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By John V. Beall, John Cameron Fox

Organization In 1948, the Committee on Divisionalization and Publication Program of AIME, known as the Johnson Committee, recommended the reorganization of the Institute into three branches, Mining, Metals and Petroleum. This recommendation was accepted and the new organizational structure was implemented in Jan., 1949. The Mining Branch, at the time of the formation, had three divisions: the Coal Division formed in 1929, the Industrial Minerals Division (IndMD) dating from 1935, and the Minerals Beneficiation Division (MBD) formed in 1948 from the Milling Methods Committee, which had existed for many years. There did not exist, however, a division for the geologists and mining engineers. From the time of the founding of the Institute, this group was the main stem of AIME and never felt the need to segregate. The disciplines of mining and geology were served by a number of technical standing committees of AIME. With the birth of the new Branch, a new Division, the Mining, Geology and Geophysics Division (MGGD) was formed, completing the divisional structure of the Mining Branch and providing a home for all members. The governing body was the Mining Branch Council, with two members from each Division of the Mining Branch and one each from the Mineral Industry Education Division and the Mineral Economics Division. These last two divisions served all three Branches of AIME. The Division is such an important unit in the organization structure that it is of value to explain that it appoints committees to handle pro- grams, publications, and awards - representing the main functions of the Institute - as well as many others. There is enough flexibility in the organization so that each Division may have its own special committee structure as long as primary functions are provided. The past is indeed prologue to the future, for in 1957 the Johnson "Branches" gave way to the Fletcher "Societies." The Fletcher Committee, in 1958, recommended a new reorganization into Societies, each with the authority to administer its own finances and to designate certain officers and directors to the AIME Board. The date on which the Society of Mining Engineers was formed in Feb., 1957, has become known as "R" Day. A smooth transition from the loose Branch structure to Society organiza-

Jan 1, 1971

By John Chipman, K. C. McCutcheon

To a very large extent the quality of a mild steel ingot is determined by the manner in which it is poured into the ingot mold and its behavior during the first few minutes after it has been poured. The formation of the solid rim of metal around the periphery of the mold, the effervescent action of the liquid steel within this solidified rim and the upward or downward movement of the metal level are indications of what is going on beneath the surface of the liquid metal, especially at the interface at which solidification occurs. Observation of this "rimming action" enables an experienced observer to predict the thickness of the sound skin of the ingot and the location and extent of cavities or "blowholes" caused by entrapment of gases. The control of rimming action at the hands of a skillful steel pourer is a vital part of the control of quality in mild steel sheet, and the behavior of the liquid steel during the rimming period is a useful criterion of the melting and refining practices employed in the open hearth. The behavior of rimming steel during solidification depends primarily upon the evolution of gases from the molten metal and it is therefore a problem of considerable interest to determine the nature and amount of the gases evolved. A number of attempts to determine either the amount or the analysis of the evolved gases have been reported. Klinger,1 in 1925, analyzed the gases extracted from rimming, semikilled and killed steel ingots and found that the chief constituent of the rimming gas was carbon monoxide. The relatively large amounts of nitrogen reported in his first few samples may have been due to incomplete removal of air from the gas-collecting mechanism. McKune2 reported similar studies of rimming ingots from which surprisingly large proportions of nitrogen and hydrogen were evolved. Ameen and Willners3 determined both the amount and composition of gases extracted from unkilled ingots with the aid of diminished pressure. . Their ingots weighed only 80 kg. (176 lb.) and apparently were solid within two or three minutes, so that their

Jan 1, 1938

By E. M. Wise

PLATINUM and palladium are the most generally useful, most ductile and least rare members of the platinum family. They have many impor-tant applications in the pure state but for other applications it is fre-quently desirable to harden them and otherwise modify their properties by alloying small amounts of the other platinum group metals with them. These alloys are frequently required to withstand very drastic forming operations and to possess certain mechanical properties to fulfill specific requirements. For these reasons a knowledge of the tensile properties and annealing characteristics of pure platinum and palladium as well as their more useful commercial alloys is important to the user, and the fabricator. The present work was undertaken to fill this need. Rather brief (5 min.) annealing treatments were employed to render the data of maximum practical value and all tests were conducted upon 0.050-in. dia. wire, initially reduced 50 per cent in area by cold drawing, for the same reason. CONCLUSIONS 1. Pure (thermocouple grade) platinum reduced 50 per cent by cold drawing exhibits the following tensile properties: ultimate tensile strength, 36,000 lb. per sq. in.; proportional limit, 27,000 lb. per sq. in.; elongation, 2.5 per cent in 2 in.; reduction in area, 95 per cent. When fully annealed by treatment at 1100°C. its properties are: ultimate tensile strength, 20,700 lb. per sq. in.; elongation, 30 per cent in 2 in.; reduction in area, 93 per cent.

Jan 1, 1934

By Clyde E. Williams

Estimates indicate a life of known Lake Superior iron ore reserves of 20 to 30 years. Although some believe the future ore supply will come from foreign sources and will be brought to interior points via the projected Great Lakes-St. Lawrence waterway, and others fear a displacement of the interior steel-producing districts to the Atlantic seaboard, the author has faith that American engineering skill will make possible the use of lean ores from the Lake Superior district. Three general types of Lake Superior ores and ore formations, that represent possible reserves and require beneficiation, are: (1) the wash ores of the western Mesabi range, (2) the partly leached hematitic formations, and (3) the oxidized but largely unleached iron formations. The total tonnage represented by (1) and (2) is not large, but the recovery of iron from present washery tailings would bring on the market the equivalent of nearly one million tons of wash ore, annually. Group 3 comprises the magnetic iron formation of the eastern Mesabi range, the hematitic formations including the taconites of the Mesabi range, and the iron formations of all the other ranges. These formations represent our future supply of iron ore. Their treatment requires intensive research because the bulk of the iron oxide and silica minerals exist in a finely disseminated condition. The possibilities of the adaptation of tables, oil flotation, and other processes warrant extensive study. Cheaper method of agglomeration of the concentrate is essential. Recent developments in better preparation and sizing of blast-furnace charges indicate that substitution of agglomerated ore for fines will increase furnace efficiency and output. If agglomerated beneficiated ore can be shown to rate a per-unit premium for iron contents over the base rate or a premium for structure, the payment of these would greatly assist in enlarging our iron ore supply. Since present methods of taxation of ore reserves, which encourage the rapid depletion of rich ores, will result in using up our rich ores and later on putting domestic producers at a disadvantage in competing with' foreign producers, it would seem highly provident to conserve our rich ores and to increase the use of beneficiated ores as soon as possible.

Jan 1, 1931

By John L. Boardman, C. W. Goodale

The motives behind the organization of the Bureau of Safety were twofold. First, there was the policy of the company toward its employees, which was one of fairness and consideration for their welfare and which entails the prevention of injuries; second, in order to prevent injuries, a study of their causes was essential, and this study could be made only by a thorough systematic classification of accidents, which required a special department to form and carry out the plans. The Bureau of Safety was organized to begin operation Jan. 1, 1914, hut practically all of the first year was spent in collecting data, making plans, etc. This department is semi-independent of others and reports directly to the president and general manager. It consists of the president of the company and the managers of the following departments: Mines, Washoe Reduction Works, Great Falls Reduction Works, Coal department, lumber department, B. A. & P. railway; and the chairman of the Bureau of Safety. Working under this group is the General Safety Committee consisting of the manager of mines, as chairman, the general superintendent, two assistant general superintendents, and the heads of the following departments: mechanical, geological, purchasing, sampling works, and framing plant; and also the safety engineer. Operating under the General Safety Committee are the group safety committees, consisting of the Anaconda group of mines, Boston & Montana group of mines, zinc group of mines, Washoe reduction works at Anaconda, B. & M. reduction works at Great Falls, coal department, lumber department and the R. A. & P. railway. Each of these group safety committces was in charge of the superintendent or manager of the group represented and the committee consisted of the foremen of the mine's or works that the committee served, as well as the safety engineer. These foremen and superintendents had met regularly for the purpose

Jan 1, 1923

By H. S. Gipson

A process that has come to be known locally as "multistage stabilization" has been developed in the Haft Kel field of the Anglo-Iranian Oil Co. in southwest Iran, for the recovery of casinghead gasoline. It consists in releasing the dissolved gases from the crude by stages, a practice common in many fields, but which, so far as is known, has nowhere been carried to the extent to which it is employed in Iran. It has been in use there for nearly nine years, during which time some 200 million barrels of crude have been handled by the process. This process of gasoline retention consists in preventing the greater part of the casinghead gasoline hydrocarbons (the butanes and pentanes) from ever leaving the crude, instead of allowing them to be vaporized and then recovered from the lighter gases by the usual compression or absorption processes. Its efficiency is fully equal to that obtained by the absorption process; its disadvantage is that it increases the quantities of ethane and propane in the crude sent to the refinery, but with the growing demand for propane this drawback is vanishing. When casinghead gasoline is recovered as a separate liquid in the Iranian fields, it is blended with the crude, as the only outlet is through the refinery, and the crude-oil pipe line offers the cheapest means of transportation. It is under these conditions that the retention of the butanes and pentanes in the crude by multistage stabilization is a most attractive process, possessing as it does the following advantages: (1) extreme simplicity, (2) low first cost, (3) easy installation! (4) practically 100 per cent operating-time efficiency, (5) no operators required, (6) no water or other services required, (7) negligible maintenance, (8) once established, very little routine testing is necessary. The one essential for reasonably efficient multistage stabilization is that the flowing pressures of the wells should be relatively high; i.e., they should not be less than about one-third the saturation pressure of the crude in the reservoir. This is a very general statement, of course, and much depends on the type of crude and its temperature.

Jan 1, 1940

By Will H. Coghill

In this investigation, the low-grade red iron ores of Alabama were examined by the use of "heavy solutions."' Ores are generally ground preparatory to concentration and as long as the concentrators make suitable products the effectiveness of the grinding is likely to be unquestioned; but when suitable products are difficult to make, an investigation becomes imperative. In such a case a dissection of the ore might be made to find the cause of the trouble. Such a condition of unsuitable products exists in the low-grade red iron ores of Alabama. They are difficult to concentrate. To be sure it might be said that the concentration of iron ores is a new thing and that the ore-dressing methods are undeveloped, but a glance at the industry reveals an abundance of methods and devices for almost all imlaginable conditions. Concentrating machinery has not been tested in this investigation. When the properties of the ores have been gleaned, the machinery may be used more effectively. Alabama Low-grade Red Iron Ores The Bureau of Mines has undertaken by laboratory methods to select the best means of concentrating the low-grade iron ores of Alabama. These ores constitute the parts of the ore bed left by selective mining. If more of the ore bed could be included in the current output, the mining cost would be reduced and longer life of the district would be insured. This advantage would be reflected by added permanence of churches, homes, schools and every undertaking in the commonwealth. The red ores chosen for this study of effectiveness of grinding are too low in lime to meet the requirements of the blast furnace. If lime is

Jan 1, 1927

By H. W. Gillett

Many of the parts of motor cars, aircraft, etc., that require strong light construction, hence must be made of high-quality steel, are stressed to the maximum limit only in a very small volume. In parts subject to bending stress a line or even a point may take the maximum stress. A series of endurance tests under repeated bending in progress in the U. S. Bureau of Mines laboratories, like similar tests by other investigators, has shown the great difference in life of sister bars of the same stecl, handled in the same way and tested at the same nominal stress. It is known that a surface notch or scratch greatly increases the local stress over the nominal calculated stress; internal notches, such as those formed by inclusions or sonims, probably have a similar effect. From the tetss made by the Bureau of Mines, the cleanliness of the steel at the dangerous section, or point of maximum stress, seems to be one of the most important factors in determining the life of the piece. The more localized the stress, the more does chance, rather than the average properties, dctermine the life of the steel. The usual test, a tension test of a bar taken longitudinally, is not sensitive to the local drop in strength (or tendency to increase the true local stress over the nominal) because of inclusions, which probably have a more injurious effect in hard heat-treated steels, such as must be used when great strength is sought, than in softer steels. Users of steel who make transverse tests find surprisingly low ductility on transverse bars of dirty steel, though the longitudinal tests may be good. Bending tests, reverse bending tests, and notch-bar impact tests,

Jan 1, 1923

Occasionally it is interesting, and sometimes useful, to review the past for early references to our industry, and to learn of the trials and travail passed through before it arrived where it now is - and the results of such a review follow. Some time ago one of our modern playwrights and poets, Arthur Guiterman, turned to coal, with the following result : Afar in the Carboniferous time I grew in Paleozoical slime, A lepidodendron with boughs on my stem And lepidostrobusea grew out of them. My roots in the mud of the ages I spread And up to the heavens I vaunted my head, I throve in the heat of tropical sun, And now I am coal at two dollars a ton.

Jan 1, 1935

By T. D. Yensen

If the question should be asked at this time: "Does pure iron have allotropic transformations?" the reply would necessarily be, "We do not know." And it is doubtful whether anybody, anywhere, is in a position to make any other reply at this time, for the simple reason that pure iron has not yet been made and tested. The nearest approach to it contains either an appreciable amount of carbon or else an appreciable amount of oxygen (a few hundredths of a per cent.). But why be con-

Jan 1, 1929

By M. Muskat, R. D. Wyckoff

The general problem of the simultaneous movement of water and oil in a connected sand is of considerable practical interest from two points of view. First, there is the situation usually described as "edge-water encroachment." Here the water in the sands contiguous to and flanking the oil sand begins to enter the latter as the oil is removed and the reservoir pressure declines. The physical questions involved concern an understanding of the mechanism of the advance of the water and its control, so as to aid the oil recovery rather than to hinder it. In so far as the entry of the water into the oil sand means at least the partial replacement of the oil from the region of the encroachment by the advancing water, it is quite appropriate to consider this type of situation as one of natural water-flooding. For the present discussion, however, we are primarily interested in the problem of artificial flooding. Here the water is deliberately injected into the oil sand with the intention of displacing the oil and removing it through prearranged output wells. For the practical development of such a procedure rather large areas are included in the flooding program and the injection and output wells are arranged in regular patterns or networks, which are felt to be most favorable for a high oil recovery. Although remarkable success has already been obtained in such flooding programs, especially in the Bradford field of Pennsylvania, essentially by the application of the lessons of practical engineering experience, a more thorough physical analysis of the problem appeared to offer promise of leading to results of some interest and value. Another phase of the problem, which stimulated both the experimental and mathematical analysis, is that it is susceptible in large measure to empirical field tests. It, is in itself but an example and illustration of the general theory of the flow of dead (gas-free) liquids through porous media, in which the authors have been interested for the last several years. From the point of view of its applicability to actual petroleum technology problems, however, water-flooding is a particularly favorable

Jan 1, 1934

By Thomas F. Donnelly

The Province of San Cristobal is situated on the south side of the island of Santo Domingo about 25 miles west of Santo Domingo city, the capital of the republic. The copper mineraliza,tion is found about 8 miles north of the town of San Cristobal,. in the section known as Bucaro Hill; in San Francisco Hill; on the Nigua River; and on the Jaina River. The district is reached by automobile from Santo Domingo city over an excellent road for 25 miles to San Cristobal, and then, by horseback 6 or 8 miles up the Nigua River to what is locally known as "Camp

Jan 1, 1916

By Richard Pearce

I am deeply sensible of the honor you have conferred on me in electing me your president for this year. It is difficult to understand why I have merited such distinction at your hands, except that I may possibly have helped, in some small way, in the develop ment of metallurgical practice in the West. I fear, however, that I shall fall far shirt of the expectations you may have in regard to my fitness for such a position. The responsibility of preparing an address for this occasion has caused me considerable thought and anxiety. Unlike my predecessors in office, many of whom have dealt in their presidential addresses with subjects covering a wide field, which they could survey with the confidence born of their own extensive knowledge, I have been confined by my experience, during the last twenty-five years, almost wholly to that portion of metallurgical science which bears especially on the treatment of gold and silver. Yet perhaps some sort of general review of the progress of this branch of metallurgy in the West, besides being the contribution I feel myself best qualified to offer, may prove acceptable to many of the members of the Institute. Some few of the gentlemen present will remember the crude condition of metallurgical practice as it was conducted in Colorado only twenty-five years ago. My own personal experience covers a period of eighteen years; and during this comparatively short time I have seen the most astonishing changes in the conduct of metallurgical works. In all probability the marked progress which this country has exhibited could hardly be reached anywhere else, and this result has been achieved mainly by the activity and enterprise so characteristic of the men of the West. The first little successful attempt at smelting made at Black Hawk, in 1867, by Ex-Senator N. P. Hill, representing the Boston and Colorado Smelting Company, proved a great boon to the miners,

Jan 1, 1890

By C. H. Herty

The elimination of metalloids in the open-hearth process depends on oxidation of the metal by diffusion of FeO from the slag (or absorption of FeO by the metal), with subsequent reaction between dissolved iron oxide and the metalloids carbon, manganese, phosphoms, and silicon. During an investigation on deoxidation with silicon, data on rate of oxidation of the metal were obtained, and these combined with certain other information, are presented here in an attempt to show the fundamental principles governing the diffusion of FeO from slag to metal. Inasmuch as the aim of the investigation was not a study of diffusion, certain data are lacking and it has been necessary to make assumptions on metal viscosity and effect of temperature on diffusion. These factors are known to exert a considerable effect on diffusional processes. Overoxidation, or supersaturation of the metal with iron oxide, is not taken up in this paper. Overoxidation has little effect on diffusion except under a few special conditions, and the discussion has therefore been limited to diffusional processes. Though the results given in this paper should be regarded as preliminary, certain of the conclusions drawn are definitely applicable to any steelmaking process. Previous Study of Absorption An extensive study of absorption has been made by the Department of Chemical Engineering, Massachusetts Institute of Technology. The results are of such direct interest in the problem of slag-metal reactions that it is feIt worth while to summarize them here. The following quotations are from Lewis and hitmman.1 The reader need simply substitute "slag and metal" for "gas and liquid," with proper modifications to take into account the variations in physical properties of

Jan 1, 1929

By Henry M. Howe

SECTIONS 1. INTRODUCTION.—In this investigation the meltingpoint and the specific heat of certain artificial silicates were determined by the method of mixtures, using a large platinum-ball pyrometer. The silicates were placed in platinum crucibles on the hearth of a small regenerative gas-furnace (Figs. 1 and 2), and the platinum ball was placed between them. The temperature of the furnace was usually raised very slowly, the behavior of the silicates being observed as they gradually grew hotter; and their temperature was ascertained indirectly from time to time by determining that of the platinum ball, which to that end was temporarily withdrawn from the furnace and immersed in a known weight of water in a calorimeter. The weight and specific heat of water and of platinum ball being known (the specific heat of the latter approximately), it mas possible to calculate the temperature of the platinum ball, which was assumed to have been substantially that of the silicates which surrounded it in the furnace. The specific heat of the silicates also was determined by the method of mixtures. Their temperature having been determined as just described, one of them was dropped into a known weight of water in a calorimeter, whose rise of temperature was then noted. Knowing the weight and initial temperature of the silicate, its specific heat was wily calculated. The reults obtained, especially as regards the melting-point, must be regarded as first approximations. The technical difficulties encountered were so serious as to raise doubts, now from one cause, .now from another, as to the accuracy of most of the results: hence I give but a few, those which were reached without mishap, and with proper observation of the various precautions. The difficulties encountered are referred to again in Section 6. The investigation was carried out in the metallurgical laboratory of the Massachusetts Institute of Technology, and part of. The

Jan 1, 1890

By R. S. Lewis

The Utah field to which the name Book Cliffs is applied runs in a northeast direction from Mt. Hilgarde, in Sevier county…

Jan 1, 1915

By J. W. King

URANIUM ore was first discovered in the Edge-mont district of the southern Black Hills in the summer of 1951. The discovery was not made known for some time, but after the news leaked out prospecting became intense, and several hundred claims were staked in the spring of 1952. The Hot Springs Sub Office of the Atomic Energy Commission was established at that time and airborne radiometric surveys were commenced by the Government and by private companies. During the succeeding summer another important discovery was made by private airborne surveys in the northern Black Hills, and the area favorable for uranium ore was expanded many times. Between that summer of 1952 and the present, many individuals and groups have explored, developed, and exploited their claims until now uranium ore is produced in significant quantities and substantial reserves have been developed. The Black Hills portion of the geologic map of the U. S. issued by the U. S. Geological Survey is shown in Fig. 1. Sedimentary formations are exposed as a series of cuestas and hogbacks in a roughly annular pattern with the older sediments resting on the pre-Cambrian core, which is exposed in the eastern and southern portions of the dome. The South Dakota-Wyoming state line bisects the area from north to south. The Cheyenne River crosses the southern tip of the Black Hills and the Little Missouri bounds them roughly on the north. Headquarters of the AEC in the Black Hills is the Sub Office at Hot Springs, S. D. An ore buying station is located in Edgemont, 28 miles to the southwest, where a mill is presently under construction. The area of original uranium ore discovery and of principal activity in the southern Hills is a few miles north of Edgemont. Several areas of anomalous radioactivity have been noted between Dewey, S. D., and Newcastle, Wyo. A limited amount of ore has come from the Dewey area and private exploration is active there. The Carlile deposit, largest producing mine in the northern Black Hills to date, lies northwest of the Belle Fourche River near the western extremity of the Hills. Two of the larger known orebodies of the area are located near the Little Missouri River where a small window exposes the favorable strati-graphic horizon of the Fall River sandstone. Small production has recently come from Barlow Canyon, near Devils Tower, Wyo., Fig. 2, and numerous areas of anomalous radioactivity are known in the vicinity. Three producing deposits and scattered radioactivity are found along the state line east of Aladdin, Wyo. Several areas of weakly anomalous radio-

Jan 1, 1957

By Fred W. Stiefel

THIS paper covers the operation and maintenance of Diesel locomotives underground on a portion of the Delaware River Aqueduct.[t] This part of the tunnel is r5 miles long, with shafts 14 ft. in diameter spaced about 5 miles apart. These shafts (2, 2a and 3) are 825 ft., 1551 and 840 ft. deep, respectively. The grade of the tunnel is almost level, except for the 12,100 ft. north of shaft 2, which has a grade of 2.31 per cent. The tunnel is circular, 19 to 19 ft. in diameter, It lies at a depth of 400 ft. below sea level, with a maximum overburden of 2400 feet. The tunnel driving was carried on in six headings, using 15 storage-battery locomotive each of 13 gross tons and having a [inum] speed of 8 miles per hour. The longest haul was 3 miles, which proved to be the maximum distance for which storage-battery locomotives could be employed economically for the amount of material to be moved. One locomotive was used for switching cars at each heading, one for switching cars at the bottom of each shaft and one on the main-line haul from the heading to the shaft. The maximum amount of material hoisted in one shaft from two headings when 104 ft. of tunnel was driven in 24 hr. was 1000 cu. yd., or about 2000 tons of rock in place. The total quantity excavated was 950,000 cu. yd. (1,500,000 tons of rock). The tunnel-lining operations using con¬crete presented a problem of hauling a maximum distance of 5 miles in the tunnel. The concrete-placing equipment had a capacity of about 2000 cu. yd., or 4000 tons in 24 hours. Experience had shown that storage-battery equipment could not handle this quantity of material within the time required at the distance of 5 miles, Trolley-locomotive haulage was considered dangerous and expensive, and would cause interference because transmission equipment would be required. Therefore the performance of Diesel locomotives of 160 hp., with a speed of 18 miles per hour, in comparison with that of other types of locomotives, was studied. CHOICE OF LOCOMOTIVES In deciding upon the type of locomotive to be used for the 5-mile haul, four alternatives were considered, as follows: I. To purchase additional storage-battery locomotives with the necessary batteries over the 6 locomotives and 12 batteries available. 2. To convert the existing battery locomotives to the trolley type. 3. To purchase new trolley locomotives. 4. To purchase Diesel locomotives. PROPOSITION No. I The go-hp. storage-battery locomotives available (each weighing about 12 tons), when hauling a load of 64 tons, with a drawbar pull of about 1900 lb. on a level track, developed a speed of 8 miles per hour and could make five round trips in 8 hr. with a

Jan 1, 1942

By Sidney Swensrud

ABOUT a year ago, I attempted in a general way to trace the origin and development of some of the marketing problems of the petroleum industry, and to describe certain trends which it then seemed possible to foresee. To summarize briefly, it was pointed out that the consumption of gasoline, after increasing for more than a decade at an almost unbelievable rate, was slowing down, but that the two factors which determined the supply of gasoline-namely, the production of crude oil and the percentage of gasoline derived therefrom-were tending steadily to mount. It was suggested that, while the increase in gasoline outlets began with and probably was justified at the start by the rapidly increasing demand, long after all reasonable requirements as to number of outlets had been met the number continued to increase-if anything, at a still more rapid rate-because by that time the overproduction of crude had begun to exert an impelling urge upon the owners of that crude to seek assured outlets for it in the form of gasoline. As more and more companies became integrated all the way from crude oil to marketing, there took place an ever-increasing competition among them, not only for the existing outlets but for new ones. The wide margin between wholesale cost and retail price, which is characteristic of the early stages of most new industries, persisted in the oil industry longer. than in most industries, for various reasons. The existence of that wide margin provided in large measure the means of attracting new outlets, for as the gallonage per outlet declined with the increasing number of outlets, competing companies simply offered the dealers a larger part of the total margin. The very nature of competition suggests that such a process would continue until practically all of the available margin was thus given away, and such was clearly the, tendency. It was a system that in turn produced increasing marketing expense per gallon on account of the -diluted gallonage per outlet; this increased expense might seem to have provided a justification for continuing wide margins. Economics, like its parent, nature, however, progresses by mutations and so began to throw out new types of marketers, in the form cf tank-car service stations, cut-price jobbers, and the like-heretics or

Jan 1, 1932

By Marvin L. Kay

In the spring of 1950, just two years after the inauguration of the domestic uranium program by the U. S. Atomic Energy Commission, the company entered the uranium mining and milling business through a newly formed subsidiary, Climax Uranium Co. This was the first venture into a new field of mining for Climax, which became the first old-time mining company, other than the vanadium producers, to become active in the embryo uranium industry. Twenty-five years earlier, Arthur Bunker, president of Climax Molybdenum, organized and operated the U. S. Vanadium Co. at Rifle, Colo. With this background, he viewed the budding industry of the Colorado Plateau with much interest. Upon its formation, the new subsidiary entered into a con- tract with the U. S. Government and the potential uranium-vanadium properties of Minerals Engineering Co. were assigned to Climax Uranium Co. Funds for the construction of a processing plant and working capital were advanced by Climax Molybdenum Co. The old sugar mill building of the Holly Sugar Co. in Grand Junction was leased to house the extractive plant. Construction of facilities, which were based upon a new process developed for the treatment of both uranium and vanadium ores, was completed and the mill was placed in operation early in 1951. Subsequent to that time several alterations were made and the capacity of the plant increased. In terms of recoveries, the plant has proved to be one of the most efficient on the Colorado Plateau

Aug 1, 1955