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By Georgc E. Collins

SEVERAL years ago, I estimated the total stock of gold in the world to be about a thousand million ounces, of which rather over one-third was available for monetary uses. Robert H. Ridgway has estimated the world's production from 1493 to 1927 as slightly over this amount. Of this total, 1.5 per cent was produced between 1493 and 1850 (before the Californian and Australian goldfields began to flood the world with gold), 331/2 per cent from 1851 to 1900, and 511/2 per cent from 1900 to 1927. Allowing for loss by attrition and permanent consumption in the arts, and for loss of buried treas¬ure, my first-mentioned estimate is perhaps not far from the truth; but my estimate of the monetary stock was certainly too low. Of the total production stated by Rid-way. 28 per cent came from North America. 26.9 per cent from Africa, 1.6.8 per cent from Australasia, 12.4 per cent from South America, and 11.2 per cent from Asia. Excepting that from the African conglomerate beds, the ultimate origin of which is still the subject of controversy, by far the greater part of the total production was derived from alluvials. Weighing all contingencies, it is improbable that any such production as has been made during the last forty years will be repeated in any similar period, if the present price level is maintained. The gold standard today seems firmly established except for temporary digressions. Nevertheless, no well-informed mining engineer will venture to assert the probability that the material for its maintenance throughout future generations can be furnished.

Jan 1, 1932

By John A. Baker

S EVERAL FACTORS have brought about a vastly greater interest in the gold-mining industry in the last two or three years. Outstanding is the fact that there is an open market at a fixed price for all that can be produced. a condition that holds for no other commodity. Costs of production have decreased greatly, owing to lower prices of supplies and equipment and lower wages. Improved metallurgical processes and equipment are also available. To big new gold district is being opened up but virgin ground is being prospected with some success in many of the more remote parts of the world and right here in the United States many old properties are being reopened 111 the light of present condition<, tailing dumps are being re- worked, and profitable leases taken on abandoned property. Many of the men who are becoming interested in gold are mining engineers whose experience has all been with base metals heretofore: some are engineers with no mining experience; some are not engineers at all but men who cannot find profitable employment in their usual field of activity and are attracted by the age-old lore of the yellow metal. Some are business men with a little money and an idea that under present conditions gold mining offers a safer investment for it than most other kinds of business. It is to those more or less inexperienced new- comers in the gold-mining industry that this article i4 ad dressed. Those who are connected with the large gold mines or who have had rears of experience with the small ones will find in the following pages little or nothing of interest but it is hoped that the newer generation of small mine operators, on whom the healthy growth of the industry depends so much, may find here some helpful hints.

Jan 1, 1932

By Jay A. Carpenter

IN six years the construction of Hoover Dam and the power plants probably will have reached the operating stage and this vast new source of power will then be continuously available for industry. The height of the darn will be 580 ft. and the average annual flow of the Colorado River is calculated at approximately 24,000 cu.ft. per sec. If this full head and average flow can be maintained the year round, about one million horsepower will be generated. The U. S. Reclamation engineers, taking into consideration the probable range in flow and head, have set the figure for power contracts at 660,000 firm horsepower, which can be assured at all times of the year. During the months of heavy run-off of water from the Colorado River Basin the power plants should be able to generate the full 1,000,000 hp. capacity of the power plants, so there will be 340,000 excess or secondary horsepower. The cost of firm power at the switchboard will be close to 2.15 mills per kw.-hr., equal to $14.05 per hp.-yr., and the cost of the secondary or off-peak power will be close to 0.8 mills per kw.-hr., or $5.22 per hp.-yr. In no place in the country can such cheap power be obtained today. The electrochemical industry is in a state of flux because the power costs from its old sources have increased so much (to $30 per hp.-yr. at Niagara) that the industries have had to seek new sources, so they have gone to Canada and Norway and built new plants.

Jan 1, 1932

By Charles E. Locke

DEPRESSION in all lines of the mineral industry except gold, which began in 1930 and continued, even worse, through 1931, had its effect on ore concentration. Construction was limited to the completion of plants already begun. Every possible economy was adopted. Changes and improvements involving expense were postponed. Research was largely abandoned. Operations became highly efficient and costs were cut down, although this did not necessarily mean a lower cost per ton because of the greatly reduced capacity at which mills were run. Lower metal prices caused the operators to seek the optimum ratio of concentration and grade of concentrates looking toward maximum economic recovery; that is, net profit. In the crushing field no marked changes occurred. The Symons cone crusher for intermediate work is in use almost everywhere. Its manufacturers claim that 900 machines have been installed in 21 countries, replacing two previous steps of crushing and yielding a product sufficiently fine to form a satisfactory feed for rod mills and ball mills. A new Telsmith crusher has appeared which has curved jaws something like the Symons cone and consequently the same advantage as the latter.

Jan 1, 1932

By J. B. Knaebel, M. W. Von Bernewitz

OUTSTANDING FACTORS that have largely induced the current great interest in the reopening of old mines and the search for new deposits are the increased relative value of gold, the certainty of a market for it, and the decreased activity and poor profits in other lines of endeavor. It is easy to understand why a miner out of a job and unable to find any other means of livelihood would naturally take to the hills with his pan, pick, and shovel; but never before have inexperienced, would-be prospectors and placer miners materialized from the factories and farms, the haberdasheries, and the oil and gasoline supply stations, in such numbers as the last couple of years have witnessed, except when rich strikes of the proportions of a Klondike have been made. What, may one ask, has occasioned this condition? Unemployment has put these men in a receptive frame of mind, and newspaper and magazine articles have done the rest-- The Gold Miner of Los Angeles (a new weekly), The Mid- Week Pictorial (New York) for Sept. 3, 1932, and Popular Science Monthly for August, 1932, for instance. Even the Saturday Evening Post had an article on a promising part of Colorado. Stories that good wages may be had for the panning in nearly every western state have been featured by daily papers, popular "scientific" magazines, and quasi- technical journals. These tales have been eagerly grasped by thousands of people whose ignorance of mining has only served to increase their enthusiasm.

Jan 1, 1932

By AIME AIME

THE Hazleton district of the Pennsylvania Anthracite Region will be the scene Oct. 14 and 15 of the fall meeting of the Coal Division and the Pennsylvania Anthracite Section. Here, coal mining has been active for more than 100 years and hereabouts industrial necessity inspired the numerous inventions of the Pardees, Eckley B. Coxe, a former A.I.M.E. president, and the Marltles, who contributed much to the success of the Institute in its early days, as well as to the upbuilding of modern methods in the anthracite and bituminous industries. Headquarters will be the Altamont Hotel, Hazleton, Pa. There will be two technical sessions Friday, registration preceding the first which is scheduled for 11 a.m. to 1 p. m. The second will be called at 2:30 p.m. Saturday is reserved for mine and plant visits, with golf and tennis after luncheon for those so inclined. The ladies are cordially invited to the meeting and arrangements have been made for their participation in much of the program. The chairmen of the committees preparing for the meeting are: Donald Markle, president, Jeddo-Highland Coal Co., General Committee; R. E. Hobart, mechanical superintendent, Lehigh Navigation Coal. Co., Committee on Visits and Inspections; H. D. Kynor, general manager, Northumberland Mining Co., Committee on Programs and Papers; B. H. Stockett, general manager, Weston; Dodson, Inc., Reception Committee.

Jan 1, 1932

By E. H. Griswold, C. E. Beecher

DURING 1931 the petroleum industry has faced the most hazardous periods of its existence, caused by large potentials, overproduction, and demoralized markets. Two state governors actually resorted to the use of the militia in an effort to restore a semi-stabilized condition within the industry, to prevent waste of the states&apos; natural resources, and to restore prices to a level that would yield the states a reasonable tax revenue. These conditions have made it necessary to put into effect most. stringent economies and have produced a spirit of cooperation between companies to an extent that never before existed. The necessity for unified action on such matters as proration and the advantages to be gained by unit operation are being realized by the oil industry as a whole. Fewer wells have been drilled and wildcat operations almost eliminated: development and operation costs have been greatly reduced and more attention is being paid to efficient recovery methods. The net work of oil pipe- lines has grown rapidly especially in the area of East Texas. The construction and operation of natural gas and gasoline pipelines into areas far distant from the source of supply has been one of the outstanding accomplishments. Refining efficiency has continued to increase and the public is being supplied with a better grade of gasoline at a lower price. The unreasonable tax which state politicians have succeeded in placing on gasoline has encouraged tax evasion and unfair competition by un- scrupulous dealers and has misled the public as to the true price of gasoline.

Jan 1, 1932

By AIME AIME

NO FEATURE of the annual meeting is considered more important at Institute headquarters than the assembly of delegates from the various local sections and divisions. There the president of the Institute and other officials may learn at first hand what the members are thinking and doing in every part of the country, and the delegates, in turn, may find that head- quarters is not a group of more or less cold-blooded New Yorkers whose primary function is to send out annual bills for $15. This year, the section and division delegates required three sessions to thresh out the matters of common interest: Monday morning and afternoon and Thursday afternoon. They were also guests of the Institute at the Directors&apos; dinner on Tuesday night, and at the Directors&apos; meeting afterward.

Jan 1, 1932

By J. B. Urnfileb

THE function of gas in the development and production of oil has far reaching consequences that should be emphasized. The technical aspects of the subject have recently had a great deal of attention but less thought has been given to fundamental concepts underlying oil and gas law and the many customs and practices that have grown up in the industry. I shall re- view briefly the advance in knowledge of the subject and attempt to relate these concepts to legislative, judicial and operating problems. Early writers on oil and gas in Pennsylvania noted their close association in oil pools and their contemporaneous decline in output; also, that as gas pressure decreases so does production, that new offset wells reduce the output of existing wells, and even that tubing a well lengthens its flowing life. Expanding gas was deduced as the principal expulsive force. These fundamental observations had been made at least as early as 1880.l They were treated, however, as academic considerations and did not greatly influence law or practice for many years except to instil into all operators an urgent desire to hasten offset drilling to obtain as much of the flush as possible.

Jan 1, 1932

By Edward H. Robie

PONCA CITY proved an ideal selection as a place of meeting for the Petroleum Division this fall. The accommodations at the Conoco Club were just what was required for such a gathering; the committee having the arrangements in charge functioned with the efficiency of veterans and the enthusiasm of neophytes; and the members and guests followed the speakers with close attention, entered the subsequent discussions with gusto, and divulged the "low-down" at private conferences. No one minded the drizzling rain on the first day, which only served to keep up the attendance in the auditorium; the weather then cleared up in time for a group picture before the gathering went their separate ways.

Jan 1, 1932

By Sam Tour

OF the new alloys achieving commercial prominence during the year, an aluminum-silicon magnesium casting alloy, which is similar in many respects to the 4 per cent copper alloy, developed about 1921, which has attained such a wide field of service, may be mentioned. The new alloy, like the old, is a heat-treatable type and develops about the same physical properties. The alloy casts easily and is relatively insensitive to high pouring temperatures. Its ability to produce substantially leak- proof castings is noteworthy. A second casting alloy development is the new Aluminum Co. of America No. 132, "Lo-Ex" piston alloy, a result of nearly eight years of research. The alloy contains about 14 per cent silicon and varying amounts of nickel, copper, and magnesium. It exhibits a low coefficient of expansion and thus permits small piston clearances. Its lower specific gravity is a further advantage.

Jan 1, 1932

By Walter W. Bradley

AT ONE TIME OR ANOTHER and in greater or less amounts, gold has been mined in at least 40 of California&apos;s 58 counties. It may not be inappropriate, by way of introduction, to give a brief historical statement relative to her production of the yellow metal. The presence of gold in the gravels of San Gabriel, San Francisquito, and other streams near Los Angeles, was known and they were worked in a small way by the Indians, at least as early as. 1841&apos; and possibly 1820. -On March 2, 1844, Don Manuel Castanares, deputy for California to the Congress of Mexico, reported&apos; to his government that placers near Los Angeles had yielded up to December, 1.843, a total of 2000 oz. of gold dust, most of which had been sent (via Mexico) to tile United States Mint at Philadelphia.

Jan 1, 1932

By AIME AIME

THE two illustrations below, furnished through the courtesy of J. P. Messervey, Deputy Inspector of Mines, Department of Public Works and Mines, Province of Nova Scotia, show a fourth-level stope in the salt mine at Malagash, N. S. Fig. I was taken when the stope was begun, and Fig. 2 shows how it looked two months later, the photographs being taken from the came point. This stope is at a depth of about 300 ft. and is on the MacKay seam, which is the central band of white salt running through the Malagarh deposit. As run be seen. the vein is vertical. and varies from a foot to 50 ft. in thickness. The

Jan 1, 1932

By ROBERT E. HARDWICKE

THE QUESTION of whether the production of oil should be limited to market demand has been constantly discussed during the last two years. Oil men, legislatures and courts have reached highly conflicting conclusions. Opponents of limitation to market demand assert that it is a scheme of the big purchasing companies to fix prices and to create a monopoly. Proponents, on the other hand, declare that such a limitation is necessary to prevent physical waste and that the effect on prices is merely incidental. A brief review of market demand legislation will disclose the confusion existing. The laws of Oklahoma,&apos; prohibiting waste of oil and gas, specifically&apos; authorize limitation to market demand as a method of preventink such waste. These laws and the proration orders based thereon have been upheld by the Supreme Court of Oklahoma, by several three-judge Federal District Courts, and by the Supreme Court of the United States.&apos; Kansas has a similar law3 but no case has been found which discusses its validity. About a year ago the California Legislature passed a comprehensive conservation act, generally known as the Sharkey Bill giving authority to restrict production to an amount representing current requirements for use, taking into consideration oil and products in storage. This may be considered as equivalent to limitation to market demand. The Act was defeated upon referendum vote after a hard fought campaign in which it was charged that the Act would result in destruction of the independent operators.

Jan 1, 1932

By F. W. Bradley

GOLD is a large subject. One could talk about its geological or mineralogical occurrences, prospect- i11.g for it, mining of .it, its metallurgy or its marketing; but I have decided to limit my discussion to gold as a business-that is, to its production and marketing. In the production of gold, it is necessary to consider the many possible sources, the quantities available, the capital and operating costs and the chances of price-breaking competition. So in the following remarks I shall endeavour to point out that though gold is found in every formation constituting the earth&apos;s crust, though it is possible to-find it free in great concentrated placer deposits on the surface, though there are still large unprospected areas of both the surface and the crust, though it may be possible to produce it by the cheapest labor on earth, and by processes not as yet developed, it still has an unlimited market at a definite price. There is no reasonable fear of disturbance by the finding of bountiful deposits, or by cheapening the cost of production due to devaluation, or by the development of any easy processes for direct, or for by product, production.

Jan 1, 1932

By Scott Turner

AS IN OTHER lines of engineering, progress in mining was influenced during 1931 by the world-wide economic depression. Low-metal prices ? resulted in active efforts to reduce production costs of base-metal mines. Probably the chief factors in reducing costs were the greater efficiency of labor, due to better relations between management and workmen, to the scarcity of jobs, reduced wages in most base-metal mines, and to lower overhead expenses secured by drastic economies. The use of mechanical equipment continued to increase, due to more efficient designs and a better practical understanding of the applicability of such equipment to requirements. With one exception, there were no startling innovations in stoping methods, but there was notable progress in the better adaptation of mining methods. In the United States, no large new base-metal or silver mines came into production during the year. At a number of mines, output was curtailed, and operations were discontinued at several important producers. On the other hand world-wide interest in gold was stimulated, as evidenced by increased output from producing mines, the reopening of some old properties, and intensive prospecting for new deposits. Mining methods at several gold mines in the United States and Canada were modified or changed to obtain a higher extraction of ore or to meet the need for additional support of the mine workings at depth. Permanent record of improvements in mining practices has been made during the year by the Federal Government; the industry thus has available for its use more detailed information than ever before. This work was done through cooperation of the mining companies and their representatives with the United States Bureau of Mines, whereby many papers descriptive of practices and costs at individual mines have been published. The Bureau&apos;s program of describing methods and costs at the more important mines (those producing in excess of $100,000 annually) is nearly completed, but papers will be issued concerning such additional mines as may possess particular interest because of novel methods, exceptional conditions or operating results, and others to supplement reports already issued. In this way, an interesting record of the results of changing conditions, or innovations in methods, will be made available.

Jan 1, 1932

By AIME AIME

THE MILLING PROGRAM on Monday required a morning and afternoon session with a special luncheon of the Milling Committee in the Engineers Club at noon. Grinding and flotation were the main subjects of the papers which drew an attendance of fifty or more at each session. Under the direction of Chairman Arthur F. Taggart in the forenoon, all papers on flotation and general milling were considered, leaving the, after- noon free for crushing and grinding, with Dr. Galen H. Clevenger in the chair. The high spot was the first public presentation of the idea of size reduction of minerals by explosive shattering.

Jan 1, 1932

By AIME AIME

WITH a brilliance undimmed by hard times, the annual dinner on Wednesday evening, Feb. 17, was a complete success. More than 600 members, friends and ladies gathered early and filled the anterooms of the grand ballroom of the Commodore Hotel, while the president&apos;s reception was in progress, and then at the sound of the gong and with the music of the orchestra, rising above the happy din of conversation thronged to their seats at the tables. Following the "potage Ambassadeur"-probably to eliminate a very real hazard-the usual toy balloons appeared and a gay and lively scene, punctuated by multitudinous explosions, ensued, as the hundreds, of variously colored spheres bounced yon and hither until their gaseous existence was ended on the glowing end of a cigar or cigarette. On the speakers&apos; dais sat C. E. Beecher, Chairman Petroleum Division; J. Vipond Davies, representative of A. I. M. E. on the Alfred Noble Prize Committee; Corbin T. Eddy, Alfred Noble Prize recipient; A.&apos; S. Tuttle, Vice-president American Society of Civil Engineers; W. C. Mendenhall, Director U. S. Geological Survey; George C. Bateman, representing the Canadian Institute of Mining and Metallurgy; Paul D. Merica, Institute of Metals lecturer and Chairman James Douglas Medal Committee; Champion Herbert Mathewson, James Douglas Medalist; Robert E. Tally; retiring President; G. Temple Bridgman, toast-master; Scott Turner, incoming President; F. W. Bradley, William Lawrence Saunders Medalist; Fred Searls, Jr., Chairman William Lawrence Saunders Gold Medal Committee; Arthur Notman, President Mining and Metallurgical Society of. America; Robert J. Grant, Director U. S. Mint; Landon F. Strobel, Chairman New York Section; Howard Scott, recipient of Robert W. Hunt Prize; George. B. Waterhouse, Chairman Robert W. Hunt Prize Committee; F. M. Becket, Chairman Iron and Steel Division; Ora E. Clark, recipient of the J. E. Johnson, Jr., Award; Richard Peters, Jr., Chairman J. E. Johnson, Jr., Award Committee; E. C. Bain, Howe Lecturer; Sam Tour, Chairman Institute of Metals Division; and H. Foster Bain, Chairman. Charles F. &apos;Band Foundation Committee. &apos; Each was heartily applauded when introduced by Mr. Bridgman, as was Mrs. Tally, who also made a bow. The toastmaster made graceful reference in introducing Mr. Strobel, to the large part the latter had taken in planning the meeting.

Jan 1, 1932

SEC. 1. This Institute is incorporated under the Membership Corporations law of the State of New York; its corporate name is American Institute of Mining and Metallurgical Engineers, Inc.; and its abbreviated title A. I. M. E. SEC. 2. The objects of this Institute, as set forth in its certificate of incorporation, are: "To promote the arts and sciences connected with the economic production of the useful minerals and metals, and the welfare of those employed in these industries by all lawful means; to hold meetings for social intercourse and the reading and discussion of professional papers, and to circulate by means of publications among its members the information thus obtained, and to establish and maintain a place for meeting of its members, and a hall for the reading of papers and delivery of addresses, and a library of books relating to subjects cognate to the sciences and arts of mining and metallurgy."

Jan 1, 1932

Jan 1, 1932