in routine filter tests employing a conventional filter of the "wall-building tester" type,10 together with data on size of hole, drill pipe, and rate of mud circulation, could be used to estimate water loss and distance of penetration of the filtrate into strata.

Jan 1, 1939

By Benjamin Gildersleeve

Uniquely colored, thin-bedded quartzite is quarried between Crossville and Crab Orchard in Cumberland County, Tenn. It is produced in all sizes up to the limits of transportation from beds usually ranging in thickness from less than 1/2 in. to 6 in. The stone is very resistant to wear and weathering and is marketed throughout the country for many different purposes in exterior and interior construction. The annual production exceeds 36,000 tons, valued at nearly $1,000,000.

Jan 8, 1950

By P. J. Potter

Practically all tin-base babbitt metals used in engine bearings are made to customers' specifications, which are many and varied. The copper ranges from 3 to 8 per cent. and the antimony from 4 to 13 per cent.; generally, the babbitt with lower copper content will contain from 4 to 8 per cent. antimony and that with higher copper will have from 7 to 13 per cent. antimony. The allowable lead content varies from 0.20 to 2.00 per cent. If a solder is used as a bonding material instead of tin, the resulting material in the finished bearing will have a higher lead content, but it would not be enough to bring the lead above specifica-tional limits. Impurities such as iron, arsenic and bismuth should be determined in the tin before using to insure a uniform and high-grade product. These points must be considered when segregating and grading the waste that comes from the finishing operations on lined bearings. Classification of SCRAP Because of the extremely rigid nature of most of the specifications for bearing linings it is necessary to use the purest of materials as a base for all compositions. The problem of handling secondary metals is confined almost entirely to the recovery of drosses, spills and turnings incident to the manufacturing operations. As a matter of convenience the waste or scrap may be divided into 10 grades, as follows: 1. Tin from pots where tinning operation is carried out. 2. Tin and babbitt spatters from babbitting operation. - 3. Tin skimmings combined with burned zinc chloride. 4. Borings and reamings. 5. Gates from die-cast bushings and bearings. 6. Drosses from die-cast pots, babbitt foundry pots, and pots in babbittiug room. 7. Babbitt with small amount of bronze from machining operations. 8. Babbitt and bronze borings. 9. Scrap bronze-back babbitt-lined bearings. I 10. Scrap die-cast bearings and bushings. A few of these grades of salvaged material have compositions that make it possible to determine beforehand where they may be used to

Jan 1, 1930

By R. W. Smith. Discussion by D. Watson, R. M. Manser

D. Wotson, R. M. Monser (Watten Spring Laboratory, Stevenage, Herts., U. K.) - This is a valuable and interesting paper and will make an important contribution to the development of a general theory of silicate flotation. In particular the dominance of surface reactions which produce fluosilicic acid and its ions has been convincingly demonstrated. In a paper to be published shortly, however, we offer some evidence which is not consistent with the feldspar activation theory proposed by Prof. Smith. This theory, given in Eqs. 17-20, suggests that activation takes place through the exchange of SiF6 ions for OH- at aluminum sites. This results in a negatively charged site facilitating adsorption of RNH3 Firstly, we have determined the flotation response (using the vacuum flotation technique) and the adsorption of dodecylamine on a natural feldspar (albite) and on the same feldspar after washing with perchloric acid at pH3. This pre-treatment was shown to remove surface adjacent aluminum atoms. It was found that although the acid washed feldspar floated much less easily than the untreated sample, the function of fluoride ion - giving activation over the pH range 4-6.5-was preserved. Moreover, the amount of dodecylamine adsorbed either with or without fluoride present is little affected by acid-washing, despite the depression caused by this treatment. This suggests that surface aluminum atoms can be of little importance in the fluoride activation mechanism. Secondly, we have determined the changes in solution concentration of F- and H+ (or OH-) accompanying reaction of the surface with fluoride ion. The ratio of H+ lost from solution to F- lost is high, ranging from 6.9 at pH4 to 1.0 at pH 7.5. This is consistent with reaction of HF (6 molecules for every Si removed) at the surface, producing SiFi-ions, but not with the re-adsorption of these ions.

Jan 1, 1967

By H. R. Hanley

IT is a well-known fact that the solubility of zinc compounds decreases when these compounds are roasted in contact with iron compounds, but descriptions of tests to quantitatively express the fact have not appeared in the literature. Possibly such an expression cannot be uniformly and exactly duplicated by different operators because of the variation in the personal equation. In a general way, however, the reactions between zinc compounds and iron compounds under roasting conditions will show a certain trend with changing conditions and the approximate quantitative expression of this trend appears reasonably well established by experimental work conducted for this purpose. Ferrites and Marmatites The name "ferrite" has been given to the compound of zinc and iron which has the formula Zn0.Fe203. Among the questions pertinent to this subject are those involving inherent or natural ferrite, and also the synthetic or artificial variety. The inherent or natural product is formed when the mineral containing iron and zinc sulfides isomorphously crystallized is subjected to oxidation at roasting temperature. These isomorphously crystallized minerals are known, mineralogically, as marmatites, and contain ZnS and FeS in ratios of 2 to 1 up to 5 to 1 respectively. The zinc and iron sulfides form a definite mineral. They are firmly attached to each other and form common contact planes through which diffusion of the entities occurs during the roasting process. This diffusion of the molecularly intimate entities produces, during roasting, the compound referred to as ferrite, in proportion to the amount of iron originally present in the marmatite. For example, a marmatite from British Columbia containing 9.739 per cent. Fe and 56.87 per cent. Zn corresponds with the mineral having the formula 5ZnS.FeS. The ferrite produced in roasting, which has the formula ZnO.Fe203, contains 27.07 per cent. Zn and 46.40

Jan 1, 1929

By T. Wasson

Midland and Isabella counties have been the centers of activities for the year 1932. The major part of the 6,967,000 bbl. produced during the year was obtained from the old Mt. Pleasant field and the Eastern Extension field. The total production to the end of 1932 for Michigan, from all fields since discovery, is 20,679,600 bbl. Production in the Eastern Extension field was obtained from Dundee limestone of Devonian age, at a depth of about 3600 ft. As a result of the year's activity in this area, the limits of the Eastern Extension have been defined. No new fields have been discovered. A number of prospective areas have been drilled and condemned by dry holes. Probably the most outstanding development of the year was the discovery of oil on the Yost farm, in sec. 35 of Greendale Township, Midland County, by the Pure Oil Co., in the early part of December. Production is from the Dundee limestone similar to that in the Eastern Extension but is 4 miles south of that area. The first well has averaged about 500 bbl. per day since completion. It is near the center of a solid block held by the Pure Oil Co., so that rapid development due to competitive drilling is not expected. During the early part of the year the Midland-Isabella area was under proration, but on May 17 proration restrictions were discontinued and remained so until the end of the year. While the Eastern Extension saw the principal activity, some work was done in other fields of Midland and Isabella counties, but very little new production was added. The Vernon field on the north showed a slight increase in production over 1931. The Leaton field decreased. The well in Porter Township, Midland County, is still kept in the production ranks but very little drilling was done in that area. The old Saginaw field, Saginaw County, still remains the only spot in the state where commercial production is obtained from the Berea sand. It showed a slight decline over 1931 with no new producers for the year. The Muskegon field on the west side of the state showed a considerable decline over 1931, but owing to the rejuvenation of some wells by the use of acid this drop was not as great as might have been expected. Only two new producers were drilled in that area.

Jan 1, 1933

By Charles Fulton

This paper describes experiments carried on at the Case School of Applied Science, together with their results. Their success led to the design of the larger furnace herein described, but which has not been built. A PREVIOUS article' by the authors contained a general description of the new roasting furnace herein described but it did not go into detail as to the metallurgical behavior or the results obtained. Believing that such information would be of great value, they have elaborated on the subject and have given many unpublished details. The furnace described applies the principle of roasting finely divided zinc-sulfide ores, now produced in large quantity by the flotation process, in gaseous suspension; that is, the ore particles are carried, in suspension, in a current of air and gaseous products of the roast. The relatively great fineness of flotation concentrate presents difficulties and problems of roasting in furnaces of the ordinary type; the fine ore is forwarded through the furnace in the form of a shallow bed and its very fineness leads to dense impervious bedding which prevents oxygen from reaching the interior of the bed, thus unduly lengthening the time of roasting and preventing the elimination of the last of the sulfur. The fineness of the concentrate, normally, should lead to a rapid and complete roast, for the speed of roasting is a function of the surface exposed to oxygen, which surface is greatest, per unit of weight, in very fine material. The difficulty in bed roasting is to get the oxygen to the particle. If the fine ore, during the roasting, could be freely suspended in oxidizing gases, full advantage could be taken of the great surface conferred by its fineness. This fundamental idea, of course, is not new, for the Stedtefelt furnace, familiar to the older metallurgists, is an example of it; but the manner in which this is accomplished may be new.

Jan 10, 1924

By E. C. Bitzer

THE primary object of the work described in the following pages was to simplify the equipment in the separating circuit of the heavy-media process by substituting a spiral classifier for the separatory cone. Mechanical considerations were the leading attraction and the best that was hoped for on metallurgical performance was that the new vessel would give results equal to those obtained by conventional equipment. Tests have demonstrated in commercial operation on iron ore that the mechanical advantages of the spiral separator are about as predicted; also, the metallurgical performance is superior to the cone on the ores treated. Treatment of iron ore involves the separation of two products: a concentrate that sinks and a float product that contains true float material plus a controlled division of interfering middling. The middling material is heavier than the average specific gravity of the separating medium. Recent work with the spiral separator on Tri-State zinc ore showed that the middling material had to be recovered as concentrate because this fraction contained the bulk of the-zinc in the ore. It has been demonstrated that it is possible to make three products with the new separator on an ore such as this: a float tailing, a float middling, and a high grade heavy sink product. It appears from this last work that the new separator has definite mechanica1 and metallurgical advantages over any type of separating cone for treating feed that contains large amounts of material of a specific gravity close to that of the separating medium. However, either type of separator should perform equally well, metallurgically, on feed that is free of middlings. Each series of experiments with the spiral separator as required additional work to fully develop the possibilities of the machine. For this reason the paper is divided into chronological parts. History of Development A drag-type classifier was first proposed as a substitute for the cone separator by Butler Brothers technicians during the initial tests with galena medium at Crosby, Minn., in 1937. The desire for finding a substitute for the cone arose from trouble with interfering middlings and certain operating disadvantages of the cone. The possibility of using a spiral classifier was also suggested at this time by Emmett Butler and C. J. Abrams. However, inability to satisfactorily recover fine galena, which was used as a medium, terminated all development work at Crosby. During the winter of 1937--1938 investigation started on magnetic medium with concurrent s development of the inverted or closed- top cone, which was found necessary to eliminate iron-ore middlings with the float product. About

Jan 1, 1947

We regret to advise that, owing to unusual pressure of business at our printers, Volume TAX will not be ready for distribution so early as was announced in the last Bulletin. It will probably be distributed in November. Volumes LVII and LVIII were mailed during the month of August to all members whose dues were paid on Aug. 1; members who failed to receive their Transactions within a reasonable time are requested to notify the Secretary. In the case of members who have recently changed their addresses, the Transactions Were sent-to addresses on record on Aug. 19; those who did not notify .us of change of address until after Aug. 19 will find their Transactions at the old address.

Jan 10, 1918

By Guy R. Johnson

In working brown iron-ore mines on the system employed at Longdale, namely, stoping from the top down, the usual procedure is to drive a succession of upraises from the lowest adit to the highest, or to the top of the deposit, as the case may be. These up-raises are usually driven 120 feet apart., along the strike of the vein,. As the work goes on, they are connected by levels, 10 feet spa* (vertically), and then serve as chutes. A transit is useless in surveying these chutes, and the writer has for several years made use of a hanging compass. The method of using this instrument, described in a former paper (Trans., xx.,.105), embracing as it does the use of a cord and several strips. of wood,

Jan 1, 1894

By R. T. Rometti, C. A. Bossard

INTRODUCTION Whenever a new mining property is developed or a new concentrator is built, considerable time, money, and planning are invested for the exploration, engineering, and construction of the required facilities. Yet, when these facilities are ready for startup, all too often insufficient time, money, and planning are invested in this critical phase of the project. Failure to plan for this phase results in untimely personnel mobilization, insufficient operator training, and inadequately prepared budget estimates, which combine to create excessive costs, lack of communication, unclear responsibility divisions, unnecessary delays, and poor production levels. Insufficient or excessive leadership, due to unclear assignment of responsibility, results in irrevocable problems within the startup team. A carefully planned and budgeted startup phase can avoid many of these problems. SCHEDULING A key element in properly planning the startup phase lies within the area of scheduling. Once the schedule has been established, planning can be greatly simplified through the expansion of each specified item. The overall project schedule should specify the date when the startup and initial operating management team will be brought onto the project. This team should be mobilized at least two years prior to the anticipated startup date, to allow sufficient time to begin to plan, assemble the startup groups for the various areas of the plant, initiate a workable communications system, and implement the development of the training program. This team is responsible for the preparation of a startup schedule, which would detail the dates for all key items associated with this phase of the project. These key items would include training program development, personnel hiring dates, prestartup plant checkout, etc.

Jan 1, 1982

By Henry J. Kaiser

A few months ago I had the honor of addressing the Society of Mining Engineers annual banquet in Sun Francisco. I have since been asked to amplify some of the remarks I made at that time concerning the management policies of the Kaiser organization and various aspects of our corporate thinking. This is a difficult task for an insider like myself. I look at the different companies, and the men who run them, and it is hard to think of these men in terms of policy or procedure. Actually I prefer the term management philosophy to either policy or procedure. My father, Henry J. Kaiser, is not only the founder but the guiding spirit of our organization. His philosophy, and in turn that of the organization, centers around two concepts, service and accomplishment.

Jan 1, 1960

By J. F. Smith

ELASTIC constants of yttrium and eleven of the rare earth elements have been measured. This has been accomplished by measuring the propagation velocities of ultrasonic pulses. The velocity measurements were made by noting the elapsed time between an applied pulse and the appearance of successive echoes. The pulse-echo technique has become relatively common, and the basis of the measurement is outlined in several standard tests, e.g., Heuter and Bolt.1 Two important assumptions are made when using this method for the determination of elastic moduli. First, the pulse is assumed to propagate as a plane wave. To justify this assumption, the cross section of the test specimen should be large compared to the wave length of the transmitted pulse. For these measurements on the rare earth elements the minimum cross section wave length ratio was about 20. A second assumption which must be made when using polycrystalline specimens is that the grains are sufficiently numerous and randomly oriented so that the specimen may be approximated as elasti-cally isotopic. The grain size in the as-cast specimens which were used is believed to be sufficiently fine for this approximation, and the degree of preferred orientation is believed to be small. Supporting this viewpoint is the fact that elasticity measurements by the pulse-echo technique on as-cast specimens of other metals give results which are in satisfactory agreement with values obtained by other techniques. Hence, it is believed that the measured elasticity values for the rare earth elements are not apt to be seriously in error due to the assumption of elastic isotopy. The apparatus used in this determination was a modified Sperry Reflectoscope with a precisely calibrated time base circuit. Piezoelectric transducers were used both to generate the pulse and to detect the echoes. X-cut quartz crystals were used for the longitudinal modes, and Y-cut quartz crystals were used for the shear modes. Frequencies of 2.25 and 5 megacycles per sec were employed. Most of the specimens were 2.5 to 5.0 cm in length. Results Table I is a tabulation of the measured propagation velocities of longitudinal waves and of shear waves, together with densities obtained by Sped- ding, Daane, and Herrmann2 from lattice parameter measurements. The shear modulus, Poisson's ratio, and Young's modulus were calculated from the data in Table I through use of the following relationships: µ = pv32 [1] s=2-(vb/vs)2/2[1-(vb/vs)2] [2] and Y= 2µ(l+s) [3] where s is the shear modulus, Y is the Young's modulus, s is Poisson's ratio, p is the density, V0 is the longitudinal wave velocity, and v, is the shear wave velocity. The calculated quantities are shown in Table 11. Compressibility values can be computed from the relationship and the computed values may be compared with measured values obtained by Bridgman.8 Table III lists the data for such a comparison. The agreement is satisfactory, being particularly good for neodymi- um and gadolinium, poor for samarium, and intermediate for the other elements. Some variation is expected since Bridgman's measurements are isothermal, whereas the present measurements are adiabatic. In addition there may be some effect due to small variations in purity. Though most of the rare earth metals measured by Bridgman and all of the metals used in the present measurements were prepared at this laboratory, minor purity variations might exist since the samples came from different lots. Also, any imperfections such as dislocations, vacancies, voids, grain boundaries, microcracks, etc., should contribute to the volume change of a com-

Jan 1, 1958

By R. L. Vaughn, A. G. Moon

In 1972 a major renovation of the flotation and regrinding circuits was completed at Kennecott Copper Corporation's Chino Mines Division concentrator at Hurley, New Mexico. At that time a new lime distribution and control system was placed in operation. Lime is used to depress pyrite, and flotation at a high pH or alkalinity is required for optimum recovery of principal copper minerals, chalcopyrite and chalcocite with good rejection of the pyrite. Regrinding is also required to liberate chalcocite, much of which occurs as intimately associated chalcocite-pyrite middling grains. Accurate control of the lime addition is necessary to obtain both optimum metallurgy and minimum lime usage. At low pH levels, flotation cell control is difficult due to excess froth, but excessively high pH levels can go unnoticed because froth characteristics do not change from those experienced at the desired pH. With manual control of the lime addition, the desired pH can be exceeded for periods of up to two hours. Test Work Plant test work on a lime control system using conventional pH probes gave disappointing results with high electrode maintenance and poor control characteristics. For example, the rougher flotation cells are operated at a pH between 11.4 and 11.6 and the probes required cleaning at least once a day, and occasionally every shift. These high maintenance requirements were considered unreasonable for a plant-wide system using six or more control loops.

Jan 1, 1979

By Joseph E. Pogue, F. G. Coqueron

Prior to 1934, published information covering expenditures by oil companies for properties, plant, and equipment and the residual investments in the various segments of the petroleum industry was not readily available. This paper presents an analysis of the funds invested by a selected group of oil companies during the years 1934 through 1942, based on an extensive study of the individual records of 30 oil companies. The sources, disposition, and characteristics of the capital employed by this group of companies are traced through a series of combined statements and appropriate charts, covering financial and operating data. The analysis of these statements not only constitutes a record useful for comparative purposes but also serves as a basis for a number of broad conclusions, as follows: 1. The petroleum industry generates the capital needed for its expansion almost entirely from its own operations and is therefore a singularly self-contained economic unit. 2. The long-term debt contained in the financial structure of the industry is small relative to the total capital employed, is less than the net working capital, and has increased but slightly during the period under review. 3. The capital expenditures of the group of 30 oil companies for 9 years amounted to 6.1 billion dollars, 58.3 per cent of which went into crude-oil producing facilities. The trend of this segment of expenditures has been downward since 1937. In 1942, expenditures for refining facilities increased sharply and for marketing facilities declined drastically. 4. The net working capital of the group increased 380 million dollars over the period, and the industry is in a favorable position of liquidity. The ratio of combined current assets to current liabilities was 3.21 at the close of the period. 5. The net income of the group displayed an upward trend for the period but with rather sharp cyclical fluctuations. 6. In 1942, Government funds entered the industry for the first time in substantial amounts and were utilized for the provision of war facilities needed for emergency use. 7. The group has paid out a relatively low percentage of net income in the form of dividends. For the period the average was 55 per cent of net income. 8. The rate of return on invested capital for the group averaged 6.4 per cent for the

Jan 1, 1944

By Joseph E. Pogue, F. G. Coqueron

Prior to 1934, published information covering expenditures by oil companies for properties, plant, and equipment and the residual investments in the various segments of the petroleum industry was not readily available. This paper presents an analysis of the funds invested by a selected group of oil companies during the years 1934 through 1942, based on an extensive study of the individual records of 30 oil companies. The sources, disposition, and characteristics of the capital employed by this group of companies are traced through a series of combined statements and appropriate charts, covering financial and operating data. The analysis of these statements not only constitutes a record useful for comparative purposes but also serves as a basis for a number of broad conclusions, as follows: 1. The petroleum industry generates the capital needed for its expansion almost entirely from its own operations and is therefore a singularly self-contained economic unit. 2. The long-term debt contained in the financial structure of the industry is small relative to the total capital employed, is less than the net working capital, and has increased but slightly during the period under review. 3. The capital expenditures of the group of 30 oil companies for 9 years amounted to 6.1 billion dollars, 58.3 per cent of which went into crude-oil producing facilities. The trend of this segment of expenditures has been downward since 1937. In 1942, expenditures for refining facilities increased sharply and for marketing facilities declined drastically. 4. The net working capital of the group increased 380 million dollars over the period, and the industry is in a favorable position of liquidity. The ratio of combined current assets to current liabilities was 3.21 at the close of the period. 5. The net income of the group displayed an upward trend for the period but with rather sharp cyclical fluctuations. 6. In 1942, Government funds entered the industry for the first time in substantial amounts and were utilized for the provision of war facilities needed for emergency use. 7. The group has paid out a relatively low percentage of net income in the form of dividends. For the period the average was 55 per cent of net income. 8. The rate of return on invested capital for the group averaged 6.4 per cent for the

Jan 1, 1944

PRESIDENT ARTHUR DWIGHT District 0 NEW YORK, N Y PAST PRESIDENTS EDWIN LUDLOW District 0 MINNEAPOLIS, MINN HERBERT HOOVER, District 4 WASHINGTON, D C FIRST VICE-PRESIDENT JVC REYNOLDS NEW YORK, N Y

Jan 1, 1923