^ REPORT of the PROCEEDINGS OF THE Twenty-Second Annual Convention The American Mining Congress ST. LOUIS, MISSOURI NOVEMBER 17 to 21 1919 ^rr^^ffivH^r^t^r^t^ Report of the Proceedings OF THE Twenty-second Annual Convention The American Mining Congress PLANTERS' HOTEL, ST. LOUIS, MO. NOVEMBER 17-21, 1919 . V ; National Industrial Conference National Gold Conference National Oil Shale Conference National Conference of Schools of Mines and Metallurgy National Exposition of Mines, Mining Machinery and Safety Devices MADE BY KOHN & POLLOCK, INC. BALTIMORE, MD. Proceedings of The American Mining Congress Twenty-second Annual Session PLANTERS' HOTEL, ST. LOUIS, MO. Preliminary Conferences Committee on Standardization of Mining Equipment This Committee, under the direction of Col. Warren R. Roberts, of Chicago, acting chair- man of the General Committee, began its conferences on Saturday, November 15, in the Planters' Hotel. Sub-committees and General Com- mittee met in formal session on Sunday, November 16, completing the work of the Committee on Monday and Tuesday, the 17th and 18th. Informal Dinner Nearly 100 delegates assembled for an informal dinner on Sunday evening and discussed plans for the succeeding days. Exposition Opens The Exposition of Mines, Mining Machinery and Safety Devices was held in the old Southern Hotel, which had been transformed into an Exposition Building and Convention Hall. This Exposition opened infor- mally on Monday morning and was formally declared open in the after- noon. The Congress OPENING SESSION OF THE CONVENTION MONDAY, NOVEMBER 17, 2.30 P. M. The Convention and Exposition were opened jointly in the large Convention Hall of the Exposition Building, Capt. Robert E. Lee, vice- chairman of the Exposition Committee, presiding in the absence of Chairman W. K. Kavanaugh, who was absent from the city. CHAIRMAN LEE : I will ask you, as a fitting opening for this great Convention ahead of us, if you will join with the orchestra in singing- "America." 55440 * ' REPORT OF PROCEEDINGS After the singing of the national anthem Chairman Lee said: "While you are standing, gentlemen, we will have the invocation by Bishop William E. Quayle, of the Methodist Episcopal Church." The Invocation BISHOP QUAYLE: O Lord God, we worship Thee. When our reason stands level-footed we always worship God. He is the God of the heavens, He is the God of the earth, He is the owner of all things. The ground on which we grow our crops is His, the silver and the gold and the coal are His. It is the Great God who owns the world, and we are His under-servants. He is our Master. It is well for us, in these eventful hours, to understand who owns the world; He only loans it to us, and we borrow of Him. Great God, bless us as we try to do the things in Thy world that ought to be done. Keep us from being super- ficial, Lord. When other kings are failing and faltering, and their thrones are shaking down, there is only one King who is immortal, the God whom we worship this hour. O Lord, bless our country in these troublous hours, through Thy guardianship and guidance of it all, and in these great matters which these men, these servants of Thine, shall administer when they talk concerning this wide dominion of God, whereby all of us are enriched. Great God! give us penetration of Thy divine will. Keep us from the autocracy of labor, capital and politics. Keep us to the divine democracy of the world belonging to God, and the world belonging to man. So bless these men, may all they do and all they think and plan conduce to help God get His right-of-way in the world. God, bless the public, of which we all are, whether employees or employers. Remember that the public is to be served, and the God of the public is to be served, and no man can take matters into his own hands without taking matters which belong to God. Bless these men in their endeavor to stabilize business, keep us from Sovietism, keep us to law and order, and the sobriety of judgment. Keep us as one man having some property and all of us wanting to earn an honest livelihood and turn an honest penny in the sight of God. Keep us from being Socialists, so that God shall have a world in which there are homes and families and husbands and wives and children, and we shall worship God. Out of the sweaty fields we shall come to our homes to worship God and lie down and rest. Bless us all with Thy goodness and Thy guidance for us, we pray Thee, Lord, for Jesus Christ's sake. Amen. Address of Welcome CHAIRMAN LEE: Ladies and Gentlemen: We will now formally open the Convention and proceed to business. I am in a peculiar attitude here, as the representative of the Mayor of St. Louis, who is ill, and the representative of Mr. W. K. Kavanaugh, who is detained in Washington, and had hoped to be here to welcome you in his own inimitable way. I am the representative of the Chamber of Commerce, which is very warm in its welcome to you, and, if you will permit me, I am the representative of myself, and I would like to welcome you. THE AMERICAN MINING CONGRESS 5 We, in St. Louis here, have a penchant for visitors; we love com- pany; we like to have folks like you, who are important in the world's work and the world's ways, to come here and be "home folks" with us. We would like you, before you get away from here, to be in the attitude of the men in the story which I have heard: A missionary started over for the Sandwich Islands, or somewhere else, to take white collars and silk hats to the heathen. His ship was wrecked en route, and he was thrown upon what he supposed was a cannibal island. He crawled up the sands in fear and trembling, and when he got toward the top of a little knoll, he heard human voices on the other side of the hill, and picturing, as a man will in his mind, he pictured on the other side of the hill 40 or 50 great black, greasy can- nibals, dancing around a caldron, and a couple of his shipmates being cooked for dinner. So he crawled a little closer up, and then he could distinguish what was said on the other side. He heard a fellow say: "Ah, what's the matter with you, don't you know better than to trump your partner's ace?" And he said: "Thank God, I'm among Christians anyway." [Laughter.] We want you to feel that you are among your own kind of folks, who really enjoy having you here. It is the aim of the City Administration, the Chamber of Commerce, and these gentlemen on your Entertainment Committee for the Mining Congress, to make you feel that there is no other place that has done any better than St. Louis, and that most of them have not done half as well toward entertaining you and making you feel at home. I want now to present to you for an address, in behalf of the Missouri Associated Industries, Mr. Elmer Donnell, who is the general manager of the Associated Industries of Missouri. MR. DONNELL: Mr. Chairman, Delegates to The American Mining Congress, Ladies and Gentlemen: I keenly regret the illness of Mr. Albert Davis, the president of the Associated Industries of Missouri, because I think he would make a better speech than I in welcoming you to this Convention Appreciating to the fullest extent the high honor your officers have done in placing the Associated Industries of Missouri at the forefront of your program, I, as a representative of the sound, conservative busi- ness establishments of Missouri, am pleased to welcome you, the delegates to The American Mining Congress and the Industrial Conference, to St. Louis and to Missouri. Missouri Becoming Industrial Center Missouri has made wide strides in industrial production during the past few years, and if the number of concerns v/hich locate here shall increase as rapidly in the next few years as they have in the past period, Missouri will shortly be known as one of the great industrial States of the Union. As an instance of our progress, may I cite to you the increased value of manufactured products in this State since 1916? These figures are 6 REPORT OF PROCEEDINGS furnished by the State Bureau of Labor and Statistics. In 1916 the value of products manufactured in Missouri was $905,575,717; in 1917 that amount had increased to $1,250,000,000; in 1918 the value of these products reached $1,500,000,000. And when the figures are out for 1919 we expect a great increase over any preceding year. The eyes of the manufacturing world are focused on Missouri as an ideal location for new industrial enterprise. This State is almost the exact geographical center of commerce. In addition to its great railway transportation facilities, it has free and easy access to the two greatest waterways in the United States, the Mississippi and Missouri Rivers. Interested in Convention I make brief mention of these industrial facts in order that you may know that the people of Missouri are vitally interested in your delibera- tions. The questions which are to be discussed at this conference are on subjects of not only vital importance to the men interested in metal- lurgy and mining, but to all classes of business men who must depend upon production. The millions of men, women and children who belong to the con- suming class, and the men who earn their living by labor, are now study- ing and discussing the grave problems of production, upon the proper solution of which must depend the cost of the necessities of life. The Associated Industries of Missouri has planned and will con- tinue to build its influence on the solid rock of Americanism. We are ready to fight to the last ditch those interests which would defy law, destroy government, wreck our institutions and control industry. [Ap- plause.] Bolshevism, I. W. W.-ism, and anarchy must be entirely elimi- nated from the life of this nation. [Applause.] If you will bear with me for just one moment, I would like to read to you the principles of the Associated Industries of Missouri, unani- mously adopted at a recent meeting of the Board of Directors in the city of St. Joseph. You must remember that the Associated Industries is made up of the large business concerns of this State. Missouri Platform To stand for 100 per cent. Americanism and pledge the mem- bership of this Association to use every effort to secure the full Americanization of all alien employees. To unite for the purpose of developing the industries of Mis- souri, and to co-operate in matters affecting their interest. To obtain State and National interest in the industrial ? regress and advantages of Missouri, and pledge ourselves in avor of development of efficient highway and waterway trans- portation. To interest men of industries in the political duties of citizen- ship, and to encourage them to express their opinions on the work, and to work for constructive legislation. To preserve the economic freedom of the worker and em- ployer, to resist any attempt to restrict the rights of men to choose where and upon what terms they will work, and to insist upon the right of industry to employ whom it chooses. To encourage co-operation between employers and employees to their mutual interest. THE AMERICAN MINING CONGRESS 7 I quote this declaration in order that you may know the attitude of the business men of Missouri, who have co-operated with and sup- ported your officers to endeavor to make this Convention one of unquali- fied success. We believe that your discussions will be of enormous educational value to the public at large, and we hope that the decisions arrived at will have a large influence in solving the great problems which have created and continue to encourage the industrial and political unrest of today. In closing, may I once again proclaim to you a hearty and sincere welcome from every business man in Missouri, and may your endeavors be crowned with the success they so richly deserve! CHAIRMAN LEE: Ladies and Gentlemen: On behalf of the State of Missouri, which is fourth in most things, and we Missourians think first in nearly everything else, I want to present for an address of welcome former United States Senator Xenophon P. Wilfley, of St. Louis. [Applause.] (Mr. Wilfley's address will appear on page 234.) CHAIRMAN LEE: The very apt story which the Senator told you about his colored friend reminded me of one that might illustrate the present situation: a negro soldier was standing back of the trenches on the other side, during the war, and a great big German shell came hissing over and hit the ground about 14 feet in front of him, but it did not explode; so after getting himself under control, he got his "bones" out and tossed them over to the shell and said: "From now on I am going to be a better man." We shall have the pleasure and honor to hear responses to these addresses which we have just had, and an address by the president of the American Mining Congress, Mr. Bulkeley Wells. The President's Address MR. WELLS : Mr. Chairman and All the Guests : We thank you for your cordial welcome. We have come to St. Louis with serious thoughts in our minds, but with firm determination to deserve well of your hospi- tality through bending our best efforts to the solution of our problems, which are yours as well. (The address of Mr. Wells will appear on page 239.) CHAIRMAN LEE: In honor of our own true and pure American spirit, let us join in "The Star-Spangled Banner." (Delegates joined in singing "The Star-Spangled Banner.") CHAIRMAN LEE: An address in behalf of the United States Gov- ernment by the Director of the United States Bureau of Mines, and the personal representative of the Hon. Franklin K. Lane, Secretary of the Interior, Dr. Van H. Manning, the Director of the Bureau. The United States Bureau of Mines DR. VAN H. MANNING : Ladies and Gentlemen : I feel that I should 8 REPORT OF PROCEEDINGS make some apology for the address which I am going- to read to you today, because it will be somewhat dry. I am one of those public officials who are a little bit afraid, at this time, to discuss the industrial and economic unrest; therefore, I have prepared a statement of the activi- ties of the Bureau of Mines, and tried to put up to you gentlemen some- thing in concrete form, which I want you to take home and consider. (Dr. Manning's address will appear on page 244.) ! Declares Exposition Open Director Manning continued, saying: Mr. Chairman, I have been requested to formally announce the opening of the Exposition; there- fore, on behalf of The American Mining Congress, the Chamber of Com- merce, and the affiliated bodies in St. Louis, the Secretary of War, the Secretary of the Interior and those contributors of this Exposition, I now announce the formal opening of the Exposition. CHAIRMAN LEE: I want to call your attention to the Exposition also, just a word about that. That Exposition will actually be in full operation at 6.30 o'clock this evening, and we hope, with every exhibit in place, there may be a broom standing somewhere or a nail that was not driven in quite where it should go, but in the main the Exposition will be right and well worthy of your careful inspection. We bespeak that on behalf of the many exhibitors who have gone to a great deal of trouble to prepare what we think is a wonderful exhibit applying to the mining industry. I want to present to you "Our Secretary" may I use it that way? Mr. James F. Callbreath. [Applause.] SECRETARY CALLBREATH: Mr. Chairman and Members of The American Mining Congress: I am delighted to be called "Our Secre- tary." I have been accused of being short on terminal facilities when I speak to an audience, and, therefore, I think I had better be like the one who said: "If I am so soon to be done, for what was I done?" [Laughter.] I am not going to carry out what our president said I would do, in outlining plans, etc., because I know you want to eat your dinners this evening, and we have a lot of important business to transact between times. Therefore, I will take the first opportunity to say that I am not going to talk to you. Some other time of the meeting I shall be glad, along these various subjects, to say a few words to you, but the important part of this Convention is the work done by the Resolutions Committee, and instead of talking to you, I think we had better proceed to the selection of the Resolutions Committee, which I think is the most im- portant thing to do. Selecting Resolutions Committee According to our By-Laws, which were so arranged as to take the selec- tion away from the Mining Congress, it is necessary for the delegates of each State to select their member of the Resolutions Committee, so that THE AMERICAN MINING CONGRESS 9 the resolutions reported to the Convention shall be the best thought of the people who come to the Convention, rather than those who have in charge the general work. In other words, we want you to come and tell us what you want us to do during the ensuing year. As I said, the Resolutions Committee is made up of one man representing each State and Territory within our jurisdiction, and I, therefore, am going to call the roll. I am going to ask (unless some different plan is proposed to select the members of our Resolutions Committee) that, if there is any State here whose delegation is not present and you prefer to have a meeting later in the evening, you will so announce, and announce the place where that meeting shall be held, in order that your associates in that delegation may know the place of the meeting. The Chair will be glad to pursue that course. I will call the roll of States and ask each State to assemble at some point in the hall, unless some. one from the delegation asks that a different course be pursued. (The secretary then called the roll of States and several delegations announced members of the committee.) SECRETARY CALLBREATH: Are there any other States that have been overlooked? I am glad that the last name mentioned was James T. Lloyd, ex-Congressman of Missouri, because I want to say that, in the great fight for the Bureau of Mines, James T. Lloyd was one of the most helpful men in Congress in carrying on that fight. I have seen him but once from the day that we first interviewed him until today, when he came here, but I have talked to him over the phone, and he never missed fire when we wanted him in his seat in Congress, on the floor he was always there. Those States that have not reported will kindly hand in their reports in the morning. I want to announce that the meeting this evening will discuss one of the very important problems for the mining fraternity. I want to say something which some of you may not fully comprehend: That the mining industry furnishes 58 per cent, of the total tonnage handled by the railroads, and, therefore, we, as mining men, are inter- ested in the handling of the railroads of this country. Better Railroad Management We are interested to see that, instead of having a deficit amounting to $500,000,000 a year, upon a business which was larger than ever before in history, and upon which, with a freight rate 25 per cent increased and the passenger rate 50 per cent, increased over pre-war times, the railroads will be put under such management as will decrease our freight rates, because the mining industry is more greatly interested in proper freight rates than any other industry, and, therefore, the discussion this evening will be of particular benefit to you, and I hope you will be here and hear every word that is said. The show downstairs is important; we want you to see every exhibit. We want the men who have taken pains to come here and show you machinery to have an opportunity to show what they have, but we do not want you to pay so much attention that you cannot hear the ad- 10 REPORT OF PROCEEDINGS dresses this evening from the best men in the country along that line. I hope you will be on hand promptly this evening. The Credentials Committee The president requests me to announce the Credentials Committee as follows : W. A. McCutcheon Pittsburgh A? C. Morrison New York H. A. Buehler Missouri It will be the duty of the Credentials Committee to examine the reports of the credentials to see who is properly seated in this Convention. Thirty-one States Represented ASSISTANT SECRETARY BURNS: There are 31 States now repre- sented in the Convention, and by actual registration more than 700 dele- gates at this time. May I take the liberty of announcing two features of the program which will demand your immediate or early attention? One the Pre- liminary Industrial Conference Dinner tonight at the Planters' Hotel. It should be well attended by the employers of labor. In behalf of the local Entertainment Committee, allow me to make a special announcement in addition to the printed announcement for the "General Dinner for Delegates," to be given on Wednesday evening in the large dining room at the Planters' Hotel. The seats will be limited to 700. The delegates will, of course, pay for their own tickets, as is usual in such cases. There will be some entertainment furnished by the local committee. The Governor of this State, who has been solidly back of the invitations and who has personally written to a large number of representative men throughout the nation, inviting them here, is to make an address. We will have with us also two or three distinguished representatives of European governments, and an address probably by a most distinguished European mining engineer at this dinner. PRESIDENT WELLS: The Convention will now stand adjourned until 8 o'clock this evening. ADJOURNMENT. SECOND GENERAL SESSION EXPOSITION HALL, MONDAY, NOVEMBER 17, 8.30 P. M. PRESIDENT BULKELEY WELLS, PRESIDING. CHAIRMAN WELLS: The Convention will come to order. The secretary of the Convention has some announcements to make. THE AMERICAN MINING CONGRESS 11 Program Announcements ASSISTANT SECRETARY BURNS: I wish to make a special announcement in addition to the formal announcements in the printed program, of the program arranged for the Conference of Colleges of Mines and Mining, tomorrow afternoon in Parlor "A" of the Planters' Hotel. This Conference has been called the first of its kind in the United States by a committee of directors and officers of schools of mines and metallurgy, with the expectation, I understand from the pro- moters of the meeting, that eventually there will be organized an asso- ciation which shall meet annually with The American Mining Congress. The program tomorrow afternoon, beginning at 2.30 o'clock, will be: an address, "The Amount and Kind of Business Training, Including Economics, Cost Accounting and Business Organization, to Be Taught in the Mining and Metallurgy School Curriculum," by Louis E. Young, of the Union Electric Company, St. Louis; an address, "Closer Co-operation Between the United States Bureau of Mines and Industrial Corporations in Research Investigations," by E. A. Holbrook, superintendent of the United States Bureau of Mines, stationed at Pittsburgh, and an address, "The National Temperamental Characteristics of Labor, Making the Nationalities Suitable for Mine Work," by T. T. Reed, of the Bureau of Mines, Washington. Entertainment for Ladies The local Committee on Arrangements wishes me to announce the arrangements for the entertainment of the ladies attending the Con- vention, or ladies accompanying delegates. A Special Committee of 15 St. Louis ladies will meet the delegates or visitors at the Statler Hotel at 6 o'clock Wednesday evening. Thirty minutes will be spent in getting acquainted during an informal reception, to be followed by a dinner at the Statler and a theatre party at 8 o'clock. There are a few ladies already registered, I think about 20. We believe that there will be a great many ladies in the city accompanying delegates, and the local committee will take very great pleasure in being able to get these ladies acquainted with the St. Louis women in charge of entertainment. Will you please see that the ladies with you or with your friends are registered before Wednesday afternoon at 3 o'clock, if at all possible? It is possible that, if the weather is proper on Thursday afternoon, the ladies will be given an automobile drive about the city. Mr. Kavanaugh, chairman of the Exposition Committee, telegraphs today as follows: "When compelled account of very urgent matters to leave St. Louis, I had no idea would be tied up in Washington. I hope to be home Wednesday. Would not you kindly say to the gentlemen on the committee and to the delegates how badly I feel over my enforced absence? But I know that matters are in good hands and the Exposition and Convention will be a great success." Mr. Kavanaugh has worked most constantly and faithfully in trying to make this Convention and Exposition a success, and at the last hour was called to the Capital. 12 REPORT OF PROCEEDINGS War Minerals Relief Commission I am requested to make a special announcement of the fact that the War Minerals Commissioners are to hold two sessions, tomorrow and the following day, in this city. They have not yet announced a place for those sessions, but I assume that they will be in the headquarters hotel, the Planters'. The Commissioners desire to meet claimants against the War Minerals Relief Fund. Congressman Strong to Speak Congressman Strong, of Kansas, who accepted an invitation to address the Gold Conference and also the General Conference, telling the story of Alaska, will arrive here in time for the dinner Wednesday evening. The Congressman has to leave late in the evening to return to his duties in Washington, but has been kind enough to make the trip from Washington to spend five hours with this Convention. Senator Henderson, who was the very able chairman of the Senate Committee on Mines and Mining in the last session, who is now, and probably always will be, deeply interested in mining in the West, was detained, as all Senators are, on very important business, but wires that he will be here later in the week if the vote is taken on the treaty, as is now expected will be the case. The same announcement is necessary in connection with Senator Pom- dexter, who was to speak tomorrow morning about 11 o'clock on "Who is the Government?" Mr. Poindexter has a wonderful message. As a member of the Senate Investigating Committee, looking into the develop- ment of Bolshevism in this country, he has accumulated a fund of star- tling facts, and those facts will probably be told to the Convention by Mr. Poindexter himself. Owing to his inability to be at the Convention, we have been obliged to change tomorrow's program. In the morning at 10 o'clock, in this room, Mr. Parker, director of the Anthracite Bureau of Information, of Philadelphia, will discuss labor conditions in the anthracite industry. He will be followed by Dr. George Otis Smith, director of the United States Geological Survey. Economic Problems This will be followed by an open discussion the remainder of the time on two important and vital questions at this time. One "Can industry survive under the short work-day and five-day week proposed by labor radicals?" Second "What would be the economic effect of the nation- alization of industry?" "Ralph Connor" to Speak I have a very interesting announcement for the Convention. For 32 days the city of Winnipeg, Manitoba, was shut off from Canada and the rest of the world, and in the hands of the "Reds." Anarchists so com- pletely controlled the city that the people received no mail and sent no mail; the Government could not function in Winnipeg; the City Council THE AMERICAN MINING CONGRESS 13 was removed; the Fire Department and the Police Department were re- moved. Unless one carried a red card in going to a grocery store he could not buy food, and unless the housewife had a red card at home she could not buy milk for her babies. A committee known as the Citizens' League very quietly eliminated the Bolshevists, or "Reds," or anarchists, or whatever they might be called. Today they are fighting the fight over and Dr. Halpenny, the chairman of that committee or league, who was to address this Convention, finds it impossible and dangerous for him to leave the city. He is, therefore, sending the only man available, who happened to have a special engagement in Pittsburgh, Rev. W. C. Gordon, internationally known as "Ralph Connor." Dr. Connor was preaching Sunday in Pittsburgh, and was sent on after receiving a telegram from Dr. Halpenny in Winnipeg. He will reach us tomorrow afternoon to address this Convention tomorrow night, and will tell us something of the horrors of Bolshevik rule in Winnipeg. Railroads on Business Basis CHAIRMAN WELLS : We are now privileged to listen to an address, entitled "Putting Our Railroads on a Business Basis," by Mr. Alba B. Johnson, president of the Railway Business Association. (Mr. Johnson's address will appear on page 258.) Editor "Railway Age" Discusses Legislation CHAIRMAN WELLS : Mr. Samuel O. Dunn, editor of the "Railway Age," will address us on "What the Railroad Executives Think of the Legislative Program." MR. DUNN: Mr. President, Ladies and Gentlemen of The American Mining Congress : Certainly there is no class of shippers in this country who should be more interested in the relation of existing shortage of rail- way equipment than those engaged in the mining business. None has suffered more for want of adequate facilities within the last few years. (Mr. Dunn's address will appear on page 265.) CHAIRMAN WELLS: Mr. Clifford Thorne, of Chicago, will address us on "The Effect of Railway Rates on the Mining Industry." (Mr. Thome's address will appear on page 278.) THIRD GENERAL SESSION EXPOSITION HALL, TUESDAY, NOVEMBER 18, 10.45 A. M. PRESIDENT WELLS, PRESIDING. CHAIRMAN WELLS: The Convention will please come to order. The secretary desires now to be informed of the members of the Reso- lutions Committee selected by the several delegates to this Convention. 14 REPORT OF PROCEEDINGS SECRETARY CALLBREATH : Mr. Chairman, I do not know whether the daylight saving has brought to our minds that possibly 11 o'clock is the proper time for the meeting, but I do hope that after this you gentlemen will try to get to the meeting at the proper time, because the program is quite full, and we need a great deal of time for dis- cussion. Certain of the States last evening failed to name their members of the Resolutions Committee. I will call the members of those States and ask that the delegates selected be announced. The Resolutions Committee At the conclusion of announcements the secretary read the following list comprising the membership of the Resolutions Committee: Alabama Alfred A. Smith Alaska John A. Davis Arizona Ira B. Jorolman Arkansas Ross Blake California E. C. Voorheis Colorado George L. Nye District of Columbia James T. Lloyd Idaho Ravenel Macbeth Illinois Col. Warren R. Roberts Kansas P. F. Walker Michigan M. E. Richards Minnesota Carl Zapffe Nevada F. C. Lincoln New Jersey John Roach New Mexico E. B. Laidstone New York Edwin Ludlow Ohio C. O. Bartlett Oklahoma S. L. Wilkins Oregon R. M. Betts Pennsylvania W. A. McCutcheon South Dakota Eben W. Martin Texas E. F. Knotts Utah A. G. Mackenzie Washington Sidney Norman West Virginia John Laing Wisconsin O. C. Irwin I think that completes it. The General Resolutions Committee will meet at 1.30 o'clock in the room next to the Old Colony Club Rooms in the Planters' Hotel; it is marked on the door "Committee on Resolutions." I hope that all the members of the committee will meet promptly at 1.30 o'clock and proceed to elect a chairman and a secretary. If you desire, I will be glad to meet with you and give you some little information as to how we would like to have the resolutions handed in, in order to avoid confusion in the secretary's office. THE AMERICAN MINING CONGRESS 15 MR. JAS. T. LLOYD: Mr. Chairman, would it not be well to make that at 2 o'clock instead of 1.30? SECRETARY CALLBREATH: There are three other meetings at 2 o'clock; two are in the Planters' Hotel and one in the Statler in fact, there are four other conferences at that time. MR. MACBETH: Could not the members of this committee retire at this time and organize? You need only one man from every State dele- gation. SECRETARY CALLBREATH: That rests with the committee itself. There is no necessity for their organizing now, because as yet no reso- lutions are available or have been submitted, so there is no necessity of immediate consideration of that matter. We will change the time of meeting until 2 o'clock, to meet the suggestion made. The committee will meet at 2 o'clock in the room on the second floor of the Planters* Hotel, marked "Resolutions Committee." Joseph A. Holmes Association I have a telegram .from Doctor Day, which I am sure you will be interested in: "/. F. Callbreath, Secretary, American Mining Congress, Planters' Hotel, St. Louis: "Heartiest congratulations on the great meeting of The American Min- ing Congress now opening. I am kept away because starting a Scotch shale plant, which functions beautifully. Have mailed report on Joseph A. Holmes Safety Association for you to read, stating that, although collection of funds was suspended during the war, the Association is now actively fulfilling its purposes of promoting safety in all kinds of mining by two means first, recognizing personal heroism of mining men; second, awarding recognition to those who develop ideas of value in increasing safety. "Under the presidency of Dr. Manning, a fund of over $10,000 has already been collected, and the interest has allowed the bestowing of the Association's gold medal and diploma to the following 15 miners for undaunted heroism: "Neal Brennan and William G. Mitchell, who died while attempting rescue of two imprisoned miners in the Anaconda mine fire of February 14, 1916, when 21 men were lost. Granite J. Frowen and Thomas Cooney, for heroic work in the same mine fire; they led a party that saved 15 lives. Lewis Meridith Jones, who directed a rescue crew at the Bar- racksville (West Virginia) fire, and gave his life. Manus Dugan, who saved 27 men in the mine disaster at Butte, and died trying to save more. "John Miner, Thomas Jones, George Washington Keith, Henry Clay- Turner and Adam B. Mitchell, for work in the Havaco mine explosion, West Virginia. Samuel Hardy and Clyde Foltz, who died endeavoring- to rescue six men in Mount Braddock fire, Pennsylvania. Michael Soft Check, Frank Krum and August Klaus, who rescued two men in the above fire when they knew that two rescuers had died attempting the same rescue. They were taken out unconscious, but recovered. Seven 16 REPORT OF PROCEEDINGS of the heroes in the above awards died. In the future the awards will be made on as far-reaching search as the funds will permit. "The Association publicly recognizes one mining local in West Vir- ginia which sets an example of a contribution every month to this Association. "With hearty good wishes for the success of the Congress, "Yours faithfully, "DAVID T. DAY." (Complete report will appear on page 293.) MR. LLOYD: Mr. Chairman, as a member of the Resolutions Com- mittee, we have agreed that, if satisfactory to the Convention, the Reso- lutions Committee will meet at 3 o'clock at the same place, next to the Old Colony Club Rooms. MR. .A. A. SMITH (Ala.): Mr. Chairman, I notice that Senator Voorheis is chairman of the War Minerals Conference, which meets at 2 o'clock. There seems to be a conflict of -time. I want to attend the War Minerals Conference, which meets at 2 o'clock. CHAIRMAN WELLS : That is an impossible situation to avoid, be- cause we have so many of these other conferences to hold that it is im- possible to escape having on some mornings and afternoons two meet- ings at the same hour. But so far as the work of the Resolutions Com- mittee is concerned this afternoon, I think it is nothing more than organizing, and I think that is the reason that some of the members have suggested that the first meeting be held at 3 o'clock, so that you can attend the beginning of the War Minerals meeting and the Gold Conference. If there is no further objection, the first meeting of the Resolutions Committee will be at 3 o'clock in Parlor "A," adjoining the Old Colony Club, at the Planters' Hotel. The Anthracite Industry We are now privileged to listen to an address by Mr. E. W. Parker, director of the Anthracite Bureau of Information, of Philadelphia, Pa. [Applause.] (Mr. Parker's address, "Labor Conciliation in the Anthracite Industry," will appear on page 309.) Director U. S. Geological Survey CHAIRMAN WELLS : Dr. George Otis Smith, director of the United States Geological Survey, will now address us on "Our Industries' Part." (Dr. Smith's address will appear on page 317.) Dr. Smith concluded with the remark: If I were allowed only 10 words before this audience, these would be the 10 words : "A 30-hour week is the ailment, not the cure." Now, gentlemen, having preached my sermon, I will give out my text: "Exodus 20, Chapter 20, Verse 9 American version: "Six days shalt thou labor and do all thy work." [Applause.] THE AMERICAN MINING CONGRESS 17 CHAIRMAN WELLS: You will readily appreciate the causes which have detained Senator Poindexter in Washington and made it impossible for him to speak to you today, as indicated on the program. He, how- ever, advises us that he quite confidently expects to be with us the latter part of the week, when, of course, a place will be made for him in the regular program. I am asked by the St. Louis Committee on Arrangements for this Con- vention and its attendant functions to remind you all of the necessity of furnishing information at our secretary's office, at the Planters' Hotel, in regard to the number who will attend the dinner on Wednesday. And that you will also cause information to be conveyed in regard to the number of ladies who will attend the ladies' dinner and reception at the Hotel Statler on Wednesday at 6 o'clock. This is a mere kind- ness and courtesy to our hosts, who undertake to arrange these matters for us. We must advise them in due season in order that they may properly prepare. Under the rules of this Convention, all resolutions must be in writing, presented to the Convention by the secretary, and referred to the Com- mittee on Resolutions without debate. The purpose in having resolutions so offered and read to the Con- vention is to enable all delegates to be advised of the character of reso- lutions that have been offered and that are to receive the consideration of the Resolutions Committee. The proper place to debate those resolu- tions is at the outset, at least, before the Resolutions Committee. Oppor- tunity for such discussion and debate will be furnished at the pleasure of the chairman of the Resolutions Committee, upon application at any time the Committee is in session. There is no discussion of resolu- tions at the time they are introduced at these sessions of the Con- vention. They will be discussed and debated after such resolutions have been favorably passed upon by the Resolutions Committee and offered here in its report. The secretary will read such resolutions as have been offered. Murder of Americans in Mexico Secretary Callbreath read the following resolutions: WHEREAS, On repeated invitations of the Mexican Government, prior to 1910 and since, American mining engineers, operatives and employes in large numbers have joined in the industrial de- velopment of Mexico, to the great benefit of the Mexican people generally, pursuing their profession in lawful and orderly man- ner, with full regard for the rights of the Mexican people and for their obligations as American citizens to their own Govern- ment; and WHEREAS, During recent years of revolution and disorder these Americans, citizens in the peaceful pursuit of their profession, and in the guardianship of properties intrusted in their care, have suffered great losses and personal indignities and injuries ; and WHEREAS, Forty-five of these Americans, citizens so engaged and so persecuted, were known to have suffered the extreme penalty of death at the hands of the Mexican nationals; and 18 REPORT OF PROCEEDINGS WHEREAS, On January 10, 1916, nearly three months after the Government of the United States had recognized as responsible and de facto the existing Government of Mexico, 18 American members of the mining engineering profession, returning to Mexico on the express invitation of the Mexican Government and under assurance of full protection from rebellious or dis- orderly sources, were expressly denied military escort through a section known by the Mexican Government to be overrun by a rebellious faction, and were set upon and ruthlessly murdered at Santa Isabel, Chihuahua, by Mexican rebels; and WHEREAS, In none of the above cited cases have the murderers of these Americans been avenged, nor apparently has serious effort been made to punish the perpetrators thereof; and WHEREAS, No steps so far taken by the Government of the United States have been provided the constitutional protection which all law-abiding American citizens of right expect; there- fore, be it Resolved, That The American Mining Congress, assembled in annual convention at St. Louis, Missouri, hereby protests to the Department of State of the United States against further dis- regard by the American Government of conditions in Mexico that make it unsafe for American mining engineers, operatives and employes to go there in the practice of their profession and for the care of business interests to them; and be it further Resolved, That we recommend that the Government of the United States immediately take such steps as will insure that the constitutional rights of American citizens shall protect them on our borders and go with them throughout the world, and that every American residing or having property in any foreign country shall receive the full protection of the United States Government both for himself and for his property; and be it further Resolved, That a copy of these resolutions, together with the names, in so far as obtainable, of the 45 American mining men who are known to have been murdered in Mexico since 1910, and the circumstances, so far as obtainable, surrounding these mur- ders, be forwarded to the President of the United States, and to the Secretary of State, and to the Congress of the United States, through the Vice-President and the Speaker of the House of Representatives. CHAIRMAN WELLS : You have heard the resolution which has been referred to the Resolutions Committee. SEftOR E. E. MARTINEZ (Delegate Representing Mexico) : I am the accredited representative of the Mexican Government, and I would beg of you to give me a chance to put forth our side of the question. CHAIRMAN WELLS: I meant to say to you that opportunity to discuss this resolution will be open to you or anyone. Debate on the resolution itself in this Convention will be held only after the resolution has been passed by the Resolutions Committee. At this time we have no discussion of these resolutions. We will read the resolutions that are going to the Resolutions Committee, so if anyone desires to be heard he has due information that it is going to the Resolutions Committee. I feel that I am doing no more than voicing the feelings of the members, that you will have every opportunity to be heard. THE AMERICAN MINING CONGRESS 19 SECRETARY CALLBREATH : It seems to me that on a matter of so great importance, on which the whole Convention desires complete infor- mation, that the gentleman ought to have an opportunity to speak before this whole body concerning his views. I want to make a special request, or a motion, that Senor Martinez be given time at the evening session to say what he has to say on the subject. (Motion duly seconded by Mr. Bartlett.) MR. SEAMAN: In giving the gentleman time to present his side of the case, I think others should be given time to present their side, so that the Convention may have both sides. MR. McCUTCHEON: Do I understand that this is to be presented to the Resolutions Committee and the matter debated upon whether the Resolutions Committee gives its approval or not? I do not think this Convention should take up its time in discussing a question until after it has been discussed by the Resolutions Committee. CHAIRMAN WELLS : It always happens that a number of resolutions are offered of a character not to commend themselves to the Resolutions Committee. MR. McCUTCHEON : I think the motion is not in order. CHAIRMAN WELLS : I think you can suspend the rules, if you desire to do so, by proper vote. Objection to Discussion MR. MACBETH: Mr. Chairman, if you inaugurate proceedings of this character on this subject, you will find that similar requests will be made on other subjects, and you will never know where to stop. I would suggest that if it goes through and is adopted by The American Mining Congress, when the proper time comes they can present their views. CHAIRMAN WELLS: As I understand the motion, it is that the rule with respect to discussion or debate on resolutions be suspended in this instance, to the extent of permitting Senor Martinez to address the Convention this evening at 8 o'clock. That motion has been duly made and seconded. MR. LLOYD: Mr. chairman, I make a point of order. That motion is not in order under the rules. SECRETARY CALLBREATH: I did not intend exactly to make a motion; I intended that the Convention should invite Senor Martinez to present his views this evening, but it seems to me, under the circum- stances and I think the gentlemen are right on their points of order that I had better, with the consent of my second, withdraw my motion from the House, with the understanding that, if this resolution is pre- sented by the Resolutions Committee, the gentleman then be given an opportunity to be heard. [Applause.] (Mr. Bartlett, who seconded the motion, consented to withdraw his second.) (Secretary Callbreath read other resolutions.) 20 REPORT OF PROCEEDINGS Telegram from President National Coal Association SECRETARY CALLBREATH: We have a telegram, just received, from Mr. H. N. Taylor, president of the National Coal Association, wha was expected to have been present at the meeting today. The telegram is of considerable interest, and I will read it to the Convention. WASHINGTON, D. C., Nov. 17, 1920. American Mining Congress, St. Louis, Mo. : Greatly regret my inability to attend conference of The Amer- ican Mining Congress, coming just at this time, when the industrial welfare of the nation is face to face with the coal crisis. I trust your organization will go strongly on record in the interest of right and justice. The wage scale matters here are of such important nature that many of the operators of the country will be unable to attend, but they join me in sending regrets. My address, which I would have given personally, is herewith transmitted to you for reading before the Convention. Can't Fool All the People Abraham Lincoln once said : "You can fool part of the people all of the time ; all of the people part of the time ; but you cannot fool all of the people all of the time." The United Mine Workers have been fooling all of the people for a long time. Certainly, when we are threatened with starvation by a coal strike at this time of the year, under the existing conditions, it is time for the intelligent public to wake up and take necessary steps to protect the best interests of all the people. Mine Workers' Demands Increase Price The history of the United Mine Workers, from their inception up to the present time, shows that at every conference they have always gained part of their demands on working conditions, the objective being to increase the cost of coal, even if they did not each time obtain an increase in wages. Union method in the United States has drifted from honest effort at collective bargaining at its inception to an organized labor autocracy that has placed a premium on inefficiency. Conservatives Fear Radicals The radicals ride over the conservatives, and the miners of today are autocratically governed, through fear, by their radical officials and business agents. The check-off system means an absolutely closed shop, the conservative miner being forced to contribute excessive dues at the dictation of the radical officials, and to pay fines if he offers resistance to their orders, no matter how unreasonable they may be, thus placing ample funds in the hands of the radical officials of the United Mine Workers in demanding an increase of 60 per cent, on the present 8-hour scale, and then proposing to work only a 6-hour day for five days a week for this increased daily rate. Six hours, bank to bank, means about five hours' actual work. No double shifts to be allowed, with time and a half for overtime and double time for holidays and Sundays. Their proposition makes Saturday a holiday or double time. Example of Demands An example of this demand is as follows : The price now being paid for common underground labor, such as driving a mule THE AMERICAN MINING CONGRESS 21 and shoveling rock, is $5 for eight hours' work, or 62^ cents per hour. This, plus 60 per cent., would make $8 for the 6-hour day, of five hours' actual work, or $1.60 per hour, or 156 per cent, advance. For work on a Saturday or holiday it would be double time, or $16 per day, or $3.20 per hour for the actual hours worked, or an advance of 412 per cent. Soviet Doctrine Introduced The radical officials well know that considerable work cannot be done with the mines in operation, forcing the operator to pay double time or operate only four days to avoid the tribute which is in line with this object to reduce production as part of their Soviet doctrine. We can never remedy the high cost of living so long as there is a continued effort to increase wages and decrease production from every direction. Naturally, an in- crease in wages with decreased production must mean an increase in the cost of every product. In the past, many good people have felt and thought that the Lord, in His goodness and mercy, put coal in the ground, and all that was necessary was to take it out and count their money. Statesmen, both state and national, have been intimidated by radical officials of the United Mine Workers, from a free position in legislating for all the people under the erroneous impression that such leaders controlled the political vote of the miners. A reflection on the intelligence of the American miner, for the great majority of foreigners in the mines are not citizens and voters who do not know what they are striking for; the largest per- centage of them do not understand English, and do not care to learn, as they come to this country to make money, and in a few- years go back to "homeland" to live in comfort on their Ameri- can savings. Millions of dollars yearly are sent to foreign coun- tries by these foreign miners. "Honest-to-God" Americans We do not want Americans with a foreign handle tacked on to their Americanism. It is time for the people to stand up for the "Honest-to-God" American. Our nation was built on the solid foundation of honesty, equality, and justice, and equal oppor- tunity for all, and we cannot allow class legislation, Bolshevism, anarchy, or radical union leaders, running amuck, to undermine the solid foundation our forefathers built. Radicalism on the part of labor or capital cannot be allowed to rule the country or be allowed to possess the power to oppress all the people. Force Public Tribute The organized miners' strike is an attempt to force a huge tribute from American people on the cost of their fuel, and mak- ing an attempt in winter is their strategy to stop the wheels of industry and transportation, and force submission of the defenseless public through hunger and cold, and the sufferings of women and children will arouse no sympathy in the heartless Juggernaut of radical unionism. The miner in the United States today is the highest paid laborer in the world, of its class, and his demands now made, more than doubling the cost of fuel, are unreasonable and more than a suffering public can endure. [Applause.] (Signed) HARRY N. TAYLOR. (Assistant Secretary Burns made a number of program announce- ments.) 22 REPORT OF PROCEEDINGS CHAIRMAN WELLS: You will naturally employ your time this afternoon as your special interests may suggest, but let me urge you, in all sincerity, at least to attend one or two of these special meetings and conferences. We need you; those who are conducting these special conferences and discussions need your aid, suggestions and criticisms, if we are to do effective work and get it done within the limited time we have. If you will take the afternoon because it does not happen to be a formal session as a whole for recreation about the city, you do us and yourselves some injury, because we are here to do serious work, if you will help us to do serious work, and we want your criticism as much as anything else. The General Convention will now stand adjourned until 8 o'clock this evening, in this hall. FOURTH GENERAL SESSION EXPOSITION HALL, TUESDAY, NOVEMBER 18, 8 P. M. The meeting convened in Exposition Hall at 8 P. M., Mr. Geo. M. Taylor, president of the Colorado Metal Mining Association, presiding. CHAIRMAN TAYLOR : The meeting will please come to order. There will be some resolutions read, and, without debate, will be referred to the Committee on Resolutions. The secretary will read those resolutions. SECRETARY CALLBREATH: May I make a few announcements? The Resolutions Committee of the Gold Conference will meet at the Statler Hotel tomorrow morning at 10.30 o'clock, and will be glad to hear any resolutions you may have to offer. (Secretary Callbreath read resolutions.) CHAIRMAN TAYLOR: These resolutions will go to the Resolutions Committee without debate. We will have a report of the Committee on Standardization of Min- ing Equipment by Colonel Roberts. (Report will appear on page 326.) The Russian Radical CHAIRMAN TAYLOR: The next thing on our program will be an address on "The Russian Radical As I Found Him" by Mr. George W. Simmons, of this city. Mr. Simmons, for two years, was the regional director for the Red Cross in Southwestern Siberia, and he is going to tell you about the Russian as he found him over there at that time. I have the honor to introduce Mr. Simmons. [Applause.] (Mr. Simmons' address will appear on page 343.) The Ruling Passion CHAIRMAN TAYLOR: Mr. Allen Walker, manager of Foreign De- partment of the Guaranty Trust Company, of New York City, has THE AMERICAN MINING CONGRESS 23 traveled here to speak to us this evening, and will talk to you on the subject "What is the Matter with America?" MR. WALKER: I did not know when I left New York that Mr. Simmons was going to address you this evening on the subject which he has just covered. It seems to me rather odd that our subjects should be so closely related. I am not going to try to impose upon you another address on Bolshevism or radicalism, but I am going to ask you to join with me for a moment in analyzing some of the conditions which now exist, to see if you agree with me in our effort to discover "What is the Matter with America?" (Mr. Walker's address will appear on page 351.) CHAIRMAN TAYLOR: After the talk on Bolshevism in Russia by Mr. Simmons, and Mr. Walker's talk on our troubles in America, I do not think we could have anything more fitting for the balance of the evening than the talk we are to have from, may I say, Ralph Connor, whom you all know, instead of the Rev. Charles W. Gordon. I do not think there is anyone within the sound of my voice who has not read at least one of his books, and I know you sat up late to finish it. Winnipeg Soviet Movement We are to be doubly honored by Dr. Gordon. He has consented to stay over tomorrow night and to speak to you at the dinner tomorrow eve- ning on industrial conditions in England, from where he has just recently returned, and is familiar with their labor troubles over there. Dr. Gordon is the pastor of a church in Winnipeg. I think last May it was that we all read in the newspapers the labor troubles they were having up there which continued through several weeks, and I think for a short period the "Reds" took over the town and ran it for the good citizens. Dr. Gordon is going to speak to us tonight on that subject "The Red Menace." I have the honor to introduce Dr. Gordon to you. Dr. Gordon's address will appear on page 365.) CHAIRMAN TAYLOR : The secretary has an announcement to make. (Assistant Secretary Burns announced a number of very important changes in the program.) INFORMAL DINNER TO DELEGATES PLANTERS' HOTEL, WEDNESDAY EVENING, NOVEMBER 19 The most delightful event of the Convention week was the informal dinner given to delegates in the capacious dining room of the Planters' Hotel on Wednesday evening. The affair was under the direction of the St. Louis Entertainment Committee, a sub-committee of the general com- mittee, and the details were most complete. Several hundred delegates and a fair sprinkling of St. Louis business men, acting as hosts, filled the dining room of the Planters' Hotel, famed for its hospitality. 24 REPORT OF PROCEEDINGS The Entertainment Committee had prepared several good musical num- bers and surprises, and many of the delegates are still looking for the appearance of the "moving picture" in which they participated. The chairman and toastmaster was Capt. Robert E. Lee, of St. Louis, a polished raconteur, whose delightful handling of the occasion will long be pleasantly remembered by those fortunate enough to be present. A stenographic report of the evening's program is inadequate to describe the atmosphere of the premier event of the Twenty-second Annual Con- vention. After the guests had been "filmed" and dinner served, Toastmaster Lee said: Gentlemen of The American Mining Congress, Gentlemen of St. Louis, Our Distinguished Guests at the Head Table : This is the first time that St. Louis has ever had The American Mining Congress. We have looked you over, you know, much in the attitude of the Irishman who was arrested for beating up a fellow. The policeman pulled him up and said: "What in the world are you beating that man for?" He said: "The dirty, low-down scoundrel, he called me a rhinoceros four years ago." The policeman said: "Well, what are you beating him up for now?" The Irishman replied: "I never saw a rhinoceros before." [Laughter.] We have never seen The American Mining Congress before, but we have seen you, and we know you are all right. Down in the Southland and nearly everybody in St. Louis was born in the South, or his grandfather was they have a saying when they want to compliment a man that "he is our kind of folks," and we have come to the conclusion here in St. Louis that you are "our kind of folks." I think that is worth applause. [Laughter and Applause.] We have the Southern Hotel in perpetuity and the Planters' Hotel in perpetuity for your use each year hereafter. Your president, on my left, says he votes for it. All who are in favor of it will please signify by saying, "Aye." [Cries of "Aye!"] I thank you. [Laughter.] Spirit of Fellowship St. Louis feels toward you, gentlemen, like this other story they tell about the old fellow who was lying on the curb in front of the St. Louis Club, to which Governor Gardner belongs but this story is not on Gov- ernor Gardner. The rain was falling and he was lying there with the water flowing under his right ear, and he saw two distinguished gentle- men coming out of the Club. He said: "Gentlemen (hie), won't you please be so (hie) kind as to help a poor (hie) fellow get upon his (hie) feet?" And one of the gentlemen said: "Old top, I'd like to do it (hie) the best in the (hie) world, but at this moment its (hie) physically impossible. But to show you (hie) my heart's in the (hie) right place, I'm going to come and (hie) lay down with you." [Laughter and applause.] We started out to get this Convention in St. Louis a long time ago. This little shrimp on the right (who runs the Convention Bureau in St. Louis), Hatfield the only description I can think of for him is the one that Mr. Roosevelt brought home from Africa, the "sittzy fly" so Hat- THE AMERICAN MINING CONGRESS 25 field brought your Convention here mostly by hook, it might have been by crook, and here you are. Now, our attitude toward you is this: A negro soldier was down here at Little Rock; he came walking down toward the sentry, and the sentry said: "Halt, where are you going?" He said: "I'm going into Little Rock." The sentry said: "Where is your pass?" He said: "I ain't got no pass." He said: "Then you ain't going to Little Rock." He said: "Oh, yes, I is!" He said: "Look here, boy, you ain't going no place unless you go on the other side of this gun." So the other negro got out his razor, rubbed it up and down, and said: "Listen to me, boy, listen to me. I got a mother in Heaven, a father in Hades, and a girl in Little Rock, and I'm going to see one of them tonight" [Laughter.] We had to have you, if we had to pull a razor on you to get you. Now that you are here, we hope that you have been at least nor- mally happy in the St. Louis way. The St. Louis way of being happy is just simply jubilantly so all the time, that is our normal condition. We never get down to serious things unless there is a strike in the Illinois coal mines; then we shiver all the harder. I want you gentlemen to get out of the attitude that I have found in a little piece of poetry here. Don't get into this. I note so many gentle- men about me with silvered hair, like my own, who seem to have the cares of the nation on them. I want you to listen to this and bear in mind the rest of the evening what may be coming to you. King David and King Solomon led joyous, happy lives, Surrounded by luxuries, and ladies, friends and wives ; But when old age came creeping on, compelled by conscience qualms, King Solomon wrote the Proverbs and King David wrote the Psalms. [Applause.] Telegrams of Regret There are some telegrams here which this other "sittzy fly" Burns has asked me to read to you gentlemen. With your permission, I do it. Please convey congratulations to The American Mining Con- gress on the discussion and action before the Congress, and my best wishes for continued success of your meeting. I very greatly regret that I cannot be with you Friday, as suggested. The stand of your Congress on sound American policies will be appre- ciated by the country. FRANK W. MONDELL. [Applause.] Thank you for your kind invitation to address the Congress, but important official duties, including the coal strike, prevent my absence from the office at this time. Best wishes for a pleasant and profitable Convention. J. B. A. ROBERTSON, [Applause.] Governor of Oklahoma. Votes yesterday and today on the treaty and delay in final vote unfortunately make it impossible for me to reach St. Louis before adjournment of the Mining Congress. I regret this very much, 26 REPORT OF PROCEEDINGS as I looked forward to participating in this gathering of business leaders. Upon such men as these, composing this Congress, largely rests the responsibility of preserving Americanism and combating the international communistic movement. Open revo- lution is freely preached and backed by ample funds. Surrender of American independence to European control is officially advo- cated. Strong measures are necessary to bring us back to the great principles upon which our prosperity is founded. Protection of American citizens in Mexico and elsewhere should be demanded. The right to work either in or out of a labor union and the security of private property should be guaranteed by the full power of the Government. These principles lie at the foundation of our institutions. I feel the influence of The Amer- ican Mining Congress will be exerted in their support. MILES POINDEXTER. [Applause.] When I think of this League of Nations' vote in Congress and all the row we have been having for some time, it makes me think of the story of the two Hebrews who met on Yom Kippur, their New Year Day. Silverstein said: "Well, Epstein, it is Yom Kippur; you know how we feel forgive and forget on this day. What do you say?" Epstein said: "Veil, if you feel that way, I don't mind. You have done some things, but I will forgive and forget. I wish you everything today that you wish me." Silverstein said : "There you go again, starting it all over." [Laughter.] Gentlemen, I am about to introduce to you the gentleman who presides over the destiny of the State of Missouri. Somebody was mean enough at a recent banquet to say of him that "he is the best Governor that Missouri has." [Laughter.] Well, now, I will go farther, as we are both Democrats, he and I, and I will say that "he is the best Governor that Missouri has had." [Applause.] The Governor is a man who, too, has gone through the trials and tribulations and troubles of strikes and labor difficulties. He also, like you, has made money, and he is in thorough sympathy with you; he also, I am told, is a profiteer, like you. So the Governor of the fourth State in the Union, the best State that I have ever lived in and I was born in Kentucky [laughter] is Governor Frederick D. Gardner, of Missouri. (Rising greeting extended to Governor Gardner.) (The Governor's address will appear on page 374.) A Truthful Man TOASTMASTER LEE: Gentlemen, like you, I have listened to the silvery words of our Governor. I do not think there has been any doubt in your minds about anything he has said, except his fulsome praises of Missouri, ,and I do not want you to take them in the wrong light. The Governor is an absolutely truthful man. The story that occurs to me, illustrating this, is of the Hebrew who came up to another Hebrew and said : "Ikey, I never had such a wonderful business." Ikey said : "Yes, I know." He said: "My sales last month were bigger than I ever had before." He said: "Veil?" The first Hebrew said: "Make a guess how THE AMERICAN MINING CONGRESS 27 much my sales were." Ikey said: "How could I guess?" "Veil, make a guess." "I can't." He said: "Veil, half." "Vat, half vat?" Ikey said: "Half of anything you say, you hound." [Laughter.] I am reminded of the Arkansas fellow who owned a railroad from his town out to the mine one mile. He called it "The Arkansas and Great Southeastern Railroad." So he wrote a letter to the president of the Wabash System: "Sir, I have the honor to enclose you herewith an annual pass over my railroad, the Arkansas and Great Southeastern Railroad, and I would thank you to return the courtesy by sending me a pass over the Wabash System." So the president of the Wabash had his private secretary look in the railroad guide, and there was no such road. He sent a Secret Service man down there to find out who this swindler was. When the Secret Service man got down there and saw the road, and saw the mine a mile away, he said: "You ought to be ashamed of yourself. The idea of your writing to the Wabash for a pass over their wonderful system from New York City way out to the Far West in exchange for a pass over this thing of yours. What do you mean?" "Well," said the Irishman, "I'll tell you one thing. Your railroad may be longer than mine, but, by golly, it's no wider." [Laughter.] International Delegates I do not know if you gentlemen have realized yourselves the extent of this great Congress which you have brought here to St. Louis. It has been suggested to me by Mr. Callbreath and Mr. Burns that I tell you something that will interest you. There are seven countries represented at this Congress: France, Sweden, Russia, Canada, Belgium, Mexico, and the United States of America. I am going to ask two gentlemen who represent these foreign countries if they will stand for a moment that you may give them the applause they deserve for being with you. Monsieur Audoin, of France, a member of the French High Commission. (Rising greeting extended Monsieur Audoin.) Monsieur Audoin is a consulting engineer in his own country, in the steel industry. Another gentleman, who represents Sweden, Mr. N. V. Hansel, a min- ing engineer of that country. (Rising greeting extended Mr. Hansel.) A third gentleman, who comes farther than all of them, and who will be introduced to you again later for an address, Mr. Foss, of Russia. (Rising greeting extended Mr. Foss.) It is my private opinion that other foreign delegates have gone to the theatre with the ladies. [Laughter.] The next speaker is a gentleman for whom I have the deepest sym- pathy, a Congressman from Kansas, who has been over in the National Legislature wrangling, fighting and rowing over this aforesaid League of Nations and other things. I am reminded of a story they tell which might illustrate the posi- tion you have been in: A man met a friend in front of the great 28 REPORT OF PROCEEDINGS cathedral, and just at that moment the wonderful bells began to ring, "Ding, dong, dong, dong, ding, dong, dong." He said: "Old man, when I hear those bells it brings me back to the days of my boyhood, to my dear mother, who brought me to this church by the hand. We entered those sacred portals, and it brings back a deep, solemn feeling to my heart." The other fellow said: "I can't hear you for them d d bells." [Laughter.] Address by Congressman Strong May I have the pleasure then, gentlemen, of introducing to you a gen- tleman of the National Congress, who is a member of the Banking Com- mittee. He has not been given a topic ; therefore, he has the whole earth to roam over including Canada. The Hon. John G. Strong, Representa- tive from Kansas. (The address by Mr. Strong will appear on page 379.) TOASTMASTER LEE : The difficulties of a Congressman are many and manifold, as you have heard the gentleman say. They remind me of the story they tell of the minister of the Gospel who was suddenly called in to preach a funeral sermon because the regular preacher had had an automobile accident and was injured. He came into the home of the bereaved family without any knowledge of the sex of the deceased person; so he started off, as ministers will, and said: "We have come here today to say a last word for our departed friend" and then he remembered that he had to know the sex to go on and he leaned over and said, "Brother or sister?" to a lady who seemed to be a member of the family. And she said, "No, cousin." [Laughter.] I have been asked to make an explanation or an apology to you gentle- men for the enforced absence from this Convention of two of our St. Louis gentlemen in the mining industry, Mr. Brewster and Mr. Kavanaugh. I know that they have both put in hours and days in arranging this Con- vention, and only at the last moment they were called to Washington, and have not been permitted to come back home to greet you gentlemen. It is with great regret they have telegraphed that they cannot be here. The next gentleman I may introduce to you for some announcements. I am reminded of the story they tell of the railroad president who was riding along in his private car. A fellow came walking by one of the employes of the road and the president leaned out and said: "I say, old man, how long have you been on this road?" He said: "I have been here 40 years." "Forty years, is that so? Have you ever been pro- moted?" "No, sir, I have the same job I had 40 years ago." "Is that so? That ought to be looked into. What do you do?" He said: "You know that fellow that goes along with a hammer and taps the wheels, do you?" He said: "Yes, I know him." "Well," the old man said, "I helps him listen." I do not believe we can bring that accusation against the ever busy secretary of this Congress, Mr. Callbreath, who wants to make some announcements. SECRETARY CALLBREATH: Mr. Toastmaster and Gentlemen: I want to urge you to be present more promptly at the meetings. We THE AMERICAN MINING CONGRESS 29 have two sessions in the morning and two in the afternoon, and we urge that you be in your seat promptly at the time appointed. I want also to say that the evening session of the Convention will be dispensed with tomorrow, and we shall devote the whole evening to a discussion of the business affairs of The American Mining Congress. The meeting will be in the Red Room of this hotel, and I want to say to all of you who are members of The American Mining Congress that we want you to come and help us work out our problems. We shall elect directors, and we shall have a discussion of the plans by which we may put into effect the resolutions you gentlemen adopt. May I urge you gentlemen to be present at all meetings and be present at 7.45 o'clock tomorrow evening? Those speakers on the program for tomorrow evening will be passed over until the Friday session. Russia and America TOASTMASTER LEE : I am about to present to you the distinguished gentleman from Russia, and to him I want to say that our sentiment toward Russia, the sentiment of America toward Russia, is a very warm one. We want you to understand, sir, that our attitude toward your coun- try is not expressed in the story they tell of the Britisher who came into a book store kept by an Irishman and said : "Have you that book 'Who's Who and What's What,' by Richard Harding Davis?" The Irishman said: "No, we haven't got that, but we have one that is better." He said : "Yes, what is that?" "'Who You Are and What You Owe,' by R. G. Dun & Company." [Laughter.] May I present, then, the chairman of the Russian Mining Commission under the Kerensky Government, a gentleman who is interested in plati- num, in copper mining, and in the making of shells, a miner and a manu- facturer, the Hon. F. F. Foss? (The address by Mr. Foss will appear on page 385.) TOASTMASTER LEE: I feel convinced, after hearing the distin- guished gentleman from Russia, that if Russia does not do one thing to straighten herself out, she will do another, and let me illustrate with another story: A St. Louis coal mining man went to Kansas City. When he got there some of the fellows in Kansas City had him out (this, of course, was before July 1) during the afternoon, and when he got back to the hotel he found that he had missed the last train home. He hunted up a public stenographer in the hotel and said: "Young lady, I want to write a letter home to my darling wife." "Very well." She got the address, and he said : "My darling wife I sit myself down to write you a few lines to let you know that I have been exceedingly busy all afternoon, and, un- fortunately, I have missed the train home, and will not be in your darling arms in the morning, as I had hoped. Instead, therefore, I will take the train for Osawatomie, Kansas." She said : "I beg your pardon, but how do you spell that word 'Osawatomie'?" "Don't you know how to spell that? Well, what do you know about that don't know how to spell Osawatomie, 30 REPORT OF PROCEEDINGS and you live right near it! Well, cut it out and 1*11 go to Omaha." [Laughter.] The next speaker, a distinguished gentleman from Canada, I under- stand, is of the Presbyterian faith. The story goes that the Presbyterian minister was exhorting his congregation and he said: "Oh, my friends, avoid hell, avoid hell! Oh, the terrible thought of the future to those who have not lived a right life! My friends, hell is paved with cham- pagne, chorus girls and automobiles." A voice in the back said : "0 death, where is thy sting?" [Laughter.] I see from the laughter that none of you are afraid. Attitude of British Labor The gentleman whom I shall have the pleasure of introducing has just been studying labor conditions in England. May I present to you, then, Maj. Charles W. Gordon, of the 43rd Cameron Highlanders, of Canada? (Rising greeting was extended to Dr. Gordon.) (The address by Dr. Gordon will appear on page 392.) TOASTMASTER LEE: Gentlemen, as I heard the wonderful words of this man I seemed to remember the writings of Ralph Connor, and this is Ralph Connor. [Applause.] I said to you gentlemen some time ago that this Congress was a bigger Congress than you thought it was, and I said that there were seven coun- tries represented here. It is even bigger than that; I learn from your assistant secretary that there are eight countries here, and I shall ask the gentleman, if he is still present, to stand that we may give a greet- ing to Bulgaria in the person of Mr. Constantine Stephanoff, consulting engineer in the Bureau of Consulting Engineers. (Rising greeting extended to Mr. Stephanoff.) Now, gentlemen, we are coming to the close of our banquet. I hope we have had a good time together. The ladies will be waiting for you gentlemen at the Statler Hotel. I will close the banquet with this story, which I have told to illustrate what it does not illustrate here tonight that so much can be said and so little said. We have had a feast of reasoning and flow of soul tonight. (Toastmaster Lee told the story of the Chinaman, the yellow dog and the police magistrate mostly in Chinese a language not understood by the official reporter, a fact regrettable in the extreme, as it sounded as if it was the best of the evening.) The distinguished president on my left said he was going to take a memorandum of a story or two that I told tonight. I defy him to take that one down. [Laughter.] Gentlemen, we are at the end of our evening. It has been a mighty pleasant one for me; it is my hope that it has been for you. I bid you "Good Night." THE AMERICAN MINING CONGRESS 31 FIFTH GENERAL SESSION EXPOSITION HALL, THURSDAY AFTERNOON, NOVEMBER 18 The meeting convened at 3 P. M. in the Exposition Hall. PRESIDENT WELLS: The Convention will be in order, and in the absence of the secretary, I will read you the resolutions which have been offered, which, you will understand, are simply read and referred with- out debate to the Resolutions Committee. (Resolutions were read by Mr. Wells.) MR. WELLS: It is my privilege and pleasure to introduce to you, as chairman of this afternoon's Convention, Mr. Alva C. Dinkey, presi- dent of The Midvale Steel Company, of Philadelphia. Mr. Dinkey is a loyal member and an active supporter of the work of The American Mining Congress, and it is a privilege to have him here with us. Uses of Explosives CHAIRMAN DINKEY: I appreciate that and I will do my best for you. We will now listen to an address by Mr. R. H. Summer, of the Du Pont Powder Co., Wilmington, Del., on the "Practical Uses of Explosives From a Safety Standpoint." (Mr. Summer's address will appear on page 407.) Physical Efficiency CHAIRMAN DINKEY: We have heard a very valuable paper. Our next address is on "Physical Efficiency Its Effects on Production," by Mr. E. Dana Caulkins, secretary of the National Physical Education Service, Washington, D. C. (Mr. Caulkin's address will appear on page 416.) MR. CAULKINS: I have given the chairman a brief resolution. I thought that if you were sufficiently interested, The American Mining Congress might want to go on record to some extent as regards physical efficiency. (Read resolution.) Effect of Prohibition DELEGATE : I would like to know what effect prohibition will have upon physical fitness. MR. CAULKINS: That is one question upon which I did not speak. Increase in leisure time has not yet proved itself an asset. In many cases it is a liability, and, it seems to me, with the elimination of liquor, which filled a big place in the life of the workman, helping to fill in his leisure time with damage to himself physically, we must find some means of stimulating and educating men and women so that they will fill in their leisure time without detriment. We should get hold of the children and train them so that they will use their leisure time in harmless ways- then we should have accomplished a good deal. [Applause.] 32 REPORT OF PROCEEDINGS CHAIRMAN DINKEY: Are there any questions? If not, I will say in respect to the resolution referred to by Mr. Caulkins that I think the com- mittee will concur in his views. Minerals Separation Case Our next paper is on "The Minerals Separation, Ltd., Situation," by Mr. George L. Nye, special counsel of The American Mining Congress, Denver, Col. MR. NYE: Ladies and Gentlemen: I have prepared this address in the form of a paper, and I shall take the liberty of reading it to you, not because I am not prepared to talk all the afternoon on this subject because I could easily do so but because it is a question with me of what not to say, and I, therefore, have carefully selected from the mass of material that which, it seems to me, will interest you most. Something Has Happened I regret very much that there are not more members of the Congress and more delegates present, because it is a matter which vitally affects every member of The American Mining Congress, from the Atlantic to the Pacific and from the Great Lakes to the Gulf. This American Min- ing Congress, you should know, is not a one-man proposition. It is the good old idea of "all for one and one for all," and this is a matter which interests the coal man and the salt miner just as much as it interests the metal miner, and it is a matter which everybody ought to pay atten- tion to, and which everyone ought to consider. We have got to consider it. It is a question of the whole mining industry of this country, and if we do not have a care, sooner or later the mining industry in this country is going to wake up to a realization of the fact that something has hap- pened. They are going to be in the situation of the Swedish witness who was put on the stand some years ago in a case against a railroad com- pany in the Northwest for personal injuries, and it developed that he was a friend of the deceased, and the counsel of the plaintiff, the executor of the estate, placed Eric upon the stand and said to him : "Now, Eric, I want you to just go ahead and tell everything that took place at the time Ole was killed." Eric drew a long breath and said : "Well, you see, Ole and I were walking along the railroad track and the train came around the curve. I stepped over to one side and let the train go by, and when I turned around I don't see Ole. I walked along a little way and I saw Ole's arm, and I walked a little farther and I saw Ole's foot, and I walked a little farther and I saw Ole's head, and I say to myself: 'My God, something must have happened to Ole'!" That is just the situation we are going to be in. We are going to wake up some of these days to the fact that something has happened to the mining industry if we do not pay attention to questions as important as this question of oil flotation. (Mr. Nye's address will appear on page 420.) (President Wells resumed the chair.) THE AMERICAN MINING CONGRESS 33 MR. H. W. SEAMAN: I would like to ask whether this splendid address will be printed in any of the publications? CHAIRMAN WELLS : It is my understanding that such is to be the case, but it will rest with the Convention itself and members of the Congress as to whether they desire to have the expense of printing all or part of it. MR. SEAMAN: It seems to me, there has been no more important contribution, in my memory of The American Mining Congress, than this address by Mr. Nye, and I think we should see that it has sufficient circulation. CHAIRMAN WELLS : I concur very heartily in what you say. If the members will authorize the expense, I am sure the officers will desire to have this printed. (Chairman Wells made several announcements regarding changes in program.) Federal Regulation of Explosives Mr. Clarence Hall, explosives engineer, of the Bureau of Mines, was then introduced to discuss Federal control of explosives. (His address will appear on page 441.) Minnesota Iron Mines CHAIRMAN WELLS : Our next speaker is Hon. F. A. Wildes, State Superintendent of Mines, Hibbing, Minn., whose topic is "The Minnesota Leasing System." (Mr. Wildes' address will appear on page 471.) Application of Transmission Mr. J. W. Ferguson, power engineer, of St. Louis, was introduced to discuss the modern methods of applying power. (His address will appear on page 462.) (Chairman Wells made announcements regarding program, whereupon the Convention adjourned at 5.30 P. M. until 10 o'clock Friday morning.) SIXTH GENERAL SESSION EXPOSITION HALL, FRIDAY MORNING, NOVEMBER 21 The meeting convened at 10.30 A. M. in Exposition Hall. SECRETARY CALLBREATH: Will you please come to order? We have a very crowded program today, and it will be necessary to work under quick action. The Resolutions Committee will occupy a good deal of your time, and you have a full program. I take pleasure in introducing to you the chairman of the meeting, 34 REPORT OF PROCEEDINGS Mr. Charles A. Stillman, president of The Rogers-Brown Ore Co., of Chicago. (Mr. Charles A. Stillman assumed chair.) CHAIRMAN STILLMAN: It gives me pleasure to introduce to you Mr. John A. Davis, governor of the Alaska Chapter of The Amer- ican Mining Congress, who will speak to you on the subject of "Alaska, a National Opportunity," followed by a moving picture furnished by Mr. Burton Holmes, complimentary to The American Mining Congress. (Mr. Davis* paper will appear on page 474.) MR. DAVIS : I might say that, thanks to the courtesy of the Burton- Holmes Travelogues, I will be able to have thrown on the screen a picture showing the country in Alaska, from the head of navigation on the Yukon River to Fairbanks, the most important metropolis in that district. (The Burton-Holmes Travelogue picture films were then shown.) Officers Elected CHAIRMAN STILLMAN: We will ask the secretary to announce the election of officers and directors of The American Mining Congress. SECRETARY CALLBREATH : At the meeting last night the follow- ing directors were elected: Dr. R. C. Allen, of Cleveland; Col. Daniel B. Wentz, of Philadelphia, a very prominent operator in coal, both anthra- cite and bituminous; Mr. Thomas T. Brewster, of St. Louis, who has been chairman of the Committee on Arrangements here, and is now in Wash- ington representing the bituminous coal operators in reference to stop- ping the strike in operation, and Mr. John C. Howard, of Salt Lake City, Utah. After the election of the directors the Board of Directors assembled and elected officers as follows: President, Bulkeley Wells, Denver, Col., (re-elected) ; first vice-presi- dent, Harry L. Day, Wallace, Idaho; second vice-president, Col. D. B. Wentz, Philadelphia; third vice-president, E. L. Doheny, Los Angeles; secretary, J. F. Callbreath. Executive Committee Members of the Executive Committee to serve with the president: E. P. Mathewson, of New York, and Walter Douglas, of New York. That gives the report for your consideration. CHAIRMAN STILLMAN: Something over a year ago, after the signing of the Armistice, industry realized that it was through with the problems of war, but very few of us foresaw that possibly the problems of peace might equal the problems of war. In turn, your attention has been given to matters concerning taxes, finances and legislation, but probably more of your time and attention has been directed toward the labor problem, and this problem has not yet been entirely solved. Industrial Democracy A few weeks ago, as I was leaving the office of a prominent corpora- tion attorney in Chicago, he picked up a book and handed it to me with THE AMERICAN MINING CONGRESS 35 the suggestion that I read it. He said: "This book contains more com- mon sense on the subject of labor problems than anything I have seen published." The title of that book was "Man to Man," and I have the pleasure today to introduce to you the author of that work, Mr. John Leitch, industrial engineer, New York City. (Mr. Leitch's address will appear on page 487.) Regrets from Governor Lowden CHAIRMAN STILLMAN: I want to read a telegram that has just been received by Mr. Piez: Hon. Charles Piez, Care Planters' Hotel, St. Louis, Mo.: Your letter of November 13th received. I have been compelled to decline the invitation to The American Mining Congress on account of pressure of official duties here. I trust you will under- stand that if I had consulted only my own pleasure, I should have been with you. I send my heartiest greetings to the Congress, and wish for it a most profitable session. FRANK O. LOWDEN. [Applause.] Handling Labor Some time after the United States entered the war the Government realized that to win the war we needed ships, and to build ships we needed to man the industry with men of experience and ability, men who understood the labor problems and who had executive ability. We, in Chicago, were not surprised to learn that we were to lose, temporarily, Mr. Piez from our midst. The Government put Mr. Piez in the ship building business, and Mr. Piez put boats on the ocean. I have the pleas- ure to introduce to you Mr. Charles Piez, of Chicago, president of the Link-Belt Company. MR. PIEZ: Mr. Chairman, Ladies and Gentlemen: I came here be- cause I was asked to do so by Mr. Carl Scholz, who was for three years president of The American Mining Congress, and he asked me whether I would not tell a story that I told him several years ago. I went to Washington soon after the war started, worked on several committees, and met Scholz one day on Michigan Avenue, in Chicago. He said: "Piez, how are things going down in Washington?" I said: "Well, they remind me very much of a remark made by a Pennsylvania Dutchman who lived close to our works in Philadelphia. "He had been doing foundation work around the plant for many years, and he got a large job at the Midvale Steel Company's plant, which was then under the old management of the Midvale Steel Company. Some months after I met him and said: 'August, how are you getting along at the Midvale plant?' He said: 'Mr. Piez, that Midvale is an awful plant to work in. Over there 100 men can tell you to stop and only one man can tell you to go ahead, and he is all the time in New York.' " [Laughter.] I want to say that I appreciate very much the sermon for it was a sermon that Mr. Leitch delivered. His suggestion that we get back to the 36 REPORT OF PROCEEDINGS men, that we establish a man-to-man contact in industry, is certainly sound. I am not going into detail. Democracy has its difficulties, and not all of our democratically managed municipalities are equally efficient. If they were in competition with each other, probably greater efficiency would develop. But that is the situation in business; it is competitive; it is a conflict, and, while you must not forget the spiritual side of busi- ness, yet you must pay constant heed to the material side, for your survival depends on your ability to pay your bills. The industrial situation confronting us is the subject of the address which I have prepared. (Mr. Piez's address will appear on page 503.) CHAIRMAN STILLMAN : I wish to call the attention of the delegates to the invitation of Mayor Kiel and the City Administration for an auto- mobile ride around the city tomorrow morning. It is necessary that delegates register this evening, so automobiles may be provided. Law and Order At this time in our history, when we are all confronted with industrial unrest , it takes a real, red-blooded American to stand up and say : "Thus far shalt thou go and no farther." In the person of Mr. A. H. Roberts, Law and Order Governor of Ten- nessee, we have such a one. He is a guest of the Congress today and will speak in this room at 2 o'clock. You are privileged to hear an address that is well worth your time and attention, and we ask that you be promptly on time, as the Congress has a number of other matters coming up immediately after this address and it will be necessary to call the meeting to order promptly at 2 o'clock. R. T. Stull, of the United States Bureau of Mines, presented an ex- haustive and valuable paper giving the results of Government experi- ments in the uses of American graphites and clays in the manufacture of crucibles. (His paper will be found on page 766.) Richard B. Moore, Chief Chemist of the United States Bureau of Mines, who had completed an exhaustive study of the new gas, Helium, presented a paper of great commercial and scientific interest. (This paper appears on page 781.) THE AMERICAN MINING CONGRESS 37 NATIONAL GOLD CONFERENCE American Mining Congress FIRST SESSION, TUESDAY AFTERNOON, NOVEMBER 18 HOTEL STATLER, ST. LOUIS, MO. The National Gold Conference convened at 2.30 P. M., Mr. H. W. Seaman, of Chicago, presiding. CHAIRMAN SEAMAN: Gentlemen, we are only a small family here at the present time, but I anticipate that the results of this meeting and of the meetings to be held will have a far-reaching influence in obtaining what we are after. We are met in this Gold Conference as a sub-division of The American Mining Congress, to devise ways and means whereby the mining industry itself may be placed on a sound business basis, and, more than that, so that the Government which has issued such vast reams of securities may have the gold itself upon which to predicate the pay- ment of these obligations. That is the vital question, it seems to me. On October 2 the American Bankers' Convention met in the city of St. Louis and passed a resolution in evidence of their appreciation of the vast importance of this subject. I would like to have that resolu- tion which really is the basis of the action we should take here read, so that you may be fully advised as to the real purpose of this Gold Conference. We all know the trials and tribulations of the gold miner, but our own advancement must be secondary to that of our Gov- ernment itself. We must either face repudiation of these debts or else we must produce the gold that we have agreed to pay in settlement of those obligations, and that, gentlemen, is far greater than the ills or trials or troubles of the gold miners, and I believe we should treat this subject from that standpoint. Therefore, when the bankers, who are our mentors in financial matters, in this country appreciate that we do not have sufficient amount of gold upon which to predicate these vast debts, then we should take warning. I will ask Mr. H. N. Lawrie to read the resolution as passed, and also a com- munication from Mr. Clausen, vice-president of the Chemical National Bank, of New York, in which he takes a similar view. American Bankers' Resolutions MR. LAWRIE : Mr. Chairman, Ladies and Gentlemen : Your chair- man has well stated the premise of the Gold Conference. We are simply here by an invitation of the bankers, I take it, as you will see from this resolution, to assist them in the formulation of a constructive plan or policy by which the monetary reserve of the country may be protected. I will take the liberty of reading this resolution because it is the premise of our Conference. This was passed on October 2, unanimously 38 REPORT OF PROCEEDINGS and without oppositional debate, before the American Bankers' Asso- ciation. WHEREAS, The gold production of the United States, which declined so rapidly during the war period, has since the signing of the Armistice still further declined because of the extreme economic pressure to which the gold-mining industry has been subjected; and WHEREAS, Gold is the standard of value and the basis of all credit, and it is vitally important to the financial and com- mercial life of the nation that the monetary reserve be pro- tected; now, therefore, be it Resolved, That the American Bankers' Association, in conven- tion assembled, respectfully requests and urges upon the Gov- ernment of the United States the desirability of maintaining the domestic production of new gold in sufficient volume to satisfy the present anticipated trade requirements for this metal, and asks that steps be taken immediately to that end; and be it further Resolved, That the secretary of this Association be, and hereby is, instructed to send a copy of this resolution to the President of the United States, the Secretary of the Treasury, and the members of the Senate and the House of Representatives of the United States, advising them of its adoption; and be it also further Resolved, That, considering the great importance of this sub- ject, this Convention recommends to the Executive Council that the matter be referred to the Federal Legislative Committee and the Currency Commission for an exhaustive study and such action as may be deemed necessary. Now, in the report of the proceedings of the American Bankers' Asso- ciation, this resolution was reported as the third in line, and it occupied a very prominent position in their proceedings. Significant Statements by Leaders Now, in the course of correspondence which was conducted from the office of The American Mining Congress, inviting the producers and economists and bankers and members of Congress here, many replied, and some of their statements were very significant, and I think you would be interested in hearing a few of these. The Hon. Franklin K. Lane stated in his letter as follows: The problem of the decline in the output of gold from the mines in the United States and the large use of it for manu- facturing purposes, with the resulting effect on the gold re- serves of the country, is indeed a serious one, and I am glad to know that you are arranging for its discussion by a group of men who should be able to add much to the solution of the problem. I wish that I might be able to attend the Conference, but other important official duties will not permit. The Con- ference has, however, my hearty approval, and I hope that it will be productive of immediate benefit. Representative Edward J. King, of Illinois: I am greatly interested in the question of the depletion of the monetary gold reserve and the conditions you mention. But THE AMERICAN MINING CONGRESS 39 I wish you would inform me of your suggestions for remedying matters. I would appreciate your sending me the published reports on the Convention. Representative Cordell Hull, of Tennessee: I feel the keenest interest in the problem which the National Gold Conference has before it for consideration. I regret, how- ever, that I will probably not be in a situation that will permit me to attend your meeting. I shall, however, observe its delibera- tions very closely. The Director of the Mint, the Hon. Ray D. Baker: The question is of vital interest to me and I would be very glad to participate were it possible. Others included in this invitation were some very prominent members of the American Numismatic Society, who are interested in the collection of coins, and, of course, this question has a very vital bearing upon their Society and membership. Some of the prominent members of that Society who replied Mr. Edward T. Newell, president of the American Numismatic Society: The members of the Council quite concur in my emphasis upon the importance of the action which The American Mining Con- gress proposes to take at its meeting in St. Louis from Novem- ber 17 to 22, but I regret to report that it has been impossible for us to find anyone who could go as a delegate and represent us there at that time. I realize fully the importance of the pro- posed action, and would be very glad indeed to have you inform me of the action of the Convention. I greatly regret that I am unable to send you a more cordial response in such a matter which is of so vital interest to the Society of which I am presi- dent. Mr. Edward D. Adams: The statements made in the circular respecting production and trade uses for gold during the present year, at this time when the percentage of our gold reserve to pur increasing issue of Federal Reserve Bank currency is diminishing, are important and should prompt the earnest consideration of plans to safe- guard the position of our country in its relations to the financial systems of all other nations. Mr. Adams is in a very unique position to speak because of his finan- cial relationship. I have gotten several letters from mine operators. Mr. John G. Kirchen, American Gold Conference, Tonopah, Nevada, writes : I trust something will be accomplished at this meeting and acted upon by the Federal Government that will give the gold producer a square deal, something which he has not enjoyed since the recent excessive inflation of our currency system and which has been done at the expense of the gold producer. 40 REPORT OF PROCEEDINGS Some of the bankers who responded Mr. James Ringold, vice-presi- dent of the United States National Bank of Denver: The subject is an important one and should have earnest con- sideration. If you think of any way I can be of service, please do not hesitate to command me. Mr. Irving Howbert, vice-president of the First National Bank of Colorado Springs: I am very much interested in the subject to be considered at the meeting. Our gold mines in this region are on the ragged edge and unless something can be done to help them many will be closed down during the coming year. Alaskan Support Telegram received from the Fairbanks Commercial Club: We strongly support object National Gold Conference and trust practicable relief measures may be formulated for encour- agement gold production. We would suggest tax on gold used in industrial arts as one way of providing bonus on gold produc- tion. Output gold in interior Alaska has been cut in half since commencement war, and unless ameliorative legislation enacted there can be no recovery in this important industry, notwith- standing the great areas of gold-bearing ground still available for mining. Telegram received from the Alaska Chapter, American Mining Con- gress : Alaska Chapter strongly endorses object of National Gold Conference and hope you arrive at favorable solution of gold problem either by means of bonus or otherwise. Interior Alaska's main product is gold and this commodity is the only one that has remained stationary in price. This condition is the cause of stagnation in mining here and if not remedied will lead to rapid and complete closing down of all mines. Address of George E. Roberts On the program you will notice the scheduled address of Mr. Roberts, vice-president of the National City Bank of New York. He has prepared for us a special address upon this very important subject, and you all know of his intimate connection with the financial situation as it stands today. You know of his previous connection with the United States Mint, and as vice-president of the National City Bank he is also in position to judge of the international importance of this problem. I regretted when I learned Monday that he could not be here. On account of the stock market jumble they had last week, I know it would be impossible for a banker to leave at this critical moment. (Mr. Lawrie read Mr. Roberts' address, which appears on page 512.) MR. LAWRIE : I think we quite properly must agree that the bank- ing interests of the country are going to protect the gold reserves. THE AMERICAN MINING CONGRESS 41 Address of John Clausen Now, Mr. Clausen, unfortunately, has been under a very heavy pres- sure and the doctor ordered him to conserve his strength he intended to be here up to the very last minute, and he regretted it very much and wanted me to convey his regrets at not being able to be here. He has put a good deal of thought on this subject, and as vice-president of the Chemical National Bank he occupies a very important position and what he says, therefore, will carry great weight with the public at large. I believe it would be well to present this address of Mr. Clausen at this time. Many of you may not have seen any of the notes in reference thereto and it has a great many statements in it that are significant. CHAIRMAN SEAMAN: You will please read that in view of Mr. Clausen not being here. (Mr. Lawrie read the address, which appears on page 518.) CHAIRMAN SEAMAN: It hardly seems possible that this Gold Con- ference could adjourn after merely listening to this discussion. We should go from this Conference organized for constructive work, some- thing that is concrete to bring about the relief that we are seeking, and before we adjourn today we should appoint a Committee on Resolutions which will prepare or see that resolutions are prepared to present to the Mining Congress, or to their Committee on Resolutions, and see if we cannot get the resolution that comes from this Conference passed upon favorably by the Mining Congress. HTHA [ MY)ClKl)LOtH ] [HVitrquitlOMt | pvifAMIUCftOP | | PHtHTLHYOWiii] [iVtraillLTc] |IHCHilirUMIN~| IQlMCIHtlANILI 6YE STUFFS UYtSTWffSl | INOKJ BY-PRODUCT COKING 305 MCOAL " fS||lAIPetACH I I REFINED TAR. I I , I , I I , I I j [RfoNTT] p5V?J^|ft*CoaT"*] |*ftooeiH(TO1 ytTS I l^otecoMPoy-RT) | "a.i~i' 1 | TAaotTi [ ( '"Sit" 1 I PITCH Ce PREPARED BY 'Co Hew yoK U. S. Bureau of Mines 11578 306 PROCEEDINGS OF AMERICAN MINING CONGRESS increased in importance in the last few years. For instance,, the packing industry of today is absolutely dependent on cold storage ; except for cold storage it would be impossible to pre- serve and distribute perishable foodstuffs to anything like the extent that now prevails. The annual production of ammonia by by-product coke oven plants alone is now about 122,000 tons. This ammonia, together with about 33,000 tons more produced by the gas works, is entirely consumed in this country. Explosives in Coal In time of war the importance of ammonia is greatly in- creased. For the manufacture of military explosives fixed nitrogen in the form of nitric acid is absolutely necessary. Nitric acid can readily be made from ammonia, but at the time that the world war broke out the ammonia supply in the United States was not nearly great enough to supply war demands for fixed nitrogen and at the same time supply dependent essential industries ; besides, the price of ammonia was too high to war- rant the use of it for making nitric acid in competition with sodium nitrate imported from Chile. The supply of sodium nitrate from that source was sufficient for the manufacture of munitions at the outbreak of the war, and in fact during the war 95 per cent, of the explosives made were made with nitric acid from imported sodium nitrate. There was a possibility, however, that in the course of the war this country as well as the Allies would be cut off from the Chilean source of supply by the enemy submarines. Accordingly, in all the Allied countries preparations were being made to fix nitrogen, principally in the form of ammonia, in order to become independent of imports in the manufacture of nitric acid, and hence military explosives. The Congress of the United States authorized the expenditure of $200,000,000 for the erection and operation of plants in this country for the production of synthetic ammonia, approxi- mately $110,000,000 of which was spent up to the time of the signing of the armistice, and several of the larger plants were just beginning to operate at that time. Allied countries were making preparations for fixing nitrogen on somewhat the same scale. The plants of the United States Government which have been built are now shut down, pending the time when they can be made to compete with the coke ovens for the normal am- BY-PRODUCT COKING 307 monia business. Whether or not they will ever be able to do so is a question that cannot yet be decided. However that may be, no one doubts that their construction as a precautionary war measure was wise. The Government was simply playing safe in the matter of munitions supply, since without an abundant supply of fixed nitrogen a nation playing the modern game of war is absolutely helpless. Our Teutonic enemies had foreseen this contingency and were prepared for it. They imported no fixed nitrogen during the war, but were fixing at the close of the war, according to late reports, somewhat over 400,000 tons per annum of nitrogen. This in the form of ammonia would total about 500,000 tons, and was presumably sufficient to sup- ply all their needs, including that used for making munitions. How much of Germany's fixed nitrogen supply came from her coke ovens is not definitely known ; it has been reported, how- ever, that the by-product coke ovens were made to produce coke far in excess of the demands in order that the output of am- monia be sufficient to satisfy demands for making munitions. It is too early yet to predict what effect the war developments of methods for making ammonia will have on prices of coke oven ammonia, but it seems safe to say that with the ever- increasing demands for ammonia the effect will be slight, in so far as the United States is concerned, at least. Profit in By-Products Now, it has been shown that the increased value per ton of coal is from $6.80 to $5.95 when treated by the by-product coking process, and the commercial importance of the by- products derived therefrom has been explained. A few figures will illustrate the enormous strides the by-product industry has been making in the last few years, most of the coke being used for metallurgical purposes, and very little for domestic heating. The total number of ovens in operation and new ones built, with the per cent, increase, is as follows : % increase 5.5 7.3 7.2 9.9 14.5 Year Total Ovens New Ovens 1914 5,809 321 1915 6,268 459 1916 6,758 488 1917 7,495 739 1918 (estimated) 8,780 1,275 308 PROCEEDINGS OF AMERICAN MINING CONGRESS Notwithstanding this increase, fully 50 per cent, of the metallurgical coke used is still made in the old-style beehive ovens at a total loss of by-products. The reason for this may be found in a long-standing prejudice in favor of the beehive coke for furnace use. It is a good coke, no question about that, but it has been repeatedly demonstrated that the by-products coke is just as good. Large iron and steel companies that for- merly thought they could not get along without beehive coke are now either using by-products coke for all their furnaces or are building coke ovens with that end in view. Public Should Demand Coke. So much for those who use coke for metallurgical purposes ; they will soon work out their own salvation as regards fuel, in that all furnaces will in the near future be fired with by- products coke. As for all of us, collectively, large users of fuel for domestic heating, we do not in general have the advantage of technical advice as to what is the best fuel to use in fact, we are at times victimized by sharpers advocating this or that fuel economizer, so that we have become suspicious of any new fuel. It is now decidedly our part, however, to demand coke for domestic heating, thereby securing a more satisfactory fuel for ourselves and at the same time promoting conservation of the country's natural resources. The enormous waste of vola- tile constituents of bituminous coal today is nothing short of criminal. CONCILIATION IN THE ANTHRACITE REGION 309 CONCILIATION IN THE ANTHRACITE REGION Address by EDWARD W. PARKER, of Philadelphia, Pa., Before The American Mining Congress. On October 15, 1919, John L. Lewis, acting president of the United Mine Workers of America, issued the order which on the first day of this month stopped the production of bitu- minous coal in practically all of the organized mining districts, threw in the neighborhood of 400,000 men out of employment and threatened disaster to the transportation and manufactur- ing industries of the country with possible untold distress and suffering to that portion of the population dependent upon bituminous coal for domestic fuel. On the 16th day of October, 1902, seventeen years before, lacking one day, President Roosevelt telegraphed to the late John Mitchell, then president of the United Mine Workers of America, that he had, upon the suggestion of the anthracite operators, appointed a commission to which should be referred all the questions at issue between the companies and their em- ployees and asking him to accept on behalf of the mine workers. A convention was immediately called, the proposition of Presi- dent Roosevelt was unanimously adopted, and on October 23 President Roosevelt addressed the following letter to the Anthracite Coal Strike Commission : The President's Letter WHITE HOUSE, Washington, October 23, 1902. To the Anthracite Coal Strike Commission: Gentlemen At the request both of the operators and of the miners, I have appointed you a Commission to inquire into, con- sider and pass upon the questions in controversy in connection with the strike in the anthracite region, and the causes out of which the controversy arose. By the action you recommend, which the parties in interest have in advance consented to abide by, you will endeavor to establish the relations between the employers and the wage-workers in the anthracite field on a just and permanent basis, and, as far as possible, to do away with 310 PROCEEDINGS OF AMERICAN MINING CONGRESS any causes for the recurrence of such difficulties as those which you have been called in to settle. I submit to you herewith the published statement of the operators, following which I named you as the members of the Commission. THEODORE ROOSEVELT. By this action of President Roosevelt, one of the most momentous struggles in the history of labor controversies was brought to a close. It is not the purpose of the present paper to discuss the merits or demerits of that struggle, nor the one in the bitu- minous fields precipitated by the order of Acting President Lewis of October 15 last, but to call attention to one particular result that followed the appointment of the Anthracite Com- mission and to express the hope that some similar machinery may be set in motion that will put to an end, or at least mini- mize, labor dissensions not only in the bituminous coal fields but in other lines of industry. It will be noted that President Roosevelt directed the Com- mission not only to pass upon the questions in controversy, but to "endeavor to establish the relations between the employers and the wage-workers in the anthracite fields upon a just and permanent basis, and, as far as possible, to do away with any causes for the recurrence of such difficulties as those you have been called in to settle." Government Declined Request One of the demands of the mine workers in the anthracite strike was for a compulsory order that an agreement should be made between the anthracite companies and the United Mine Workers of America. This the Commission declined to do. Its pronouncement in upholding the principle of the open shop was couched in no uncertain language. Its decision was unanimous and there was a representative of organized labor in its mem- bership. On this subject it said: The right to remain at work where others have ceased to work, or to engage anew in work which others have abandoned, is part of the personal liberty of a citizen that can never be surrendered, and every infringement thereof merits and should receive the stern denouncement of the law. CONCILIATION IN THE ANTHRACITE REGION 311 And again : The right thus to work cannot be made to depend upon the approval or disapproval of the personal character arid conduct of those who claim to exercise this right. If this were otherwise, then those who remain at work might, if they were in the ma- jority, have both the right and power to prevent others, who choose to cease to work, from so doing. This all seems too plain for argument. Common sense and common law alike denounce the conduct of those who interfere with this fundamental right of the citizen. The assertion of the right seems trite and commonplace, but that land is blessed where the maxims of liberty are commonplaces. And it awarded : That no person shall be refused employment, or in any way discriminated against, on account of membership or non-member- ship in any labor organization; and that there shall be no dis- crimination against, or interference with, any employee who is not a member of any labor organization by members of such organization. But while the Commission declined to make an award which would compel recognition of the United Mine Workers of America, it did express the opinion "that some satisfactory method for the adjustment of grievances which may arise from time to time, to the end that strikes and lock-outs may be un- necessary, the demand for which as part of an agreement with the United Mine Workers of America is made in the fourth claim, just referred to, should be imposed by its award upon the parties to this submission. And it adjudged and awarded : That any difficulty or disagreement arising under this award, either as to its interpretation or application, or in any way grow- ing out of the relations of the employers and employed, which cannot be settled or adjusted by consultation between the super- intendent or manager of the mine or mines, and the miner or miners directly interested, or is of a scope too large to be so settled and adjusted, shall be referred to a permanent joint com- mittee, to be called a board of conciliation, to consist of six per- sons, appointed as hereinafter provided. That is to say, if there shall be a division of the whole region into three districts, in each of which there shall exist an organization representing a ma- jority of the mine workers of such district, one of said board of conciliation shall be appointed by each of said organizations, and three other persons shall be appointed by the operators, the operators in each of said districts appointing one person. 312 PROCEEDINGS OF AMERICAN MINING CONGRESS The Commission directed that the Board of Conciliation as thus constituted should take up and consider any question referred to it, and that any decision by a majority of the Board should be binding upon both parties, and that any questions upon which the Board was equally divided should be submitted to an umpire who should be selected by one of the circuit judges of the Third Judicial Circuit of the United States, and the decision of the umpire should be final and binding upon all parties. Roosevelt Settled Strike This award of the Commission was its most important achievement. The settlement of the strike itself was the act of President Roosevelt, the Commission simply acting as his agent in working out the terms of settlement, and as these terms were continued practically without change in two subsequent agree- ments between the operators and the miners, each of these agreements covering a period of three years, it may be safely assumed that they were fairly satisfactory to both sides to the original controversy. And in the subsequent agreements where changes have been made as conditions of market and of employ- ment have warranted, the agreements have referred and have been tied to the' awards of the Anthracite Coal Strike Com- mission. The establishment of the Board of Conciliation was the act of the Commission in carrying out the expressed wish of Presi- dent Roosevelt of "establishing the relations between the em- ployers and the wage-workers * * * on a just and per- manent basis," and it is upon the work of this Board that I desire to address this convention and through it the bituminous mine workers and the public at the present time. Seventeen Years Peace In the first place let me say that in the 17 years from Thurs- day morning, October 23, 1902, when the anthracite miners returned to their working places, to the present time, there has been no general strike in the anthracite region. There have, it is true, been some "suspensions," notably in April, 1912, and again in 1916, pending the renewal of the agreements, but these were of a peaceful order and partook more of the nature of CONCILIATION IN THE ANTHRACITE REGION 313 vacations than of strikes. And there have been some local disturbances that affected individual mines, companies or dis- tricts, but these are bound to occur as long as human nature continues as it is today. The Board of Conciliation makes it a hard and fast rule, however, that it will not consider any grievances while the men are "out" and this has acted as a restraining influence in general, and as a compelling influence to return to work once the men have gone on strike. The most frequent causes of trouble have been what are known as "button strikes" which, while contrary to the award of the Commission "that there shall be no discrimination against, or interference with, any employee who is not a mem- ber of any labor organization by members of such organiza- tion," have been looked upon somewhat leniently as disciplinary action against members of an organization not in good stand- ing, rather than against non-members of the organization. Taking it altogether, there have been 17 years of peace and of unprecedented prosperity among the mine workers of the anthracite region, all as a result of the common-sense, benefi- cent manner in which the Board of Conciliation has performed the duties imposed upon it. Anthracite Conciliation The success that has attended the work of the Anthracite Board of Conciliation has been due in no small degree to the fact that it has been free from the taint of politics, except to the extent that politics inside of the mine workers' organiza- tion may have influenced the selection of the three members on the Board who represent the miners, as the presidents of the three districts in the region have represented the miners and the personnel has changed as the result of the elections for officers in the organization. Only four men have represented the operators since the Board was organized. The original operators members were Messrs. W. L. Connell, S. D. Warriner and R. C. Luther. Mr. Luther died in 1905 and was succeeded by Mr. W. J. Richards, who has continued to serve with the other two original members to the present time. The Anthracite Board of Conciliation sits as a court, but there are no lawyers present, except possibly as auditors, and no oaths are administered. If an employee has, or thinks he 314 PROCEEDINGS OF AMERICAN MINING CONGRESS has a grievance, which he has not been able to have settled by conference with the mine foreman or superintendent, he is privileged to bring it before the Board of Conciliation. He tells his story and presents such corroborative evidence as he may desire through other witnesses. He and they are, of course, subject to cross-examination and, although not under oath, it usually, in fact almost always, develops that any attempt to misrepresent facts is caught, and the offender gets no sympathy from the Board, and rarely from the audience, which generally consists largely of his fellow- workers. Throughout the hearings there is an air of easy and orderly informality, the sole idea being to get at the truth. In the 17 years of its existence the Board of Conciliation has settled more than 600 cases, comparatively few of which have had to be referred to the umpire provided for in the award of the Anthracite Commission. In addition to the cases settled by the Board sitting as a court many disputes have been peace- fully arranged through the good offices of the members of the Board in their respective districts, without bringing them into "court." New Order Established The establishment of the Board of Conciliation has created a new order of things in the anthracite region. It has made itself a common sense court of "oyer and terminer" and its quasi-legal system of doing even-handed justice has spread among the mine workers a sense of security and has created and maintained a more friendly feeling between employer and employee than probably exists in any other large industry. It has been designated by one writer recently as the most suc- cessful industrial court in the world. But for the existence of the Anthracite Board of Conciliation it is doubtful if there would have been quietly held in Philadelphia on September 26 a meeting of operators and miners at which the wage scale agreed upon on November 15, 1918, was extended until March 31, 1920, when it was practically known what demands the bituminous miners were going to make and that a strike in the bituminous mines on November 1 was inevitable. The meetings of the Anthracite Board of Conciliation are always interesting from a psychological point of view and CONCILIATION IN THE ANTHRACITE REGION 315 frequently they develop incidents bordering closely on the dramatic. Occasions have occurred when attempts have been made to "put something over" on the board. The speaker was present at one session where such a thing occurred. It was spotted, as such attempts generally are, and the "dressing down" that the young man received from one of the members of the board was a piece of excoriation worthy of a judge ex- pressing his opinion of some particularly flagrant disrespect of the court. That young man probably never repeated the offense. Incidents of this kind are rare, however. The sessions are usually conducted in an atmosphere of, as the name implies, conciliation. They are extremely democratic. The six mem- bers of the board sit at a long table on the floor level and the witnesses sit at the other side facing them. Not infrequently, in probably more than half the cases in fact, the complainant is a foreigner and has difficulty in presenting his case in the English language. In such cases he is helped to tell his story even by the members of the board that might be supposed to be "on the other side." The policy of getting at the facts is the governing incentive. Sometimes the evidence partakes of a somewhat technical character, and mine maps and drawings are introduced as evidence. Comedy also plays its part at times, but not to such an extent as to interfere with the orderly proceeding of the inquiry. The Board of Conciliation, without intending possibly to do so, carries out the Biblical injunction, "Come, let us reason together," and by its 17 years of useful- ness has provided a time-tested method of procedure and of efficiency in handling labor disputes that may well be taken as an example for every line of industry. Causes, which today are heard, discussed and settled in round-the-table conferences, would have precipitated strikes and probably resulted in dis- order and bloodshed a score of years ago. The Bituminous Strike Since the first of November the bituminous coal mining in- dustry has been going through the throes suffered by its sister industry in 1902, but with no such reason. "Thrice armed is he that hath his quarrel just." There was some justice in the demands of the anthracite miners in 1902. They had the sym- pathies of the press, the public and the politicians, the "Three 316 PROCEEDINGS OF AMERICAN MINING CONGRESS P.'s" and they won what they deserved to win, though not all that they demanded. Their crowning victory, shared by the operators, was the creation of the Anthracite Board of Con- ciliation, which has maintained peace and prosperity, the other two great "P.'s" in the anthracite region. It cannot be said that the bituminous mine workers, or the men that have led them have had their quarrel just nor have they had the sym- pathy of the first three "P's" and they will lose as they deserve to lose. But it may not be hoped that out of this struggle, brought to an end as was the anthracite strike, by Federal interposition (very differently applied, however), there may arise a board or some boards of conciliation, free from State or Federal politics, that will do for the bituminous coal mining industry what the Anthracite Board of Conciliation has done for the anthracite region, "establish the relations between employers and wage-workers upon a just and permanent basis, and, as far as possible, do away with any causes for the recur- rence of such difficulties as those which" have so nearly brought disaster, not only to it, but to the country as a whole in fact, establish and maintain peace and prosperity in the bituminous coal mining regions. OUR INDUSTRY'S PART 317 OUR INDUSTRY'S PART Address by GEORGE OTIS SMITH, Director U. S. Geological Survey, Before The American Mining Congress, St. Louis The realization of America's large heritage in the form of natural resources prompts us to regard ourselves as divinely elected to world leadership. And indeed no people can more truly or more profitably repeat for their own benefit the words of Milton : "Accuse not Nature! She hath done her part; Do thou but thine." The rank of the United States in the world's mineral indus- try is shown by the fact that in the last normal year, 1913, our output of the principal mineral commodities constituted about 36 per cent, of the world's production, or as much as the six leading nations of Europe together. Here is where figures are more eloquent than adjectives in expressing America's indus- trial leadership. Yet such endowment of national wealth brings its responsibilities, and the obligation laid upon our in- dustry is measured in a way by the very abundance of the treasure in this greatest storehouse of mineral fuels and ores of the useful metals. Platitudes about our duty to the nation do not meet the present need. The test of the individual or the industry is the contribution made to the general welfare. We correctly de- scribe our industry as a producer of basic wealth, but in the policy of the mining industry the dominating note should be not "wealth" but "welfare." In promoting the general well- being our industry is called upon to play no small part. I am going to suggest that we consider the nature of our contribu- tion to the nation ; our particular problems in industrial part- nership ; the duty of our industry to other business ; and the relation between the mining industry and the Government. During the war period, in addressing a group of my farmer friends in Maine, I told them that the world doesn't owe the farmer a living, but, on the contrary, the farmer owes the world a living. I believe that proposition continues to express 318 PROCEEDINGS OF AMERICAN MINING CONGRESS the truth under peace conditions, and I would now add my economic and social conviction that the other great productive industry which we men represent here also owes the world a living. Our duty is to provide an adequate supply of the raw materials from which can be fashioned the almost infinite variety of manufactured commodities that the modern world requires. The part, then, of our industry in the cosmic scheme of things is to furnish the world with fuel, with metals and with all the other mineral raw materials which civilization takes as a matter of course but without which civilization can- not survive. No 'Dollar Mark" Standard The exact measure of our contribution to the world, however, is not the dollar. Some of us with a statistical bent love to note the fact that the value of our country's annual mineral production passed the billion dollar mark in 1899, reached the two billion mark in 1907, exceeded three billion dollars in 1916 and attained five billions in 1917, and five and a half billions last year. Yet the total value of our annual output is a starting point for economic self-examination rather than a goal reached that justifies self-glorification. The dollar is a handy measur- ing stick, but the results it gives need to be verified ; quantity and quality of commodities give the truer measure of their use- fulness. As a newspaper editor recently put it : "We don't eat dollar marks we consume production." The reported value at the mine mouth of our coal output may be significant of wages and possible profits to the mine workers and mine owners, but it does not measure the heat units made available for the world's work and comfort. So, if we look behind the camouflage of increased prices, we see that the jump of nearly a billion and a half dollars in 1917 did not mean that our mines contributed an additional 42 per cent, to the world's needs. As a matter of fact, of such essential metals as copper, iron and lead as well as gold and silver, there was a decreased output, a loss to the world, aggregating more than half a million tons. Again, last year the half billion dollar increase in market value expressed not an increase but a de- crease in tonnage of such leading items as iron, lead, zinc, gold and silver. In short, the number of loaded freight cars that OUR INDUSTRY'S PART 319 daily leave your plant gives a good measure of your usefulness to the world, irrespective of the size of your daily bank deposit. Improved Mining Conditions The most gratifying part of the record of American mining and metallurgy is found in the increasing annual output of coal or iron per miner, the steady improvement in recovery of values from refractory ores, the continued lowering in the .grade of copper ore that can be handled at a profit, and the increased safety to life and health of the workers. All this is the result of engineering in the service of man, and in a ma- terial way all this tends to increase the tonnage of your output without increase in price and probably even with lowered costs. So it is that, rather than take the grand totals for our coal and oil and metal expressed in dollars as the true index of our prosperity, we can better claim credit for our industry when prices are low and yet our mines are running full time and our furnaces full blast. The fact of partnership in industry is now generally recog- nized and we need discuss only the ways and means for putting into effect this principle of community of interest. Prosperity in any business cannot be one-sided; the public, labor and capital all three must share its benefits. So, too, an idle industry assesses its losses upon each of these three partners. The coal industry furnishes abundant illustration of this truth; the curve of weekly coal production tells the story of highly irregular operation, and idle plants and idle men are expensive taxes upon the community and the nation. Coal Mining Situation The advantages of regular employment accrue alike to labor and capital ; it is the year's earnings that really count, whether it is the dollar or the man whose service we thus measure. Now, if we study the country's soft-coal business as a whole, we find a gratifying improvement during the war period in the average number of days of employment from 195 days in 1914 to the top record of 249 days last year. But these aver- ages for the country unfortunately include low figures for cer- tain States, and usually for the same States year after year, a relation that deserves this comment: wherever the working 320 PROCEEDINGS OF AMERICAN MINING CONGRESS year is shortest there dissatisfaction with the conditions of labor is keenest in other words, where the coal mines have not enough market to keep them running a long working year, there we find labor unrest. For example, the average working days per year for Ohio, Indiana and Illinois for the last five years have been 176, 196 and 206, respectively, as contrasted with average of 252 days for Alabama, 258 for Virginia and 292 for New Mexico. Of course the relationship is not simple ; cause and effect are mixed in this coincidence of short years, labor unrest and union strength, and it must be noted that mine owners as well as mine workers suffer from every inter- ruption to the full opportunity for earning that comes only with continuous operation. The underlying cause of bad con- ditions in the coal industry is the seasonal fluctuation in de- mand, which has resulted in the country being over-equipped with coal mines and coal miners. The three States mentioned as favored with longer working years owe this advantage to a market, largely metallurgical and railroad, to the demands of which the mines are fairly well adjusted. Public Co-Operation Needed For three months this last spring the coal mines of the country were operated, on an average, for only about 24 hours a week. From coast to coast the reason for lost time was "no market," something beyond the control of either operator or mine worker. Here, then, is the greatest branch of our mining industry vitally affected by a widespread malady, the remedy for which lies with the public alone. Arbitration, dictation, legislation cannot cure such deep-seated trouble. Laws cannot make coal mines operate when there is no outlet for their product, but education of the consuming public may accomplish much in bettering the conditions of demand, and we as con- sumers will do well to remember that the price we pay for coal must in the long run be enough to pay for the idle days of both mines and miners as well as for the days they work. The public interest lies in a longer working year, not in a shorter day or week. Largely on account of the irregular market de- mand for coal, our mines since the armistice have actually averaged only 30 hours working time a week; throughout the year there have been too many mines and too many miners OUR INDUSTRY'S PART 321 waiting for work. A thirty-hour week is the ailment not the cure Reference to this fact of industrial partnership is not com- plete without mention of the third partner the public. Whether we belong to the mine-worker or to the mine-owner division of the mining industry our duty is the same ; we must promote the general welfare. A recent editorial in the Satur- day Evening Post pointed out that the doctors and the nurses have the right kind of class consciousness they are conscious that their duty to the whole people takes precedence over their selfish interests. A true diagnosis of the financial condition of our industry involves bookkeeping that states the real economic symptoms. In mining as in all other productive business, production costs should express all the facts, but I am convinced that we have not yet reached that stage in our accounting methods. The annual reports of our largest mining corporations and the studies by the Federal Trade Commission alike fail to tell the whole story in their statement of production costs, which are made to include the wages of labor but not the wages of capital employed. The Federal Trade Commission in its definition of cost specifically excludes interest on investment, but can we do that in the world of realities ? Does not the cost of a pound of copper just as truly include its share of the interest due on the bonds and the dividend due on the capital stock actually paid in that is, wages paid to capital as it includes the wages paid to the mine worker or the man in the smelter? Of course neither payroll should be padded. Do not regard the definition of profit as simply an academic question for college professors to discuss it is more a matter of fundamental concern to the men who are trying to build up the industry. An Unfair Situation In the first place, such terms as "net earnings," "profit," "net income," "surplus," or "balance to surplus account," which appear on your financial sheets, are too optimistic in tone when the operating costs do not include any charge on account of the investment. The inference is too easily drawn that this surplus is available for profit-sharing between labor and capital. For example, the Federal Trade Commission re- 322 PROCEEDINGS OF AMERICAN MINING CONGRESS port on copper is quoted in newspaper headlines as showing "28 per cent, profit in copper," yet in this report the wage to labor is set forth as the first and largest item among the ele- ments of cost, this item alone averaging 5% cents a pound in 1918, but cost of capital is not included. The report, however, shows that the 85 copper companies discussed would require an average of 3 cents a pound to pay 10 per cent, on their actual investment, yet this 3 cents does not appear in the 16 cents of average cost, but instead it forms a part of the 8 cents of the so-called "net profit," which the unwary may regard as the actual difference between price and cost. In the second place, I fear lest accounting which does not count all the costs may lead us to fail to appreciate the results of American engineering. Our mining engineers, backed up by red-blooded capitalists, are constantly lowering labor costs by increasing the investment in improved mine equipment. This means replacing the hardest part of labor with ma- chinery working dollars instead of men so that your cost- keeping conceals the true state of things, if you pay labor out of so-called "costs" and capital out of so-called "profits." By your improvement in equipment you are subtracting from one side of the account and adding to the other, thus ever making the margin apparently larger than it really is. The great strides in advancing our mining industry have come through large investments in plant, and we must in fairness include a living wage for capital as well as for labor when we figure the cost of winning this or that metal from the low-grade ores, metal which a few years ago not all the labor in the world could have won for the use of mankind. Must Play Fair I have elsewhere suggested that industry must have a con- science, irrespective of the old charge that corporations have no souls. Our mining industry cannot stand right in the eyes of the modern world, unless it plays fair with the rest of the business organization. We must try to see the other side of the shield, whatever the transaction with our fellow-men, and I can best illustrate the application of the Golden Rule in eco- nomics by citing our relation to the railroads. OUR INDUSTRY'S PART 323 As the railroad's largest customer, the mining industry is largely concerned in the solution of the transportation problem now so prominently before the American public. It is plain that adequate service and low rates mean much to the health if not to the very life of our industry, yet even as large buyers of transportation we should not seek preferential rates at the expense of the rest of the public, any more than as sellers of fuel and metal we should be willing to let the Railroad Admin- istration procure its supplies from our mines and furnaces and mills at prices so related to bare cost that the public must make up the difference. You coal operators know too well how that style of shoe pinches to wish the same kind of narrow policy on the reorganized railroad system. We must allow freight rates to be determined by facts of transportation cost, rather than by what we claim to be the exigencies of our own business. Even a legislature cannot impose rates, however they may seem calculated to serve public interest, that would deny to the rail- road the reasonable reward necessary for its financial and physical upkeep. The Supreme Court has ruled that a State law cannot force a railroad to haul coal at a loss on the suppo- sition that the profits in the wheat traffic will recoup the car- rier. So it is that in a spirit of fairness the mining industry ought to help in the adjustment of rates on a basis adequate to revive healthy conditions on our railroads. Some reference to the relation between the mining industry and the Government may well follow my remarks on business conscience. Standing as I do a little closer to the Government side, I prefer to emphasize the duty of the Government to the industry. I believe in a strong Government, strong enough to regulate and even control in the public interest every industry > but, above all, I believe in a just Government. Back in Wash- ington we have a body of public servants whose desire is to serve the whole people, but most of us are human, and newly acquired power may sometimes affect our vision, so that we make the wrong moves. In its relation to the mining industry the Government needs to be fair, whether the relation is that of mineral landlord or of business investigator or of tax collector or of purchaser of fuel and metals. Disregard of established equities, ill-advised charges of bad faith, threats of commandeering, or offers of 324 PROCEEDINGS OF AMERICAN MINING CONGRESS confiscatory terms are no longer warranted in these days when the Government's necessities are no greater than those of other consumers. Indeed, the principle laid down by President Wilson during the war that the Government rate should be the same as the rate to the public should have been followed by every one down the line, whatever his title or insignia of office. Now that we have had time to regain our poise, I think the public servant generally wishes to serve rather than to com- mandeer. Government Must Be Just We in the Government service, however, must realize the necessity of being even more scrupulous in our exercise of power than if we were in private business. I like to keep in mind the words of Judge Severns in the Federal Circuit Court of Appeals : It derogates from the dignity and character of the Govern- ment to suppose that, formed as it is to secure impartial justice between individuals, it may, nevertheless, in the conduct of its own affairs, without regard to the principles it represents, per- petrate upon its citizens wrongs which it would promptly con- demn if practiced by one of them upon another. In my opening words I suggested that welfare rather than wealth be the dominating note of our industry. But wealth may be defined as provision for future welfare, inasmuch as it is the surplus beyond present needs. To the present-day problem of industrial unrest, then, what is the answer, except to create a larger surplus? As I analyze the economic situa- tion, surplus of production over consumption can come through decreased consumption or increased production or both, but it cannot come through restricted production or increased con- sumption or both, and the shortened day of labor surely means both less produced and more consumed. Whether among indi- viduals or among nations, the old-fashioned ideas of industry and thrift come nearer the natural law than the new proposi- tion of a five-day week and a six-hour day. No protective tariff can safeguard the home market for industries based on a thirty-hour week, nor can our industries expect to win or hold a place in foreign markets on any part-time program, unless OUR INDUSTRY'S PART 325 there is some international agreement making for universal indolence, and even then we may discover that there can be no return to Garden of Eden conditions of consumption without productive industry. I believe the earliest precedent was a continuing injunction for a six-day week, and no lower court has since ordered any better rule of action or reversed that Divine injunction. 326 PROCEEDINGS OF AMERICAN MINING CONGRESS STANDARDIZATION OF MINING EQUIPMENT Report of Committee Read by CHAIRMAN WARREN R. ROBERTS to the American Mining Congress, St. Louis, November 20, 1919 The Committee on Standardization of Mining Equipment selected by the American Mining Congress previous to the Twenty-second Annual Convention of this organization, spent several days in deliberation in St. Louis, November 15, 16, 17 and 18 and presented a report valuable alike to operators and manufacturers. The report, together with the reports of sub- committees, is given herewith. Discussion of Report Colonel Warren R. Roberts, acting chairman of the General Committee, in presenting the report, said : "I wish to make a few preparatory remarks before I present the official report for this Committee on Standardization of Mining Equipment, together with the reports of the various sub-committees, and with recommendations to the American Mining Congress for the continuation of this work of standardization of mining equipment. "First, I wish to advise you that this work was only recently begun, that is, the American Mining Congress took up this work quite recently by appointing a General Committee to undertake the standardization of mining equipment. When the letters were first sent out to the various engineers and manu- facturers, suggesting the possibility of standardization, most of those approached were very skeptical as to the possibility of any beneficial results from the undertaking, therefore, it made the start rather slow. But when a meeting was held by this General Committee, and thought given as to the subject, all present became convinced that there was a field of usefulness for the Congress along this line of endeavor. "I wish to advise you that the standardization of equipment and machinery of all kinds in this country is really just begin- ning, in all but a few of the more technical industries. It may seem strange to you that the most technical industries, manu- STANDARDIZATION OF MINING EQUIPMENT 327 f acturing the most complicated equipment, are those who have gone the farthest in standardization. This is accounted for, no doubt, by the fact that the necessity of the case requires that men of high ability were secured to promote such industries, and those far-seeing men appreciate the results that would be obtained from standardization of their product. The result is that in the electrical equipment used in this country and some other of the more intricate machinery, we have a higher degree of standardization than any other industries. "Standardization was taken up by the United States Govern- ment during the war as a means of promoting production, and it was learned that with reasonable standardization that is, carried on in careful consultation with the manufacturers that we very greatly accelerated the production, in all the com- modities which we attempted to standardize, before the war was over. This included seventy-five of the largest commodi- ties used in the army. I am mentioning this only to show the possibility of the work the Congress has undertaken through these committees. "Those of us who have had experience in the work of stand- ardization, counseled those on the committees to proceed with a great deal of conservatism ; to take up the more general things first, those things which would be more readily accepted by the operators, and which it would be easier to convince the opera- tors would be of benefit to them. The ultimate benefit from standardization comes to the purchaser ; there are very material benefits to the seller, but the great benefits, of course, accrue to the buyer. "The Congress first established a general committee, selected carefully to represent the various interests of the industry, including coal operators, manufacturers of coal mining equip- ment, mining engineers and contractors of mining plants. This General Committee represents all branches of the industry. The work of organizing sub-committees has not been completed, although a number of sub-committees have been organized as you will see by their reports. "On behalf of the Chairman, who is absent, I move the adop- tion of the report and the continuation of the work of the committee." The motion was seconded. 328 PROCEEDINGS OF AMERICAN MINING CONGRESS Standards Committee Mr. A. Cressy Morrison, of New York, said : "There is a distinct recommendation in this report that I would like to speak of, and that is the recommendation that the American Mining Congress join the American Engineering Standards Committee. The American Engineering Standards Committee holds its annual meeting the twenty-second of this month, Friday of this week, and at that meeting they will give con- sideration to application of new members. The reason for the action on the twenty-second, and that particular consideration, is the broadening and democratizing influence which has been brought on the American engineering standards, by which they have decided on terms to admit national bodies. "The Bureau of Standards has called a meeting on safety standards particularly, at which meeting there will be given consideration to all sorts of standards, and especially the for- mation in the broadest possible way of the American Standards Committee. The American Standards Committee has adopted a constitution and by-laws which leaves in the hands of sponsor bodies like this great organization, the right to initiate and formulate standards. "The necessity for this sponsor body idea is very clearly manifested in the report of this committee, because there is no body that can formulate standards for mining operation except the miners themselves, men who are operating the mines, the superintendents, all those men who can tell the real difficulties and the practical operation. Standards to be effective in this country or any country must be in direct harmony with prac- tice; theory is good, but practice is better. "At the meeting which will be held in Washington, D. C., probably the ninth of December, not only the organizations which were there on January 16, but all other organizations which have been included in the extended invitation will be given the opportunity to join in the great general movement for standardization in this country. "The English Standards Committee has been in operation for seventeen years, in more active operation for fourteen of those years, and during the last few years has accomplished a great work. It has connected itself with Government regula- tions and rules, and has earned the respect and esteem not only STANDARDIZATION OF MINING EQUIPMENT 329 of the Government, but the industries who co-operated. We have never had such an organization as that. 'The tendency in this country to State regulations and State standards has been so strong that there has never crystallized a movement for national standards. The result is that we are subjected in law and practice to a multitude of standards. "I, therefore, recommend that serious consideration be given at this time to the suggestion of the committee that this great body immediately signify its intention of attaching itself to the American Engineering Standards Committee. It will give great help to that committee in its efforts in Washington, D. C., to centralize and crystallize a movement. "If it could be done, I respectfully suggest that the Secretary be instructed to telegraph to the Engineering Standards Com- mittee a tentative suggestion that this body will join, subject, of course, to the conditions which they meet in Washington in December, so that the Engineering Standards Committee can go to Washington with the added precedence of this splendid organization. I make this as a motion." The motion was seconded by Colonel Roberts and carried. Colonel Roberts then read the complete report of the General Committee on Standardization of Mining Equipment, together with the reports of the sub-committees, all of which were adopted by the convention, as follows : Report of Conference of the GENERAL COMMITTEE ON STANDARDIZATION OF MINING EQUIPMENT Held in Planters' Hotel Sunday, November 16, 3.00 P. M. Mr. George R. Woods, Chairman absent; Col. Warren R. Roberts, Acting Chairman. For the information of those present at this conference who have not attended the previous Committee Meetings, it may be of interest to outline, briefly, the method of procedure which the Congress has adopted for accomplishing this work. 330 PROCEEDINGS OF AMERICAN MINING CONGRESS A General Committee was first appointed, selected carefully to represent the various interests of the Industry, including the coal operators, manufacturers of coal mining equipment and mining engineers. This General Committee is composed as follows : Mr. George R. Wood, Consulting Engineer, Charleston, W. Va., Chairman. Mr. C. E. Watts, Efficiency Engineer, Berwind-White Coal Mining Co., Windber, Pa. Mr. A. B. Kiser, Electrical Engineer, Pittsburgh Coal Co., Pittsburgh, Pa. Mr. A. B. Benedict, Sales Manager, Goodman Manufac- turing Co., Chicago, 111. Mr. W. J. Montgomery, Manager Ventilating Depart- ment, Jeffrey Manufacturing Co., Columbus, O. Mr. K. A. Pauly, Power and Mining Engineering Depart- ment, General Electric Co., Schenectady, N. Y. Mr. Carl Scholz, President Valier Coal Co., Chicago, 111. Mr. N. D. Levin, Chief Engineer, Jeffrey Manufacturing Co., Columbus, Ohio. Col. Warren R. Roberts, President Roberts & Schaefer Co., Chicago, 111. After careful consideration this General Committee decided on following classifications of Mining Equipment and appointed members of the General Committee to act as Chairman of Sub- committees, who should have charge of the Standardization of Equipment of such classifications : 1. Mining and Loading Equipment, Mr. Carl Scholz. 2. Underground Transportation, Mr. C. E. Watts. 3. Underground Power Transmission, Mr. A. B. Kiser. 4. Drainage, Mr. George R. Wood. 5. Ventilation, Mr. W. J. Montgomery. 6. Outside Coal Handling Equipment, Col. Warren R. Roberts. 7. Power Equipment, Mr. K. A. Pauly. The chairmen of these various sub-committees were instructed to select the members of their committees, subject to the approval of the American Mining Congress. STANDARDIZATION OF MINING EQUIPMENT 331 This work of organizing the sub-committees has not been entirely completed, but the following is the list of sub-commit- tees which have been organized : 1. Mining and Loading Equipment, Mr. Carl Scholz, Chairman Committee Members : Mr. E. N. Zern, Mining Engineer and Editor of Mining Catalog, Pittsburgh, Pa. Mr. C. A. Cabill, Vice-President Carbon Coal Co., Kana- wha National Bank Building, Charleston, W. Va. Mr. N. D. Levin, Jeffrey Manufacturing Co., Columbus, Ohio. Mr. J. M. Clark, Clark & Krebs, Charleston, W. Va. Mr. M. Mitchell, Sullivan Machine Co., St. Louis, Mo. Mr. William Whaley, Myers- Whaley Co., Knoxville, Tenn. Mr. William 0. Duntley, Duntley-Dayton Co., 1416 S. Michigan Avenue, Chicago, 111. Mr. E. S. McKinley, 625 Denham Building, Denver, Colo. Mr. E. G. Hamilton, 310 Schultz Bldg., Columbus, Ohio. Mr. D. W. Buchanan, President Old Ben Corporation, McCormick Building, Chicago, 111. Mr. George Holmes, General Superintendent, Chicago Franklin Coal Co., Benton, 111. Mr. Walter Stevens, Supt., Valier Coal Co., Valier, 111. Mr. S. W. Farnham, Mining Engineer, Goodman Manu- facturing Co., Chicago, 111. 2. Underground Transportation, Mr. C. E. Watts, Chairman Committee Members: Mr. Charles M. Means, Consulting Engineer, Pitts- burgh, Pa. Mr. Graham Bright, Representing the Westinghouse Electric and Manufacturing Co., Philadelphia, Pa. Mr. Joseph Bryan, General Electric Co., Pittsburgh, Pa. Mr. F. C. Coseo, Representing The Jeffrey Manufactur- ing Co., Columbus, Ohio. Mr. D. F. Lepley, General Manager, Connellsville Manu- facturing and Mining Supply Co., Connellsville, Pa. Mr. E. A. Watters, General Manager, Hicks Coal Inter- ests of Western Pennsylvania. 332 PROCEEDINGS OF AMERICAN MINING CONGRESS 3. Underground Power Transmission, Mr. A. B.Kiser, Chairman (Committee not completed.) 4. Drainage, Mr. George R. Wood, Chairman (Committee not completed.) 5. Ventilation, Mr. W. J. Montgomery, Chairman Committee Members : Mr. E. N. Zern, Mining Engineer and Editor "Mining Catalog," Pittsburgh, Pa. Mr. J. R. Robinson, President, Robinson Ventilating Co., Pittsburgh, Pa. Mr. G. E. Lyman, General Superintendent, Madison Coal Corporation, Glen Carbon, 111. 6. Outside Coal Handling Equipment, Col. Warren R. Roberts, Chairman Committee Members : Mr. G. F. Osier, G. S. Carnegie Coal Co., Pittsburgh, Pa. Mr. W. A. Bishop, G. S. Pocahontas Consolidated Col- lieries, Pocahontas, Va. Mr. F. W. Whiteside, Chief Engineer, Victor American Fuel Co., Denver, Colo. Mr. F. G. Morris, G. S. Coal Mines, Republic Iron and Steel Co., Sayreton, Ala. Mr. A. J. Sayres, C. E. Link Belt Co., Chicago, 111. Mr. W. J. Patterson, President Heyl & Patterson Co., Pittsburgh, Pa. 7. Power Equipment, K. A. Pauly, Chairman Committee Members : Operators' Representatives. Mr. M. D. Kirk, Pittsburgh Terminal Railroad & Coal Co., Pittsburgh, Pa. Mr. W. C. Shunk, Stonega Coal & Coal Co., Big Stone Gap, Va. Mr. J. T. Jennings, Philadelphia & Reading Coal & Iron Co., Pottsville, Pa. STANDARDIZATION OF MINING EQUIPMENT 333 Mr. R. L. Kingsland, Consolidated Coal Co., Fairmont, West Virginia. Mr. G. S. Thompson, Colorado Fuel & Iron Co., Pueblo, Colorado. Mr. D. C. McKeeham, Union Pacific Coal Co., Rock Springs, Wyo. Representatives from Alabama and Utah not yet ap- pointed. Consulting Engineers. Mr. H. F. Randolph, Pittsburgh, Pa. Mr. W. C. Adams, with Allen & Garcia, Chicago, 111. Bureau of Mines Mr. 0. P. Hood. Manufacturers' Representatives Mr. Graham Bright, Westinghouse Electric and Manu- facturing Co., Pittsburgh, Pa. Mr. Nicht, Allis Chalmers Co., Milwaukee, Wis. Mr. K. A. Pauly, General Electric Co., Schenectady, New York. MINUTES OF SUNDAY'S MEETING Col. Warren R. Roberts, Acting Chairman, presiding. Col. Roberts called for PROGRESS REPORTS from the various sub-committees. 1. Subcommittee on Mining and Loading Equipment. Mr. Carl Scholz, Chairman, being absent, this report was made by Mr. S. W. Farnham. "There is only one member present who attended the meet- ings of the Transportation Committee and also the sessions of the General Committee. The Committee heartily approves the work that has been started and concurs with the views expressed in the various meetings. I will report back to the Committee the results of the work at these sessions." Note. Since the above report was received by the General Committee, other members of this Subcommittee having arrived, a supplementary report has been handed to the General Committee, and is attached hereto. 834 PROCEEDINGS OF AMERICAN MINING CONGRESS 2. Subcommittee on Underground Transportation, Mr. C. E. Watts, Chairman. "The Committee on Underground Transportation has met and given consideration to the possibility of bringing within reasonable standards and thereby simplifying, to a great extent, much of the new unnecessary duplication of many of the items now connected with apparatus used in underground transportation ; and it is the sense of this Committee that it is feasible and possible to accomplish standardization without interfering with the interest of operator or manufacturer, and with ultimate benefit to both. "Some of the subjects which should receive consideration are as follows : Track gauge and rail weights and general features of locomotive and pit car design. "It seems that these matters will afford an ample and rich field for consideration. The Committee asks to be continued, and will report back to the General Committee the results of its efforts." 3. Subcommittee on Underground Power Transportation, Mr. A. B. Riser, Chairman (absent). No report from this Subcommittee. 4. Subcommittee on Drainage, George R. Wood, Chairman (absent). No report from this Subcommittee. 5. Subcommittee on Ventilation, W. J. Montgomery, Chairman. This Subcommittee rendered written report, as per attached. 6. Subcommittee on "Outside Coal Handling Equipment," Col. Warren R. Roberts, Chairman. This Subcommittee rendered written report, as per attached. 7. Subcommittee on Power Equipment, K. A. Pauly, Chairman. "Those members of the Subcommittee on Power Equipment who are present have attended the meetings of the General Standardization Committee and heartily endorse the movement, which has for its ultimate object the standardization of mining STANDARDIZATION OF MINING EQUIPMENT 335 equipment. We believe it to be entirely possible through its efforts to bring about the enactment of uniform laws in the several States which will be of mutual benefit to both the operator and the manufacturer of mining equipment. "Considerable valuable work has already been done by the Bureau of Mines and others, and our Subcommittee through close co-operation with the Bureau of Mines, will take advan- tage of the results which have already been accomplished. "We will keep the General Standardization Committee in touch with our work and submit to it for its approval any and all recommendations which we see fit to make." The General Committee, having received these various reports from the Subcommittees, indicates its approval of the method of procedure of the various Subcommittees as indicated by their respective reports and approves the suggestions made by the Subcommittees that they continue their work, reporting back from time to time to the General Committee. The Committee adjourned, to meet in the same room tomor- row (Monday) morning, at 9.30 o'clock. WARREN R. ROBERTS, Acting Chairman, General Committee. C. E. WATTS, Chairman, Subcommittee "Underground Transportation." S. W T . FARNHAM, Acting Chairman, Subcommittee Mining and Loading Equipment. W. J. MONTGOMERY, Chairman, Subcommittee Ventilation. CONFERENCE OF GENERAL COMMITTEE Monday, November 17, 9.30 A. M. The meeting opened with a reading by the Acting Secretary of the condensed report of the conference of this committee, held on Sunday, November 16, 1919, indicating the way in which the work of this Committee was organized, including the formation of the General Committee on Standardization of 336 PROCEEDINGS OF AMERICAN MINING CONGRESS Mining Equipment, and the classification of mining equipment made by this General Committee. Also giving a list of the chairmen of all Subcommittees according to these classifica- tions, and followed by a list of all Subcommittees which were organized to date. The record also gave brief reports from all Subcommittees thus far organized. These reports were carefully reviewed and corrected at this conference, for presentation to the American Mining Congress for approval and for further instructions regarding the work of these committees. In presenting this report to the Congress, the General Com- mittee suggests that if the present by-laws of The American Mining Congress do not provide for such a committee as this, that the by-laws be changed so as to constitute this committee on Standardization of Mining Equipment as one of the perma- nent standing committees of the Congress. In submitting this report, your Committee recommends that The American Mining Congress accept the invitation already extended to the Congress by the American Engineering Stand- ards Committee to join the work of that Committee. In making this recommendation your Committee wishes to advise that by joining this American Engineering Standards Committee, we are under no obligation to submit to them any standards which may be evolved by our Committees, excepting when such standards seem to us to have a general application to other industries. In other words, that our Committees on Standardization of Mining Equipment can carry forward their work if they so chose, independent of the work of the American Engineering Standards Committee. The advantage to the American Mining Congress and its committees on Standardization by joining this general move- ment on standardization, would be that our committees could call on the various engineering societies and governmental departments forming the American Engineering Standards Committee for information regarding standards which may have already been adopted by any of these organizations. Our committees on standardization could also meet with similar committees from the other societies and be of mutual help in formulating new standards. STANDARDIZATION OF MINING EQUIPMENT 337 It is also very essential that' certain of our committees having to do with the standardization of certain equipment which has already been standardized by other societies, or may be in the process of standardization, should consult with these societies, otherwise duplicate standards will be established to the great detriment of this movement. ^ . . The only obligation which The American Mining Congress assumes in joining this general movement of standardization would be to bear their proportionate part of the expense of maintaining the American Engineering Standards Committee, which expense your Committee does not think you will find burdensome. The conference then adjourned, to meet upon call of the Chairman. WARREN R. ROBERTS, Acting Chairman, General Committee. C. E. WATTS, Chairman, Subcommittee "Underground Transportation." S. W. FARNHAM, Acting Chairman, Subcommittee Mining and Loading Equipment. W. J. MONTGOMERY, Chairman, Subcommittee Ventilation. 5. SUPPLEMENTAL REPORT OF SUBCOMMITTEE ON MINING AND LOADING EQUIPMENT (MR. CARL SCHOLZ, Chairman.) At a subsequent meeting of this Committee, attended by S. W. Farnham, N. D. Levin, W. Whaley and E. N. Zern, held on Monday afternoon, November 17th, at the Planters' Hotel, the following supplementary report was made : We approve of the report made by Mr. S. W. Farnham and already submitted to the General Committee. We also wish to emphasize the desirability of standardization of track gauges in the interest of both cutting and loading machinery. 338 PROCEEDINGS OF AMERICAN MINING CONGRESS We urge that wherever mining machinery is employed elec- tric circuits be well kept up in order that a heavy drop of volt- age at the motors be avoided. We recommend that prior to the installation of cutting or loading machinery a plan of operation be adopted and the work- ings be so laid out as to reduce to a minimum delays in chang- ing cars and in the movement of the machines from place to place. We recommend in the interest of loading machines that the clearance between the top of car and roof of mine be sufficient to facilitate the loading of cars by machinery. We recommend further in the interest of loading machines that mine cars of large capacity be used wherever possible. S. W. FARNHAM, WM. WHALEY, E. N. ZERN. 6. REPORT OF THE SUBCOMMITTEE ON STANDARDI- ZATION OF "OUTSIDE COAL HANDLING EQUIP- MENT." PREAMBLE. It is the sense of this Subcommittee and they recommend to the General Committee on Standardization of Coal Mining Equipment, a general program for inaugurating this movement of standardization about as follows : That each Subcommittee should take up the more general and important matters connected with the designing and installa- tion of the equipment included under their subdivision for standardization. After a careful study of these problems, recommendations should be made to the General Committee along the general lines of standardization covering, for example, such subjects as are outlined below. No. 1. Clearances: This Committee recommends that over- head and side clearances of outside mine structures over load- ing tracks be made as nearly uniform as possible, taking into account the railroad regulations and State laws in the various districts. STANDARDIZATION OF MINING EQUIPMENT 339 Where present State laws work hardship on Coal Operators as regards clearances of mine structures, that some effort be made to have this corrected, and to aid in the making of new and uniform laws in States having no regulations. No. 2. Clearance for Over Wind: This Committee recom- mends that the designing tipples and head frames engineers and designers allow enough distance between point of dump and sheave wheels to take care of over, wind, taking into con- sideration the gradual introduction of high speed hoists; that engineers and designers confer with manufacturers of hoisting machinery before arriving at the clearance required. No. 3. Fire Protection: This Committee recommends that the practice required now by certain State laws for fireproof structures adjacent to the mine openings, be approved, and recommends that The American Mining Congress use their influence to secure similar and uniform legislation in other States. No. 4- Suggested Standardization for Merchandising Ma- chinery: That manufacturers of machinery for use about mines be encouraged to standardize all parts of machinery as far as possible. A number of manufacturers have standard- ized drive chains and sprockets, and the Committee recom- mends that this commendable practice be extended as far as practicable to other and similar equipment. No. 5. Co-ordination of Work of Subcommittees: This Com- mittee in attempting to formulate a program of standardization for "Outside Coal Handling Equipment," recognized the neces- sity for the previous standardization of certain equipment to be standardized by other subcommittees, for the reason that in designing the equipment covered by the work of this subcom- mittee certain data and information furnishes the basis for the designing of such equipment and any changes looking to stand- ardization of the equipment allotted to other subcommittees will necessarily become the basis of information used in design- ing the equipment of this committee. This Committee, there- fore, recommends the closest co-ordination of the work carried on by the various subcommittees. This can be done by each 340 PROCEEDINGS OF AMERICAN MINING CONGRESS subcommittee rendering frequent progress reports to the Gen- eral Committee, which, in turn, will transmit such reports to other subcommittees for their information. In other words, the General Committee will become the clearing house through which all subcommittees will carry on their work. Respectfully submitted, WARREN R. ROBERTS, Chairman. G. F. OSLER. 5. REPORT OF SUBCOMMITTEE ON VENTILATION (MR. W. J. MONTGOMERY, Chairman.) GENTLEMEN : The Subcommittee on Fans and Ventilation begs to submit the following report. It is a well recognized fact that no machinery around the mine receives less attention than ventilating equipment. It is also well known that air ways in many instances are woefully neglected, and many mines today are ventilated under the most adverse conditions, and with excessive power consumption. In order to improve conditions we would suggest the follow- ing with respect to Mine Fans : 1. That there be a maximum inlet velocity varying with the water gauge at which the fan is working. 2. That there be a maximum discharge velocity into the open atmosphere varying with the water gauge at which the fan is working. 3. That all fans be so constructed and set that they may be readily reversed in case of necessity. 4. That provisions be made on all fan shafts for the installation of an auxiliary drive. Booster Fans are recommended for use in mines where a section is so remote as to become insufficiently ventilated and where a permanent fan on the outside is in use, but we do not approve of the use of a booster fan as a permanent installation. Fan Drives. We believe in the case of moderate to large capacity mines it is advantageous to the operator to install a permanent fan at STANDARDIZATION OF MINING EQUIPMENT 341 the beginning of operation, and that where the fan is not too distantly located from the boiler house, a steam engine drive is better adapted; this because it is more economical than an electric drive and because the speed of the fan is more easily regulated. Where electricity is the power employed at a mine with a large fan, we recommend a slip ring motor in preference to a squirrel case type. Air Ways. With respect to air ways, we believe that no mine should be permitted to get into such a condition as to require a water gauge of over 3 inches to properly ventilate it, and as a means to this end we recommend as follows : 1. That all air ways be driven straight and where changes in direction are necessary that they be made by long radius curves. 2. That an easement be provided at the bottom of the fan air shaft to enable a change of direction with a minimum of shock. 3. That all air ways be kept clean and free from accumu- lations of falls, mine cars, old timbers, etc. 4. That where overcasts are used the air ways over the bridge be of the same cross section as found in the entries and that an easement be provided on each side of the bridge. 5. That in the interest of both safety and economy the air be divided into several splits rather than forced to travel in one continuous current. 6. That all brattices and stopping be made air tight. 7. That the air shall not pass through old workings to new workings. 8. That wherever possible in a mine, air be brought in or discharged from openings at points remote from the fan. 9. That where labor and roof conditions permit the multiple entry system be used. 10. That a change in the laws governing cross cuts be enacted permitting parallel entries to be driven two hundred feet or more before a cross cut is made. 342 PROCEEDINGS OF AMERICAN MINING CONGRESS The ventilation of these entries to be accomplished by means of small auxiliary fans and the air cur- rent carried to the face through tubing. This method will reduce the cost of making numerous cross cuts and building stoppings, prevent a vast amount of air leak- age and short circuiting, and in turn greatly reduce the volume of air the permanent fan must handle with a corresponding decrease in power consumption. W. J. MONTGOMERY, Chairman. E. N. ZERN. THE RUSSIAN RADICAL AS I FOUND HIM 343 THE RUSSIAN RADICAL AS I FOUND HIM Address by GEORGE W. SIMMONS, of St. Louis, Before The American Mining Congress My connection with the Red Cross has been as manager of the Southwestern Division here, comprising the States of Missouri, Arkansas, Kansas, Oklahoma and Texas, with head- quarters in St. Louis, Mo. I went to France in that connection, and because of my knowledge of the Red Cross work was asked to go to Siberia. I am sorry that the short time allotted me will not permit me to tell you something of the magnificent work your Red Cross is doing in Siberia. I can only say that it bears up with the achievements of your Red Cross throughout the rest of the world. [Applause.] What you did in France, what you did in America and what you have done and are doing today up and down through those countries of Eastern Europe, through Esthonia, Lithuania and all the rest of those destitute countries where they have so heavily felt the burden of the war, your American Red Cross, as your agent, is holding out its hands of friendship and assistance to help them back on their feet. [Applause.] "Close-Up" of Bolshevism The subject assigned to me is to tell you something of Bol- shevism, and I respond because I believe it is my duty to convey my impressions to those who did not have an opportunity of seeing it absolutely first hand, as I did. I went there without knowing anything about it. I went as an American business man, to organize the work of the Red Cross, and what I saw and heard of Bolshevism I saw with my own eyes and heard with my own ears. I handled the victims with my own hands, but I do not propose to discuss theories with "parlor Bolshe- viks" here. My work took me across Siberia and well into European Russia, and may I pause here to give a little knowledge of dis- tance? From here to San Francisco, some 2,500 miles, and 344 PROCEEDINGS OF AMERICAN MINING CONGRESS then double that distance across the Pacific, and then I was hardly half way; then across country, across Siberia, almost 6,000 miles more before we reached the furthermost western point that any American can reach. The place is so big that we do not realize that things which work on a small scale can- not work on a large scale. Nothing But Blood and Murder We went out through that western country and saw the effects of Bolshevism, where the Bolsheviki had complete con- trol from 6 to 12 months and a full opportunity to put into practice any of their theories they wanted to try. In our 12 weeks searching we did not find one constructive act attempted by the Bolshevists ; nothing but blood and murder. They made no effort whatever to practice what they preached. The only division of wealth that I could find trace of was the division from the man who had it to the Bolshevist who took it away from him at the point of a gun, and usually after he had taken the life of the victim as well. The individual has no rights, and under Bolshevism, if he opposes, even by thought, he is shot on the spot without any trial, without any semblance to give the man a show, to state his own convictions. All Males Murdered To illustrate what I mean, I can give you one definite case. We were in the office of Admiral Kolchak, the head of the Siberian Government. Admiral Kolchak is a good man, an honest man, but he has been terribly up against it. Kolchak has no equipment for his forces. There is no merchandise to be had in Siberia. You could not buy a lead pencil for a thousand dollars ; it does not exist. When in his office, he showed me a telegram translated by our own Red Cross interpreter, from a little town in Osa, from the general commanding Kolchak's forces, saying : "We have just captured the town of Osa. There are no males left in the city. Of 10,000 population, 2,000 have been killed. Send some men to run the electric plants," etc. It took us six days across country by sleigh, through the mountains, through the woods, where we would sleep at night in the peasants' houses, throwing our blanket rolls on the floor and trusting to luck that we would not take with us something THE RUSSIAN RADICAL AS I FOUND HIM 345 we had not brought, and it was luck when we didn't, because those peasants' houses were not the cleanest. As we went through these towns we saw the effects of Bol- shevism. We talked with individual peasants. They are a kindly people, most curious. They flocked to our sleighs when we stopped for tea twice during the day. It was pretty cold going for us, who were not used to it, and in every town it was the same story. Securing Evidence Finally we came to Osa, the little town where these atrocities had been committed, and I said: "I cannot take back home second-hand information. Can't you arrange it so that tomor- row morning I can see the widows and the sisters and the mothers of these people who have been killed and talk with them myself?" And I did. The next morning I secured from about 50 different women, one at a time, the exact details of the murder of their husbands or fathers, with the dates and ex- cuses given, if any. Bolshevik Pastimes They assess a man a certain amount of money and it does not make much difference whether he pays it or not. We found instances of where a man was assessed 5,000 rubles and be- cause he did not have it they killed him. Another man was assessed 25,000 rubles. He paid it and then they killed him because he had too much. Another man was killed because he lived in a brick house. I saw the body of that man dug up from a grave by his son and have a picture of it. Another man was killed because he worked for a rich family. He was the man who attended the fires and kept the snow cleaned away in the winter time. They were killing off the rich, so they killed him with them. Everybody connected with the courts, with the churches, with the schools, were killed ; murdered without rhyme or reason, because Bolshevism is opposed to education, religion and private ownership of property. We here in America think if a man owns his own home it is the best thing that can be done for the country. That is a crime in the Bolshevik calendar that is punishable by death ; he has no right to own anything. 346 PROCEEDINGS OF AMERICAN MINING CONGRESS So we went from town to town and found those instances. That afternoon we went out about a mile from Osa to a great plain where the bodies of these victims (who had been killed from the 29th of August along to the middle of November, and those that were buried) had been frozen since the first of November, when winter starts in. The families had been going back and started to dig up these bodies and give them a decent burial. White Collar Is Death Sentence As we went there to see that first-hand, I will describe one or two scenes to illustrate: There were the bodies of two men and their crime had been that they were clerks in a tannery in the town. As Ambassador- Francis said : "A white collar is a death sentence." There was the body of a woman, and some relatives said : "If that is the body of Madame So-and-so, in- side a pocket, in between the lining of her skirt, are some family heirlooms/' And sure enough, there they were. I took them and laid them on the side of the grave, and that was the means of identification. German Trick Caused Revolution That is Bolshevism in practice. The cruelty of it, the bar- barity, is something almost beyond description, and yet we wonder why they have apparently been so cruel. I got the story pretty straight over there, and then when I came home I talked with Ambassador Francis, and he has told me the inside of it, all of the workings of the Duma and the Czar ; how he promised to ratify two decrees to enlarge the powers of the Duma, and how those decrees were brought to the Czar to sign, in the presence of the Czarina, and she, with her German sympathies, flew into a rage and forced her husband to sign a decree dis- solving the Duma. The Duma would not be dissolved, and the Czar called the soldiers to arrest the Duma and they went over to the Duma, and then he called out another regiment and they did likewise, and then the Czar abdicated. But he did not have the nerve to tell his wife that he had abdicated ; he was under such terror of her and her German connections. All that story we got. THE RUSSIAN RADICAL AS I FOUND HIM 347 Germans in Control The thing that surprised me the most was the absolute domi- nation of Russia by Germany before the war. Many of the governors of provinces were Germans, the head of the Russian Secret Service had a German wife, and the head of the Russian Army Supply Department time and time again accidentally lost supplies routing them via the Arctic Ocean. In spite of all that, the Russian people, as a whole, were true and solid down in the bottom of their hearts. In spite of their Government, they kept their army fighting through the little community organizations. American Recognition of Revolution Ambassador Francis did one of the most magnificent things of the war when he recognized the Kerensky Government after that revolution that opposed the Czar. That delayed for eight months the German drive on Paris, that drive which later took place in March, 1919. I was in France and know what that drive was, and by delaying that drive he held on the eastern front a million or more German troops that, had they been transferred eight months sooner, before France and England were ready, would have wiped them off, and all because our "Dave," of St. Louis, had the nerve and foresight to say to President Wilson: "Authorize me to recognize this govern- ment. It is our only salvation." President Wilson cabled back : "Go ahead." Germany had been fighting to batter down the defenses of Russia, and then she saw her chance to accomplish this by her intrigue as she had failed to do with her army. She sent to Switzerland and got Lenine and Trotzky to carry out her bid- ding, to destroy the Russian army, destroy the Russian indus- try and demoralize the Russian people. And they did it promptly. Lenine Was Clever Lenine said to the Russians : "No more war, no more work. Division of lands and division of money." Do you wonder that those simple people, 85 per cent, of whom can neither read nor write, jumped at that ? Within three days Trotzky, with a little 348 PROCEEDINGS OF AMERICAN MINING CONGRESS band of soldiers, had possession of every firearm, and it was a capital offense to have possession of one. Then he started to get his army together. The workmen said : "No, we don't want to fight." But they were told they must fight, and those who did not were shot, and the others gave in to save their lives. Kerensky was a good man, but he was not strong enough to swing the job. Trotzky sent down and got 1 00,000 Chinese coolies, who were the scum of the earth, and put them in the rear ranks of the Red army, and they are there today to shoot in the back any Russian peasants in case they give way before the attacks of Kolchak. That is the way they have held their control. Lenine a Dreamer And yet Lenine himself is a dreamer, a crazy fanatic appar- ently, but honest and sincere, so everybody says. Lenine has this one ideal of the universal idea of men and the destruction of government. You say to him: "Did you use German money?" And he will answer: "Sure I did. I will use Ger- man money, your money, or anybody's money, if it will help me accomplish 'Universal Brotherhood of Man/ " You ask : "Do you approve of Trotzky's methods of bloodshed and murder?" And he will say : "No, but if it will help accomplish 'Universal Brotherhood of Man,' it must be done." Lenine made a statement in which he said that they realized that in an agricultural country like Russia, with some 85 per cent, of the people living on farms, Bolshevism could never succeed. "But," said Lenine, "before we have failed here we will have kindled the fire throughout the world that will never be quenched." World-Wide Propaganda It is well known that they took over billions of dollars of gold and they secured the control of Petrograd. It is reported that most of that is being spent outside of Russia and not inside of Russia. It is being spent to light the fires throughout the rest of the world, and that means here and in England and France and various other places. Underneath it all, it seems to me, there is at least a chance that, if Germany had it within her power to snatch from the THE RUSSIAN RADICAL AS I FOUND HIM 349 rest of the world the fruits of our victory, by her intrigue, after she had failed with the force of her army, she would cer- tainly do so; that Germany is today waging an economic war to regain the trade supremacy in the world is evident on every side in my own business. I was informed by one of your prominent members that the authorities in Washington have direct evidence of Russian money having been paid to agitators during the steel strike, and possibly the coal strike. We see it right here in St. Louis, and that is why I say that this is something in which we should all be vitally interested. Germany Going After Trade In closing, may I give you one or two other instances of what I mean? In my own business (the hardware business), in which I am now back again after two years of Red Cross serv- ice, one of our Simmons Hardware salesmen wrote to us less than a month ago that two German salesmen arrived in South America, one with 12 trunks and the other with 20 trunks of samples of cheap cutlery and tools and small shelf hardware, at prices several times higher in marks than before the war, but which when converted into our money were less than American costs. These Germans guaranteed delivery 60 days after receipt of the order. Plenty of German Money I also have letters from Rome, written to one of the Chicago manufacturing companies, saying that some months ago they had a big riot over there, but the Italian Government was pre- pared for it and in 48 hours arrested 4,000 men. Every single man had German money, but not one of them had Italian money. There has not been any rioting since, because they knew they could not get away with it because the Government was watching them. In Havana a German ship arrived just 20 hours after the announcement was made in Washington that it was now legal to trade with Germany. That is pretty close connections. You might say: "What has that to do with us?" It seems to me that it must stir up our public opinion to take the kind of action the American people are dead sure to take when they are aroused. 350 PROCEEDINGS OF AMERICAN MINING CONGRESS Agitators Still at Work We could not realize that the same type of men, and some- times the same individuals, who were connected with the blow- ing up of munitions works and the burning of grain elevators and of our spruce forests during the war are today applying their firebrands to the inflammable brain of the alien workmen within our boundaries, and of those dissatisfied American citi- zens who are seeking their own personal aggrandizement, with- out being willing to pay the price of the success which is open to every good American under our Constitution. I am not pessimistic over the situation. I have supreme con- fidence in the judgment and eventual action by the American people on any big question, once' they are aroused to the real facts in the case. Therefore, it is your duty and mine, and the duty of every other good, red-blooded American, to let it be known in no uncertain way that we stand for America first, last and all the time ; that we shall refuse to be dominated by any minority or any class, regardless of who or what they rep- resent; that we shall not only ourselves abide by the majority vote on the theory of the greatest good for the greatest number, but that we shall insist upon all others who avail themselves of the privileges of American citizenship assuming the same obli- gations and maintaining our traditions. Will Demand Americanism Let our representatives in State and National Legislatures understand that we will stand for no dodging on this question, and will send to those legislative bodies only men who are free from domination of any class or organization. Further let it be known in no uncertain way that the American people have gone on record against Bolshevism, I. W. W. and other issues of that sort, and that, whenever any person attempts by speech or teaching to destroy the Government of the United States and its Constitution by force, or attempts to pull us down to the degraded levels of these European countries, America will arise en masse and demand the imprisonment of such men for as long as may be necessary to protect our country and our ideals of democracy and freedom; and, furthermore, if those men be aliens and not our citizens, that they shall be sent back home, where they belong. "THE RULING PASSION" 351 "THE RULING PASSION" Address by ALLEN WALKER, of New York I come before you today, Mr. Chairman and Gentlemen, not as a banker, but as a citizen who happens to have taken oppor- tunity for some special study of industrial and social relations over the world during the past few years and as one who had enjoyed some participation in the organization of a construc- tive national movement for the development of better general conditions along these particular lines. It is in this capacity that I was asked to address you, and I do so gladly, appreciative of the chance to meet with a body of men whose efforts are to search their own industry for such co-operative elements as may assist the national welfare in the same helpful direction. Not many weeks ago my wife and I were traveling from Boston with friends a business man and his wife and while in the smoking compartment my friend and I continued a dis- cussion, which had started during luncheon, on prevailing social and economic conditions. Our conversation was interrupted by a gentleman who sat nearby, who said he was a fireman on the New Haven and Hartford Railroad. He remarked that most of the trouble today was due to the profiteers the capitalists, he explained and that a reduction in the cost of living was the primary need. "As a fireman," he said, "I earn only $240 a month and I have a family and three children to keep. I simply cannot make ends meet." "No," answered my friend, "I suppose not. But I notice you are the only man in this compartment who is wearing a silk shirt and silk hose." "Well," replied the fireman, "have I not the right to wear silk if I wish the same right that any man in Wall Street has?" "Exactly," was the reply, "but I would ask you, very respect- fully, if you know any of the men whose wealth you now covet who ever attempted to wear silk underwear when they were earning $240 a month ?" 352 PROCEEDINGS OF AMERICAN MINING CONGRESS There was no further argument. On the very same journey there was some hitch in the traffic department of the railroad and our train was switched back into the Providence yards for a time. While the train was at a standstill in the yard, my friend and I walked toward the depot, the ladies taking a little fresh air opposite a line of Pullman cars drawn up nearby. Alongside each Pullman car stools were set, and upon each stool was a scrubwoman busily employed in cleaning the car windows. The ladies, interested in our previous discussion, walked along the line of stools and indulged in a little visit of inspec- tion on their own account. When we were together in the car again one of the ladies said : "Apropos of what we were dis- cussing at lunch ; when we stood opposite that window-cleaning scene we carefully noted that we were the only women in sight not wearing silk stockings." Wasteful Public A Boston hosiery manufacturer recently informed me that when the Council of National Defense a few months ago issued its proclamation concerning the need for minimum spending and maximum production, he (the manufacturer) adopted the expedient of raising the price on his silk and lowering the price on his cotton hose. He thought this was a patriotic thing to do and would help people of moderate means. To his astonish- ment, during the succeeding three months he sold 25 per cent, more silk hose than before and about 20 per cent, less cotton. Is there not some answer to the question of the hour in this known condition of things? I think if I were asked to lay out a programme of sermons to be preached from every church pulpit for the ensuing year I should advocate a series developed around the menace of the present-day money madness. The ruling passion is extravagance, the arch enemy of thrift, supplemented by a very common determination to do as little as possible for as much as it is possible to get, by fair or unfair means. The basic sin at the bottom of all our social unrest is that same covetousness against which we are warned in the Tenth Commandment. I was keenly interested in the preachment of a man who not long ago addressed a large gathering of steel employees in "THE RULING PASSION" 355 Gary, Ind. He described himself as a "converted Socialist," naively remarking- that he had read himself into Socialism and thought himself out of it. He began by referring to a lecturer a long-haired gentleman who had preceded him by a few days and who had informed the same crowd that 1 per cent, of the people owned all the wealth of the country and that since labor produced 90 per cent, of the country's wealth labor should "have its due." The Converted Socialist "Now," said the convert, "I am going to prove to you a little later that those statements are untrue, but in the meantime content myself by stating that even if they were true they need not cause us half the worry the Socialist preacher hopes they will cause you. Have you ever stopped to analyze things for yourselves ? Do you know that I have worked out and chal- lenge disproof of my statement that if you should confiscate all the wealth of the people in this country who now earn more than $10,000 a year and distribute it equitably over all the rest you could increase the income of the beneficiaries by just 10 per cent. and no more. That is, the man now getting $2,000 a year would then receive $2,200 and so on. And in the mean- time you would have destroyed all industry. Is it worth while ? "And speaking about participation in management, did you ever stop to think that 1 per cent, of the people supply all the music of the world, all the art of the world and all the litera- ture of the world. But Providence has somehow provided that we, none of us, can keep altogether to ourselves any of the talents with which we are endowed. You never heard of an opera singer who was content to sing in a cellar, nor of an artist who hung his creations in an attic. No, they all must needs discover the largest possible audience for the consumption of what they have to give to the world. And, curiously enough, no one envies them their monopoly of their talents, save the Russian Soviet leaders, who, we are told, butchered their leading musicians and painters in Moscow because of their 'plutocratic tendencies/ "It is the same with those who, by dint of striving, have accumulated large material possessions. John D. Rockefeller cannot add a dollar to his income next year which will enable him to wear two coats or two collars at a time ; nor will, I ven- 354 PROCEEDINGS OF AMERICAN MINING CONGRESS ture to add, make him one whit the happier. Every new penny he turns must go into industry to create new opportunities for you and for me. "Managerial genius is just as rare as artistic genius, as any employment agency can tell you." One member of the audience did not care for this sort of reasoning. "That is all very well," he interrupted. "I can't argue against you, but all I know is that the last time I was in New York I went down there riding under a train I saw men and women leaving their mansions on Fifth Avenue and riding in their limousines, with lapdogs and all, while we here slave eight hours a day to make ends meet. And I tell you it ain't fair." "Go and Do Likewise" Loud cheers followed this outburst, but, nothing daunted, the speaker shot back this at the gentleman who had elicited the applause : "Well, all I can say to you, sir, is this : 'Go thou and do likewise in the only country on God's earth where the man who digs the drains today may ride in his own limousine tomorrow. No more than you have I any use for a lavish and foolish display of wealth, but I challenge you to point to any one of the men whose position you envy today who ever got where he is by refusing to work more than eight hours a day/ " With this simple, straight talk a lesson in elementary eco- nomics, indeed the speaker continued, and in thirty minutes he was being cheered just as loudly as the gentleman who had heckled him. It was the first time these people had received the gospel of truth from a source which they regarded as acceptable and which they felt they need not discount in advance. Time to Awaken Here, then, surely, is one thing that is wrong. We business men have each of us been so busy in our exclusive corners as to be unmindful of the things which underlie the very foundations of the national prosperity, which means the national welfare and our welfare, and of that of our children and our children's children. Too long have we failed to realize that what kind of a country this is going to be to live in ten years hence is much "THE RULING PASSION" 355 more important to each and all of us than the volume of our profits for today or what kind of contract we are going to sign tomorrow. We are awakening to it now, in a time of national crisis, and some there are who impatiently would press those in authority to turn about and find an overnight remedy. What have we business men done to disseminate economic truth as against the prevailing abundance of fallacy ? Employes Need Education A factory worker the other day approached his manager and said : "Agitators come to our union meetings and say a lot of things that most of us know are not true, but nobody gets up to refute them." "Why don't you stand up and talk back to them?" asked the manager. "What can I say?" the worker asked. "Everyone knows that relations between employers and employees generally over the country are not what they should be. These agitators say they have a remedy. I and my pals know that their remedy is rotten, but we have no alternative to offer and until we have one we cannot talk back with much hope of winning the argu- ment or making any impression on the meeting." That statement is very much to the point. Very definite effort is required to put simple economic truth into the minds and mouths of every factory worker so that they shall not feel compelled to sit silent and unaffected while knowing in their own minds that the arguments of the radical persuaders are unsound. These things that are wrong must be set right, and they can be set right if the motive and the will to correct them be strong enough. The task is everybody's job and does not belong in the cate- gory of Government action alone, nor in the sphere of any par- ticular authority detached from all right-thinking citizens them- selves. It is becoming rather plain, too is it not? that great solutions cannot be found by reckless assumptions as to specific remedies regarded as being capable of application overnight. It is plain, also, that social diseases 'cannot be cured by negotia- tion nor conference where there is no accepted declaration of principles upon which to base co-operative action. 356 PROCEEDINGS OF AMERICAN MINING CONGRESS Real and Not Imaginary Danger We must not accept any hasty analysis as correct nor assume that there is any quick or simple solution ready at hand. With those who choose to dispose of consideration of the present industrial unrest as "after-the-war" reaction, assuming that the trouble may soon blow over if we sit still and do nothing about it, I have very little patience. As a matter of fact, the cataclysm of social change in Europe should have no parallel here. There, it is the result of the long cumulation of social and political wrongs. It is no sudden aftermath of war. Cer- tain forces were projected into actual realization by the collapse of the war, the breakdown in the political institutions that had preceded it, and by the misery which had flowed from it. We have not the vivid class and economic conditions of Europe, nor have we the depths of misery out of which these matters can crystallize. We have a larger social conscience, and our soil would offer little fertility to these new growths were it not for the persistent irritation of those who have presumed upon our hospitality to the extent of showing us how to improve upon our liberal institutions and processes of orderly government here. The Parlor Socialist The gentlemen who are trying to teach us a new science of government are being very actively assisted by quite a number of faddists "parlor Socialists" they are called with whom it is regarded as quite the proper and f a'shionable thing to com- miserate with the long-haired quacks who dispense academic anarchy in disguise. I know of quite a number of worthy and thoroughly well-meaning men and women in New York who are being fooled to death and bled by these new species of reformers to support their cause camouflaged by devious outward coat- ings of harmless sociological preachments. I have been a member of a committee which conducted inves- tigations over a period of seven months along these lines, and we found that several charitably disposed men and women of prominence were regularly contributing to radical organiza- tions who would even go so far as to procure specific appropria- tions of money upon the submission of certain propaganda for wide dissemination, and that after the appropriation was "THE RULING PASSION" 357 agreed to and the check received, the executive members of the organization would go to work and prepare and distribute an entirely different kind of propaganda and for entirely different purposes than those conceived in conference with the good angels who were putting up the money. What these faddists and all those who tolerate radicalism fail to understand is that the real division of people actively connected with the labor problem is not between workers and employers, but is between the constructive people and the destroyers. These latter people do not want peace. They work independently or collectively, as may be convenient, inside of existing labor organizations or outside of them ; in the parlor, in the street, in the factory or on the farm. Their job is to increase the prevailing social dis- eases until the existing order falls over. Their job is to foster, not to eliminate, class warfare. A Simple Answer I believe the answer to all this demagoguery is surprisingly simple and that the platform upon which American citizens may be bidden to stand as they face the future will consist of some form of reassertion of the old ideals of equality of oppor- tunity and individual freedom established in our original Constitution. Mark you, I am not altogether in sympathy with those who cry "back to the Constitution," and offer this as the curative slogan upon which to base the activity of patriots. I am very doubtful if the American people, at this stage of our history, can be enthused by being asked to "go back" to anything, even though it be true that the merit of our institutions has stood the test of 150 years in a fairly successful endeavor to provide a square deal in citizenship. Rather am I encouraged to feel that the eyes of our people are turned forward and that they are in the mood to subscribe to the belief that by looking facts in the face and by the right kind of co-operative effort we may develop an even better America than we have ever known. There are grievances legitimate enough requiring the attention of thoughtful men and a determination to eradicate them in a truly sympathetic spirit. The difficulty is to persuade some of our theorists that you can never effectively remedy what is wrong in any kind of organization by a series of violent jerks. 358 PROCEEDINGS OF AMERICAN MINING CONGRESS It can be done only by a gradual strengthening of the weak spots, with proper regard for the smooth processes of law and order. Economic Problems These problems of social hygiene and industrial relations no longer are to be regarded as problems for the exclusive atten- tion of large employers of labor. They are not mere employ- ment problems at all; they never were. They are broad eco- nomic problems in which every American citizen has a personal interest and a patriotic duty to perform, for patriotism is not a cloak of war time, to be discarded when peace comes to us again. As a matter of fact, I have, in my observations around the world, seen much harm done by large employment interests, who, thoughtless of the common good, have endeavored to settle their problems on the basis of individual expediency rather than upon a basis of principle. The sacrifice of principle in the interests of expediency is at the bottom of 90 per cent, of our troubles, both political, social and economic. We all with- out protest have seen the rights of individuals sacrificed to the threats of a class. We have seen those who represent the people yield their own judgment to the terrors of organized proscrip- tion; we have witnessed cowardice in the presence of blatant minorities and have gone about our business believing that it was some one's else job to right the wrong. Are we content with our lot now? I believe all right-thinking men in America today are aroused to the need for a declaration of principles by which they shall stand, come weal, come woe, believing that if the advocates of fallacious doctrines have organized for the shock, they, standing for the preservation of our institutions, had better take their medicine now and be done with it. That does not mean that they seek any test of strength with those whose success depends upon the extent to which they can foster class warfare, nor that they have any other than a constructive programme upon which to build a campaign of educational effort calculated to offset the fallacies now being preached by "long-haired men and short-haired women," from parlor, pulpit, soap box and seminary. As suggesting some of the funda- mentals by which all straight-thinking Americans might agree to stand, I would offer the following : "THE RULING PASSION" 359 Sound Business Suggestions 1. That the national interest cannot be served by attempted compromise with or placation of the advocates of what is economically unsound ; 2. That in the category of "unsound doctrine" should be placed every proposal which challenges individual free- dom and the rights of property granted by the Constitu- tion of the United States; 3. That every citizen interested in furthering the cause of industrial peace should strive for the elimination of "class warfare" as being the basic evil of the hour; 4. That the duty to observe contracts entered into in good faith is at all times superior to the right to strike ; 5. That the inviolability of the contract or agreement between employer and employee should be regarded as a solemn covenant, and that any willful breach thereof on either side should be regarded as a violation of American honor and citizenship ; 6. That employers everywhere should earnestly seek to do away with the cause of the legitimate grievances of em- ployees. Those who cannot distinguish between the legiti- mate and the fallacious can be assisted in their diagnosis. This may be accepted as sound because no cause ever thrived enduringly upon illegitimate grounds ; 7. That the interests of none are served permanently by the stopping of production or by any interference with the machinery which moves for the maintenance of the national prosperity; 8. That public sentiment should be developed to insist upon the maintenance of law and order regardless of all indus- trial differences anywhere and everywhere, and that all organized effort shall be accorded its victories through orderly processes, and none other; 9. And lastly and above all that no organization of any kind shall be permitted to develop, nor even to exist, which in political power or influence may be bigger than the Government of the United States. There is need of a general recognition of the fact that there is no such thing as a labor and capital problem, one distinct 360 PROCEEDINGS OF AMERICAN MINING CONGRESS from the other. It is all a production problem, and a full day's work for a full day's pay should be as much a part of the patriot's creed remembering our friendly competition v/ith the rest of the world as is belief and pride in Old Glory. Another False Theory I have heard it said by some of the advocates of government ownership of public utilities and government control of natural resources that one of the great advantages of ownership and operation by the State would be a better relationship between labor and the community, as against the existing relationship between labor and capital. This is another of the assumptions based upon theoretical concept. In reference thereto, I would point to the situation in Great Britain, where they recently have had one of the most dangerous labor disputes with which the country was ever confronted, and it was a dispute between labor and the government which means between labor and the community as a whole. Premier Lloyd George made refer- ence to this very fact in his recent refusal when he replied to delegates from the Miners' Federation of Great Britain to support any policy of nationalization of the mines. I believe there is a good deal of misunderstanding and mis- conception in the country today regarding what the people as a whole believe and what the people want. We have heard some statements made with considerable emphasis as to the deter- mination of certain industrialists to "break down the organized Jabor movement." I for one do not believe that. I think I may say that my contact with industrial leaders up and down the country during the past few years as a mere matter of oppor- tunity has been as comprehensive and frequent as that of any individual in the United States, and I can say without hesita- tion that I have never yet met a business man who gave utter- ance to any such hope or desire. Of course, there are radicals and reactionaries in every branch of society, but I have yet to find the industrialist who objects to reasonable combinations of wage earners organized for the purpose of improving the conditions of labor. I have, however, heard many objections and I think we shall hear them still more positively and more generally stated during the next few months to the right of aggregations of any class to win power to force political issues "THE RULING PASSION" 361 and, in the employment of that power, jeopardize the rights of other citizens. "Rights and Duties" It is a fallacious idea that there is any distinction between the citizen rights of wage-earners and others in the United States. And I think we might wish that there was less fre- quent omission of any mention of the citizen duties of wage- earners and everybody else. Ordinary citizens generally under- stand that they must "accept" the law from the courts and judges, and I think there is fairly positive objection to the idea that there shall be any special class of citizens who may choose which laws they will obey and which they will defy. Attention has been drawn to the fact that the American Federation of Labor and the Railroad Brotherhoods have united in a call for a conference to consider "the foundations of the structure" of the labor movement in the United States. The call says that its "fundamental principles" are threatened and that there is necessity for a programme which will protect the "citizen rights of wage -earners." The proposed new law which provoked this call to conference as yet is merely a proposal that labor connected with railroads shall receive specific privileges in conditions of employment in consideration of something like an enlistment which shall prevent striking without punishment for violation of contract. I suspect that there will be little public support for a movement which proposes to commit labor to something like a rebellion to enforce the declaration that nothing can be enacted which shall in any way limit labor's right to strike at any time for any cause. If that seems too strong an interpretation to put upon the stated assumptions of what formerly was regarded as conser- vative labor leadership I would point out that within the past month Mr. Gompers has repeatedly declared that wage-earners would not even accept compulsory arbitration and would not obey anti-strike laws even if declared constitutional by the Supreme Court of the United States. And Mr. Plumb promised us an industrial revolution if the plan was enacted. Labor Degrades Congress Year after year labor has caused Congress to degrade itself by forbidding funds for the prosecution of lawbreakers to be 362 PROCEEDINGS OF AMERICAN MINING CONGRESS used against unlawful acts performed by special classes. At the same convention which ordered the coal strike there was presented a report rejecting the doctrine that unions and their officers can be held responsible for violence against the opera- tors and workers of non-union mines. Thus is the citizen's right to work brought into conflict with the citizen's right to strike a conflict of humanities which needs considerable ad- justment before public sentiment and sympathy may be won in support of those who claim that their purposes are merely the lawful betterment of conditions under which they exist. In this conection, however, I think it wise to suggest that we do not forget that the real aim of all legislation and all organ- ized effort, of any and every kind, should be not to prohibit strikes but to prevent them. And no wise employer is losing sight of the fact that the first and surest remedy after all so far as his duty is concerned is to eliminate the desire to strike by doing all that lies in his power to make working conditions what they should be. Thrift and Production Is it altogether useless to try and establish the universal recognition for maximum thrift and maximum production at this time? If it be not possible to bring about industrial tran- quility otherwise, I should like to see emanate from some authoritative source a serious proposal for a twelve-months' armistice between accredited representatives of labor and capital with a commission in each State consisting of one rep- resentative of labor, one representative of capital and manage- ment, one representative appointed by the State government and two appointed by some national organization which has won public confidence. The representatives appointed by such an organization should be neither capitalists nor laboring men, but preferentially educationists or men having no holdings in industrial plants. The same kind of a commission might be appointed as a national body with authority to act as the last court of appeal. Such an armistice should be real no lock- outs and no strikes during that time. The same wages as now prevailing should be maintained, but permitted to vary in each community based upon fluctuations in the cost of living. Stand- ardization in wages and ensuing adjustments could be decided "THE RULING PASSION" 363 by the State commissions, with the national body as the final arbiter, each side pledging itself in advance to abide by the verdict of the national commission. Then I would like to see during this period of twelve months a national propaganda as comprehensive, effective and as intensive as the Liberty Loan or Red Cross campaigns in behalf of thrift and produc- tion, a real educational effort whereby in the simplest language every citizen would be made to understand why the observance of these maxims primarily would be in his and her own interest, and consequently in behalf of the national welfare. Must Work Longer Not Less We cannot save and find money to invest in securities to help reconstruct the world and simultaneously spend our earnings in luxuries which are beyond the means of the prudent and thrifty. We cannot listen to the demand for six-hour days and five-day weeks and still hope to produce the materials even for our own needs, let alone what the world requires of us. Neutral countries such as Holland, are sending raw materials into Ger- many, with a pledged lien on the finished product, in response to the German request that she shall have an opportunity to employ her people and start her factories going. It is said that the German workers are pledging themselves, through their local organizations, to be satisfied with a ten-hour day, and that in many places they are urging a twelve and sixteen- hour day until the peak of reconstruction be reached. If this be true, if Germany does this and we are content to gradually shorten our working hours and automatically restrict our pro- duction thereby who in the last analysis will have won the war ? Did you notice the recent statement of M. A. Merriham, secre- tary of the Metal Workers' Union, who created a sensation in Lyons, France, the other day by diagnosing the wave of im- morality which threatens to submerge all classes of society, the working class more than all others. Socialist Ridicules Six-Hour Day M. Merriham, a Socialist, who conferred with the German Socialists at Zinnerwald, Switzerland, during the war, and for- merly one of the most aggressive labor leaders in France, ridi- culed the pretensions of extremists of labor organizations who 364 PROCEEDINGS OF AMERICAN MINING CONGRESS talked of such plans as a six-hour day. He said that what organized labor needed was to get to work. "You talk of a revolutionary situation," he said, "but left to itself the prole- tariat could accomplish nothing. The war has sharpened all appetites and produced all sorts of covetousness in all circles, even among the workers. Idealism has foundered under base material preoccupation. Money is everything. No one wants anything but money. We must save the working classes from that wave of immorality." M. Merriham's speech made a deep impression on the dele- gates and he received a great ovation as he left the platform. The laboring people of the world may need more money and better conditions. But the way to get these things is not to do poorer work and less of it. There never was a time in history when the workers, from the girls in the kitchen to skilled pro- ducers in the factories, produced so little and asked so much as right now. I am a worker myself and I have never seen any intelligent hope of getting a raise in salary by making my out- put less and punker than it now is. "Save and Produce" Slogan No thoughtful American industrialist has ever quarreled with high wages; high, let us say, in comparison with wages paid for similar work in other parts of the world. For many years the wages paid to American railroad men have been con- siderably higher than those paid to railroad employees any- where else on the face of the globe, yet we have been able to carry a ton of freight per mile cheaper than the railroads of any other country. It is the tendency to decrease production that the patriotic American citizen quarrels with today. How- ever, many and whatever be the theories offered for the solu- tion of the vexing problems facing us today, I hold that there are two maxims which if universally and effectively applied will solve most of our difficulties both here and in every other part of the world. They may be embraced under the two words "save" and "produce," and above all, in God's name, let us produce! THE RED MENACE 365 THE RED MENACE Address by DR. CHARLES W. GORDON (Ralph Connor), Winnipeg, Manitoba It was only two days ago, while attending another congress in the city of Pittsburgh, a congress on Good Citizenship, that I received a telegram from a gentleman in Winnipeg advising me that it was very important that I should come here to St. Louis and attend this Mining Congress, and give such infor- mation as I could to you gathered here, among other things, concerning the late Winnipeg strike. If I could have escaped that responsibility, I should have done so, but knowing that my friend himself could not be here, and being in the neighbor- hood (because I believe Pittsburgh is not so very far away), I thought I might come at least and do my best, but I have not my material with me. I have no authentic records. I have only studied the subject in a general way, and I labor under the additional disadvantage of not having been present in Winni- peg during the strike, being absent in England at the time. I, therefore, must crave your indulgence if what I give to you will be more or less of a general character, and indeed it may be somewhat fragmentary. If I had had opportunity, I could very easily have produced the data which would be necessary for me to support anything that I have to say. I shall be care- ful not to make statements, of course, which I believe cannot be thoroughly substantiated by facts. Trouble Originated from Small Strike The Winnipeg strike was not intended as a "Red" movement. It originated in a very small way in a quarrel between the metal workers or some of the metal workers in Winnipeg with their employers, involving dismissal. The demand was made for re- instatement and that demand was refused. The specific labor organization involved took up the case, and failing to negotiate a peace, the strike was adopted by the other organizations of labor in the city. Finally the Trades and Labor Council, which represents all labor organizations in the city, called what was 366 PROCEEDINGS OF AMERICAN MINING CONGRESS known as a "general strike." And it is that general strike that I have to deal with tonight. Now, I shall ask you to go back to the years previous for a little history that is necessary for the clear understanding of the strike of last May and June. About a year ago discontent arose among the city employees of Winnipeg the firemen and policemen and other civic workers. They demanded the right to organize, which was granted; the further right to affiliate with other labor organizations, which was refused, as well as better conditions of work and better pay. A strike ensued on the part of these civic employees, but it was soon allayed and a kind of peace was brought about, but the feelings aroused dur- ing that strike remained behind, an aftermath of suspicion on the one side and resentment on the other. And these feelings reappeared in the strike of last summer. All Industry Tied Up Now, I do not need and I will not go into details of the progress of the strike. The strike was very effectively carried on ; every industry was tied up, not only industries of produc- tion, but every other industry as well. The strike tied up all the civic employees; our telephone service, which is a Pro- vincial utility, the telegraph service, the postoffice, which is a Dominion utility and is controlled from Ottawa, our Central Government. No communication could go out by letter or by telegraph from the city of Winnipeg except by permission of the Strike Committee. The necessities of life were finally con- trolled by the Strike Committee. A gentleman was calling on me the other day and, referring to his experience during the strike, told me something like this : He owns a large block in which he himself has an office. He discovered one morning that the water would not rise up to his particular flat. There were tenants in the block who needed water and none of them could be supplied. He went to the Mayor of the city about it and found that he could get no re- dress, the Mayor frankly acknowledging: "I cannot control the water supply; you better go and see the Strike Committee." He went to the Strike Committee and put his case, and had really to ask for the use of sufficient water to supply the tenants in his building. This was not immediately granted, but the promise was made that his request would be considered. THE RED MENACE 367 Strikers Completely Controlled The climax was reached when various public institutions and various industries for the supply of necessities of life were car- ried on by the express permission of the Strike Committee. For instance : The bakers' carts went around the streets with a notice on them, "By special permission of the Strike Com- mittee"; the milk carts went around, "By permission of the Strike Committee" ; the theatres stood open, "By permission of the Strike Committee" ; practically the city government as well as the industries of the city were carried on, "By permission of the Strike Committee." It was that more than anything else that brought matters to a head and brought about the destruc- tion of this movement which came to be recognized as a "Bolshevist Movement." Regaining Control Now, against the "movement" you had these forces: The Civic Government; the Mayor and Council; the Provincial Government, which has its headquarters at Winnipeg, and the Dominion Government, which was interested in maintain- ing of law and order. The steps taken to control the situation were these : When it was discovered that the police were taking their orders practically from the Strike Committee, while still wearing their uniform and patrolling the streets, a "Citizens Committee" was formed and this committee proceeded to or- ganize a volunteer force of special police. These were plain- clothes men. After that the force was increased by a detach- ment of mounted men, still plain-clothes men. When that was found to be insufficient to protect the city and to guarantee security for life and property the militia units were called upon men who had returned from the war, and I am rather sorry to say that the call was obeyed with great alacrity. The boys seemed to enjoy a little war at home after being at the war in France. Lastly, they called upon a very distinguished body of men held in great honor with us the "Royal North- west Mounted Police." Many Critical Hours It was the combination of these forces that made it impos- sible for the Bolshevik element to advance a single step. There 368 PROCEEDINGS OF AMERICAN MINING CONGRESS were very critical moments, however, in the history of that strike. For instance, that was a very critical moment when a deputation, which had asked permission from the Provincial Government to wait upon the Government, invaded the Legis- lature, filling that building from the floor to the ceiling, and there made their demands of the Premier of the Province and the members of his Cabinet ; made their demands in the most violent, threatening and insulting way. That was a very critical moment. Bloodshed Narrowly Averted A second time a deputation came to the Government. One of the members of the Cabinet, speaking to me about this the other day, described that particular hour. "He felt like a man carrying a match into a powder-making concern," he said. "I did not know what would happen any moment. Of course," he said, "we were ready for the most extreme meas- ures; the militia were there with machine guns and ball car- tridges in their rifles, and back of them the mounted police." Fortunately, nothing did occur at that particular meeting and bloodshed was- avoided. At last, however, after all parades had been forbidden, the strikers announced that they were to have a silent parade in protest against the efforts of the Gov- ernment and of the civic authorities in refusing their demands and suppressing their liberty of action. This parade was for- bidden and yet it was announced that it was to be held. The militia were ordered to hold themselves in readiness ; the offi- cers went down and saw the strike leaders, informed them of the responsibility they were taking, how serious it would be. The officer in command told me how he was surprised and pained to find among the strike leaders one or two members of his own battalion that had been with him in France, but there were not very many of the returned soldiers with the strikers. Northwest Mounted Police Next day the clash did come ; some men were killed, but the streets were cleared. That was practically the end of the strike. The spectacular appearance of the Royal Northwest Mounted Police and their effective work was something that will never be forgotten by Winnipegers who were present to THE RED MENACE 369 witness. Will you allow me to digress here, to give you a short sketch of that body of men, that corps of policemen that for the last 35 years have held the Northwest absolutely quiet and safe, so that property and life have been safe to the farthest northwest of our Dominion ? No matter how wild the mining camp, no matter how remote from civilization, life and property have been as safe in these camps as in the city of Winnipeg or Toronto or Montreal. A wonderful body of disciplined and controlled men, whose ambition is to avoid a fight, but when once they enter, to win. They have never been known to lose the lost trail of a criminal ; they have never been known to fail to land him and bring him to justice. It is said during the gold rush in our part of Alaska there were 13 murders 13 murders in our Yukon territory. Of these 13 I believe 10 were brought to justice immediately, brought to trial, convicted and hanged. One man committed suicide, two escaped, one was followed for six months and found in eastern Canada, brought to justice and executed. One escaped to the United States of America for a year and a half, eluded the vigilance of the police, but with the co-operation of the American police, he, too, was finally rounded up, brought back to Canada, tried and executed ; so that every murderer, by the hands of justice, was brought to punishment. I had a very vivid account of the activities of the mounted police in the recent strike given me by a young man who seemed to take particular delight in describing it to me. His picture of two of these red-coated men riding down the streets of Winni- peg and sweeping that crowd before them was quite thrilling. The pity of it all was that this should have been necessary. The Strike Broken The strike was broken broken not so much by the military and police forces organized by them, but, first of all, by the organization of the citizens of Winnipeg for public service. By volunteer work they managed to carry on every public utility with fairly good success. The telephone girls had their places taken by the young ladies of Winnipeg. The work of the tele- graph operators was taken over by volunteers. The fire halls were managed by volunteers. The various duties around the City Hall were performed by volunteers. Every single public 370 PROCEEDINGS OF AMERICAN MINING CONGRESS utility, every Government work was carried on by volunteers organized in a most thorough-going way. But what really broke the strike was the sense that the public mind was outraged by the action of the strikers. Now, if any of you know Canada, you know this that it is one of the fundamental principles of our national faith, one of the bed-rock principles of our whole national life, that the law must run, that the law must be obeyed. No man has money enough to buy himself off, no man is influential enough to es- cape. The law does run from east to west, from north to south, and where the strikers made their fatal mistake was when they began to tamper with the running of the law in that city of Winnipeg. When the strike began many of the respectable and thoughtful citizens of Winnipeg were in sympathy with the strikers and were prepared to listen to their claims and to demand, as I have heard spoken here this evening, investiga- tion and absolute justice for them, and had it not been for the leadership of those who were imported from abroad I believe from your country, largely had it not been (I do not know whether they were American citizens or not) for your people coming across, I do not believe we would have had any trouble at all. Anarchists Attempted Control But, while this strike was not initiated by the "Reds" and was not carried on by the "Reds," it finally came to be exploited by the "Reds." They came in and took hold of the situation. It looked promising to them and it was carried on further than the original strikers intended. When it appeared to Winnipegers that this was an organized movement against law and order, from that moment the strike was doomed to failure. It would not have been difficult to raise 100,000 men who would have been ready to venture their lives to put down this attack upon government or attempt to overturn law and order. Public Opinion Decides We have had many strikes in Canada, many strikes in Win- nipeg (and with some of them I have been associated, not as a striker, but sometimes as a conciliator and in other connec- tions) , but we have never had a single strike succeed that has THE RED MENACE 371 not been backed up by public opinion. The reason has been that public opinion is, after all, the mightiest force in every civilized and intelligent nation. And my hope that the indus- trial situation in America will be saved and its problems solved in Canada, as in this country, lies in the fact that the great body of the American people and the great body of the Dominion people are intelligent and are determined to preserve govern- ment. I have no sympathy with the club as the solution of industrial difficulties. That is the kind of thing we went over to fight in Europe. I have no sympathy with that method of settling disputes. There is only one way of settling a dispute, and that is by understanding, by sympathy, by justice. The gentleman who preceded me is right; the first great necessity is to know the facts, which means investigation, then to sympa- thetically and justly deal with them. I expect the privilege of speaking to you tomorrow; other- wise I would take a little time in speaking upon this aspect of the question, because one of the things that have developed in connection with British industrial disputes has been the in- sistent demand that no action shall be taken by either side until investigation shall bring complete knowledge of the facts be- fore the minds of those interested. Right Shall Prevail Now, Mr. Chairman, I think I have told you all that I have to tell you about the Winnipeg strike. I have a lot more I would like to say to you upon the subject of industrial unrest. I shall probably have the chance tomorrow. But just now allow me to mention these two principles. First, I think it is essen- tial that all of us should make up our minds that the initial step toward industrial peace or any other kind of peace is the principle that right shall be done under all circumstances; that right shall be done at all costs. Understand, on this prin- ciple we challenged the Hun. The Hun deliberately said : "It is not necessary always that right shall be done; if you can demonstrate that it pays to do wrong, not only may you do it, but you ought to do it." And, therefore, because it looked to the advantage of Germany to walk across Belgium's face, Ger- many said : "Not only may we do this, but we must do it, and we ought to do it." And may I say here I am proud to belong 372 PROCEEDINGS OF AMERICAN MINING CONGRESS to an empire that was willing to risk its whole future and destiny to maintain the opposite cause? [Applause.] And I am proud to speak to a body of men and women here tonight that represents a nation that went to war, not because they were insulted, not because they had lost their men and women upon the high seas, not because they had been injured in the face of men and God, not for revenge, but because of their devotion to this eternal principle that the right thing must go and nothing else must go; it was that for which America went to war. [Applause.] One of the things we bring back with us from the battle- fields of Flanders, one of the things we re-establish in this country and in mine, is just that simple principle that every- where among the nations and in the nations and with the indi- viduals the thing that is seen to be right must inevitably be done. That does not mean we all have the same standard of right, not at all. The miner's standard tonight is a different thing from the mine owner's standard ; his may not be the right standard, but there is a right standard and the point is this, gentlemen : That the men who are determined that the right shall run are taking the first step to discover what the right thing is. The man who does not wash his mind and his soul free of the determination to put something over that is for his gain cannot hope to see the right ; he never sees it. Seventeen Royal Commissions The first step toward intelligence is that conscience shall rule. When I was in England at one time there were 17 royal commissions who were trying to discover the path of peace for various organizations and industries. You do not mean to tell me that those men and they were the first men in the whole of Britain on both sides you do not mean to suggest that those men were bankrupt of brains. Any of you who know anything about the British statesmen and British labor leaders know they have brains; they are men of high intelligence. One of the curses that has fallen upon us in Canada today is that our labor movement is in the hands of uneducated and light-weight men. Not so in England brainy men, big men, men of wide experience, men who have climbed up and have a right to be at the top, are leading the forces of labor. THE RED MENACE 373 I say you do not mean to say to me that the reason that all these commissions are necessary is that England is bankrupt of brains. She is not. Why is it? Because in the minds of these men there have not been cleared away the mists that arise from prejudice, from wrong tradition, from selfish aims. The moment that they come to say to each other, before Almighty God and their own conscience, "Whatever we see to be the right thing we will do at all costs, no matter what it is or whom it hurts/' that moment the light will begin to shine on the right path by which they go to peace. [Applause.] I would like very much to stay for this whole Congress, not to take part in the debates, but to hear what you are going to say. I am going to give you a little bit of advice. Do you mind if I give you that? The American Brotherhood You know, after all, we feel in Canada we did not a while ago, but we do now that the American people are not what we called them before the war, "our cousins" ; we have gotten much closer to you; we feel you are our "big brothers." [Applause.] We learned to feel that about you when we saw you in France that is, when we saw you, recognized you and learned to respect and reverence and love you. That is where we are tonight, and, therefore, a man has a right to speak to his big brother if he does it respectfully. [Laughter.] I want to say to you that what comes from this Congress is going to have a tremendous influence upon the thinking of the American public for the next number of months, and perhaps for years. I have in my heart a very deep concern, because your country affects mine ; I am selfish about it ; I have in my heart a deep concern that the wisdom of this Conference and the big-heartedness of this Conference and the sense of right and justice in this Conference, and, above all, gentlemen, the consideration for humanity in this Conference, will so guide your thinking and your acting and your resolutions that this Conference will be referred to during the next years that are to come as "The Conference that showed us, first of all, the way that led to industrial peace and to industrial right being done." [Applause.] 374 PROCEEDINGS OF AMERICAN MINING CONGRESS READJUSTING AMERICA After Dinner Address of GOV. FREDERICK D. GARDNER, of Missouri Mr. Toastmaster, Mr. President and Delegates to The Ameri- can Mining Congress : I had the pleasure of a little conversa- tion with your distinguished Secretary upon my arrival, and he remarked to me about the many different boosts that he had heard for St. Louis and Missouri. He said: "All of you seem to be blowing here about your country and your com- munity," and he reminded me of the story I have heard about the distinguished guest who was invited to visit a certain community. There were assembled all of the leading lights of this town, and each of them spoke of the wonderful possi- bilities of both town and community. All agreed that there was only one thing that prevented theirs from being the greatest city and the greatest community in all the nation, and that was the fact that they were located 800 miles from tidewater. Finally, the distinguished guest of the evening arose and said: "Gentlemen, I have heard all that you have said this evening, and I have heard that there is only one thing that you want here in order that you may become the greatest city in the Union. I will tell you how you can have it." And they all listened for the magic word, and he said: "Now, I will tell you what to do. Construct a pipe line from the Atlantic Ocean to this town, and if the men around this table can suck as hard as they can blow, you will have the Atlantic Ocean in here." [Laughter and applause.] But, my friends, it is, indeed, a great pleasure for me, speak- ing as Chief Executive of the Commonwealth, to extend to this distinguished assembly a most hearty welcome to St. Louis and to Missouri. You will return home, I dare say, greatly benefited by your interchange of ideas and by personal examination of the technique of the latest developments in the great mining indus- try an industry so necessary and so vital to the welfare of the nation. READJUSTING AMERICA 375 It is particularly fortunate that this great metropolis should have been chosen this year for your meeting place. No doubt, many of you have come from sections of the country where the industrial situation has grown acute and, to a certain extent, alarming. You will be enabled, from this vantage point, to view these industrial questions, perhaps from a dif- ferent angle and a different standpoint, for it is a remarkable fact that in St. Louis and in Missouri, during the last three years, capital and labor have been at peace ; and on this day of our Lord, so far as I am aware, there is not a single strike of any moment within the entire borders of the Commonwealth. Here, then, you have an object-lesson of safe, sane, con- servative leadership on the part of capital and on the part of labor. One has but to observe in this great city the tremen- dous on-rush of industry on every hand. Acres of great build- ings arising as if by magic. Manufacturers overwhelmed with orders. Work for every pair of willing hands. Banks over- flowing with deposits. Newspapers flooded with advertising. Indeed, it is a picture upon which you may profitably reflect. Great in Peace or War Frequently I have been asked how it was possible for Mis- souri, with her enormous foreign population, to achieve her magnificent record as the great war State and also the great peace State. My answer has been that we have no foreigners in Missouri. [Applause.] For a hundred years this State has been opening wide her arms to the oppressed people of the world. Here they have found that which they have sought liberty, freedom and prosperity. Truly, this has been a melt- ing-pot, superheated by the wonderful Missouri spirit, out of which has come genuine, loyal'American citizens. [Applause.] We have not asked that these strangers forget their father- land nor the songs of their mother tongue. We have not asked that they forget the flag of their forefathers. But we have demanded that their first allegiance must be to the Stars and Stripes [applause] ; and, should there be an issue between our country and any other in all the world, they must defend our Government with their blood. [Applause.] We must have no little Jerusalems, no little Bohemias, no little Italys in Missouri. We are all one big, happy family. We speak one language, and 376 PROCEEDINGS OF AMERICAN MINING CONGRESS that is the language we can all understand our national language. We are not seriously threatened with radicalism or any other sort of "ism." Aside from the organized activities of the national Government, to protect the fundamental prin- ciples upon which the nation was founded, we have the safe- guard of the States. Men of the type of Governor Coolidge and the Governors of the other 47 States may be counted upon at all times to preserve law and order. And then we should not forget the 3,000,000 American sol- diers who have returned to their beloved country imbued with a deeper love for American institutions and the American flag than ever before in their lives. They have once offered their youth and their blood in defense of the traditions and senti- ments of the nation, and they will do so again if need be. The Soldier Element The American soldier has observed events in Europe at close range and he well understands the difference between democ- racy and license; liberty and anarchy; freedom and the spirit that would tear down our laws, and the idle who would live from the savings of the thrifty. He understands the differ- ence between a political system and a social disease. He under- stands the various "isms." There is only one sort of an "ism" that is going to satisfy these soldiers and that is the unadul- terated, old style Americanism. We should be thankful at this season that the nation has been blessed with good health. Twelve months ago the ravages of disease were more destructive to life than war. Today we enjoy good health from one end of the land to the other. As a nation, never have we had so much to be thankful for as we will have next Thursday, the 27th, when we offer our prayers to Almighty God on that Thanksgiving Day. Not only have we won the great World War, but we have been true to our principles and have refused to listen to the siren song, "To the victor belongs the spoils." [Applause.] We did not enter the war for conquest nor for gold, and we have remained steadfast to our purpose, demanding, in season and out of season, that all war must end and that we must have a just, lasting and righteous peace. READJUSTING AMERICA 377 Farmer Will Demand Justice We should be thankful that a kind Providence has caused our fields to yield an abundant harvest. Food is plentiful and the farmer is selling his product at very reasonable prices. And this brings me to warn those of you who are employers, as well as employes, that if the farmer sells his wheat at $2, his corn at $1.30, his hogs at 15 cents, his cattle at 12 cents, in return he will expect merchandise sold on a corresponding basis. This places squarely before the employer and the employe the question of the importance of producing more of the necessities of life in order that prices may become more reasonable. Public Rights Recognized I do not expect on this occasion to enter into a detailed dis- cussion of the problems of capital and labor. No doubt you have heard or will hear them discussed from various stand- points. The Governor of a State is supposed to represent all the people, and particularly the public; and, speaking for the public, the public demands of capital and labor that they find some method of settling their disputes ; and if they do not do this in the near future, then the public, through its organized channels, the courts, the legislatures and the Congress, will take the matter in hand and settle it for both employer and employe. Our problems of reconstruction and readjustment are neces- sarily complex and complicated. And yet when we look back upon those which confronted our forefathers at the close of the Revolutionary War, we must see that they are comparatively easy of solution. Let us recall that the 13 Colonies were torn with dissensions and jealousies. They had no constitution, no stabilized currency, no foreign trade. Washington was assailed by enemies on every hand. Yet out of the chaos emerged a new republic, founded upon principles that will survive forever. At Close of Civil War Let us picture the conditions existing at the close of the Civil War. The South devastated, its manhood slain or wounded, the entire vast section completely bankrupt; the border States torn by feuds and family strife. The North with 378 PROCEEDINGS OF AMERICAN MINING CONGRESS hundreds of thousands of dead and maimed, President Lincoln assassinated, President Johnson impeached, the cost of living mounting up by leaps and bounds, commerce destroyed, no standard of currency paper, silver and gold each upon a dif- ferent basis. And yet within a few years the nation righted herself, the difficulties vanished, and prosperity reigned. So shall we of this generation shrink from our problems in face of the heroic deeds of our forefathers. Strife Must Cease What the public demands at this time is that in all of their enterprises, particularly those of such magnitude that any interruption in their operation injuriously affects large groups of people personally interested therein, employers and employes shall cease coercive methods in dealing with each other and form a "league of peace," in a spirit of mutual helpfulness and co-operation. If in a few instances the drift appears for the present to be away from such a spirit and policy, I feel sure it is but temporary and that shortly wiser counsel and a more cordial spirit will prevail in both camps. I thank you. [Applause.] AMERICANISM 379 AMERICANISM Address by REPRESENTATIVE JAMES G. STRONG, of Kansas, at the Annual Dinner of The American Mining Congress, St. Louis, Mo. Mr. Toastmaster, Gentlemen of The American Mining Con- gress: It is a great honor to me to be present with you this evening, and to sit beside your distinguished Governor and to look into the faces of a body of men who are gathered together for the high purpose that you have avowed you are here for. I was to speak to you tomorrow on the subject of "Alaska," but as it is impossible for me to remain here, I was placed on the program here tonight. I regret that, being from Kansas and a member of the American Congress, I "cannot tell a story," but I will try to tell you tonight a little of the feeling I have regarding the present situation in America. I am one of those men who believe in the patriotism, and the good sense, and the honesty of the American citizen, and I do not think that we need to fear the future of this great country of ours. We are today facing a serious situation. Selfishness seems to be the spirit that is moving large bodies of men; men are associating together for the purpose of advancing selfish interests, and in advancement of those interests they are losing sight of the great Government that has protected them for all these years. It is a great Government ; it has been the dream of the cen- turies ; it was a Government built by men who did not think of themselves; it was saved for us in '61 by men who did not think of themselves alone. Our own boys went out to fight against a spirit that sought to conquer the world, and they did not think of themselves. The true Americans will now settle these questions without thought of themselves. Loyalty Abounds Let me say to you that, in spite of the chaos that seems to now confront us, there are a great majority of Americans who love this nation, love this people's government, and will put 380 PROCEEDINGS OF AMERICAN MINING CONGRESS down all strife. You need not fear but that the questions now seeming to perplex us will be settled in the interests of the great majority of the people of the United States. To look into the faces of a body of men like this is an inspiration to a man charged with a small part of the respon- sibility of the American Congress. While I am but a freshman in that body, I have been struck with the sincerity of purpose of the men whom I have met there in the past six months; men who said to me : "My vote on this question may mean my retirement from Congress, but I will cast it gladly." A man who voted on a bill this week said to me: "I have had 833 telegrams not to vote for this bill." I said: "Have you had any telegrams to vote for it?" And he answered: "Not one. I had one friend write me a letter who said, 'Do what you think is right.' ' And that man voted for the bill. Congress Is Sincere I want to say to you men that in Congress today there is a sincerity of purpose to back up the Government of the United States in saying to all the people : "You will be protected from any spirit of selfishness, from any spirit of purpose which seems to destroy this Government." And you will find that when President Wilson makes a stand in the interests of all the people, as he has just made, that Congress Democrats and Republicans alike will be behind him. [Applause.] Victory for Nation It is with great pride that the people may look upon the vote against Victor Berger. Victor Berger, during the time when this nation was enduring its most severe trials, tried his best to delay and hamper, and even though he believed he was right, nevertheless he tried to do everything that would pre- vent this nation and this nation's government from doing what it had set its purpose to do. In doing those things he was lending aid and comfort to this nation's enemies and was so disloyal that the membership of the American Congress, by a vote with only one to the contrary, said to him: "You shall not pass." I was delighted when I read the first sentence of the opening AMERICANISM 381 statement of this Convention, "Recovery of industrial balance through resumption of maximum production." It is the great outstanding need of the nation. Gentlemen, what this nation does need is the increased production of the great supplies of the world. With Germany saying that her workmen will work 12 hours a day, America must ask her workmen to produce from her mines, and from her fields, and from the great, bounteous plenty that God has given us, those things which the men and women of this country and the world need at this time. I believe that the great spirit of the American workmen will finally yield to this demand. I want to say to you that I have faith in the American workingman; I sometimes doubt the leadership and I always doubt the element that tries to say to him that he shall distrust his government; but I cannot believe that any American workingman, or any American millionaire, or any American industrial leader, will ever go so far as to do that thing which will tear down this Government. I have faith in the American people. I have faith in bodies of men like this. I know what your purpose is I know that above your business, that above everything else you hold dear in the world, you will take that stand for Americanism of which your splendid Governor has just spoken so well. [Applause.] Let me assure you I feel that this pride in the citizenship of this country that I have is not misplaced. The Farmers' Attitude I want to read to you some resolutions passed by a farmers' union in my county. This body of men lived 12 miles from a railroad station, and without any prompting they wrote in their own little schoolhouse this set of short resolutions and sent them to me last week, and it was my pleasure to ask unanimous consent of the Congress to place these resolutions in,qur records. They read as follows: "Resolved, That we resent the implication that the farmers of this country can be yoked up with greed and lawlessness, whether capitalistic, laboristic or Bolshevistic, and we call upon all in authority to quell lawlessness wherever it may occur with firmness and dispatch, and demand of those in posi- tions of leadership, in farmers' organizations and the organ- 382 PROCEEDINGS OF AMERICAN MINING CONGRESS izations themselves, shall take such action as will place the farmer in an attitude of true, uncompromising Americanism." [Applause.] When we had under consideration the railroad bill last week, providing for a settlement between the employer and the employe, we were beset with all kinds of suggestions as to what the labor clause in that law should be. The laboring men who operate the railroads came to us and said: "In 25 years we have not had a strike. During the war we settled 1,300 cases of disagreements between the Railroad Administration and the employes, and we settled them by boards appointed by the Government and by the men. Give us a chance to confer and we will settle with the men we work for." That spirit of firm- ness so influenced a majority of the House that it said: "We will take you railroad men at your word. We will give you that kind of a clause in this bill." And that kind of a clause went into the bill and it passed the House. Congress Trusts Railroad Men Gentlemen, I want to say to you that sitting in that House on that day were a large majority of the membership who would have voted for a radical anti-strike law if they thought it would have been necessary, but they decided to trust the American railroad man ; they decided to take him at his word, and they passed that kind of a settlement clause. What it will be when it comes back from the Senate will depend upon the labor situation at that time. You understand, gentlemen, that in writing this bill we were dealing only with the railroad men of the country, and not any other class of labor. It was thought best to take this stand, but I want to say that it is my opinion that the Con- gress of the United States has made up its mind that when it comes to the test the great mass of the people shall be pro- tected at every cost. That has been the statement of the President of the United States and the Congress voted unani- mously to stand by him on that proposition. You need not be afraid that, when it comes to the acid test in this country, the spirit of Americanism, the spirit of that principle that means "Do unto others as you would have others do unto you," will prevail in this country from one end to the other. AMERICANISM 383 I will be very glad to take back with me this splendid picture of this fine body of men, because it means that you men, going out to your homes, will carry that spirit of Americanism to which I have just listened, which means that the great public interest must be protected, and that neither employer nor employe must do that thing which will tear down the great structure of citizenship that we have builded. Government Will Stand My good friends, we may see trying times, but I want to say that this Government will stand. It has been builded unselfishly, but when the time of trial comes, when the hour comes when we men forget self, then you will find that right will prevail. [Applause.] Your Secretary tells me that you expect to ask Congress to pass a law to prohibit the use of gold coin for commercial pur- poses. As a member of the Banking Committee, it will be a pleasure to me to describe this meeting to that Committee and to urge them to seriously consider this bill, and I think you may depend upon its favorable recommendation to Congress. I want to say to you that the members of the American Congress appreciate men writing them their views. Very often I get a letter saying, "I would like to apologize for taking your time." Why, my good friends, when you are two or three thousand miles away from the people you are trying to repre- sent, if there is anything on earth you most want to know it is what the fellows at home are thinking about. Don't fear, as is often said, that the members of Congress are not trying to represent their constituents that is the very thing they sit up nights trying to do ; they realize that their success depends upon whether or not they meet the view of the majority of the people from their district. Do not let the radical element prevail upon the members of Congress to believe that the sentiment is one thing when you men know it to be another. You men have a great, weighty argument; it is for you we legislate; so sit down and write your Congressman and your Senator and tell him how the fellows at home are thinking on this or that question. I hope you will do it. 384 PROCEEDINGS OF AMERICAN MINING CONGRESS As a new member of the American Congress, I have come to believe in the sincerity of the men I have met there. I have met splendid men in Congress, men with a loyal purpose, and I have come to honor them, both Democrats and Repub- licans, and I only ask you to have faith in your Government; take your part in the great struggle that is going on, and let us go forward to Americanism that means so much to the world. We do not need to fear the foreigner when he comes over here ; we will soon vaccinate him with true Americanism, and, my friends, "if it does not take," we are going to send him home. [Applause.] That is going to be the policy of this Government very soon. I thank you. [Applause.] THE REAL RUSSIA 385 THE REAL RUSSIA Address by HON. FEDOR F. FOSS, Member Russian Mining Commission, at the Annual Dinner of The American Mining Congress, St. Louis, Mo. Mr. Toastmaster and Gentlemen: It takes a brave man to follow these brilliant speeches by standing up here and reading from papers on which have been written the words that he desires to say. Impromptu remarks may be made at one's club, but in such an audience one must give more consideration to his utterances, or in the cold gray light of day they might resemble those of an honest farmer, who, in selling a blind horse, said : "He is all right, except that he doesn't look good." [Laughter.] So I hope you will permit me to read my re- marks. What you already know about Russia shows you that the Russian question is, for the time being, not a political one, but a question of world-wide significance. This question is a question of Bolshevism versus Civilization, and unless it is solved in a right way, it is bound to be, in the future, a cause of great trouble to the whole world. Resources of Russia I was requested to tell you something about the natural re- sources of Russia and the opportunities there for the mining industry. But I feel it my duty on every occasion to emphasize that before any issue can be taken upon the industrial life of Russia, as well as upon the life of any other country, the fundamental question must be decided, i. e., How will man- kind go on, either toward Bolshevism or toward real democ- racy? I do not need to tell you what Bolshevism means, as well as I do not need to explain to you that under the real democracy I understand Americanism. We foreigners, having the privilege and pleasure to be here and study your life and daily work, believe that the United States of America gives the best example how a nation of 386 PROCEEDINGS OF AMERICAN MINING CONGRESS 100,000,000 can give to the majority of her sons a chance to live happy and in well-being. The only condition to belong to this majority is to work to produce. [Applause.] We firmly believe that your country will in a short time pass through the difficulties of the post-war period, the period in which the very fundamental principles of ethics and morals are wavering. You shall easily fight through this period, because of your internal strength, because the union of the 48 States is stronger than any other union on the globe. The United States of America Will show to the civilized world how to settle the very acute industrial disputes in a proper way, having always in mind that "Salus republicae est supremo, lex" (The welfare of the republic is the supreme law) . The Socialists' Utopia The country where such principles govern can be compared "with a mechanism of highest efficiency obtainable at the pres- ent level of education and morals. It reminds me of one talk I had with a Socialist during the strike, when they started to spoil machinery and furnaces in the works where I was man- aging director. I asked him : "Why are the strikers destroying the wealth of the nation ; would not they prefer to use these assets in the future, if they believe they are right and are going to win?" He replied that revolutionary socialism does not care for the wealth created by capitalists; that after having established a new form of society they will build up everything anew and create such an ideal state that everybody shall be happy, wealthy, working only two hours a day ; it will be a government of 100 per cent, efficiency. I asked him where he had seen such a state, and he replied that such a state is not in existence yet, but that Socialists are sure they are able to create such a one, Now I ask have you seen in nature such a machine which works with 100 per cent, efficiency, with no friction, no radiation, no other losses. And, as there is no such thing in the world, shall you refuse to use a machine with less perfection than 100 per cent, efficiency, but which can meet most of your requirements? This machine with most up-to-date mechanism, having a good, reliable self-government, with a good, solid flywheel in its constitution, can be adjusted and regulated to the speed THE REAL RUSSIA 387 needed. This machine has all that is needed for an efficient and smooth run. Suggests an Experiment I hope you will not mind if I take the liberty to make a sug- gestion : Why not take a thousand of advocates of Bolshevism in the United States and parlor Bolshevikis and send them at Government expense to stay for some time in the paradise of socialism, near by the apostles of Bolshevism? I am quite sure all of them will return pretty soon, and at their own expense, with good knowledge as to where is the real paradise and where is the hell. After such an experiment you shall have 1,000 more good citizens. [Applause.] For me it is quite clear that when the post-war fever passes the world will follow the steps of real democracy. Bol- shevism tried to make something new and created an ugly mechanism without governors and with a large flywheel. They started to run this machine fast and the machine burst ; the broken pieces ruined the foundation and the roof of the whole building. The workmen were buried under the frag- ments. Everything stopped only the designers of such ma- chines temporarily survive, to see that their machine has 10G per cent., but in inefficiency. Russia Is Starving The disaster is on hand. Russia, the wealthiest agricultural country, is literally starving. But such a standstill of a coun- try with 180,000,000 souls cannot last a long time. The coun- try with such a history as Russia, with a race who built up one of the largest empires in the world, cannot perish, and Russia shall not perish. We hope that the time is not far away when the constructive forces of Russia will rally, take the upper hand and Russia will start to run maybe not very smoothly from the begin- ning toward the real democracy. Russia Needs Help Here again, the United States of America should come ta the front and, as an elder sister, assist the new-born democracy 388 PROCEEDINGS OF AMERICAN MINING CONGRESS and give to Russia all moral support and the benefit of experi- ence of its political and industrial institutions. When this stage of affairs will be accomplished, what will be the attitude of the United States toward Russian industry ? What are the reasons by which Americans, never having paid any special attention to the industries of Russia, as well as to the industries of any other country of the Eastern Hem- isphere, will show particular interest in Russia, the country which has the largest area on the globe, with natural resources nearly identical to the same of the United States of America? The reasons are in my mind the strategy of minerals and the strategy of investment. These words sound a little warlike, but war has taught you many things, and among them showed you the importance of minerals and the role they play in war as well as in peace. Strategy of minerals during the war consists in the idea that you must have all minerals necessary for war purposes in your own country. If you do not produce some of them, you have to provide the necessary amount from outside, and have such a foresighted policy in international relations which will assure you getting easily and in time all you need. Germany, before the war, showed a good example of un- derstanding of the strategy of minerals. If you take now a glance on statistics of your mining industry, you shall see that, notwithstanding the fact that the United States is one of the few countries practically self-sufficient in mineral re- sources, it needs some minerals, the domestic supply of which is not adequate. By God's blessings, Russia is the second in self-sufficiency of mineral resources. Wonderful Mineral Supplies In the number of minerals where your output is small, Rus- sia shows pretty high figures of production. Our output of platinum averages 95 per cent, of the world's production ; our output of manganese ore reached 55 per cent, of the world's supply ; we have large deposits of chrome ores, of magnesite, of tin and asbestos. The deposits of platinum are proven to have not less than 100 tons; the deposits of highest grade manganese ore are inexhaustible. Russia with her depleted by war and Bolshevism intel- THE REAL RUSSIA 389 lectual and financial forces shall be unable for many years hence to develop these resources by her own means. And here comes the strategical question who shall develop these re- sources which you may need? Either they will be developed by the powers which some time may be in an opposing group to you, or you shall spend a little effort to get in friendly business control of these minerals. That is not up to me to decide. Strategical Opportunity The strategy of investment is another idea of no less impor- tance. In peace time it may have even more importance. It is self-evident that the United States of America is bound to go into the foreign markets for developing the foreign trade. It is a matter of fact, and does not need to be proved, that the foreign trade and foreign investment have a close connection. You cannot export to the foreign countries without allowing them to repay you in some form or other. Either they have to import into your country raw or finished products, or give you an opportunity to invest your money in their country. By this means only can the purchasing power of foreign money be kept on the level. Now, here is again a strategical question: Where shall you go with your money to invest? To the countries which will take your money, reconstruct and develop their industrial facilities, and compete with you in the foreign markets, or shall you find it more wise to go to such countries which will give you the opportunity to bring in your capital and knowl- edge and develop their industries for their own use? Everything produced by the re-established or newly estab- lished industries of such countries will be consumed in its in- ternal markets. There won't be competition from Russia in finished products in the international markets for many decades to come. On the contrary, Russia will consume not only capital for investment, but will consume all kinds of goods which only could be imported and paid for. It is important to emphasize here the well-known fact that the investor in the foreign country can easily control pro- duction, and has also the means to control the import. To illustrate what field of opportunities new Russia will offer, I shall abuse your patience with some statistics. 390 PROCEEDINGS OF AMERICAN MINING CONGRESS Vastness of Russia Russia has an area over eight and one-half million square miles ; the United States of America has a little over three mil- lions- The population of Russia is about 180,000,000 of clever, industrious and good-hearted people ; 80 per cent, of whom, it is sad to say, are illiterate. When the land question is finally settled, they will strive to better their economic condition and will welcome all improvements which can be brought into their life. The length of railroads in Russia in 1911 was about forty- eight thousand miles, as compared with two hundred and forty- seven thousand miles in the United States. Passengers car- ried, two hundred and thirteen millions, as compared with ninety-nine hundred millions in the United States. Pounds of merchandise carried, six thousand two hundred billions, as compared with one hundred and twelve thousand billions in the United States. The number of postoffices was 9,235, against 60,000 in the United States. The number of telegraphs, 10,190, against 25,000 in the United States. The number of telephones, 214,782, as against 7,596,000 in the United States. The length of telegraph lines, 400,000 miles, against 1,300,000 miles in the United States. The length of telephone lines, 330,000 miles, against 16,000,000 miles in the United States. In the public utilities line, it is interesting to note that out of 1,031 towns only 219 had an organized water supply. Of these only 167 provided water to private homes. Only 40 towns have sewerage systems. Out of 1,031 towns, 1,068 have public lighting, of which 162 have electricity, 128 gas, and the rest have kerosene. Fifty-four towns have tramways; 32 towns have telegraph service, and 314 towns have telephone service. The production of metals per capita in 1917 was : Coal, 440 pounds, as compared with 10,340 pounds in the United States; pig iron, 45 pounds, as compared with 1,100 pounds; copper, .5 pounds, as compared with 1.60 pounds; petroleum oil, 10 gallons, as compared with 1,500 gallons. Lead, zinc, silver and tungsten are merely started in production. THE REAL RUSSIA 391 Fortunes Await Investors Out of these illustrations you can see what has to be done for development of industries, railroads, public utilities and mining resources of Russia. Here are vast deposits of coal and iron; here are large placers of gold, producing one concern up to 15 tons a year ; here are placers of platinum where the production is recorded by tons and not by ounces. Here are vast deposits of high-grade manganese ore, of magnesite, cop- per, lead, silver and zinc, oil and oil shale. Here are the largest forests, and, last but not least, the largest deposits of very good coal and oil on the Pacific Ocean are located on the Rus- sian part of Sachaline Island. The sense of the strategy will show you what you have to do toward these resources. Having traveled through the whole area of the United States of America during more than two years, as chairman of the Mining Commission of the Russian Extraordinary Mission to the United States, and having observed closely American activities and the character of the people, I am confirmed in the idea with which I came here. I thought that the personal character, the general conditions of life, the love for adven- ture and for developing new places, the habit of doing busi- ness on a large scale and in vast territories, all this makes Americans best adapted to go into Russia. Russia Pro- American Russian public opinion, the sympathies of the Russian people were always pro-American. The greater part of the Russian population realizes that the United States is not concerned with politics in Russia ; they seek nothing for themselves as a nation, and aim only to develop something and not to sit idle. Since the earliest days of existence of this Union, under the Stars and Stripes, Russia always enjoyed the friendship of the United States ; and one time, in 1863, when it fought for its existence, the United States had but one friend, and this friend was Russia. [Applause.] Now, when Russia is in bad straits, as your country was in the Civil War, all we who love Russia entertain the hope that Uncle Sam wiU lend his mighty hand and help her, remember- ing what Russia has done for humanity in the last struggle for freedom of the world. [Applause.] 392 PROCEEDINGS OF AMERICAN MINING CONGRESS INDUSTRIAL CONDITIONS IN ENGLAND Discussion by DR. CHARLES W. GORDON, of Winnipeg, Manitoba, at the Informal Dinner to Delegates, Wednesday Evening, November 19 Mr. Toastmaster, Members and Gentlemen : I feel like telling a story I once heard from the late distinguished scientist, Henry Drummond, who was a very dear friend of mine. He was covering the West Coast of America and was interested in the trees. He asked the driver about the size of these trees the driver was a very glum person and did not seem to care to give much information, but Drummond still persisted. They came to one tree that had fallen down; it looked very huge upon the ground, and he said to him : "Now, tell me, how tall do you think that tree is?" "I don't know," the driver said. "Well, how much lumber would that saw into?" "I don't know." "How much wood would it make, do you think ?" "Well, stranger," the driver said, "I don't know, but I will tell you that when that tree fell the echo of it lasted for two weeks." [Laughter.] So I feel the same about this mining convention. I have been tremendously impressed with the potentialities in this Congress, and the more I see of it and the more I study your program the more impressed I am. I am down to say something about the industrial situation in Britain, but I am not going to take very much time in talking about that. I fancy you know something of the history of that situation during the war. British Labor Party I am going to say one, or two, or three things about the things before the war. One thing different between the situa- tion in that country and Canada is that the labor people in Britain are organized into a well-defined political party and run candidates for Parliament, and have, at this time, quite a large number of labor representatives in the House of Com- mons. This, in some ways, is a disadvantage, but I think the general feeling in England is that it is, on the whole, a great advantage. It is of advantage to the Government, for they INDUSTRIAL CONDITIONS IN ENGLAND 393 always know where to find labor, they always have on the floor of the House those who are prepared to speak authoritatively in regard to labor's demands, and they know exactly what to do. I remember being in the House one day during the war, when I was on leave from the front. The Government was having some difficulty with the railroad men and was proposing legislation that seemed to some of the labor members likely to precipitate a strike, and that, of course, during the war would have been a very disastrous thing. I heard Mr. J. H. Thomas on the floor of that House make such a presentation of his case for labor and such an appeal to the members of the House of Commons for patient considera- tion that actually he persuaded the Government to withdraw that bill. I mention that for two reasons: First, to show you that when labor is organized as a political party the Government of the day can handle it, I believe, with greater success ; and, second, incidentally to ask you to notice the superior quality of leadership in the English and Scotch Labor party. Another characteristic that is rather important is this: That among the labor people of Great Britain you have the socialistic wing, not the rabid and wild, red socialistic wing that you are perhaps more familiar with here, but a sound and sane and scientific body of men who study social and economic questions in the light of the latest results of scientific inves- tigation, and, therefore, you have a socialism which, while it may be advanced to a certain extent, is constructive rather than destructive. British Labor Respects Law May I ask you to think of a third thing that is characteristic of the situation in British labor: The laboring people, with all the other classes in Britain, have a profound reverence for law and order, and are very impatient with anything that savors of a promotion of revolution. The only lawless people that I know or can think of in Great Britain before the war were the suffragists, and they were a rather difficult proposi- tion for the people to deal with. They were taken as a joke at first, but their activities were so industriously pursued and so effectively carried on that the thing very soon passed from 394 PROCEEDINGS OF AMERICAN MINING CONGRESS being a joke to a very serious question. It is, however, an eternal credit to the leaders of the suffragette movement that once the war drum beat not a suffragette was heard in the land. [Applause.] Now, during the war, if I were to say one thing that would generally describe the attitude of labor to the country and the country's cause, I would say that on the whole labor played the game labor played the game! They had strikes, a few strikes. For instance, they had a strike in the coal mines of Wales, that was caused, I believe, largely by mis- understanding and a misunderstanding which very naturally arose. There was a feeling among the miners that the coal owners were making huge fortunes at their expense, and I am bound to say that it was pretty largely true, because the Government had not adopted a new system under which the coal business could be carried on in a manner proper to war, but carried on with the old system suitable to peace. Lloyd George went down to Wales and met his fellow- countrymen there. The Government took over part of the mines, and those other miners whose mines were not taken over accepted the Government's terms, and throughout the war there was no more trouble in the coal mines in Wales. War-Time Troubles There were other strikes that threatened throughout the war, almost always due to the same causes a suspicion of profiteering, and an impatience that any class of people should be making huge profits while others were suffering. That was largely the determining element in causing strikes ; but, after all, throughout the whole four years and a half of the war labor played the game and stood by the country. May I add three characteristics that distinguished labor in Britain and that will explain the attitude of the workers during the war? In the first place, they were led by able men. I need only remind you of such names as these: Mr. J. H. Thomas, secretary of the Railway Union ; Mr. Clymes, Mr. Barnes, Mr. Adamson, Mr. Henderson, and even the radical Mr. Smiley is a very able man indeed. These people, many of them, have come up through the ranks, but they have studied economic industrial and social questions. They have studied these very INDUSTRIAL CONDITIONS IN ENGLAND 395 thoroughly indeed, and I fancy you could take any one of them and find him familiar with all the modern works in economics or sociology. Secondly, and very important it is. They were men who were really of patriotic spirit. They loved their country and were willing to sacrifice even their class prejudices and class ambitions and class interests to the general good of the coun- try. So they postponed many a fight until after the war was won. Thirdly, they were under pressure of a very strong public opinion. Now, when you think, gentlemen, that from every English home and every Scotch home, especially from the North of Scotland, from every home in those islands, men were out in the front line fighting or in the munition shops working long hours to keep the fighting men supplied with munitions; their women, too you can see that any body of men that would venture to take an attitude contrary to what was for the good of the country in this terrific crisis could not live very long. So under the compulsion, under the tre- mendous pressure of such a tense spirit of patriotism, labor had to play the game and did. I do not make that last remark with the idea of lessening at all the sense of gratitude that we owe, as a nation, to the labor people. The Whitley Commission But during the war there was an under-current of discon- tent and incipient strife making itself felt here and there throughout the country. Hence the Government appointed a Royal Commission to go into the whole business of labor unrest and of discontent in industrial relations. That was the famous Whitley Commission. Anyone who is studying modern economics cannot afford to neglect the study of the work done by the Whitley Commission in Great Britain and the report of that Commission. I am not going to go into that report with you. The Com- mission was composed of men representing all classes of labor and all classes of employers and, together with them, experts from various universities and other organizations. Men who had studied all these questions and had become recognized 396 PROCEEDINGS OF AMERICAN MINING CONGRESS authorities upon these questions were put on that Commission. That Commission went to work and made a most thorough investigation of every industry in Great Britain ; the report is voluminous and contains a vast mass of information. The feature which I would say differentiates that report from others is this, that it puts its finger upon one of the great causes of unrest ; a widening cleavage between the work- ingman and his employer in regard to the management of the business. The report recommended that there should be estab- lished in every industry a joint committee representative of the various classes of workers in any industry, and also of the owners and operators. Some industrial concerns had already given representation on the directorate to their workers. The report recommended that this custom should be made uni- versal. In very many cases this experiment has been made and with marked success. Through that committee complaints would come. With that committee the management would hold regular sessions, not when trouble arose, but regular sessions to discuss any matter that it might deem wise to discuss. Complaints would come up through the committee, and the answers of the general committee would represent the united and best judgment of the representatives of both management and men. Report Adopted by Industries The Whitley report has been adopted by a very large num- ber of the industries in Great Britain, and I have yet to hear of any single instance where it has not been of very great service in preventing friction and in preventing strikes. Now, gentlemen, when I speak to you about British condi- tions, do not for a moment imagine that I am saying that any plan that may work in Britain will necessarily work here, or that anything that I speak of as prevailing in Britain is better than anything you have here. Not that, but I simply give you a picture of some of the essential differences that hold between the industrial situation there and in this country, and of how the industrial conditions in Britain are being met. Revolution Threatened After the war had closed, there was at once a recurrence of the old condition of things which before the war threatened INDUSTRIAL CONDITIONS IN ENGLAND 397 revolution, for I need not remind you that before the war things were in a very serious condition in Great Britain, socially and economically. It was one of the things that de- ceived Germany into thinking that that was an opportune moment for getting into the war, for she imagined that Britain was so torn with factions at home that she could not get her people's united support for war. Her opinion in that, as well as in other things, notably her opinion of America, proved wholly unsound to her bitter disappointment and tragic loss. This after-war unrest seemed to spring up almost in a night and seemed to affect almost every industry in Britain. It was a bad time, and it is a bad time still, because Britain is very heavily in debt, staggering under her debt, and especially was it serious as affecting the coal-mining industry, which in Britain is the basic industry of the whole country. Not only does she depend upon coal to carry on her various manufac- turing industries without which she cannot live, but coal is also one of her chief exports, and upon her coal exports she relies to a considerable extent to maintain her exchange with other nations. After months of unrest a crisis was reached. A strike was threatened in the coal mines. The Government sought the labor leaders, called them into conference, and I want you to notice that just here is an advantage of having a Labor party in Parliament. The labor leaders gathered together in London. The Government called this conference and was able to avert this strike for a certain time, on the promise that it would establish a Royal Commission that would investigate and would bring in a report that they promised would settle the thing. That was the famous Sankey Commission, a Commis- sion composed of experts and of representatives on both sides, with Judge Sankey as the chairman. Everybody at the con- ference was a representative man, and let me say that no one acting on those committees was ever suspected of being any- thing but quite sincere in his desire to serve the country. Sankey Report Unsatisfactory The report came in and was unsatisfactory. The labor people would not receive it. One of the chief points of conten- tion was that of nationalization of mines. The Commission 398 PROCEEDINGS OF AMERICAN MINING CONGRESS reported that they had not had sufficient time to consider a question of such vast and far-reaching importance. But they made an interim report in regard to wages and conditions of labor and conditions of life and asked to be continued in exist- ence. I may say to you that these conditions of labor and con- ditions of life are always a very large and important element in any industrial dispute. Bad Housing Conditions The report of the Housing Commission for Great Britain, appointed some years before the war, is one of the saddest things you can read in connection with the British industrial situation, and one of the things that British people are thor- oughly and heartily ashamed of. I need not go into that now, but this always comes up whenever there is an industrial struggle the housing conditions, the conditions which accen- tuate every difference between employer and employee. The Sankey Commission made a strong recommendation on housing and other conditions, raised the wages of miners, etc., and promised, if the Commission was continued, to take up the question of nationalization of mines and report in about six weeks. With great difficulty the Government persuaded the miners to delay the threatened strike. A short respite was given, and the Commission sat once more and went system- atically to work. To that Commission they summoned every man who had a tlieory, whose opinion was worth considering every man who had a theory in regard to the operation and ownership of mines. He was invited to put down his system, plan or theory, to reduce it to a systematic plan and lay it before the Com- mission. The very best thought, experience, intelligence and learning which was available in Britain was at the disposal of the Commission. I do not remember just now how many recommendations were proposed, but finally three reports were made. No Secret Sessions of Commission Before I go farther on that I want to say this, that during the discussion, which was spread out upon every leading paper in Great Britain, everything brought before the Commission, INDUSTRIAL CONDITIONS IN ENGLAND question and answer, scheme and statement, was put down. I believe every man in the nation was keenly following those discussions and the presentation of various plans and schemes,, because they read their papers most religiously. They do not read simply the headlines in Britain. They don't run much to headlines, but they are getting into the way of having head- lines, which are all right for a busy people but not for a thought- ful people. [Laughter.] I should say rather, perhaps, people with time to think. Those discussions were followed with most acute interest. Now, I was conscious of this, gentlemen. I must say when the discussions began my mind was inclined toward nation- alization I am a kind of radical, anyway, though I am a Presbyterian [laughter] and I was rather hoping that the Commission would pronounce in favor of nationalization. I am bound to say, as I followed the discussion, as I met the men associated with the labor movement, with the Minister of Labor and the various secretaries, I found my mind verging around, first to the attitude that I was not certain at all whether nationalization would be wise, and by the time the committee was ready to present its report I was conscious of a hope that they would not take the plunge. The difficulty, it seemed to me, would be and I was dis- interested, of course, personally that it would be attended with so much that was doubtful and purely experimental, that the risk of immense loss would be so serious, I hoped that the report would go against nationalization. Divided on Nationalization Well, the Commission was half for and half against nation- alization, which was finally passed by the deciding vote of the chairman, Judge Sankey. Now, since that time, public opinion in Great Britain, which I believe was like mine at the first, has changed somewhat. I think the body of people not inter- ested in the coal mines were at first rather in favor of experi- menting with nationalization and cherished the hope that as nationalization had been so successful in such things as the postoffice and telegraph it might be tried with the mines. You see, with Great Britain the coal industry is the very heart and soul of all her industry, and the handling of that 400 PROCEEDINGS OF AMERICAN MINING CONGRESS industry is a big national concern. It is like no other industry ; it is like nothing you have in this country. It is a big national enterprise. The report was given in, and there was a very great disap- pointment on the part of the miners that the Government did not accept and at once put into operation a scheme for national- ization. But the Government seemed to sense the general opinion of the country, and refused to adopt the majority report which was presented by Judge Sankey. Up to this time the Government has stood firm on that point and still declines the experiment of nationalization of mines. What will happen I do not know, but it looks more and more to me as if the Government would stand or fall upon that point. It is dead certain that if this Government does not stand for nationalization, the succeeding Government will be less likely to adopt that scheme and plan of operating the mines. The Railway Strike I have taken some little time over this Sankey Commission. I will not go into the later developments which involve the railway strike, except to say this : The railway strike which occurred a few weeks ago took place while the Government was still in possession of the railroads, and after the Govern- ment had raised the wages of the railroad men to a point much higher than the rate before the war. But in spite of everything that they had done in the way of meeting the demands of the railroad men a strike was brought on. The strike was hopelessly defeated by two things: First, the Government, anticipating this strike some months before, had made such a wonderfully perfect arrangement to carry on the transportation work of the country that they were able to relieve the country of the most acute distress that was caused by the dislocation of transportation travel. Second, there was aroused throughout the whole country a feyeling of indignation that the railway men should precipitate a strike, in their own particular interests, upon the country when it was in its pres- ent terrible and difficult situation. And, gentlemen, this is an object-lesson for all those interested in the promotion of strikes. I do not suppose you are, I have never heard of mine operators striking yet; but those who are interested in pro- INDUSTRIAL CONDITIONS IN ENGLAND 401 moting strikes ought to study that last strike of the railroad men in Great Britain, because it makes this clear to a demon- stration, that no strike in a civilized country can possibly succeed unless it is backed up by the great body of public opinion of that country. [Applause.] Now, I think possibly that is all I need to say about the situation. It is a very fragmentary and rough sketch of the industrial conditions in Great Britain, but there are some things that I think we ought to have learned from the war, and that I believe we will learn from the war after we have had time to think. When these lessons are digested by the people of my country, and of Great Britain as by the people of this country, I believe we shall be a long, long way on the road to permanent peace and to industrial prosperity. Right Must Be Done The one thing that stands out in my mind as being perhaps the gain of chief importance in the region of ethics brought back to us from the war is this: There is a rehabilitation in the mind and heart of the people of your country and mine and of Great Britain that in all cases the right thing must be done [applause], that conscience must be king [applause]. I said that last night, but I think, while we approve that, not one of us recognizes the fundamental and basic importance of that simple statement, of that simple principle that was the issue, above everything else, which we took up with Germany. It was the thing we went to war about. It was the thing you Americans went to war about in the last analysis. It was not because you lost your ships; it was not because you were insulted; not because your men, women and children were killed; it was as your President put it, and the whole world owes a debt of gratitude to President Wilson for the clarity into which he put these great causes and these great principles. [Applause.] It wa$ because you felt that the world was no longer safe for free peoples. If we take back from the war that simple principle and apply it to our national life, we shall find that it cuts very deep to the root of things. I am not talking about standards, you understand ; I am talking about that rule of conscience. Every- man has his standard ; your standard is not mine ; the standard 402 PROCEEDINGS OF AMERICAN MINING CONGRESS of the mining operator is not the standard of the mine worker. But the point I am after is this: That men should be true to their own standards, and that no man should take an attitude or pursue a course of conduct which he does not feel in his own heart is absolutely right. He does not do what he does for self-interest; he does not do it because his class demands it ; he does not do it because of pressure from outside ; he does it because of the conviction in his soul that the thing before him is right and he must do it. That, I think, is the first essential to industrial peace. The Meaning of Duty I need not elaborate on that. In the war there was a great army word. That army word was "duty." Men lived and died by it. We learned anew what that word means. I never knew fully in civil life what that word "duty" meant. I never knew how deep it cut until I went up to the front line one night, and walking along the parapet I came across a lad who was on sentry duty, just a kid 17 he was then and had already seen two years' service, lying on the five-step asleep. We had come in that night, marched six miles in the rain through the mud and carrying those packs. He was dead tired ; nobody knows what it is to be tired who has not been through that experi- ence. Here he was asleep, and I remembered that there was an army regulation that that boy should be reported and shot. Thank God, it was not my duty to report him. I woke him up and he went about his duty. I never realized until then how terrific this thing duty is. He was on guard ; his duty was to look out and see how things were on the German wall. His comrades were asleep, their trust in him imposed upon him a duty, he ought to have done his duty, and for failure he ought to have been shot/ . Duty is the most terrific thing in the English language, and if that thing should get into the American soul, no matter who the man is employer or employee it will go a mighty long way in solving industrial differences. [Applause.] Supreme Value of a Man I am going to add one thing more, and that, too, has a very, very close bearing upon this problem of industrial strife. I INDUSTRIAL CONDITIONS IN ENGLAND 403 suppose the thing that, next to the supremacy of conscience, which impressed itself on my mind is this : The supreme value of a man. I am bound to say before I went to the war and I am speaking to your experience, too that I classified men by factitious things, classified them by the way they talked their English, by their education, by their breeding very much by their breeding. Thank God, I don't think I ever classified them in my esteem by their wealth. I hope to God I never will fall to be such an intolerable snob as that, but we all classified men by their adjectives that described them. When we found them out on the front line we dropped the adjectives. We learned to appreciate a man and measure his worth by just one thing the kind of soldier he was. We only asked "How does he stand up under his duty, whether to walk up under a pack or out over the parapet and push his bayonet home? How does he measure up as a soldier? How does he stand by his comrades? How does he fulfill his duty?" We did not care whether he got drunk or swore and I am a minister. [Laughter.] We asked, I say, "Is he a soldier; is he true to his comrades ; is he true to his duty ?" That is the big thing. It is a thing that is almost impossible to carry back with us from the war. I try to realize it ; I put it in my prayers, gentlemen. I ask God: "Let me never forget those men at the front. The splendor of their humanity, the wonderfulness of those quali- ties of the hero in their souls." For the commonest type of common men, in most extraordinary and surprising ways, would suddenly flame up into glorious heroes. The Supreme Sacrifice I remember a little chap who came from a North Ontario town, an insignificant little chap. Nobody knew him in his town ; even in his own battalion his colonel did not know him. He was standing one day in a front-line bay, a dozen of his comrades with him, where, of course, they had no right to be. The German line was only 30 yards away and a live bomb came hissing in and dropped down among them. They all scurried to cover except this little chap. Without a moment's hesita- tion he threw himself upon the bomb, drew it to his heart and was blown to pieces. But he saved his comrades. A common little tike of a man. 404 PROCEEDINGS OF AMERICAN MINING CONGRESS I tell you, gentlemen, we do not know what a common man is. He looks to me uncommonly like God. For God did the same thing 1 when He saw us with death near. He threw Him- self on death and, by dying, saved us. Gentlemen, we ought to write this down some place on our souls, that there is no such thing in the world as a common man that in the most common of the common men you have the thing that is glori- ously divine, and capable of development up to sonship of and likeness to Almighty God. Now, does anybody imagine that half of our difficulties or three-quarters of them do not arise out of this, that we mis- judge men, we misunderstand men, we do not do them justice, we do not give them credit for what they are? We know it is true. And after we have composed our difficulties and have come to the point where we shake hands and have our first friendly conversation, we know them to have great qualities which we could not see before. That was a big thing in the war, the revelation of the supreme worth of the man. Solemn Responsibility You are thinking about your great country here tonight, and you have a right to think about it. About the greatness of your resources and all that sort of thing, and you have a right to think of these. Not one of you the biggest Ameri- can of you knows how wonderful and how great your country is. It is not a thing to cheer and yell about; it is a thing to get down on your knees over and pray to God and thank Him for, and accept the responsibility for the development of these things given to you. But when we are thinking of America's greatness God for- give us, and the same thing is true of us Canadians when we are asked to enumerate the things that make America or Canada great, I am bound to say that we put in the category those things that are the merest trappings of greatness. We talk about our resources, our mines, our fields, our businesses, our commercial greatness, our expansion, and all these things, which are great things, it is true, but we sometimes do not place in the category or think of the one thing that makes a nation great the man in it and the woman in it! The man- hood of a nation, the womanhood of a nation that is the thing, after all. [Applause.] INDUSTRIAL CONDITIONS IN ENGLAND 405 Tribute to Woman I said "the womanhood of a nation." The story of the war, when it is written, will have many glowing pages, but I believe the most glowing will be those which record the services rendered to our great cause and to our country by the women of our nation. [Applause.] I noticed in one of your papers today these remarkable revelations of Ludendorff , and you notice he says this over and over again, that the reason why Germany failed and he is only partly right was that the people at home did not support the soldiers at the front. Foch said: "This war will be won not by the army of the front line, but by the army of the base." I believe he was right, and when the story of the war is fully told I say the most illustrious pages will be reserved for those heroic souls who, first of all, sent their men away without a tear, without repining, without holding them back. I never saw a British woman, I never saw a Canadian woman, who tried to keep her son or husband back. And then during the long, anxious months of weary watching they never weakened, but kept writing the while cheery letters to their boys at the front. Sometimes I was privileged to read those letters. It would make my heart almost break, because I knew they were not giving the picture as it was at home. "Carry on, Jack, we are all right here. We are doing well." In one case the woman's whole family was sick and she herself was at her wits' end to meet her daily needs until friends came in and discovered how desperate was the need which in her pride she had refused to reveal. Such women reveal to us more and more the splen- dor of our common humanity. All! I think I understand God a little better, because I know men and women a little better. I understand now why it was He thought it worth while to come and share our for- tunes and accept our fate, because I believe it is worth while for even God himself to die to save a race of men and women. Destroy Class Distinction Gentlemen, may I say to you this: If there is any deliver- ance coming for America and there is, and the people of America are waiting for it will you cease to differentiate men from one class to another by mere externals? Will you re- 406 PROCEEDINGS OF AMERICAN MINING CONGRESS member that you are dealing with, that you are legislating for and expressing a judgment on this most wonderful thing that God ever made a man? And will you remember that his fortunes and his fate will be in your hands, very largely, for the next number of years? I shall not apologize that I have forgotten myself and gone farther into a subject than I intended to go, but these two things will live in my heart as long as I breathe: First, that every man must go the line that he sees to be right, no matter where it leads him. That means sacrifice often for us, but re- member that all the great souls pressed that road and all the great leaders trod that way, and no man can serve his country greatly who is not prepared to go the Way of the Cross. "The Royal Pathway of the Holy Cross," an old Roman Catholic saint called it, and he was right. And the second thing that I hope I shall never forget is that, among all the things we ought to thank God for, we ought to thank God that He made us men, and we ought to ask Him the privilege of serving, with all our heart and soul, men. [Rising applause.] THE PRACTICAL USE OF EXPLOSIVES 407 THE PRACTICAL USE OF EXPLOSIVES IN MINING OPERATIONS Paper Read Before American Mining Congress at St. Louis by R. H. SUMMER, Technical Division of the E. I. Du Pont- De Nemours & Co. Look about the room you are now in or most any place you chance to be. You cannot see an object which did not have its original source either from under the ground or directly or indirectly from growth on the earth's crust. While explosives are used in increasing quantities each year for clearing land, sub-soiling, drainage and planting of trees, it is the explosives used for mining our mineral resources that are of chief interest to us. The little stick of dynamite sinks shafts and winzes, drives tunnels and raises into the ore bodies, and then opens up the stopes to get the ore out in quantities. The subject of this paper, as suggested by your Secretary, is to deal with explosives for mining operations from a prac- tical standpoint. In treating the subject there are two most important phases. Economy because especially during the present high cost of production every mining man has lowest cost per ton as his goal; and safety in the use of explosives, both from a humanitarian and economical standpoint. Much has been written and we are all more or less familiar with the high cost of an injured workman or the loss of life. Dynamite Is Made to Explode It is to explode with the maximum disruptive force obtain- able for any given type and strength. Years of experience and application of chemical brains has produced dynamites that are comparatively safe to handle. We must say compara- tively safe because of that inherent characteristic which makes them safe only when used properly and with the Nth degree of precaution. It is our duty as mining men to see that high explosives used in our mines do only the work for which they are intended. Dynamite is a marvelous workman when put to proper use. 408 PROCEEDINGS OF AMERICAN MINING CONGRESS But when mistreated or carelessly handled it becomes a deadly destroyer of life and a wasteful wrecker of property. The progress that has been made of recent years in decreas- ing explosive accidents has been wonderful. This fact, how- ever, should add an impetus to our efforts and not a slowing up, because even with statistics showing fewer accidents in handling explosives there still remains much to be done. I think I may safely state that I have never visited a mine where there has not been some violation of the standard safety precautions for use in handling and storing explosives. Many companies make a special effort to observe every rule, but the human equation is present, and while those in charge are out of sight the miner often chooses the easy way and not the safe one. Now, how is maximum safety to be obtained? There is a combination of three ways. First education; second dis- cipline, and third proper selection of explosives and blasting accessories. We all know that there is ample room for education, particu- larly for the unskilled labor where initiative is usually lacking. We also know the difficulty of such education. In the majority of the cases of violation of safety precautions it is not igno- rance, but rather indifference and carelessness. While educa- tion is necessary and has its effect, it is rendered useless by this indifference and carelessness and becomes effective only when backed by the strictest discipline. Mine superintendents and foremen should have a complete knowledge of safety pre- cautions. These are set forth in detail in the various cata- logues and literature published by explosives manufacturers. The mine superintendent and his foremen are busy men, but so is the army captain and his lieutenants. No matter how lively the shells are falling on the battle field discipline must be maintained. It is always maintained. It must be main- tained in order to protect our armies and our flag. Discipline Necessary Discipline in using explosives is just as important to the mining companies as it is to the army. Without discipline safety rules are violated and carelessness results, either of which becomes a liability against the company, for an accident may come any time. THE PRACTICAL USE OF EXPLOSIVES 409 Too often violations are overlooked because they have been practiced repeatedly without disaster; but remember, the fellow who brags about taking this or that chance is always the lucky one whose chance did not result in an accident. The unfortunate who took a chance and caused an accident to hap- pen is silent. He is not here to tell us of the time he took a chance and the "stuff exploded." The Institute of Makers of Explosives has a standard set of precautions. This list is very complete, and was originally made up by keeping a record of accidents over many years in America and from reports of British and Canadian accidents in use of explosives. Should an accident result from some new cause, a corre- sponding precaution is added to this list. This, however, is now a rare occurrence, as an accident seldom happens that could not be prevented if every rule is observed. List of Don'ts This list contains about 50 "DON'TS" with which everyone handling or responsible for men who handle explosives should be familiar. Enforcement of these rules is necessary to main- tain the proper discipline. A few "INSISTS" may well be directed to the mining company officials. 1. INSIST on discipline. (A lay-off is no worse than 30 days in the guardhouse, and far better than an injured man.) 2. INSIST on your men knowing and observing every pre- caution. 3. INSIST on proper care of magazines. 4. INSIST that proper warning signal be observed whenever firing is done on shift. 5. INSIST on an examination of every face for misfires before allowing next shift to start drilling. (Remarks.) 6. INSIST on careful transportation on underground rail- roads or in cages. 7. INSIST on unused dynamite being returned to the maga- zine. It is dangerous laying around working places. These are just a few points which would help to insure proper use of explosives. I have referred to the reduced number of accidents of recent years. Safety-first campaigns have had an important role in 410 PROCEEDINGS OF AMERICAN MINING CONGRESS reducing the number of accidents. Along with this good work the modern types of dynamites, much safer to handle, have contributed in a very great degree and are largely responsible for fewer accidents. I refer particularly to the low-freezing ammonia and low-freezing gelatin dynamites. The low-freez- ing feature is in itself a most important one, as it eliminates the many dangers involved in thawing dynamite. Even a short memory can recall how common it was a few years ago to see miners "wearing" sticks of dynamite in their boots or other- wise engaged about their clothing in order for it to thaw. Many a cook stove, boiler room and even the gathering place of a bunch of workmen around a bonfire has been scattered in pieces by explosions, caused by thawing out dynamite which used to freeze long before we really felt the chill of winter. The low-freezing dynamites of today will ordinarily stand any of the average cold temperatures that we have in this country. Along with this very important feature the ammonia and gelatin dynamites have the characteristic property of being much less sensitive than the straight dynamites. They are, therefore, less liable to detonation from hard tamping in bore holes, from becoming pinched between rock fragments or from shocks received in transportation or rough usage. Both the ammonia and gelatin dynamites are difficult to ignite, the ammonia more so than the gelatin. It is especially difficult to ignite the 'ammonia dynamite from the side spit of burning fuse. This is important, in that it lessens the chance of a dynamite charge burning in the bore hole. Dynamites which give off almost no poisonous gases when completely detonated produce very poisonous gases when burned. A record of tests which showed practically no C. 0. or N. 0. after complete detonation showed 13.7 per cent. C. 0. and 11.9 per cent, nitrogen oxides when burned. This illustrates the importance of complete detonation and precaution against burning dynamite in underground work. The fumes given off from either the ammonia type or gelatin type dynamites are very much better than from the straight dynamite. Safety in Electric Firing Safety is only one of the many desirable features of electric firing. Isn't it a source of great satisfaction to know that all THE PRACTICAL USE OF EXPLOSIVES 411 men are out of the mine and perhaps on their way home before firing takes place? Particularly in shaft work, where the failure of a signal or many other possibilities may cause a serious accident. Electric firing eliminates these dangers, as the firing is under the control of one man, who pushes the blast- ing machine from a safe distance when all persons are away from range of the shot. Likewise in tunnel work or stope work, if the charges are fired electrically there is not the attendant danger to the miner that exists when firing with cap and fuse. In the latter case he is an unfortunate victim if his light fails him. He is naturally in a hurry and probably nervous, and a fall over a broken stope or down ladder ways is much more liable to occur because of nervousness and haste. Electric firing eliminates hang-fires one of the most prolific sources of serious accidents. In close work where ventilation is poor the poisonous gases evolved from burning fuse are often sufficient to be of conse- quence. These gases are eliminated and better working con- ditions result when electric firing is employed. The make-up of electric blasting caps is such that none of the explosive charge is exposed. This affords protection against sparks ; the element of danger in crimping caps to fuse as well as the dangerous and improper practice of crimping with teeth is eliminated. The modern electric blasting machine is about as fool proof and safe as can be made. Many accidents happen in electric firing by use of dry cells or storage batteries, the reason, of course, being that the instant the terminals come in contact with the battery posts the current passes through and the blast is fired. Only last month a representative of an explo- sives company suffered a severe accident because a miner to whom he was talking accidentally allowed the wires of an electric blasting cap to engage his storage battery. In this case the injured man was one who no doubt condemned the practice. The safest blasting machine is not a battery nor a magneto, although often so called. It is really a small dynamo, the armature being rotated by a down plunge of the rack bar. The little dynamo has electro-magnets specially wound so that the current is shunted through the field magnets. Thus the cur- 412 PROCEEDINGS OF AMERICAN MINING CONGRESS rent is built up and intensified to a maximum when the rack bar closes the circuit at the end of the stroke and releases the full power through the blasting circuit in one surge. The safety feature of this machine needs no explanation, for it is clear that there is no live current existing to accidentally cause a premature explosion until the bar is plunged, and it requires a man-sized plunge at that, because the resulting current is purely a conversion of mechanical energy into elec- trical energy. Tested Blasting Caps No matter how carefully electric blasting caps are tested and inspected before leaving the manufacturer's hands, there are liable to be defects which arise before the caps are put to use. The bridge wire which fuses and causes the detonator to explode is extremely fine and may become broken if not han- dled with care. In order to insure safety and surety, electric blasting caps should be tested before being put into use and the circuit should be tested before firing. Several accidents are on record from the use of improper testing instruments. A safe testing battery has been devised which has been exten- sivly used and has never been known to fire an electric blasting cap. This is known as the Galvonometer, and is a magnetic device which moves a pointer across a calibrated scale when a circuit is closed between the binding posts. The current is supplied from a small silver chloride cell. With this Galvo- nometer individual caps can be tested, or the entire circuit can be tested for detecting breaks, short circuits or leaks, thus facilitating exacting methods and assurance of a complete detonation of all charges. Herein lies the great value of the Galvonometer, as these exacting methods minimize danger and lessen the risk of failures and accidents. In the foregoing I have touched upon a few important safety helps. A detailed discussion would occupy more of your time than I desire to take. However, if what has been brought to your attention will create a desire to seek the knowledge of details which are necessary to accident prevention in handling explosives, then I am sure we will all be well repaid for our time. In taking up economy in the xzse of explosives there are some THE PRACTICAL USE OF EXPLOSIVES 413 fundamental principles to be observed. At the same time, hard and fast rules cannot be laid down. A limestone here breaks vastly different from a limestone in another locality. The character of material to be blasted, ventilation, size, depth and placing of bore holes, operations wet or dry, methods of mining and practice, all have a bearing upon the selection of the most economical explosive. Taking the character of material blasted in general, it may be said that a stronger explosive is required for igneous rocks than for the sedimentaries. Blasting in a hard, dense, homo- geneous rock deposit requires a brusque, shattering action, while a stratified formation with partings and slips will usually break with better results when a slower explosive with a heaving action is used. Question of Ventilation Ventilation (if it is very poor) sometimes limits the selection of the most economical explosive. Gelatin dynamites produce the least fumes and are used in the case of poor ventilation. In many cases an ammonia type dynamite would give equally good results at a cheaper cost, and I have seen places where a saving could be made even at the increased cost of operating adequate blowers for ventilation. The water-resisting qualities of gelatin dynamite are A-l, and in very wet work gelatin dynamite, with an electric primer, will give the surest result. The low-freezing dynamites have been referred to in regard to safety. They are also very economical indeed, for a frozen dynamite or even a chilled dynamite does not exert its full force when detonated and often will not detonate. The ability of dynamite to do work is solely dependent on the rapid conversion of a solid into great volumes of gases, and can only exert its maximum force when strongly confined, allowing none of the gases to escape from the bore hole. Firing untamped bore holes is extravagant as well as detrimental to the workmen. The minimum amount of fumes is given only upon complete detonation, which is virtually impossible in untamped holes. If tamping material is not available under ground, tamping bags can be filled with a suitable material on the surface. 414 PROCEEDINGS OF AMERICAN MINING CONGRESS Electric Igniters In most all mining work shots are fired in rotation, each shot being dependent upon the previous one for its proper execution. Improper rotation or a misfire in one spoils all the succeeding shots. Not only is the cost of the explosive charges lost, but also the labor and redrilling costs as well as the ton- nage. Electric blasting caps and electric delay igniters are made so as to give almost any delay desired. While initial cost of electric blasting is higher than the cost of cap and fuse, the sureness and greater efficiency will often more than com- pensate. High explosives are made in several types and of almost any strength desired, all of which possess different characteristics either in velocity of detonation, water resistance, density, fumes or freezing qualities. Thus the selection of the most economical explosives for any operation is largely a matter of carefully conducted tests. The value of making such tests has been realized to a great degree during the past few years, since prices of all commodities started to soar. Some splendid results have been made, show- ing costs reduced in a greater proportion than the advance in the initial cost of the explosives. PHYSICAL EFFICIENCY 415 PHYSICAL EFFICIENCY ITS EFFECTS ON PRODUCTION By E. DANA CAULKINS, Manager, National Physical Education Service, Washington, D. C. The announcement of an address upon physical fitness has doubtless led you to expect the presentation of some new- fangled short cut to health and efficiency. You have, perhaps, been thinking that I would outline a special course in diet or a special system in daily exercise, but the solution of the problem of 100 per cent, human efficiency is not so simple. In the few brief moments that are available, however, I hope to stress the importance of physical fitness and make a few practical suggestions, which can be used in meeting your every-day problems. I have been very much interested in observing in this build- ing the splendid display of modern devices aimed to simplify and increase production, but in all seriousness I wish to ask you whether it is not true that the most difficult problem you are facing today is that of insuring the dependable con- tinuous working force. In other words, no machine has as yet been invented that will run itself, and in the final analysis human efficiency is the most important factor in production, and I wish to submit to you the further question whether it is not true that one of the fundamental elements in human efficiency is physical fitness. This would appear to be the rock-bottom foundation upon which depend all other elements in the solution of the problem of human efficiency. I have recently seen some very startling figures on the value of the time lost every year because of ill health. These figures take no account of the lowered efficiency of men dragging along on the job in an impaired physical condition; but inaccurate as they were, they drove home to me the tremendous importance of conserving and promoting health and physical efficiency. Physical Education Promotes Stability But physical education does more than keep men out of the hands of the doctor and able to use their muscles in the per- 416 PROCEEDINGS OF AMERICAN MINING CONGRESS formance of their particular tasks. Physical education makes a very direct contribution to mental ability and moral stability. I never yet saw a chronic grouch who was 100 per cent, physically fit. I never yet heard an insane, unhealthy, un- American social doctrine proceeding from the mouth of a man physically fit. You will find that in ninety-nine cases out of a hundred our social and moral runts are also our physical runts; anarchistic, knife-sticking, bomb-throwing doctrines can be housed comfortably only in stunted, mis-shapen bodies. Can you picture a successful athlete, whether you find him in the "sand lot" league or in the college, sneaking around de- manding the forcible overthrow of the Government and a shake-up in the social system to give him a better chance at earning a living? You are more likely to find him rolling up his sleeves, ready for all comers in the struggle for success and advancement. Do not misunderstand me, I am not arguing that the development of physical fitness will solve all the con- troversies between the employer and employee and still the voice of labor in the legitimate efforts to improve working conditions and secure a larger share in the fruits of toil ; but I do say that the man who is physically fit has a decided advantage in functioning sanely and successfully either as an employer or as an employee. Efficiency Decreasing Now, perhaps it will surprise you to know that physical effi- ciency is decreasing in this country today that in spite of all the wonderful progress in sanitation and the treatment of disease, we, as a nation, are actually on the downward grade physically. For instance, a study of the vital statistics in Massachusetts shows that during the past 25 years the death rate from organic disease has increased 86 per cent. By organic disease we refer to the affection of the heart, liver, lungs and other vital organs upon which inroads are very gradually and insidiously made through lack of exercise, im- proper eating and sleeping and other disregard of health habits. The report of the provost marshal general for 1918 reveals that for every two men who marched down our streets into the training camps and overseas for the defense of liberty, one man was set aside disqualified for full military service. PHYSICAL EFFICIENCY 417 Among many reasons there is one fundamental explanation to this tendency to physical degeneration. During the past century our habits of life have rapidly changed, whereas the human body has changed very little. In the former days the necessary activities involved in securing food and shelter brought incidentally the regulation of diet, rest and physical activity needed to insure health and physical efficiency. The rapid development of mechanical devices has pushed us into a manner of living for which our bodies are not at all suited. The most fundamental requirement in health is that the body be used, but we have become a nation of button pushers and lever pullers, toted around by gasoline explosions, thus depriv- ing ourselves of the physical activity essential to health. Now, in order to stem this tide we are obliged to use artificial means. We must construct the dikes and levees which will swing our daily habits into channels conserving the health and physical vigor of our bodies. The fundamentals for physical fitness are proper nourishment, proper rest and proper activities. The drive of the demands of modern life is constantly pushing us toward improper eating, improper sleep- ing and inadequate exercise. Now, briefly, what are the prac- tical suggestions which I can make to you men? You are bound to be interested in physical education. First, on your own personal account. You do not need to be told what to do. Your newspapers and magazines are full of health advice and health instructions. I can only urge you to do it. Nature has been very generous. She doesn't demand a 100 per cent, adherence to the well-known rules for health and physical fit- ness. If you will follow even in a 50 per cent, way the rules which you yourself already know and you ought to follow, you will be in the way of filling out your three-score and ten of happy effective life. Employer's Duty to Workers Now, you are also bound to be interested in promoting the physical fitness of your employees. Most of you have probably discovered that the hardest thing in the world for an employer is to be helpful to his employee. Millions of dollars have been wasted by employers in the construction of various kinds of apparatus aimed to promote the health and physical fitness of 418 PROCEEDINGS OF AMERICAN MINING CONGRESS employees. My own personal conviction in this matter is that these efforts at helpfulness should very largely be transferred from the plant to the community. Now, I realize that the great majority of you employers do not live in the communi- ties where the employees live, but presume it is safe to say that most of you have a means of influencing the development of these communities at least to the extent of preventing exorbitant taxation of the mine properties. Is it not possible through the same means to stimulate the development of public facilities and public leadership in order to give the employees the opportunity for participation in activities which promote health and happiness? There are doubtless some facilities, such as shower baths and the opportunity for change of clothing, which should be located at the mines, but I am inclined to believe that if, for instance, the construction of a recreation building is contemplated, the employees will be more likely to use the building to advantage if they have had a chance to vote on the issue of bonds for its construction and help in determining whether it should be painted white or red. Such facilities should ultimately be controlled by the proper public officials. In many cases it may be wise to have the undertaking temporarily started by a voluntary representative, non-sectarian local community organization, such as is being promoted by Community Service, Incorporated. Appeal to Employers Now, I don't want you to have the mistaken idea that I expect what I am saying here today will have any very great effect in promoting the physical fitness of mining operators or miners. Your habits are pretty well fixed. The demands of modern life have already driven you into a manner of living which, with a few exceptions, you will probably follow to the end. But there is some hope in the rising generation and just for a moment I want to appeal to you, not from the standpoint of your own welfare, nor from the standpoint of the welfare of your employees. I want to appeal to you on behalf of the children of America whose habits are not yet formed. If artificial influences are not set in motion, the demands of modern life will draw them gradually into a manner of living to which their bodies are not at all adapted. Why not put into PHYSICAL EFFICIENCY 419 every school in the country a program which will give them practical instruction in the principles of healthful living and which will organize them into activities that will promote health and normal physical development? A responsible national committee which has made a study of the various investigations into the health of school children reports that 75 per cent, of the school children of the country are suffering from physical defects which seriously impede mental and physical development. They include in that number those having defective teeth. Surely if the function of the school is to train children for effective living, the first step is to train the children in habits which will give them the necessary physical foundation. You are all men who have some influ- ence directly or indirectly in your State Legislature. I appeal to you as good citizens to use your influence in securing the establishment of thorough-going physical education in all the schools of your State. You may be interested to know that 13 of the States have already taken progressive steps in the direction of meeting this need. The National Physical Edu- cation Service aims to help focus the influence of all interested individuals and organizations in the passage of progressive physical educational legislation. It makes no difference whether you are discussing increased production in industry or any one of a hundred other national problems, you will find that the heart of the problem is the need for increased human efficiency, and you will find that the rock-bottom foundation of human efficiency is physical fitness. 420 PROCEEDINGS OF AMERICAN MINING CONGRESS THE OIL FLOTATION SITUATION Address by GEORGE L. NYE, of Denver, Before The American Mining Congress, St. Louis, Mo. Any consideration of the general subject of the recovery of metals by oil flotation naturally divides itself into three heads : I. Past History. II. Present Predicament. III. Future Out- look. The history of the discovery of the peculiar affinity of oil for metal, as distinguished from gangue, in the mass of ore is so much a matter of every day knowledge that it would be like "carrying coals to Newcastle" for me to undertake to re- peat it to those who are probably more familiar with it than I. The history of Minerals Separation, Ltd., is quite a different matter, even more interesting and not by any means so well known. I shall refer to some of it for your enlightenment and, I trust, to your advantage. A British Corporation Minerals Separation, Ltd., was organized under the British Companies Act in December, 1903, and its charter is sufficiently broad to permit it to do practically everything under the shining sun except practice medicine or preach the gospel, but it soon became manifest that it was intended for a particular line of endeavor, and its paths since then, although devious, have been well defined, and its trail on the heels of the mining industry, which it has stalked from the beginning of its career, is well marked and unbroken. In August, 1910, Minerals Separation, Ltd., caused Minerals Separation American Syndicate to be organized to acquire a two-year option on certain patent rights for the United States, Canada and North America, the Caribbean Sea countries gen- erally, including Mexico and Cuba. A month later this concern and Minerals Separation, Ltd., the parent company, entered into an agreement to organize a third company to purchase these patent rights. This com- pany was actually organized as Minerals Separation American THE OIL FLOTATION SITUATION 421 Syndicate, 1913, and did later acquire and exploit these patent rights. Immediately after the organization of Minerals Separation, Ltd., as disclosed by the records, Sir Robert M. Kindersley and Mr. Emil Pusch became large and prominent stockholders. Sondheimer Interests in Control Albert Sondheimer, of Beer, Sondheimer & Co., which in 1910 controlled the zinc, lead and spelter market of the world, was one of the original directors of Minerals Separation Ameri- can Syndicate, and in the third or purchasing company Nathan Sondheimer was a director and Emil Beer an alternate director. In this third company Kindersley & Pusch were the largest, and Beer, Sondheimer & Co. the second largest, stockholders. How did these German interests get this control of English companies? Probably because the first considerable develop- ment and use of flotation was in connection with the lead and zinc mines of Australia, where, at the time, the entire output was absolutely controlled by Beer, Sondheimer & Co. The history of the struggle of Australia to throw off the yoke, and the years of resultant litigation, which only ended with drastic legislation forbidding any but British subjects to deal in lead and zinc, would make a chapter by itself, for which there is no room here. In June, 1913, Minerals Separation American Syndicate, 1913, was incorporated, and in the following September it made an agreement with Beer, Sondheimer & Co., appointing the latter sole agents in the United States, for all the patent rights of Minerals Separation American Syndicate, 1913. We might pause here to remark that the first suit in the United States Minerals Separation vs. Hyde was brought in 1911 and alleged ownership in Minerals Separation, not- withstanding the option held by Minerals Separation American Syndicate and the contract of 1910 to organize a corporation to acquire title to the patents in America. Germans in Control Beer, Sondheimer & Co. operated as sole agents of Minerals Separation in the United States at least until the outbreak of the European War, and probably for quite a time thereafter. 422 PROCEEDINGS OF AMERICAN MINING CONGRESS During the war, the existence of the contract undoubtedly caused grave concern to Minerals Separation, and many efforts were made to avoid violating the British "Trading with the Enemy Act," but through an unwillingness of the American representatives of Beer, Sondheimer & Co. and the hesitation of Minerals Separation to take advantage of the termination of the Beer, Sondheimer & Co. contract, by the declaration of war between England and Germany, only such changes as were absolutely necessary to screen the real situation were made. Explaining to British Not until November, 1916, were the internal agonies of this German-controlled British concern for the three preceding years made known by the filing, in Somerset House, of a con- tract dated August 4, 1916, between Minerals Separation American Syndicate, 1913, first party; John Ballot as pur- chasing trustee, second party, and Benno Elkan and Otto Frohnknecht, described as doing business as Beer, Sondheimer & Co., American Branch, third parties and beneficiaries. The agreement recites the ownership by Minerals Separation American Syndicate, 1913, of the patent rights already men- tioned, the contract appointing Beer, Sondheimer & Co. sole agents for America on a commission basis, and then follows a recital that "by instrument of declaration and guarantee exe- cuted by the agents" i. e., by Elkan and Frohnknecht on October 5, 1914, it was declared that the original agency con- tract had been performed on the part of Beer, Sondheimer & Co. exclusively by Elkan and Frohnknecht, and that the only benefits that had arisen to Beer, Sondheimer & Co., of Frankfort, or Beer, Sondheimer & Co., American Branch, had been commissions on royalties paid over to Minerals Separa- tion American Syndicate, 1913; that deduction of such com- missions had been discontinued prior to the war and had not been resumed; that in order to eliminate all questions as to enemy character of Elkan and Frohnknecht and for the pur- pose of allowing Minerals Separation American Syndicate, 1913, to continue trade relations with them, they undertook that they would not pay, directly or indirectly, anything of value arising from their connection with Minerals Separation American Syndicate, 1913, to Beer, Sondheimer & Co., and THE OIL FLOTATION SITUATION 423 would not deduct any commissions in any event until after the close of the war, and that trade relations between Minerals Separation American Syndicate, 1913, and Elkan and Frohn- knecht should be to the entire exclusion of Beer, Sondheimer & Co. The agreement goes on to recite that, subsequent to the delivery of the alleged instrument of declaration and guaranty, the original agency contract was superseded by a contract entered into between Minerals Separation American Syndicate, 1913, and Elkan and Frohnknecht on January 6, 1915, in which Elkan and Frohnknecht were appointed sole agents of Minerals Separation American Sndicate, 1913, in America and the Philip- pine Islands, for the purpose of exploiting the patents. Question of Record It is worthy of note that the alleged agreement of January 6, 1915, did not appear on record in Somerset House in Novem- ber, 1916, at the time the contract of August 4, 1916, was filed in fact, so far as our present information goes, it has never appeared on the public records. In April, 1915, during the progress of the trial of Minerals Separation, Ltd., against Miami Copper Company, in the United States District Court in Delaware, for alleged infringement of plaintiff's process patents, plaintiff, on April 5, put on the stand one Harry Falck, who testified: "I reside in New York and am general office manager of Beer, Sondheimer & Co." When asked, "Beer, Sondheimer & Co. stand in what rela- tion to Minerals Separation, Ltd., or Minerals Separation American Syndicate, 1913, Ltd. ? Mr. Falck replied : "They are agents for the Minerals Separation American Syndicate, 1913, Ltd., for North America, Cuba, including the West Indies." When asked if "It is a part of your duty, as office manager for Beer, Sondheimer & Co., to be familiar with the granting of licenses and the payment of royalties under licenses in regard to Minerals Separation, Ltd., patents?" Mr. Falck replied: "Yes, sir." Mr. Falck then testified that the books of original entry of Beer, Sondheimer & Co. were prepared under his supervision and checked by him. When asked if "In the ordinary course 424 PROCEEDINGS OF AMERICAN MINING CONGRESS of business the check comes in to Beer, Sondheimer & Co.?" Mr. Falck replied: "Yes, mostly." Q. "If not, the payment is noted by Beer, Sondheimer & Co.?'" A. "Yes, that is it." Bearing in mind that all these questions were asked by coun- sel for Minerals Separation, Ltd., it is plain that the witness intended to state that as late as April 5, 1915, Beer, Sond- heimer & Co. were in fact acting as agents for Minerals Separation, Ltd., and Minerals Separation American Syndicate, 1913, Ltd., and an exhibit which he put in evidence, prepared by him, entitled "Statements of Accounts of Royalties of Min- erals Separation, Ltd.," shows payments collected by Beer, Sondheimer & Co. as late as March 8, 1915, and amounting to thousands of dollars. In view of this testimony, it would seem to be a matter of some question whether recitals in the agreement of August 4, 1916, to the effect that the relationship with Beer, Sondheimer & Co. had terminated in 1914, were entirely correct. New American Citizens The naturalization records in New York show that Otto Frohnknecht was born in Frankfort, came to the United States June 10, 1906, and had continuously resided in the United States up to the time that he made his first declaration of intention to become an American citizen, on August 4, 1914, the very day of the declaration of war between Great Britain and Germany. He was admitted to citizenship on February 6, 1917. The same records show that Benno Elkan was born in Frankfort, came to New York June 7, 1906, made his first declaration February 11, 1915, and was admitted to citizenship on May 22, 1917. The records in the office of the Secretary of State of the State of New York show that August 26, 1915, a company was incorporated, under the corporate title of Beer, Sondheimer & Co., Inc., with its principal place of business in New York City, with Benno Elkan, Otto Frohnknecht, Harry Falck, James A. Nelson and William A. Cooper as its directors for the first year. Elkan was president, Frohnknecht vice-president, and Nelson secretary. The name of this corporation is nowhere mentioned THE OIL FLOTATION SITUATION 425 in any of the agreements with Minerals Separation and its various subsidiaries, and no records concerning it appear in Somerset House. It is quite conceivable that one of the pur- poses of the American corporation, Beer, Sondheimer & Co., Inc., was to enable Minerals Separation, Ltd., and its sub- sidiaries in America to give the technical appearance of truth to their statements that they were in no manner connected with Beer, Sondheimer & Co., meaning the American corpora- tion instead of the German co-partnership, relying upon the fact that connection with the German concern was indirect and by representation, rather than by a direct connection. The British black list, which was published in July, 1916, included Beer, Sondheimer & Co., and the subsequent declara- tions of British officials indicate the intention of the British Government to reach the American end as well as the parent institution, but the absence of any record in England of the organization of Beer, Sondheimer & Co., Inc., the American corporation, left a loophole for continued technical denials, with some semblance of truth. A 'War" Contract The agreement between Minerals Separation American Syn- dicate, 1913, and Ballot, as purchasing agent for Elkan and Frohnknecht, already referred to, provided that Ballot should cause a Delaware corporation to be organized, with shares without par value, to acquire all of the property of Minerals Separation American Syndicate, 1913, and issue part of its stock therefor. The agreement further provided that the alleged agency agreement of January 6, 1915, should be amended so as to relieve Minerals Separation American Syndicate, 1913, and also the proposed Delaware Company from the payment of commissions, and that in consideration thereof certain shares of stock should be issued to Elkan and Frohnknecht and ex- changed for voting certificates for a period of five years. Of course, this manifestly was intended to carry the whole thing over until after the conclusion of the European War and thus relieve many embarrassing situations. As a matter of fact, as it later developed in Parliamentary debates in England, this contract was subsequently modified to possess a duration co- terminous with the war. 426 PROCEEDINGS OF AMERICAN MINING CONGRESS The proposed new corporation, which was given the name of Minerals Separation North American Corporation, was actually organized in December, 1916, but under the laws of Maryland, instead of Delaware. March 16, 1917, Minerals Separation American Syndicate, 1913, was wound up by appro- priate proceedings in England, where it was incorporated. Conflicting Statements Of course, it has been constantly asserted by Minerals Sepa- ration and by the North American Corporation that Beer, Sondheimer & Co. no longer, directly or indirectly, control or act as agents for Minerals Separation, Ltd., or any of its sub- sidiaries, but as to the date when such agency terminated, there seems to be no unanimity among the various statements. If the recitals in the agreement of August 4, 1916, between Minerals Separation American Syndicate, 1913, and John Ballot are to be believed, that relationship terminated in October, 1914 ; yet according to these same recitals, Minerals Separation American Syndicate in January, 1915, appointed Elkan and Frohnknecht its agents, and on April 5, 1915, Harry Falck testified that Beer, Sondheimer & Co. were still collecting royalties and presumably paying themselves commissions. Another rather striking feature is that as late as January, 1917, Minerals Separation North American Corporation had on its letterhead the statement that Beer, Sondheimer & Co., 61 Broadway, were its general agents. Possibly these matters of history, thus briefly recited, are of no particular concern, in view of what we may designate the technical legal position at the present time under the patents, but nevertheless history is usually interesting, oftentimes enlightening and frequently of benefit in the matter of present negotiation and future relationship. About Patents We come now to a consideration of the "Present Predica- ment." The American patent now known as "Fraction of 1 per cent, oil," No. 835120, was granted to Sulman, Picard and Ballot on November 6, 1906. Patent No. 962678 (soluble frothing agents) was granted to Sulman, Greenway and Hig- gins on June 26, 1910; and a third, No. 1099699, was granted THE OIL FLOTATION SITUATION 427 June 9, 1914, to H. H. Greenway (phenol or cresol cold with- out acid) . All now belong to Minerals Separation North Ameri- can Corporation, and they are the only patents out of the 53 different varieties claimed by them which have been litigated. It is now definitely settled by the case of Minerals Separa- tion, Ltd., vs. Butte and Superior Co., 250 U. S. 336, decided by the Supreme Court of the United States on June 2, 1919, that the use of less than 1 per cent, of oil on the ore infringes patent No. 835120, and that the use of more than 1 per cent, of oil on the ore does not infringe that patent. A Remarkable Document The license agreement which has been in use for some time by Minerals Separation North American Corporation is in many respects a most remarkable document. Paragraph 1 contains a blank for a description of the royal- ties to be paid, and according to the best information obtain- able this blank has been variously filled to suit the situation in respect to the particular licensee. Paragraph 2 requires the licensee to keep records of all concentration operations, whether by flotation under Minerals Separation process or by flotation under rival processes, or by older forms of concentration, such as hand-sorting or gravity concentration by the use of jigs, vanners, tables and cyanida- tion. In many instances royalties are exacted from licensees not only on the concentrates resulting from the use of Minerals Separation processes, but also on all concentration resulting from any process, whether covered by Minerals Separation patents or not, presumably upon the theory that if the Min- erals Separation patent is used at all in the general process of concentration, the whole recovery should pay tribute to those who control what they are pleased to regard as an essential element of the whole process. A Technical "Cinch" Paragraph 3 requires that the licensee, during the continua- tion of the license, shall "promptly communicate and explain to the licensors every invention or discovery made or used by them which may be an improvement, modification or addition to any of the inventions specified in the letters patent. It 428 PROCEEDINGS OF AMERICAN MINING CONGRESS further provides that all such inventions and discoveries be- come the property of Minerals Separation, Ltd., leaving the licensee who has invented the same only shop rights for the use of his invention, and that Minerals Separation, Ltd., there- after may grant licenses thereon and derive a profit therefrom. This clause, of course, was intended to and does give to Minerals Separation, Ltd., a complete control of all future development in the art of flotation. Not only does it include every new process, but it includes also apparatus, so that the whole field is brought within the complete domination of Minerals Separation. This paragraph also requires the licensee to bind its employees to assign and transfer to Minerals Separation, Ltd., any invention made by them during their employment. Thus the control of Minerals Separation, Ltd., is extended over future inventions in the art of flotation beyond inventions made by the licensee, and includes all inven- tions made by employees. The paragraph further provides that the licensee shall not, without the written consent of the licensor, during the con- tinuance of the license, use or employ any improvement, modi- fication or addition to any of the inventions specified in the letters patent "within this license," which improvement, modi- fication or addition is not the property of the licensor. Can Claim Any Invention When we consider that Minerals Separation, Ltd., is in a position to claim that any invention in any branch of the art of flotation is in some way an improvement, modification or addition of its own inventions, it is perfectly obvious that the purpose and result of this clause is to require the licensee to obtain permission from Minerals Separation, Ltd., before it can use any improvement in the art which the future may bring. Paragraph 4 provides that the licensor shall give assistance, information and advice to licensee whenever required, upon licensee paying out of pocket expenses. Paragraph 5 provides that the licensee shall not, directly or indirectly, during the license period or thereafter, dispute or object to the validity of the letters patent within the license or the novelty or utility of the inventions specified therein. THE OIL FLOTATION SITUATION 429 Paragraph 6 clinches the contract by forbidding the licensee to use any licensed inventions otherwise than in accordance with the agreement. It further forbids the licensee assisting any hostile party in litigation against Minerals Separation, Ltd., and from appearing in court or giving to the court the results of his own observation, use or experience. Paragraph 7 forbids the licensee to sell or dispose of any machinery or apparatus, the subject matter of any of said letters patent, unless sold to a responsible party who will, in turn, agree to take a license from Minerals Separation, Ltd. Paragraph 8 gives licensor the right of inspection and examination. Against Public Policy Paragraph 9 provides that the licensee shall not, without the written consent of licensor, communicate any details connected with the working of any of said inventions, modifications, additions or improvements to any third party. This again emphasizes the restraint imposed by Minerals Separation, Ltd., upon any dissemination of information except under its direction or control. This restraint upon the spread of knowl- edge is not only adverse to the public interests, but is certainly against public policy. Paragraph 10 of the license agreement provides that the licensor, when required by the licensee, "shall prepare and supply, as soon as may be possible, plans and specifications of the plant for the working of said invention." Of course, this paragraph must be read in connection with the previous para- graph, which, in effect, forbids the licensee to use any apparatus except that specified by the licensor, and read in this connec- tion, it simply makes more definite and positive the restraint imposed by the previous paragraph. Question of Royalties When we come to the question of royalties, we reach a most interesting field. Mr. T. J. Hoover, one time manager of Minerals Separation, Ltd., who resigned his position in 1910, published a book in 1912, entitled "Concentration of Ore by Flotation." In this book, on page 163, he says : 430 PROCEEDINGS OF AMERICAN MINING CONGRESS The average royalty charged by the process owners for the use of these flotation processes (referring to Minerals Separa- tion, Ltd.) is one shilling (25 cents) per ton of ore treated. This is a very high royalty as measured by others with which miners and metallurgists are familiar. It is conceded that the inventor deserves compensation for his ingenuity, but one shilling per ton is about four times as large a royalty as the mine manager would expect. In this connection, it perhaps is well to note that when the plan of Minerals Separation, Ltd., to charge royalties upon all values recovered by concentration, when flotation was used as any part of the process, was vigorously combated and con- tended against by applicants for licenses as unreasonable, un- fair and unjust, and when absolutely driven from its position by the logical force of the arguments against such an arrange- ment, Minerals Separation, Ltd., very gallantly came to the front and announced that it was going to change its policy in respect to royalties and was going to offer to applicants for a license an opportunity to make a selection and to determine for themselves whether they would pay a license charge upon the whole recovery or a license charge upon that portion recovered by the flotation process alone. This offer seemed to afford some means of at least partial relief, until a careful analysis was made of the different bases for royalty computa- tion in the suggested new contract. This computation quickly demonstrated that whichever plan the licensee chose, the charge was practically the same in other words, Minerals Separation, Ltd., caught them going and caught them coming. To make a concrete illustration, let us suppose that in the whole concentration process of a particular licensee four tons of ore are treated, from which ore old-fashioned and well- known processes extract four-fifths of the recoverable value and oil flotation one-fifth. Under the original plan of royalty payment the licensee would be paying 25 cents per ton of ore treated, or $1.00. Under the new plan the licensee would be paying only upon the amount of metallic value recovered by oil flotation, but instead of paying one-fifth of the original charge, he would be paying five times as much and Minerals Separation, Ltd., would get its dollar just the same. THE OIL FLOTATION SITUATION 431 Three Noted Cases It is perhaps purposeless at this time to go into detail con- cerning the different decisions in the now famous cases of Minerals Separation vs. Hyde, Minerals Separation vs. Miami Company, and Minerals Separation vs. Butte and Superior Company. All three cases were fought through the several courts, and two of them, at least, reached the Supreme Court of the United States. As already pointed out, the most recent decision of that court fixes the status of the fundamental patent, viz: 835120, fraction of 1 per cent, oil, and makes perfectly plain the effect of its original decision in the Hyde case. Minerals Separation, Ltd., is at last confined definitely to a royalty upon the use of the oil froth, where less than 1 per cent, of oil on the ore is used. In order to recover in the Hyde case, Minerals Separation, Ltd., had to take a fixed and definite stand to the effect that its patent made an entirely new discovery, one wholly unknown to the previous art, viz: that with a percentage of oil far below any previously used, coupled with violent agitation, a new phenomenon appeared in the peculiarly coherent and per- sistent froth which was produced and which carried the metal- lic particles to the surface, where they were easily skimmed and recovered. Their counsel, before the Supreme Court of the United States, in answer to direct questions from the bench, announced that when the inventors began to cut down the quantity of oil below one-half of 1 per cent., then first the invention began to appear, and it was upon their insistence that their invention lay in the very low percentage of oil used, thereby drawing a well- defined line between the claimed invention and the previous art, that they were enabled to maintain their process patent. In that same litigation they contended that their invention could not be practiced with more than 1 per cent, of oil on the ore, but when it came to the Butte and Superior case, Minerals Separation very artfully took the position that no matter how much oil was used, and notwithstanding the fact that the quantity might be in excess of 1 per cent, in actual practice, nevertheless the efficient oil and consequently the oil of the process was less than 1 per cent., that anything above the "critical proportions" referred to in their patent was sur- 432 PROCEEDINGS OF AMERICAN MINING CONGRESS plusage and wholly ineffective, if not detrimental to the process, and that consequently any use of oil in flotation was an infringement upon their process. One Claim Exploded Of course, this contention may have been quite natural, but if successful it would have meant that, notwithstanding the fact that their patent confines itself to a fraction of 1 per cent., it would, in effect, have been a patent upon any use of oil in the flotation and recovery of the metallic values in ores. This contention was very properly exploded by the Supreme Court of the United States in the Butte and Superior case. It was there said: From this consideration of the terms of the patent as written, it is apparent that it makes no differentiation whatever either in the claims or in the specification among the oils having a preferential affinity for metalliferous matter, and that its dis- closure, to which the petitioner must be limited, is that when a fraction of 1 per cent, on the ore of any such oil is used in the manner prescribed, there will be produced a metal-bearing froth, the result of the process. No notice is given to the public, and it is nowhere "particularly pointed out" in the claims that some oils, or combinations of oils, having a preferential affinity for metalliferous matter, are more useful than others in the process, or that some may be used successfully and some not, or that some are "frothing oils," a designation not appearing in the patent, and that some are not. The patentees discovered the described process for producing the result or effect, the metal- bearing froth, but they did not invent that result or froth their patent is on the process. It is not and can not be on the result and the scope of their right is limited to the means they have devised and described as constituting the process. This decision of the Supreme Court of the United States undoubtedly ends the determined effort of Minerals Separation, Ltd., to acquire a complete and absolute monopoly of all oil flotation, but unfortunately it does not end the grip of the monopoly on an essential and very practical part of the metal- producing industry. Future Outlook In the fall of 1918 complaint was made to the Federal Trade Commission that Minerals Separation, Ltd., was violating the THE OIL FLOTATION SITUATION 433 provision of the act creating the Federal Trade Commission and also the provisions of the Claytoji act. After an inves- tigation, a complaint was lodged by the Federal Trade Com- mission, and Minerals Separation, Ltd., and all its subsidiaries and agents were made parties defendant in the proceeding. In due course pleadings were filed on behalf of all of the defendants. At this stage of the matter your American Min- ing Congress took a hand on behalf of the mining industry of the United States. Right here I want to pause long enough to say that this is but another example of the fact that The American Mining Congress is everybody's congress, but it is nobody's congress. By this I mean that it represents the industry generally, but no particular individual, company or interest specifically. If its attitude at any time runs counter to the interests of any particular individual or company, it will always be found that those interests are not the interests of the industry generally ; in other words, the Congress represents the whole industry, not any particular part of it. American Mining Congress Intervenes The American Mining Congress, after a careful consideration of the situation, concluded that the proceeding before the Federal Trade Commission must be carried on, and that a complete determination of all questions involved in the com- plaint against Minerals Separation, Ltd., must, if possible, be thrashed out in the interests of all who were using or who might use the oil flotation process, and undertook to answer the following questions from the authorities: (1) Are Minerals Separation North American Corporation and other respondents engaged in interstate commerce, and are the transactions complained of methods in interstate com- merce ? (2) Are the acts complained of methods of competition? (3) Are the practices of respondents in insisting upon terms in their license agreements which give them unified control over patents which, under separate control, might be used in competition with each other, and their control over inventions discovered by their licensees and their employees, unlawful practices, in violation of law and public policy? 434 PROCEEDINGS OF AMERICAN MINING CONGRESS (4) Has the Federal Trade Commission, in any event, juris- diction in respect to the alleged exorbitant and discriminatory royalties ? General Principles I shall not undertake to discuss all of the authorities bearing on these several questions of law, but content myself with ref- erence to a few of the general principles enunciatd by the Supreme Court of the United States in decisions which con- clusively show that the answer is "yes" to all four of the questions. In the very famous case of Gibbons vs. Ogden, 9 Wheaton 1, Mr. Chief Justice Marshall said : Commerce undoubtedly is traffic, but it is something more. It is intercourse. In Pensacola Co. vs. Western Union Co., 96 U. S. 1, it was said: It is not only the right but the duty of Congress to see to it that intercourse among the states and the transmission of intelli- gence are not obstructed or in any way encumbered by state legislation. In International Textbook Co. vs. Pigg, 217 U. S. 91, it was held that intercourse by means of correspondence through the mails, with agents and scholars, was interstate commerce. In U. S. vs. United Shoe Machinery Co., 234 Fed. 127, 145, it was said : It is sufficient to say that as new methods of transacting business are devised, if they are found to be in effect methods of carrying on commerce in any business, and the means for commercial transactions between the owner of the article on the one hand and the person who wants to deal in it or use it in carrying on his business on the other hand, whether it be manu- facturing, selling, trading, leasing, transportation, communica- tion, or information, and it is sent or transported from one state to another, it is interstate commerce, and, therefore, subject to be regulated by Congress under the commerce clause of the Constitution. THE OIL FLOTATION SITUATION 435 In Marienelli vs. United Booking Offices, 227 Fed. 165, it was held that booking performers for a theatrical circuit, which requires them to pass from state to state, taking with them paraphernalia and stage properties, constitutes interstate com- merce. In the light of these authorities, when we take into con- sideration the fact that every license agreement put out by Minerals Separation, Ltd., requires the constant transmission from the point where the mining books of account are kept to the head office of the company in New York of all informa- tion in respect to concentrates produced, methods employed in operation, information as to assays, recoveries, discoveries and the like, that it is sending its agents, engineers, auditors and other representatives throughout the various states of the Union, there can be no question whatever but that it is engaged in interstate commerce. Stifling Competition I have already pointed out the several provisions of the licenses granted by Minerals Separation, Ltd., which require all further discoveries and inventions by licensees or their employees be made over to it for its exclusive operation, use and benefit. There can be no question but that Minerals Separation, Ltd., is engaged in methods of competition with respect to all inventors, manufacturers, vendors and users of processes or apparatus which in no manner infringe upon or conflict with the processes practiced and the apparatus used by Minerals Separation, Ltd. ; but if it be answered that there are none such, that Minerals Separation, Ltd., is in the field alone, that it possesses, by virtue of the patent laws, a legal monopoly, the answer is that by its methods of licensing, by which it seeks to and does obtain an absolute and complete control over every discovery and invention of each and every licensee and all employees of its licensees, it is engaged in competition within the meaning of Section 5 of the Federal Trade Commission Act, for if its acts are designed to and do prevent competition against it on the part of other individuals or concerns which might be competitors, and such acts are done for the purpose of stifling and suppressing competition, they must be regarded as acts actually directed against com- 436 PROCEEDINGS OF AMERICAN MINING CONGRESS petitors, actual or potential, and in violation of Section 5 of the Federal Trade Commission Act. It surely does not need any argument to demonstrate that the most effective means of competition known to modern business is to stifle all such com- petition. This has been characterized over and over again as competition, and decisions of the Federal Trade Commission in the case against the Cudahy Packing Company and numer- ous other cases recognize and affirm the doctrine. When we come to consider the question of public policy in respect to the methods employed by Minerals Separation, Ltd., we should first consider again the fact that Article 3 of the license requires the licensees to communicate and turn over to Minerals Separation, Ltd., every invention or discovery made by them or their employees during the continuance of the license agreement, and that elsewhere in the agreement the duration of the contract is the term of the patents within the license, or any additional patents that may be added thereto by the licensors, and we then discover that the practical effect of the contract is to make its terms perpetual. It may be seriously doubted whether, if this practice is permitted and the license is enforced in accordance with its strict terms, the licensees do not contract in such a way that, notwithstanding the expiration of the fundamental patents by lapse of time, the contract will continue in force so long as Minerals Separation, Ltd., has any live patent on process or apparatus, and the licensees be required to pay tribute to the licensor for a period far beyond the time intended by the act of Congress in creating a patent monopoly. Right here it is well to call attention to the fact that in Pennock vs. Dialogue, 2 Peters 1, decided in 1829, Mr. Justice Story said: Object of Patent Laws While one great object (of our patent laws) was by holding out a reasonable reward to inventors and giving them an exclu- sive right to their inventions for a limited period to stimulate the efforts of genius, the main object was to promote the prog- ress of science and the useful arts. Again, in Kendall vs. Windsor, 21 How. 322, it was said : THE OIL FLOTATION SITUATION 437 It is undeniably true that the limited and temporary monopoly granted to inventors was never designed for their exclusive profit or advances; the benefit to the public or community at large was another and doubtless the primary object in granting and secur- ing the monopoly. Referring to these cases and quoting from them with approval, the Supreme Court of the United States, in Motion Picture Patents Co. vs. Universal Film Co., 243 U. S. 502, said: The primary purpose of our patent laws is not the creation of private fortunes for the owners of patents, but is to promote the progress of science and the useful arts. In Straus vs. American Publishers' Assn., 231 U. S. 222, con- tracts otherwise clearly within the terms of the Sherman Act were claimed to be justified because of rights secured under the copyright laws of the United States, but it was said by the court: It cannot be successfully contended that the monopoly of a copyright is in this respect any more extensive than that se- cured under the patent law. No more than the patent statute was the copyright act intended to authorize agreements in un- lawful restraint of trade and tending to monopoly, in violation of the specific terms of the Sherman law, which is broadly de- signed to reach all combinations in unlawful restraint of trade, and tending, because of the agreements or combinations entered into, to build up and perpetuate monopolies. * * * The patent statute and the Sherman Act are each valid laws of the United States. While a patentee should be protected in the exercise of rights secured to the inventor under the .patent system enacted into the laws of the United States, there is nothing in the act which gives the patentee a license to violate other statutes of the United States, and certainly not the one now under con- sideration. From these references to and quotations from a few only of the many decisions to the same effect, it is seen that it is clearly against public policy to permit the owners of a patent monopoly to broaden and extend that monopoly beyond the strict limitations which the law gives as a stimulus to the inventive genius. 438 PROCEEDINGS OF AMERICAN MINING CONGRESS Federal Trade Commission When we come to a consideration of the question as to the jurisdiction of the Federal Trade Commission in respect to the acts of Minerals Separation, Ltd., and the exorbitant and dis- criminatory royalties demanded by it, we find equally emphatic approval in the decision of the Supreme Court of the United States under the Sherman Act. That act has been interpreted by the Supreme Court of the United States to authorize de- crees not only enjoining proven violations of it, but also decrees "recreating out of the elements now composing it a new condition which shall be honestly in harmony with and not repugnant to the law." (U. S. vs. American Tobacco Co., 221 U. S. 106.) The decree, as finally entered, under the authority of the decision just mentioned, fixed the price at which the American Cigar Company should sell its holdings in Federal Cigar Com- pany, the price at which P. Lorillard Company should sell its share in American Snuff Company, the price which American Tobacco Company should charge Liggett & Meyers Company and P. Lorillard for specified assets, brands and good-will, and throughout the entire decree other directions of similar char- acter in most minute detail were made in respect to many of the defendants and many of their contracts and property rights. In U. S. vs. Du Pont, 188 Fed. 127, defendant was directed to organize additional corporations, furnish them with cash working capital and facilities, transfer properties, facilities, information, etc. In U. S. vs. U. P. Railroad, the decree went into detail con- cerning shares of other corporations owned by it, the parties to whom they should be sold, the price to be paid, etc. In many other cases, the decree finally entered upon decisions of the Supreme Court of the United States goes into most elaborate details of comment and direction. It is thus seen that not only do the courts take cognizance of violation of specific statutes, but when they find that such violations have seriously affected the public interests, they go into detail in directing how these violations shall be cor- rected, the public interests subserved and the people permitted to come into their own. These decisions have been followed THE OIL FLOTATION SITUATION 439 repeatedly by the Federal Trade Commission in numerous determinations, and there can be no question but that that Commission has jurisdiction to correct the abuses practiced and attempted to be practiced by this most offensive monopoly. Minerals Separation, Ltd., originally incorporated with a capital of fifteen thousand pounds, had its capital increased on at least two different occasions, until at last accounts it had a total capital of fifty thousand pounds. Minerals Separation American Syndicate had a capital of fifty-two thousand five hundred pounds, and Minerals Separation American Syndicate (1913), Ltd., had a capital of two hundred and fifty thousand pounds. Minerals Separation North American Corporation was incorporated under the laws of Delaware, having a capital stock without par value, but inasmuch as it was organized practically for the purpose of taking over Minerals Separation American Syndicate (1913), Ltd., it very probably did not have a capital much larger than the concern which it absorbed. At all events, the total capitalization of the companies inter- ested in the process patents probably does not exceed five hundred thousand pounds ; but in order to be on the safe side, let us concede that these interests have a total capitalization of one million pounds, or five million dollars. It certainly is fair to assume that a considerable portion of this capital repre- sents an estimated value of patent rights, as distinguished from actual money invested. Annual Income $7,000,000 In the answer filed by Minerals Separation North American Corporation in the proceedings before the Federal Trade Com- mission, it is affirmatively alleged: That it (Minerals Separation North American Corporation) and its predecessors in title have granted upward of one hundred licenses in the United States that are now in full force and effect, and that the aggregate tonnage of ore milled and in part treated under said licenses is in excess of twenty-eight million tons per year. Applying to this twenty-eight million tons the estimate made by Mr. Hoover that the average royalty is 25 cents per ton, we have an annual income of $7,000,000 on a total capitaliza- tion which cannot exceed five million. This would seem to be 440 PROCEEDINGS OF AMERICAN MINING CONGRESS a wholly unwarranted profit taken by the owners of the process patents from the mining industry. It is hoped that the Federal Trade Commission will conclude to inquire into the amount of capital actually invested, the life of the original patents, and the probable tonnage to pay royalties, and then fix for Minerals Separation, Ltd., and its subsidiaries a rate of license charge which will permit a fair return and no more upon such capital invested. Of course, in this connection the duration of the patent monopoly under the law is an important item and an element which must have a controlling influence. At the same time, the efforts which have been and are being made to establish a monopoly which shall have a duration beyond the statutory limit of patent right should be checked, and the scheme for laying a perpetual tribute on the mining industry should be frustrated. FEDERAL REGULATION OF EXPLOSIVES 441 FEDERAL REGULATION OF EXPLOSIVES Address by CLARENCE HALL, Explosives Engineer, U. S. Bureau of Mines After the United States entered the World War the Federal Explosives Regulation Law was enacted and Dr. Van H. Man- ning, Director of the Bureau of Mines, was authorized to en- force the provisions of this act. The purpose of the law was to prevent disloyal persons from procuring explosives or their ingredients and to keep such articles out of the hands of per- sons who would not protect them carefully enough to prevent them from being stolen or used for unlawful purposes. The Director of the Bureau of Mines under the law was authorized to make rules and regulations for carrying into effect this act, subject to the approval of the Secretary of the Interior. After a careful investigation of this subject by con- sulting leading authorities on explosives and representatives of powder companies, rules and regulations were adopted. Imme- diately licenses were issued to all persons known to be loyal who had occasion to use explosives or their ingredients. It will be readily seen that the handling of such a proposition through- out the United States, Alaska and dependencies involved a thorough organization, inasmuch as under the law not only were all common explosives included, but also a number of ingredients which are of every-day necessity for household use and which involved the issuing after investigation of approxi- mately 1,500,000 licenses. The headquarters of the organization was in Washington, D. C. This office was sub-divided into the various branches required for the enforcement of the law and the administration of the large field force. The chief branches of this office con- sisted of: the Central Committee, which rendered opinions of administrative nature and on questions of policy; the branch which handled the investigation of applications and the issuing of Manufacturers', Exporters' and Importers' licenses, the in- vestigations and subsequent appointment of those persons who were to act on the field force, and finally the enforcement of the law itself which consisted in the investigation of all violations 442 PROCEEDINGS OF AMERICAN MINING CONGRESS of the law, the supervision of prosecutions and the recommen- dations relative to proper storage of explosives or ingredients in the individual cases. Field Operation In the field acting under the supervision of the Washington office a United States Explosives Inspector took charge in each State and in the* Territory of Alaska. These inspectors were appointed by the President by and with the approval and con- sent of the Senate. Under each United States Explosives Inspector there oper- ated an Advisory Committee, which was made up, when prac- ticable, of a representative of those industries or interests which would be the most affected by the Explosives Law, such as : The Council of National Defense, the Department of Jus- tice, Department of Agriculture, a fire insurance company, a casualty company, a dealer in and user of explosives, a manu- facturer of explosives, etc. These members of the Advisory Committee were designated as Assistant Inspectors, and their business associations in their State were expected to obtain and render the United States Explosives Inspector such assistance as lay within their power. The appointment of these Assistant Inspectors was made by the Director of the Bureau of Mines with the approval of the Secretary of the Interior. The Bureau of Explosives of the American Railway Associa- tion, New York City, acted in close co-operation with the Ex- plosives Division of the Bureau of Mines in that it handled all cases of explosives or ingredients while in transit in public carriers, and its inspectors throughout the country assisted at every opportunity the United States Explosives Inspectors when occasion arose. For the licensing of users of explosives and ingredients it became necessary to have a field force of over 15,000 men, who were chosen and appointed by the Director of the Bureau of Mines after investigation as to loyalty, and as to their having unlimited power to administer oath and not being connected or interested in any way with the manufacture or sale of explo- sives or ingredients. In the enforcement of the act a deplorable state of affairs was found to exist in many States in the mining district, where FEDERAL REGULATION OF EXPLOSIVES 443 miners not only had free access to explosives, but made a com- mon practice of carrying them to their homes in thickly popu- lated mining towns. It was not an uncommon occurrence to find a hundred pounds of explosives in a single miner's lodging house, and statistics show frequent accidents which occurred from miners filling their paper tubes by the light of ordinary oil lamps. In the States of Kansas and Alabama about 80 per cent, of this practice was done away with through the co- operation of the coal operators in issuing or selling explosives to the men at the mine, thereby reducing the necessity of carry- ing these to their lodging houses. In studying the magazine problem it was found in thousands of instances that explosives were stored not only in such care- less manner that they could have easily been stolen, but also that they were located in such proximity to inhabited dwellings, buildings, public highways and railroads that their presence was a constant menace. Quantities up to 10,000 pounds in a single magazine have been found in the heart of a town, which condition, had an explosion occurred, would have resulted in loss of life and property. Not only have several attempts been made to dynamite rail- road bridges and other structures with the object of hampering the transportation or equipment of troops, but on several occa- sions the War Department has appealed to the Bureau of Mines to remove the menace due to the proximity of improperly con- structed unguarded magazines which were located at or near mobilization camps. Thousands of Investigations Acting under instructions, special investigations were made in the field by inspectors or their assistants in the cases of refusals or revocations of licenses, improper storage facilities, violations of the law and outrages against life and property by the use of bombs and other explosives. There have been more than 4,500 special investigations made and more than 125 convictions of violation of the act. The number of magazines listed surpasses 8,000, additional ones being received at the rate of 100 daily in the form of owner's reports, showing de- tailed construction, location and contents at the time the work was discontinued. 444 PROCEEDINGS OF AMERICAN MINING CONGRESS State Control Advocated The Bureau of Mines recommended that the work be con- tinued, especially now, as the country is confronted with the problem of reconstruction and industrial unrest. However, Congress failed to make any appropriation to carry on this work. The reasons which prompted the enactment of adequate legislation to control the use, storage and handling of explo- sives during wartime are equally present now. In view of the fact that Congress is not disposed to enact any act for the Federal control of explosives, it is important that the various States should exercise control. The Federal Act brought about a notable reform and much of this work will be lost if the States do not exercise some control. Today many States have no laws, many have laws that are inadequate to cope with the situation, and some States that have laws do not properly enforce them. The Bureau of Mines is in a position to furnish to State legis- lative bodies information which will be of value in the formu- lation of laws relating to explosives which will safeguard life and property. It is questionable if a uniform State law can be formulated. However, many features could be adopted by all States, such as construction of magazines and their location in respect to other buildings, railroads and highways. The Bureau has col- lected the varous laws of the States relative to explosives, and these are given in the following appendix. [Appendix I.] It is to be noted that only seven States California, Kentucky, Massachusetts, Montana, New Jersey and Ohio have modern laws in respect to the storage of explosives, and that even in these States there is considerable room for improvement. The following reports and specifications for magazines used by the field force of the Bureau of Mines are of interest and may be useful to State officials who have to do with the administra- tion of explosive regulations. Particular attention is called to the lock specifications. It was a common occurrence to find a substantial brick magazine with heavy iron doors locked with a ten-cent padlock. The standard mortise type or rim type locks were required on all magazines except Portable Box Magazines. The box magazine is used for storing small quantities of explosives and on such magazines certain types of padlocks were permitted. FEDERAL REGULATION OF EXPLOSIVES 445 The American Table of Distances is also appended. (Appendix I, Present State Laws Regarding Explosives.) (Appendix II, Form of Report of Magazine Inspection, Speci- fications for Various Types of Magazines, and American Table of Distances.) APPENDIX I Synopsis of State Laws and Municipal Regulations Covering the Manufacture, Storage, Sale, Etc., of Explosives ALABAMA No record of any laws regulating the manufacture, storage and use of explosives. Alabama has copied the Interstate Commerce Commission regulations for transportation by common carrier. Alabama has an act regulating the mining of coal, which goes into the question of storing explosives around mines and conditions under which explosives may be used around mines. Wooden structures for mine magazines are pro- hibited, but small portable magazines may be locked in wooden boxes. The American table of distances has not been adopted. Birmingham. Ordinance prohibits the manufacture, keeping, use, sale, storage or transportation without a permit or license from the Mayor or Alderman. Mobile. Prohibits the manufacture, sale, having, keeping, transporta- tion or use of explosives within the city, without making application to and obtaining a license from the Chief of the Fire Department. ALASKA Laws only partially cover the transportation of explosives. No munic- ipal regulations known. ARIZONA No record of any State laws regulating the manufacture, storage, use and possession of explosives. ARKANSAS No record of any law covering the manufacture, storage, use and dis- position of explosives. Act of April 13, 1903, covering the sale of explosives. CALIFORNIA State law contains quantity and distance tables identical with those in suggested State law compiled by the Institute of Makers of Explo- sives, except that the number of blasting caps is limited to 2,500,000 and the quantity of other explosives to 300,000 pounds. San Francisco. Ordinance limits amount which may be brought into, stored, had or kept within the city limits. Prohibits manufacture. 446 PROCEEDINGS OF AMERICAN MINING CONGRESS Ordinance applicable to local retail sales and use within the city limits. Senate Bill 454, Chapter 201, Law for 1913, relating to the malicious use of explosives, and makes it a felon punishment by imprisonment to maliciously use, place, deposit, explode, or attempt to explode, explosives at, in, under, near, or take into or near any building, vessel, boat, rail- road, tram road, cable road, train, car, depot, stable, theatre, school- house, church, dwelling or other place of human habitation where people assemble, pass or repass. COLORADO No modern State law regulating the manufacture, storage, use and sale of explosives. Colorado mining laws cover the use of permissible powders in certain coal mines. House Bill 166, Law of 1913, amend the Revised Statutes of the State, delegating powers to incorporated towns and cities to regulate or prevent the storage or the transportation of powder within the corporate limits. Boulder. Ordinance regulating storage and handling of explosives within the city requires that the Fire Department be notified where storage is had, with the privilege of access thereto. Canon City. Regulates the amount of explosives that may be stored within the city limits. Denver. Regulates the storage of explosives within the city. Requires that a permit be issued by the Fire and Police Departments therefor. Requires police force to confiscate explosives unlawfully had or kept within the city. CONNECTICUT General Statutes. It is prohibited to manufacture or store explosives near another person's property in quantities sufficient to endanger the lives or safety of persons or to endanger their property. No person shall manufacture, store, sell or deal in explosives, etc., unless he shall first obtain from the Fire Marshal of the town where such business is conducted a written license therefor, etc. No person shall procure, transport or use any explosives without first obtaining a written permit therefor signed by the town clerk or select- man of the town where the same is to be used or kept for sale. Such license shall specify the amount and purpose for which it is intended. Licenses renewable annually. License fee $5.00. The selectman and town clerks are delegated to issue licenses for the storage and keeping of explosives within their jurisdiction. Hartford. Regulations cover transportation and storage within the city limits. Require that application be made to the Board of Fire Com- missioners, and license issued by them, for the keeping, storage or use in the city. Limits the amount that may be stored. Chief of the Fire Department to be delegated to seize explosives unlawfully had or kept in the city. FEDERAL REGULATION OF EXPLOSIVES 447 DELAWARE Law enacted March 16, 1863, forbids loading of gunpowder into cars within 100 yards of any regular railroad track used in carrying pas- sengers. No State laws regulating the manufacture, storing and keeping of explosives. Wilmington. Limits the amount that may be had, kept or brought into the city and requires a license issued by the Mayor. FLORIDA No State legislation on this subject. Jacksonville. Prohibits the keeping or bringing within the city certain high explosives, and limits the amount of gunpowder that may be kept within the city. Ordinance requires that the inspector be notified and his consent obtained for the keeping within the city. Miami. Limits the amount of explosives which may be kept within the city limits. Prohibits the use of explosives within the city limits without a permit from the city clerk indorsed by the Mayor. GEORGIA No record of any law other than the Revised Criminal Statutes. Albany. Delegates to the Chief of the Fire Department authority to approve storage, and limits the amount of explosives that may be stored within city limits. Atlanta. Limits the amount that may be stored within the city limits. Requires that any person desiring to sell powder shall petition the Gen- eral Council for a license and obtain such license from the clerk of the Council. License good for one year. IDAHO There is no law other than police regulations regulating the manufac- ture, storage or use of explosives in the State. ILLINOIS Coal mining law regulates to a certain extent the use, keeping and storing of explosives around mines. Illinois has a State Fire Marshal law. Senate Bill No. 57, approved June 15, 1909. Vol. 1, Chapter 38, page 1276, regulates all manufacture, transportation and sale of explosives. Galena. Limits the amount that may be stored within the city limits. Springfield. Requires a permit to keep, sell, give away or have explo- sives within the city, to be issued by the City Council and signed by the Mayor and clerk. Permit limits the amount that may be had or kept within the city. Makes it a penalty to conceal or falsely mark explosives. INDIANA It is unlawful to store explosives in any quantity greater than 100 pounds within the limits of any municipal corporation or within 40 rods 448 PROCEEDINGS OF AMERICAN MINING CONGRESS of any occupied dwelling house or public building without having obtained in writing the consent of the adjacent land owners. Evansville. Prohibits the storage of or keeping of explosives within the city limits. Indianapolis. Limits the amount of explosives that may be kept within the city limits. Delegates authority to the Chief Fire Engineer to insti- tute search when it is suspected explosives are kept in violation of city ordinance. IOWA No record of any State laws regulating the manufacture, storage or transportation of explosives. Iowa has a State Fire Marshal's law delegating the Fire Marshal to investigate explosions as a result of fires. Revised Statutes of Iowa delegate authority to cities and towns to make regulations governing the keeping, storing, etc., of explosives. Des Moines. Ordinance limits the quantity of explosives which may be kept in the city. Designates the character of magazine and provides penalty for violation. The marshal is delegated to enforce the ordinance. Fort Dodge. Ordinance limits the amount of explosives which may be had, kept or stored within the city limits. KANSAS Kansas Mining Laws regulate the storage, handling, etc., of explosives. Topeka. House Bill 217, Law of 1913. Pittsburgh. Have local ordinance regulating the transportation and storage of explosives within the city limits. KENTUCKY Law of August 8, 1916, includes Table of Distances for 50 to 10,000 pounds, identical with American Table of Distances. Kentucky has Fire Marshal Act, though the authority of the Fire Marshal is somewhat limited. Louisville. Has an ordinance limiting the amount of explosives that may be had or kept within the city limits, and prohibits the manufacture within the city limits; requires a license to store or sell. LOUISIANA No State regulations concerning the manufacture, storage and trans- portation of explosives. The penal code delegates authority to cities, towns, etc., to make necessary police regulations. New Orleans. Limits the amount which may be stored to 25 pounds; also the amount which may be transported within the city limits to 1,250 pounds. Requires permission of the police jury for the establishment of magazines and storage of explosives. License necessary to transport within city. Shreveport. Limits the amount of explosives that may be had, kept, stored or transported within the city limits, and requires a permit or license from the City Council. FEDERAL REGULATION OF EXPLOSIVES 449 MAINE No State regulations concerning the manufacture, storage and trans- portation of explosives. MARYLAND Baltimore. Has complete regulations prohibiting the manufacture and regulating the transportation, storage, sale and use of explosives within the city limits; permits or licenses are issued by the City Engineer. MASSACHUSETTS Law of January, 1909, contains several tables of distances covering quantities up to 100,000 pounds, and the distances vary according to the different conditions to be met, but as a rule are greater than those recom- mended in the American Table of Distances. MICHIGAN Has State Fire Marshal law. Detroit. Ordinance prohibiting bringing within the city limits explo- sives as defined in the act, but does not interfere with interstate com- merce by common carrier. Saginaw. Prohibits the manufacture and limits the amount of explo- sives that may be stored within the city. Permission of the Common Council and a license necessary, subject to the approval of the Chief of the Fire Department. MINNESOTA Has a Fire Marshal's act. Fire Marshal is delegated to make rules covering the storage, sale and use of combustibles and explosives. Section 727, Council Powers Ordinances. The village Council shall be composed of five members, of whom three shall be a quorum; and shall have power to adopt, amend or repeal all such ordinances, rules and by-laws as it shall deem expedient for the following reasons: Fire prevention, to regulate the storage of gunpowder and other dangerous materials. Section 4891, Chapter 97. Keeping gunpowder unlawful death re- sulting. Every person who shall make or keep gunpowder or other explosive substances in a city or village in any quantity or manner prohibited by law or by the ordinance of such municipality, if any explosion thereof shall occur, whereby the death of a human being is occasioned, shall be guilty of manslaughter in the second degree. St. Paul. No person shall keep, sell, give away any explosives within the city without first obtaining from the Common Council or city clerk permission to do so. The amount that may be kept is limited to 25 pounds. Minneapolis. Limits the amount of explosives which may be had or kept within the city limits. No designated official for enforcement of this ordinance. 450 PROCEEDINGS OF AMERICAN MINING CONGRESS Eveleth. Limits the amount of explosives that may be had or kept within the city limits. Permit necessary. Duluth. Requires a permit issued by the Board of Fire Commissioners for having, keeping or use of explosives within the city limits. Quantity permissible limited. Hibbing. Prohibits the keeping of explosives within the city without a permit issued by the village Council, and limits the amount which may be kept within the city limits. Nashwauk. Delegates authority to the Fire Warden to make such changes or methods in keeping or storing explosives as public safety requires. Virginia. Requires written permit from the Chief of the Fire Depart- ment to keep explosives in quantities greater than 5 pounds within the city limits. MISSISSIPPI No record of any law regulating the manufacture, sale, storage, etc., of explosives. Penal Code covers unlawful use or possession of explo- sives, false or deceptive marking, etc. Jackson. Limits the amount of gunpowder and explosives to 50 pounds which may be kept within the city limits. Requires that any per- son, firm or corporation desiring to sell or store explosives obtain a permit from the Chief of the Fire Department. MISSOURI St. Louis. Has an ordinance specifying quantity of explosives that may be kept within the city limits, requiring that sign be displayed, how carried on streets, time within which it may be kept, penalty for bring- ing in concealed explosives, warrants may be issued, penalty for violating ordinances. Fire Marshal is given authority to enforce ordinance. St. Joseph. Has an ordinance limiting the amount that may be had or kept within the city and has penalty for violation of ordinance, and delegates authority to the Chief of Police for enforcement. Springfield. Has an ordinance limiting the amount that may be had, kept or stored within the city limits. No one delegated to enforce it. Kansas City. Has an ordinance regulating the amount that may be had, kept or stored within the city. The Chief of the Fire Department is delegated to issue license or permit and enforce the ordinance. Aurora and other cities in this district of Southwestern Missouri have ordinances regulating the storage and sale of explosives within city limits. License necessary in each city. MONTANA Suggested State law compiled by Institute of Makers of Explosives containing tables of quantity and distances was adopted February 27, 1917. NEBRASKA No record of any modern law. Omaha. Has an ordinance prohibiting the manufacture, having or FEDERAL REGULATION OF EXPLOSIVES 451 keeping of explosives within the city limits without a license. License issued by the Chief Engineer of the Fire Department. NEVADA Has no modern explosives legislation. The Criminal Code applicable to unlawful manufacture, possession or use of explosives. Police regula- tions in cities cover local conditions. NEW HAMPSHIRE No record of any modern law. NEW JERSEY Has modern law regulating storage as well as explosive plant opera- tion. Law of April 27, 1911, makes 500,000 pounds the maximum quantity which may be stored in any factory building or magazine, and the minimum distances prescribed for lesser quantities are practically the same as those suggested by the Institute of Makers of Explosives. Law administered by Commissioner of Labor. Statutes delegate power to counties and boroughs to regulate or prohibit the manufacture, sale, storage, keeping or having of explosives within village or borough limits. Jersey City. Has complete, comprehensive explosive regulations gov- erning transportation, sale, storage and use of explosives. License and permit necessary. Application for license and permit to be made to Inspector of Combustibles and Fire Risks. Hoboken. Has ordinance regulating the storage, sale, etc., of explo- sives. Requires a permit issued by the Chief Engineer of the Fire Depart- ment. Newark. Has an ordinance regulating the manufacture, storage, sale, transportation, use and disposition of explosives. Requires a permit issued by the Inspector of Combustibles. Passaic. Has an ordinance, that no person shall, without permission from the City Council first obtained, store or keep or permit to be stored or kept within the limits of Passaic any explosives or spontaneously com- bustible materials in quantities greater than 10 pounds. Phillipsburg. Prohibits the manufacture, keeping or storing of explo- sives within the city limits. NEW MEXICO No recent legislation relative to the manufacture, storing, keeping, etc., of explosives. State Code delegates authority to cities to enact necessary police regulations for the manufacture, sale, storage, keeping, transportation or use of explosives. NEW YORK Law of April 7, 1915, limits quantity of explosives which may be stored to 300,000 pounds, and the distance prescribed for lesser amounts con- forms with the American Table of Distances. 452 PROCEEDINGS OF AMERICAN MINING CONGRESS Explosives used by farmers for agricultural purposes are exempt under this law, unless the Governor by proclamation under Section 235 of this act desires to include them. Under the explosives law municipalities may promulgate more strin- gent regulations, but may not enforce or promulgate less stringent regulations than required by State law. New York City and the Borough of Manhattan have complete explo- sive and combustible regulations under the jurisdiction of the Fire Com- missioner, to whom application must be made for a license and permit to sell, have, keep, transport, store, use or manufacture. Buffalo. Has explosives regulations. Requires an application for a license to have, keep, sell, store, transport or use, to be made to the Chief Engineer of the Fire Department, who is delegated to issue such license. Yonkers. Has complete fire and combustible regulations. Application must be made to the Bureau of Combustibles for a license or permit to manufacture, sell, have, keep, store, use or transport explosives. Albany. Has regulations limiting the amount that may be had, kept, stored or transported, and requires that application for license be made to the Commissioner of Public Safety. NORTH CAROLINA Chapter 81, Section 3817. Dynamite. "Selling without a license. If any dealer or any person shall sell or keep for sale any dynamite, bombs, or other combustibles of a like nature, without first having obtained from the Board of Commissioners of the county where such person or dealer resides a license for that pur- pose, he shall be guilty of a misdemeanor." Section 3794. "If any person shall fire off, 'explode or cause to be fired off or exploded, except for mechanical purposes, in a legitimate business, any dynamite, bombs or other explosives, he shall be guilty of a misdemeanor." NORTH DAKOTA No State law regulating the manufacture, storage, sale and disposition of explosives. OHIO Has a State law limiting the amount that may be stored within city limits and the amounts that may be stored within certain distances beyond city limits. Requires application for a magazine and the procuring of a certificate. Law is administered by Industrial Commission under the jurisdiction of the chief inspector of workshops, factories and explosives, office Columbus. Law of May 10, 1919, contains table of quantity and distances suggested by the Institute of Makers of Explosives. Columbus. Ordinance requires keeping of a record. Cincinnati. Ordinance requires license for magazines. Cleveland. Ordinance requires application to be made to the Chief of the Fire Department. FEDERAL REGULATION OF EXPLOSIVES 453 OKLAHOMA Ordinance regulates the location of magazines within the State. Appli- cation must be made to and certificate obtained from Chief Mine Inspector. Oklahoma City. Has an ordinance regulating the storage and sale within the city and requires that the marshal be notified. A few other cities in Oklahoma have explosives regulations limiting the amount that may be stored or kept in the city, but have no very com- plete machinery to enforce the law. OREGON There is no record of any law regulating the manufacture, storage, sale, handling, disposition, etc., of explosives within the State. Portland. Has an ordinance delegating authority to the harbor master with reference to the loading, unloading, or keeping of explosives along the city water front. Prohibits the manufacture of explosives within the city limits and limits the amount of explosives that may be had or kept within the city. Grants Pass. Has an ordinance regulating the storage and keeping of explosives within the city limits, and delegates authority to City Mar- shal or any policeman to enforce it. PENNSYLVANIA No record of any explosives law regulating the manufacture, storage, transportation, etc., of explosives. The State Industrial Board has juris- diction over inter-plant risks. A majority of the boroughs in which explosives are used have ordinances enforced by the chief burgess or town clerk, to whom application should be made and license obtained. Philadelphia. Complete regulations. Application to be made to and license obtained from the Fire Marshal. Pittsburgh. Application to be made to and license obtained from the Inspector of Explosives. Eastern. Application to be made to and license obtained from the Building Inspector. The Chief of the Bureau of Mines has certain delegated authority with reference to explosives stored, handled and used around mines in the State. Pennsylvania Criminal Code covers almost every possible unlaw- ful act that may be committed with explosives. RHODE ISLAND No record of any explosives law relating to the manufacture, sale, storage and use of explosives. Very few explosives used in the State. In the State the town clerk or selectmen are designated to issue license or permit. SOUTH CAROLINA The Railroad Commission of South Carolina issued circular prescribing Interstate Commerce Commission Regulations for intrastate shipments of explosives and other dangerous articles. 454 PROCEEDINGS OF AMERICAN MINING CONGRESS SOUTH DAKOTA No record of any law regulating the manufacture, storage, sale, etc., other than the requirement of keeping a record of sale and that the pur- chaser must be personally known to or properly introduced to the vendor. TENNESSEE No record of any modern law regulating the manufacture, storage, dis- position or sale of explosives. Nashville. Has an ordinance regulating the storage and sale of explo- sives within the city limits. No specific authority delegated for enforce- ment. Chattanooga. Has an ordinance regulating the manufacture, storage, sale, etc., within the city. Application for a license to be made to Com- missioner of Fire and Police and a permit obtained. Jellicoe. Has an ordinance regulating the storage of explosives. No specific authority delegated for enforcement. Knoxville. Has an ordinance governing the sale of explosives. Re- quires that application be made to and license obtained from recorder of city. Memphis. Has an ordinance regulating the storage within the city. Authority for enforcement delegated to Chief of Police and Wharf- master. TEXAS No record of any modern law regulating the manufacture, storage, sale, etc., of explosives. Circular issued by the Railroad Commission of Texas adopting the Interstate Commerce Commission Regulations for the control of railroads and other common carriers doing business in the State of Texas. San Antonio. Has an ordinance regulating the transportation and storage of explosives in the city. Authority delegated to the City Mar- shal. UTAH No record of any modern law regulating the manufacture, transporta- tion, storage, sale or disposition of explosives. Criminal Code covers unlawful use or possession. Ogden. Has an ordinance regulating storage, etc., in the city. Applica- tion made and license issued by City Council. VERMONT No record of any modern law regulating the manufacture, storage, sale, disposition, use, etc., of explosives. Criminal Code applicable to unlawful use or possession. VIRGINIA No record of any modern State law regulating the manufacture, stor- age, sale, disposition or use of explosives. Interstate Commerce Com- mission Regulations for the transportation of explosives govern and FEDERAL REGULATION OF EXPLOSIVES 455 are binding on all common carriers engaged in interstate commerce. Authority delegated to cities, towns and villages to make necessary police regulations. Richmond. Has modern ordinance. Application made to and license obtained from Chief Engineer of the Fire Department. Clifton Forge. Has ordinance limiting amount of storage. No specific authority delegated for enforcement. WASHINGTON There is no record of any modern law regulating the manufacture, transportation, storage, sale and disposition of explosives. Criminal Code applicable to unlawful use. State mining laws incompletely apply to storing explosives at mines. Seattle. Has city and harbor regulations covering transportation and storage within city. Harbor regulations administered by port warden, to whom application should be made and from whom license is obtained. Within city limits application should be made to Chief Engineer of the Fire Department and license obtained from him. WEST VIRGINIA No record of any modern, up-to-date explosives law regulating the manufacture, storage, sale, disposition, use, etc., of explosives. State Mining Code partially applicable to use of explosives around mines. A paragraph requires magazines to be located 300 feet from any mine opening or building used or occupied by any person or persons. Charleston. Has ordinance regulating the amount that may be trans- ported or stored within the city. Application made to and license obtained from Mayor or city clerk. WISCONSIN Fire Marshal act delegates authority to the State Fire Marshal to make rules and regulations covering the storage, sale and use of explo- sives within city limits. So far State Fire Marshal has only limited the amount that may be stored in cities, and requires an application to be made to and license obtained from the city and town clerk, Chief or Chief Engineer of the Fire Department. WYOMING Consent for the storage of more than 50 pounds of explosives within a specified distance must be obtained from the Board of County Com- missioners. PHILIPPINE ISLANDS Storage under military regulations in Government magazines. License or permit necessary for withdrawal or disposition. PORTO RICO Spanish explosives regulation still in effect. Permit necessary for the sale or use of explosives. 456 PROCEEDINGS OF AMERICAN MINING CONGRESS APPENDIX II REPORT OF MAGAZINE INSPECTION Bureau of Mines Explosives Regulation Proprietor or owner of magazine License No Location.. Date of inspection.. ..Files. Shipping station Railroads over which outward shipments are, or may be made Manufacturer of material stored . . . _ .Watchman fDay__ 1 Night. Material (construction) . Repair Dimensions Location of U. S. signs. Relative location nearest railroad tracks, mine openings, dwellings, etc (See Table of Distances, and if within prescribed limits, report relative intervening ground, etc.) CONTENTS. SUPERVISION OF MAGAZINE. Note. Violations checked (\) have been found on this inspection. 1 . Quantity and kind of explosives stored Floor of magazine is not clean Magazine keeper is not shipping out old stocks first _ 2. Length of storage of oldest material on Open packages of ex- plosives are kept in magazine Explosives are not carefully handled or stored Magazine is not in- spected at regular intervals by care- taker Loose tools are kept in magazine 3. (a) Do boxes show signs of exudation, or packages leakage of contents? to--- (ft) (c) ... (a) Magazine rules are not posted (6) Teamsters are not provided with rules (a).... (6)-... Empty dynamite boxes are not de- stroyed (6) Do cartridges? _ Explosives are packed or repacked in or Blasting caps are stored with high ex- (c) Give brand and date marks of such packages Condemned explosives are piled with salable stock Oil lamps or lanterns are used in maga- zines 4. Protection against entrance: (a) Condition and (a) . -. (6) Type and loca- tion of locks (6) (c) Type and loca- tion of hinges (c) _ _. (d) Hasps properly secured?.-. W) -- U. S. Explosives Inspector. FEDERAL REGULATION OF EXPLOSIVES 457 Types of Magazines Portable box magazine may be either of the following types, and in any case should be locked with one of the below-listed approved padlocks with steel shackles: Eagle bronze padlock No. 04186-S. Eagle galvanized steel padlock No. 4378-H. Yale & Towne bronze padlocks Nos. 840 and 850 (!%" and 2"). First, a box made of 2" hardwood, dressed on the inside; all fastenings, such as hinges, hasps and handles, to be put on with bolts having nuts on the inside of box and so countersunk in the wood that no metal pro- trudes. The outside of the box to be covered with No. 14 flat iron, which shall cover the fastenings and bolts of the hinges and hasps. The hasp and shackle must be of extra strong construction. It is recommended that casters be placed under the box in order to facilitate removal in case of fire. Second, portable steel boxes, such as those manufactured by Littleford Brothers, Cincinnati, Ohio, or any other make of equal quality or strength, to be fastened by one of the above-mentioned padlocks. The quantity of explosives which may be stored within the corporated limits of any city or town will be governed by the ordinances of such city or town or the State law. Where no ordinances or law exists, not over fifty (50) pounds of explosives should be stored within said limits; provided that greater amounts than fifty (50) pounds may be so stored when the location of the magazine complies with the American Table of Distances. (A.) This magazine is suitable for storage of black, sporting and smokeless powders only. Your magazine should fulfill in the following details the recommendations of the Bureau of Mines standard for this type and be located in conformity with the American Table of Distances. 1. Balloon Type Outside walls should be of %" dressed stock, laid diagonally over proper studding, covered in turn by 26-gauge galvanized flat iron. Inner surface should be of 7/8" x 6" dressed boards spaced 6" apart. 2. Floors should be blind-nailed or with countersunk heads, and should have at least a 2" air space along walls to afford ventilation. 3. No ceiling necessary. 4. Roof should be of 7/8" T. & G. or shiplap boards overlaid with 26-gauge corrugated galvanized iron. 5. Ventilators should be of either the Globe or Star type on gable roofs, or of a dormer type with louvres or "Venetian blinds," covered on the inside by 14 mesh No. 21 wire screen. 6. Doors should be of two thicknesses of %" dressed boards, laid diagonally, covered with 22-gauge galvanized flat iron. Hinges, three in number, 2"x%" strap type, running across the door and fastened to it with 1 /&"x2}&" bolts with nuts on the inside. Ends of hinge pins to be "burred" over nuts or washers. Locks to be either the Du Pont standard mortise type or the Yale & Towne Special No. 7 Magazine rim lock. Locks to be bolted through plate and wood with nuts on the inside. If Yale & Towne lock is used, specify thickness of door when ordering. 458 PROCEEDINGS OF AMERICAN MINING CONGRESS (B.) This magazine is suitable for storage of any explosive; but caps, detonators, etc., should not be kept with dynamite, powder, etc. Your magazine should fulfill in the following details the recommendations of the Bureau of Mines standard for this type, and be located in conformity with the American Table of Distances. 1. Sand Cement construction to be not stronger than one part Port- land cement to six parts sand, to be poured between the inner and outer sheathing of either %" of T. & G. or shiplap boards. Thickness of cement wall to be not less than 4". Outside of building to be sheathed with either 26-gauge galvanized flat or corrugated iron. If the outside sheathing of wood is to be removed, the 26-gauge iron is not necessary, but the thickness of cement wall should be increased to not less than 6". 2. Floors should be blind-nailed or with countersunk heads, and should have at least a 2" space along the walls to aiford ventilation. 3. Ceilings should be of %" T. & G. or shiplap boards of good quality nailed over joists, then covered with builder's or tar paper on which should be spread 4" of clean sand. A 2" space should be left all around near the walls for ventilation. 4. Roof should be of % " T. & G. or shiplap boards overlaid with 26-gauge corrugated galvanized iron. 5. Ventilators should be of either the Globe or Star type for gable roofs or of a dormer type with louvres or "Venetian blinds," covered on the inside by 14 mesh No. 21 wire screen. 6. Doors on unbarricaded magazines should be of three layers of %" hardwood boards, sheathed on the outside with not less than %" wrought iron or steel plate. Hinges to be of 3" x %" strap type, three in number, running across the door, bolted through plate and wood with %" x 4" bolts having washers and nuts on the inside. End of hinge pins to be "burred" over nut and washer. Locks to be either the Du Pont standard mortise type or the Yale & Towne Special No. 7 Magazine rim type. Locks to be bolted through plate and wood with nuts on the inside. If a Yale & Towne lock is used, specify the thickness of door when ordering. Doors for a barricaded magazine should consist of two layers of boards diagonally placed, covered with 22-gauge galvanized flat iron. Hinges same as above, only 2"x%", and fastened by 1 /"x2 1 /" bolts. Same choice of locks. The barricade must extend so that a bullet fired from any direction will not strike the door. (C.) This magazine is suitable for storage of any explosive; but caps, detonators, etc., should not be kept with dynamite, powder, etc. Your magazine should fulfill in the following details the recommendations of the Bureau of Mines standard for this type, and be located in conformity with the American Table of Distances. 1. Brick Magazine Brick should be of a medium, soft variety, laid in cement mortar containing not over 25% of lime. Foundations should run below frost line; the walls above ground should be 9" thick. Maxi- mum height of foundation above ground not over 2' 6" under door, or less than 1' at any point. Interior wall should have %"x6" dressed lattice lining boards spaced 6" apart and fastened to 2 x 2 studs, nails countersunk. FEDERAL REGULATION OF EXPLOSIVES 459 2. Floors should be blind-nailed or with countersunk heads, and should have at least a 2" space along the walls to afford ventilation. 3. Ceilings should be of %" T. & G. or shiplap boards of good quality nailed over joists, then covered with builder's or tar paper on which should be spread 4" of clean sand. A 2" space should be left all around near the walls for ventilation. 4. Roof should be of %" T. & G. or shiplap boards overlaid with 26-gauge corrugated galvanized iron. 5. Ventilators should be of either the Globe or Star type for gable roofs or of a dormer type with louvres or "Venetian blinds," covered on the inside by 14 mesh No. 21 wire screen. 6. Doors on unbarricaded magazines should be of three layers of %" hardwood boards, sheathed on the outside with not less than %" wrought iron or steel plate. Hinges to be of 3" x %" strap type, three in num- ber, running across the door, bolted through plate and wood with Vz" x 4" bolts having washers and nuts on the inside. End of hinge pins to be "burred" over nut and washer. Locks to be either the Du Pont standard mortise type or the Yale & Towne Special No. 7 Magazine rim type. Locks to be bolted through plate and wood with nuts on the inside. If a Yale & Towne lock is used, specify the thickness of door when ordering. Doors for a barricaded magazine should consist of two layers of boards diagonally placed, covered with 22-gauge galvanized flat iron. Hinges same as above, only 2"x%", and fastened by %"x2%" bolts. Same choice of locks. The barricade must extend so that a bullet fired from any direction will not strike the door. (D.) This magazine is suitable for storage of any explosive; but caps, detonators, etc., should not be kept with dynamite, powder, etc. Your magazine should fulfill in the following details the recommendations of the Bureau of Mines standard for this type, and be located in conformity with the American Table of Distances. 1. Sand Filled Type Walls should be sheathed inside and outside with %" T. & G. or shiplap boards of good quality, allowing at least a 6" space between to be filled to the eaves with clean, sharp, coarse sand, well tamped. (Gravel, loam or crushed stone are not recommended.) The outside should be covered with 26-gauge galvanized flat iron to pro- tect against fire or theft. Where magazines are surrounded on all sides with a barricade of the type approved by the Bureau of Mines, the thickness of the walls may be reduced and the sand fill omitted. 2. Floors should be blind-nailed or with countersunk heads, and should have at least a 2" space along the walls to afford ventilation. 3. Ceilings should be of %" T. & G. or shiplap boards of good quality nailed over joists, then covered with builder's or tar paper on which should be spread 4" of clean sand. A 2" space should be left all around near the walls for ventilation. 4. Roof should be of %" T. & G. or shiplap boards overlaid with 26-gauge corrugated galvanized iron. 5. Ventilators should be of either the Globe or Star type for gable roofs or of a dormer type with louvres or "Venetian blinds," covered on the inside by 14 mesh No. 21 wire screen. 460 PROCEEDINGS OF AMERICAN MINING CONGRESS 6. Doors on unbarricaded magazines should be of three layers of %" hardwood boards, sheathed on the outside with not less than %" wrought iron or steel plate. Hinges to be of 3" x % " strap type, three in num- ber, running across the door, bolted through plate and wood with W x 4" bolts having washers and nuts on the inside. End of hinge pins to be "burred" over nut and washer. Locks to be either the Du Pont standard mortise type or the Yale & Towne Special No. 7 Magazine rim type. Locks to be bolted through plate and wood with nuts on the inside. If a Yale & Towne lock is used, specify the thickness of door when ordering. Doors for a barricaded magazine should consist of two layers of boards diagonally placed, covered with 22-gauge galvanized flat iron. Hinges same as above, only 2"x%", and fastened by %"x2 1 /&" bolts. Same choice of locks. The barricade must extend so that a bullet fired from any direction will not strike the door. American Table of Distances It is recommended that all storage places for explosives comply with the following: Pounds of Explosives Inhabited Buildings Barricaded* (Feet) Public Railway Barricaded* (Feet) Public Highway Barricaded* (Feet) Pounds of Explosives Inhabited Buildings Barricaded* (Feet) Public Railway Barricaded* (Feet) Pub'ic Highway Barricaded (Feet) 50 120 70 35 50,000 1,460 875 440 100 180 110 55 55,000 1,515 910 455 200 260 155 75 60,000 1,565 940 470 300 320 190 95 65,000 1,610 970 485 400 360 215 110 70,000 1,655 995 500 500 400 240 120 75,000 1,695 1,020 510 600 430 260 130 80,000 1,730 1,040 520 700 460 275 140 85,000 1,760 1,060 530 800 490 295 150 90,000 1,790 1,075 540 900 510 305 155 95,000 1,815 1,090 545 1,000 530 320 160 100,000 1,835 1,100 550 1,500 600 360 180 125,000 1,900 1,140 570 2,000 650 390 195 150,000 1,965 1,180 590 3,000 710 425 210 175,000 2,030 1,220 610 4,000 750 450 225 200,000 2,095 1,260 630 5,000 780 470 235 225,000 2,155 1,295 650 6,000 805 485 245 250,000 2,215 1,330 670 7,000 830 500 250 275,000 2,275 1,365 690 8,000 850 510 255 300,000 2,335 1,400 705 9,000 870 520 260 325,000 2,390 1,435 720 10,000 890 535 265 350,000 2,445 1,470 735 15,000 975 585 290 375,000 2,500 1,500 750 20,000 1,055 635 315 400,000 2,555 1,530 765 25,000 1,130 680 340 425,000 2,605 1,560 780 30,000 1,205 725 360 450,000 2,655 1,590 795 35,000 1,275 765 380 475,000 2,705 1,620 810 40,000 1,340 805 400 500,000 2,755 1,650 825 45,000 1,400 840 420 * Barricaded, as here used, signifies that the building containing explosives is screened from other buildings, railways or from highways by either natural or artificial barriers. Where such bar- riers do not exist, the distances should be doubled. Important Notice An artificial barrier shall be held to mean an artificial mound or properly revetted wall of earth of a minimum thickness of not less than 3 feet of such height that any straight line drawn from the top of any side wall of the building containing explosives to any part of the FEDERAL REGULATION OF EXPLOSIVES 461 building to be protected will pass through such intervening artificial barrier, and any straight line drawn from the top of any side wall of the building containing explosives to any point 12 feet above the center of a railway will pass through such intervening artificial barrier. The foregoing definition as to height shall also apply to any natural barrier. Far quantities not given in the above table use distances shown for nearest tabulated quantity; or if extreme accuracy is desired, take pro- portionate figures. 462 PROCEEDINGS OF AMERICAN MINING CONGRESS THE MODERN APPLICATION OF TRANSMISSION, ELEVATOR AND CONVEYOR BELTING Address by J. W. FERGUSON, St. Louis, Mo. From the very beginning of the manufacturing era, belting has played a most important part in the world's production. In the same manner as man first clothed himself with the skins of animals, it was natural that the tanned hides of cattle should be used for belting and leather belting was universally em- ployed for the transmission of power during the initial devel- opment of manufacturing. The large production of cotton in the United States and suc- cessive improvements in carding, spinning and weaving this into fabric led to experiments with belts made up of a number of plies of such cotton fabric, which were stitched together lengthwise of the belt in a very similar manner to the cotton stitched belting of today. About the middle of the last century, the discovery of the vulcanizing process by Charles Goodyear made the use of rubber commercially possible and rubber belts began to be used in manufacturing and mining work. The early rubber belts were of low grade, as would be ex- pected, the art of manufacture then being in its infancy. Such foelts were built up from cotton duck, spread with rubber com- pound and generally stitched together, as there was little adhe- sion between the plies of fabric. A rubber cover was then applied, completely covering the belt body, with the end in view of preventing moisture from penetrating to the duck, causing mildew and rot. The modern result is the friction surface rubber belt, in which is overcome tHe inherent defects of the earlier construc- tions, with the added advantages of absolute water-proofness, greater flexibility and a belt surface which gives maximum f rictional resistance on the pulley face. Briefly describing the manufacture, the cotton duck is thor- oughly impregnated with high-grade rubber, which is forced through and through the fabric, with the result that each cotton THE MODERN APPLICATION OF TRANSMISSION 463 strand is coated with rubber so that the duck becomes abso- lutely water-proof. It is worthy of note in this connection that thorough impreg- nation of the duck can be obtained only by the use of high- grade rubber compounds, otherwise the permeation of the rubber is uneven and does not result in completely insulating the fabric against moisture, which is especially necessary for mining work. The belt is then built up in the width and ply required and cured under heavy hydraulic pressure, while it is at the same time stretched. Since it is made of water-proof material, there is no outside rubber cover applied as in the earlier construction.. There is a coating of rubber on the belt face, it is true, but this is only the rubber which has been forced through the duck in the frictioning process and this frictioned belt surface clings to the pulley face with an elastic grip. No stitching is used to hold the plies together, for, after curing the elastic bond of what is in effect thousands of rubber rivets, passing through the interstices of the duck, prevents ply separation of a properly applied belt and at the same time permits movement of the plies, relative to each other, which is demanded by the stretching of the outer plies and the com- pression of the inner ones in passing around the pulleys. Belts derive their power to transmit motion from the fric- tional resistance between the surface of the belt and the pulley and from nothing else. Hence, the very high coefficient of friction of this type belt on the pulley is of great importance. This quality, in connection with absolute uniformity of con- struction and strength throughout the belt, also immunity to moisture and temperature changes, makes the field for high- grade friction surface belting practically universal. Expense of Belting Though the belting account represents a very considerable percentage of the operating expense in manufacturing plants of all kinds, it is unfortunately true that relatively little atten- tion has been given to this important subject by the users. In figuring the total expense of belting and the manufac- turing cost chargeable to this account, by far the largest item is the time lost while belts are being replaced and repaired. In 464 PROCEEDINGS OF AMERICAN MINING CONGRESS other words, low first cost does not mean low final or unit cost and proper application of belting is most important if shut- downs and delays are to be avoided. When a belt is strained into place over two pulleys it has a certain initial tension which with the pulleys at rest is uniform throughout the belt. At the moment the driving pulley begins to move the belt is stretched on the driving side and the tension increased, while the other side is shortened and its tension decreased. This process goes on until the force tending to rotate the driven pulley is sufficient to overcome its resistance to motion. Subject to the limiting value of the ratio of tensions, the driven pulley rotates and in the case of a uniform load the condition of the belt is permanent from this moment. The effective or driving force accomplishing this result is the differ- ence between the tensions in the tight and loose sides. All formulas for horsepower which belting will transmit are based on this condition and take into consideration the tension in the driving side, the coefficient of friction between the belt and the pulley, and the tensile strength of the belt, which must be such that the working tension is only a small fraction of the ultimate tensile strength. There is a confusing abundance of formulas and charts cov- ering transmission belting from which widely different results can be obtained, but the main principles are now quite well established, largely from the experiments of Lewis, Taylor and Barth. These experiments upset previously accepted ideas and went to show that various conditions which had been supposed to remain constant were really variable and changed with belt speed, slip, etc. While it is impossible to make an exact mathematical analysis of the action of belting, due to the variables which enter into consideration, for all practical purposes, the subject has been thoroughly worked out. Selecting the Belt Perhaps the most important factor in determining the right belt for a drive is the required horsepower. It is necessary to figure on the maximum power which the belt will have to handle. This is a very different amount than the rated horse- power of an engine, motor or machine. The starting load on a THE MODERN APPLICATION OF TRANSMISSION 465 motor is often 100 per cent, in excess of its rating. Induction motors will carry 50 per cent, overload for hours without over- heating. A line shaft mounted in babbitted bearings has a starting load which is several times its normal running load. Ball mills and all types of reduction mills in which a heavy weight must be started from rest into motion are also examples of heavy starting loads. An air compressor drive illustrates a variable load. The power required increases at the end of the compression stroke. The maximum power for which a compressor must be belted is about 50 per cent, more than the average load. In the Joplin mining district recently a series of electric power tests were made on the various concentrating mill drives crushers, rolls, jigs, elevators, etc. In each case a motor was belted to the driven pulley and a recording watt meter used to measure the power consumption in a ten-hour run. The results showed maximum horsepowers in some cases as high as 150 per cent, in excess of the average load and for the entire mill the maximum load was 20 per cent, in excess of the average. The Hidden Horsepower These are just a few examples of the hidden horsepower requirement which must always be considered in applying the proper belt. The size and speed of the pulleys is the other important factor. Great care must be taken not to use too heavy a belt on a small pulley. If the power cannot be devel- oped with a lighter belt, a wider pulley should be installed so as to use a belt of greater width. Generally speaking, the slower the belt speed the heavier the belt which can safely be used over a given size of pulley. While the horsepower that a belt will transmit is directly proportional to its speed, because of the action of centrifugal force at high speeds, which adds to the tension and decreases the contact on the pulley, a travel of 4,000 feet per minute is about the limit for thoroughly satisfactory service. Manufacturers of machinery, motors, etc., have always shown an inclination to equip their machines with pulleys that are too narrow in face and too small in diameter to allow efficient service from belting. This tendency has been so 466 PROCEEDINGS OF AMERICAN MINING CONGRESS marked that at the International Belting Conference, held at Chicago in September, 1,000 delegates from 36 States unani- mously deplored this condition. It was decided to approach the manufacturers through their various trade organizations, in an endeavor to make them see the wisdom of adopting larger pulley sizes. For the conveying and elevating of materials in mining work rubber belting is almost universally used, as it has conclusively demonstrated its economy. Since belting is the largest item of expense in the operation of such installations, particular atten- tion must be given to this. Conveyor Belts Briefly described, conveyor belting consists of two parts a rubber cover, the purpose of which is to resist the abrasive action of the load, and a body built up of frictioned fabric, which functions in a similar manner to that of a transmission belt, and has the necessary strength to withstand the strains incident to conveying the load. The ideal sought is a cover stock which will last as long as the body of the belt; in other words, a balanced construction resulting in maximum efficiency and lowest possible final cost.. The capacity of a belt conveyor in tons per hour depends in general on the width of the belt, the speed at which it runs, the weight per cubic foot of the material handled and the degree of uniformity of this material. Inclines of not to exceed 20 degrees will not reduce the belt capacity or cause extra wear on the cover due to shifting of the load. The angle of incline should be about 10 degrees less than the angle of repose of the material on the belt. Belt speeds vary from 150 feet per minute to a maximum of about 600 feet, the faster belt speeds being used with wide belts and it is an axiom of belt conveyor practice that the belt should not be run faster than required for the capacity to be handled. It follows, then, that conveyor belts should be fully loaded at all times, and this is necessary for the lowest possible cost per ton handled. It is the amount of material which actually touches the belt which causes wear and the largest cross section of material presents, relatively, the smallest sur- face to the belt. THE MODERN APPLICATION OF TRANSMISSION 467 Wear of conveyor belts is largely due to impact and slipping of the material as it is picked up at the loading point. It is, then, very important in laying out a conveyor system to provide for proper loading. There should be one loading point, where the material is fed to the belt by a loading chute, so designed as to insure a steady flow, in the same direction and at the same speed that the belt travels. Where there is considerable fine material mixed with large lumps, it is desirable to place a -grating in the bottom of the loading chute so that the fines flow through to the belt and form a cushion for the heavy lumps. Next to improper loading, the most common fault found is edge wear, due to failure to keep the conveyor equipment prop- erly lined up. Care in keeping the belt centered will pay big dividends in increased tonnage handled. Elevator belts in mining work are subjected to extremely severe wear and are perhaps the most troublesome item in the belting line for the mill superintendent. Bucket Elevators The capacity of bucket elevators is, of course, determined by the size of buckets, the loading arrangement and the belt speed. A number of factors must be weighed against each other in determining what is best for the particular installation. The number of plies must be sufficient to carry the load with- out excessive stretch. The belt is subjected to destructive wear, especially on the pulley side, owing to particles which are not discharged clear and fall back to be ground between the belt and the pulleys. This leads some users to order elevator belts several plies heavier than otherwise necessary to allow for such wear without weakening the belt beyond the required limit of strength. Care must be taken that too heavy a belt is not used so that the internal friction set up in passing over the pulleys will shorten its life by ply separation. The buckets being rigidly bolted to the belt, it is apparent that in passing over the pulleys a severe strain is placed on the belt, tending to tear out the bolts. A flexible construction is therefore necessary. It is advisable to use strips of old belt about 1% inches wide and of a length equal to the depth of the bucket, between the bucket and the belt. These strips allow water to flow downward between the belt and the buckets, 468 PROCEEDINGS OF AMERICAN MINING CONGRESS washing away much of the grit which would otherwise lodge there, and reducing the cutting action of the back edge of the bucket as it is thrown against the belt in passing over the head pulley. By punching holes through the belt for the bolts the tensile strength is of course materially reduced. An ingenious method of avoiding this decrease in strength is used by one of the large mining companies that is worthy of universal adoption. A punch was made from a piece of bar steel a little larger in diameter than the elevator bolts used. One end was tapered down to a sharp point, while the other end was drilled and tapped to suit the thread on the bolts. A bolt is screwed into the threaded end of the punch, which is then driven through the belt and the punch unscrewed from the bolt. In this way none of the warp threads of the fabric are cut, as they are simply pushed aside to make room for the bolts and the strength of the belt is unimpaired. Speed of Elevators The speed of elevator belts runs from 200 to 500 feet per minute, as required for proper discharge of the material. As low a speed as possible should be used, since high-speed elevator belts may be seriously damaged by buckets catching when pass- ing through the boot. For elevating materials not particularly abrasive, either wet or dry, belts of the friction surface type are found to give the best records. Where the material is very abrasive a tough rubber cover is used, the object being to produce a balanced construction in which the cover withstands the abrasive action, so as to allow the body of the belt to wear out naturally. In either type of belt the body should be of strong, heavy duck and so constructed that it is as flexible as possible. This is accomplished by placing a skim coat of rubber between each of the plies, in addition to the rubber forced through the duck in the f rictioning process. An examination of worn-out ele- vator belts at any mill will clearly show the necessity for this extra flexibility. It will be found that belts in which this fea- ture has not been incorporated have largely failed by cracking across the face on the bucket side and near the back edge of the buckets. This will be true even though the pulleys are of fair THE MODERN APPLICATION OF TRANSMISSION 469 size. Other sections will be capable of much more service ; so that it is apparent the overcoming of this inherent defect must result in considerably lowered tonnage costs, as has been demonstrated where the flexible type belt has been used. All belting of the better grades has merit and every belt in- stallation has an individuality all its own. The problem of getting efficient service from belting is strictly one of proper application, which involves analysis of maximum load, speed, pulley conditions, etc. The main reason for poor service has been that users have been disposed to regard belting as a standard commodity, which can be bought like lumber, but the best belt ever made will not give satisfactory service unless it is suited to the work. The proper application of belting really amounts to about 10 per cent, of scientific knowledge and fully 90 per cent, of analysis and good judgment based upon experience. The progressive manufacturer of belting is fully conversant with what his product will do and really owes a service to his customers in aiding them to obtain the inbuilt service by assist- ing in proper application. A Technical Study One large manufacturer has gone so far along this line as to provide a corps of engineers, trained in the application of belt- ing, who are available to provide this specialized service, in analyzing the belting conditions of complete plants. It is the purpose of these engineers to study the conditions of each belt, so as to specify a belt which will operate most efficiently and at the lowest possible final cost. With the co-operation of the mechanical men of the plant, the analyst is able to work out the difficult application problems and greatly improve conditions. The complete data covering each belt is incorporated in a report with recommendations of what should be used for the best service. One or more copies as may be required are fur- nished the plant officials, who look after the belting so that they have the full information. An incidental advantage of such an intensive study in any plant is the opportunity to standardize sizes of belting, thereby cutting down the investment in stock. 470 PROCEEDINGS OF AMERICAN MINING CONGRESS Many plants have adopted this method of cutting down their belting costs and are following the recommendations of these engineers because they feel that from their experience in this work their recommendations are as accurate as can be obtained and the results have been quite remarkable. Belt Specialist Valuable In any plant which uses much belting there should be one man in charge of belting, pulleys and shafting^ particularly belting. A competent man on this work will save several times his salary. He should keep careful records of all belting, date of application, time lost on machines because of repairs, etc., so that when a belt is finally removed the unit cost of service can be ascertained and by comparison with other records the belt giving the most efficient service adopted as standard. The most practical way of keeping such records is to have a card for each belt in the plant on which one horizontal line provides the complete information on each belt used, affording a means of ready comparison of records. The cards should be of a size to fit standard files, and several manufacturers are furnishing these to their customers. When such a system is in use the true value or final cost cf belting of different types is definitely proven. The subject has been so large for the time available that this paper may have been too general. It will, however, have accomplished its purpose if it has shown you some of the problems and suggested a remedy. LANDS AND MINERAL RESOURCES OF MINNESOTA 471 LANDS AND MINERAL RESOURCES OF THE STATE OF MINNESOTA Address by F. A. WILDES, Superintendent of State Mines The Federal Government gave the State of Minnesota, with- out reservation and with few conditions, some 8,000,000 acres of land. Out of the sale and disposal of some 6,000,000 acres permanent funds amounting to over $38,000,000 have accumu- lated, with a promise that the remaining acres will more than double this sum within the coming generation. The administration of this vast domain is given to the State Auditor with his other numerous duties. The incum- bent is the Hon. J. A. 0. Preus. It is his duty to see that all lands to which the State is entitled by the several acts of Con- gress are selected and certified to the State, to see that no trespass is committed against these lands, to appraise and sell only such land as is fit for agriculture and to lease for minerals and inspect operations under such leases, to estimate, appraise and sell timber and to see that the proceeds are so invested as to yield a reasonable income. A brief history of how the State became possessed of this domain and the method of handling the same may be of interest. The Organic Act of Minnesota passed March 3, 1849, by Congress reserved for application to school purposes Sections 16 and 36 in each township within the boundaries of the new Territory. When opened for sale, many of these sections were found to have been conveyed by the Government, occupied by settlers or otherwise disposed of. The new Territory and the subsequent State were permitted to select lands in other parts of the township in lieu of such lands. In all, the State received from this source approximately 3,000,000 acres, of which there are unsold some 600,000 acres. From the sale of the land, and none can be sold for less than $5 per acre, over $15,000,000 has been received. For the sale of timber over $7,600,000 has been received. Minnesota not being a mineral State at that time, the Federal Government did not reserve minerals. Some 472 PROCEEDINGS OF AMERICAN MINING CONGRESS of the most valuable iron mines in the world have been found on these lands. The income from the minerals on school fund lands to date is upward of $6,500,000, with a known tonnage of iron ore remaining under lease that will add to this more than $30,000,000. The act authorizing the Territory to form a State govern- ment, passed February 26, 1857, confirmed the school land grant, and offered 72 sections of land for the support of a State university, 10 sections for the purpose of completing certain public buildings and the erection of others, and 6 sec- tions for each salt spring, not exceeding a total of 12 springs. By an act of March, 1860, all swamp or overflowed lands within the State were granted to the State by Congress. Under this grant the State has received patents for 4,700,000 acres. From the sale of a portion $6,300,000 has been received, with fully $7,500,000 still due under mineral contracts. Great Educational Fund The University Fund has received from the sale of a part of the lands $1,800,000. There still remains much land, timber and iron ore undisposed of. The tonnage of iron ore under lease on university land is sufficient to add $1,750,000 in royalties. All these funds are kept intact and only the interest is spent. It will be seen that the permanent funds from this land grant have, at present, over $38,000,000, which will be more than doubled within the next 25 or 30 years from leased iron mines alone, to say nothing of the possibilities on unexplored lands that are known to contain some deposits of ore of unknown tonnage and grade. The timber and unsold surface rights will add their share also. Minnesota is one of the few States that has practiced con- servation of her public-owned lands. No land is sold except at public sale after appraisal, and none can be sold for less than the minimum price of $5 per acre. The pine and cer- tain other timber are sold separately and the minerals are all reserved by the State. Much timber was lost to the State in the early days because of the failure of the Legislature to appropriate sufficient funds for looking after the sale and cut- ting of the same. LANDS AND MINERAL RESOURCES OF MINNESOTA 473 Between 1889 and 1907 more than 800 mineral leases were taken out on State lands for the mining of iron ore. Of these some 85 are still in force, having an estimated tonnage of about 168,000,000 tons of merchantable ore and a prospective ton- nage of lower grade ore material of an additional 100,000,000 tons. All this is under lease to be mined within 20 or 30 years at most, and the above funds will receive 25 cents upon each ton. But this is not all. Since the mineral lease law was sus- pended in 1907, exploration work on private fee lands has shown that State lands not under lease are within the mineral zones. These lands will add materially to the present known tonnage as well as to the income, for it is generally conceded that the royalty received by the State under its present leases is too small. Iron ore is the only mineral mined in Minnesota at present, though there is evidence of other minerals, such as copper, gold, etc. Leasing River Beds The State also claims the title to all soil under public meandered rivers and lakes. Several rivers and lakes on the iron ranges are known to contain iron ore in their beds. One of these lake beds has been leased by the State at the rate of 50 cents per ton royalty. From this one lease alone the State will receive a million and a half dollars. The shipment from State-owned mines, of which there are more than a score, run from three to four and three-quarters million tons annually. All operations under the leases are checked by a corps of mining engineers and inspectors to see that all possible areas and grades of ore are taken out and credited to the State. The lease runs for 50 years, has a minimum annual output of 5,000 tons and a reservation of royalty of 25 cents per ton. The lessees covenant to mine the ore in accordance with the requirements of good mining engineering, to refrain from the commission of waste, and to pay all taxes. 474 PROCEEDINGS OF AMERICAN MINING CONGRESS ALASKA, A NATIONAL OPPORTUNITY Address by JOHN A. DAVIS, Governor Alaska Chapter American Mining Congress, Fairbanks, Alaska To many persons the word "Alaska" connotes a small area tucked away in the lower left-hand corner of a map of "The United States and Our Island Possessions/' an area which they visualize as a land of intense cold, of ice, snow and glaciers "Seward's Icebox" and about which they conjure up a picture of an Eskimo sitting on a cake of ice and smiling at grief ; or a picture of gambling and vice rampant; or of trials and hard- ships to be endured for the winning of fabulous riches ; or of virgin gold to be had for the asking. To those who know and love her as she is today, however, she speaks a different lan- guage a various language. She tells of vast areas of forest and of potential farms ; of magnificent scenery ; of warm and glorious summers ; of flowers and shrubbery run riot ; of celery, lettuce, radishes, beets, potatoes, tomatoes and cucumbers to be excelled nowhere else on earth; of law and order, patriotism and thrift, and of almost fabulous riches of mineral wealth no longer to be had by the haphazard seeker with his shovel and gold pan, it is true, but offering stupendous opportunities for systematic mining with modern, up-to-date equipment. A Vast Empire Perhaps no greater slander can be perpetrated by cartog- raphers upon the fair name of Alaska than the customary habit of depicting the Territory upon a greatly reduced scale, tucked away in some convenient corner of the map of the United States. Such a course must inevitably portray a grossly inaccurate impression of the size of the country. Alaska is not the size of Rhode Island. In its area of 590,000 square miles you could lose, not only Rhode Island, but the whole Thirteen Original States as well, with Maine, Vermont, West Virginia, Florida, Alabama, Tennessee and Kentucky thrown in for good measure. Few persons realize that if Alaska were superim- posed upon a map of the United States with its southeastern ALASKA, A NATIONAL OPPORTUNITY 475 point at Savannah, Ga., the westernmost Aleutian Island would fall upon Los Angeles, Cal., and the main bulk of the Territory would entirely cover Wisconsin, Minnesota, Illinois, Iowa and the greater part of Missouri, Kansas and Nebraska. Alaska contains 156,000 square miles of timber land, one-fourth of which is covered with merchantable timber, while that of the remainder will make the finest grade of paper pulp. It has 100,000 square miles of agricultural land, equal to that of Pennsylvania, Maryland, Delaware, New Jersey, Connecticut, Massachusetts and New Hampshire. And Alaska has a coast line of 26,000 miles in length ; greater than the circumference of the earth. In the bays and inlets of this coast is centered a fishing industry that in one season, 1918, packed $50,000,000 worth of salmon. The unexplored and undeveloped regions of the interior abound in fur-bearing animals, the source of another great industry. Alaska is a vast empire. Its very name, in the Indian tongue, from which it was derived, means "The Great Country." Scenic Beauty Even if time would permit an attempt, the richest and most colorful words in the language are utterly inadequate to describe the scenery of Alaska. Mr. E. R. Harrison, who saw the coast of Alaska from his private yacht, exclaims : "There are glaciers and fiords elsewhere, but nowhere on earth is there such an abundance and magnificence of mountain, fiord and glacier scenery." The Malaspina glacier, one of the hundreds of glaciers in Alaska, covers an area one-tenth the entire size of Switzerland. Norwegians and persons who have traveled in that country are outspoken in saying that the Inland Passage among the islands of Southeastern Alaska far outstrips in beauty the famous fiords of Norway. Addison Powell, while a member of the United States Geological Survey, writes : "The scenery of Alaska is finer than Switzerland, the Austrian Tyrol, Venice, Vesuvius and the Bay of Naples." This is literally true and even this comparison with the wonder spots of the world fails to do justice to Alaska. Mount McKinley, or, as the natives call it, Denali, "the Most High," a mountain superim- posed on a perpetually snow-capped mountain range, domi- nates an Alpine landscape for hundreds of miles. Vesuvius 476 PROCEEDINGS OF AMERICAN MINING CONGRESS and Yellowstone Park suffer by comparison with Mt. Katmai and the "Valley of Ten Thousand Smokes." And at sunrise and sunset in the innumerable bays and inlets of the Alaskan coast there are beauties in coloring of sky, land and sea that even Venice or the Bay of Naples cannot duplicate. Well can Mr. Harrison say : "There is one word of advice and caution to be given those intending to visit Alaska for pleasure, for sight-seeing. If you are old, go by all means ; but if you are young, wait. The scenery of Alaska is much grander than any- thing else of the kind in the world, and it is not well to dull one's capacity for enjoyment by seeing the best first." Alaskan Climate To describe the climate of Alaska adequately is just as hard as it would be to describe the varied range along the Atlantic Seaboard for instance, from Key West to the northernmost point of Maine, with the added difficulty that the Alaskan climate is even more diverse. The entire southern and south- eastern coast is profoundly influenced by the warmth of the Japan current, which is deflected to these shores by the long chain of Aleutian Islands. Even in midwinter this region is frequently warmer than Philadelphia or New York. North of the Alaska Range, which encircles the Gulf of Alaska and shuts off the warmth of the Japan current, the winters are cold, it is true, but it is a dry cold that is less keenly felt, perhaps, at 40 degrees below zero than a temperature of only zero in the humid atmosphere of Boston. And as an added compensation the summers are made glorious by long hours of sunlight. For north of the Arctic Circle, which crosses this area, is the land of the midnight sun; as a consequence the greater part of Alaska is bathed in 20, 22 or even 24 hours of continuous sun- shine daily throughout the summer months. Temperatures of 80 and 85 degrees are the usual thing and even 90 or 95 degrees are not uncommon. A "Growing" Climate To the long hours of sunlight may be directly ascribed the profusion and riotous growth of vegetation of every kind. Plants and flowers do not have "union hours" ; and they work "three shifts" under the compelling rays of the midnight sun. ALASKA, A NATIONAL OPPORTUNITY 477 It has truly been said that a list of wild flowers in Alaska would be a list of the beauties of the floral kingdom. Practically all varieties of the temperate zone are to be found here ; many of them, like the wild rose, larger and more fragrant than any place else. As for domesticated flowers, hedges of sweet peas 12 to 14 feet high, climbing nasturtiums that, completely cover Alaskan homes, pansies larger than coffee cups these facts are as difficult to believe for persons who have never been to Alaska as were the facts about Santo Domingo that Columbus and the early explorers brought back to the Old World centuries ago. Agricultural Advancement The agricultural possibilities in a country of such profuse vegetation are naturally enormous. Perhaps the greatest de- velopment along these lines has been made in the broad valleys of the Tanana and Yukon Rivers. The variety of produce that is now being raised there is amazing. Celery, which re- quires a cool moist soil combined with rapid growth, attains a crispness and delicacy that cannot be equaled, and it is to be had on the market earlier than at Boston. Almost every family has a garden supplying lettuce, radishes, beets, turnips and carrots. Cucumbers, tomatoes and melons are grown under glass and attain a size and a flavor that are almost unbelievable. Alaska's cauliflower and cabbage are famous. The Tanana Valley has been self-supporting in the matter of potatoes ever since the discovery that the sandy soil of the hillsides is more favorable for this crop than the rich loamy soil of the river bottoms. Oats, rye, barley and wheat thrive on the alluvial soil, however, and prove that this country will be able to raise all the grain it may need. Nineteenth Century Progress The old days of chaos and disorder incident to the rush of gold-maddened adventurers to this land of fabulous promise have disappeared. Gambling and the dance hall have long since been prohibited. The entire Territory has been "dry" since January 1, 1918, with a dryness that can be equaled in but few States. For here it is not only illegal to sell intoxicating bever- ages, but it is a Federal offense even to have them in one's possession. Schools, churches of all denominations, banks, 478 PROCEEDINGS OF AMERICAN MINING CONGRESS telephones, electric lights, well-stocked stores are to be found in all of the towns in the Territory. Law and order, patriotism and thrift prevail. Alaska has gone over the top in every Liberty Loan and Red Cross drive. Not only has she gone over the top, but in the Third Liberty Loan she was second in the United States. And in the fourth and largest Liberty Loan,, although her apportionment was doubled over that of the third, she headed all of the States by subscribing 232.2 per cent, of her quota. The nearest approach to this by any other State was 185 per cent. Alaska divides itself naturally into four mail divisions Southeastern, Southwestern, Seward Peninsula and the In- terior corresponding approximately to the four political and judicial divisions, each of which has different interests, indus- tries, climate, geography and resources. The interior division, to which we will now confine our attention, includes the main heart and bulk of the Territory lying north and east of the Alaska Range, containing the great valleys of the Yukon and Tanana Rivers. Railroad Building The characteristics in addition to that of climate, which most: distinguish the interior from the other districts, are remoteness, and inaccessibility. Southeastern and Southwestern Alaska may be reached by deep water routes throughout the entire- year, and even though Bering Sea is icebound in winter, Seward Peninsula has ocean transportation during the summer months for the shipment of supplies and equipment. But sup- plies for the interior must be shipped either by sea to Skagway,. over the White Pass Railroad to the headwaters of the Yukon River, and then on steamboat down that river by way of Dawson, or else by sea to St. Michael's and on steamboats up the 2,000 long miles against the current of the Yukon. The distance and rehandling thus entailed make for a very high freight rate, with a consequent increase in the cost of supplies.. But what is more important, these routes are available only during the summer months from May to October, when the rivers are open, so that supplies must be purchased at least a year ahead and large stocks must be carried, which also add materially to the ultimate cost. The Government, however, i& ALASKA, A NATIONAL OPPORTUNITY 479 building a railroad from Seward to Fairbanks, which will give the district access to tidewater throughout the year and do much to remove the disadvantage of inaccessibility. The Gold Industry The principal industry of the interior is gold placer mining. The deposits near Fairbanks, at the head of navigation on the Tanana River, were discovered in 1902 and since that time have yielded something over $70,000,000, almost ten times the price paid to Russia for the entire Territory of Alaska. The Hot Springs-Rampart district, next in importance, extends from the Tanana to the Yukon Rivers, along a line about fifty miles from their junction, and has produced nearly $7,000,000. The Tolovana district, lying between Fairbanks and the Hot Springs-Rampart region, was not discovered until 1914, but in the five years of its history has yielded over $3,000,000. The Bonnifield and Kantishna districts are south of the Tanana River in the northern foothills of the Alaska Range. They were discovered in 1903, but their development has been severely handicapped by an entire absence of any transportation facili- ties worthy of name. In spite of this, the Kantishna district lias produced nearly $450,000 in gold and the Bonnifield approximately $300,000. Although there had been considerable prospecting for gold quartz veins in the Fairbanks district as early as 1905, it was not until three years later that discoveries of any importance were made. Since then lode mining has had a remarkable growth when due consideration is given to the difficulties -caused by the winter climate, by the large amount of frozen overburden which makes the sinking of shafts to solid rock an arduous task, by the high cost of supplies and by the increasing scarcity of fuel. The production of gold from this source amounts to one and one-quarter million dollars, but in addition the district has produced antimony ore to the extent of $200,000 and tungsten valued at $100,000. Lode mining in other districts has been out of the question as yet, but there lias been a large amount of prospecting which has shown that lode mining is to be an important industry as soon as trans- portation and power can be had at a reasonable price. 480 PROCEEDINGS OF AMERICAN MINING CONGRESS Handicap of Increasing Costs The mining industry of the interior has suffered heavily during the past three years because of the increasing cost of supplies, the shortage of labor and the high cost of fuel for power. The first two were caused directly by the world war, while the third has been due to the scarcity of wood in the vicinity of the mines. The advance due to war conditions in the cost of all machinery, hardware, provisions, clothing and other supplies throughout the entire United States is too well recognized to need further comment. But taken in conjunction with the depreciated purchasing power of gold, the chief product of the mines in the interior, it has caused a decided slowing down of the industry. For it is manifest that when all other values increase with respect to a standard which re- mains fixed, and that standard happens to be, as in this case, the principal product of a mining industry, not only profits, but even the possibility of working at all will soon be out of the question. If, then, mining is to continue in this district, there must be some other compensation, such as cheaper power, to offset this handicap. The shortage of labor was caused in part by the enlistment and drafting for military service of the youngest and strongest of the miners, which made it necessary for the mines to work short-handed, while such labor as could be secured was not able to do the same amount of work as the younger and stronger men who had left, causing a further decrease in production for the same wage cost. And the shortage of labor was further enhanced by the tempting offers of employment at high wages in the States, which attracted many other miners away from the interior. But even the shortage of labor and high cost of supplies might have been successfully overcome if fuel for power, which plays such a large part in the cost of mining here, had been available at a reasonable price. Scarcity of Fuel When the placer mines were first discovered an abundance of fuel was to be had on the tree-clad slopes and bottoms of the valleys. Wood was plentiful and could be obtained at a reason- able cost. But after a few years of using this timber as fuel a shortage began to be apparent, which has increased and grown ALASKA, A NATIONAL OPPORTUNITY 481 more stringent annually, until we have reached the condition where practically all of the available timber on the important older creeks has been cut and burned, and on several of them even the very stumps have been torn from the ground and used for fuel. The cost of securing wood has increased to a point where a price of $16 or $17 per cord is not exceptional, as com- pared with $5 or $6 a few years ago. But even in favored localities, where wood can still be had at a nominal price, it should not be used as fuel under any conditions that have a regard for the future, because the time can easily be foreseen when such timber will be needed urgently for mining and build- ing purposes. It should, therefore, be conserved for such use. Must Have Power The problem of cheaper power is such a vital element in the cost of mining here that there can never be any extensive development of the latest resources of the interior of Alaska until it is satisfactorily solved. The entire district depends directly or indirectly upon the mining industry, not only for its present existence, but also for its entire future growth. There are big possibilities in agriculture, to be sure, possibilities which have been demonstrated beyond question by the won- derful farming that is now being done in the Tanana Valley. But because of remoteness the farmer cannot hope to ship his produce to the United States at a profit and must, therefore, look to local consumption for his market. And what is the source of that consumption? The mining industry and the attendant commerce depending directly upon it. If the mining industry fails, agriculture must fail also through sheer inani- tion, or else be so seriously crippled that it may perhaps never realize the opportunities that are now in sight. And the mining industry cannot hope to advance unless power can be had more cheaply than at present. The placer workings, upon which this portion of Alaska has been so dependent in the past, have reached the point where most of the bonanzas have been exploited. And lode mining for any but the highest grade of ore has as yet been unthink- able. But there remain untouched many million yards of lower grade placer gravel, containing nearly twice as much gold as has thus far been recovered, that can and will be mined as soon 482 PROCEEDINGS OF AMERICAN MINING CONGRESS as cheaper power and supplies are available ; while the produc- tion to be had from lode mining under such conditions has not even been scratched on the surface. With the completion of the Government railroad, supplies will be cheaper. But any reduction here must be accompanied by a marked decrease in the cost of power, especially, for large operations, where power is such a considerable item of cost, because any possible reduc- tion in freight rates on supplies cannot be sufficient to lower the cost of mining materially. Cheaper power alone offers the key to unlock interior Alaska's resources. Alaska Chapter Takes Hand Realizing the importance of this question the Alaska Chapter of the American Mining Congress undertook to find a solution of the problem and appointed the speaker as chairman of a committee to co-operate with the Alaska Station of the Bureau of Mines, which was working along similar lines. Several months were spent in making a careful survey of the resources of the district in order to have definite facts and data upon which to base their recommendations. The estimates have been checked and verified by conferences with prospectors, mining men and mining operators actively engaged in the district for the past 12 or 15 years, as to details regarding ground of which these men have intimate personal knowledge. It was the aim of the committee to err on the conservative side, if at all, and the figures are but a fraction of what many men familiar with the district feel and know to be the potential resources here. The estimates of power cost have been verified by a number of experts of the Bureau of Mines engaged in fuel investigation. And the entire work has received the hearty support of the Alaska Chapter and the co-operation of mining men and opera- tors in the interior of Alaska. The findings and recommenda- tions of the committee have been incorporated in a report by the superintendent of the Alaska Station, which is now in process of publication by the Bureau of Mines, and of which the following is a brief summary. To Utilize Lignite The remedy for the fuel shortage in the interior of Alaska lies in the utilization of the lignite deposits of the Nonana field. ALASKA, A NATIONAL OPPORTUNITY 483 Here there are available some nine billion tons of fuel ; but the problem is not as simple as it would appear. This fuel is lignite and possesses all the disadvantages germane to lignites the world over. It contains nearly 30 per cent, of moisture, which becomes a serious consideration when transporting to the mining district, not only over the railroad, but by the necessary wagon haul as well, over roads that are practically impassable a good part of the time. And a ton of lignite does not represent a ton of fuel, but only 1,400 to 1,500 pounds. The moisture causes slacking, disintegration and a tendency to spontaneous combustion, which result in loss and waste in handling and pre- vent the accumulation of stock piles or storage. The moisture, a high volatile content, and a lack of coking properties con- tribute to make its use almost hopelessly inefficient at the small and more or less makeshift plants in the mining districts; so that even if the Government railroad were to carry the lignite free over its lines, the cost of producing power at the individual mines would not be sufficiently less than at present to afford any appreciable relief to the industry. A Central Power Plant But if this fuel is utilized in a central power plant, located in the heart of the lignite fields to avoid all transportation charges, and employing the modern equipment properly de- signed to burn lignite to its best advantage, such as would be warranted in an installation of this kind, power could be gen- erated and transmitted electrically to the mining districts at one-fourth to one-sixth of the present cost of generating it at the individual mines. And herein lies the solution of the problem. At a price even approximating these figures there is a present and immediate demand for approximately 5,000 horse- power. A central plant of this capacity, including the neces- sary transmission lines and other accessories, can be built for $4,750,000. The installation of such a plant will create an ever-growing market for power, because of the development of mineral resources the district is known to possess, so that pro- vision must be made for enlargement as needed to a capacity of at least 20,000 horsepower. The ultimate cost of a plant this size is $9,000,000. With the initial installation, power can be 484 PROCEEDINGS OF AMERICAN MINING CONGRESS furnished in the mining districts at 2% cents per kilowatt hour. But the greater output and consequent reduction of fixed charges and operating expenses of the ultimate installation will make it possible to reduce the cost of power to at least 1% cents per kilowatt hour. This is equivalent to less than $95 per horsepower year, as compared with $600 and even $700 per horsepower year, the cost of power for mining under present fuel conditions. Power Is Salvation Power at this price will be the salvation of the interior of Alaska. It will make it possible to mine placer ground that cannot be thought of at present. It will insure the installation of large dredges, thus establishing a business which will be operated on principles just as sound and conservative as those of any manufacturing concern. It will revolutionize the lode mining industry by removing its present restriction to the more richly endowed spots and by enabling the mining of lower grade ore ; and it will also encourage the development of pros- pects and stimulate the search for new deposits. With the future of the mining industry secured, the outlook for agricul- ture is a roseate one, because the farmer will have a dependable and ever increasing market for his products. And an increase of population will follow that will insure the success of the Government railroad beyond even the dreams, possibly, of its most ardent advocates. The power plant should be built by the Government of the United States because, as agent for the owners of 98 per cent. of all the land in the Territory, it is most vitally interested in the future of Alaska. It is today building a railroad from tide- water to the interior at a cost of $52,000,000, based upon a well- grounded faith in the development of the district. But the realization of this faith depends inevitably upon the future of the mining industry, for which, as we have seen, cheaper power is absolutely essential. For this reason, therefore, if for no other, it will be sound business judgment to invest the $9,000,000 for a power plant in order to insure the success of a $50,000,000 expenditure. ALASKA, A NATIONAL OPPORTUNITY 485 Big Revenue Returns But there are other equally important reasons. The Govern- ment needs a large reserve of gold to secure the extended credit necessitated by the world war. The country needs to replenish the metals wasted during that struggle. And the nation has a huge debt that it will require years to discharge. Interior Alaska has the gold and many of the metals, requiring only cheap power to unlock them. And the development of the latent resources and the prosperity that will accompany a flourishing mining industry will, merely as an increased source of taxation, go far toward paying the huge war debt. It is essential that the power be supplied as cheaply as pos- sible. The Government can afford to sell power at the actual cost of production, while private capital would require a good- sized profit. And with Government operation the cost of pro- duction will be less than with private ownership because the fixed charges, which are necessarily a large proportion of the cost of power, will be reduced to a minimum. For the United States can borrow money at 4 per cent, instead of 6 or 8 per cent., and hence would need to charge but this amount on its investments; it can wait 20 years instead of 10 for the return of its capital ; and it does not pay taxes or carry insurance ; all of which as increased fixed charges would add very consider- ably to the cost of power if it were to be furnished by a private corporation. Must Have Quick Help The work must be undertaken quickly, however, because the mining industry of the interior is facing a grave crisis. Costs are prohibitive, except for extremely rich bonanzas, and the cream has already been skimmed from most of these. The completion of the railroad will help by reducing the cost of supplies, but it cannot of itself solve the problem entirely because it cannot furnish the prime essential factor that of cheap power. Without this no advance can be predicted for the mining industry of the interior ; and unless relief is in sight at once, the small population that has remained through the past stress of dark days will drift away. The district will lose a people inured to the rigors and hardships of an Arctic winter climate, understanding fully the conditions and difficulties of 486 PROCEEDINGS OF AMERICAN MINING CONGRESS mining such as are to be found only here, an understanding obtained by years of work and experience. It will lose a people of the rugged pioneer type having a vision of the future that is invaluable. Years will be required to replace them, if ever, and the loss will be incalculable. It is not safe to assume that under a continuance of present conditions the country will remain even stationary. Frontier countries do not remain at a standstill; they either advance or they decline, and once started the descent is rapid. A Business Proposition It rests with the people of the nation to determine the future course of the interior of Alaska ; whether the outcome of the crisis is to be unparalleled development or a rapid and sudden reversion to the conditions of sporadic hunting and fishing that prevailed before the discovery of gold, such as must surely result unless cheaper power can be obtained for the mining industry. But with power at the price to be had from a plant like the one just discussed, the future, and a glorious one, is assured for the mining industry, for agriculture, for the Gov- ernment railroad, and for the settlement and development of the country that will accompany them. The resources are here and need only to be developed. The American people are said to lead the world in shrewd business acumen. Will it be either patriotic, or shrewd, or business-like, to let this golden oppor- tunity slip between our fingers ? INDUSTRIAL DEMOCRACY 487 INDUSTRIAL DEMOCRACY By JOHN LEITCH, Industrial Engineer, New York You have heard about men who, in the city, would get hold of a farmer and sell him the public building of the place, when they did not own it to begin with. Well, you are going to have that kind of a "gold brick game" played on you right now. I am going to sell you something that I don't own ; I am going to sell you something that you own ; I am going to sell to you your own organization. I tell you in advance to watch me, to see that I have nothing up my sleeve and that there are no tricks to conceal. I am going to sell you something that you already own but you don't fully value. I am reminded of the story that is supposed to have hap- pened some fifty years ago, when our words did not mean quite the same as they do now. For instance, instead of saying, "Have you your reference with you?" they would say, "Have you your character with you?" With that explanation I will go ahead with the story. A boy came into a large retail establishment that had adver- tised for a boy, and among others he was picked out as the particular one the proprietor thought would meet the needs a red-headed boy who looked bright and on the job. So the pro- prietor said to him : "Well, son, have you got your character with you?" He said: "No, I haven't; I got it at home and T will go and get it." The proprietor said : "You go home and get it and come back tomorrow morning." About 3 o'clock the boy came back and the proprietor said : "I thought I told you to come back tomorrow morning. How- ever, have you got your character?" "No," he said, "I ain't, but I got yours and I ain't coming." [Laughter.] Labor Picking Jobs Did I say that happened fifty years ago ? That is what labor is telling you today. Labor is picking jobs, proprietors are not picking men ; therefore, I say to those who wake up to the situ- ation: "Let's make a character of our institution that will 488 PROCEEDINGS OF AMERICAN MINING CONGRESS make 'the boys' say : 'I want to work there/ " That is exactly what confronts us today the need for character in the insti- tution. We have built character in the individual, our mothers did much of that for us, but since mother got off the job and it has been left to us we have had to build our own character and we, as individuals, have recognized the need for that thing. Two men come to sell you something; one a man of very evident integrity, the other a very smooth talker both of them use identical arguments, no change, maybe, in the phraseology, maybe not a change in a word. From one man you buy, from the other man you take nothing. You don't believe him. What is the difference? Character. The character that radiates from the man. And now is the time when we must step for- ward and do a wholesale business on character building. Establishing Character for Business Instead of merely making a character for a man, and that man being myself, if I am at the head of an institution it is my job to make a character for that institution, because we are doing business with institutions today while formerly we did business with individuals. Business has grown; it is beyond the reach of one man's hand, and the institution must have a character. Therefore, put into business or into an institution a definite, distinct set of principles by which it will operate, just as for an individual it is necessary for you and me to say : "Regardless of the work that I do, regardless of the goods that I may handle, regardless of the line of business I may be in, I will be an honest man." [Applause.] Then, touching a bit on economics and getting down to what we do now realize to be an absolute necessity, we then say, as an individual second point in my character "I must be a man who co-operates, and I will set that as being one of the standards upon which my life will be conducted, because I know that no one man has ever done a great thing alone." Columbus started out and went a considerable distance with- out opposition, and after a while his sailors struck; they wanted to put him in chains in the hold of the vessel and turn around and go back to solid land. They were afraid that that horizon line was the place where the ship could go over the INDUSTRIAL DEMOCRACY 489 edge of the world. They had no faith ; he had faith. He would not have arrived here and you and I probably would not have arrived here if the doubters had succeeded. He must have taught his people co-operation ; he must have gotten from his people co-operation. He probably did not sit in his private office and damn labor ; he probably did not call in from the out- side an expert to cure his difficulties. There were none to be had. He went to his people and spoke directly to them, and the man who runs the ship today must go directly to his people and speak to his people that he may be known as a man, as a friend, as a human, as one through whom red blood flows not ice water and not be known by his "sailors" as the head of a "soulless corporation." Man to Man "Man to Man," the title of my book, is built around that idea of directly coming in contact with our people man to man. You cannot go out and see each one as an individual where you employ thousands of men, but you, as an individual, have the opportunity of appearing before your entire mass once in a while and you ought to make it more often than that and you can then pour into them, and through willing ears, your aims, your ambitions. Not your individual aims, not your personal aims; they are not interested in that any more than you are interested in my personal aims. You can pour into them, and through willing ears, the aims of the institution, the opportunities of the institution, ths obstacles of the institution. They will help you with the aims and they will help you to over- come the obstacles. That is not theory, it is a fact; I know it. I have seen it done in 47 corporations, in many lines of business. I wish I could say that I had seen it done and carried forward to completion in the mining business. Then there would not be a man here who could say : "That may be all right in a shop or a factory, in a steel mill, a manufacturing plant, or where they make hosiery or hats, or a newspaper plant, or an automobile plant, and so on, but it would not fit the mining business." You know the shoe man said that, too; the hosiery fellow said that, too; the coat manufacturer said that, and the ma- 490 PROCEEDINGS OF AMERICAN MINING CONGRESS chine shop man said that, and every one of those, who now know the contrary, said : "It may apply in these other lines of busi- ness, but it won't apply to mine." So I assume, and I guess I am 95 per cent, right, you say : "Democracy will apply in other shops," and you have forty other reasons why it won't apply in yours, but you are wrong it will apply to mining, because it applies to men. A Work with Men Industrial democracy is not a matter of digging up metals out of the ground ; it is not a matter of digging up production out of a machine; it is not a matter of making shoes, nor hosiery, nor automobiles, nor flour, nor phonographs, nor pianos, nor all these other different things that we call our finished product. Industrial democracy is a matter of taking not raw materials such as we call material things of the low degree such as ore, coal or iron, or copper, or trees, and turning them into either pianos or furniture or machinery or any of these other things that we sell on the market. Industrial democracy is the matter of taking the best raw material that God Almighty put on this earth man and turn- ing him into a finished product the master man. That is your job and mine. [Applause.] In the history of humanity you will find that man has grown in proportion as he took first the raw materials of low grade and worked them up into a finished product, an'd humanity has taken steps forward in proportion as we have discovered the higher grade materials and worked on them. We have begun to work, just recently, in that very fine, high-grade stuff that you cannot see electricity. Man made quite an advance when he took that step; far ahead of the man who took raw material of wood and turned it into bows and arrows, or iron and turned it into a battle-axe ; far ahead of those men who handled that raw and common material. As we come up the line the evidence that we are coming forward is shown in the class of materials in which we work. Now our job is not in the working of lead, iron, copper, gold, silver or any of those other metals, but our job from now for- ward and we are a little late in starting is operating with INDUSTRIAL DEMOCRACY 491 the gems of creation. Not until all the things were made did the Creator come out with man, and we are now working in that line and we are just starting. Practical Democracy I should tell you who have not read the book, "Man to Man," or the story of "Industrial Democracy," that it contemplates taking an organization as it is and merely changing the names of two bodies that operate business namely, executives and foremen, and instead of calling the executives the "bosses," we form them into a body called the "cabinet." It appeals to the American mind, whether foreign-born or not. It has some- thing to do with democracy, and it has nothing to do with autocracy. It appeals to the American mind as practical democracy in industry. The Cabinet meets as a body the same as they did before as executives. The Cabinet, however, instead of taking all of the burdens of the business, have two co-operators who assist them in the conduct of the business. The body next around the Cabinet is the Senate. It is composed of department heads and foremen. They get together regularly every week and meet as a Senate. Your workers get together and elect a House of Representa- tives by secret ballot. Now, some of you are beginning to shiver and think you are turning over to the "Bolsheviki" the management of the business. But you're not. Ask anybody who ever has had Industrial Democracy actually at work get the facts; don't theorize and you will find that the working man, working through his House of Representatives, is a co- operator and a constructive force. But we, not having seen these things, have allowed the work- ingman to elect his delegates to another kind of a house, and to have that other house led by Bolshevik and destructive elements, and we have gone sound asleep while he was doing it until these recent times, and now we say : "What shall we do?" After having let it happen, it is up to you and to me, the real leaders of business, to lead in business. Our leadership is about or almost taken away from us. The fact of the matter is there was not much to take away, because we were not real leaders. That is why it was so easy to get it away from us. But men 492 PROCEEDINGS OF AMERICAN MINING CONGRESS who knew how to lead men have stepped in and led men, or misled them, and that is the serious side of present affairs. Don't Blame Labor Here is the better side of it, and usually on the better side we find the greater truth: We must not blame labor with present conditions. It is not the fault of labor. The minority of labor is unionized. A minority of those who are unionized attend union meetings, and a great minority of those who attend, usually one man, leads that small minority, and that minority dictates to union labor what it shall do. Why? Because union labor has few constructive leaders, and the great mass are constructive and they do not want the "radical" leader. They have told me so. Great Cry for Leadership I have met hundreds of thousands of them, been into many homes, walking constantly through plants, where I go directly to the machines where the boys are on the job. I have talked to them en masse; I have heard their stories. Labor wants constructive action, and if you sit still and think, be quiet and listen, and if you have any ears that really can get to the ground, you will find that labor is constructive and they are crying for a constructive leadership. They are asking you and me to get on the job, and they are the great majority, and when the great majority organize the minority won't cut much ice. That is the way you will dispose of Bolshevism. Bolshevism is very much in the minority, but the minority is organized and we, the majority, are sitting around saying: "What shall we do?" It reminds me of a very old story : One of the greatest lead- ers of men, who could certainly take a "riff-raff" and develop them, was old man Moses. He had all the advantages of living in a king's household and getting the education that the people of the royal family and the priests only could get. Wisdom was not permitted to be handed out to those except in authority in the king's household, among the nobles and the priests of the time. Moses had an opportunity to get that wisdom. Moses also lived in the luxury of a king's household. He had things pretty INDUSTRIAL DEMOCRACY 493 soft, but Moses was a big enough man, however, to get out of his easy job, to come out of his highly decorated and very com- fortable private office and reach down to his people and raise a nation out of slavery to a national life. Thinking on the Job We need men like Moses today. Don't think it is altruism it pays. I would rather have the mine full of thinking men than a mine full of slaves, wouldn't you ? I would rather have an organization of men who think on the job than a mass of men who do not think on the job. I am suggesting that we get that kind by making that kind out of what we have, taking that raw material and working it up into a finished product. Another suggestion in the process : It can be done and has been done, not only scores of times, but there are literally thou- sands of companies in this country today that are doing it, and they took that book, "Man to Man," on industrial democracy, and have installed industrial democracy in their plants with- out any aid except that book as a basis of that idea. I am talking pretty loud about my own book. It isn't my own book. No man owns an idea a real idea is bigger than any man living, and this idea is so much bigger than I am that I have a hard time filling my job- I am trying to work for that idea, and I wish you would work for it, too. Because it is right; it is constructive; it leads toward American citizenship; it turns our foreign thinking people, who do not understand much about democracy, into a living, breathing bunch of men, who understand democracy because they have it. It is on the job in the mine and the plant and in many different institutions throughout the country. Train Aliens in Business How else can we train our foreign people to understand our American principles unless we train them in the daily opera- tion of the business ? Where is there a better method ? I am not arguing in favor of this because it is mine. It is not mine ; I am only a second-hand clothes dealer. I am sorry to say I did not originate the idea, but I can give you the names of the men who did. One was a fellow by the name of John Quincy Adams, another fellow was John Hancock and many others about that 494 PROCEEDINGS OF AMERICAN MINING CONGRESS time whose names you know. They had such a big, broad vision that they did not stop and say : "Where has this been done? Will it operate in this particular spot on the geography? Will it work out with this conglomerate mass from all nations ? Will it make good with this bunch of foreigners that we have here in the United States?" No. And if they had asked those questions, they could have had no answer, not from the out- side. They could have had no answer from any place that had operated it, because there was no precedent. Those men had to do pure thinking. Did you ever try it? Those men saw an idea, were so convinced that the thing was right that they did it because it was right, not because it was done in the copper mine across the way, or some plant down in Massachusetts, or in some place over in Europe. They took a brand-new concept and they said : "This thing is right, there- fore we will do it and we will risk our lives in doing it,-' We, in business, do not have to do that today. They were great men who did that, and they put it into a plant. I do not know how many people they had, but they had several million in their plant then, and that plant has grown until it is now the United States of America with one hundred and ten million people in it. It is still sticking to the same poli- cies, and it has become the most prominent nation of the earth, and, incidentally, the most prosperous and most profitable. Democracy Will Work Anywhere Can any man tell me that a principle that will operate to such an extent as that is not strong enough to operate in a little plant that employs maybe ten or fifteen thousand people ? How foolish ! I say today : "Come on ; let's get together and think. Let's not ask where this thing has been done. Use your head. That is what it was put there for. Let's do a thing because it is right, not because some other fellow made money." That is the kind of men we want. We have had George Washingtons in our political life that have helped make our nation, helped to give it birth, helped to nurse it and coddle it when it needed that nursing and coddling. We had an Abra- ham Lincoln, who saw the country divided in two, but who had love enough for man, regardless of whether it was North or South, and put that love out to them in such shape that he drew INDUSTRIAL DEMOCRACY 495 them together in one bond, in spite of their opposition. That is what we call "love." Put Love Into Business We have to put love into the business. Forget it as a thing that exists between a man and his wife, or a mother and father for the child. That is big love, but the kind of love we should have is the kind that Abraham Lincoln had and the kind that George Washington had. If you and I are called on today to do in industry what Washington and Lincoln did in politics, if you and I are called upon to be the Washingtons and Lincolns of industry, are we the men to do it? That is the question. I say: "Yes, I am the man." It isn't modest, but I say: "Yes, come on with me, because you are the man you are the man to bring about this reconstruction of our America and make it what it can be; make it fit the ideas that we have in our heads and hearts." No dispensation from the great Crea- tor will make America; it is done through His regularly ap- pointed agents humanity, mankind, you and I, my American brothers and sisters. Through you and I this blessing will come to this country or not at all. Are You the Man? Are you the man to help bring about America's principles and establish them throughout this country in the daily con- duct of our lives, that men from foreign nations and many who have been born here will maybe for the first time realize what America stands for and why that flag is honored? [Applause.] When a man invents or discovers, that is only uncovering a thing that he calls new. We find that there is nothing new, but there is something new to our observation. Our observation may see it for the first time. Steam was not new when Fulton applied it to the operation of a steamboat. Fulton took it over to Napoleon when France wanted to be the "king pin" of the world, and Napoleon, the great general, listened to his story and turned him down, because it was only a theory to him. If Napoleon had been broad enough of vision, if Napoleon had been capable of seeing a new thing, a new power, the map of Europe would have been changed, but Napoleon did not see it. 496 PROCEEDINGS OF AMERICAN MINING CONGRESS George Westinghouse, with his new air brake, went into Vanderbilt's office in New York and showed him his "toy," and Vanderbilt listened for a while and then said : "What, do you mean to tell me that you are going to stop a train weighing hundreds of tons with wind? There is the door." Westing- house walked out and Vanderbilt did not get the air brake. When a man, whose name we know well now, first monkeyed with a little power that we are all familiar with now, he was just flying a kite and I presume, of course, it must have been raining because the string had to be wet to conduct that cur- rent down to the key that was near his hand, and he got the little shock. He did not see electricity. Fulton did not see steam. No man has ever seen power in any form. We can see the vapor that steam makes when it strikes the air; we can see the result of electricity in action, such as this light, but we do not see electricity. We can see our electric street cars run, but we do not see the power. A New Power at Work You and I are going to see something now, but don't point to that door, because I am not going through it until I get ready. But I am going to tell you about a new power, and I am going to take it out of our churches that have had it tied up there and offering it freely to the people, but tied it up in our churches and bound it up with stone and brick walls, where it has been used only to preach about for a few hours on Sun- day. Now you business men and we practical fellows have to dig that thing up and yank it into business. Listen it is spiritual power. [Applause.] I have spoken to thousands, yes, hundred of thousands of laboring men. I have spoken to thousands of business men, and I know, while I have not seen spiritual power, I have seen it at work. An illustration I could give you lots of them : At the Sydney Bloomingthal plant in Shelton, Conn. where they make velvets and velours, not a war product, not munitions (munitions were made within 15 miles from there at a high competitive point where they were paying big prices for labor) Sydney BloomingthaPs plant had a waiting list through the war. They had an industrial democracy; they were working in co-operation, and they, in spite of the 23 Ian- INDUSTRIAL DEMOCRACY 497 guages spoken in that plant, had at least a few glimmers of what democracy meant. They had saved hundreds of thousands of dollars by that co-operative spirit, hundreds of thousands of those things that we go into business for. So co-operative spirit in capital and labor pays in money, and anything that is good pays all around, and the "gooder" it is the better it pays. If it is sound, if it is right, if it is true, it pays ; and it pays to co-operate with men and it pays to develop men. In that plant in October, 1918, 23 languages were spoken. They had taken $26,000 in the First Liberty Loan. They had taken $33,000 in the Second Liberty Loan. They had taken $65,000 in the Third Liberty Loan and they had taken one hundred and twenty-odd thousand dollars in the Fourth Liberty Loan. What Democracy Did In their House of Representatives a man got up in October, 1918, and said: "The boys are talking around through the plant that they would like to have some plan of paying up their subscriptions on the Fourth Liberty Loan a little quicker than we are now, and it has been suggested and talked about that we work an extra hour each day. Instead of closing the plant at 5 o'clock, we will begin and work until 6 o'clock, if the Com- pany will apply that extra hour's wages to the payment on the Fourth Liberty Loan." They wanted to be ready for the Fifth Liberty Loan that they thought was coming. [Applause.] I am going to show you what spiritual power means. That isn't it; it is only pointing that way. Well, the motion was made and carried. Of course, that did not make the law, be- cause it has to pass the Senate and has to pass the Cabinet, but you could bank upon it that that law would go through. You can pass all kinds of laws that are right. Well, the next man got up and said : "I move that at 5 o'clock the whistle be blown and that every man and woman stop work for that one minute, just preceding this contribution that we are making to the greatest cause the world has ever had." They made that motion, seconded it and voted on it unani- mously that they stop work for one minute while the whistle be blown. Then another one got up and said : "I move that every face 498 PROCEEDINGS OF AMERICAN MINING CONGRESS be turned toward the east." Mind you, all of this among the workers, about 52 people in that House of Representatives. So it was voted, too. Prayer for Victory I was there a few weeks later and a man got up and said : "I think that while the rest of us know it, Mr. Leitch would be glad to know that some of the women are offering up a prayer during that minute." Another fellow, without getting up, said : "Yes, and lots of the men are doing it, too, if they would only own up to it." Twenty-three languages, men and women from foreign nations, unified by a spirit, the spirit of freedom, and a desire to contribute toward that spirit of freedom, toward a just cause. That is not hands at work; that is not heads at work; that is something that puts both the hand and the head at work and keeps it on the job the spirit of the man. I say "put into business spiritual power." I say that you, as executives, have it ; it cannot be new to you even to hear that statement. You know it, you feel it inside of you. It is that thing that makes you want to be when you are all alone, maybe pacing your room at home or sitting down quietly, not smoking your cigar or your pipe, because you are thinking so hard and so deeply that you let your pipe or your cigar go out, as you have been thinking and picturing what you should make of yourself. That is the hope that you have in yourself ; that is the faith that you have in yourself, and yours is the spirit in the man and you have it. Believe in Yourselves Believe in your: 2lves. Believe in your organization, because every man in your organization also has that spirit. I do not care whether you call it soul or call it ego ; you can call it any- thing the college professors call it or you can leave it without a name, but it is there. It is the invisible man oh the inside that keeps you going toward the front, and that keeps the working man going toward the front. He is not as well educated as you and I ; he cannot express himself as thoroughly as you and I can ; he is trying to tell you and he is hollering all over this country: "Won't somebody with a constructive thought come and lead us?" And we have not heard him. INDUSTRIAL DEMOCRACY 499 Labor Weary of Destruction The man with the destructive thought has stepped in and he is trying to lead labor, and labor is saying today : "We are tired of this stuff ; we do not want any more of this Bolshevism ; we do not want these I. W. W.'s. Deport them. Leave America for men of American spirit." And we do not hear them and we let the foreigner and the radical and the Bolsheviki and the I. W. W. lead these men. Get to a point where you can be as wise as Solomon. That is what we need, and when we are then we will try, like he did, and we will say : "Oh, Lord, give me wisdom that I may lead the people of my institution, the people that are in my own organization, whether it be in a mine or mill or a plant!" These, the climax of all created things, made by the Creator, put into our hands in the shape of raw materials from the Almighty. Let us help Him make of these a race of master men. It is now that we are getting the opportunity. Can we understand it? That is our job. Making Finished Product of Men Our job is not making ore or a finished product of metals. It is making a finished product of our organization. It is making master manhood. Get on the job, the biggest job that you have; come on and get on the job. We need it as a nation, we need it as a world-leading nation, and the world is looking to America for the leadership in industry, which means the leadership in manhood, for without it there cannot be leader- ship in industry. [Applause.] I want to tell you one story, and then I am going to quit. I hope I have sold to you your organization. Go back and take a look at them, and don't look at the face ; don't be fooled by the grime that may be on those skins that cover flesh and bone; look back of that; open up your inside eyes and see the inside of the men before you. Back in there you will see unlimited possibilities, untapped reservoirs, things that will make profits in your business. Yes, things that will make better goods whatever you are making, things that will save your powder, your tools, your chains, your cars, your equipment, whatever it may be, if you will get that inner man active but first you'll have to see him. 500 PROCEEDINGS OF AMERICAN MINING CONGRESS It is profitable from a financial standpoint ; it is a good thing from an economic point of view. Some of you may not like this, but I am going to tell you anyhow that it is profitable from a spiritual point of view. [Applause.] I am very selfish; I am greedy; I want plenty of money to take care of my wife and my daughter, my daughter's husband, if he happens to need it, which he won't, and their children, if they happen to need it, and I do not believe they will, because I believe in my daughter and my son-in-law, but I want enough money to take care of them in case anything happens. Oh, yes, I am greedy ! I want it and I can't get it unless I earn it. I want the friendship of thousands of men, I want their faith, I want their confidence, I want their love. I am going to get it, and I am not going to die without it. Money there isn't enough in the world to pay me what I want. I want men and I want the brotherhood of man. I want it established while I live, and I want to help build it myself and the builder will get all the credit that is coming to him. I am greedy for you that you get those same things, too, that the world may not pay you in money alone. I pray that you do things that checks cannot square accounts with you, except the checks that are issued in some place we know not where, but maybe instead of there it is right in our hearts where those books are kept, and it will bring you happiness and content- ment, and that is what you are after, and that is what I am after. I want you to get that as well as the money, and I am telling you how you can get it. The Job of Building Men Get on the job that the Creator had, a job of building men. If you will help Him, He will help you. I am not talking Sunday-school talk, either; I am talking practical stuff, and when you get the Creator co-operating with you you cannot lose. I say you are building with and it is a wonderful thing to do spiritual power. I am showing to you, maybe, a ship that is not dependent upon the wind, and I ask you, for your sake, not to turn it down as Napoleon did. I am telling you to use spiritual power ; it lies in your place, in yourself, and when you get it you will have what the French call "esprit de corps" spirit of the organization. We have INDUSTRIAL DEMOCRACY 501 used the expression with our mouths and have made noises with the tongue, but it has not meant anything down in our hearts, and there is a spirit in the organization, raw material so far, waiting for you to build up. One story, if I may: A certain man, a great big general, next to the king, because he was a wonderful fighter and had conquered many enemies and brought home many slaves, had leprosy. Among the slaves he had brought to his own country from other lands was a little girl who was a servant to his wife. The little girl liked this general, and one day she said to Mrs. Naaman : "Would that my lord Naaman lived in Samaria, where lives a prophet who would cure him !" So he made the trip, and with him he took camels and presents of different kinds to the great man who was going to cure him of that leprosy. He arrived not at some great mansion or a king's palace, but at the home of a modest man. The great doctor did not come out to meet Naaman, the great general, but a servant was sent out to this great general of a country that had con- quered the country in which the doctor lived. The servant said to Naaman: "Go and bathe in the river Jordan seven times, and thy flesh shall return to thee as that of a little child." Naaman, seeing this little Jordan, a muddy stream dried up part of the year, and thinking of the great rivers of his own country, said : "That I should bathe in this little stream ! Are there not rivers in Damascus in which I may bathe and be clean." And he turned in rage and headed back to his country. He was insulted twice approached by a servant and told to bathe in a muddy stream. One of his servants came and said : "My master, if he had asked you to do some great thing, would thou not have done it?" And Naaman turned back and he bathed in the Jordan seven times. The story says that his flesh returned to him as that of a little child, re-born. A True Story Today In the language of the ancients, seven times meant "make a complete job of it," and Naaman immersed himself in that little stream and he made a complete job of it. I do not care whether there ever was a Jordan, and if the scientists could prove to 502 PROCEEDINGS OF AMERICAN MINING CONGRESS me there never was a Naaman, nor a Persia, nor an Israel, and if they can prove that there was no such time in history, still they have taken not one particle from the truth of the story. The story is true and it was told for you and me here today in St. Louis, and you are going to take it away with you. You and I are Naamans. We are not the full-sized, 100 per cent. man. We have some defects, and to cure those defects and become first-class, "a number one," high-grade, 100 per cent, men, we have to bathe, immerse ourselves in the duty that lies right before us every day, and not wait for some far-off, distant, great thing to do, like a great river of Damascus in which we might bathe ; but the job that comes before us each day is the place where we are going to bathe, or we will not be a 100 per cent. man. Men Are Calling Go and immerse yourselves in the duty of today, and do not wait for some great deed or some great man to call upon you. Men are calling upon you now. Maybe you think it isn't a big enough job for you. Well, it is ; it is big enough for all of you, for all you are now, and for all you ever hope to be, and if you don't do it well, you haven't been cured and you are not going to be that man that in your heart you want to be, unless you immerse yourself in the duty of the day and put the whole man on the job. Pretty high aims? It makes me think of a piece of poetry with only a few lines to it, and then I am going to leave you. Ella Wheeler Wilcox wrote it. I do not know the title and I do not know the last two verses, but I do know the first one and you are going to know it now : "I may not reach the heights I seek, My untold strength may fail me; Or, half way up the mountain peak, Fierce tempests may assail me. But though that place I never gain, Herein lies pleasure for the pain I shall be worthy of it." That is your standard now as well as mine. [Applause.] LABOR AND ITS RESPONSIBILITIES 503 \ LABOR AND ITS RESPONSIBILITIES Address by CHARLES PIEZ, of Chicago, 111. On November 9, fully conscious that the bituminous coal miners had declined to submit to the arbitration offered by the President, a series of demands which were so extravagant that they would have imposed on the consuming public a burden of, at least, a billion dollars a year, the Executive Council of the American Federation of Labor, after a four-hour session, pledged to the United Mine Workers the full moral and finan- cial support of its 4,000,000 members in the bituminous coal strike which the Government, through Judge Anderson in the Federal Court at Indianapolis, had declared unlawful. In com- menting on this action, one of the labor executives said that same evening: "This means that the strike order will not be rescinded. The time has come when the people of the United States should find out once and for all if its Government has the power to make men work against their will." If this were the outburst of some splenetic business agent it would not deserve mention, but when it represents the views of conserva- tive labor leaders it is apparent that the error in the conception of the real situation is epidemic, rather than sporadic. It is difficult to believe that such experienced and astute leaders as Mr. Gompers and his colleagues should really feel that the action of the Government in Indianapolis meant a return to involuntary servitude for the workers. If they do, then labor is under a most peculiar and unwholesome delusion as to its rights and privileges, and the organization which has recorded itself against oppression of every kind has itself become a most inconsiderate and merciless oppressor of the general public. Labor Strengthened by War At this time organized labor is stronger in membership and stronger in solidarity than ever before in its history. It is no longer a suppliant for popular sympathy in its struggle for recognition. It works short hours, receives high pay, and has unlimited opportunity for employment. It has attained these 504 PROCEEDINGS OF AMERICAN MINING CONGRESS exceptional advantages so quickly and so easily, through the extraordinary conditions attendant upon the war, that it has armed itself with a bludgeon and is preparing to beat its way to the full and exclusive possession of the fleshpots of estab- lished industry. There is evident in its methods and its aims none of the care and consideration that should attend the exercise of great power. It has thrown caution to the winds, and is prepared to wreck the State itself in its blind intent to follow the course laid by radicalism. Neither want nor economic necessity can be urged as the cause of the epidemic of strikes from which we are at present suffering. They result, without doubt, from carefully laid plans to create discontent and to develop sus- picion and class hatred. So skillfully and methodically have these plans been laid, so adroitly have revolutionary leaders worked from the inside of the American Federation of Labor, that even its conservative executives are today, in their desire to compromise with radicalism and maintain the integrity of the Federation, giving countenance to methods and doctrines which, if tolerated, will subvert the very foundations of our economic and social structure. I came in frequent contact with Mr. Gompers and his asso- ciates during my connection with the Emergency Fleet Cor- poration, and I found nowhere more patriotic and earnest co-operation to keep the industries going without interruption during the national crisis. I feel free to say, therefore, that I believe Mr. Gompers and his associates are unaware of the menace and dangers of the course that has been laid for them. Radicalism decided on its policy to bore from within the Ameri- can Federation of Labor some years ago, and no effective steps were taken by the leaders of the Federation to prevent this honeycombing. Constant compromise may build up a large association, but it takes courage and unswerving fidelity to principle to build up a strong and effective organization. The executives of the American Federation of Labor have yielded too much to the desire for numbers, and they have before them a large job of housecleaning to re-establish them- selves in the public confidence. They have missed several opportunities within the last 12 months to show that, in their growing strength and increasing power, they were still mindful of their obligations to the public. LABOR AND ITS RESPONSIBILITIES 505 Federation Lost Opportunity When the Metal Trades Council of the Puget Sound District called a strike last January in defiance of an existing and unex- pired agreement entered into between the Federation and the Government, its members should have been ordered back to work by the international presidents of the crafts involved, and failure to comply with this order should have resulted in a withdrawal of the charters. But the officers of the Federation contented themselves with being sympathetic with the Govern- ment's efforts to enforce a labor contract and lost a golden opportunity to put themselves sternly and uncompromisingly on record against a breach of agreement, and against the radi- cal element in its membership that was guilty of so violent a disregard of common business honesty. Again, the Federation should have appreciated the difference in obligation between a policeman sworn to protect the life and property of the public, and a workman engaged in manu- facturing. It should have set itself squarely against a strike of policemen, under any and all circumstances, and should have advocated other ways to redress wrongs, if wrongs existed. And in the steel strike the American Federation of Labor gave its countenance and support to Foster, an avowed syn- dicalist and revolutionist, a man who had disseminated among our alien workmen principles wholly at variance with Ameri- can institutions. Why should the American Federation of Labor lend its encouragement and aid to an organizer who has publicly announced that "the wages system is the most brazen and gigantic robbery ever perpetrated since the world began" ; that "the syndicalist allows no consideration of loyalty, religion, patriotism, honor or duty to stand in the way of his adoption of effective tactics"? Does not the American Federation of Labor surrender its vaunted position of conservatism and loyalty to American insti- tutions when it employs exponents of such doctrines in its campaign for new members? Compromising with Radicals Can there be any question that even the conservatives among our labor leaders are tolerating the specious arguments and false promises of the extremists in the labor group, and 506 PROCEEDINGS OF AMERICAN MINING CONGRESS that in facing the situation today and in looking for a remedy we must appreciate that the radicals in the Federation, though I believe in the minority, have temporarily raised the red flag above the red, white and blue ? Conservative, sane leaders of the Federation must either declare themselves in favor of radical doctrines and action or they must have courage to assert themselves, to re-establish for the organization the groundwork of American principles and ideals, even if that re-establishment should split the Fed- eration. The public is going to insist that it be no longer vic- timized by men who intend to control industry and society through a framework of Soviets, and it is not going to submit to constant interruption of the vital industrial processes when revolutionary propaganda, and not economic necessity or want, is the cause of the interruption. The public is insufficiently organized for promptly and effectively meeting a situation like the present, but it can insist in no uncertain way that its legislators and its representatives bear in mind that obliga- tions, as well as privileges, go with American citizenship, that this is a government by majorities, and that no organized minority will for any length of time be permitted to prey without hindrance on the majority. France has, in the national elections just held, declared herself overwhelmingly against radicalism, and America will declare herself similarly when the opportunity comes. For our people are just beginning to understand and appreciate the reason for the existing unrest and sinister purpose of the leaders who are fomenting it. They are growing more critical of the aliens who have sought our shores ; they insist on knowing whether these aliens have come here to seek a livelihood in the American way under American institutions, or whether they propose to enforce upon us a new form of government, born of immature and visionary minds amid the stress and discouragement of foreign oppres- sion. Suitable Laws Needed Congress will, without question, meet this present invasion of irrationalism and revolutionary propaganda by suitable laws that will enable the Department of Justice to deport aliens who are unwilling to accept the American principles of govern- LABOR AND ITS RESPONSIBILITIES 507 ment, or who are guilty of slanderous misrepresentation of our institutions. We want men of foreign birth, men who will adopt our principles of government and assist in improving them, but we want no unassimilated foreign element to become a cancer spot to our institutions in the future. We are going to handpick our immigrants hereafter and we are going to return some troublesome examples that have sought our shores. That will be the first step in our return to sanity. The second step should consist in impressing on the sane leaders of labor the necessity of getting a proper conception of what wages are and who pays them. Among the many eco- nomic delusions of the day is the one that capital pays wages and that high wages can be paid out of profits and surplus, or out of capital itself without increasing output or advancing prices. Not only workmen, but many of our legislators, forget that capital, as applied to the industries, represents investment in property, in machinery and equipment, and in material in process of manufacture, and that the way to meet wages, the cost of materials, of power, and all the other expenses involved in manufacture must be secured out of the selling price of the product, out of the money derived from the user or consumer. Wage-Earners Pay Bill If wages increase and production falls, an almost universal industrial occurrence at this time, prices must go up, not only to meet the increased wage, but also in proportion to the decreased output. Wage-earners are apt to forget that they are themselves the largest consumers of manufactured com- modities and that they must, therefore, pay by far the largest share of any increase in the cost of production. If any group or class, like the bituminous coal miners, for instance, attempts, under some wrong economic theory, to improve the oppor- tunity for labor by reducing output and at the same time insists on an increase in wages, the burden falls most heavily on other groups of wage-earners, who must retaliate in some equivalent form to restore the economic balance. So much has been said of the necessity of increasing pro- duction and reducing consumption to bring down the cost of living that further repetition seems unnecessary. But this economic axiom is not yet admitted by labor leaders to indi- 508 PROCEEDINGS OF AMERICAN MINING CONGRESS cate the right policy, and constant reiteration is, therefore, essential to insure its wider acceptance. It is well to remember that the disinclination of labor leaders to accept this basic truth is by no means due to lack of intelli- gence on their part, but is due rather to the fact that for years organized labor, both here and abroad, has endeavored to improve its condition by keeping demand in excess of the normal supply. Labor adopted, in other words, the principles of monopoly and such measures as the limitation of the num- ber of apprentices, the consistent opposition to any scheme of wage payment that would tend to stimulate output, and the restriction of the output of the individual to the capacity of the least skilled naturally resulted. Without questioning the wisdom of this labor policy in the past, it is proper to indicate that under conditions as they obtain today, and as they are likely to obtain during the next few years, a continuation of this policy is destructive of the best interests of labor itself. Restriction of output may appear wise during periods of re- duced consumption ; it is never wise during periods of unlimited demand. There is no possible hope that the vastly reduced productive processes of the world can meet the normal demand and make good the ravages of the war in years to come ; and labor's present opportunity lies in securing high wages for large production, so that earnings will increase faster than the cost of commodities and faster, therefore, than the cost of living. The third and final step to meet the present situation is to insure, that large unincorporated associations of either employ- ers or employes be brought within the reach of civil process in every jurisdiction. These organizations, with their vast mem- bership and their great defense funds, are in position to do infinite harm to the public without accepting any responsibility for the acts of either their individual members or their leaders. For the past 25 years labor organizations, particularly, have been exempted from every piece of legislation that has been enacted to safeguard the public against the aggression and extortion of combinations. LABOR AND ITS RESPONSIBILITIES 509 Should Be Under Law When associations grow as powerful as these labor organiza- tions have grown in the past few years the only protection against irresponsible action lies in bringing them within the law. It has been suggested that this can be brought about by enacting a law which will provide that any voluntary asso- ciation of seven or more members may sue or be sued in the name of the association. There seems to be no good reason why such an act should not exist in every jurisdiction. The Illinois Manufacturers' Association months ago insisted that some provision in restraint of strikes should be made in pending railroad legislation, and such a provision was actually introduced in both the House and the Senate bill. As you will remember, however, it was very materially modi- fied before the House passed its measure. I think it is essen- tial, if we are going to insure continuous operation of the roads in the future, that the men be given an opportunity to have their wages determined by a proper tribunal, but, in considera- tion of that provision and as a part of their contract of hiring, they be forced to waive the right to combine to tie up the systems. I think that same safeguard should be extended to the basic industries, and certainly to municipal, state and Federal employes. I feel that we have treated labor organiza- tions as something apart. We have coddled them during their early stages, but have lost our perspective in regard to them. Labor need no longer be coddled ; it ought to be held to a strict accountability for its actions. That, after all, is the most essential step that we can take as a nation to bring labor back to some form of sanity. I am suggesting here three steps in this process of recovery. Compulsory Arbitration A second piece of legislation that commends itself is that contained in the Cummins bill which provides for compulsory arbitration in railroad labor disputes. Because continuous operation of the transportation systems is absolutely vital to the very life of the nation, no group of men whom chance has placed in the employ of these systems should have the right to conspire collectively against the public interest. It is not necessary to forbid a man to quit work if he so chooses, but 510 PROCEEDINGS OF AMERICAN MINING CONGRESS it is fair and just that men engaged in an employment vital to the nation shall be prevented from using their great power in combination to practice extortion on the public. Proper tribunals for the determination of wages and the adjustment of disputes should be provided, but the workers on these sys- tems should, in consideration of the establishment of such machinery to insure fair wages and just treatment, and in consideration of the paramount interest of the public, waive their right to strike. Necessary Legislation A further piece of legislation which has been suggested as a possible preventive against premature, unfair and unneces- sary strikes, but one which, it is thought, will not prevent strikes when they are necessary as a last resort to secure justice, provides : "It shall be unlawful for any person, associa- tion or corporation willfully to induce, aid or support any strike, lockout or other kind of industrial warfare (a) Of employes whose terms of employment are fixed by the state or any political sub-division thereof; (b) In violation of an agreement, or for conditions of em- ployment conflicting with any agreement between an employer and his employes, or an employer and any labor union ; (c) In violation of any arbitration award, or for conditions of employment conflicting with the terms thereof ; (d) To enforce demands where the party against whom the demands are pending is willing to submit such demands to arbitration by any method agreed upon, or to any public agency authorized by law to deal with such matters ; (e) Without first giving the parties involved a reasonable opportunity to consider and act upon the terms sought to be enforced thereby; (f) Where there is no trade dispute involving issues of direct benefit to the parties involved ; Provided, however, that nothing in this section shall be con- strued to forbid the mere quitting work or the discharge of employes. The state or any political sub-division thereof, or any person, firm, association or corporation, when injured or threatened LABOR AND ITS RESPONSIBILITIES 611 with injury by anything forbidden in this act, shall be entitled to all of the appropriate civil remedies in law and equity." This bill is not framed with the intention of depriving men of the right to strike when that apepars the only way to meet the economic pressure exerted by the employers, but it is framed with the purpose of instilling into the mind of organ- ized labor a proper sense of responsibility for acts which will cause harm or damage to other parties involved in a labor con- troversy. The bill does not declare any acts criminal, nor does it impose on any department of justice the burden of enforcing the law. It simply affords the persons injured by such for- bidden acts an opportunity to stay the injury by an injunction, or to recover damages in some court of justice. It will, if enacted, assist in building up among the members of the unions that sense of responsibility which is essential to the proper conduct of union affairs. If industrial strife is ever to be brought down to sane limits, it must be done by enforcing responsibility. No single class must be permitted to run wild beyond the reach of the law. If there must be collective action, then let us so frame our laws that there will be collective responsibility. 512 PROCEEDINGS OF AMERICAN MINING CONGRESS PRESENT CONDITION OF THE GOLD-MINING INDUSTRY By GEORGE E. ROBERTS Vice-President, City National Bank, New York I acknowledge the invitation to make an address before The American Mining Congress at St. Louis, beginning November 17, or to send you a paper upon the serious situation in which the gold-mining industry is now involved. I recognize that the state of that industry is a matter of public concern, and doubt if there is a general appreciation of the fact. Gold Obligations Demand Gold Gold is our standard of value and the money of bank re- serves. The entire body of outstanding indebtedness, public and private, including the Liberty Bonds recently issued, is payable in gold coin of the present weight and fineness. The nearly $10,000,000,000 of loans which the United States Gov- ernment has made in the last two and one-half years to foreign governments are payable in this gold coin. The outstanding indebtedness of nearly the entire world is contracted in gold. Outside of Asia, gold is still recognized everywhere as the unit of value and the basis of monetary systems, although in many countries the stress of war conditions and the unbalanced state of trade have compelled a suspension of gold payments. All of these countries regard such suspension as temporary, and desire to get back upon the gold basis and establish their cur- rencies in fixed relations to gold at the earliest possible date. Maintenance of Universal Gold Standard The gold standard the world over was reached through a gradual process of evolution, as the development of commerce and financial relations made it more and more important that there should be a common basis of values and that fluctuations in exchange rates should be reduced to the narrowest possible range. The present chaotic state of the exchange and the obstruction which present rates offer to trade illustrate the services of a universal standard of value in the form of a trans- PRESENT CONDITION OF GOLD-MINING INDUSTRY 513 portable commodity, which can actually be transferred in set- tlement of international balances. Criticisms of the gold standard are largely silenced in the presence of the disorder which has resulted, from the fact that under conditions highly abnormal the gold standard for the time being is partially inoperative. The first great task in financial reconstruction is to get the recognized international standard back to functioning normally. It would be poor policy to add to the confusion by attempting to introduce new and complicated substitutes at this time. Gold Mining Not a Casual Industry It is fundamental to the re-establishment of the gold stand- ard as the basis of world intercourse that gold mining shall go on at something like the normal rate. This requires that pros- pecting, exploration and development shall be carried on con- tinually and that the industry shall invite investment upon terms fairly competitive with other industries. Gold mining under modern conditions is not an industry into which or from which capital can readily be shifted. It takes a long time to find and develop a good gold mine. It is not a casual industry, which can be suspended and resumed without serious inter- ference with the volume of production. A considerable portion of the output always is obtained on a small margin of profit, and if such operations are suspended and the mines fill with water, they are likely to be abandoned permanently. The Failing Gold Production It is well known that the gold-mining industry all over the world has been affected very seriously by the rising costs of the last few years, and this is especially so of gold mining in the United States for several reasons. Wages have not risen as much in South Africa and some other countries where native labor is mainly employed as in this country. Moreover, the South African operators, instead of being required to sell their 4 product at the Royal Mint or Bank of England at the coinage rate, as during the war, are now allowed to dispose of it as they please, and they are able to take advantage of the high ex- change rates prevailing and thus obtain a premium, which at present amounts to 10 per cent, or better over the mint price. S14 PROCEEDINGS OF AMERICAN MINING CONGRESS The United States is almost the only gold-producing country in which the producers are not able to obtain a premium above the mint price. In the United States the producers of gold have had to com- pete with the demand for labor in copper and coal mines and in other industries, and pay the high prices prevailing for all the supplies required in mining operations, and they have been unable to realize any more than the fixed coinage value for gold $20.67 per line ounce. They have had no compensation for the rising costs, and as operations have become to a great extent unprofitable, production is failing rapidly. It declined from $101,035,700 in 1915 to $68,646,700 in 1918, and compe- tent authorities estimate that it will not exceed $55,000,000 this year. It certainly will continue to decline unless conditions change. Increased Gold Consumption in Arts and Trades On the other hand, the mania for free buying and high living through which we are passing causes a larger consumption of gold in manufactures than ever before known. The United States Mint service is the principal source of supply of gold bullion for manufacturers, as it prepares fine bars in suitable sizes for the purpose. For the year 1914 the Director of the Mint estimated the total consumption of gold in the arts in this country at $45,520,018. Sales of bullion to this time (Novem- ber 15, 1919) indicate that for 1919 the consumption will be nearly if not quite $65,000,000, exceeding by $5,000,000 to $10,000,000 the production of gold from the mines. Gold the Limitation of Credit When it is considered that gold is the money of bank re- serves, and the basis of bank credit, it will be realized that here is a factor which definitely limits the expansion of credit. The member banks must have credit at the Federal Reserve banks up to a certain percentage of their liabilities and every loan that is made increases their liabilities. They are now in debt to the Federal Reserve banks in the sum of $2,600,000,000. The Federal Reserve banks must keep a certain percentage of cash against their liabilities, and every loan they make to their member banks increases their liabilities. The system, as a PRESENT CONDITION OF GOLD-MINING INDUSTRY 515 whole, is not up to the limit of possible expansion, but it is nearer than conservative financiers like to see it, and for that reason the authorities have taken steps to discourage further expansion. That they are justified in adopting this policy there can be no question. Bank loans have been expanding in recent months while, as the result of gold exports, the reserves have been falling, and we face the fact that there can be no replen- ishment from our own mines. Deflation Will Lower Prices Now it may very well be said that the volume of bank credit ought not to be increased ; that it was abnormally swollen by the Liberty Bond flotations and other extraordinary conditions of wartime, and ought rather to be reduced. I agree with this view. I am not one of those who accept the present level of wages and prices as permanent. The whole situation is highly inflated, due to the injection of a great amount of bank credit which has been forced into circulation, serving as purchasing power and diluting the value of money. The Federal Reserve Board states that over $6,000,000,000 of Government paper is held by the banks as collateral for loans. The people who subscribed for these bonds have not paid for them, and the credit thus created is in circulation, checked from bank to bank, and the effect upon prices is precisely the same as though the Government had issued paper money to pay its expenses. This situation will not be corrected until these loans are paid off from savings and the credit actually extinguished. This is what should be done, and obviously it would reduce the volume of bank deposits and also reduce the reserve requirements. Nevertheless, it can be done only gradually, and it must be con- sidered that the growth of population and business calls for a natural increase all the time in the volume of credit and amount of reserves. The Need for a Healthy Gold-Mining Industry As I view it, the country can get along without any increase of banking reserves for several years, while this state of infla- tion is gradually being reduced, but it would be a very serious matter to have the gold-mining industry permanently crippled in that time. I fear that a low production of gold and an un- 516 PROCEEDINGS OF AMERICAN MINING CONGRESS favorable outlook for the industry at a time when credit was being curtailed and prices lowered would have the effect of reviving all the monetary heresies of the past. We want to stand by the gold standard ; it is the sheet-anchor of enduring prosperity; but ihe gold standard will require a healthy gold- mining industry to sustain it. As in every economic situation, there is a natural remedy, but it takes time. Gold mining in this country will dwindle down to very small proportions and the steady consumption in the arts will be drawn mainly from bank reserves, although the latter will be replenished by importations while the exchanges are in our favor. If the exchanges should turn against us, we would lose by exportations. The same influences, although not so powerful in some other fields, will diminish production everywhere, and the general effort to get back upon the gold basis will restrict credit and turn prices downward until gold production becomes profitable again. Aside from the loss in- flicted upon the industry in the meantime, the serious matter is that the industry may be a long time getting back into its stride. While the banking situation can easily stand restriction for several years, and needs it, we cannot be indifferent to the fate of the industry. Gold Exported for Manufacturing Purposes It is a hardship to the producers that the consumers of gold in jewelry and other manufactures should be supplied at less than the cost of production. Such is not the case now any- where else, except as manufacturers get their supplies from the United States Assay Office at New York. The Canadian manufacturers get their supplies here, and since our embargo upon gold exports was raised, approximately $4,650,000 has been taken out for manufacturers in England, France, Switzer- land, ^Sweden and some other countries. This movement has fallen off since Great Britain gave the South African gold pro- ducers the privilege of disposing of their gold as they pleased. It has been the policy of the United States Government to sell gold bullion in small bars through the mint service, in order to discourage the melting of coin. We have no law against the melting of coin, as is the case in England and most other coun- tries. Of course, with our great store of gold coin freely avail- PRESENT CONDITION OF GOLD-MINING INDUSTRY 517 able it is impossible to raise the price of gold bullion, but if our coin stock could effectively be protected, bullion immediately would cease going to the mints and be salable at a premium. There are obvious objections to having gold bullion go to a premium, but I think at the moment, when all the rest of the world is in that situation, the chief one is sentimental. People are startled at the suggestion that the value of gold bullion might openly be disassociated from the value of gold coin, but that is the situation in England and nobody now pays any attention to it. Even in this country, both coin and bullion would have commanded a premium during the war if it had been obtainable for export. The truth is that the value of gold is now disassociated from the value of all other commodities. It is not the real standard by which values are measured. The problem is to restore it as the standard, and meantime we may well consider whether the gold-mining industry may not some- how be tided over the crisis for the sake of future usefulness. 518 PROCEEDINGS OF AMERICAN MINING CONGRESS GOLD EXCISE AND PREMIUM PROPOSAL By JOHN CLAUSEN, Vice- President, Chemical National Bank, New York A great man once said "Necessity opens our eyes to the advantage of fresh principles," and, as I see it, this is now the position in which we as other nations find ourselves. The greatest war the world has ever seen has so altered conditions that methods and customs different from those heretofore known or used necessarily must take the place of the old in order to keep abreast of the new order of things. In reality, a very important issue is presented as to whether the standard of value of the world will in future be gold or become a com- bination of silver and gold, and if so, what effect such changes would have on the trading powers of nations. It is obvious that if a bi-metallic standard were adopted as media, the ques- tion of the value between the metals themselves would become one of vital concern. Then again, for the actual needs of people there may be a scarcity of gold circulating as money for trading purposes, or as affecting the position of governments and banks and the availability of that precious metal in proportion to liabilities. Financial Status After Civil War There are many interesting angles from which to view this important subject, but it may be of general benefit here to re- count what happened in this country during and after our Civil War. As an inevitable result of government policy which had placed upon the banks a burden too heavy for them to carry, the financial institutions in New York and other sections were, during the Civil War, forced to discontinue specie payments, which subsequently brought about the suspension of the National Treasury. At the beginning of 1862 a bill was introduced which had for its purpose the making of government notes legal tender, and although that measure was considered unconstitutional, it GOLD EXCISE AND PREMIUM PROPOSAL 519 became law in February of the same year. The issue of green- backs payable to bearer, after several amendments of the bill, was authorized up to a maximum of four hundred million dollars. When the greenbacks were put out it was expected that they would circulate at par with the gold dollar, contain- ing 23.2 grains of pure metal, but a year after the first Legal Tender Act had been passed, paper money had an exchange value equal to only 14.5 grains of gold. Its value rose in August, 1863, to 18.4 grains, but fell in July, 1864, to 9 grains, which appears to have been its lowest point. The premium on gold was then such that a dollar in paper money was not worth more than 36 cents in gold coin. The most striking example of profiteering during that period was the Black Friday Conspiracy of September 24, 1869, when a group of speculators bought up large quantities of gold creating an artificial scarcity and as a result that commodity could only be obtained from this clique at ruinous terms. This brought about many failures, and to check gambling in gold and reduce the premium on it, the Anti-Gold Law was passed, but as it did not materially bring the premium on gold to a lower level, it was very soon repealed. In June, 1862, Congress authorized the use of "Postage and other stamps of the United States" as money because of the demand for small currency, notwithstanding the circulation of the so-called "Shinplasters," which were issued in denomina- tions of 5, 10, 20, 25 and 50 cents. In some of the Western States attempts were made to main- tain specie payments after they had in the main been given up in the Eastern States but California alone had the distinc- tion of remaining on a sound metallic basis during the Civil War. In New York some of the banks felt confident of ability to continue paying cash, but none did if the records are com- plete with the exception of the Chemical National Bank. The fact that this bank did not suspend specie payments either in the panic of 1857 or in the general disaster of 1861, and thaf it continued to redeem its pledges in gold for 12 years after the government had begun to dishonor the demand notes of the nation, is a fact well worth recording. It was not until 1876 that gold again sold at par throughout the United States. 520 PROCEEDINGS OF AMERICAN MINING CONGRESS The Panic of 1893 Since that period the more notable event was the panic of 1893, which was followed by a depression throughout the nation, with the result that a large amount of gold was drained from this country to Europe. The Treasury's reserve became so low in November, 1894, that a sale of government bonds was resorted to ; in fact, the stock of coin was reduced to such an extent that there were outstanding more gold notes than coin, leaving a part of the certificates represented by bullion in the form of bars. Again, during February, 1895, and also in July of the following year, strong syndicates headed by lead- ing bankers in New York accomplished the difficult task of bolstering up the finances of the United States Government and it was largely due to their activities that the United States remained on a gold basis. The success of these combinations had a far-reaching influence on business, and as soon as it was seen that the gold obtained from abroad was not going to be lost at once as in previous bond sales, confidence was again revived and the financial position of the United States improved so favorably in the eyes of Europe that it was possible to float large holdings of American securities abroad. In August of 1914 Foreign Exchange became demoralized, and to remedy that situation a gold pool was created, when influential banks and bankers throughout the country joined in an agreement to provide mail and telegraphic transfers to Europe in lieu of gold for export, which proved a helpful factor in restoring order and confidence. Accumulation of Gold Reserves Prior to War For several years prior to the declaration of war in Europe the countries of France, Russia and Germany especially had been engaged in an eager competitive scramble for gold, which resulted in the holdings of their great state institutions in- crea'sing rapidly. On this account, at the outbreak of hostili- ties, we found them with what was up to that time the peak of their gold reserve. The embargo which was universally adopted clearly demon- strated the desire of every commercial nation to control and retain its supply of gold. As far as the United States was con- cerned, other than the necessity of obtaining government per- GOLD EXCISE AND PREMIUM PROPOSAL 521 mission to export gold in coin or bars, its circulation in this country has not been restricted although the efforts of banks and individuals alike have been directed toward harmoniously co-operating with the government in concentrating the nation's supply with the Federal Reserve Banks. One of the most curious economic features of the present situation is the strong light which it has thrown on the fact that it is possible to have too much of a good thing, even when that thing is gold. This is forcefully demonstrated if we glance at the financial position of the Scandinavian countries, where the law has been carried so far as to relieve the government banks of the statutory obligation to buy gold and coin it for all those who bring it in. This naturally prevented other countries dealing with Scandinavia from paying for purchases in gold, and the barter of commodities was the only means open for concluding commercial transactions. It has lately been said that the world is divided into two classes of countries those which decline to accept gold and those which refuse to part with it. Sometimes it is asked how anyone can possibly refuse to take gold in payment, but this is explained by the statement that gold in bars or foreign coins is not legal tender anywhere. No person in Scandinavia, for example, could be made to take gold bars or American Eagles in reimbursement for goods to meet a required payment in legal tender currency of Denmark, Norway or Sweden. Europe to Sustain Gold Standard The issue and circulation of paper credits throughout the leading nations of the world has been proportionately far greater than their holdings of gold and this state of affairs has naturally resulted in inflation on an alarming scale. The thought, however, that European nations may possibly repu- diate part of their war debts for the sake of reducing the amount of currency outstanding against government bonds or notes is obviously superficial. Finance has become an inter- national, rather than a national question and the monetary history of any country tends to become more and more merged with that of the whole civilized world. International credit is firmly established on a gold basis and no country has any interest in upsetting the present standard, 522 PROCEEDINGS OF AMERICAN MINING CONGRESS although it is contended that notwithstanding a great produc- tion of new gold, it may not necessarily assure universal gold standardism, as it would be a mere drop in the bucket of our future needs. If the world's credit, therefore, is to be carried on with gold, every ounce that can possibly be produced will be required as a basic foundation upon which international and national finance has been reared. Production of Gold a Vital Necessity The production of gold is a vitally essential industry which, for obvious reasons, should be promoted to the fullest extent. It is very apparent, however, that with a fixed value for the yellow metal, together with the rapidly increasing cost of ma- terial, labor and transportation, this particular industry as now developed is seriously affected and it would seem inevitable that unless some form of government relief is given to the pro- ducing mines, many of them will be compelled to discontinue operations. In a letter addressed to the Hon. Charles A. Sulzer relating to the present conditions concerning the production of gold in Alaska, the Secretary of the Treasury clearly voiced the atti- tude of our Government when he stated : "I fully appreciate that with the rising cost of raw material and labor and with a fixed value for their output, the gold mines are facing difficult conditions. I should be sorry, however, if for this reason there was any relaxation in the effort to produce gold. At no time has this country so much required the largest possible produc- tion of gold as at present. * * * In order to place the enormous amount of government bonds required to finance our war expenditures, a large credit structure will inevitably be erected upon our gold reserves, and it is necessary that these reserves which are the foundation of the structure shall be maintained on the broadest possible basis." r Monetary Price of Gold Will Remain Fixed There are people who argue that if the government would agree upon a plan to increase the value of gold from $20.67 to, say, $30 or $40 a fine ounce it would make a settlement of obli- gations possible with only half the metallic requirement other- wise necessary to redeem outstanding paper credits. Thia GOLD EXCISE AND PREMIUM PROPOSAL 523 course, radical to say the least, would have a disastrous effect upon all credits, and especially reflect upon the cost of living, which, in all probability, would climb to limits beyond the reach of the average citizen. Increasing the value of gold or giving it a premium does not necessarily give it a higher pur- chasing power, but, on the other hand, in the final adjustment seriously disrupts the basis of international credit. When peace is finally restored all the world will be faced with a period of great financial and industrial uncertainty, and to pass through it successfully will be a task that will need all the statesmanship civilization can muster. To increase this uncertainty by tampering with the standard of international payment would be an extraordinarily futile means of handling the situation and only make the confusion worse confounded. The principal nations of the world have adopted gold as the basis of their currency system. The monetary price for it is everywhere the same and equally certain at the standard price of $20.67 a fine ounce. It may be an anomaly that economic civilization should depend for means of payment on the supply of a particular metal, but it will take much ingenuity to find a practical substitute for gold and secure for it the popularity and confidence that this precious metal commands. The mere fact that it has been chosen by the most enlightened commer- cial nations is strong proof that it is the best single commodity for practical use as a standard. The Increasing International Demand for Gold The disproportionate distribution of gold among world na- tions attracts attention to the study of the part that this metal plays and is to play in future in the world's economic affairs. It is apparent to the careful observer that the pace at which the production of gold increases is not as fast as the rise in value of the world's wealth. The vast obligations piled up by the nations, the huge issues of paper currency, the refunding of debts and resumption of specie payments are among the most urgent and difficult prob- lems with which the world is now confronted. This makes it only too apparent that gold is a necessity for the credit and financial unity of nations and it is essential that an adequate foundation of gold be created to uphold that system. 524 PROCEEDINGS OF AMERICAN MINING CONGRESS One of the first acts of the British Government after England was plunged into war was to insure that the gold turned out of her mines should be safeguarded, and steps were taken for the deposit of new holdings in Canada, South Africa and Australia to the credit of the Bank of England. This arrangement had many advantages and tended greatly to facilitate the concen- tration of the metal where it was most needed for the settle- ment of liabilities, and Great Britain has in this way used her gold unsparingly to meet immediate obligations. The enormous increase in credits and paper money circu- lating in every country of the globe is reacting very materially on the present and prospective supply of gold, and it would seem timely to briefly review its relative influence on prices in general, which in normal times zigzag to meet the demand for and the supply of credit and gold. If, for instance, prices and wages are increased, so far as they are paid in gold, it will require a proportionate amount of money to meet the higher costs. It follows as a matter of course that a large circulation of money is required to meet the demand. While the quantity of gold available as money is seen to exert an influence in the direction of raising or lowering prices, it would seem equally certain that as international commerce progresses and the system of credit expands, an increased world's supply of gold is a matter of vital importance. It is true that, in practice, many transactions of buying and selling are set off one against another, but there can never be a system of finance carried on in any country, operating under a gold standard, without a basis of money somewhere. Decline in Gold Production a Serious Financial Menace The tendency to a further rise in prices is likely to continue for several years ; the increase in the cost of living and the im- portance of adjusting wages to prices; the increasing obliga- tions of nations extending over long periods ; the problem of a universal standard of values; the development of commerce and banking; the growth of population and wealth are ques- tions which are becoming of increasing importance as time runs on. With the falling off in the production of gold and a material rise in gold prices a very serious state of affairs is presented which is likely to affect the international economic position of all peoples. GOLD EXCISE AND PREMIUM PROPOSAL 525 Endorsement of Gold Excise and Premium Proposal It would seem very important, not only on account of our internal economic position, but also because of our position in international trade, to protect the monetary gold reserve of the United States from excessive withdrawals for other than mone- tary uses. Statistics of this year indicate that the consumption of gold in the arts and trades will exceed the production of new gold in this country. I have carefully analyzed the legislative proposal suggested by The American Mining Congress for the consideration of Congress to create a fund by imposing an excise upon the man- ufacture and sale of gold used for other than monetary pur- poses, this fund to be utilized as a premium to producers of new gold in order to stimulate production. This plan would seem a practical solution of the complex problem with which the gold-mining industry is now confronted, since it eliminates monetary entanglements and reduces the subject to the sale of gold as a commodity in its manufactured state. It would seem that such stimulation of the gold-mining industry would insure a sufficient supply of gold to the trades and at the same time protect the gold reserve. The soundness of this proposal should commend itself to the favorable consideration of Congress, and on account of the immediate need for constructive relief, it is to be hoped that the passage of this legislation will be expedited. 526 PROCEEDINGS OF AMERICAN MINING CONGRESS A PROPOSED SOLUTION OF THE COMPLEX GOLD PROBLEM i By H. N. LAWRIE, Chief Precious and Rare Metals Division, American Mining Congress At the annual convention of the American Bankers' Associa- tion, the following resolution was adopted unanimously on October 2, 1919 : WHEREAS, The gold production of the United States, which declined so rapidly during the war period, has since the signing of the armistice still further declined because of the extreme economic pressure to which the gold-mining industry has been subjected, and WHEREAS, Gold is the standard of value and the basis of all credit, and it is vitally important to the financial and commercial life of the nation that the monetary reserve be protected, now, therefore, be it Resolved, That the American Bankers' Association, in conven- tion assembled, respectfully requests and urges upon the Govern- ment of the United States the desirability of maintaining the domestic production of new gold in sufficient volume to satisfy the present anticipated trade requirements for this metal, and asks that steps be taken immediately to that end, and be it further Resolved, That the secretary of this Association be, and hereby is, instructed to send a copy of this resolution to the President of the United States, the Secretary of the Treasury, and the members of the Senate and the House of Representatives of the United States, advising them of its adoption, and be it also further Resolved, That, considering the great importance of this sub- ject, this convention recommends to the Executive Council that the matter be referred to the Federal Legislative Committee and the Currency Commission for an exhaustive study and such action as may be deemed necessary. It will be recalled that, on September 27, 1918, the American Bankers' Association passed a resolution urging the Govern- ment to take steps to maintain the normal production of gold in the United States. At that time, a war emergency existed and it was anticipated that it would be necessary greatly to expand the credit structure of the United States. A PROPOSED SOLUTION OF THE GOLD PROBLEM 52T A year has passed since the armistice was signed, and this same organization adopts a resolution which is far more specific and emphatic with regard to protecting the monetary reserve from depletion by other than monetary uses. It is evident that the bankers have decided that the financial requirements of reconstruction and the re-establishment of international trade on a sound basis make it as necessary now to protect the mone- tary reserve from unnecessary depletion as it was when the country was under the pressure of war. The bankers are informed that the mine production of gold in the United States has decreased in the last three years some 33 per cent., and that the economic pressure generally has be- come more intense during 1919, which will result in a corre- sponding decline in the output of the metal for this year; they know that the consumption of gold in the arts and for manu- facturing purposes will exceed the production of new gold this year and that for next year the production will fail by a wider margin to meet the trade requirements unless something sub- stantial is done to balance the economic equation of the gold- mining industry ; they know that unless the production of new gold is sufficient to satisfy manufacturing requirements, there are but two alternatives, namely : 1. That gold now in the monetary reserve, dedicated to mone- tary use, will be withdrawn for the manufacture of jewelry, etc., and will, therefore, lose its monetary utility. 2. That sales of gold for manufacturing purposes will have to be curtailed or discontinued, which will threaten the very life of the manufacturer and consumer of gold. The bankers realize that neither of these alternatives is desirable, but insist that the monetary reserve be protected from industrial consumption and that the Government take steps to stimulate the production of new gold to completely satisfy all manufacturing requirements. To stimulate the domestic production of gold without altering the monetary unit a change which for financial and economic reasons can- not be considered is the problem which now confronts the consumers no less than the producers of gold. This resolution of the American Bankers' Association specifically assigns a definite responsibility to this, the third National Gold Confer- ence, which has been called to develop a constructive solution of this most complex and important national problem. 528 PROCEEDINGS OF AMERICAN MINING CONGRESS A careful study of the following facts with reference to the present monetary status of gold, the production of new gold, and the consumption of gold in the arts and manufactures, should prove helpful in the formulation of a constructive national policy, which will at one and the same time protect the monetary reserve, stimulate the gold production of the United States and thereby insure the consumers of gold a sufficient supply. The Decline in United States Gold Stock and Gold Ratio of the Federal Reserve Bank In accordance with the Circulation Statement of the Treasury Department, the general stock of gold coin on July 1, 1919, (including bullion in the Treasury) , amounted to $3,095,077,- 467, and on October 1, $2,905,726,555, a net loss to the mone- tary gold reserve of $189,350,912, or 6.1 per cent. This indi- cates how rapidly and to what extent the total monetary gold reserve of the United States has contracted. The statement of the Federal Reserve Bank of New York shows that on June 6, 1919, the total gold reserve was $766,- 149,538, and on October 17, 1919 19 weeks later it amounted to $552,495,772, a decrease of approximately 28 per cent. The reserve notes of the New York Reserve Bank in circulation increased about 3 per cent, in this same period, while the net deposits declined some 10 per cent. The legal requirements under the Federal Reserve Act are that 35 per cent, of the net deposits and 40 per cent, of the Federal Reserve notes in circu- lation shall be gold. The Federal Reserve Board first sets aside 35 per cent, of the deposit liabilities, and the remainder of the reserve gold is then computed in terms of the Federal Reserve notes in circulation. On October 17, the remaining gold reserve, after having satisfied the deposit liabilities, in accordance with the above formula, amounted to but 39.9 per cent, of the Federal Reserve notes in circulation, which is below the legal requirement, one-tenth of 1 per cent. This may be attributed to a shrinkage of 28 per cent, in the gold reserve and the expan- sion of reserve notes in circulation by some 3 per cent., while had a decrease of some 10 per cent, in net deposits not occurred, the situation would have been still more critical. It is evident that the credit expansion due to increasing the currency in A PROPOSED SOLUTION OF THE GOLD PROBLEM 529 circulation exceeded on October 17 the legal gold reserve mini- mum for the Federal Reserve Bank of New York. The decline in the gold ratio of the entire Federal Reserve system has been progressive from week to week for some time past, thereby rapidly and consistently approaching the legal gold reserve limit. The time, therefore, has arrived when not only the currency in circulation should gradually be contracted, but also the monetary gold reserve should be very cautiously guarded against depletion by other than monetary uses. While it is beneficial to our international trade to send foreign countries as much gold as good finance will permit, the effect will be correspondingly to reduce the gold reserve of the Federal Reserve Bank, upon which net deposits and bank notes in cir- culation are based. This process is one of healthy financial rehabilitation of the countries with whom we desire to trade and of depletion of our own gold reserve. It is evident that, as the volume of currency is contracted, more gold may safely be spared for export without injury to our domestic financial position. United States Imports and Exports of Gold It will be observed from Table 1, Chart 1, that the United States had imported gold in the amount of $1,114,359,161 in excess of the exports during the three years ending June 30, 1917. Since our entrance into the war, the flow of gold out of the country has been continuously in excess of the amount coming in, so that, for the fiscal year ending June 30, 1918, the gold balance against the United States was $66,438,741 ; for the fiscal year ending June 30, 1919, $54,211,802; and for the first quarter of this fiscal year 1919-20 (the months of July, August and September), the amount was $123,104,399, making a total drain upon our gold resources of $243,754,942 up to September 30, 1919. The gold balance in favor of the United States on June 30, 1917, amounting to $1,114,359,161, therefore, had been reduced to $870,604,219 on September 30, 1919, or about 22 per cent. The black area marked "A" on Chart 1 graphically rep- resents the extent to which we have exported gold in excess of our imports, while the area "B" represents the gold balance 530 PROCEEDINGS OF AMERICAN MINING CONGRESS in favor of the United States during the period before our entrance into the war. It is important to note that, since the embargo on the expor- tation of gold was removed, we have shipped out of the country in these last three months of July, August and September, $128,913,011, and have imported but $5,808,612, recording a net loss of the gold held in the United States of $123,104,399, CHART 1 TABLE 1 Gold Imports and Exports of the United States 1913-14 1914-15 19(5-16 1916-17 1917-18 1948-19 of which amount $50,532,913 was sent to China, Hongkong and British India. Approximately 40 per cent, of the entire gold exports from the United States to foreign countries during this period was sent to countries from which the possibility of its return is extremely doubtful. Every effort should be made to limit the gold sent to countries that are known to hoard gold, A PROPOSED SOLUTION OF THE GOLD PROBLEM 531 in order that our monetary gold reserve may be conserved for monetary purposes. It has just been reported that Colombia and Salvador have passed new currency laws, making United States gold coins legally current as a medium of exchange in those countries. The trade balance with Colombia for 1916, the latest year reported, was against the United States in the amount of some $12,000,000. It is, therefore, anticipated that our gold coin and TABLE 1 CHART 1 Gold Imports and Exports of the United States Fiscal Years 1914-19 and the First Quarter, 1919-20 Years Ending June 30 1913-14 Exports $112,038,529 Imports $66,538,659 Gold Balance Against U.S. $45,499,870 Gold Balance in Favor U.S. 1914-15 146,224,148 90,249,548 291,921,225 171,568,755 494,009,301 977,176,026 $ 25,344,607 403,759,753 685,254,801 1915-16 . 1916-17 Total three war years, 1914-17 528,394,921 190,852,224 116,575,535 1,642,754,082 124,413,483 62,363,733 1,114,359,161 1917-18 66,438,741 54,211,802 1918-19 Total five years, 1914-19 Istfiscal quarter, 1919-20 Total five years and one quarter. 835,822,680 128,913,011 1,829,531,298 5,808,612 120,650,543 123,104,399 993,708,618 964,735,691 1,835,339,910 243,754,942 870,604,219 Statistics of Bureau of Foreign and Domestic Commerce. bullion will be sent to that country in order to liquidate the trade balance which probably will continue in favor of Colom- bia. This fact is pointed out merely to indicate that many countries are finding it more expedient than ever before to adopt the same monetary vocabulary as has become the finan- cial code of the larger nations of the world. There are other 532 PROCEEDINGS OF AMERICAN MINING CONGRESS countries now on the silver basis which no doubt will soon find it necessary to adopt the gold standard in order to accommo- date themselves to the new era of international trade. These citations foreshadow a larger international monetary use for gold. Decline in Gold Production The gold production of the world reached its high point in 1915 at $469,000,000, and, according to a very recent estimate, production for 1918 amounted to $374,000,000, a decline of '$95,000,000, or approximately 20 per cent. Reports for 1919 from South Africa and other foreign gold-producing countries indicate that the decline for this year will be still more acceler- ated. Our chief concern in the gold production of foreign countries lies in the fact that, when the gold production de- clines there is less new gold to find its way into the monetary reserves of the countries with whom we are transacting busi- ness, and many of whom are in debt. This fact makes it still more important that we should find some constructive means to maintain our normal pre-war gold production, in the hope that by the same means other nations may be able to maintain their normal production during this economic crisis. In this same period, the mine production of gold in the United States had declined from $98,000,000 in 1915 to $66,- 000,000 in round numbers in 1918, or some 33 per cent. On account of the continued increase of commodity prices, the in- creased inefficiency of labor in 1919, and the anticipated decline in- the base metal output of by-product gold, the mine produc- tion of gold for 1919 is estimated at some $55,000,000. It is generally known that the copper and lead industries of the United States have been operating on about a 65 per cent, basis for 1919, which will occasion a decline in the by-product gold output. The shutting down of the Homestake mine, which pro- duced in 1918 gold in the amount of, roughly, $6,000,000, be- comes another important item to take into consideration in estimating the gold output for this year. Gold Consumption in Manufactures and the Arts It will be observed from Table 2, Chart 2, that from 1908 to 1914, inclusive, the consumption of gold in the arts shows a A PROPOSED SOLUTION OF THE GOLD PROBLEM 533 progressive increase from $31,476,091 in 1908 to $45,520,032 in 1914, an increase of $14,043,941, or about 44.6 per cent. In the year 1915, due to the uncertainty as to what responsi- bilities we would have to assume in the war, and the general business lethargy, the gold consumed in the trades declined some $18,000,000 to $37,820,027. At the beginning of 1916, gold began to flow rapidly into this country, together with a large volume of war orders, which stimulated the pulse of our entire industry and made for gen- erally prosperous times. For 1916 and 1917, the gold sold for use in manufactures and the arts was $51,061,187 and $52,915,- 641, respectively. On account of this tremendous increase over 1915 of some 40 per cent, for each of those years, our financial authorities suspected that gold was being hoarded, and, in 1918, when the nation was confronted with large and uncertain financial responsibilities, placed an embargo on gold and issued restric- tions with reference to allocating gold to the trades. This ac- counts largely for the low consumption in 1918 of $40,318,880, a decrease from 1917 of some $12,500,000, or more than 25 per cent. The United States Assay Office at New York had sold gold for domestic manufacturing purposes in the sum of $46,912,895 up to October 24, 1919, and of $4,589,372 for export for manu- facturing purposes. This is the first time that gold has been sold by this office for export manufacturing purposes, and indi- cates the precautions which are being taken by foreign coun- tries to protect their reserves from depletion by other than monetary uses. These actual sales made by the superintendent of the New York Assay Office, together with his estimate of sales for the remaining period of the year, total $61,702,267. To this total must be added the sales of gold made at the other mints of the United States for use in manufactures and the arts, in order to obtain the conservative estimate of $65,000,000 for the trade consumption of gold for 1919. This total repre- sents an increase of $25,000,000 over 1918, or about 62 per cent. The gold coin which was destroyed by a large number of smaller manufacturing jewelers, who could not purchase the minimum amount of $5,000 worth of gold bars sold by the mint, is not included in this estimate. Ever since 1885, the sum 534 PROCEEDINGS OF AMERICAN MINING CONGRESS of $3,500,000 has been allowed by the United States Mint to represent the United States gold coin destroyed for manufac- turing purposes. There is little question but that an exact can- vass of the situation would show that this amount has been greatly exceeded in recent years. In the opinion of many familiar with the jewelry business, the estimate of coinage CHART 2 TABLE 2 United States Mine Production of Gold and Gold Furnished for Use in Manufactures and the Arts. 1908 1909 1910 1911 1912 1913 1914 1915 1916 1917 1918 1919 destruction should not be placed at less than 10 per cent, of the actual sales, or $6,500,000 for 1919, while others are inclined to believe that it may far exceed this figure. However that may be, taking the exact sales as a basis for comparison, the gold consumed in manufactures and the arts this year will exceed the mine production of new gold by some $10,000,000, and, if the destruction of coin be included, in excess of $15,000,000. This negative monetary surplus, representing the shortage of A PROPOSED SOLUTION OF THE GOLD PROBLEM 535 newly produced gold for 1919 in comparison with the gold con- sumed in manufactures and the arts, is graphically shown on Chart 2 by the solid black area to the extreme right of the chart. It is interesting to know some of the reasons for this recent increase in the consumption of gold in the arts. TABLE 2 CHART 2 United States Mine Production of Gold and Gold Furnished for Use in Manufactures and the Arts. Calendar Years 1908-1919 Calendar Years Total Mine Production. 1 Total Consumed in Arts, etc. 2 Monetary Surplus. 3 1908 $91,682,953 $31,476,091 $60,206,862 1909 99,189,947 37,628,769 61,561,178 1910 1911 1912 94,778,348 96,860,352 92 310,296 41,787,152 40,834,292 43,977,257 52,991,196 56,026,060 48,333,039 1913 1914 89,118,410 91,329,443 45,864,066 45,520,032 43,254,344 45,809,411 1915 1916 1917 98,283,714 91,307,630 80,624,484 37,820,027 51,061,187 52 915 641 60,463,687 40,246,443 27 708,843 1918 1919 66,162,130 56,000,000* 40,318,880 5 65,000,000 25,843.250 10,000,000 1 Statistics U. S. G. S. 1908-1918. 2 Statistics U. S. Mint 1908-1918. 3 The remainder of the newly produced gold after satisfying manufacturing require- ments. * Estimated mine production 1919. * U. S. Mint sales of New York Assay Office and Philadelphia Mint. * Estimated consumption in Arts 1919 based on actual sales of Mint to October 24, 1919, and estimated sales made by Superintendent U. S. Assay Office, New York, for remainder of year. 1. The restrictions under the Embargo Act were removed, which made it possible for the jewelers to obtain an unlimited supply of gold for their use. 2. The trend of the jewelry business has been toward the larger production of machine-made jewelry, which necessitates the use of very much heavier material to work upon. 3. The trade has been unable to keep pace with the rapidly increasing .demand for jewelry and never has the demand been so great for "decorative" dental work. 536 PROCEEDINGS OF AMERICAN MINING CONGRESS Segregation of the Origin of Gold as a Basis for Estimating Future Declines The average total mine output of gold for the decade 1908- 1917 was $92,457,551, and for 1918, $66,162,130, a decline of $26,385,421, or 28.5 per cent. The average total mine output of gold derived exclusively from siliceous ores for the decade 1908-1917 was $61,189,760, and for 1918, $41,909,673, a de- CHART 3 TABLE 3 United States Mine Production of Gold in Dollars Segregated as to Origin cline of $19,280,087, or 31.5 per cent. The average total output of gold from the washing of placer gravel for the decade 1908- 1917 was $23,331,756, and for 1918, $15,695,637, a decline of $7,636,119, or 41.9 per cent. Referring to Chart 3, it will be observed that the total mine output of gold has continuously declined from 1915, while slight A PROPOSED SOLUTION OF THE GOLD PROBLEM 537 increases were recorded in the placer and by-product gold out- put for 1916 and slight decreases in both of these sources of gold for 1917, showing beyond question that the decline for these two years was due entirely to the depreciated output from siliceous ore operations. This condition may be attributed to TABLE 3 CHART 3 United States Mine Production of Gold in Dollars 1 Segregated as to Origin Calendar Years 1908-18 Calendar Year Total Mine Output Siliceous Ore Output Per Cent, of Total Placer Output Per Cent, of Total Base Ore By-product Gold Per Cent, of Total 1908 91,682,953 59,578,704 65 25,617,373 28.0 6,486,876 7 1909 99,189,947 64,341,781 64.9 27,036,705 27.2 7,811,461 7.9 1910 94 778 348 65 313 092 68 9 22515 889 23 8 6 949 367 7 3 1911 96,860,352 66,369,199 68.5 23,415,168 24.2 7,075,985 7.3 1912 92,310,296 62,111,916 67.3 23,019.633 24.9 7,178,747 7.8 1913 89,118,410 59,222,751 66.4 22,238,424 25.0 7,657,235 8.6 1914 91.329,443 60,793,236 66.6 23,109,683 25.3 7,426,524 8.1 1915 98,283,714 66,404,089 67.6 22,272,501 22.6 9,607,124 9.8 1916 91,307,630 57,799,310 63.3 22,881,663 25.1 10,616,657 11.6 1917 80 624 484 49 963 517 62 21 210 587 26 3 9 450 379 11 7 Average, 1908-1917 92,547,551 61,189,760 66.1 23,331,756 25.2 8,026,035 8.7 1918... 66,162,130 41,909,673 63.3 15,695,637 23.7 8,556,820 13.0 Per cent. decrease 19 18 from decade average. . Minus Minus Minus Plus 28.5% 31.5% 41.9% 6.6% U. S. G. S. Statistics. 1 Excludes Philippines and Porto Rico. the fact that the cost of labor is a larger factor in the produc- tion of gold from siliceous ore than it is in the operation of placer deposits and by-product gold would be produced regard- less of the cost, as that is borne by the base metals contained. 538 PROCEEDINGS OF AMERICAN MINING CONGRESS It is to be noted, however, that the placer output decline for 1918 from the decade average is greater than the decline of the 1918 siliceous ore output from the decade average. It is diffi- cult to account for this in any other way than that labor is very difficult to obtain and that the economic pressure has become so intense as to force the shutting down of placer operations, and that from this time on we may look for a still greater curtail- ment of output from this source unless relief is provided. The average total mine output of gold produced as a by- product from base ores for the decade 1908-1917 was $8,026,- 035, and for 1918, $8,556,820, an increase of $530,785, or 6.6 per cent. This increase can readily be accounted for by the increased production of base ores during the war period. Referring again to Chart 3, it will be observed that the pro- duction of by-product gold remains fairly constant and does not, as it would be supposed, vary directly with an increase in the production of base metals. This is due to the fact that the large tonnages of extremely low-grade ores which are being worked at the present time, and which have contributed so extensively to increase the base metal output, do not contain but infinitesimal quantities of gold. By-product gold will never greatly influence the total gold production of the United States. It is also shown by Table 3 and the corresponding chart that gold derived from siliceous ores contributed 66.1 per cent. ; gold produced from the washing of placer gravel, 25.2 per cent.; and gold resulting as a by-product from the smelting of the base ores of copper, lead and zinc but 8.7 per cent, of the total average mine production of gold for the decade 1908-1917. In 1918, due to the rapid decline in gold output of siliceous ores and from placer gravel, combined with a less rapid decline in the output of by-product gold, we find that siliceous ore gold supplied in that year only 63.3 per cent.; placer gravel gold, 23.7 per cent. ; and by-product gold, 13.0 per cent, of the total mine production. The year 1916 records the high point in the production of by-product gold at some $10,600,000, which coincides with a record production of copper in that year. The corresponding production in 1918 was about $8,500,000, a decrease of $2,- 100,000, or approximately 20 per cent. In 1919 there has been a decline in the base metal output, and undoubtedly this will A PROPOSED SOLUTION OF THE GOLD PROBLEM 539 be reflected in a reduction of the output of by-product gold for this year. It is safe to assume that $10,000,000 will be in excess of the by-product gold production for many years to come, and that this would become the maximum of the gold output of the United States in the event that mining operations dependent upon gold as the chief source of value were forced to shut down. Upon these facts and conclusions, and with the more intimate knowledge of the curtailment of tonnage and the shutting down of properties during 1919, is based the estimate of $55,000,000 as the probable mine production of gold for the United States for this year. Assuming that no relief is given the industry and that the same economic pressure is continuous for next year, with the labor situation still unsettled and its consequent inefficiency, it is estimated that the gold production for 1920 will probably not exceed $40,000,000, composed of a probably excessive estimate for by-product gold of $10,000,000, together with an output from siliceous ore and placer gravel of $30,000,000. It is evident that the conditions which produced the economic pressure which has forced and will continue to force a decline in the gold output will, on the other hand, be in favor of an expansion in the jewelry trade and the volume of gold con- sumed therein, and that, therefore, under the same economic conditions continuing through 1920, the consumption of gold in the arts probably will be more rather than less than that of 1919, $65,000,000. It is evident that there will be a shortage of newly produced gold to satisfy the manufacturing and trade requirements of about $10,000,000 for 1919 and about $25,- 000,000 for 1920. If the same economic conditions prevail in 1921, the margin of deficiency will be still greater. To this extent, therefore, we may anticipate that, without any relief, the monetary reserve would be withdrawn for manufacturing and industrial purposes, in the above stated amounts. Should the sales to the trade be limited to the production of new gold, as will certainly be made effective unless immediate and con- structive relief is provided to increase the production of gold, the trades will be unable to satisfy their full requirements for those years. 540 PROCEEDINGS OF AMERICAN MINING CONGRESS BONUS AND EXCISE A Proposed Bill to Provide for an Excise Upon the Commodity Gold and a Bonus to the Producers of Newly Mined Gold Tentative Preamble of the Bill In order to protect the monetary gold reserve of the United States, by maintaining the normal production of gold within the United States and its possessions, there shall be paid to every person producing gold from the mines within the United States and its possessions, under the terms and conditions and in the manner hereinafter set forth, $10 per fine ounce of such gold so mined, and said payments are to be made out of funds as herein provided by an excise on the use, manufacture or sale of gold in the United States for other than coinage or monetary purposes, and from other funds in the Treasury not required for specified purposes. While the general nature of the proposal for bonus and excise is set forth in the tentative preamble above, it will be necessary for the conference to discuss the many provisions which must be clearly presented in detail in the remainder of the bill. Following are some of the essential points which are suggested for consideration : 1. Amount of Bonus and Excise. An excise of 50 cents per pennyweight of fine gold upon all gold used for other than coin- age and monetary purposes would be equal to $10 per fine gold ounce of newly produced gold. Based upon the estimated pro- duction of new gold and the consumption of gold in the trades for 1919, the total bonus to be paid the producers would be one- half of $55,000,000, or $27,500,000 ; while the total excise in- come would be one-half of $65,000,000, or $32,500,000, leaving a balance in favor of income of $5,000,000. Inasmuch, however, as there is considerable foreign jewelry sold in the United States, the excise income would be swollen to the extent of that volume of sales, so that the total excise income would be large enough to allow for a considerable expansion over the estimated production for 1919, and the Government would not be called upon to pay the bonus from funds other than those directly derived from the excise on the use, manufacture or sale of gold for other than coinage or monetary purposes. It has been stated by gold producers that a bonus of $10 per ounce will be no more than sufficient to insure the production of gold to A PROPOSED SOLUTION OF THE GOLD PROBLEM 541 satisfy the anticipated trade requirements under present eco- nomic conditions. 2. Duration of Bonus and Excise. During the war, when the bonus measure was being considered, the minimum time period for which the relief should be granted was expressed by the producers as being five years. It is certain that a period of less than five years would not be a satisfactory basis upon which to invest large sums of money in the development of new ore reserves. Hence it seems reasonable that five years should be the time period for which the original bonus and excise shall be in effect. It may well be stated that on and after five years from the date of passage the bonus and excise will be adjusted in accordance with the rise or fall in commodity prices as com- pared with the average for the five-year period; this readjust- ment of bonus and excise to be made each year and until such time as the bonus and excise can be abandoned on account of the restoration of a price level which will satisfactorily main- tain the normal production of new gold to meet all industrial requirements of the arts and trades. 3. Agency of Bonus Payment. The Treasury Department probably would be the best agency to be stipulated for the pay- ment of the bonus to the producer of newly mined gold. 4. Manner of Bonus Payment. Upon the presentation to the Treasury Department of a statement from the United States Mint, verifying the number of ounces of newly mined gold, and upon the presentation of a statement from some un- biased agency (such as the United States Bureau of Mines), verifying that the gold was actually produced as a result of mining and milling, or smelting, ore, or washing placer gravel, payment of the bonus of $10 per ounce shall be made to the producer thereof. It is certain that the point will be raised as to the verification of production on the assumption that many producers will attempt to pad their bullion by the introduction of old gold, and it, therefore, becomes necessary to specify some independent agency to serve as a check with reference to the origin of the gold produced. A severe penalty will have to be provided for persons convicted of salting newly produced gold bullion with old gold. This procedure will reduce the possi- bility of fraud to the minimum, and at the same time insure justice to the producer. 542 PROCEEDINGS OF AMERICAN MINING CONGRESS 5. Agency of Excise Collection. The Internal Revenue Bureau probably would be the best agency to be stipulated in the bill for collection of the excise. The manner in which the excise will be collected will have to be worked out in detail. Probably a die stamped by the collector upon the jewelry after the excise has been paid would be a sufficient safeguard. A penalty will have to be provided for persons who do not con- form to the excise provisions of the law. Comments on the Bonus and Excise Bill This method of attack is the most direct and provides the most certain and rapid protection for the monetary reserve, by increasing the production of new gold to satisfy the present anticipated trade requirements. A very important point is that it removes the entire subject from monetary entanglements and considerations, since it deals directly with gold as a commodity. Another point in favor of this bill is that the consumer of gold in the arts and trades will be given the opportunity to pay what he should be paying to maintain the industry on a basis to satisfy his own requirements. There should be no objection made by the consumer of gold, as consumers of all other raw materials have been forced to pay in many cases even greater amounts of increase than that specified in this bill. An important advantage of this proposed bill is that it im- poses no unfair burden upon the domestic gold manufacturer, since the foreign manufacturer will have to pay the same excise upon his finished product. It also is uniform in its application to all manufacturers within the trade the small and the big alike. In the operation of this bill, it makes no difference whence the gold comes as a basis for manufacture whether it be from a foreign or domestic source, or whether it be derived from coin or old jewelry. Attention may well be called to the fact that, if the excise were placed on the bullion sold by the mint to the trades, or a certificate of sale issued to the buyers of gold at $10 per ounce, in addition to the monetary price, there would immediately spring up a speculative market in old gold, and coins would be destroyed wholesale. The provisions of this bill obviate these objections. A PROPOSED SOLUTION OF THE GOLD PROBLEM 543 The jewelry trade, by installing machinery requiring heavier material to work upon, has, therefore, found it cheaper to sub- stitute gold for labor. Many of the gold producers have found that it has cost more to produce gold than they can obtain for it. These two statements confirm the same fact, but the jeweler probably could not afford to substitute gold for labor so freely if he paid the present cost of its production. This condition is providing a profit to the manufacturer of gold to which he is not legitimately entitled, while the producer of gold sustains a corresponding loss which he cannot continue to bear. In the interests of manufacturer and producer alike, the two sides of this equation must be equalized. It seems only just that the manufacturers and other consumers of gold should pay the cost of production for their raw material, while the producers of gold must receive a sufficient price in order to continue production. 544 PROCEEDINGS OF AMERICAN MINING CONGRESS THE GOVERNMENT AND THE GOLD PRODUCER Paper by EUGENE DAVIS, of Nevada, Read by H. N. Lawrie Before the National Gold Conference The precious metal mining industry has never received from the Government the consideration to which it is entitled. It has at no time occupied an equitable relation to the Govern- ment. No well matured, constructive legislation has been undertaken in its behalf. At no time has the production of gold been so vitally necessary as at the present, and at no time have economic conditions so alarmingly lessened its production. With a trade demand and consumption considerably in excess of the present annual production in this country, not only threatening, but actually drawing upon the reserve held by the Government to protect and guarantee its financial integrity, with billions of bonds outstanding, maturing, in it; and with the entire world seeking in every conceivable way to get it away from us, we find ourselves experiencing a rapidly de- creasing gold production. Nation Must Pay for Inflation The issuance of paper currency and obligations without re- gard to metallic security by the countries engaged in the war has caused an inflation so great and so far-reaching that the imagination becomes bewildered in an attempt to grasp both its magnitude and the consequences which must certainly eventually result. That there will come a day of reckoning a time when gold will be demanded in payment of the obligations which expressly provide that they shall be paid in it, of the weight, fineness and value at the date of their creation is not susceptible of reasonable doubt. Any theory of economics and finance seeking to escape this perfectly apparent certainty is dishonest in its conception and will prove futile in the fraud it seeks to perpetrate. The wealth that has been created through centuries of toil and preserved by self-denial and economy, and handed down to us by preceding generations, has been measured and fixed by gold, and must so remain. Any serious attempt to disturb this THE GOVERNMENT AND THE GOLD PRODUCER 545 wealth by substituting a false standard of values would bring about a cataclysm that would so disrupt our financial, economic and social structures as to blight our civilization. Disaster Threatened If Gold Fails It is impossible it is unthinkable ! When the day of reckoning dawns, those countries possessing gold will survive and prosper. Moral and commercial deca- dence will come to those which repudiate or cannot pay. A British treasury official was recently quoted as having said that eight billion dollars of credit must be furnished the Allies within the next twelve months to overcome the evils of paper money issues. Since our country is the only one capable of granting credits in such tremendous amounts, it is evident that we must carry a large part of the financial burdens of those countries until their industrial reorganization shall have been perfected and placed on the solid productive footing. Can any stronger proof be offered of the fact that an in-, creased gold production in this country is a necessity? The entire world is looking to us for assistance, and we must give it to the limit of our ability. To do so we must maintain the largest possible gold reserve that our own credit be not im- paired and our financial integrity be kept beyond the possibility of question or suspicion. Ample Gold If Production Encouraged Since gold was first adopted by England as the sole unit of monetary measurement in the early part of the nineteenth cen- tury, there never has until now entered into the price of gold the problem of the cost of production. Necessity has never before forced the issue that Government price fixation cannot long nullify. The law of supply and demand applies as well to gold as to any other commodity ; because of the arbitrary price Which has been fixed on the gold ounce, we are now confronted by a too limited volume to supply the ever increasing demand and rapidly intensifying necessity. At the same time the pro- duction is decreasing with alarming rapidity. There is ample gold in this country to meet all requirements and to maintain our present pre-eminent financial position in the world, if con- ditions under which it can be mined at a reasonable profit are 546 PROCEEDINGS OF AMERICAN MINING CONGRESS created. Such conditions can be had only by the enactment of suitable legislation, which must be just to the gold producer and fair to the public. The economic pressure which has prac- tically paralyzed the gold industry must be overcome so far as it is affected thereby. Admitting that the problem is complex and presents many seemingly insurmountable difficulties, necessity nevertheless compels a solution. Upon its solution depends, to a very great extent, the settlement of the grave questions underlying our economic difficulties. There is no other cure for the inflation which is dangerously fermenting the minds of the people and causing the wave of discontent and rebellious feeling so preva- lent all over the land. Theorists may theorize, economists may specialize and financiers may contrive temporary expediences, but we will still face the great big dominating fact that no permanent settlement of the evils with which we are now beset is possible. And the grave dangers of the future cannot be safeguarded against until a wise solution of the gold question is found. Preparation for the day of reckoning must be made, and it can only be done by increasing the production of gold to the utmost ounce. Protect National Credit If we are to maintain financial pre-eminence throughout the world, our dollars must perform their functions without the shadow of discredit in the most remote port as certainly as they will at home. To do this they must be dollars in fact, and un- alloyed with Government fiat. Gold only can make this possible. While I am giving but feeble emphasis to the necessity of increased gold production, I wish to sound a warning against those misguided or false so-called economists and prophets who would have us believe that there is already too much gold ; that its continued use as the basis of credit, as a standard of value, or as security for circulating medium and a medium of ex- change is nothing less than the continuance of a fiction, and therefore quite unnecessary. British Call for Gold The call of England for a credit to the Allies of eight billion of dollars within the next twelve months with which to over- THE GOVERNMENT AND THE GOLD PRODUCER 547 come the evils of paper money issued during the war, to meet desperate situations, is sufficient answer to everyone offering a substitute for the gold standard of money. It required thou- sands of years of progressive endeavor to lay the foundation and create the great financial and credit structure which han- dled the business and commerce of the world with facility and safety before the war. During the war story upon story was added to the structure, in the form of forced credit, until the foundation is totally inadequate to longer carry the credit superstructure with safety. The foundation must be widened and the structure braced with supporting additions that it may not be blown over by the first wind of wavering confidence. This can be done only with additional gold. Every man who thinks straight financially who placed the sacredness of cre- ated obligations ahead of the mere possession of dollars must admit the necessity of increased gold production. The fact was recognized by many, more than a year ago, and a movement was started to obtain sufficient relief for the gold miners to stimulate its production. The effort failed and production has continued to decline while the necessities for more gold have multiplied. The problem is now so acute and of such vital im- portance that its solution can no longer be deferred without courting disaster, both to the financial world and the gold mining industry. How is the necessary increase of gold production to be pro- cured? Because of the increased cost of production it can only, in exceptional cases, or where it is obtained as a by-product, be mined at a profit. Hence, no prospecting or development work is being done. This means a far greater decrease in production in the near future than has so far taken place. The high price of silver has turned the attention and energies of mining men generally, as well as capital, to the mining of the white metal. Nowhere, so long as the present economic pressure endures, can be seen any well founded hope for improvement in the gold situation, unless suitable legislation be speedily enacted to make possible its production at a reasonable profit to the miner. The value of gold as measure of values, as a money metal, the basis of credit and a medium of international exchange, cannot be changed without bringing to earth the financial and credit structure of the world. It must follow that the price of gold, as fixed by law, should not be changed. 548 PROCEEDINGS OF AMERICAN MINING CONGRESS Production Ceasing The gold mines cannot continue production at a loss. Many of them have closed. Others must close before legislation can be had, and the industry will soon be practically paralyzed if assistance is not quickly provided. The only hope lies in obtain- ing suitable legislation, the object and purpose of which should be to give such relief to gold miners as will make certain the preservation of the mines now opened and so stimulate the industry as to make possible the development and operation of new mines at a profit, to the end that production may be suffi- ciently increased as to at least meet the annual requirements of the trade. Regarding this as a temporary expedient necessary for the protection and preservation of both the industry and the gov- erning gold reserve, very carefully matured constructive legis- lation should be pressed until the industry shall have been placed in equitable relation to the. Government, and upon a sound and enduring basis. An excise tax on all gold used by the trade, the proceeds of which shall be paid to the producers of new gold, offers, in my opinion, a temporary expediency of more merit than any proposal so far advanced. Coupled with this should be the elimination of all taxes levied upon the pro- duction of gold; upon all profits derived therefrom, and upon all incomes derived from investments in gold mining. Other industries have obtained relief and protection through organi- zation. Last year the gold miners passed resolutions and organized, but failed to press their case at the psychological moment they ignored The American Mining Congress, the only efficient fighting organization the mining interests of the country has ever had. The movement was an ignominious failure and should serve as a warning now and in the future. Whatever is undertaken should be done through the Mining Congress, with which we should heartily co-operate and to which we should give our support to any necessary extent. A committee composed of the ablest men in the gold industry should be appointed and instructed to prepare a bill or bills to be introduced in Congress, which will serve to meet the necessi- ties of the situation until such time as comprehensive, con- structive legislation may be matured to put the industry where its importance as a preferred essential industry demands that THE GOVERNMENT AND THE GOLD PRODUCER 549 it should stand. Let it not be forgotten that when Europe cried aloud for bread it was not difficult for Congress to find a way of stimulating the production of wheat to meet the necessities. Increase Necessary for Stabilizing Finance Now, increased production of gold is as important to the stability of finance, the maintenance of accumulated values, continued industrial prosperity and through them the preser- vation and unbuilding of our social fabric as was wheat when the physical life of European peoples was threatened by famine. Congress acted within its rights and powers then, notwith- standing that our hundred million people had to bear the resulting increased cost of living, that Europe might have bread. It has the same right, and it is no less its duty, to pro- tect our national credit and take steps to prevent a financial cataclysm which would engulf and destroy values and industry to an extent that would spread ruin throughout the world. The proposed excise tax on gold used in the trade would fall upon those who have the means to pay the increased cost of pro- ducing gold, while its increased production would serve as an insurance to all of the people against financial disaster. 550 PROCEEDINGS OF AMERICAN MINING CONGRESS WAR MINERALS RELIEF COMMISSION Statement of HON. PHILLIP N. MOORE, of the War Minerals Relief Commission, Before the War Minerals Conference of The American Mining Congress, St. Louis, Mo. Following the statement of Mr. Callbreath and the argu- ment of my distinguished chief, I am much at a loss to know just what line may interest you further. I come to you this evening by instruction, speaking to old and many who I hope may become new friends, but in view of some of the cordial words which have been uttered in the last months, regarding the actions and inactions of the committee of which your speaker is a small part, with the feeling that he has not met unanimous approval. It sadly penetrates his conscience that this body of serious men whom he respects and is endeavoring to serve have come together to voice their dissatisfaction with legislation govern- ing the Commission, with legal opinions which are mandates, and with rulings for which said Commission alone is responsible. Regarding those rulings, I will not repeat the arguments of my chairman; I consider that they are unanswerable, but I have thought possibly a few details of the history from a little different angle of events which led up to this war minerals situation might be worth bringing to your attention. Let us go back to the foundation of events, on which has been built a structure of effort and patriotic sacrifice, with, it appears, a thrifty proportion of business motive. Early after the entry of the United States upon the late war patriotic citizens were called or hastened to Washington to volunteer their services ; to offer their skill and experience toward quick and ordered mobilization, for war, of the re- sources of our land. Selfish Interests Dominant It was perhaps unfortunate that many able and successful citizens (captains of industry) while so serving never were quite big enough to divorce their own interests and look at the WAR MINERALS RELIEF COMMISSION 551 problems of supply from a national standpoint. Too often such men, fully competent to think broadly and patriotically on all other matters, when their own industry came to face sacrifice to national needs were unable to bury self-interest. It is possible that some men wise in the markets of the minerals most acutely needed, importers by habit and profit, were of this class and lacked realization of the imminent danger of industrial starvation and failure of military sup- plies which might accrue through scarcity of shipping. Mining Industry Responded Others there were, however, and of them I speak with pride officers of our Bureau of Mines and Geological Survey, broad-minded mining engineers, mine operators and State geologists who quickly saw the peril and addressed them- selves to a campaign for awakening officials and public to the instant need of studying and developing our domestic supplies to a point of national safety. For this purpose the mining profession, instead of seeking organization to work independently, as so many other bodies of men had done, sought and gained articulation with the established Government agencies, the Geological Survey and Bureau of Mines. Duplication Caused Confusion Resolutely resisting all attempts of ambitious patriots to initiate independent movements, they held to the one organiza- tion. Later, it must be regretfully said, national committees organized, for specific industrial lines of activity failed to recognize the vital importance of similar teamwork, but estab- lished bureaus of mineral investigation of their own, to the duplication of effort, confusion of counsel, and later to clashes of jurisdiction, which were costly. Heading these were some of the influential men of the profession as well as gentlemen possessing a vast ignorance of mining affairs. Government Stimulation Following upon the organization of the War Minerals Com- mission a nation-wide statistical and stimulation campaign was inaugurated, with the object, first, of learning exactly 552 PROCEEDINGS OF AMERICAN MINING CONGRESS what were the possibilities for domestic production of the most needed, hitherto imported minerals, and, second, to stimulate the output of such minerals as could be produced at a non-prohibitive cost. The cost of this work was borne by the Geological Survey and the Bureau of Mines. Original War Minerals Bill Recognizing that something beside indefinite appeals to the patriotism of the producers would be necessary, the War Minerals Committee, a board representing the official, semi- official and national societies of the mining profession, pre- pared and had introduced a bill designed to give to a properly constituted governmental authority power to contract for and to control the needed minerals. It was adapted from the Food Administration law and proposed to give to an administrator practically the same control over minerals that the Food Administrator had over edibles. It was the belief of the gen- tlemen who drafted this bill that the surest and quickest results would come through giving control over the entire industry to a properly constituted adminstrator. Immediately, however, arose storms of protest from the well-established industries at what they termed "interference with their busi- ness," and a back-fire was started against the proposal. It quickly appeared that the large established industries carried sufficient power to defeat any measure which affected them. They further alleged with much show of reason that there was no probable scarcity of raw materials used by them. The bill was quickly amended, omitting those minerals of which there would evidently be no scarcity, and its passage again supported. Mining Congress Opposed If the Mining Congress ever lent its active, enthusiastic support to this bill, it has failed to come to the knowledge of this speaker ; on the contrary, a gentleman introducing himself as a director and vice-president of the Mining Congress before the House committee having this bill in hand testified as fol- lows, quoting from the stenographic report: "I wish to say, not that I am authorized to say it by the Board, but as repre- senting the views of the Western mining interests and mem- WAR MINERALS RELIEF COMMISSION 553 bers who are associated or connected with that Congress, that the bill in many respects is opposed to their views." Later the same gentleman stated: "That certain repre- sentations had been made on behalf of The American Mining Congress which you might say were practically opposed to the views of the Western members of that Congress. I felt it was my duty, as an officer and director in that association, to cor- rect that impression in some degree here." A vigorous protest, the first and perhaps most vigorous, against the passage of that bill came from a State Chapter of The Mining Congress, a member of which, representing himself officially, however, as speaking for a State mining organization and not of the Mining Congress, appeared in Washington, in attendance upon the hearings of the Senate Committee, as a constant and vigorous opponent of the measure. It is just as well, gentlemen, to have these things clear. They are serious facts which we will do well to remember. It is needless to go further into the history of that much- debated measure, which, losing hearty support from sources which it had a right to expect, unexplainedly fell into the legislative doldrums to become a law only in October, little more than a month before the end of the war. The history of this opposition never has been printed. It is not within my power nor my purpose to enlarge upon it. Coming into effect at the end of October, the law was too late to be of any value to the industry ; so late that the Secre- tary of the Interior, who was appointed to administer it, de- clined to exercise its powers. Price Stimulation Under the stimulus of high prices, accompanied by a vigor- ous campaign intended to advertise the need of great supplies of certain minerals, as well as a tempting promise of rich profits apparently certain under high prices, development of these minerals grew by leaps and bounds, until the tonnage produced exceeded all expectations. Meantime, in the councils of national committees, self-interest and narrow-mindedness, if no worse, warped judgments which should have been clear and permitted importations in violation of serious promises made by authorized Governmental Boards. A collapse of 554 PROCEEDINGS OF AMERICAN MINING CONGRESS prices started weeks before the end of the war, terminating in practical suspension, which obtains to the present time. It is needless to discuss details of this collapse, I might have said this mercenary collapse. Its existence is only another proof of the inability of men who think themselves patriotic to turn aside from the contemplation of their own business interests. Relief Legislation Following the cessation of the war and the collapse of the demand, men who suffered thereby all over the country, by concerted effort, brought to bear opinion upon Congress to secure remedial legislation. The detail of this legislation has been given you by my chairman. It is sufficient that it is here ; you know it, we know it ; we as a Commission of sincere men, endeavoring to do justice and avoid imposition, have before us, first, a statute, the intent of which is clear; which is to render awards and not bounties, to make even, as far as may be within their legal power, the net losses which have been suffered by claimants as the result of patriotic efforts made by them by request of a properly authorized representative of the Government. The details of this you have heard from our chairman. What Does Law Demand? It is to be noted, however, that this Board feels that the last and most imperative order of the bill is that which author- izes the secretary to make awards which are just and equitable. What does this mean? Does it mean that a man may make a profitable deal in one organization or in one operation, hide that and bring his losses in other operations to the Commission for award? Does it mean that a man under the stress of the war and the opportunity then appearing of probable great profits may revive an "old skate" of a mine, which he has warned himself fruitlessly against in the past, and failing, present a righteous demand to the Commission that his re- newed losses be cared for? Does it mean that efforts which are purely and absolutely business transactions, or entered into with mixed motives, patriotism as well as hope of gain, should be taken as all patriotism and the results of Govern- ment stimulation? WAR MINERALS RELIEF COMMISSION 555 Rulings on Technical Points And what does commercial importance mean? If you will pardon me, I will give the definition of commercial importance on which this Commission has agreed, and which we will be very glad to have you criticise. They construe a deposit of commercial importance to be one carrying ore in sufficient quantity and of sufficient richness, to have been capable of working at a profit under the condi- tions of the war and for the period of the war, reasonably to be expected at the time when the enterprise was undertaken. If you can suggest anything fairer than that, we shall be very glad to have it. With this definition we, of course, charge the operation with war costs, but we give the benefit of war prices, and generally speaking, depending upon the date of entry, we assume that the expected period of the war when it was undertaken was two years. In other words, if the claimant can show us that he lost money on a property which gave a fair probability of having worked itself out to a profit within two years of the time it was undertaken, we consider that that is a commercial proposition within the meaning of the law. Again, we realize that what may be a commercial proposition for a couple of prospectors out in the hills, where they can dig out a few carloads of chrome without any capital expenditure, would be absolutely an uncommercial proposition for a capi- talist to build a mill upon or attempt to reach it with a rail- road. Those things are relative to all cases and it is our sincere desire to hold them so. Now, once more, another point wherein we tried to discrimi- nate. We treat each claimant as an individual. We do not hesitate to go behind a corporation's operations wherein he was a large part and wherein he may have profited or lost. It is the individual we are after all the time. The chairman has already pointed out to you that we do not consider an individual has the right to select losses and forget his gains. On that point there seems not much discussion. Types of Claims Claims which have come to us are, many of them, of a nature which, were we not cheerful optimists, might lead us 556 PROCEEDINGS OF AMERICAN MINING CONGRESS into the depths of pessimism. I wish you gentlemen could sit at a few hearings with us. The claimant sits across the table with a claim, we will say (I am not going to give you figures, I do not want to identify the man), for $50,000. He entered this enterprise perhaps in 1916, before the war; he may have (I am making a composite example) included the price of a mill erected before the war. He certainly has the price of his property. I say to him: "Now, you have included in this, Mr. Blank, everything you have spent on the property the cost of your mill, your road, the money you lost in operation ; you think yon have a good mine, don't you ?" "Oh, gentlemen, I have one of the best mines in the State !" "Do you expect to stay with it?'' "Oh, yes; I think as soon as the market improves we are going to do better!" "Do you realize, if by any chance the Commission should recommend your entire claim for award, that your equity should pass to the Government and you would cease ownership? Is that what you want?" "Oh, no, we don't want that !" "Then tell us what you think would be a fair allowance." "Well, I don't know; that is for the Commission to say." "Well, the Commission has 1,200 cases. Tell us what you think." One man after initially claiming $50,000 finally said that he thought about $5,000 was a fair award. Another (we will assume again a composite case) gentleman came before us with a claim for many thou- sands of dollars. He admitted that he had a plan long before he received any Government stimulation; he stated that the enterprise looked good to him and he thought he was doing a patriotic service, but claims when he received Government stimulation that he largely increased his investment and, therefore, was entitled, at least, to the increase, although the claim as originally made asked for every dollar invested in the property. The claimant was asked: "How did you come to increase?" He replied: "Well, Mr. Jones, of the Bureau of Mines, told us to; that the Government needed this mineral and we ought to get it. 'Now, hurry it up'; so I decided to double the mill." We called Mr. Jones and said: "Mr. Jones, what happened between you and Mr. Smith ? Did you see that property?" "Yes!" "When did you see it?" "In August, 1918." "What happened between you?" "Well," he said, "I landed at his place one day about 11 o'clock. He had just WAR MINERALS RELIEF COMMISSION 557 got in from New York with some of his new stockholders. I went up to the mine to meet him and shook hands with him ; asked him what he was doing. Said I was out there for the Bureau of Mines to see what the prospects of production were. He said : 'I am busy now ; you go down to the boarding-house. I have to go away at half -past two, but I will see you when I come down.' " Jones met the gentleman, who told him his plans, of the great mill he was going to build, the pipe line he would lay and the developments he would make. Now, what would you do with a claim like that ? Should we give him his thousands of dollars on the ground of Government stimulation ? Assayer Wanted Salary Paid Here is another claim: (I could keep you all day on this, gentlemen, but I will not bore you too long.) A gentleman in a well-known mining centre, not too well equipped with technical talent, thought it would be a good idea to establish a chemical laboratory there, where the developers could get their deter- minating work done actively. He set up a laboratory, and in about six months he sent us a claim beautifully prepared, the vouchers for every cent that he expended for supplies or equip- ment, adding at the end of each month $150 for his services, and at the end credited his account with $219, the total receipts for the six months. In answer to the questionnaire "What salvage?" he wrote "No salvage at all; the bank took the salvage for a note." What shall we do with a case like that, gentlemen ? Wants Pay for Scenery Here is another. "City of Winivesta, Somewhere or Other, Office of the City Manager Secretary of the Interior, War Minerals Relief, Washington, D. C.: We wrote you a few days since, and now we have a bulletin from the State Mining Bureau advising us to write you stating briefly our claim for loss due to the fall in the price of pymanchro ore. At the early request of Mr. Blank, head of the United States Mining Bureau, we built a short railroad and mined a boulder of ore which was on the city property in our park. The city has still due it some ten thousand dollars for ore, which the Blank 558 PROCEEDINGS OF AMERICAN MINING CONGRESS Steel Company had purchased but were unable to pay for on account of the drop in the price of ore. This company is now in the hands of a receiver, and we feel the city is deserv- ing of ten thousand. We have had to cut our police force, and we feel we are entitled to our claim. Trusting this will meet with your approval, and that you will be able to allow us relief, I am, very truly yours, Blankety-blank, City Manager." [Laughter.] Gentlemen, if you could but read with us for a week, I think you would be more charitable, some of you at least, in your criticisms of our interpretations. Commission Regrets Criticism Now, let us go on enough for our troubles. You came here supposedly to discuss your own and not ours. The point was well taken, and I desire to thank Mr. Lloyd for it that the criticism here should discriminate between the Commission and the law. The Commission regrets greatly the criticism of old friends and it hopes to avoid that of new ; but when you come to a question of amending this statute, how are you going to amend it and not make the blue sky your limit? We have been doing our best, so far as our authority extended, to stretch the blanket of interpretation over those cases we felt to be just. After all, there is something in the papers and the testimony in the case whereby, when we get close down to it, we are pretty apt to tell whether a man is trying to put it over on us or not. We have been trying to stretch that blanket all we could honestly and intelligently and within the law ; but if you will pull that blanket clear off and make the sky the limit if you say that any man who has read a circular of the Interior Department, or any of these depart- ments in that propaganda, and then went out on his way searching for a property which made a loss, can come in your sixteen million will never begin to touch the losses which will be asked for. Changes Needed in Law I confess I am as yet at a loss to know what to advise. The Commission hopes before its work is completed that WAR MINERALS RELIEF COMMISSION 559 the matter may so clear itself that they can recommend changes which will open the door wider for justice and shut it against imposition. Such changes in both directions are needed. Under present rulings the Commission doubtless has to reject some righteous claims and, through compliance with the form of the law, may allow some which have no equity, which were not due to patriotism but to business motive, but it will do so because there seems no alternative under the law. Our desire is to do justice and prevent imposition. We hope in the midst of criticism and disappointment you will believe this. Believe also that the Commission will be at all times glad to receive constructive suggestions for the future. 560 PROCEEDINGS OF AMERICAN MINING CONGRESS BUSINESS TRAINING IN MINING AND METALLURGICAL CURRICULA By DR. L. E. YOUNG, Heat Engineer, Union Electric Light and Power Company, St. Louis, Mo. (Presented at National Conference of Schools of Mines of The American Mining Congress) During the past few years there has been considerable dis- cussion of the value of training in economics for students in engineering. There seems to be a question in the minds of some faculty members as to the advisability of including such subjects as economics, accounting, business law, and business organization in an undergraduate curriculum in mining or metallurgy. Need for Business Training The most recent catalogue of an institution of first rank in describing the curriculum in mining engineering states that : The object of the course is primarily to train a student for practice in the field of mining engineering. It is designed to give him the thorough fundamental training of an engineer and a breadth of education that will enable him readily to under- take work in the various lines of engineering which frequently present themselves to one of his profession. The course, there- fore, when completed, places the graduate in the path of a large number of opportunities. Not only will he have had sufficient practice and training to enter upon the field of mining, but he can also engage in work in which geology and metallurgy play an important part, as well as in engineering projects related thereto. The principal objects in view are that the student, upon graduation, may be enabled: first, to make and plat surface and mine surveys, and to map the topography and geology of a district; second, to analyze, value and treat minerals found upon a property, to report upon them, and to analyze metallurgical products; third, to make drawings and designs to meet the re- quirements of given cases; fourth, to take a subordinate posi- tion as an engineer in connection with any of the previously indi- cated lines of work. BUSINESS TRAINING IN MINING 561 In order that the young engineer may advance in his profes- sion and in the course of years fill more than a subordinate position as a surveyor, draftsman, designer, chemist, or assayer, he must acquaint himself with many aspects of the business of mining; he must know something of the general methods and practice in the business world and, as well, the more or less localized procedure of the mining district or districts in which he is engaged. The American mining engineer has been called upon to undertake varied problems, the success of many of which has depended more upon a combined knowledge of mining technology and business than upon mining technology alone. The other divisions of engineering are recognizing the de- mand for breadth of training, and it seems unnecessary to present at length reasons for including courses in economics and business in the mining and metallurgical curricula. If the reputation of an educational institution is that it develops simply good assayers, chemists, draftsmen, and surveyors, and those who are responsible for the course of study in the insti- tution are satisfied with such a finished product with gradu- ates who are looking no higher than the subordinate positions in large organizations then let us continue by the well-devel- oped and accepted curricula to produce men of such calibre and men with such a vision of their place and opportunity in the profession. Honorable as such branches of technology are as a life work, there are much more important and at the same time more lucrative positions available for the men who, in addition to having the training along the previously mentioned technical lines, have acquainted themselves with the funda- mental principles of economics and business. Granting that many of the men may not have inherent qualities fitting them for leadership of the highest type, it must still be conceded that in the course of time every college-trained man should take some part in solving the complex problems arising in the em- ployment of labor, the development of mining communities, the financing of private and public enterprises, etc. Value of Business Training Upon graduation from mining curricula some men find em- ployment with large corporations and may be assigned to work 562 PROCEEDINGS OF AMERICAN MINING CONGRESS in some special line ; others go to the small mines, where their work is varied; they may be assayer, bookkeeper, surveyor, time clerk, and supply clerk, all in one person. In such an humble position a general knowledge of business procedure is invalu- able. But wherever the young man may go, if he has had some training in economics and business, he has a great advantage. The chief questions are: How, when, and where can he get such training without serious interference with his technical education ? Engineering Curricula and the S. P. E. E. For several years the Society for the Promotion of Engineer- ing Education has been studying engineering curricula. The Committee on Economics has secured and published data on economics courses included in civil, electrical, and mechanical engineering curricula in forty-two institutions (Proceedings S. P. E. E., 1918, Vol. XXVI, p. 219). Of twenty-three insti- tutions requiring economics, the maximum number of credit hours was twelve, which was required by only one institution ; a minimum of two was required by six institutions ; while eight institutions of the total of twenty-three required three hours. The Committee serving in the year 1917 recommended to their successors of the Committee of 1918 that they prepare a definite scope and content of courses based on the following topics : 1. A preliminary study in commercial geography and indus- trial history. 2. Fundamental course in the principles of economics. 3. Application of these principles to engineering. 4. Lessons upon special application in detail engineering- work. The Committee appointed in 1918 undertook to follow the suggestions of the Committee of 1917. The Committee distin- guished between "economics" and "economy of construction" as follows : The term economics is taken to mean "the science of wealth'* and to deal with matters pertaining to the consumption, produc- tion, exchange and distribution of the world's wealth as a more or less abstract social science. (Proceedings, S. P. E. E. 1918, Vol. XXVI., p. 220.) Economy of construction, on the other BUSINESS TRAINING IN MINING 563 hand, should cover those principles of design and construction which accomplish desired results with the minimum expenditure of money, all factors being considered, and is founded pri- marily upon unit costs, maintenance and life of structures, and cost of operation. The Committee of 1918 recommended that "an outline course on economics, but no more, be required of all engineering stu- dents. Engineering has chiefly an economic aspect that is, it has to do with the production, exchange, and distribution of wealth, and the student should become familiar with those general factors which are the framework of society's economic organization and should be led to see how engineering opera- tions are related to them. He should understand that an engi- neer possesses a training that has economic value and that he will be able to 'market his wares' only as he comprehends the economic and commercial organization of society from both the theoretical and practical viewpoints." The Committee recommended that the amount of time de- voted to the formal study of economics be not more than three semester credit hours and that the subject matter be similar to the treatment in any standard text on "economics" with fre- quent illustrations from actual facts of commercial geography and industrial history. Recommendation was made that "special subjects in the economics group, such as accounting, labor problems, public and corporation finance, taxation, money and banking, and others, while possessing much value as in- formation courses, do not seem to deserve a place in the engi- neering curriculum owing to the already crowded condition of the latter and also because an intelligent technical graduate can read books on any of these subjects understandingly with- out the aid of an instructor." (Idem, p. 222.) The Committee directed special attention to the mode of administering the course in economics for engineering stu- dents, owing to the apathy of the latter toward this subject, and recommended that the subject of economics be taught by a professor of economics having a broad education and experi- ence in corporation business a man to whom the subject is alive and possesses a vital connection with the commercial world. 564 PROCEEDINGS OF AMERICAN MINING CONGRESS Total Hours Required Per Week Professor Breckenridge, of Yale University, recently secured the opinion of teachers in departments of mechanical engineer- ing as to the total time to be spent in class, drawing, labora- tory, and study. Of eighteen replies the minimum number sug- gested was forty-six and the maximum fifty-four. The average was fifty and five-tenths hours. (Bulletin, S. P. E. E., 1919, Vol. IX, p. 415.) Most of the curricula in mining and metallurgy now offered require not less than the average number of hours reported by Professor Breckenridge. On the basis of the "Study of Engi- neering Education," made by Dr. Mann, a committee for the Society for the Promotion of Engineering Education recom- mended : That the schedules for engineering students should call for not more than 48 work hours per week (including recitation, lab- oratory, field work and home preparation), this time to be divided among not more than five subjects which require prepara- tion outside of class exercise. That all engineering students should be required to pursue courses which will prepare them for administrative duties and for responsible and effective citizenship. The Report of Dr. Mann Dr. Mann in his report refers to the widespread agreement among professional engineers : That considerable attention should be paid to humanistic studies like English, economics, sociology, and history, not merely because of their practical value to the engineer, but also because of their broad human values ; and that the young engineer should have some conception of business management and of the most intelligent methods of organizing and controlling men. The difficulty in present school practice evidently lies in the exclusion from the technical work of all consideration of the questions of human values and costs; and, conversely, the isola- tion of the humanistic studies from all technical interest. * * * And after all, the ultimate control of all engineering projects, as of all activities, is vested in some man's decision that the game is really worth while ; and this control is likely to be more salutary, the more completely the man who decides comprehends the full import of the values and costs involved. BUSINESS TRAINING IN MINING 565 The report of Dr. Mann, published in 1918, has caused many engineering educators to think seriously about the real function of the institution with which they are associated, and many beneficial results of Dr. Mann's work are evident. Curricula in Commercial Engineering The Bureau of Education has called several conferences to consider the development of courses in "Commercial Engineer- ing." Reports of the suggestions made at these conferences have been published, the most important of which are as follows : 1. That from 12 to 18 semester hours be required of all en- gineering students covering the following subjects: General economics, cost accounting, business organization, and business law. 2. That for engineering schools desiring to extend further the commercial or industrial aspects of engineering, the follow- ing subjects are recommended as electives: Labor and employ- ment, corporation management and finance, statistics, market- ing, scientific management, psychology, transportation, and polit- ical science. 3. That the economic phases of engineering be emphasized in engineering institutions wherever possible. A brief review of the status of curricula in Commercial Engineering and Business Administration is given in the Bulletin of the Society for the Promotion of Engineering Edu- cation of June, 1919. There have been two new types of cur- ricula recognized namely: (1) Commercial Engineering or Engineering Administration, which is planned to be a course of study leading to an engineering degree and which included enough technical subjects to classify it as properly an engi- neering curriculum; and (2) Business Administration, which is planned to be a course of study leading to a degree in busi- ness or commerce, and which is meant to be a business admin- istration curriculum, although it contains a number of elemen- tary engineering courses as well as courses in mathematics, physics, and applied science. Both types of curricula are planned to train men for administrative work, the former con- taining the more engineering. 566 PROCEEDINGS OF AMERICAN MINING CONGRESS It may be well to keep these developments in business and engineering administration curricula in mind in considering the possibilities of mine administration curricula. In commenting on this movement toward the development of Commercial Engineering, the Committee on Economics of the Society for the Promotion of Engineering Education called attention to the "desirability of recognizing the abnormal state of industrial affairs in connection with the teaching of eco- nomics" and urged "the importance of laying emphasis on sound economic doctrine. The teaching of sound economic doctrine in colleges will be one means of hastening the inevi- table return of the economic pendulum to the mean position which is so necessary for further industrial development." Types of Mining Curricula Any investigation of the feasibility of including training in economics and business subjects in mining and metallurgical curricula must recognize the fact that there are several types of institutions offering curricula leading to degrees in mining engineering. Obviously it will be impractical to propose any group of subjects which can be adopted uniformly in all insti- tutions, and all that can be hoped for is the presentation of general suggestions which may be adapted to a number of the undergraduate curricula. In considering the problems arising in connection with the curricula, control of courses, teaching staff available, etc., the institutions offering instruction in mining and metallurgy may be grouped somewhat as follows : 1. Schools or colleges existing as independent institutions and primarily for instruction in mining and metallurgy and which offer three or four years' work leading to an undergraduate degree. Institutions of this type have previously limited instruc- tion to engineering and science and the faculties have generally not included men properly qualified to offer courses in economics (as defined by the Committee on Economics of the Society for the Promotion of Engineering Education), accounting, and busi- ness organization. 2. Colleges or departments in institutions such as colleges of agriculture and mechanic arts. Usually the faculty of such an institution includes men qualified to give the business courses, but in many instances the staff is not large enough to give the BUSINESS TRAINING IN MINING 567 mining students the special attention required, so that if the mining students are enrolled in the courses offered they are not likely to be benefited greatly by the work. 3. Colleges or departments in institutions in which a college of commerce is organized. Usually the teaching staff of a col- lege of commerce is large enough so that mining students may be segregated from the general classes taking commerce sub- jects and given the particular training desired. 4. Colleges offering mining or metallurgical curricula as grad- uate work only. These may specify that certain courses in economics and business are required for admission either to the entire curriculum or to certain advanced courses; in this way the men come into the advanced courses with a broader view- point and a knowledge of economics, business practice and organization. Other Methods of Securing Business Training The proposal that economics and business subjects be re- quired as prerequisites for admission to mining and metallur- gical curricula suggests that there are several ways in which such courses or training may be given other than in the under- graduate curricula. Briefly, they are as follows : 1. High school or business college courses in bookkeeping, economics, and business practice taken prior to entering col- lege. Certain fundamentals may be secured in this way, and undoubtedly, if there is no opportunity to include courses in economics, etc., in the college or university curricula, the stu- dent should be advised to elect substantial business courses in the high school. 2. College courses in economics and business to be undertaken after completion of a mining or metallurgical curriculum. 3. Training by means of extension or correspondence courses after graduation from a mining or metallurgical curriculum. 4. Independent reading and study without supervision. Each of these plans has some advantages and, at times, may be the only means of feasible training. Present Status of Mining Curricula Information is available regarding forty institutions offering curricula leading to degrees in mining or metallurgy. Several other institutions offer some work of college grade, but not a complete four-year curriculum. Of the forty institutions re- ferred to, thirty-three now have members of the faculty teach- 568 PROCEEDINGS OF AMERICAN MINING CONGRESS ing economics as previously defined, and another expects to appoint a Professor of Economics as soon as a qualified man can be secured. The six institutions not having chairs of eco- nomics are colleges of applied science or mining and offer prac- tically no humanistic subjects except English and foreign languages. Only thirteen institutions include economics in the mining and metallurgical curricula as a required subject, while seven others permit economics to be taken as an elective. Of the thirty-three institutions equipped to teach economics, there are therefore only twenty institutions offering instruction in this field to mining students. Of the thirty-three institutions one requires at least two years' college work before matriculation, and as economics may be elected, the total number of institu- tions in which economics is either an elective or required sub- ject is in fact twenty-one. Several other institutions are now proposing courses in eco- nomics for next year, or advise that, upon approval of the faculty, economic subjects may be substituted for certain courses now required or for technical electives. Economics and Business Courses Now Required Inasmuch as the total number of institutions now requiring economics and business subjects is only thirteen, it may be profitable to make a rapid survey of the subjects, hours and content of the courses described. Number 1 (a state university) requires a three-hour course in economics during the third quarter of the senior year. In addition there is a three-hour course in mine management given by a member of the mining faculty, and a two-hour course in mining law by a lawyer. Number 2 (a college of agriculture and mechanic arts) re- quires a three-hour course in economics in the first semester of the senior year, followed by a three-hour course in either cor- porations, money and banking, or transportation problems. There are also courses in mining law and mine management. Number 3 (a state university) requires a three-hour course in economics the first semester of the senior year, followed by a two-hour course in industrial administration, the latter being taught by a member of the engineering faculty. The mining BUSINESS TRAINING IN MINING 569 faculty gives a one-hour course in mine administration and a two-hour course in mine examination and reports. Number 4 (a school of technology) requires a three-hour course in economics throughout the junior year. The mining courses present the business, sociological and legal phases of mining. Number 5 (a school of mines) requires a three-hour course in economics in both semesters of the senior year. The pro- fessor of mining gives a one-hour course in mine management during two semesters and a one-hour course in mining law for one semester. Number 6 (a college of agriculture and mechanic arts) re- quires a three-hour course in economics during the first semes- ter of the senior year, followed by a three-hour course in labor problems. The mining department gives a two-hour course in mine administration and examination, a one-hour course in economics of mining, and a one-hour course in mining law. Number 7 (a university) requires a two-hour course in eco- nomics, followed by a two-hour course in labor problems. Most of the students have also been required to take a two-hour course in corporation finance, a two-hour course in modern industries, and a two-hour course in accounting. The mining department has given a five-hour course in one semester in eco- nomics applied to mining. If a proposed curriculum is ap- proved, business and economic subjects will be given for five hours throughout the junior year, and probably at least one- half of the entire time of the senior year will be devoted to business courses. Number 8 (a university) requires economics two hours dur- ing the first semester of the sophomore year, followed in sequence by accounting (2 hours), business law (2 hours), finance (2 hours), industrial management (2 hours), and con- tracts and specifications (2 hours) . All of these subjects ex- cept the last are taught by the economics department. The mining department gives courses in mine administration, valuation, etc. Number 9 (a state university) has not required economics, but a new curriculum now includes economics (three semester hours) ; money, credits, and banking (three hours) ; business 570 PROCEEDINGS OF AMERICAN MINING CONGRESS law (three hours) , and accounting (two hours) . These sub- jects are to be required for all engineering students. The mining department now gives a two-hour course in mine management. Number 10 (a school of technology) proposes to train men for the position of mine superintendents and managers. The curriculum includes twenty commercial and non-technical topics, including economics, contracts, mining law, commercial law, bookkeeping, cost accounting, corporation finance, bank- ing and insurance, compensation insurance, labor problems, industrial management, transportation, advertising and sales- manship, and applied psychology. Number 11 (a university) requires four semesters of work in economics and business as follows : Economics, first semes- ter, junior year, three hours; business finance, second semes- ter, junior year, three hours; and accounting both semesters of the senior year, three hours. Courses in mine management, mine accounts, and mining law are included in a graduate curriculum. The mining law is taught by a member of the law faculty. Number 12 (a state university) requires a course in eco- nomics extending through both semesters of the senior year. The mining department gives a two-hour course in mine man- agement and accounts. All of the other engineering students take additional courses in engineering economics (one hour) and engineering jurisprudence (two hours) taught by a mem- ber of the engineering faculty. Number 13 (a school of mines) requires a three-hour course in economics during the second semester of the junior year. The mining department gives a two-hour course in mine ac- counting and a one-hour course in mining law for one semester. Mining Courses with Economic Aspects A number of institutions, in addition to those cited above, offer and require courses in mine examination and valuation, mining law, and mine management. A few give special atten- tion to labor problems in the mining industry. One institution includes mine examination and reports and economics of mining as required subjects in the graduate curriculum. It is no reflection upoi the men giving these courses to say BUSINESS TRAINING IN MINING 571 that in general these courses may be classed as courses similar to those grouped by the Committee on Economics of the Society for the Promotion of Engineering Education as "economics of construction" and not truly courses in "economics." Several institutions now offer courses in mine accounts that are entirely adequate for an engineer who does not expect to become an accountant; most of the other mining curricula would be strengthened by the addition of a general course in accounting. Business Courses Suggested In the opinion of the writer, provision should be made for instruction in the following subjects, all of which should be given three hours a semester if possible : 1. Principles of economics as outlined in any standard text, giving special attention to illustrative material, which should be selected carefully. The method of teaching should be a com- bination of lectures, recitations, discussions, and assigned prob- lems. The course may well come in the first semester of the junior year. 2. Business organization and corporation finance. This course may be given either directly after the course in economics or may follow the course in business law and accounting. It should include a general survey of the types of business organization, the incorporation of companies, financial problems in connection with corporate organization, and the organization of mines and mining companies from an operating standpoint. 3. Business law. If other courses have not presented the fundamentals of mining law, these fundamentals may be in- cluded in this course, but the major portion of the time assigned to this course should be given to the presentation of the funda- mental features of the law of business. Among the most im- portant subjects to be considered are contracts, real property, agency, sales, and negotiable instruments. In many engineer- ing institutions courses are now given in contracts and specifica- tions. The course in business law may properly precede a course on engineering specifications and the writing of engineering contracts as taught by an engineering instructor. The course in business law will probably be considered by the students as a failure, unless the illustrations used have an in- dustrial background. While the case method as used in the law schools cannot be followed closely owing to the fact that it has been developed with the idea of presenting legal procedure as well as rules of law, the use of carefully selected cases as 572 PROCEEDINGS OF AMERICAN MINING CONGRESS illustrations in conjunction with a standard text on business law is highly desirable. Experience has shown that good results can be secured in teaching business law to engineering students, if carefully selected cases are assigned occasionally. 4. Accounting. Students should be advised to take bookkeep- ing in high school. The college course should include an outline of accounting and bookkeeping; double entry; fundamental accounts and books. The fundamentals of cost accounting should be presented and the preparation and analysis of financial state- ments of mining corporations included. The foregoing suggestions can be modified to meet the local problems of various institutions. Several institutions are now giving courses of the nature and extent suggested, while others are giving more courses and much more time than the writer suggests. Difficulties Among the difficulties to be encountered in introducing such courses are: (1) the prejudice of the students and some mem- bers of the faculty against courses in economics; (2) the present crowded condition of the curricula, resulting in the students neglecting n'on-technical subjects for technical courses ; (3) the fact that several institutions have not previously em- ployed a teacher of economics; and (4) the scarcity of qualified teachers of economics, particularly those who have sufficient knowledge of industry and of the engineering profession to appreciate the viewpoint of the engineer. In the institutions which now provide instruction in eco- nomics, but in which the mining curricula do not include eco- nomics as a required subject, the objection to the addition of economics is generally that no time is available or that the eco- nomics faculty will not provide a proper course for engineers. The latter objection may be overcome by co-operating with the economics faculty and preparing a detailed outline of the courses desired, based upon the experience of the institutions in which economics courses for engineers have been established successfully. The objection has been raised that the mining curricula are so crowded that the addition of non-technical courses will result in the elimination of essential engineering work. Two plans may be suggested to meet this objection, as follows : BUSINESS TRAINING IN MINING 573 1. Provide an undergraduate curriculum to be known as the "mine administration curriculum" ; include in it the economics and business courses desired; and for this curriculum give a Bachelor of Science degree, but not in engineering. In a num- ber of institutions this is not feasible, as the degrees conferred are exclusively in engineering. 2. Add a fifth year, including some graduate work in mining, but largely courses in economics and business. The demand for a four-year instead of a five-year course will probably pre- vent the successful development of the latter plan in many institutions. Institutions of the first rank have been able to provide as much as twelve semester hours time for economic subjects. It may not be advisable to introduce more than six hours when the new courses are inaugurated. But before the entire pro- posal to introduce economics courses is dismissed on the ground that no time is available, the following questions should be asked searchingly by each administrative officer in regard to his own institution : 1. Are the students now matriculated properly qualified to do collegiate work? 2. Is the undergraduate instruction given effectively ? 3. Is the student's time taken up with routine, details, or courses consisting chiefly of informational matter which can be read independently after graduation? As thirteen institutions have endorsed the plan of giving instruction in economics and business and have found it fea- sible to adjust the curricula to permit such courses to be given, it is no longer logical to dismiss the problem by saying "it can- not be done" or "it will not work." With students properly qualified to enter college and with a competent faculty it has worked. New Economic Problems In conclusion, it seems appropriate in urging the timeliness of training in economics for mining students to refer to the various broad economic problems being discussed in the United States and Europe, among which is the nationalization of mines. Serious consideration is being given to this matter in Great Britain, and whether or not we favor or oppose the plan 574 PROCEEDINGS OF AMERICAN MINING CONGRESS being discussed, it is important that the men who are to be the leaders in the mining profession shall be able to think clearly upon such momentous questions. On August 18, 1919, the Prime Minister addressed the British Parliament regarding the report of the Coal Commis- sion as follows : We have accepted the principle of unification and reorganiza- tion, and we think that even the owners realize that there is a very great case made out for that, because you have the waste which is due to a large number of different enter- prises running in the same area under different manage- ment waste of power, waste in management, waste in distribu- tion. There is also undoubtedly a case to be made out for giving the miners a greater interest and voice in the working conditions which affect them. Therefore, we make this recommendation that in view of the fact that the living and livelihood of the miners depend on the way the mines are worked, means should be devised for securing their co-operation in shaping the general conditions of the industry without interfering with the executive control of individual mines. Now I come to our recommendation with regard to unification. It is that the industry shall be so organized as to reduce to a minimum the expense of management and working charges, and with this end in view, the country should be divided into defined areas, in each of which the amalgamation of neighboring mines should be undertaken within a limited period say, two years; and that the workers in and about the mines should have direct- ors representing them in the body controlling the area group to which they belong. The Government proposes to prepare a scheme and submit it to Parliament with the least possible delay, by which the minerals should be purchased by the State and funds raised for the pur- pose of promoting schemes for the social improvement and amelioration of the conditions and amenities of life in the mining villages. The State should not purchase the business of mines. The plan proposed was not acceptable to trade unionists in general, and by a vote of 4,478,000 to 77,000 a resolution was carried which in effect demands the nationalization of the coal mines. The nationalization of coal mines has become one of the leading questions of the day in England. If nationalization of mines becomes a fact in England, it is not unreasonable to expect there will be a serious consideration of the same subject in America, and if it becomes a critical BUSINESS TRAINING IN MINING 575 question here, the mining profession must be ready to consider it on broad lines. The time appears to be at hand when the mining engineer must take a more prominent part in the affairs of the nation ; he can do this much more effectively if he has a broad training and is qualified to consider the fundamental economic problems of the mining industry and of the nation. Collegiate courses as proposed will aid materially in furnishing this training. The responsibility of the faculty in this matter cannot be overlooked. A recent publication of the engineering school of a leading university contains the following statement : The aims which have served as controlling considerations in the selection of the teaching staff and in the laying out of the instruction of the school are: To train men to think; to lay a broad and deep foundation with an outline of the superstruc- ture which can be filled in gradually from the training and ob- servation which come from practical experience; to encourage the student so thoroughly to understand each problem that he can apply the same principles intelligently to the solution of en- tirely different kinds of problems, and finally to train men to be good citizens as well as good engineers. As the faculty is responsible for the breadth and depth of foundation and the outline of the superstructure, the subject of training in economics and business should be considered with the care and the thought which its importance warrants. 576 PROCEEDINGS OF AMERICAN MINING CONGRESS CLOSER CO-OPERATION OF THE COLLEGES, UNITED STATES BUREAU OF MINES, AND INDUSTRIAL CORPORATIONS IN RESEARCH INVESTIGATIONS Presented at National Conference of Schools of Mines of The American Mining Congress by E. A. HOLBROOK, Superintendent Pittsburgh Station, Bureau of Mines (Published by permission of Director of Bureau of Mines) A part of the Organic Act of the Bureau of Mines charges it with the furtherance of safety in the mining industry mak- ing investigations for the prevention of waste, promoting eco- nomic development and conservation of the mineral resources, investigating utilization of mineral fuels, and the dissemina- tion of the information obtained. How better can this be car- ried out than by close co-operation by the Bureau with the col- leges and the industrial corporations ? The college is the proper place for the training of men to carry on the research work, and the Bureau of Mines an official agency for conducting gen- eral commercial research, especially in those fundamental prob- lems the solution and application of which is to benefit the whole mining industry ; or those problems the solution of which is of so expensive a nature or of such general application that a single corporation cannot, as a financial business concern, afford the time and money necessary. Finally, the research itself must concern and be of benefit to the mining companies and industrial corporations or to the men employed by them. It is through the business world that practical modification and application of ideas and processes which have been developed by the other agencies must be put into application. A Government investigative bureau may adopt one of two policies in its development. It may pick out a central location, concentrate its staff, buildings, equipment and energies there and become the recognized center for its special line of work, and to which colleges or corporations may come for co-opera- tion, assistance and advice ; or, on the other hand, it may estab- lish central administrative headquarters only and distribute its personnel and equipment in separate stations throughout the CLOSER CO-OPERATION IN RESEARCH INVESTIGATION 577 country. This policy leads to an especially intimate contact with local institutions and problems and keeps it in close touch with the actual industry. The Bureau of Mines is carrying out the second policy. First Field Co-operation The first complete co-operative field experiment station was the Salt Lake station, where in 1914 a co-operative agreement was entered into between the University of Utah and the Bureau of Mines by which the Bureau should establish a field experiment station at the University and have the use of cer- tain University offices and laboratories and be given light, heat and power, and the assistance and co-operation of the teaching staff of the University. On the other hand, the Bureau would maintain a staff of engineers and metallurgists there whose work should be the solution of mining and metallurgical prob- lems which might prevent waste in the industries, increase efficiency and conserve human life. The University further agreed to establish fellowships, the holders of which should be paid by the University and who should work under the direc- tion of the Bureau engineers and on commercial problems which were receiving the attention of the Bureau staff. While preference has been given local problems, yet problems arising in distant districts, the solution of which might aid in the industry and on which the experimental work would be valuable in the training of the student body and fellows, have received equal attention. Care has been used not to conflict with the professional activities of private consulting engineers, and the mere treatment of an ore or mineral substance to deter- mine its adaptability to a known process has been considered secondary to the development of new processes or the adapta- tion of processes to conditions hitherto not thought possible. Experiment stations of a similar nature later were established at the University of Arizona, Tucson ; University of Washing- ton, Seattle; University of Minnesota, Minneapolis; Colorado School of Mines, Golden; and the Ohio State University at Columbus. Field stations without college affiliations also have been established at Fairbanks, Alaska, and Bartlesville, Okla., where needs arose, but whose location did not admit of co- operation with colleges. At the University of Illinois, Urbana 578 PROCEEDINGS OF AMERICAN MINING CONGRESS and the University of California, Berkeley, co-operative agree- ments have been entered into and limited stations established. They do not, however, receive the full station appropriation from the Bureau and their staff is confined to such engineers and metallurgists as has been possible to allot from general Bureau funds from year to year. The limited co-operation at Urbana, made first in 1911, is jointly with the Engineering Experiment Station of the University of Illinois and the State Geological Survey and was the first co-operation of the Bureau with state and college agencies for conducting investigations. The Pittsburgh Station The main field station of the Bureau at Pittsburgh, Pa., has recently entered into a new kind of co-operative agreement with the Carnegie Institute of Technology. The Pittsburgh station, especially in coal mining laboratories, gas, fuel and petroleum testing, has built up large working sections of its own for the solution of problems in these various lines which may arise anywhere in the country. At the present time it is co-operating with a number of industrial corporations and com- mercial agencies in the solution of general problems, the results of which will be accessible to the industry. For example, the fuel-testing section has agreements with several industrial concerns, with the Shipping Board and with the War Depart- ment by which tests are being carried out under the direction of the Bureau, the cost of which is being paid either wholly or in part by the other co-operating agency. The American Society of Heating and Ventilating Engineers is conducting at the Pittsburgh station, under co-operative agreement, a study of ventilation and heat transmission problems. The petroleum section is likewise co-operating with that industry and similar work is being carried on in the chemical and metallurgical sections. The Bureau, moreover, is constantly testing commer- cial explosives and apparatus designed for use in the mines, with a view to giving them Bureau approval for safety. This work includes testing of mine lights, electrical and gasoline underground locomotives and electrical coal cutting machinery, permissible explosives, oxygen breathing apparatus, and gas masks for industrial purposes. In this way the Bureau is in direct and constant contact with the industries and their needs. CLOSER CO-OPERATION IN RESEARCH INVESTIGATION 579 It is desired that educational institutions and the industries have access to the station and be able to take every advantage of results being obtained there. For this reason the Bureau has been glad to enter into a co-operative agreement with the Carnegie Institute of Technology by which their undergraduate students in mining may visit and inspect the work being done at the Pittsburgh station, and their graduate students and fellows may be assigned work and take part in the tests and researches being conducted by the Bureau. Since the problems engaged upon are commercial, mostly put up by the industry and of direct benefit to them, such an agreement offers an educational institution a chance to bring the men they are training into intimate contact with the developments and future needs of the industry. It is hoped that other institutions may make similar co-operative agreements with the Pittsburgh station. The Bureau further stands ready, as part of its program in the dissemination of information, to set aside one or more weeks in each year in which students of mining or in other engineering and scientific departments of colleges may come to the Pittsburgh station and enter into and have explained to them by special demonstrations the researches under way. Why Co-operation Necessary? Why are the colleges, the Bureau of Mines and the mining industry each necessary to the other for the proper develop- ment of mining and allied research ? The college wants to furnish graduates trained to be of value to the industry; the industry is eager for ideas, processes and men that are of commercial value. The Bureau must be of value to them both. Both the college and the Bureau have one common object in view the furtherance and upbuilding and application of science to the mining industry. In the past a tremendous amount of research work has been conducted by the colleges alone and a host of problems solved in this way. With the development of the research idea in industrial corporations many problems are arising, the scope of which is so broad and the expense and time necessary so great that the college needs outside help. 580 PROCEEDINGS OF AMERICAN MINING CONGRESS The college or university is primarily an institution for the young man's development and education and, secondarily, one for research. It therefore recognizes that having a staff on the campus who can devote their whole time to research means a greater gain to the research work of the institution than would be indicated by the mere amount of money allotted by the Bureau there. It is often stated that the modern engineering school is in close touch with the industries and is no longer isolated on purely abstract and theoretical considerations; however, the very nature of the training which should be de- veloped in the school requires that the institution become not too practical and its staff not too taken up with commercial work lest the college lose its ideals and purposes which make it a place of training superior to that of the shop or field. On the other hand, teaching is a profession by itself, and even in engineering a man who must devote the entire day to teaching has only a limited period each year in which he can hope to come in contact with other men in his profession and with the corporations themselves. Somehow, the Bureau places students and faculty in a position in which they feel more closely in contact with the industry. The Bureau men, traveling about in the field for part time and working at the college for part time, are enabled to bring the professional point of view close to the college. Large parts of many college laboratories under ordinary conditions must be idle for many months in the year. This is not a criticism of the laboratory, but a necessary overhead ex- pense which the colleges recognize and which they would gladly overcome were more money or a greater number of classes available. A piece of apparatus perfectly adapted for research work may serve a single class for a single day and then lie idle for half a year or a whole year, until new classes take the same work, unless opportunity is developed for research work. It is, therefore, of tremendous interest and help to students who often see only their instructors engaged in laboratory and test work to be able to see the Bureau of Mines men working as professional engineers on the same class of problems with which they are expected to familiarize themselves. CLOSER CO-OPERATION IN RESEARCH INVESTIGATION 581 Reaching the Public From the Bureau point of view it has been logical to seek location at or near a college or educational institution where college office space and equipment are available, where the faculty are in touch with local needs and situations, and where the surroundings are congenial for research and mutual help. Another point which must not be overlooked is the ideal chance offered in this way for the Bureau to get its ideas and results of its research across to the engineering public. Although it is a Government institution, it is without police or mandatory powers and its effectiveness depends on getting its work across, on the one hand, to the practicing industry and, on the other, to the men who will control and direct industry within the next few years. In engineering, as in medicine, it is the undergraduate who receives the advanced ideas and processes, and, although later practical experience may make him more conservative as to introduction and application of new ideas, yet his very association in college with advanced prin- ciples and processes gives him that flexibility of mind necessary to apply new ideas, which never leaves him. His association with the station as an undergraduate or graduate student gives him the "Bureau point of view." This co-operation between the Bureau and the college for the carrying out of research work is an ideal one ; working together they can present to the industry with double strength things which they believe are for its betterment. Every corporation has its own research problems. A re- search laboratory of a corporation is engaged primarily in the problems whose solution is of direct benefit to the corporation, and the only point of view is the application of the problem to the commercial success of the corporation. While the large corporations a few years ago felt able to handle their own re- search problems, the writer ventures that today there is not one of the corporation research departments but that will admit there are basic and far-reaching problems which should be solved for the benefit of the whole industry and whose solution would be of direct benefit to them in their work. They further admit that they cannot possibly consider taking the corporation money and time to work on these problems, the solution of which might be of as much or more benefit to their competitors 582 PROCEEDINGS OF AMERICAN MINING CONGRESS as to themselves. Further, the results of corporation research generally are not available to the public. The small corporation in every case must look to outside help on its problems. True industrial research is a slow and costly problem not at all adapted to a small commercialized depart- ment, which must show decided progress each day. The industries often fear that solution of their problems by the colleges may involve such a departure from the dollars and cents consideration that they will not benefit by them and that on account of the demands of the college teachers for regular work the time taken may be too great a factor. That they have been willing to co-operate with the Bureau of Mines or with the Bureau and college jointly has been proven in many cases during the past few years. Bureau Needs Colleges and Public Finally, the Bureau, on its part, needs both the other agen- cies. It must have the college to foster and keep alive for it the ideals of research and to furnish the very material help in men, materials or ideas, and because it opens to the Bureau the most fertile field for the distribution of results and ideas from research. On the other hand, the Bureau must be of direct service to and at the call of the industry, and the industry must be satisfied that the Bureau's help is worth receiving and its ideas practical and worth adopting, else it cannot continue to exist. Therefore, the Bureau stands ready at all times to co- operate with the industry and with the college in the solution of problems of benefit to the industry. RACIAL CHARACTERISTICS AND THEIR EFFECT 583 RACIAL CHARACTERISTICS AND THEIR EFFECT IN INDUSTRY By THOMAS T. READ, Engineer in Charge Division of Education and Information, U. S. Bureau of Mines. Presented at National Conference of Schools of Mines of The American Mining Congress A short time ago your chairman wrote me that the subject of the national temperamental characteristics of labor, making certain nationalities suitable or unsuitable for mixed labor in mining and metallurgical work, was to be considered at this session and asked me to contribute to the discussion. He coupled this with the statement that he found it difficult to find anyone who was informed on this subject, and my first impulse was to respond that he had not yet succeeded in that task, for I certainly do not feel that I am possessed of sufficient data to attempt its discussion upon that basis of ascertained fact which is the standard method of the engineer. My curiosity was aroused, however, to ascertain whether there exists any body of organized knowledge on this subject, and I furthermore re- flected that the time was too short to permit the "passing of the buck" to some one else. I have, therefore, made a hasty survey over the field of such published information as is available to me, and all that I can now present partakes rather of the nature of suggestions than a discussion of data. We are all well aware that races have their mental charac- teristics, and it is a common saying that the Latin races are excitable, with all that the word connotes ; Scandinavians are somewhat phlegmatic, but likely to have moods of depression and exaltation; and so on through the various peoples who make up our industrial population. There is a great deal of material on this general topic scattered through literature, but I cannot find that anyone has brought it together from the in- dustrial standpoint. The nearest approach seems to be an article on "Race Psychology," by Professor Thomas, of the University of Chicago, which appears in the American Journal of Sociology for May, 1912. This, however, is not a presenta- tion of results of investigation, but is rather an outline of the 584 PROCEEDINGS OF AMERICAN MINING CONGRESS factors involved and includes a suggested form of questionnaire that may be used in gathering data on this subject. A hurried scanning of the subsequent volumes of the American Journal of Sociology has not disclosed any results from this investiga- tion, and I conclude that it is still in progress. Another source-book is Professor Ripley's interesting volume, "The Races of Europe." His chapter on acclimatization is especially suggestive, but deals almost wholly With physical factors and barely touches on mental characteristics. Professor Collins' "Races and Immigrants in America" and a number of other volumes dealing with racial problems offer hope of help, but on investigation prove disappointing to an investigator with the industrial viewpoint. Massachusetts Data Interesting The reports of the Statistics of Labor of the Commonwealth of Massachusetts present a great deal of interesting data that might be made the basis of useful investigation. These tables show, for example, that, taking 100 per cent, of the men of a given descent as the basis, twice as many of those of Irish descent are engaged in government as compared with those of English descent, while as compared with those of German descent the proportion is three to one. On the other hand, the proportion of the Irish engaged in manufactures is only two- thirds as large as that of the English, who are approximately equal to the German. Only half as large a proportion of the Irish have children at work as have the English and German. Statistics such as these must be accepted with caution, because those just given might be taken to indicate that people of Irish descent are especially well fitted to exercise the functions of government, whereas, as a matter of fact, that is at least open to question, and the reason for their preponderance in the occu- pation of governing other people may perhaps be traceable to other causes than natural aptitude. The statistics are of very considerable value, however, because they check out in many respects. Thus, for example, comparing the men engaged in manufacturing occupations, it appears that the proportion of Irish to those of all other foreign descent is almost two to one in the case of carpeting ; one-half to one in the making of fur- niture. This seems reasonable, because we know that the Irish RACIAL CHARACTERISTICS AND THEIR EFFECT 585 people have had much experience in textile trades and rela- tively little in woodwork. These statistics have not advanced us very far on our road, however, because there is nothing in them to indicate whether the differences found are due to mental characteristics or merely to previous experience. It would probably be difficult to say whether the tendency in the clothing trade for the busi- ness to be largely in the hands of Hebrews is due to natural aptitude of the Hebrew for this business, or whether it is due to other conditions, such as early experience, or the possibility that development in that field is easier for a man of his race than it is in certain other lines. Suppose that statistics show that out of the total number of negroes attempting to earn a living through the legal profession a very small percentage were successful. It might be argued that these figures indicate that the negro has but very little aptitude for the law, but, on the other hand, it might be held that negroes on the average are not engaged in large businesses which furnish profitable em- ployment for lawyers ; that if they were they would probably give their business to a white lawyer, and that few white people would employ a negro lawyer. It is not safe, therefore, to gen- eralize from statistics, for we are well aware that statistics can be made to prove almost anything that the author wishes to prove, and their use must be attended with corresponding caution. Need of Exact Data Nevertheless, in the face of this apparent lack of accurate data, there seems to be definite need for exact information on the subject of whether racial characteristics are of any large importance in industrial life. There would appear to be two ways of securing the necessary information. The one would be to awaken the sociologists, psychologists and psychiatrists to the importance of the problem and wait for them to supply the data. The other would be for men connected with industry to attempt to secure it, with such help as can be secured from the groups already named. I must confess to a belief that such an investigation will prove a rather hard one, because of the difficulty of securing data collected on the basis of the needs of the investigator. The 586 PROCEEDINGS OF AMERICAN MINING CONGRESS Massachusetts statistics to which I have just referred group under those of Irish descent not only those who were born in Ireland, but those who were born in this country of Irish parents or from one Irish parent as well. Now, statistics show us in the case of so simple a matter as the birth rate that the birth rate among people of foreign birth is much higher than that among those of native stock, but, on the other hand, the birth rate among those who are themselves children of parents of foreign birth is still lower than that of the native stock. Something of this sort may obtain in many cases, and it may very well be that an attempt to generalize on the mental traits of the Roumanian would prove to be complicated by the fact that Roumanians born in this country would have quite dif- ferent mental traits from those born in Roumania. The transfer of an individual from his own to a foreign country is a phenomena which Professor Thomas designates as a crisis, defining the crisis as any marked disturbance of habit. Meet- ing a crisis such as this usually results in either greater fitness or reduced efficiency. The conflict that arises between old habits and new may produce peculiar mental states that might easily be considered as characteristics of the man's race, when as a matter of fact they are only an index to the conflict between his old habit of living and thinking and his new. It sometimes happens, too, that a failure to cope with new circum- stances leads to a loss of good qualities that had been developed under the old. I have often heard it remarked of Chinese stu- dents that they had dropped the ancient Chinese standards of good manners and had not yet acquired the foreign ones. These are transitional phenomena and not racial attributes. Men Seek Pleasurable Occupations One other thought that I wish to bring out is that mining has heretofore been dependent on a supply of workers who are not provided with much mental technique. I think we can all be quite certain that the supply of such material is decreasing and the few large reservoirs that still exist, such as China and India, are going to be unavailable to us for reasons both political and economic. It would, therefore, seem more and more desirable for men engaged in the mining profession to devote consideration to the question of the mental factors in their RACIAL CHARACTERISTICS AND THEIR EFFECT 587 labor problem. Other things being equal, men are most likely to engage in the occupations that yield them the maximum of pleasurable activity. The tendency of people to engage in the most pleasurable occupations will only be counterbalanced by the necessity of paying more for the less pleasurable ones. It is a condition, not a theory, which confronts us in this regard, for a man who can neither read nor write but who is willing and able to carry coal across the sidewalk can now earn more in a day than a college professor. Surely it is becoming neces- sary to bring about some readjustment whereby the occupa- tions involving manual labor will be much more attractive to the workman. Since it is to the engineer's interest to have this problem solved, it at once becomes his duty to attempt to settle it himself. It may be that his efforts will be scorned by pro- fessors of sociology and psychology, but he can well afford to overlook a supercilious attitude in this regard, provided he gets any results that are of value to him. 588 PROCEEDINGS OF AMERICAN MINING CONGRESS SAFETY, WELFARE AND INDUSTRIAL RELATIONS WORK Address Before The American Mining Congress by C. W. SEIBERLING, Vice- President the Goodyear Tire and Rubber Company I have been asked to tell you of the experience of the Good- year Tire and Rubber Company in industrial management and in social service and recreational work. I want, first, to give you a little of the early history of the Goodyear Tire and Rub- ber Company, so that you may have an opportunity of drawing some conclusions as to the causes of its rapid growth. The Goodyear Tire and Rubber Company was organized in July, 1898, by my brother, Mr. F. A. Seiberling, and myself. Therefore, on the first of July this year we became of age and were 21 years old. The capital paid in in July, 1898, was $100,000. The number of our employes for the first year was approximately 100. The amount of our business the first year was approximately $150,000. This year the amount of capital paid in is approximately $85,000,000. The number of our employes at Akron is approximately 25,000, and with our sub- sidiaries, the Southwest Cotton Company, of Phoenix; the Goodyear Cotton Mills, of Goodyear, Conn. ; our plantations in the far East and our Canadian plant, we have approximately 47,000. Our total business for this year is approximately $169,000,000. Co-operation Built the Business What are the big factors causing this growth? One of the large factors can be spelled in that one word "co-operation"; co-operation of its directors, its management, the heads of its departments and its employes. The first nine years pf our existence we traveled over a rough and rocky road, and this road was particularly rough and rocky during the years of 1903, 1904 and 1905. Every time the front door of our office opened I could feel the chills go up and down my back, thinking that some creditor was coming in to close us up, but we weathered the storm by the SAFETY, WELFARE AND INDUSTRIAL RELATIONS WORK 589 loyalty, efficiency and hard work of the heads of our many departments. Rewarded Faithful Employes In 1907 things began to come our way, and my brother and I felt 'that the heads of those departments, who had been so loyal and efficient, were entitled to something more than salary. We, therefore, concluded to take them into partnership. We selected some 75 or 80 of the heads in the factory and office and gave them stock running from $5,000 and down to $500, ac- cording to their value to the concern. These employes gave notes for their stock, the notes to be paid for in dividends. That man received $5,000 worth of stock in 1908 could sell his holdings today for approximately $200,000. Some eight years ago we formed a Service Pin Association. Any employe in our service 5 years receives a 5-year pin; when in our service 10 years, a 10-year pin ; 15 years, a 15- year pin; and 20 years, a 20-year pin. There are but ten 20-year employes. There are more 15-year employes, still more 10 and a very large number of 5-year. Employes Association Pays Dividends Mr. P. W. Litchfield, our factory manager, some four or five years ago, gave the Service Pin Association $100,000 of the common stock of the Goodyear Tire and Rubber Company. The Service Pin Association has now assets in excess of $800,000. Every year they pay dividends to their members; a 5-year member holding one share, a 10-year member holding two shares, a 15-year member holding three shares, and a 20- year member holding four shares. Employes Study Rubber Business Some eight years ago we formed what is known as a "Flying Squadron." That squadron first consisted of 50 men. This has been increased until now there are 1,000. This Flying Squadron takes a regular course in rubber manufacture in our factory. Every member goes to school an hour each day and every member works and becomes an expert on each operation in the manufacture of our rubber products, and at the end of 590 PROCEEDINGS OF AMERICAN MINING CONGRESS three years he is given a certificate as a master rubber worker. He also receives five shares of Goodyear common stock at par, to be paid for in dividends. As a result of our giving stock to employes in 1908, our Service Pin Association and our Flying Squadron, we have now over 1,000 employes who are common stockholders. Workmen Finance Corporation This year we are re-financing our company and increasing the capital to two hundred million ; one hundred million being 7 per cent, preferred stock and one hundred million common. We have sold to 17,600 of our employes this 7 per cent, pre- ferred stock, amounting to approximately $8,000,000, giving them practically two years to pay for same, at the rate of $1 per share per week. They can subscribe from 1 to 20 shares. Every employe who stays in our employ, at the end of each year, and up to five years, if he has his stock, gets a 3 per cent, bonus. He is, therefore, getting a 10 per cent, return on his investment. As a result, we will have practically 18,000 to 19,000 employes who are stockholders in our com- pany. They are not simply employes, but they are part owners, and with such conditions you can get co-operation, which you never could get otherwise. Modern Homes for Workers Some seven years ago we started a housing proposition on a high piece of land known as "The Goodyear Heights." We had the planning done by a Boston landscape architect. The lots run from 50 by 120 to 150 feet deep. No two houses of the same design are allowed to stand side by side. All houses are fitted with electric lights, gas, water, sewer and all modern conveni- ences, and range in price from $2,500 to $10,000. The em- , ployes are given 15 years to pay for these homes, paying monthly 20 to 35 per cent, more than they would have to pay rent. We now have in this allotment 1,800 homes. I do not think there exists in the United States any finer workmen's homes than stand in this allotment. What is the result ? You get an employe who is happy and contented, who finds some- thing in life to live for besides working, eating and sleeping. SAFETY, WELFARE AND INDUSTRIAL RELATIONS WORK 591 Industrial Democracy Five months ago we started the industrial management plan in our factory. This was a plan worked out after much hard thought by our factory manager, Mr. Litchfield. It is based on principles similar to the form of our United States Gov- ernment, consisting of a House of 40 members and a Senate of 20 members. The factory is divided into 40 Representative districts and 20 Senatorial districts. Any man can be a voter who, first, is an American citizen, who is over 18 years of age, and who has been in our employ constantly for more than six months. A man can be elected a Representative who is, first, an American citizen, who is over 21 years of age, and who has been in our employ continuously for over a year. A man can be elected a Senator who is an American citizen, who is over 25 years of age, and who has been in our employ continuously for over five years. Exciting Political Contest The first election was as exciting as any you have had in your several cities. Two papers were issued, one called "The Goodyear Whistle," and the other "The Goodyear Echo," each boosting its candidates. The 60 men chosen were good men. Had the management chosen the men I do not believe they could have chosen better. No executive or head of a depart- ment could be a voter or could be elected to office, and we dis- couraged having even foremen elected to office. However, about 20 out of the 60 elected were foremen. Real Test of Loyalty Six weeks after the plan went into eifect the Machinists' Union in our city declared a strike. We have about 750 machinists in our employ and about 25 per cent, are union men. The Union made a demand for 44 hours instead of 48 and 88 cents minimum wage. The fact was, they simply wanted to get recognition of the union and have a closed shop, which is something our company would never stand for. We were pay- ing machinists from 88 cents to $1.12 per hour. A committee of five union men went to the representative of their district and put up the demands. He told them that 592 PROCEEDINGS OF AMERICAN MINING CONGRESS they did not come representing Goodyear machinists, but the Machinists' Union. They acknowledged this to be the fact. The representative said he would put the matter up to the House and Senate, if the union would abide by its decision. This they agreed to do. The House and Senate worked on the matter five or six nights from 7 to 11 o'clock, but had reached no decision on the 15th of August, and the machinists were ordered to strike. Forty-two per cent, of our machinists left their work. The 58 per cent, kept on the jobs. After being out some six weeks our machinists wanted to return and sent a committee to the representative, asking if they could return in a body. He told them "no" ; that they had left the employ of the company and would have to apply for work as individuals. This they finally did. Strikers Rejected by Fellow- Workmen The Senate appointed a committee of three to examine each man. He was asked if he was satisfied with the wages, with the working conditions and with the hours, to which he answered "yes." He was asked if he would strike tomorrow if the union ordered a strike. Some 25 or 30 said they would, and they were told to pass out as there was no work for them. The rest were told to go back to their jobs. As a result, this com- mittee refused work to some 35 of the men who said they would strike if the union told them. Employes Control Conditions The House and Senate have passed some good laws. They have passed some laws which in previous years we would not consent to, for the reason we felt the workmen would abuse them, but they have the matter in their own hands and they are going to see that no one does abuse them. They control all matters of wages, hours, working conditions and grievances. When they pass a law it is sent to the factory manager. If he disapproves, it is sent back to the House and Senate, and if they pass it by a two-thirds vote, it becomes a law, unless vetoed by the Board of Directors. I have felt that it is going SAFETY, WELFARE AND INDUSTRIAL RELATIONS WORK 593 to prove a success a fine thing for the employe and a fine thing for the stockholders of the Goodyear Tire and Rubber Company. Athletics and Social Service Now, as to social service and recreational work. Some 10 years ago we started in on athletics. Since that time we have broadened the scope of the work, and today we have 27 differ- ent athletic and social service organizations, of which there are the following: The Three Arts Club, Friars Club, Green Room Club, Baseball Regulars, Baseball Silents, Baseball Inter- Department, Girls' Baseball, Football Regulars, Football Silents, Basketball Regulars, Basketball Silents, Girls' Basketball, Bas- ketball Inter-Department, Regular Soccer, Playgrounds, Girls' Recreation Division office and factory, Goodyear Band, Good- year Orchestra, Tennis, Bowling, Track, Rifle Club, Triangle Club, Boxing, Wrestling, Boy Scouts Work, Goodyear Girls' Camp and Goodyear Y. W. C. A. Every one of these activities appoints a member to the Cen- tral Committee. The Central Committee elects an Executive Committee of seven, who run all the social and recreational activities of the Goodyear Tire and Rubber Company.' The Three Arts Club is composed of about 150 members from the general and factory offices, who put on some of the finest musical comedies you have ever seen, and their singing is splendid. This year they are studying the opera "Robin Hood," which will be put on in February or March. The Friars Club is a minstrel troupe composed of 50 mem- bers of the factory, which puts on some of the finest amateur performances you have ever seen. I went with them to Camp Sherman, Chillicothe, Ohio, a year ago last December, where they gave an entertainment to 5,000 soldiers. It was one of the finest amateur performances the soldiers had witnessed. A year ago last January I went with them to Camp Sheri- dan, Montgomery, Ala., where they put on an entertainment for the soldiers. These two trips were made at an expense of $4,500 to the Goodyear Company, but it was money well spent. It gave the soldiers a fine entertainment and the men got much out of giving pleasure and entertainment to others. 594 PROCEEDINGS OF AMERICAN MINING CONGRESS To show you the spirit of these Friars, who, you understand, are all employes of the factory and factory office, every four or five weeks they go to the Springfield Lake Sanitarium, five miles from Akron, where there are 120 tubercular patients, 60 to 65 per cent, of whom go away in boxes. Here they give a fine entertainment to amuse these unfortunate people, many of whom can live but a short time. They also go to the County Infirmary, where there are about 120 old men and women who are down and out, and give pleasure and entertain- ment. They also go to the Children's Home, where there are 120 kiddies who have no fathers or mothers. They also go to the Children's Hospital. Note the spirit of these men, who are not selfishly thinking of themselves, but are thinking of their fellow-men who are less fortunate. The Green Room Club is composed of actors and actresses who are taken from our factory and factory office. You have no idea of the amount of hidden talent there is in these indus- trial institutions. Our regular baseball team is one of the best in the city. Three out of five years they have won the city championship. They are fine fellows, good sports in winning and also in losing. Last September I took a trip with them, going to Chicopee Falls, and Goodyear, Connecticut. I spent four days with them and had one of the best times of my life. Deaf -Mutes Employed The silent baseball team is composed of deaf-mutes, and, incidentally, I might say we have 550 deaf-mutes, the largest colony of deaf-mutes employed by any industry in the world. They are fine workmen and all good sports. They also have a football team, which won the championship of the city a year ago. I just wish I had time to tell you of one of their banquets which I attended. You might think it was a pretty quiet affair, but, by "gory," it was pretty good. [Laughter.] Then, they have a basketball team. The mute girls have a basketball team which is a corker. They played the Y. W. C. A. girls' team and they got into a fight. The Y. W. C. A. girls went to scratching. The mute girls scratched back and they won the fight and the game. SAFETY, WELFARE AND INDUSTRIAL RELATIONS WORK 595 [Laughter.] They didn't talk, they just scratched. Our girls' baseball team has never been beaten, and it is simply wonder- ful to watch them bat and field the ball and play the game. Our regular basketball team has never been defeated in the city of Akron in the past five years by an industrial team. Our soccer ball team won the city championship last year, also the State championship, but lost the United States cham- pionship. We have a fine band and we have a fine orchestra. We have six fine tennis courts. We furnish them a fine baseball field, which is as good as any in the land. We also have a fine track and oval on which football games and the running and jumping contests take place. We have a fine children's playground, and on any Saturday or Sunday you can see from 300 to 500 kiddies sliding down the toboggans, riding around the whirligigs or wading in pools, all under the supervision of four or five nurses. Building a Clubhouse We are now completing a clubhouse for our employes which will cost approximately two and a quarter million dollars. This clubhouse contains a gymnasium 220 by 120 feet. Next to the gymnasium is a theatre which will seat 1,800 people, the stage being between the two places; theatre and gymnasium will seat approximately 7,000 people. Beneath the gymnasium we have 12 fine bowling alleys, 5 shooting galleries, 1,000 lockers and 50 shower baths. The bowling alleys are going from 7.30 in the morning until 11 o'clock at night. In the club- house we will have a reading room, meeting room for the House and Senate, a restaurant, etc. We are furnishing the equipment for all these athletics, but the men themselves, through the Central Committee, are run- ning them and they are making them break a little better than even. Any day at noon you can see from 300 to 600 factory em- ployes dancing during the noon hour in the gymnasium, and usually from 100 to 150 girls are dancing in the recreation room in the general office. We have a Y. W. C. A. Club, numbering 700 women, which is the largest industrial Y. W. C. A. Club in the world. 596 PROCEEDINGS OF AMERICAN MINING CONGRESS Educational Work We have a factory school in which approximately 5,000 of our employes are enrolled. The school has 43 teachers and is in session from 7.30 in the morning until 10 at night, in order to take in the three shifts. The school teaches Americanism, reading, writing, grammar, chemistry, mathematics, drawing and factory practice. About 50 per cent, of our employes, including foremen, flying squadron, go to school one hour per day on company time, and the other 50 per cent, go on their own time. Our factory manager, Mr. Litchfield, is responsible for most of this splendid work. What does all this mean? It means that we are trying to make the employes happy and contented, that we are taking a human interest in the employe. You should understand that the employe does not want charity, but he does like to have some interest taken in him. If the employe is happy and con- tented, he will do more for himself and he will do more for you. If he is unhappy and discontented, he will do less for himself and he will do less for you. It does seem to me that the time has come in this world when we should think less of self and a little more of our fellow-men. Building Men Every industrial institution ought to take a human interest in its employes and help to make them happy and contented. If it does not want to do this from a humane standpoint, then it should be done from a selfish standpoint, for it wins either way. When you stop to think of it, what is there worth living for in this world except happiness? And how can any of us be happy unless we help others to be happy ? And by helping your employe to be happy and contented you are not only helping to make him a good employe, but you are making him a better American citizen. I thank you. [Applause.] A PROPOSED FIRST-AID ORGANIZATION 597 A PROPOSED FIRST-AID AND MINE-SAFETY SOCIETY ORGANIZATION By J. J. RUTLEDGE, Mining Engineer, U. S. Bureau of Mines, McAlester, Oklahoma, and NOEL HUBBARD, Chief Clerk, Bureau of Mines, Golden, Colo. (Published by Permission, Director Bureau of Mines) One of the greatest difficulties in carrying on first-aid and mine-rescue work is the continuation and carrying on of the work throughout the year, especially after the instructor, who has given the training, has left the camp. It has been the custom since the inception of the work to stimulate the interest by annual first-aid contests and, during the later years, by mine-rescue contests, in addition to the first-aid contests. These contests are very good indeed, arouse enthusiasm and interest in the work and get the co-operation of operators, and miners for the time being, but the interest soon wanes and during the remainder of the year the work is not carried out regularly or systematically. What is needed is something to make the work more representative and one in which all the employees in a mine, from the general manager down to the trapper, will be interested. The interest of miners is only aroused when they have a voice and a part in the work in hand, and any means to increase the interest of the miners and other employees should be encouraged and welcomed. Generally speaking, the mine officials are usually much more interested in the first-aid and rescue work than the miners, but if the work is to be a success the miner must also be interested and encour- aged to take part in it, for he is the one for whom the work is intended and for whose benefit it is carried on. Should Be National Movement In any work or movement at the present time success is only possible when the movement is made representative. Our war work has brought us some great truths, one of which is the following : 598 PROCEEDINGS OF AMERICAN MINING CONGRESS No work or organization, be it commercial, social, or religious in character, can succeed, or even exist, without the support of State or National organizations. Our Commercial Clubs, Rotary and Lions Clubs, and all our church organizations require the support of the State and National bodies of which they are a part. In like manner first-aid and mine-rescue work requires the support of State and National organizations if it is to suc- ceed or live. The writers believe that this humanitarian work is as much entitled to a county, state and national drive for funds for its support as is the Red Cross. The need for a permanent organization of miners trained in safety, first-aid and rescue work has been long felt. The many thousands of miners trained by the Bureau of Mines and others are, with few exceptions, unorganized, and for lack of oppor- tunity to meet together, exchange ideas regarding safety in mining and methods of administering first aid, or of conducting rescue operations, soon lose interest in or get out of touch with such work, or, leaving the mines in which employed and where they received training, it becomes difficult to communicate with them in case of emergency. Moreover, such societies as have been organized at mines are without definite program or object, and do not know what to do when they meet, aside from the general practice work, which soon becomes monotonous. Plan for Organization This paper outlines a plan of organization and of definite work for mine safety societies, and in such a way that the work should be of interest to the men, and the organization be kept alive. Experience has shown that it is difficult to secure results without an incentive to enthusiasm and the bestowal of honors, all of which is lacking under the present unorganized system. The only exception to this is first-aid contests, which have little effect upon the interest in organized safety work. The only first-aid practice engaged in by miners under present conditions is that had when training for preparation for an annual first- aid contest. Such training, while beneficial, generally lasts for a few weeks and is then dropped. The system herein outlined will, it is believed, provide the opportunity and incentive for enthusiasm, and attaining of honors needed to keep up interest in organized safety work. A PROPOSED FIRST-AID ORGANIZATION 599 It is believed that under the plan herein outlined the men can be induced to meet regularly throughout the year for practice and for the study of mine-safety, first-aid and rescue and recovery problems. The spirit of rivalry present in first-aid and mine-rescue con- tests will, it is believed, be manifest in this work to a greater extent than in the unorganized contests, on account of the larger field and the opportunity to secure honors. The plan for issuing certificates provided herein will be an added stimulus and will in many instances be of value to the holders of the cer- tificates in seeking employment at mines or in other industries. It is believed that the following plan will prove to be a solu- tion of the problem of interesting the miner and mine employees in this humanitarian work : SUGGESTED CONSTITUTION FOR A SAFETY SOCIETY ARTICLE I Name The name of this organization shall be "The Safety Society of the Coal Company." ARTICLE II Object The object of this organization is to train the members in the principles of first-aid to the injured and in the principles of safety first, in order that said members may be able to render aid to fellow-workmen in these cases accidents, sickness, etc., to endeavor to avoid and reduce to a minimum the accidents that occur in the mining industry, to make more safe the life and limb of the active working miner, and to better condi- tions generally in the miners* lives. ARTICLE III Membership SECTION 1. The membership of this body shall consist of only such persons as hold a proper certificate issued by the United States Bureau of Mines, or those who have signified their intention of taking the Bureau's course of instruction and securing such a certificate. Provided that in case any member shall not take the training and secure a certifi- cate, or become eligible for a certificate, within a period of six months after becoming a member of this Society, he shall forfeit this membership and shall not be eligible to membership again until he does secure such a certificate, unless the Bureau of Mines shall rule otherwise. SEC. 2. Each member shall before being admitted to the full fellow- ship of the Society sign the following pledge: "I hereby promise that I will faithfully abide by the properly constituted rules of this Society, and that I will endeavor at all times to follow the safety rules laid down by the Company; that I will, whenever possible, and under any circum- 600 PROCEEDINGS OF AMERICAN MINING CONGRESS stances, render such aid as I possibly can to any person who may be injured; and that I will suggest to the management, through the Safety Committee, any safety rules that would in my opinion make more safe the general working conditions around the mine; that I will warn any person in or about the mines that I see is about to do something that is dangerous or contrary to the rules of the Company, but I will do this in the proper way and spirit; and that I will faithfully attend the meet- ings of this organization and endeavor to carry out the purposes for which it is organized in spirit and in truth." ARTICLE IV Dues There shall be no initiation fee. The dues of the organization shall be one dollar ($1.00) per year, payable in quarterly installments in advance. A member joining during the first half of any quarterly period, his dues shall begin with the first half of that quarter, and if joining during the last half of the quarter, his dues shall begin with the first succeeding quarter. ARTICLE V Officers The officers of this Society shall be a president, a vice-president, a secre- tary, and a treasurer. These shall be elected annually and perform the duties usually appertaining to such officers. ARTICLE VI Committees SECTION 1. There shall be maintained an Executive Committee, con- sisting of the president, vice-president, secretary, and treasurer; a Mem- bership Committee, Instruction Committee, and a Social Committee, con- sisting of three members each, and a Safety Committee consisting of one-fourth of the active members of the Society. SEC. 2. The duties of the Membership Committee shall be to seek to interest others in first-aid instruction and thus increase the membership of the Society, and such other duties as the Society may instruct it to carry out. The Instruction Committee, of which the vice-president shall be chairman, shall make arrangements for study courses, lectures, etc., on the first-aid and safety subjects for the benefit of the Society. The Social Committee shall take care of the social side of the organization. The Safety Committee shall be charged with the general safety work around the mine, so far as the Society is concerned. SEC. 3. The Executive, Membership, Social, and Instruction Commit- tees shall hold office for one year, or until their successors are appointed or elected. The Safety Committee, with the exception of the chairman, shall hold office for one year, or until its successor is appointed. SEC. 4. As soon as the different committees are appointed, the presi- dent shall advise the Mine Safety Engineer of the Bureau of Mines, through the District Engineer, of the names of all members of such com- mittees, and whenever it shall be necessary to change any committee the Mine Safety Engineer shall also be notified of this fact through the District Engineer. A PROPOSED FIRST-AID ORGANIZATION 601 ARTICLE Nil Reports SECTION 1. All officers and committees shall make a written report of the work done by them at least once a year, and the president of the Society shall render a written report, under oath, to the Director of the Bureau of Mines, through the District Engineer of the district in which the Society is located, covering work done by the Society for a period ended June 30 of each year. The secretary shall keep an accurate account of the number of members present at each meeting, and also an account of the work done by each member. He shall report these facts to the president at the first meeting of the Society after June 30 of each year, and the president shall promptly transmit said information with his annual report to the Director. SEC. 2. A mouthly report shall be rendered by the president of the Society to the District Engineer of the district in which his Society is located, giving such information as may be required by the Bureau of Mines. SEC. 3. A monthly report shall also be rendered by the chairman of the Safety Committee to the management of the mine, setting forth such conditions in or about the mine as the Society deem to be dangerous, and suggesting a suitable rule or rules to eliminate such unsafe condi- tions. In case the danger is considered of such a nature as to warrant it, a special report may be made by the chairman of the Safety Com- mittee at any time, calling attention to the danger, and suggesting the enforcement of proper rules to meet it. ARTICLE \lll-Election8 The officers of the Society shall be elected annually, at the second regular meeting of the Society after June 30 of each year, and when elected shall constitute an Executive Committee to appoint the members of the other committees. Provided that a special election may be called to fill any vacancy that may occur during the year. The president shall be the chairman of the Executive Committee. ARTICLE IX Meetings The Society shall meet at least once every week for the purpose of studying first-aid methods and practicing same, and also to study safety principles. The meeting shall continue in session for at least one hour, the first 15 minutes to be devoted to reading the minutes of the past meeting and to a general discussion of the "good of the order." The next 15 minutes shall be devoted to reviewing and reciting that part of the study course covered since the last meeting, and the remainder of the time devoted either to actual first-aid practice and demonstrations or to talks or lectures on the principles of first-aid and safety work. ARTICLE X Accident Reports SECTION 1. Whenever any member of the Society shall be called upon to render first-aid treatment he shall make a detailed report to the secre- 602 PROCEEDINGS OF AMERICAN MINING CONGRESS tary of the Society. Said report shall contain the following information : Date of accident; nature of injury; cause of accident; treatment rendered, and remarks. The secretary of the Society shall enter this information on a proper blank to be furnished him, and shall transmit same, under oath, with his report to the president, who shall in turn transmit same with his annual report to the Director of the Bureau of Mines. SEC. 2. The treatment given an injured person by a member of the organization shall be thoroughly discussed at the time the injury is entered upon the records by the secretary, in order to determine whether or not the treatment was correct and the best possible treatment that could have been given. Also, discussion shall be had as to how the acci- dent could have been avoided by the use of proper care or the enforce- ment of proper rules. ARTICLE XI Rules SECTION 1. The members of the Society shall abide by the rules and regulations laid down by the United States Bureau of Mines for the con- duct of such organizations. Such additional rules may be adopted as may seem fit by a majority of the members of the Society, provided such rules do not conflict with the rules of the Bureau of Mines, and provided that a copy of such rules be immediately furnished the Mine Safety En- gineer of the Bureau through the District Engineer. Provided, also, that the Bureau of Mines may revoke any rule adopted by the Society if it sees fit. SEC. 2. Violation of the rules of this Society, or of any safety rule which the Company has in force, will subject the offending party to such punishment as the Society may by properly adopted rules provide. In case of flagrant violation the offending party shall be subject to dismissal from the Society. What violation shall constitute sufficient cause for dismissal shall be decided by the majority of the members of the Society after all the facts have been presented to them. ARTICLE XII Authorities On all questions regarding first-aid and safety-first methods, and on any other questions that may arise in this Society and which cannot be settled to the satisfaction of the Society, the Bureau of Mines shall be the authority, and its decision shall be final on all points. ARTICLE XIII Dismissal Whenever any member of this Society shall move to another camp, the president shall, at his request, grant to him letter of dismissal, stating that he is a member in good and regular standing, and give the work that he has done with the Society during the time he has been connected with it. A PROPOSED FIRST-AID ORGANIZATION 603 RULES FOR DETERMINING STANDING OF A SOCIETY RULE 1. Whenever a Society has faithfully carried out the provisions of the above constitution for a period of one year, ending June 30th, and the provisions contained in Rule 6, following, such members as have com- pleted the required books of the study course and having been present at least 50 per cent, of the meetings shall be awarded proper certifi- cates stating that they are members of an "A-l Safety Society." RULE 2. The individual members of the Society who shall have the highest general average for the State in which the Society is located, and who have completed the required books in the study course, and have attended at least 50 per cent, of the meetings of the Society, shall receive a proper certificate stating that the said members are members of the "Master Safety Society of the State of for the year " RULE 3. The individual members of the Society who shall obtain the highest general average for the United States, and have completed the required books of the study course, and have been present at least 50 per cent, of the regular meetings of the Society, shall receive a proper certificate stating that the said members are members of the "Master Safety Society of the United States for the year . . . ," and, further, each member receiving said certificate shall receive an appropriate medal to the same effect. RULE 4. Any person holding three annual certificates of membership in an A-l Society and who has completed the entire study course of the Bureau of Mines, and holds a certificate in Mine Rescue Work issued by the Bureau of Mines, shall be entitled to a certificate as a "Master Safety Man." RULE 5. Any person holding the certificate "Master Safety Man" shall be a life member of this Society and be entitled to all the benefits and privileges as such. RULE 6. In order to be entitled to "A-l" certificates the Society must fulfill the following requirements : 1. Hold a meeting at least once every week. 2. Have an average attendance during the year of 50 per cent, of the membership of the Society. (The rating on attendance will be on a basis of 100 points, a 50 per cent, attendance giving 50 points, etc.) 3. Have an average attendance of 50 per cent, of its membership taking the study course and completing at least two of the books each year. (Study course will be rated same as attendance.) 4. Written reports must be filed with the president at least once every year by the different committees, stating just what work has been done by each. The secretary must submit a detailed report, under oath, to the president at the close of the year, giving the work done by the indi- vidual members of the Society, and must also furnish the president with such information as will enable him to comply with Rule 6, paragraph 6. 5. The president of the Society must make an annual report under oath to the Director of the Bureau of Mines, through the District Engineer 604 PROCEEDINGS OP AMERICAN MINING CONGRESS having charge of the district in which the Society is located, transmitting all the details necessary to determine the standing of his Society. 6. The president of the Society shall also submit to the District Engi- neer of the district in which his Society is located a monthly report showing the following information: Number enrolled, number present at each meeting during the month, and number taking study course. 7. The chairman of the Safety Committee must submit a monthly report to the management of the mines, bearing on the safety condition of the property. 8. Maintain a suggestion box at some convenient place about the mine. 9. Hold a get-together social at least once every three months. (Cer- tificates will be isued only to members of the Society who fulfill the above requirements. ) RULE 7. In determining the grades of the societies for their standing in the different State and the National contests, the following shall be considered : 1. All the requirements necessary for an "A-l Society," and the grade made therein. 2. One point additional shall be added to the average grade as an "A-l Society" for each first-aid team from the Society participating in first-aid contest or demonstration in which two or more companies take part: provided that in case a team shall win first place in the con- test or demonstration there shall be added five points to the general average of the Society to which it belongs, in case a team wins second place there shall be three points added to the average of the Society to which it belongs, and in case a team wins third place there shall be added two points additional to the standing of their Society. 3. The injuries treated shall be averaged according to the average number of men in the Society, and for the average number of accidents treated per man there shall be a like number of points added to the standing of the Society. 4. For each safety rule suggested by the Society, through the Safety Committee, and adopted by the Company and enforced for three months, a credit of one point shall be added to the standing of the Society: pro- vided that a copy of such safety rule must be submitted with the annual report of the president to the Bureau of Mines, and will be passed upon as to whether or not it is really a "safety" rule, or only a makeshift for the purpose of adding to the standing of the Society. No tentative rule will be considered. The rules must be complete and adopted with the intention of carrying them out indefinitely, or until the danger which they were made to meet has been done away with. 5. The new members received into the Society shall be averaged accord- ing to the number of members in the organization at the beginning of the fiscal year, and for the average number of new members received a like number of points shall be added to the standing of the Society: provided that no member will be considered a "new member" unless he has carried on the work regularly for three months prior to the sub- mission of the report; provided, further, that in case a member is re- A PROPOSED FIRST-AID ORGANIZATION 605 ceived into the Society at such a time that it would not be possible for him to serve three months before the rendering of the report on June 30, said member shall be credited to the standing of the Society when the report for the next fiscal year is made for instance, if a man joined the Society on April 30 and faithfully carried out the work until July 30, he should then be credited to the Society on rendering the report on the following June 30. The same will also apply to the safety rules mentioned in paragraph 4 above. Any man applying for membership must be admitted, if properly qualified, and the Membership Committee must do its duty toward getting new members if the Society is to stand as "A-l." 6. A credit of 10 points shall be allowed the Society for all its members trained in mine-rescue work, and a proportionate amount allowed for any number less than the whole Society which shall be trained. For in- stance, if 75 per cent, of the members are trained in mine-rescue work there shall be added 7% points to the standing of the Society. 7. For subscription to the National Safety Council Bulletin by the Society two points shall be added. 8. The Instruction Committee shall have charge of the work of instruct- ing the members in first-aid and safety work, and shall appoint some member of the Society who is well qualified to do so to have charge of the classes at each meeting. They shall also make arrangements for properly qualified first-aid instructors to visit their Society and give instruction on the subject, and should also arrange for talks on improved methods in first aid, logical method of procedure in mine fires, illustrated lectures, moving pictures as furnished by the Bureau of Mines, and dis- cussion from the superintendent down to the miner bearing on the sub- ject of safety and first aid to the injured. In order to constitute an "A-l" Society there must be at least an average of 50 per cent, of the members of the Society carrying on this study during the year, and completing at least two books of the study course. The books to be studied are given below, and shall be taken up in the following order: Miners' Circular No. 8 First-Aid Instructions for Miners. American Red Cross Abridged Text-Book on First Aid, In- dustrial Edition. St. John's Ambulance First-Aid Book. Miners' Circular No. 22 Dangerous and Safe Practices in Bituminous Coal Mines. Handbook Advanced First-Aid Instructions for Miners, U. S. Bureau of Mines. Handbook Rescue and Recovery Operations in Mines After Fires and Explosions. Technical Paper 103 Organizing and Conducting Safety Work in Mines. Artificial Resuscitation Chart. Properties of Mine Gases Chart. Miners' Circular No. 9 Accidents for Falls of Roof and Coal. Miners' Circular No. 10 Mine Fires and How to Fight Them. Miners' Circular No. 16 Hints on Coal-Mine Ventilation. Miners' Circular No. 20 How a Miner Can Avoid Some Dan- gerous Diseases. 606 PROCEEDINGS OF AMERICAN MINING CONGRESS Miners' Circular No. 21 What a Miner Can Do to Prevent Ex- plosion of Gas and Coal Dust. In case the organization shall be in a metal-mining camp, Miners' Circular No. 17 Accident from Falls of Rock and Ore- shall be substituted for Miners' Circular No. 9. 9. The Social Committee shall be charged with arranging for the social side of the organization. It shall make arrangements for a social at least once every three months, and members of the Society should endeavor to have as many of their friends present as possible, in order to interest them in the work of the organization. 10. Before granting the certificate "Master Safety Man," the applicant must be examined by a representative of the Bureau of Mines, or some one appointed by the Bureau of Mines, as to his knowledge of the books embraced in the study course and the general safety principles, and must also hold a certificate in mine-rescue training issued by the Bureau of Mines. 11. Any practicing physician shall be eligible to become a member of this Society, but he shall not be eligible to participate in first-aid con- tests, and no injuries treated by him will be considered under Rule 7, paragraph 3, unless such treatment was indeed "first-aid" and not treated as part of his regular work as a practicing physician; provided, that all injuries treated with first aid by a physician member of a Society must be submitted on a separate blank, giving in the "Remarks" column a brief statement showing that the injury actually received first-aid treatment. This report shall be passed upon by the Mine Surgeon of the Bureau of Mines, and any injury not considered as receiving first- aid treatment will be stricken out. 12. SECTION 1 If there is a Safety Inspector or Safety Engineer or other corresponding person in the organization, such person shall be appointed by the Executive Committee as chairman of the Safety Committee. SEC. 2 If there is no Safety Inspector or other corresponding person in the organization, and there is a mine foreman or assistant mine fore- man in the organization, the Executive Committee, unless it has good reason for doing otherwise, shall appoint said mine foreman or assistant mine foreman as chairman of the Safety Committee. 13. SECTION 1 The members of the Safety Committee shall report to their chairman any condition that they may deem unsafe, and the chairman shall report same to the Society. If a majority of the Society so vote, the chairman of the Safety Committee shall, at the end of the month, notify the management of such condition and recommend such rules as in the opinion of the Society would relieve the situation. SEC. 2 In case the situation demands immediate action, the chairman of the Safety Committee shall make a special report to the management with suitable recommendations. A report must be made once each month, whether or not unsafe conditions exist. 14. The report to the management shall be confidential and need not be made public, but any safety rule adopted by the Company at the sug- A PROPOSED FIRST-AID ORGANIZATION 607 gestion of the Society must be transmitted with the annual report of the president to the director, and also a short statement showing the dan- gerous condition which the rule is intended to meet. 15. The members of the Safety Committee shall during the time they are in office make special efforts to find any unsafe conditions that may be existing in the neighborhood of the mine. Any member of the Society who shall know of any unsafe conditions existing at the plant shall promptly notify a member of the Safety Committee. 16. A suggestion box must be maintained at all times in some con- venient place where any suggestions that any member or any other person at the camp may wish to make can be deposited without disclosing the name of the person making the suggestion. Suggestions for safety rules may be handled in this manner, if the one making the suggestion does not desire to disclose his name. 17. In case a representative of the Bureau of Mines is not present when the Society is organized, the president of the Society shall promptly transmit to the Mine Safety Engineer, through the District Engineer, the names of the officers, committees, and also a list of the names of all men in the Society. He must also give the date on which the Society will hold its regular meetings. 18. Whenever any member who has moved from one camp to another shall present to the president of the Society at the latter camp his letter of dismissal provided for in Article 13 of the constitution, said president shall enter the person so presenting the letter as a member of his Society in good and regular standing. After such person has carried on the work in this Society for three months as provided in Rule 7, paragraph , he may be counted in the annual report as a "new member" and the Society shall receive proper credit as such. Explanation of Ratings The following will illustrate the method of rating a Society : Assume that a Society had an average membership of 20, and that during the year there was an average attendance of 80 per cent, of the membership and that 70 per cent, of the membership took the study course. Five safety rules were adopted by the Company at the suggestion of the Society. Five new members were received into the Society. A total of 50 injuries were treated during the year. A first-aid team from the Society won first place at the State contest. Fifty per cent, of the members held mine-rescue certificates. The Society sub- scribed for the National Safety Council Bulletin. The rating of the Society would be as follows : 608 PROCEEDINGS OF AMERICAN MINING CONGRESS Attendance 80 Study Course 70 Total 150 Divided by 2, the number of subjects covered would give a standing in the A-l grade of 75% Add for Injuries Treated 2^ Add for First- Aid Contest 5 Add for Sub. to N. S. C. B 2 Add for Safety Rules 5 Add for Mine-Rescue Certificate 5 Add for New Members x /4 Total 19% 19% Total Points Won by Society 94% In order to reduce clerical work to the minimum each Society should be required to figure its own standing and submit a proper blank, so that it would only be necessary to check the work for mistakes. This work would pass through the hands of the District Engineer, who could turn it over to the foreman miner for checking, and who could arrange the different socie- ties in their proper order before submitting them to the Mine Safety Engineer. This work would come during the hot weather, when it is difficult to get men to take training, and at a time when the field men are not rushed with other work that this grading of papers would interfere with. The monthly report to be made to the District Engineer would keep him informed at all times of the standing of the societies in his district, and would give him an opportunity to send help to any Society that showed signs of losing interest in the work. The examination after the three years' work has been com- pleted could be held in central parts of the district similar to the way the present civil service examinations are held, except that the foreman miner would pass upon the applicants' knowl- edge of the work and submit his recommendation regarding the issuing of certificates. The requirement that the societies keep an account of the injuries treated by their members and submit such account to the director, in addition to adding to the interest and enthu- siasm of the Society, would cause the men to take a pride in A PROPOSED FIRST-AID ORGANIZATION 609 their work, and to perform it in the best possible manner, as they would suppose it would be reviewed by men with expert knowledge of the subject. This would also give the Bureau some definite figures to work on as to the real practical results of its first-aid work. It would also be of interest to the public if the Bureau could issue a statement giving the number of broken arms, legs or other bones, etc., that had been treated by men which it had trained in first-aid work. The safety rules would likewise prove valuable in this respect and would also furnish valuable information for publications. In order to secure the best possible results under the plan outlined it would be necessary that the heartiest co-operation be received from the management of the mines. This should be more easily secured now than ever before, in view of the re- quirements of the insurance companies writing compensation insurance, which reduce the premium according to number of men trained. The organization should also be kept as simple as possible, as the work will be carried out in the main by men not at all familiar with duties of this kind, and if made too complicated they are likely to be afraid to undertake the work at all. The following form is submitted for guidance of organizers : A PROPOSED FIRST-AID AND MINE-SAFETY SOCIETY ORGANIZATION BY J. J. RUTLEDGE, MINING ENGINEER, U. S. BUREAU OF MINES, McALESTER, OKLAHOMA AND NOEL HUBBARD, CHIEF CLERK, U. S. BUREAU OF MINES, GOLDEN, COLORADO Suggested Constitution for a Safety Society organized among the miners and other employes of Coal Company. Purpose of the Organization To train members in principles of first aid to the injured and mine safety, and better conditions generally in the miners' lives. PROCEEDINGS OF AMERICAN MINING CONGRESS Those available for membership who have taken Bureau of Mines training or have signified their intention of so doing. Pledge taken by members. No initiation fee. Dues $1.00 per year, payable in quarterly install- ments in advance. OFFICERS President, V 'ice-President, Secretary and Treasurer; elected annually. COMMITTEES : EXECUTIVE COMMITTEE Consisting of President, Vice-President, Secre- tary and Treasurer. MEMBERSHIP COMMITTEE Three members. INSTRUCTION COMMITTEE Three members. SOCIAL COMMITTEE Three members. SAFETY COMMITTEE Consisting of one-fourth of the active members of the Society. The duties of the Membership Committee shall be to seek to interest others in first-aid, mine-rescue and mine-safety instruction, and thus increase the membership of the Society. The V ice-President shall be Chairman of the Instruction Committee, and the duties of this committee shall be to make arrangements for study courses, lectures, etc., on first aid and mine safety for the benefit of the members of the Society. The Social Committee shall take care of the social side of the organiza- tion. The Safety Committee shall be charged with general safety work around the mine so far as the Society is concerned. The Executive, Membership, Social and Instruction Committees shall hold office for one year, or until their successors are appointed or elected. The Safety Committee, with exception of the Chairman, shall hold office for three months. Reports All officers and committees shall make a written report of the work done by them at least once a year, reports to be made to the Director of the United States Bureau of Mines concerning the attendance at meetings, character of work done both at meetings and in safety work in the mine. Officers of the Society shall be elected annually, at the second regular meeting of the Society after June 30 of each year. Special elections to fill any vacancy that may occur during the year may be called at any time. Meetings shall be held once every week and shall be for the study and practice of first-aid and mine-safety principles. Accident Reports When any member of the Society is called on to i-ender first-aid treatment, he shall make a detailed report to the Secre- tary of the Society regarding treatment given and nature of injury. Rules Members of Society shall abide by the rules and regulations laid down by the United States Bureau of Mines for conducting such organizations. Discipline of members. A PROPOSED FIRST-AID ORGANIZATION 611 Transfer of Membership Provision made for change of location of any member. Rules for Determining Standing of a Society Percentages reckoned on work done and members present at meetings. Chairman of Safety Committee to make a monthly report to the management of the mine bearing on the safety condition of the property. Suggestion Box Provision made for submitting suggestions regarding improvements in safety conditions. First-Aid and Mine-Rescue Contests Provision made for participa- tion therein. Standing of Societies To be arrived at on a percentage basis, attend- ance at weekly meetings, contests, and first-aid treatment given to be marked. Members to be given certificates of merit. Standard of Marking determining an A-l Society. Method of Choosing Members of Safety Committee A member may serve on the Safety Committee only once each year. Members of Safety- Committee to report to Chairman any conditions they deem unsafe and Chairman to report to the Society. If majority of Society so vote, Chair- man of Safety Committee shall, at end of month, notify management of mine of any unsafe conditions and recommend rules to relieve conditions* Special and immediate report to be made if necessary. 612 PROCEEDINGS OF AMERICAN MINING CONGRESS DOES "SAFETY FIRST" MEAN INCREASED DIVIDENDS? By W. D. RYAN, Commissioner of Safety, U. S. Bureau of Mines I think I am safe in saying that since I arrived in St. Louis I have met a number of coal-mining men who might increase their income and improve their social and economic conditions by going down to Akron, Ohio, and getting a job with the Goodyear Tire and Rubber Company. [Applause.] My subject I discovered what it was going to be after I got here is in the shape of a question rather than a text: "Does 'Safety First' Mean Increased Dividends?" I would, if I followed my own inclinations at this time, answer the ques- tion with one word "Yes." But whoever wrote the text must have had in mind that those who control and operate the mining industry of this country always got dividends and all they want is increased dividends. I am only going to take a few minutes of your time, but I want to ask those who are interested in this work, and that means all of you, not to consider the question of dividends in connection with safety work. I do not believe that those who have charge of our great industrial institutions, so far as safety is concerned, should be guided by dollar returns. I do not think it should be considered with the work in any shape or manner. Dr. Rutledge has given you a few citations showing where "Safety First" paid and paid well, and I want to say to you, my friends, that he could have gone further. I remember one occasion, in the State of Oklahoma, where the law specifically required that the shot firer must place a cartridge in the drill hole and tamp the shot. I remember one night a shot firer fired 85 shots in 45 minutes, where the law required that the shot firer should tamp those shots. The eighty-fifth shot got him, and his remains were turned over to the coroner. He was in a hurry to get out, and in that case the miners, the foremen and the shot firer were all violating the State law of Oklahoma. Another case the doctor cited this morning: An explo- sion occurred in the State of Oklahoma, where a number of DOES "SAFETY FIRST" MEAN INCREASED DIVIDENDS? 613 men were killed. The shot firers were permitted to go into the mine and fire their shots while other workmen were in the mine, and all those in the mine were killed. Another violation of the law. I notice here in the latest reports covering the accidents in the coal and metal mines of this country that we are making some progress. In the year 1918, 276 men were killed in the month of July in the coal mines of this country. The same month in 1919 the number is 207. It may be true that the mines were working more steadily in 1918 than in 1919, but I rather think that the difference does not account for the large reduction in the number of accidents. Seventy-five Per Cent, of Accidents Preventable Now, I take this position, my friends, and I think all of you who have studied this question of industrial accidents will agree with me that 75 per cent, of all industrial accidents are preventable. I want you to get that and think it over, and if you find that I am wrong, I want you to let me know where I am wrong. We have been killing 12,000 people on the railroads of this country every year, and injuring 200,000 others every year, many of whom die later as a result of their injuries. Now, 9,000 of those killed, or 75 per cent., con- sist of men, women and children walking on or crossing the railroad tracks, or employees going to and from their employ- ment; and the other 3,000, or 25 per cent., consist of those who are killed traveling as passengers or employees at their work. There, I think, is a plain case where 75 per cent, of the railroad accidents ought to be eliminated. Those of you who were born in Europe, or who have had occasion to go over there, know that no such accident rate takes place in the British Isles or in France or any of the European countries where they have railroad service. People are not permitted to use the railroads as highways, and they ought not to be permitted to use the railroads as highways in this country. United States Leads in Industrial Accidents The day is coming when more stringent action will be taken in order to conserve human life in the United States. We kill more people in our industries in this country that are classed 614 PROCEEDINGS OF AMERICAN MINING CONGRESS as industrial accidents than in any other country in the world employing a like number of men and women. The question set forth as my subject this morning brings to my mind another phase of the situation on which I have had some disagreement with some of my mining friends, and that is the question of having a safety engineer or foreman, or whatever you may term him, in all our large coal and metal mines. I advocate, and I think I am right, that such a man should be employed with absolute authority to order the remedying of any unsafe conditions he may find in the mine, without regard to the opinion of the foreman or anyone else in or around that mine. This question I have raised on former occasions, and exception has been taken to it, for the reason that the safety men might interfere with the work of the foremen. I favor this plan because there is a direct line that can be maintained between the two parties. I had occasion to be in the West not long ago on a mission for the Bureau of Mines, looking up some matters along this same line. I was making an investigation at a large metal mine. I found they had a safety commissioner ; he was paid a fairly good salary for his work, and I got one of his printed reports. In that report he had outlined one very unsafe con- dition that he found in one of the large mines operated by his company, a place where workmen had to travel back and forth underneath a raised platform. He reported that there were several broken planks in the platform and a considerable amount of loose rock hanging just above it, with workmen passing backward and forward underneath the platform all day, at least at intervals through the day. His report went to the superintendent; the superintendent when he got time took it up with the general manager, and when the general manager got time he told the superintendent how to remedy the situation, and when the superintendent got time he sent word back to the foreman giving him his instructions. In the meantime any number of men might have been caught there and killed, as the unsafe condition had not been remedied. I say that inspector should have had authority to undo the unsafe condition the moment he found it. DOES "SAFETY FIRST" MEAN INCREASED DIVIDENDS? 615 Safety Expert Reduces Accidents I know of another case where a practical mining man was employed as safety commissioner for a large coal-mining operation having some 20 openings and employing several thousand men. We had a record of the accidents in this company's mines for three years before that man took charge. We got a record of the accidents for the first three years that he was on the job, with the same number of openings, with the same number of employees. He had decreased the acci- dents in the mines operated by that company 65 per cent., but he had absolute authority and reported to no one but the general manager of the company. I believe, if the mining interests of the United States will adopt such a plan, that you will come pretty near realizing that you can reduce your mine accidents from 65 to 75 per cent, throughout the United States. I sincerely trust that more attention in the future will be paid to the reduction of accidents. 616 PROCEEDINGS OF AMERICAN MINING CONGRESS THE OIL SHALE INDUSTRY By VICTOR C. ALDERSON, President, Colorado School of Mines, Golden, Col. Recent years have been filled with stirring and far-reaching events, world-wide in their effect, not the least of which has been the birth of a new industry, with a potential supply of raw material that almost defies mathematical computation and staggers the imagination. Can oil wells produce enough to meet the enormous demand now existing for oil and its products? The answer is doubtful. Will new oil fields be discovered to meet the increased demand in the future? The answer is extremely doubtful. Yet this is the age of oil. Oil we must have. The supply must come from our great deposits of oil shale. If oil is the "king," then oil shale is the "heir apparent." Present Condition of the Petroleum Industry From 1857 the total of the world production of petroleum was 6,996,674,563 barrels ; of this the United States produced 4,252,644,003 barrels. There are now approximately 250,000 producing oil wells in the United States. The average yield is only four and a half barrels a day. Among the great pro- ducers is the Burkburnett pool in Texas that has produced 7,000,000 barrels of oil and the Ranger pool that has produced 12,000,000 barrels. The average output in Wyoming is 40 bar- rels a day. The low average for the whole country of only four and a half barrels a day is caused by thousands of wells in the older fields that produced less than a quarter of a barrel a day. Of the total number of wells in the United States, four-fifths do not yield more than a barrel of oil a day. The United States Bureau of Mines recently made a report to the Secretary of the Treasury on the subject, in which it said: "The United States Geological Survey makes the pessimistic report that our underground reserves are 40 per cent, ex- hausted and that we probably are near the peak of domestic THE OIL SHALE INDUSTRY 617 production. The consumption of petroleum is increasing far more rapidly than domestic production. During 1918, 39,000,000 barrels of oil were imported from foreign countries and 27,000,000 barrels were withdrawn from stocks. "Our future supply of petroleum must be conserved, and it is therefore imperative that the United States make every pos- sible effort to further more efficient conservation of our under- ground reserves of oil and the more efficient utilization of petroleum and its products, because: "First Petroleum has become the fundamental basis of the industrial and military life of the nation, in that gasoline has become the motive power for some six million automobiles and trucks, for airplanes, farm tractors, motor boats, etc. Fuel oil has become necessary for our navy, our merchant marine and larger industrial plants. Lubricating oil is essential for ma- chinery of all kinds, and without it not a wheel would turn. "Second The potential supplies of crude oil outside of the United States are passing almost entirely into the political and economic control of foreign governments, and the United States is likely to pass from a position of dominance into a position of dependence. "Third Investigations of tho Bureau of Mines, of the Fuel Administration and of other bodies have disclosed that the known oil reserves of the United States are not receiving ade- quate protection and are being wasted through inefficient methods in production, refining and utilization of the oil. "For the above reason it is imperative that the United States take every step possible toward conserving our known reserves of oil. Petroleum and natural gas are not being replaced by nature, and once gone cannot be replaced except from sources involving greater costs." Many other significant facts could be given, but a few will suffice. Total Number of Registered Automobiles in Production of the United States. Gasoline. 1914 1,700,000 1,560,037,200 gallons 1918 6,146,000 3,570,312,963 gallons 618 PKOCEEDINGS OF AMERICAN MINING CONGRESS Statistics furnished by the United States Geological Survey give the following interesting comparison : Amount of Crude Oil in Storage. December 31, 1915 194,185,000 bbls. December 31, 1916 179,371,000 bbls. December 31, 1917 156,168,000 bbls. December 31, 1918 132,800,000 bbls. Amount of Crude Oil Marketed. During 1915 281,104,104 bbls. During 1916 < 300,767,158 bbls. During 1917 335,315,600 bbls. During 1918 345,896,000 bbls. Thus, during these four years the amount marketed in- creased from 281 to 345 million barrels; the reserve supply that held in storage decreased from 194 to 132 million bar- rels. This gives the key to the oil situation. Oil pools are merely reservoirs certain to become exhausted in the course of a few years. Examining the refining oil, we find that from January to September, 1918, the refineries consumed 182,000,000 barrels. During the same period the production was only 170,000,000 barrels. To meet this loss 12,000,000 barrels had to be drawn from storage, or a million barrels a month. In passing judgment upon the condition of the oil industry> as a whole, one must not be blinded by the enormous production of "gushers" nor be made unduly pessimistic over the low average yield of the quarter of a million wells in the United States. A common-sense view seems to be that, first, our supply of petroleum from wells is not meeting the country- wide demand and that the limit of production is approaching; second, the supply from wells can be maintained only by the discovery of new extensive pools; third, there is little likeli- hood that new pools like the Mid-Continental or California will be discovered, because the entire country has already been thoroughly explored; fourth, that the only great national reservoir that can be absolutely depended upon to supply oil is our deposit of shale. This will be the source of our oil supply THE OIL SHALE INDUSTRY 619 for the future. Oil shale provides an almost unlimited supply of raw material from which oil may be produced. Its distri- bution is world-wide and its extent incalculable. World-wide Distribution of Oil Shale Extensive deposits are found in Colorado, Utah, Wyoming, Nevada, Montana and California. In Canada it is found in Quebec, New Brunswick, Nova Scotia and Newfoundland. In Scotland, near Edinburgh and on the Isle of Skye. In France, at Auton and Buxiere les Mines. In South Africa, in the Transvaal, Mozambique and Natal. Also in New South Wales, New Zealand, Tasmania, Brazil, Italy, Spain, Austria-Hungary, Serbia and Turkey. Amount of Shale Available in Colorado To one fond of figuring the following will prove interesting : An acre contains 43,560 square feet. A seam of oil shale 10 feet thick would contain 435,600 cubic feet of shale. Eighteen cubic feet of shale weigh one ton. Hence there are 24,200 tons of shale in one acre of a seam 10 feet thick. In a square mile there are 640 acres, and therefore 15,488,000 tons of shale. There are 2,500 square miles of shale in Colorado, or 38,720,- 000,000 tons. Assume that only one-half is available and there remains 19,360,000,000 tons available shale. This is figured for one 10-foot seam only. A conservative estimate is 30 feet of workable shale, or a total of 58,080,000,000 tons of available shale. A fair average production is a barrel of oil to a ton of shale, or 58,080,000,000 barrels of oil available. If 100 plants were in operation, each treating 2,000 tons daily, they would have a daily production of 200,000 barrels. To treat this amount of shale would require 290,400 days, or 800 years approximately. These figures apply only to Colorado; they omit shale deposits elsewhere, and are given only to make vivid and emphatic the statement that there are mountains of shale in Colorado. The Heat Value of Gas Produced One ton of shale will produce on the average 2,500 cubic feet of gas of a calorific value of 507 B. t. u. Five hundred and 620 PROCEEDINGS OF AMERICAN MINING CONGRESS seven by 2,500 gives 1,267,500 B. t. u. as the calorific value of the gas produced from one ton of shale. Colorado coals give an average of about 10,800 B. t. u.; 2,000 by 10,800 gives 21,600,- 000 B. t. u. to the ton of coal, or approximately 17 times that of the B. t. u. in a ton of shale. In practice coal is only about 60 per cent, efficient, but gas is 80 per cent, efficient ; hence the heat value of the coal is reduced to 13 times the heat value of the gas from a ton of shale. In other words, for each 13 tons of shale mined sufficient gas would be produced to do the work of a ton of coal. Thus, in a 400-ton plant enough gas would be produced daily to be equivalent to more than 30 tons of coal. Nature of Oil Shale Oil shale virtually contains no oil as such. It is a consoli- dated mud or clay deposit from which petroleum is obtained by distillation. In appearance the shale is black, or brownish- black, but on weathered surfaces it is white or gray. It is usually fine-grained, with some lime and occasionally sand. It is tough, but in thin sections friable. When broken to a fresh surface it may give an odor like petroleum. Thin rich pieces may burn with a sooty flame. E. H. Cunningham-Craig defines it as follows : Oil shale is an argillaceous or shaly deposit from which petroleum may be obtained by distillation but not by trituration or treatment by solvents. Oil shale must be care- fully distinguished from oil sand. In the oil sand the oil is contained in the sand as oil. When the sand is penetrated by a well the oil gushes out or is pumped out. In the oil shale there is no oil as such f but only the uncooked ingredients of oil. When the shale is subjected to destructive distillation i. e., heated in a closed vessel or "cooked" shale oil results as a manufactured Origin of Oil Shale Oil shale is one of a long list of natural deposits which result from the deposition of organic matter from plants or animals of a former geologic era like anthracite, bituminous and brown coal, peat, petroleum and asphaltum. Beds of oil shale were laid down in lagoons, or wide expanses of quiet water. THE OIL SHALE INDUSTRY 621 They contain a large amount of organic matter low plant forms of life like algae; also pollen, fish scales, insects and remains of animal and vegetable life. Development Work in the Oil Shales At the present time we have no exact knowledge of the change or the persistency of oil values with depth, nor the underground difficulties to be met in mining. Up to the pres- ent time sampling has been done on weathered outcrops or from shale close to the surface. There is reason to expect that as unaltered shale is reached it will be found to be richer than shale near the surface. Dean E. Winchester reports that one sample taken after the weathered surface was removed gave 32 gallons of oil a ton. A foot and a half was then removed by blasting. A sample then gave 55 gallons a ton. At Elko, Nevada, the shale has been mined for 370 feet from the outcrop and no decrease has been noticed in the richness of the shale. Mining Oil Shale The shale beds of Scotland are irregular and lie in syniclinal troughs; they pinch out or expand; they have a dip of from 30 to 60 degrees ; they are folded or faulted to a great extent and often altered by intrusive volcanic rocks. All mining is through shafts, some of which are very deep. In the United States, however, the oil shale beds are regular; they are vir- tually level; the greatest dip noticed is only 25 degrees; few faults have thus far been noted, and there is little likelihood, to judge from the outcrops and the formation, that many will be found; the level position of the oil shale enables it to be mined by the ordinary methods of room and pillar coal mining. From the standpoint of cheap mining, if comparison is made with Scotland, the advantage is certainly with the United States. Possibilities of the Shale Industry Inasmuch as the oil shale industry has been in operation in Scotland since 1850 sixty-nine years and has met and over- come technical, trade and economic obstacles, it seems a mere 622 PROCEEDINGS OF AMERICAN MINING CONGRESS matter of common sense for the pioneers of the industry in the United States first to follow the well-known and successful methods of Scotland ; to adapt these methods to United States conditions, and then to improve them as fast as possible by methods not now known. Besides the production of crude oil, gas and ammonium sulphate, other possibilities may open e. g., the nitrogen may be reclaimed in a form for use in the manufacture of munitions of war; aniline dyes and flotation oils may be obtained; possibly producer gas, a substitute for rubber, and other products may become valuable. The nitro- gen content is especially valuable, as each percentage of nitro- gen will yield theoretically 93 pounds of ammonium sulphate now worth 7.3 cents a pound. All in all, it should be realized that the oil shale industry presents a long series of interest- Ing technical-chemical problems to be solved by scientifically trained men. So true is this that the industry can be classed as a combined mining-chemical-manufacturing project. In some quarters there exist two erroneous ideas, viz, that the distillation of oil from shale is a simple process and that a treatment once devised will apply to all oil shales. To be sure, in a laboratory retort a few pounds of shale can be heated and ,-a small amount of oil produced. So can water be boiled in a tea kettle, but there is as much difference between this puny outfit and the great plants of Scotland as there is between the tea kettle and a great central power plant. Also shales vary to such an extent that each deposit should be tested in a care- Jul, scientific manner, just as large bodies of low-grade copper ore are tested and suitable treatment plants erected. As in handling low-grade ores, the large profits from oil shale will be made by handling a great tonnage at a low cost to the ton. Location of Oil Shale Claims The statute of 1897 says : "Any person authorized to enter lands under the mining laws of the United States may enter and obtain patent to lands containing petroleum or other mineral oils, and chiefly valuable therefor, under the provisions of the laws relating to placer mineral claims." The location of oil lands as placers was general until 1896, when the Secretary of the Interior ruled adversely. Thereupon Congress in 1897 passed a law re-establishing the former prac- THE OIL SHALE INDUSTRY 62 tice. The higher courts as yet have had no opportunity to pass upon the validity of title to oil shale land located under the placer law. The well-known case of Webb vs. The American Asphaltum Company furnishes the nearest parallel case. In the Circuit Court of Appeals, Eighth District, it was held that asphaltum, when it is in solid form and is found as a vein or lode, should be located as a lode. At the present time no court decision has been rendered which involves specifically the point as to how oil shale lands shall be located that is, whether as lode or as placer. It would seem, however, that from the peculiar forma- tion of oil shale deposits they should be located as placers. As generally found these deposits are virtually horizontal and can- not be said to have apexes within the sense that miners and the Mining Act of 1872 contemplate. Neither can horizontal oil shales, as found in the United States, be said to be in place in the sense that we find deposits of other valuable minerals in place when found in lode, vein or ledge formation. The shale deposits cannot even be said to have a clearly defined hanging wall, such as is contemplated by the statute, since they are not covered by a non-mineral bearing country rock as the miner is accustomed to find as constituting his over- hanging wall, but he finds merely an earthy deposit such as is generally found in the ordinary gold placer. Leasing Oil Shale Land An oil leasing bill of the last Congress was killed in the final hours of the session. Another bill is expected to pass the present Congress. The general features are likely to be these : The Secretary of the Interior will be given authority to lease an oil shale deposit belonging to the Government and as much of the surface as is needed for operation ; leases shall be limited to 5,120 acres and may be indefinite as to length; a royalty of 50 cents an acre must be paid ; the Secretary of the Interior may waive the payment of royalty for the first five years ; an exchange of land taken under a placer location may be made for leased land to an equal amount; claims valid at time of passage of act may be patented under laws then existent, as an efficient leasing bill will be an encouragement to the industry. 624 PROCEEDINGS OF AMERICAN MINING CONGRESS General Principles of Mining Shale In mining oil shale, steam shovel methods may be eliminated for the present. Beds of shale amenable to such treatment are far removed from railroads or are on the top of high cliffs. To reach these beds expensive roads would have to be con- structed and the first cost of installation would be excessive. In the next place, the long-wall system of coal mining can be eliminated, because under that method the roof is allowed to cave in after mining and this would destroy any beds of shale lying above the one being mined. The room-and-pillar method of coal mining will probably be adopted. In this method of mining adits are cut into the beds of coal ; at intervals cross- cuts are made at right angles to the adits, and from these so-called rooms are turned off. Pillars of size necessary to support the roof are left along the adits, the cross-cuts and the rooms. A large percentage of shale must be left, but this is inconsequential on account of the great extent of the de- posits. It goes without saying that to open an oil shale deposit properly a definite plan of development must be outlined, mechanical ventilation supplied, provision made for rapid and economical haulage, and the numerous appliances provided for handling a very large tonnage in an efficient and economical way. The open cut method may be used in some favorable localities. Value of Oil Shale Land At the present time virtually all available shale deposits on Government land have been filed upon as "placer." They are generally taken up in "association" claims i. e., in eight 20- acre contiguous tracts by eight locators. Each locator has a one-eighth undivided interest in the 160 acres. Annual assess- ment work to the extent of $100 must be done on the tract to hold the title. The intrinsic value of a particular tract may be much or little. If it is situated far from a railroad, beyond even a wagon road, and without water, it is virtually without present market value. If it is accessible, near to transporta- tion, with an available water supply, with natural benches for retorts and ample dumping ground, and the rich shale beds are thick and easy to get at, then the land may have a present THE OIL SHALE INDUSTRY 625 value of from $25 to $50 an acre and a prospective value in the hundreds of dollars an acre. Phases of the Industry The oil shale industry has a variety of phases and is con- sequently a complex industry. The mining of shale will prob- ably present no problems of a troublesome character. The crux of the industry is, however, in the restoring i. e., in the conversion of the shale into oil and gas. The specific problem is to apply heat to the retort at such a temperature and with such uniformity that not only will the maximum yield be produced, but that the oil will be of a suitable character for the succeeding process of refining. On this problem American ingenuity is at work. Already about 20 processes are in a state of development, but the Wallace process, at East St. Louis, 111., is probably the nearest to a complete commercial basis. The refining of oil is a well-established industry, but experiments with the Wells process of refining have given satisfactory results upon crude shale oil. The marketing of the crude oil or its products gasoline, kerosene, lubricating oil, wax and ammonium sulphate is an economic problem that must be met in the future. Estimated Cost of Distillation and Refining Plants The cost of a distillation plant with all accessories of a capacity of 100 tons of shale a day is estimated at from $65,000 to $100,000, according to local conditions. If proper plans were made in advance for enlargement, additional units could be erected at about one-half the cost of the original unit. The cost of a Wells refining plant ivith a daily capacity of 400 bar- rels, to include a sulphate of ammonium and gasoline absorp- tion plant, would be from $300,000 to $350,000, according to local conditions. Estimated Cost of Mining and Retorting The following estimate of the cost of producing crude shale oil without refining is based on a plant of 400 tons daily capacity : 626 PROCEEDINGS OF AMERICAN MINING CONGRESS Cost per ton. Mining $1.25 Breaking or coarse crushing 10 Retorting 35 Loading and shipping 05 Amortization, interest and overhead expenses 10 $1.85 These costs for mining and retorting are estimated on the basis of 42 gallons to the ton of shale, but there are several available workable strata in the Parachute Valley, Colorado, that will produce from 50 to 100 per cent. more. Consequently, in practice these costs per barrel of crude oil produced may be considerably reduced. Estimated Cost of Mining, Retorting and Refining The following estimate of the mining, retorting and refining is also based upon oil shale producing a barrel of shale oil (42 gallons) to the ton of shale in a plant treating 400 tons a day: Cost per ton. Mining $1.25 Breaking or coarse crushing 10 Retorting 35 Refining by the Wells process 42 Piping, loading and shipping 10 Amortization of plant equipment 05 Interest on investment 05 Overhead expenses 25 $2.57 Products and Their Value A refinery will produce from crude shale oil approximately as follows: Gasoline 25 per cent. Lubricating 60 per cent. Paraffme wax 2 per cent. Kerosene or fuel oil 3 per cent. Asphaltic residue 7 per cent. Loss 3 per cent. (Not including the products of the gasoline absorption plant.) THE OIL SHALE INDUSTRY 627 In addition to these products, there will be the ammonium sulphate ranging from 20 to 30 pounds to the ton of shale, and about 2,500 cubic feet of gas, from which can be extracted from two to three gallons of gasoline per 1,000 cubic feet of gas, with sufficient high-grade hydrogen gas left over for all fuel requirements in operation of the retort and refinery plants. These products and average percentages in gallons and pounds per barrel and probable wholesale prices are as follows: Main Products: Gasoline, 25% 10 gallons at 18c $1.80 5 gallons reclaimed from gas at 18c 90 $2.70 Lubricating oil, 60% 25 gallons at 30c 7.50 Other Products: $10.20 Paraffine wax (145 M. P.) 6 Ibs. at 15c $ .90 Asphaltic residue (rubber filler) 20 Ibs. at 5c. . 1.00 Ammonium sulphate 20 Ibs. at 4c 80 2.70 $12.90 The average price of crude petroleum as paid by the pipe lines, at the wells, is as follows: Mexican crude (at Texas points) $ .99 to $1.00 bbl. Gulf Coast points 98 bbl. Wyoming 1.53 bbl. Northern Louisiana 1.69 bbl. Oklahoma-Kansas 1.72 bbl. Northern Texas 2.13 bbl. Eastern States 2.61 bbl. With the liberal estimate of $1.85 a barrel for producing crude shale oil, with the supply of well petroleum diminishing and the price advancing, with the Wallace plant about to pro- duce shale oil on a commercial scale, and with other plants under contract, it seems fair to assume that shale oil will at once come into competition with well petroleum. Significant Features Oil shale land is primarily acquired from the Government under the Federal mining laws governing placer mining claims. 628 PROCEEDINGS OF AMERICAN MINING CONGRESS At the present time, however, all shale land advantageously situated has been filed on and is owned by individuals or cor- porations. Oil shale itself varies greatly in different localities and in different strata in the same locality. The oil shale industry is a comprehensive one and embraces features of mining, shale reduction, mechanical engineering, oil refining, applied chemistry, and the business involved in marketing the products. Little manual labor is required, as automatic machinery does the bulk of the work. Variation in the estimated cost of producing crude shale oil is caused by the exclusion or inclusion, in the estimate, of the by-products in the retorting, like ammonium sulphate. Another cause of difference is the high or low estimate of the amount of shale oil that can be extracted from each ton of shale. The early success of the industry will depend upon the cost of production and marketability of its main products not upon its by-products -no matter how fascinating these by-products may now appear. Black powder is probably more efficient in mining shale than dynamite. Some shales contain sulphur and hence produce an inferior grade of oil, but the United States shales are free from sul- phur and produce a high grade of crude oil easily amenable to refining. Gasoline from United States oil shale does not become dark, off color, or otherwise deteriorated by standing. Samples refined by the Wells process are known to have kept their color for more than a year. Crude shale oil is a manufactured oil and consequently can be kept virtually free from impurities. Tests thus far made indicate that the great majority of shale oils produced, and all those made from United States shale, when made under proper conditions, are of a quality greatly superior to the oil produced from wells. The quality of oils produced from wells varies considerably. Impurities that prove injurious to the quality of the oil are present, to a greater or less extent, in almost all well oils. The majority of shales do not contain impurities to such a degree as to affect the quality of the oil produced. THE OIL SHALE INDUSTRY 629 Kerogen, the oil-producing matter, and hydrogen (present in the natural state of the shale and added in the process of dis- tillation) are, as a rule, the only constituents which form the oil. These constituents make a virtually perfect oil. The oil produced from 4.44 tons of shale (42 gallons to the ton) is equivalent to the heat effect of one ton of coal of 11,000 calorific value. The heat value of 2.41 tons of oil shale (42 gallons to a ton) is equivalent to the heat value of one ton of coal of 11,000 calorific value. United States massive shale will average 18 cubic feet to the ton ; when broken, 30 cubic feet in volume to the ton. A ton of shale (42 gallons) will produce 2,500 cubic feet of gas. A 400-ton plant would, therefore, produce daily 800,000 cubic feet of gas. Ninety-four pounds of coal are equivalent to 1,000 cubic feet of gas. Consequently the 800,000 cubic feet of gas produced daily by a 400-ton distillation plant would be equivalent to 75,200 pounds of coal, or 37.6 tons. The minimum capacity of distillation or retorting plant to include crushing, retorting, gasoline absorption and ammonium sulphate units, should be 100 tons daily, provided the distilla- tion required not more than six hours, or at least four charges made daily. The cost of such a plant would be approximately $100,000. Additional 100-ton units could be installed for $50,000 each. These estimates ^are made for retorts which have a capacity of 1.5 tons to the charge. From five to six charges can be made daily, resulting in- a daily capacity of from 7.5 to 9 tons a day. A bank of 16 retorts would have a theoretical capacity of from 120 to 144 tons a day. However, in order to allow for accidents and delays, a bank of 16 retorts is roughly assumed to be of 100 tons daily capacity. A 100-ton plant should be regarded as only a starter. Four hundred tons should be regarded as a minimum size for continuous commercial operation. The minimum size for a refinery, to include a paraffine wax plant, should be 400 barrels daily, and would cost approxi- mately $350,000. This also should be regarded as only a starter. A- refinery of 1,000 barrels daily capacity should be regarded as the minimum daily capacity for continuous com- mercial operations. 630 PROCEEDINGS OF AMERICAN MINING CONGRESS At Tulsa, Okla., the cost of refining is 38 cents a barrel in the Cosden & Co. plant of 40,000 barrels daily capacity. In a two months' test run by the Wells process at this plant the cost was 27 cents a barrel. A plot of ground 200 by 300 feet is sufficient for a distilla- tion plant of 400 tons daily capacity. Only about 60 cent, of the gas produced would be needed to supply power for the distillation and refinery plants. The remainder, 40 per cent., would be available for other purposes. Kerogen the oil-producing ingredient in oil shale contains plenty of carbon, but little hydrogen. The introduction of steam in the distillation process supplies the hydrogen neces- sary. On most shales, tests with and without steam have shown a greater production of oil with the use of steam than without it, and a greatly superior quality of crude oil. Ore is crushed, but shale should be broken. This is accom- plished in Scotland by the use of spiked rolls. Spikes 2.5 inches at the base and 3 inches long are arranged spirally in rolls and are removable. In Scotland all shale smaller than one inch is left at the mine. Sticking of shale in the retort, in some cases, causes serious trouble. Tests show that if the temperature is kept below 850 degrees, sticking does not occur in Colorado shales, but they do stick if the temperature goes above that point. Samples of Nevada and Utah shales have been tried that do not stick up to 1,200 degrees. Mixtures of Nevada and Colorado shale seemingly do not stick. In Parachute Creek the black, rich streaks stick at 850 degrees, but if mixed with poorer shale (35 to 40 gallons to the ton) in the proportion of 100 pounds of the poorer to 400 pounds of the richer, the product does not stick below 1,000 degrees. However, sticking is prevented by the introduction of steam, provided the steam is injected early enough in the process. Crude petroleum from wells varies widely in different fields. Crude shale oil is virtually a manufactured article. It may be spoiled, in the manufacture, for refining into valuable products. Also, good shale oil may be subjected to an inefficient method of refining and become commercially unprofitable. THE OIL SHALE INDUSTRY 631 In Scotland two men working together produce 8 tons (2,240 pounds) a day at a cost of 5 shillings, or $1.25 a ton. Reduced to a ton of 2,000 pounds this would be $1.11 a ton. The Scotch miner works on a seam only 6 or 7 feet thick, hundreds of feet below the surface, under unfavorable conditions. If the Scotch miner, under unfavorable conditions, can mine 4 tons of shale, certainly the American miner, in our shale beds so easily worked, can produce twice that amount. It is certain, then, that our estimate of $1.25 a ton for mining is large enough and in practice will surely be reduced. The quantity and quality of oil that can be produced are variable, according to the skill and intelligence of the operator, the method used, the type of retort, the rate of heating, the amount of heat applied, the introduction of steam, and many other details. In short, oil produced from shale may or may not show good results, from no fault of the shale. Good shale, subjected to poor methods, may give oil that fails to yield to refining. Hence follow conflicting opinions as to the character of the shale oil produced and the results from refining. Re- torting shale and refining oil are not "foolproof" processes. A frequent distinction is made between American and Scot- tish shale, as if there were only two varieties one American and one Scotch. It should be clearly understood that there is a great variety of American shales as great a difference between them as between any one and the Scotch shale. Hence even varieties of American shale may require different forms of treatment. In Colorado alone the available oil from shale is conserva- tively estimated at 58,080,000,000 barrels. To produce this would require the work of 100 plants each producing 2,000 bar- rels daily for 800 years. SUMMARY 1. The oil shale industry has reached its greatest develop- ment in Scotland, where it was established in 1850. Next in importance comes France and then New South Wales. 2. In Scotland the technical and chemical problems of the 632 PROCEEDINGS OF AMERICAN MINING CONGRESS industry have been carefully solved and, on the whole, the industry has been commercially profitable. 3. The Scotch shale beds are comparatively thin, irregular, steeply inclined, deep and expensive to work. 4. The oil content of the Scotch shales is now much less than formerly, and the shale could not be worked profitably if it were not for the ammonium sulphate produced as a by- product. 5. The increased demand for petroleum, the exhaustion of producing wells in the near future, and the enhanced price will result in competitive shale oil, produced from an inexhaustible supply of shale by cheap mining, efficient retorting and dis- tillation. 6. The oil shale industry is not, in ordinary parlance, "a poor man's game." The technical and chemical problems are numerous and require a high grade of scientific ability for their solution. 7. A plant of 400 tons daily capacity is as small as can be operated permanently and successfully, as the profits will de- pend chiefly on the large tonnage handled. In this respect the oil shale industry bears the same relation to oil that Utah Copper and the other copper porphyries bear to copper. 8. An investment of $500,000 is as small as can be safely counted upon to make a single project successful. 9. Labor is cheaper in Scotland than in the United States; the Scotch shale produces more ammonium sulphate than the American shale. These are the only factors favorable to the Scotch shale; all other elements that enter are distinctly in favor of the United States shale. 10. The favorable features in the oil shale industry in the United States are : (a) The enormous extent of the deposits. (b) The great thickness both of the medium and high-grade shale. (c) The horizontal position of the strata and their height above the level of the creeks a combination that affords cheap mining. (d) Adequate water supply for the condensing and cooling systems of both the distilling and refining plants. THE OIL SHALE INDUSTRY 633 (e) Accessibility and nearness to railroads and markets. (f ) The great richness of the shale. These features combine to make the oil shale deposits of the United States the most valuable deposits of their kind in the world. In the minds of those men who are best informed on the technical and business phases of the oil shale industry, it has passed the experimental stage and "has arrived." 634 PROCEEDINGS OF AMERICAN MINING CONGRESS IS THE SHALE OIL INDUSTRY A BUSINESS PROPOSITION? An Address Before the American Mining Congress at St. Louis, Mo., November 20, 1919, by J. B. JONES, of Kansas City, Mo. Knowing that we are here to discuss a new industry, and knowing that we have gathered here much of the best brains of the engineering world of the United States, it is somewhat with trepidation that I address you. As my work has been more along the lines of business research, of finding out whether, in the opinion of my asso- ciates and myself, the industry would warrant the invest- ment of capital, and would warrant, at the present time, entering into the building and construction of works of suffi- cient size to put it upon a firm industrial basis; I trust you will bear with me if I talk to you not in the technical terms of the mining engineer and the scientist, but give you the plain facts that confront the average business man. Some years ago it was my privielge, in doing some investi- gating work I think it was about 1914 or 1915 to go into the western slope of Colorado, in Garfield and Rio Blanco Counties, investigating a substance then called "bituminite," not termed by our Bureau of Mines in a generic term, but afterwards designated as oil shales. Unlimited Supply The Lackawanna Steel Company requested me to go out and find out if this product existed, and, after some weeks of research, I reported back that the tonnage was practically unlimited, and that nearly all the creeks to the south and southeast of the Book Cliffs cut through practically solid sedi- mentary shales of a nature very different from the shales we had in the Eastern States, and very different from the shales overlying the cannel coals in Virginia and Kentucky, and in consistency and chemical qualities were different from any- thing that had come under my observation. IS THE SHALE OIL INDUSTRY A BUSINESS PROPOSITION ? 635 Their object was to find a substitute for wooden railway ties they desired to find some material which was sufficiently tough, resilient, and not fragile, and it seemed this material might be suitable. I had, for years, been interested as a practical oil producer of petroleum oils, and associated with men interested in the producing of oil from wells, and in refining petroleums and distributing them. At that time I could see very little practical use for those enormous deposits, but owing to the research work in the State of Colorado by the Colorado School of Mines and the United States Geological Survey, it became apparent that nature had deposited those enormous cliffs for the use of man in some specific way. It seemed we had there a storehouse of unlimited raw ma- terial for the production of oils which were not exactly the same as petroleum oils, but which were a substitute for them when properly manufactured and prepared. They were suffi- ciently interesting, so that a group of us took up research work in connection with them; first, in quarrying and reducing, in a crude way, the shales from beds in nine different states. Shales in Five States We went into Colorado, Wyoming, Utah, Montana and California, especially, and after finding that there were enor- mous deposits we began to eliminate them down to the point where they were commercially accessible and workable. There is, as Dr. Alderson has said, almost unlimited material, but much of it is so remote from transportation and so situated with reference to being accessible to railroads and water supply as to be only available for future generations. But there are located along our great trans-continental railroads enormous beds of it sufficient to supply all the mills and reduction works which will be built during the coming generation, and will be able to supplement and in a large measure supplant, in years to come, our fast waning petroleum production. Even in my brief history I have seen the rise and fall of vast potential fields of petroleum production. I have seen the rapid decline and almost reckless wasting of our natural gas fields and our petroleum fields of the East. We are a reckless nation, squandering the potential assets which are put in our care. 636 PROCEEDINGS OF AMERICAN MINING CONGRESS We have dissipated into the atmosphere hundreds of thousands of billions of cubic feet of the most precious fuel God ever gave to man, in the way of natural gas, which, had it been conserved properly, would today be lighting and heating our cities through all this Eastern country. We are facing a critical situation in regard to our fuel and our transportation, and owing to the rapid development of the internal combustion engine and the enormous development of American enterprises everywhere, we have ruthlessly slaugh- tered our petroleum fields, and today we are facing an acute shortage. The wheels of industry, of commerce, of railroads, of individual and private enterprises and locomotion would stagnate and all the business supremacy of the United States of America will wane when we have not sufficient petroleum to supply our needs. Supply World Dr. Alderson has told you how the State of Colorado, with one 10-foot vein, would supply 100 plants running 2,000 tons a day for 800 years. As enormous as those figures seem, they are but small as compared with the demand. That would only be 200,000 tons a day, and our richest shales will barely pro- duce one barrel and a half to the ton; even now our engineers are figuring on one barrel to the ton, and that would be 200,000 barrels a day, and 200,000 barrels is but a pittance in the maelstrom of the world's demand. We are producing in the United States today practically 1,000,000 barrels a day of high-grade petroleum, and we are running behind from 20 to 50 million barrels a year, notwith- standing we are importing 50,000,000 barrels from Mexico in the way of fuel oil. If our coal shortage continues, and we all know we will never face an era of cheap coal again, there is no possibility of petroleum oil ever again reaching the slaugh- ter price of 15 cents a barrel, as it was 20 years ago in Western Ohio and Indiana. Now, I only bring these facts out to centralize your minds on the things that the business man needs to know. First, is the article in demand; second, can it be produced in com- petition with its competitive articles; and, third, is there an unlimited market for it ? IS THE SHALE OIL INDUSTRY A BUSINESS PROPOSITION ? 637 No business man questions the tremendous and pressing demand for oils, and no sane, well-informed engineer is unaware that we are speeding up with cyclonic force and the whole United States is in a fever of speculative excitement attempt- ing to increase our petroleum supplies. The Doctor's figures are slightly too conservative as to prices. The market at the wells today, November 17, for high- grade petroleum in Pennsylvania, West Virginia, Eastern Ohio and New York State is $4.50 a barrel, which is paid for all grades of Pennsylvania petroleum. The market for Kentucky, Indiana and Ohio is around the $3 mark at the wells; and, mind you, notwithstanding the great speculative fever, pros- pecting and wild-cat drilling, the fields in Pennsylvania, West Virginia, Indiana and Illinois are on their last legs. Production in Kentucky is about 12,000 barrels a day and it is not likely to increase. The production in Oklahoma and Kansas has reached its zenith ; only Texas, Louisiana and Wyoming offer undrilled areas that seem able to appreciably increase their production. Costs and Values Now, these are only basic facts. To get down to the cost and value of the production from shale : We quarried them in nine States, we sent them to many experimental laboratories, we tested out many kinds and types of retorts for handling them, and there are many technical questions to be considered in those, but there are a great many engineers in the United States today perfectly capable of solving these problems. The question of producing oil from shale is not as compli- cated or as technical as producing steel from iron ore, it is not as complicated as distilling many by-products from coals or from woods and the waste in our forests. It is a simple, straight manufacturing proposition, dependent largely upon local conditions of transportation, labor and water. A by-product oven suitable for handling shales and pro- ducing crude oils can be built and operated very much cheaper and with much less technical knowledge than can by-product coke ovens. Every engineer agrees that it is a wanton waste of a natural resource to coke coal in an open beehive oven today, that you are wasting and dissipating into the atmosphere one-half of the physical value of the coal. The 638 PROCEEDINGS OF AMERICAN MINING CONGRESS by-product oven, or the reduction works for shale, are de- scribed in so many technical papers that I will not attempt to go into that, but Dr. Alderson has given you some figures that are very reliable. In our research work, in which we have quarried our shale, we have consulted the local engineers who are familiar with mining problems of all kinds. We have reduced them, checked the labor, the amount of expense, and we think the product obtained from the shale can be handled from the shale bed in the mountain to f . o. b. on cars to the consumer for an expense of $3.50 to $4 per ton. Now, he has analyzed that by saying that he believes the maximum expense of mining would be $1.25 a ton, pre-war prices. That would be very high, as the State Geologist of Colorado, Dr. George, states that all the mines of Colorado were able to lay coal down at the mine for a series of three years at about 73 cents a ton. Mining shale should not be more expensive than coal. Shale will fracture and break by drilling and blasting with black powder quite readily, but the shale is so resistent, so tough, so unyielding that it has to be drilled and blasted ; but it offers also admirable structure for standing up, the walls will not fall in, they will make large roofs. You cannot only use a tunnel system, but, in many cases, you can blast from the mountainside in millions of tons, and you can use the glory hole system where the shale beds are from 20 to 50 feet thick, as they are in many places throughout Colorado. We find many stratas of our commercial shales run from 10 to 30 feet that are uniform for many miles, and a cost sheet of $1.25 per ton for mining should be very liberal. Most of the processes will not require fine crushing of the shales those who reduce them to a fine powder will add materially to the expense but the cost of mining and retort- ing should not exceed $1.50 to $1.75 a ton. When at that stage you automatically have the crude oil, so the cost of pro- ducing crude oil from shale would run from $1 to $1.75 per ton of shale handled, and if the shale produces one barrel, and nobody proposes to work at shale of less content for many years, that would be your cost per barrel. But the average through the Grand Valley, Parachute and Debeque District IS THE SHALE OIL INDUSTRY A BUSINESS PROPOSITION 7639 (the shale to be mined during this and the coming generation) will probably be $1.25 to $1.50. Producing By-Products There is a feature, however, that the Doctor has not men- tioned, which enters very largely into this computation. At the same time we are producing the crude oil, we are pro- ducing two by-products at no cost, one is ammonium sulphate, and the nitrogen content of the shales will average, I think, about decimal aught five (.05), or one-half of 1 per cent. Now, in retorting, if retorted under the steam method, we will recover a large amount of the ammonium sulphate. If retorted under the dry method, without the addition of steam, we will not recover so much, but in no case would it be well to attempt to recover the utlimate amount of ammonium sul- phate, because the addition of time and heat would be too expensive to warrant the additional expense. However, in our normal process of retorting, we will recover about one-half of the ammonium sulphate. By treating the ammonia water and precipitating the ammo- nium sulphate in the form of crystals, we will be able to save 40 or 50 cents a ton net, 75 or 80 cents a ton gross. It will probably cost 30 to 40 cents to treat it, and, in addition to that, the vapors generated in the retort in the form of fixed gas carry, the same as our oil well gases, a large amount of the very light hydrocarbons in the form of gasoline, which can be recovered by absorption or compression. As the shales will produce from two to three thousand cubic feet of gas per ton, these gases taken from the condenser will be passed through scrubbers or compressors and will be able to recover from four to six gallons of gasoline per ton of shale. This gasoline would be worth, at the works, at least 15 cents per gallon, or a minimum of 60 cents a ton, therefore, leaving the net cost of the crude oil from 50 to 75 cents per barrel. Now, that should be very reasonably worked out with the modern processes. Beyond Experimental Stage A great many people have said to me : "Well, where are your works?" And, "This is an experimental business." I do not 640 PROCEEDINGS OF AMERICAN MINING CONGRESS consider anything in the world today experimental that has been done on a commercial scale for more than 50 years. It is perfectly ridiculous for any business man in America to say that American engineers and American refiners have less abil- ity to meet conditions that exist than Scotch or German engineers or refiners. We know that we have the best mechan- ical, electrical and mining engineers in the world. That state- ment goes unchallenged. Therefore, we can mine and reduce the shale. We also know that the United States absolutely leads the world in petroleum, petroleum refining, marketing and distributing, and our refineries have been able to meet any problem which has come up with any oil which has been pro- duced. We have found that the shale oils, when properly produced and not broken up or cracked by excessive temperatures in the retorts, which in that case might reduce them to fuel oil or oils which could be cracked into gasoline or gas oil only, have a physical value and potential market value equal to the high- grade petroleum oils. For instance, this simply represents crack shale (exhibted samples) that represents a layer of the Parachute Valley shales. We have here a simple and orna- mental bed post or stand leg, that is turned from a layer of shale similar to the first specimen, it shows the close, fine grained structure, and is almost equal to Circassian walnut. It is a little heavier than wood and not as heavy as some varie- ties of stone. It can be made into some very useful articles and is simply turned and polished. It can be reduced in a retort, and kept at proper temperatures will volatilize all the carbons and will carry over a content which condenses in the form of a crude oil. Refining Process The shale oil, if retorted at a low temperature, will have the consistency of butter or lard. If carried over at a high tem- perature, they are more broken up and are more liquid. This (exhibited samples) when raised a few degrees becomes a liquid; this is a crude oil with the appearance of lard, only dark in color. Passed through an ordinary refining process, we get first about 19 per cent, of pure gasoline, which is equal to petroleum gasoline, and which has about the same initial and IS THE SHALE OIL INDUSTRY A BUSINESS PROPOSITION 7641 the same end point. In other words, it will begin to vaporize at 80 to 100 degrees, and will all pass over at 450 degrees. Following that we will get in refining from the crude shale oil about 10 per cent, of what refiners using petroleum oil would call gas oil, used to enrich water gas in our gas works, and which can, by being passed through a cracking process, produce half of its volume into motor spirits or gasoline. Adding the gas oil cut, we will obtain an average of about 25 per cent, gasoline. If we passed the shale oil through cracking processes, we could obtain about 50 per cent, of gaso- line, but our residue, after taking oft the light oil, is a very superior lubricating oil. It is too long to go into the long technical tests, but these have been tested by many labora- tories and the Bureau of Standards in Washington, and their record on these oils for friction and lubricating qualities are superior to the same record oils made from petroleum, i. e., oils with the same fire, flash and viscosity tests. The lubri- cating oil, as it comes from the still, without treatment, gives us about 60 per cent, of the crude oil into a lubricating stock, or an oil suitable for all kinds of lubricating purposes which can be finished according to the market demands and can be treated for color, the aniline dyes taken out of it, and in that form we get the shades and colors of the finest lubricating oils. So that the shale will produce as beautiful spindle oil, light motor or heavy motor oil and greases equal to the best petro- leum, and, so far as our records show, superior to the best petroleum oils for lubricating oils. Lubricating Oils As to the lubricating oil, the lubricating stock would require treating the same as a paraffin base petroleum oil, by being chilled and pressed through wax presses. Then we get from the original crude about 3 per cent, of a very high-grade paraffin wax. This wax will find a ready market in competi- tion with petroleum wax, from the fact that it is a higher melting point. The petroleum waxes melt at from 112 up to 124 degrees ; they have to be refined and pressed over several times to get them above that. The normal melting point of the shale wax is 130 to 140, making it a superior wax for tropical work. 642 PROCEEDINGS OF AMERICAN MINING CONGRESS Following the paraffin wax, which you will have no difficulty in marketing, we have from 5 to 8 per cent, of the asphaltic base or asphaltic residue. The shale oils are a combination, as you see, and as the refining proves, having both paraffin and asphaltum in them ; nearly all petroleum oils do, but in varying proportions ; even our Gulf petroleums have a minute amount of paraffin, but they are designated as asphaltum oils, while our mid-continent oils are designated as paraffin oils. The last product of distillation will be the asphaltic residue, useful for road making, artificial roofing, paving, rubber belt- ing and as an adulterant for making automobile tires. This asphaltic residue will fuse or mix with rubber, so they can use 40 per cent, of this in combination with rubber in making automobile tires. Income Estimated While in our estimates of income we have estimated this asphalt at purely asphalt prices, say, $12 to $15 a ton, yet in competitive market it will bring the price of gilsonite, which is about $40 a ton f . o. b. cars. Gilsonite is used very largely by paint and varnish makers and water-proofing and lacquer works, and also was used in Germany for the extraction of aniline dyes. You can start with the by-products and go as far as you like in the chemical research, but what we have been concerned with is what we could get out of the oils, and if they would pay. Taking this series as they are refined, and admitting that it costs a little more to refine them and treat them than petro- leum oils, because of the large amount of coloring matter in them (it is well known that the average cost of refining petroleum oil does not exceed 1 cent a gallon), and we have estimated that this might be 2 cents a gallon. After adding liberal amounts for depreciation and amortiza- tion, for crushing and retorting, we estimate our crushing at 10 cents a ton, our retorting at 40 cents, our refining i. e. a straight run refining at 1% cents a gallon, re-running and cracking up the gas oils at the same price would average about 11 cents per barrel, barrels and packing at 14 cents, loading and shipping at 8 cents, and office department at 10 cents, total cost of refining would be $1.21. IS THE SHALE OIL INDUSTRY A BUSINESS PROPOSITION ? 643 We allow for overhead and extras and royalty to the land- owners if you own your own oil shale beds you pay no royalty estimating the crude at mid-continent prices, $2.25, interest at 8 cents, amortization, management and overhead 25 cents a ton, and it would be rankly extravagant manage- ment that would require 25 cents for overhead and manage- ment, but a good many promoters will undoubtedly foist themselves and we must speak in general average terms. Then in that case allowing for all known factors, and 50 cents a ton as an ultimate of safety for unknown factors, we have a total cost of $4 a ton. Our product will sell f . o. b. cars in competition with petro- leum products (at the same price for the same quality) for between $8 and $9 per barrel, and one barrel will be our mini- mum output from a ton of shale. We think that a manufac- turing enterprise, from which you can consider every factor, that offers a turn-over every day of 100 per cent, is an attrac- tive enterprise; we know of very large enterprises employing thousands of men which are pleased and satisfied with a turn- over of 10 to 20 per cent. We believe, from considering every angle of it, that the shale oil industry is a successful business enterprise, if entered upon with the same care and consideration and with the same principles and management that you gentlemen use in man- aging other mining and manufacturing enterprises. The minimum income from a ton of shale should be $8, and the maximum expense should not exceed $4, and many of our shales will produce $12 and upward. Now, then, if you had an unlimited coal mine opened up, exposed at the surface, and you had an unlimited market for that coal at more than 100 per cent, over what it cost you to mine it and put it at the mouth of the mine, you would consider that you had a magnifi- cent enterprise. Not Fictitious Values You will note that we have not gone into the fictitious or imaginary value of by-products so often heralded as the main issue, and which may or may not be a success, which we are willing to consider, and we believe that in the future very valuable industrial enterprises will be worked out from them, 644 PROCEEDINGS OF AMERICAN MINING CONGRESS but today we cannot count upon them because we have not the known factors of cost and market, but with the oil pro- duction we have these factors. We always deprecate the extravagant advertising of promo- tion enterprises which try to make the public believe that there are in the oil shales an unlimited amount or a limited amount of the rare metals, gold, platinum, molybdenum, and others that you may possibly, in isolated cases, find a trace of. I believe any man who attaches himself to that statement is deliberately lending his reputation to a fraud and he should not be countenanced. If there are isolated cases, they should be treated as such and not as a shale oil enterprise. I have looked with a great deal of suspicion on literature emanating from a number of quarters which held out, as a rare bait to the public, the fact that these rare metals existed. Now, if any gentleman, or engineer, or chemist can be found to extract those rare minerals, he should advertise it purely as a metallic proposition, and not put it on a legitimate proposition like manufacturing oil. I think this covers the business features as we have gone into them, and there are a great many engineers who have gone into long lines of research which are very valuable. I presume a number of them are here today. I think we have been able to show you the series of pro- duction which we can obtain from the crude oil, and our basic figures that we estimate can be obtained from a barrel of crude oil. Gentlemen, I thank you. [Applause.] (By MR. ROBERTS, of Chicago.) Mr. Chairman: I wish to ask re- garding crushing the raw shale and the cost of the crushing. I also gleaned from Mr. Gavin's report that we did not know yet, from a commercial standpoint, as to whether or not the petroleum produced from our oil shales in this country would be of such color and odor that they might require a further treatment what process, I do not know before they could be used as commercial products. I should like those two questions explained, if possible. CHAIRMAN ALDERSON: Mr. Jones, can you answer the question? MR. JONES: I would be glad to answer the gentleman so far as we have been able to determine. I think Mr. Robets will recall I qualified my remarks by saying that the shale was crushed to various degrees of fineness according to the process adopted; there is no set rule excepting that the different processes use different degrees of crushing, and that TS THE SHALE OIL INDUSTRY A BUSINESS PROPOSITION 7645 if a process were adopted which required very fine crushing, it would increase the cost of operations. I think that was in fact my statement, and leaving that to the individual engineer according to the conditions met in his mechanism. Now, as to the quality of petroleum we have found, as Mr. Wallace has stated, and as Mr. Gavin has stated, that varying degrees of tem- perature change materially the quality of the oils and change materially the refining value of the oils, or the refined value of the oils after they were passed through the refining process. We will admit that shale oils require more treatment in the way of agitating, washing and rerunning than petroleum oils, and in our tables we have allowed for the additional expense of such treatment. But we also find that the oils can be cleaned, scrubbed and deodorized so that they are commercially good oils, and, as far as the standard of the value of the oil is concerned, we rely on the test made by the Bureau of Standards in Washington, which we think is the ultimate authorty in this country. 646 PROCEEDINGS OF AMERICAN MINING CONGRESS SOME PROBLEMS OF THE AMERICAN OIL SHALE INDUSTRY By MARTIN J. GAVIN, Refinery Engineer, U. S. Bureau of Mines (Presented by permission of the Director, U. S. Bureau of Mines) The possible importance of this country's vast deposits of oil shale as a new source of hydrocarbon oils has been brought to the serious attention of the public only within the past few years. In this relatively short time many investigators have been working on various phases of the more obvious problems, but as yet only a beginning has been made and we have little practical knowledge of the working of oil shales, especially on a scale large enough to make the industry an important source of oils similar to those now derived from oil wells. In only one country has an oil shale industry been established on a firm basis. That country is Scotland, where oil shales have been worked on a commercial scale for upward of sixty years. Although Scotch oil shales are not altogether like Ameri- can shales and conditions in the two countries differ in many respects, it, nevertheless, seems that before attacking our own problems we should thoroughly understand Scotch practice and problems. In other words, it seems logical that, at the start, we should make the most of the knowledge gained in Scotland, even if later we must modify or altogether abandon Scotch ideas and practice. Scotch Methods Explained Therefore, I will outline the methods practiced in Scotland for mining, crushing and retorting the shales, refining the oils and producing sulphate of ammonia. This will not only serve to point out certain misconceptions regarding Scotch practice, but will aid a better understanding of our own problems. In Scotland the mining of oil shales is invariably done by what is known as the "Pillar and Stoop" or "Pillar and Room" method. A shaft or incline is sunk from the surface to the main seam of shale and from the bottom of the shaft galleries SOME PROBLEMS OF THE OIL SHALE INDUSTRY 647 are driven in all directions, ultimately to the limits of the shale that is to be mined through the shaft. Due provision is made, of course, for ventilation, drainage, safety conditions and haul- age to the main gallery. Shale is hauled in the galleries to the main shaft or incline, whence it is taken to crushers on the sur- face by cars operated by endless ever-running steel cables, or by skips. The shale mining laws are the same as those regu- lating coal mining and are enforced in the same manner under the same act. After the galleries have been driven as far as feasible, the pillars, which have been left between the cross-sectioning of the galleries and which until now are much larger than the latter, are trimmed down, working backward from the out- side. Several seams are successively worked from one main shaft. Approximately 25 per cent, of the shale is left in the ground as small pillars or as finely divided refuse and shale of poor quality. As the pillars are trimmed down the roof gradually sinks in, and this movement often extends to the surface of the ground. Electricity is used for light and power. A man "working at the face" produces about 4V& short tons of shale per day of eight hours. Recently the Scotch operators have been having trouble by reason of the miners' demands for more pay, shorter hours and the like. The profit per ton of shale is relatively small and any large increase in the wage scale or decrease in production per man would be a matter of serious concern. At the surface the shale is broken by two large, slowly revolving, toothed rolls. The maximum size of broken pieces is 6x6x12 inches and the average size about that of an ordi- nary brick. Fines are not screened out, as they can be handled in the retorts if properly mixed with the coarser material. From the breakers the shale is carried in cars by rope haul- age up an incline to the top of the retorts, where it is dumped into the retort hoppers by hand. The Scotch retorts are ver- tical and tapered, consisting of the following parts: At the top is a hopper, which holds several hours' supply of shale. Below the hopper is a cast-iron upper part which is about 12 feet in length and which has a vapor outlet near the top. Under the cast-iron part, and joined to it with a fire clay joint, is the lower masonry part, which is about 18 feet high and made 648 PROCEEDINGS OF AMERICAN MINING CONGRESS of a single tier of very specially shaped fire brick. At the bot- tom of this part is the discharge mechanism and below that the spent shale hopper, which serves two retorts and in which the spent shale accumulates. The cast-iron part is made cir- cular or elliptical in cross-section and the masonry part square or circular. Those of circular cross-section have an internal diameter of about two feet at the top and three feet at the bot- tom. The taper is constant. Each retort with its supply hopper holds about nine tons of shale and the feed is by gravity. Four retorts, as described, are set in a common furnace and are heated by the combustion of the fixed gases resulting from the distillation of the shale, supplemented by coal producer gas when necessary. Four retorts is a unit, and 16 such units constitute a bench, 2 retorts wide and 32 retorts long. The present retort working on shale now being mined in Scotland has a capacity of about 4% short tons per day. Tests indicate that the retort capacity is a func- tion of oil production rather than shale throughout. A retort will produce approximately 100 gallons of oil a day, whether it is working on 10-gallon shale or 100-gallon shale. In the former case approximately 10 tons can be put through ; in the latter but one. In the upper or cast-iron part of the retort the most of the oil distills and the maximum temperature in this part does not exceed 900 F. The lower or masonry part serves mainly as an ammonia and gas producer. About 105 gallons of water, as exhaust steam for each 25 gallons of oil produced, is admitted into the spent shale hopper and passes up through the shale in the retort. The steam serves to absorb the heat from the spent shale, to produce water gas from the fixed carbon remaining in the spent shale, to distribute evenly the heat in the retort, to produce ammonia from the nitrogen of the shale, and to carry off the oil products formed. Distillation with steam increases the yield of ammonia about 2*/2 times as compared with dry distillation and also produces more oil of higher quality. Temperature 1800 Degrees The maximum temperature to which the shale is subjected is not much in excess of 1,800 F., although temperature meas- SOME PROBLEMS OF THE OIL SHALE INDUSTRY 649 urements have never been accurately made within the retort itself. The spent shale is discharged continuously and the mechanisms used for this purpose constitute the main points of difference between the types of retorts. The spent shale is refuse. No commercial use has ever been found for it, although it has been tried in road and brick making. The fixed carbon remaining in the shale amounts to only 11/2 to 2 per cent. This is the economic limit with reference to fuel consumption through-put of shale and ammonia and gas yield. A greater yield of ammonia could probably be obtained by reducing the amount of carbon, but at the expense of through-put. Vapors pass out of the retort through the vapor line which is cast integral with the upper part of the retort. Large suc- tion fans in the dry gas main, between the scrubbers and gas burners, put a slight suction on the retorts. The vapors go to large headers and Whence to a series of U-shaped, vertical, air- cooled, condensers made of cast-iron pipe. Below each U is a receiving box for condensate and from this box the condensed oil and ammonia water are drawn off to separating tanks. Uncondensed gases pass through water scrubbers, which re- move any ammonia remaining in the permanent gases, and through oil scrubbers, which remove the light hydrocarbons, commonly known as "scrubber naphtha." The gas is then led back to the retort furnaces, where it is burned. Shale now being worked in Scotland yields per short ton approximately 10,000 cubic feet of gas having a heat value of about 240 B. t. u. per cubic foot, approximately 24.5 U. S. gallons of crude oil and 36 pounds ammonium sulphate. The crude oil, after having the bulk of the water separated, is run to the refinery. The refining of this oil is more involved and complicated than the refining of petroleum, as the oil must be subjected to more acid and alkali treatments and a greater number of distillations. This means that a shale oil refinery contains more small stills and agitators than does a petroleum refinery of equal capacity. More discontinuous stills are used than continuous stills and the Scotch shale oil refineries have extraordinarily large wax plants, compared with petroleum refineries of equal capacity. Practically all refinery distillations are conducted with a large quantity of steam, which is admitted into the bottoms of 650 PROCEEDINGS OF AMERICAN MINING CONGRESS the stills. The crude oil is run to coke, as are also some of the re-distilled oils. The Average Yield The yield of refined products is somewhat as follows : Per Cent. Naphtha (including scrubber naphtha) 450 F. end-point. . . 9.9 Burning oils (kerosene and the like) 24.7 Gas and fuel oils 24.4 Lubricating oils 6.7 Wax 9.5 Still coke 2.0 Loss 22.8 100.0 Attention should be directed to the high refining loss, which consists of (1) chryseme, of little known value except possibly as a wood preservative; (2) acid and alkali tars or sludges, which are largely used as fuel in the refinery after recovery of the free acid from them, and (3) permanent gases with a high calorific and illuminating value, which are used for illuminating or fuel purposes. Scrubber naphtha, which is the gasoline or naphtha recov- ered from the retort gases by washing them with oil and sub- sequently distilling the latter, amounts roughly to 2.4 gallons per ton of shale. Ammonia water from condensers and scrubbers is run to ordinary continuous ammonia stills. Ammonia gases pass off and are dissolved in dilute sulphuric acid, much of which is recovered from the acid tars. The sulphate solution is con- centrated by a continuous system and is finally purified and sold as crystalline ammonium sulphate. While the Scotchman has never done any extensive research on the chemical properties of his crude oil, he does know that proper retorting means the success of his industry. He aims to produce within economic limits the greatest amount of oil that will yield the greatest quantity of refined products for which he has established a market. He has found that the shale must be heated gradually and plenty of steam must be used in retorting. Also he has discovered the best way to turn SOME PROBLEMS OF THE OIL SHALE INDUSTRY 651 the major portion of his nitrogen into ammonia, rather than allowing it to form troublesome compounds in his oil, or to throw it away in the spent shale. His most valuable product at present is paraffin wax, and his efforts are directed, both in retorting and refining, to a maximum production of this sub- stance, but not, however, to the exclusion of other less valuable products. Some say his methods are antiquated. He can teach most of our refiners a great deal regarding plant economics and labor- saving devices and his retorts are the result of years and years of evolution and experimental work under extremely practical conditions. True, he doesn't give much time to certain scien- tific investigations, but he has an outfit that yields at a profit products for which there is a well-establisheed market. Costs of Mining From their bearing on some of our own problems, it may be well to give an idea of the costs for mining, crushing, retorting and refining in Scotland. Of course, under American condi- tions costs may differ and the same relative distribution may not apply. But the Scotch figures should be of interest as a basis for cost consideration and should indicate in a way where the greatest effort toward reducing costs could be made. At present the percentage distribution of costs in Scotland is about as follows : Per Cent. Mining 53.0 Crushing and retorting 18.5 Recovering sulphate of ammonia 13.2 Refining oil 15.3 100.0 Of importance is the fact that the cost of mining is more than half the total cost of producing refined products from the raw shale. Many of our shales will, no doubt, be worked more readily than Scotch shale, but clearly the mining cost will make up a large part of the total, and, therefore, mining methods and the reduction of mining costs should be given serious and thor- ough consideration. In all probability a saving of 10 per cent, in the cost of mining will be much more important than one of 10 per cent, in retorting or refining. 652 PROCEEDINGS OF AMERICAN MINING CONGRESS The importance of the mining cost is shown by recent events in Scotland. The Scotch shale miners struck in order to force the operators to pay them the same wage scale as the coal miners had been awarded. As the increase demanded would have sufficed to wipe out the small profit now being made by the shale operators, the latter shut down their plants. When the miners realized the state of affairs they came back to work, as I understand, having gained nothing by their strike, but having lost not only the time they were out but also the two or three weeks required for warming up the retorts to capacity production. As regards some of our own shale-mining problems, they can be merely summarized in this discussion. Oil shale is tougher than coal, most of the deposits are hori- zontal, or nearly so, many outcrop high up in the walls of cliffs and canons, and most of them in the Rocky Mountain country lie at altitudes of 5,000 to 8,000 feet. Mining engineers think the shale will be mined much as coal is mined and at a cost about the same as or a little less than that of mining coal in the same relative locality. Methods of Mining The impression has been created that shale can be mined by open-cut or quarrying methods permitting the use of steam shovels. Probably there are a few locations Where such mining may be done, but it may be safely stated that, after a short period at least, the majority of our shale deposits will be mined by galleries and tunnels. To theorize regarding the problems and costs of oil shale mining is of little value, as the costs cannot be determined or the problems solved until mining is on a commercial scale, and practical commercial mining will not be done until shales are treated in commercial quantities at a profit. As regards crushing, the type of crusher used will, of course, depend on the degree of fineness to which the shale is to be reduced, and that in turn will depend on the retorting process used. Toothed rolls work nicely in Scotland, and should here, if we do not want to reduce our shales to very fine pieces, but many of the proposed processes intend to use shale of quarter- inch size ; some prefer 20 mesh and one 80 mesh. Reducing our SOME PROBLEMS OF THE OIL SHALE INDUSTRY 653 rich shales to such small sizes is difficult; the shales, warmed by the crushing, tend to gum together and clog the machine. What type of crusher will be found best for a particular shale? Will it be the jaw crusher, ball mill, hammer mill, gyratory crusher, some other known type, or must we develop a new type? We have little practical information on this subject. The major problems in connection with our oil shale industry are those involved in retorting the shale and refining the oil. We look to our shales to supply us with the products now ob- tained from petroleum and our task is to produce, with due regard to economic considerations, the greatest amount of crude oil that will yield the greatest quantity of products for which there is a demand. A broad view of retorting problems shows that the first ques- tion to be considered is whether Scotch practice can be adopted in toto for American shales and conditions. Must it be modi- fied, and how ? Or must it be abandoned entirely ? The same questions hold with respect to refining. Some persons believe that Scotch practice must be abandoned entirely. Personally, I feel that at least it must be altered more or less to meet our conditions. Most of us, I am sure, feel that Scotch ideas and practices need not be altogether abandoned. Practically all our rich, massive oil shales tend to fuse, sinter or coke in the retort. Obviously, handling of such substances is difficult, especially in continuous retorting. Even the Scotch shales have a tendency to bridge and clog in the retort. The working out of retorting methods and conditions to overcome this difficulty is even more serious with our shales and must be given careful attention. Another problem is the most suitable material for retorts, and especially the possibilities of using a refractory other than ordinary fire brick. When the coal by-product coke plants were introduced into this country from Europe ordinary fire brick were universally used as refractories, but our industry was not well satisfied with the heat-conducting capacity of such brick and other materials were tried. As a result other refractories were discovered which greatly increased the rate of heat trans- mission from the furnace to the charge in the retort. We may expect to gain much assistance from those who derived such refractories, and the possibilities of the use of silica or carbor- 654 PROCEEDINGS OF AMERICAN MINING CONGRESS undum refractories and the like seem to be favorable. There should also be given serious consideration the possibility of using recently developed alloys capable of standing high tem- peratures. Factors to Determine Certain individual factors that influence retorting, and thereby the quantity and quality of products made, deserve careful study. Some of these may be mentioned : 1. Rate of rise of temperature of the shale. 2. Temperature to which the shale is subjected. 3. Amount of steam or other vapors or gases, such as carbon monoxide, used in connection with retorting. 4. Fineness of the shale. 5. Pressure under which retorting is carried on. 6. Time of contact of vapors with retort walls. After these factors are determined they must be applied to large scale work. Then the problem becomes one of finding the particular type of retort that will supply the best conditions at lowest cost. Another problem is the determination of heat transmission and specific heats and other physical and chemical constants of various shales, in order to apply best engineering principles to large scale retorts and retorting operations. .Retorting and refining are intimately inter-related. The obtaining of crude oil from shale is simple and needs merely heating, with exclusion of air and subsequent condensation of vapors, but the economic production of the maximum quanti- ties of the most valuable oils from the refiner's standpoint is not a simple but a difficult and complex problem. Therefore, the study of the production of oil and other products carried out under different conditions, as mentioned above, will not be complete until the products so obtained have been subjected to thorough refinery study and chemical examination. It is entirely conceivable that certain conditions of retorting will produce an oil that will be valueless from the refiner's standpoint, and many inventors who are seeking to develop a retort with extremely large unit through-put do not see that the quality of the oil produced is as important as the quantity, and often is more important. SOME PROBLEMS OF THE OIL SHALE INDUSTRY 655 The Scotch operators know the conditions that give them the best economic yields of oil of the best refining quality. They have fixed these conditions for their shales, but these condi- tions will probably be different for other shales and must be determined. Even in Scotland changes in conditions might arise which would make a product now of little value more valuable than other products for which there has been an ur- gent demand. In such event the retorting conditions might have to be changed to obtain the greatest return. The success of the Scotch industry depends primarily on its production of wax and ammonia. I will discuss ammonia later. As regards wax, the present condition of the market for wax in this coun- try is such that if any large quantity were produced from a new source it is difficult to see where it could be sold profitably. Shale Oil Future We look to our oil shales primarily to supply the country with refined hydrocarbon oils when our petroleum supplies fail to adequately meet the demand. Therefore, we must produce a refinable oil an oil produced under some conditions may not answer. It must yield marketable products and the retorting conditions must be such that each shale oil will yield the maxi- mum quantities of refined products consistent with economic considerations. Absolute quantity of yield may have to be sacrified for quality. The Scotch industry has never been able to produce commer- cially the lubricating oils suitable for internal combustion motors, steam cylinders, or high-duty bearings. Possibly we, by producing oils yielding less of the more volatile products, or by applying new conditions, can make satisfactory lubri- cants for these purposes ; possibly we cannot. What conditions of retorting will be most favorable for the production of lubri- cating oils? Must we sacrifice other products for lubricants, or will the reverse hold good ? The Scotch industry has been successful mainly by reason of its large recovery of sulphate of ammonia. Is the nitrogen in our shales in such form as to yield ammonia easily? Prob- ably it is, but we don't know positively the conditions whereby we can obtain absolute maximum yields or maximum economic yields. Ammonia is being produced by new and cheap methods 656 PROCEEDINGS OF AMERICAN MINING CONGRESS and we may find it advantageous not to concentrate attention on recovering ammonia from our shales, if by neglecting am- monia we can cut down our costs, obtain a larger through-put and increase the retort capacity for oil. Because of refining difficulties nitrogen containing com- pounds should be excluded from the oil as far as possible, and if oil is desired as the main product, the conditions should be such as to eliminate them. What retorting conditions will bring about this elimination ? Will they be the same as those best suited for Scotch shales, and will they be the same for all our shales? In connection with the utilization of our shales, the possibility of recovering the nitrogen as pyridines or pyrrols rather than as ammonia is being studied, as well as the recovery of the ammonia in whatever form seems most desir- able by apparatus entirely separate and independent of the oil- producing retort. The individual Scotch retort performs two functions namely, that of oil production in the upper cast-iron part at a temperature below 900 F., and that of ammonia and water gas production in the lower masonry part at high tem- peratures. Can or can we not, by carrying the two processes out in independent stages, increase through-put per unit and at the same time obtain satisfactory products ? This phase of the industry should receive careful attention. As regards the refining of shale oils, it should be mentioned that Scotch shale oil fractions are highly unsaturated that is, they contain certain olefins and diolefins which must be re- moved, together with nitrogen bases, before the products are of commercial grade. If they are not removed, the color and odor of the products are bad, and gums and resins are slowly deposited, rendering the oils useless for power and illuminating purposes. Removal of these unsaturated compounds requires several acid and alkali treatments and re-distillations, and ac- counts for the high refining loss at Scotch plants. Some indi- vidual problems and studies in connection with refining are : 1. Determination of the resin-forming compounds and meth- ods of removing them without removing other harmless un- saturates. 2. Development of improved and cheaper methods of re- fining. 3. Recovery of acid and alkali from sludges in treating. SOME PROBLEMS OP 1 THE OIL SHALE INDUSTRY 657 4. Use of hydrocarbon compounds in sludges for other pur- poses than fuel. 5. Possibility of hydrogenating or saturating the unsaturated compounds. Loss in Refining Attention is called again to the high refining loss in Scotch practice. Approximately 25 per cent, of the crude, including coke, is lost in refining, as against a maximum loss of 7 per cent, in completely refining the average petroleum. One fea- ture of refining losses is that you not only lose a certain amount of the oil, but must pay for losing it, as the loss results from expensive treatments made necessary by the presence of objec- tionable compounds. If the crude oil produced contains a smaller percentage of these compounds, a saving is made both in respect to absolute recovery of refined products and lessened cost of treatment. We may find that we cannot, with profit, possibly by reason of excessive refining losses, produce a sweet-smelling product of good color from shale oil, and we may find that those products that smell badly and are off color are otherwise satis- factory for certain purposes. Then will come the problem of educating the public to accept and use such products, perhaps in the face of strong competition with the present petroleum industry, a competition that may grow less as the price of petroleum products rises. Much has been said regarding by-products, and the impres- sion has been created that the oil shale industry will be suc- cessful because of its by-products. But by-products are a rather unstable foundation for a new industry of any magni- tude. A few small, individual plants might possibly run at a profit because of the production of rare by-products, but when hundreds of large plants begin work, will not the price of the by-products fall so much that production will become un- profitable? Question of By-Products Granted, for the sake of argument, that under certain con- ditions numerous valuable products may be obtained from our shales, it is highly probable that the conditions for obtaining 658 PROCEEDINGS OF AMERICAN MINING CONGRESS them will not be favorable for obtaining also a large yield of refinable oil, for which there will be a demand and a more stable market. The law of supply and demand exists with re- gard to the so-called by-products as well as with any other commodities. A valuable, rare substance commands a high price because of its rarity, but as soon as it is produced in quantity, unless a new demand is created for it, its price may fall so low as to make its further production inadvisable or un- profitable. Many of the expected and discussed oil shale by- products include drugs, dye stuffs, rare chemicals and the like, which are now produced and used in very small quantities, and a relatively small increase in their production might well un- balance prices and demoralize markets. It is pretty certain that retorting conditions favorable for the production, for example, of products similar to coal tar dye-bases from oil shale will not be favorable for a maximum and commercial production of volatile motor fuels and lubricating oils, assum- ing for the moment that our oil shales can be treated so as to yield such dye-bases. My personal opinion is that the first task in developing our oil shale resources is to determine those conditions of retorting and refining that will produce the maximum quantity of refined products now obtained from petroleum ; then the study of pos- sible by-products may begin, and finally, an economic balance struck with regard to products, by-products, retort capacity and investment and operating cost. Products and by-products will not be interesting if the industry does not pay, and the chief consideration is refined oils. The idea is, of course, to determine for each particular shale deposit and type of retort the most econonre conditions to produce the greatest profits, giving due consideration to conditions of supply and demand. In conclusion, let me tell you of some of the tentative plans of the Bureau of Mines for carrying on its investigation on oil shales. Up to the present time the Bureau has been unable to do any very extensive research work, because of lack of suffi- cient funds. If a bill now before Congress passes this obstacle will be removed, and in the hope that it may pass certain plans have been made. These plans are somewhat tentative and subject to change. The course of the work will be largely in- fluenced by what the public thinks should be done, and for that SOME PROBLEMS OF THE OIL SHALE INDUSTRY 659 reason I am briefly outlining to you such plans as have been drawn. Recommendations to Bureau of Mines After discussion with many individuals and organizations honestly interested in the development of an oil shale industry and with some of the best technical men in the country, I have recommended to the Director of the Bureau of Mines a program which has three purposes : 1. Establishment of heat and other physical and chemical "constants" of shales and of optimum conditions for retorting and refining. 2. Establishment of a method and procedure that will afford a basis of comparison of shales and retorting processes. 3. Determination of the possibilities of the Scotch retort and practice for American shales. A study of optimum conditions for retorting and refining and determination of physical and chemical "constants" will first be made on a small or laboratory scale and then expanded to a scale large enough to give information of practical value. The second stage in the program has in mind a method of comparison of different processes, whereby data can be ob- tained which will indicate the best type of developed retort for the treatment of a particular shale and will lead to the practical application of ideas developed on a small scale. It may be pos- sible to combine the best features of several processes into one better than any or all. In brief, the comparison plan contemplates the erection of a standard Scotch retort and the selection of an arbitrarily chosen uniform and standardized shale. The Scotch retort may not be best for our shales, but we know how it is built, how it operates and have much information regarding its capa- bilities. It will serve as a yardstick. We can then try out any process in direct comparison with the Scotch, working on any shale or the standardized shale, which shale will be useful when a new process plant cannot be set alongside the Scotch retort. The data so obtained in connection with refining the products in a small scale but complete refinery will indicate how much better or worse a process is than the Scotch and thereby than any other process similarly compared. Data pre- 660 PROCEEDINGS OF AMERICAN MINING CONGRESS sented in this nature will make clear to the operator the retort he wants for his particular conditions. Incidentally, this work will also indicate the capabilities of the Scotch retort on Ameri- can shales. Let me again state that these plans are tentative and subject to revision or change if it seems that our efforts can be ex- pended to better advantage in other types of work. Many Unsolved Problems The problems of the oil shale industry, both technical and economic, are numerous and serious; so much so that the Bureau of Mines cannot hope to solve or even to study them all. Besides the obvious problems, new ones are sure to arise as information becomes more extensive. In their solution there is room for all who are genuinely interested in establishing an oil shale industry in the United States. One of the purposes of the Bureau of Mines should be to serve as a clearing house for information on the subject of oil shale, a position which it is perhaps better qualified to fill than any private agency, because its ideas and views are unpreju- diced and the work done by the Bureau is primarily for the national good and not primarily for the benefit of individuals. To render this service the Bureau must have the co-operation of those who are interested. Therefore, on behalf of the Bureau of Mines, I ask the whole-hearted co-operation of the petroleum and mining industries of this country and particu- larly that of this American Mining Congress, and also their suggestions in planning and carrying on this work in such manner as will best serve the welfare of the nation. METHODS OF CONDUCTING A PREVENTION DRIVE 661 PRACTICAL METHODS OF CONDUCTING A NATIONAL ACCIDENT PREVENTION DRIVE By A. F. DUFFY, Manager, Safety Section, United States Railroad Administration When I was invited to speak at this meeting of the American Mining Congress it seemed that as I was a railroad man any- thing I had to talk about would be foreign and uninteresting. But when I began to think of my early boyhood and remem- bered the unsafe mine conditions in Pennsylvania then as com- pared with the many safety devices and close inspection now, and thought also of the fine results we have achieved in the recent National Railroad Accident Prevention Drive and the broadened and voluntarily accepted responsibility in making for better living and working conditions, for the safer operation of railroads, it seemed that you might be interested in hearing about this "Drive" and the practical methods adopted. You may get an idea for your own purposes. The big thing behind the drive was to get the officers, the heads of the railroads, to believe in the work, and then getting the confidence of the men the rank and file to build on this solid, permanent foundation a structure for co-operation and enthusiastic support. You have to believe in a thing to succeed, and as we knew what could be done, based on what had been done in a smaller way, we made definite progress from the very start. Plan of Organization In order that you may know how the Safety Section of the railroads under Federal control was organized and carries on its activities I will have to tell you of our methods of bringing it together in the beginning of things, some months in advance of the drive. By our permanent and standardized Safety Committee plan of organization there is a representative of each branch of the service on the committee, so as to make it inclusive, rather than exclusive to have all angles of suggestion, rather than each 662 PROCEEDINGS OF AMERICAN MINING CONGRESS department talking of its own limited affairs and not learning of or knowing intimately the viewpoint and practical sugges- tions of others. Every railroad under Federal control has this kind of organization, and rather accurate statistics, classifica- tions and comparisons can be made from month to month and year to year. The weak spots are developed and concentration on the causes with remedies adequately applied. Composite Committee When the Safety Section was first planned for the railroads under Federal control, a questionnaire was sent out to find out what the various roads had in safety activities and their methods of conducting meetings and personnel of committees. Some replied, even giving apology for inaction; others had departmentized safety meaning, for instance, the engineering department had its own little exclusive council, and other de- partments likewise. We saw that at meetings of this kind when a subject came up about some other departments the secretary of the meeting was instructed to write a letter to the other de- partment, and that ended its responsibility and often the item was thereby dead. Our plan of organization has changed all of that. We now have a composite committee of the division, which is composed of the division superintendent, the head operating officer of that unit of railroading, the division engi- neer, trainmaster, master mechanic, road foreman of engines or traveling engineer, signal supervisor, division storekeeper, claim agent or adjuster and district or division safety agent as permanent members, and as rotating members, which are changed in representation every six months ; representatives of the following crafts and branches of the service are named: Yardmaster, agent or operator, roadmaster or supervisor of track, track foreman, bridge and building department employee, engineman, fireman, conductor, brakeman, switchman, car re- pairer or inspector, signalman, shopman, etc., and secretary. A careful record is kept of every item offered or presented at each monthly meeting, and these, if not disposed of at once, remain open items with a serial number, and have to be so kept by number and reported each meeting until closed or finally disposed of. METHODS OF CONDUCTING A PREVENTION DRIVE 663 Men No Longer Indifferent With this unified system of working and records we have shown a wonderful growth of interest ; the mental attitude of the men changed from indifference, if not active ridicule and hostility, to one of co-operation and increased enthusiasm. They began to realize that as they were the ones to get hurt they were the ones to be educated and drilled to habits of care- fulness. Now Have 1,700 Committees Today the Safety Section of the United States Railroad Ad- ministration has a permanent active organization of 1,700 com- mittees and 27,011 committeemen, composed of 8,730 officers and 18,281 employees, and also 500 supervisors or outside safety agents employed by the individual railroads who devote full time to inspecting work, shops and terminals, talking and lecturing the men, attending meetings and giving expert advice and counsel. Great Saving of Life We have corrected 128,058 unsafe conditions" and 52,155 un- safe practices in the first eight months of 1919. In the same period of this year we had 934 fewer employees killed and 23,531 fewer employees injured, and a grand total of 1,573 fewer cases killed, including employees, and 25,152 fewer cases injured, including employees, than the same eight months of 1918. With this kind of organization and the experience of several local "No Accident" campaigns in various parts of the country, I obtained the consent of the Director General of Railroads, Mr. Hines, to have a national campaign under the title of National Railroad Accident Prevention Drive for the two weeks period covering October 18 to 31. This was a big undertaking, the biggest intensified safety campaign ever conducted, but with the splendid organization of Safety Committees and experi- enced safety agents behind us we felt all we had to do was to work a little harder, and each railroad was given freedom of action in its methods of publicity and general plans. The methods and experience of the previous local "No Accident" railroad campaigns were given out as helpful suggestions in 664 PROCEEDINGS OF AMERICAN MINING CONGRESS order that the last half of the October campaign might have full preparation. I quote from Safety Section Bulletin No. 6, issued August 10, as follows : Report of Two Weeks' Campaign 1. That September and October Safety Committee meetings be generally and specially called and the drive definitely presented, and suggestions of members of committees be solicited as to ways and means for getting results in accident prevention. 2. General inspection of tools, shops, buildings, equipment and all railroad property, and clean-up periods be commenced Sep- tember 15, and be for short periods or continuously up and through the drive. 3. Meetings early in October held by foremen and gang bosses of each crew on the road, including shops, roundhouses, repair track, B. & B. department, etc., for instructions about the drive and team-work. 4. Pledge cards relative to refraining from unsafe practices. 5. Bulletins of progress on roads, divisions or departments to engender friendly rivalry in making 100 per cent, or clear records. 6. Railroad employes' organizations co-operating through cir- culars and lodge meetings. 7. Publicity by circulars, posters and rallies; and in this con- nection, getting the active co-operation of ministers, schools, public officials, newspapers and periodicals, automobile clubs, commercial clubs, and all other agencies locally available. While the drive is for railroad officers and employes, the public and families are vitally interested sad accidents occur to the public by reason of railroad operation, from trespassing and careless- ness at grade crossings and other places on railroad property. Local conditions and needs will largely govern the manner and method of conducting the drive. And quoting further from the same Bulletin in order that you may understand the advanced mental preparation : The Safety Section is getting unqualified encouragement about the drive from all sources, from some officials and employes who were heretofore indifferent to the personal part expected of them in regular safety work. Now they are awakened by this national drive plan, and we are having their enthusiastic support. Genuine intelligent enthusiasm is manifested everywhere, realizing that everybody has a part, every officer and employe must do his work in this drive, that the personal responsibility and individual duty cannot be delegated or referred to any one else, that the task while a serious one has an inspiring phase, for it is saving others from possible accidents that would cause sorrow and misery. METHODS OF CONDUCTING A PREVENTION DRIVE 665 Circular letters were written by the Director General, Re- gional Directors, Federal Managers and other officials to their respective branches of the railroad service to start and keep up the enthusiasm of the drive. Posters, slogans, buttons and other devices in original designs were made up by the indi- vidual roads, following along the suggestions above quoted. And as an example of the way the rank and file of employees entered into the spirit of it, I quote the following from a letter addressed to the brothers of a lodge of railroad men on one of our Western railroads: This Safety Drive is our drive, much more so than it is the railroads themselves; therefore, bear in mind that the cam- paign is not designed necessarily merely to prevent accidents, but to eliminate them. We should not merely arouse interest in this drive, but enthusiasm both individually and collectively, and the conservation of life and limb of our friends and fellow- workers should arouse the enthusiasm of each and every member. We ask that every member engaged on this railroad make a per- sonal individual effort to follow closely all the suggestions of the Safety Department during this period, and if this is done, we will make a record of which we will be justly proud. One Regional Director offered a handsome solid silver cup to the road showing the best record during the drive. Another Regional Director offered Safety Banners, which were awarded to the two roads in that region on the following basis : One banner was awarded to the road employing 2,000 or more men, which made the largest percentage reduction in casual- ties per 100 men employed this year as compared to last year, during the period of the drive, October 18 to 31, 1919. Another banner was awarded to the road employing the largest number of men (as of October 16th, 1919) under 2,000 men, which made a clear record and has no casualties, this award being based wholly on performance during the drive. This was a spirited friendly contest, but a prize aside from those above mentioned, and was in reality won by the men of each contesting road, for they contracted habits of safety and have the satisfying knowledge of having been personally in- strumental in reducing the number of casualties to their fellow- workers during the campaign. 666 PROCEEDINGS OF AMERICAN MINING CONGRESS Drive Developed Good Feeling The drive was a marvelous success in every particular, for it brought officers and men together in a very friendly way. The democracy of the Safety work, bringing the general manager and superintendent in close personal touch with the highest to the lowest branch of employees in service, in a common but important cause, has increased morale and efficiency. And in thus bringing together it injected kindness and consideration, for while it is recognized that the mechanical and human ele- ments have the most important bearing in Safety and Service, the training of the human is the great problem. And in this connection the term Safety and Service took on a greater sig- nificance and made them feel inspired in its contemplation in definite relation to their duties. It has been said that a life without service is a life without hope and happiness. Nothing good results save through a guiding influence, in this instance that of unselfishly serving some one. And as the Safety move- ment has the service of fellowship as its special function through education, supervision, care and by means of well- organized, efficiently-handled Safety Organizations, temporary results were obtained and permanent good followed. Another splendid development in the drive was the human- izing of accidents. Heretofore when an accident occurred to an employee he was visited by the company's surgeon and a representative of the claim department, written statements taken and index card made for file and final handling, usually in a cold and with money viewpoint, dealing mainly, if not entirely, with the effects or results of carelessness or defective equipment. But in the Safety Drive no accident was counted except those reported or reportable to the Interstate Commerce Commission, and an employee had to be absent from work for "more than three days" to come into that classification. So, while the surgeon and claim department looked after their regular duties the safety representatives also looked into the cases personally and analyzed the causes to prevent recurrence, and also put into each case a bit of that kindly care and fellow- ship of service I have just mentioned. A man in that way was not lost sight of in the interval of absence from work, and with definite knowledge of his possible return his expert and often very important place was not filled by a new and untried man who might be inefficient and wasteful of material and energy. METHODS OF CONDUCTING A PREVENTION DRIVE 667 Accident Reduction 56 Per Cent. For the entire period of the drive (October 18-31) there were 2,773 fewer casualties than in the same period of 1918, or an average of 56 per cent, accident reduction on all railroads in the United States. The drive would have been rather negative if it had not been fostered and managed by a centralized organization. The weak and indifferent were strengthened by the constructive criticism and friendly help officially given outside of their individual roads. To carry on a similar campaign or even a general clean- up and co-ordinated accident prevention work in your great branch of industry it would be necessary to compel those mines that are unsafe and officers who are indifferent to place the properties on a practical standard of safety, just as we in the railroad Safety had to get the railroads well organized before undertaking the drive. Some mines, like railroads, are not all worked under similar conditions the big ones are different from the small ones; localities and conditions vary. But you can do as we did have certain standards of meetings and reporting and handling the items. Education for Safety Education for safety can clearly elevate the mining industry by making the employees' mental attitude one of satisfaction and thereby increasing efficiency and production. And from my experience I assure you it is an undertaking worth while, for the majority of casualties do not come from big causes, and 80 per cent, of the accidents are preventable. It does not take much calculating or a great flight of imagination to figure the possible happiness to the men themselves, as well as to the loved ones the wives and children of the workers that may be gained by our every-day, simple, helpful acts and words for their safety and physical welfare. It may, therefore, be summed up in these few words : Educate, organize, personally and intensely supervise, and thereby conquer carelessness and prevent accidents and distress. 668 PROCEEDINGS OF AMERICAN MINING CONGRESS COAL VERSUS OIL IN POWER PRODUCTION By CHARLES S. ALLEN, Secretary of the Wholesale Coal Trade Association of New York, Inc. The title under which I am to speak is a rather formidable one, but what I shall have to say will not be a technical dis- cussion of the matter. I have come here not to state conclu- sions, but the results of certain investigations we have made on this subject and to leave it to you to draw the conclusions. I suppose in addressing a meeting of coal men representing even so wide a territory as you probably do, you perhaps have the same characteristics that I have found among the members of our Association where our territory is somewhat restricted, and it seems to me the most prominently outstanding of those characteristics is that of complacency. The coal man in my dealings with him has shown a complacency on all occasions which to me, in view of what has been done to him, has been somewhat astounding. We in New York approached this oil as fuel proposition in just that frame of mind. It is true now and then a member of the Association would report to me or some other officer of the Association that he had lost a customer to oil. But he shrugged his shoulders and apparently thought (if he did not say) that the woods were full of others. Menace of Oil Now Realized As time went on, and events moved rather rapidly, our mem- bers became much more interested in this subject more cus- tomers were lost until the situation reached a stage that I think is very aptly described in the current issue of The Black Diamond on its editorial page, in one or two paragraphs, which I will take the liberty of reading to you : The fuel oil menace is a real one. Not only has it reached serious competitive proportions in the East, but it is beginning to undermine coal in the Central West. The present cost of producing coal and the present price of pro- ducing fuel oil are reaching a point where fuel oil is beginning COAL VERSUS OIL IN POWER PRODUCTION 669 to get the best of the argument, when the cost of handling both fuels is considered. On another page of The Black Diamond of this issue there appears a most interesting story of the experience of a large office building in Chicago. This coal consumer has decided that it is cheaper and manifestly much better to burn oil than coal. This case is not an isolated one, by any means. The fuel oil people are working energetically, aggressively, not only in Chicago and Eastern cities, but in the whole country, while the coal man sits dreamily by. A definite plan of action should be mapped out by the coal industry. It happens that the Association of which I am secretary has taken time by the forelock and mapped out a plan, restricted, it is true, by the small number of members in our Association, but being supplemented daily by a growing number of coal men who appreciate the gravity of the situation and the necessity for supporting our program. I shall later discuss the case of oil burning referred to in the editorial just read. Our interest in this subject in New York City became cen- tered upon the proceedings taken by the Board of Standards of Appeals, which is a body of men appointed for the purpose of fixing fire regulations. The Board held a number of hearings. Preceding and contemporaneous with those hearings, experi- ments were being conducted in the Singer Building, one of the largest office buildings in the city, with the burning of oil as fuel. It so happens that Mr. Buxton, who is the engineer of that building, is the father of the gentleman in charge of the Fuel Oil Division of the Texas Company, and they had a very fertile field upon which to work as an initial proposition in furnishing oil as a fuel to an office building on Manhattan Island. The reports made on the result of those tests were entirely favorable to oil, and the announcement has been made in the newspapers time and again that the one unit which has been used as an experiment will be increased until all of the units of power production in that plant have been converted to oil. That activity on the part of the oil people and the considera- tion of the matter by the Board of Standards and Appeals re- sulted in a great deal of newspaper notority and free adver- tising being given to the oil game, samples of which are these : 670 PROCEEDINGS OF AMERICAN MINING CONGRESS This is from the New York Evening Mail of October 30, 1919: "Oil will replace coal in city within five years, experts say. "Board of Standards and Appeals has plan to make New York smokeless and spotless and yet save taxpayers money." We have had in New York, in common with other large cities, profiteering landlords and a great deal of talk about those as well. Here is a headline: "Fair landlords evolve plans to cut expenses and keep rents down. "Oil-generated steam heat proposed," from a central plant. Another headline reads : "Gets large oil contract. "Texas Company to supply General Chemical Company with 300,000 barrels." I could give you any number of others. You perhaps read in the papers a month ago that the receiver of the M., K. & T. Railroad had made a request to the United States District Court for permission to enter into a contract with the Mexican Petroleum Corporation, by which contract the railroad com- pany was to take 15,000,000 barrels of oil over a period of five years, that the oil company was to lend to the railroad company the $650,000 necessary to convert its engines to oil burning, that the oil should be delivered to the railroad company at Galveston at 65 cents plus 35 cents per barrel, which latter sum was to be used as a sinking fund to repay the advance of $650,000 by the oil company. The Seaboard Air Line, a railroad running south from Rich- mond and Portsmouth, Va., to Jacksonville and Tampa, Fla., has recently entered into a contract to convert its motive power to oil burning south from Hamlet, N. C., a division point on the system. New York Trade Bestirs Itself We concluded that, with this increased activity on the part of the oil people, the time had come for the coal people to bestir themselves, and we called a meeting in New York for the 8th of October, which was very largely attended, and as a result of that meeting a committee was appointed. The next day the committee met in my office and, among COAL VERSUS OIL IN POWER PRODUCTION 671 other things, accepted the proffer of the machinery of our Association to gather together and disseminate such informa- tion as we might be able to put our hands upon, which it was hoped would at least be encouraging to the coal man. The preliminary investigation had led us to believe that Providence, R. I., was the plague spot, so to speak, for oil use, and at the committee meeting in my office, after the Associa- tion had been asked to take over this matter, one member of the committee, with the acquiescence of the other members, asked me if I would go to Providence and make an investiga- tion of the situation there, and if it were found to be as bad as it appeared to be, to come quickly back to New York and report so that they might make arrangements to get out of the coal business and into something else. Coal Salesman Must Be Taught Well, I went to Providence and conducted an investigation. We found that what was true in New York was equally true in Providence that is, when oil was mentioned to a coal man, be he proprietor or salesman, he promptly laid down and curled up, very much as would a porcupine, except that he had no quills to shoot back in defense. In other words, he had nothing to say. I have personally interviewed at least a hundred coal sales- men, and I have not found one man who knew of one fact that he could put his hand upon in an argument for coal as against oil. We found in Providence that there were upward of two hundred industrial plants equipped for burning oil, with numerous conversions going on from day to day. And what was true of Providence was likewise true of that whole indus- trial center. That in Boston the oil people were conducting a house-to- house canvass for the purpose of converting users of coal to burners of oil. We found that one oil company had spent $25,000,000 on its plant at Providence ; one oil company. On the streets of Providence we saw more fuel oil motor trucks, by two to one, than coal wagons. We found that in Providence there were several oil burner 672 PROCEEDINGS OF AMERICAN MINING CONGRESS companies, and that they were working in the closest harmony and co-operation. The Aetna Company manufactures a burner suitable for heating residences or small apartment houses. The Fess Rotary Burner Company, which has been transplanted from the Pacific Coast to New England, makes a burner some- what larger, suitable for small industrial plants, hospitals, etc. The Hammel and the Best, and one or two others, are burners for use in large industrial plants. We found that if a man went into the Aetna place, for in- stance, to inquire about a burner and his requirements were such that they could not be met with their equipment, he was referred to the Fess or Hammel people ; and that same system prevailed with the others. Some Industries Changing Back to Coal Having gone that far in Providence, we did not feel much encouraged, but we stuck to the job, and found some instances that were very encouraging. For example, we found one place where there were ten boilers. The oil man came along and persuaded those people to permit them to change six of them to burning oil. They did so. All of the work of installation and use was under the direct supervision of the experts of the oil company. It happened that this plant kept a very close account of the fuel cost and performance, both coal and oil. (It is remarkable how few industries, with their complicated and extensive cost systems, know what it is costing them to burn coal or oil.) At this place they tried out the six oil burners. At the end of several months of test operation, the results were so unsatis- factory that they took them out and replaced them with coal- burning equipment and the oil company was told that it would be sued for damages because of misrepresentations made unless it made good the loss, and I am told the oil company paid for the reinstallation of the coal-burning apparatus in the sum of about $25,000. Another large industry had two sets of boilers, four at one end and three at the other end of an immense plant. The oil people represented to them that they could save money and increase their efficiency by converting to oil; told them they would not need seven boilers, that all they needed was three COAL VERSUS OIL IN POWER PRODUCTION 673 and they could scrap the other four. They consented to put in three oil-burning units with the best apparatus that could be purchased, regardless of expense; scrapped the four other boilers, and went ahead for several months until they saw they were not getting results, and finally had to go out into the yard and gather together the scraps of the four old coal burners and put them back into use. The most interesting information we gained was the result of investigations made by a gentleman who has had years of experience in burning oil in California and Arizona and had acted as an expert for the Government in oil burning and had finally gone to Fall River to be chief engineer for a large plant there. A Questionable Economy He spent $5,000 in investigating the subject of oil burning in the East. My recollection is, they had twenty-seven boilers in their plant and the result of his investigation, in a word, was that while there was a saving, on the face, in burning oil in their plant, it was so small that it would take them twenty-four years to repay the cost of installing the oil-burning equipment. They continue on coal. Another concern in Trenton, N. J., made very exhaustive tests and found that there was nothing to be gained in burning oil even at three cents per gallon, compared to coal at $5 per net ton. Similar investigations have been made by Thomas A. Edison's plants around Orange, N. J.; by the Public Service Corporation of New Jersey, which is the company that fur- nishes the electricity for the lighting and street cars, urban and interurban, for a large part of the State; by the Hartford Electric Company, of Hartford, Conn., and the Amoskeag Mills of Manchester, N. H., and all decided against burning oil the details of which I have here, but will not burden you with at this time. So with the result of that investigation as a preliminary, I returned to New York and reported to our people, and they were sufficiently heartened to authorize me to go ahead to con- duct further investigations to gather material to enlighten the coal man on the subject. Our first step was to engage a combustion engineer, who is 674 PROCEEDINGS OF AMERICAN MINING CONGRESS the head of the Engineering Department of one of the great universities in the East. He has taken over this matter for us, as he expressed it, with an absolutely open mind, to go to the bottom of the whole subject and to give us a report, which we expect to have within a very few days. I have discussed his preliminary report with him and I can assure you that when his final report is made it will be entirely satisfactory and will contain much valuable material that we can make use of, as well as to have the privilege of consulting him as occasion may arise. Now, gentlemen, I want to say a word to you about the possi- bilities of fuel oil competition. A great many coal people think that the menace of oil is confined to the Atlantic and Gulf sea- board. While that may be true for the moment, it is not true for all time. The factor which will determine the use of oil as against coal is whether or not it may be transported by water, and consequently any place that may be reached by a boat or barge is as ready a market for fuel oiJ as is Providence or New York or Boston or Galveston, the only difference being the slight variation in water freights. Now, having that in mind, let me call your attention to the geography of the situation for a moment. Of course, you have all of the principal manufacturing concerns of the New England States practically on the seaboard; the whole length of Long Island you have the Hudson River, and if that, the Erie Canal and all the important towns located on those waterways, such as Newburgh, Poughkeepsie, Albany, Troy, Amsterdam, Syra- cuse, Rochester, Utica, Buffalo; if Buffalo, Lake Erie, and if Lake Erie, why not Lake Huron, Lake Michigan and Lake Superior, with Cleveland, Toledo, Detroit, Chicago, Milwaukee and even Duluth ; if the Atlantic Ocean and the Hudson River, why not the Potomac, Chesapeake Bay, the James River, the Savannah, the Alabama, the Mississippi, the Ohio, the Tennes- see and the Missouri ? Transportation Problems Involved When you examine the map you will find that practically all of the large industrial centers of the country are accessible to oil deliveries by water, except St. Paul, Minneapolis, Omaha, Kansas City, Atlanta, Denver and two or three others. COAL VERSUS OIL IN POWER PRODUCTION 675 A compilation of the population of these centers accessible by water shows a total of more than 30 per cent, of the total population and certainly 75 to 80 per cent, of the industrial activity of the country. As to the supply of oil, the menace to the coal people is not from the oil produced in the United States, because, as you know, it is largely of a paraffin base and too valuable to use for fuel purposes, except the residue, which results from the dis- tillation of the other more valuable constituents, and that resi- due is not desirable as a fuel because of the fact that it has a very low flash point that is, the temperature at which it gives off inflammable gases. Consequently, the danger is from Mexican oil, and since the signing of the armistice and the withdrawal of our fleet and the termination of other war activities in which oil was used in Europe there has been a great quantity of that oil thrown on the market in this country. Extent of Imports from Mexico In the year 1918 there were brought into this country in round figures 32,000,000 barrels of crude oil from Mexico, the equivalent of about 8,000,000 tons of coal. In the month of July, 1919, there were exported from Mexico to the United States 4,881,446 barrels of crude oil. That would be at the rate of 45,500,000 barrels in one year an increase of 11,600,000 barrels over last year. This oil, as you know, of course, comes into this country duty free. You may know that one Mexican well is now and has been for several years producing 300,000 barrels of oil a day. The oil people have many millions of dollars which they have been spending and will continue to spend in their campaign for educating the people to the alleged advantages of using oil as a fuel. The coal people are not so fortunately situated in that respect. I would like to read to you an extract from an address that was delivered by Mr. A. L. Wilson, who is superintendent of the power plant of the Bayonne station of the Standard Oil Company. Mr. Wilson addressed a meeting of engineers at Newark, N. J., on the 22nd of October. We heard he was going to speak, had a report of his speech made and sent him a copy 676 PROCEEDINGS OF AMERICAN MINING CONGRESS with a letter in which we told him that we expected to use it, and that if it was not a correct report we would like to have him correct and return it to us arid that unless we heard from him we would assume it was correct and make use of it accordingly. What an Oil Man Says We have not heard from Mr. Wilson, and assume, therefore, that the copy we have is a correct one, and it is from that I will quote on the point of what may be expected in the way of increased activity in the oil : Now there is probably something else that is bothering you, and it is bothering a great number of the engineers today; is it going to pay us to go on oil? We know that the coal barons are going the limit on the thing, they are getting all they can out of it, but can you believe that the combined oil interests are any weaker than the coal people? Now just think of that for a, minute. You have no idea of the number of wells today that have been opened and capped, that are not being handled because there is a sufficient supply of lighter oils on the market that it pays better to handle. There is more behind this oil game than any of us know anything about. Oil Supply Monopolized Further on that proposition I would like to read you from a newspaper clipping which says : FIGHT TO CORNER OIL IN FRANCE STANDARD AND ROYAL DUTCH COMPANIES SEE SUBSTITUTE OP CRUDE PRODUCT FOR COAL (By Kenneth Latour, Universal Service Staff Correspondent) Paris, Oct. 25. A secret trade duel has been opened between President Bedford of the Standard Oil Company and President Deterding of the Royal Dutch Company, the issue of which is the monopoly of the French oil market. Now, gentlemen, you may say that you are not interested in the French oil market, but here is the connection I am trying to establish, and this is the thought that you should give to your COAL VERSUS OIL IN POWER PRODUCTION 677 consumer of coal: There are today between six and seven thousand companies producing bituminous coal in the United States. I believe that any man in this audience can say that there is the keenest competition between these producers of coal. Now, when your man goes on oil, what is he doing? Putting his head into a noose, the other end of the rope being held by five or six large oil companies, and if anybody in this audience or anywhere else believes that there is competition in the oil business today, let him get an automobile and then buy a little gasoline. A Typical Oil Contract The contract that is presented to business men by oil com- panies is the most remarkable document I have ever seen. I have here a typical oil contract. It is too long to read, but I will quote briefly from it : Said price is based on rates and conditions of taxation and other governmental charges actually payable at the date hereof. In case the seller shall hereafter be required to pay any new, additional, or increased taxes, dues, rentals, royalties, or charges of any nature, however the same may be collected and by what- soever name they may be known and whether or not they become payable pursuant to legislative or other action heretofore or here- after taken in the Republic of Mexico or United States of Amer- ica, by any legal or de facto governmental authority or person or body exercising actual power, which directly or indirectly increases the cost of producing, handling, exporting from Mexico, importing into the United States, treating or transporting the petroleum covered hereby, the seller shall be entitled, upon noti- fication to the purchaser, to advance the price of such petroleum to the extent of one-half the amount of the new or additional taxes, dues, rentals, royalties, or charges thus payable. Purchaser agrees that the roads and connections between the public highway and its receiving tanks will be kept in good and suitable condition at all times, and open so as to permit the passage of the seller's loaded trucks without difficulty or delay; * * * for all delays to seller's trucks caused by non-compliance with the foregoing provisions, or otherwise caused by the pur- chaser, the purchaser shall pay demurrage at the rate of $3.00 per quarter hour or fraction thereof. 678 PROCEEDINGS OF AMERICAN MINING CONGRESS "Force Majeure" Clause The seller shall not be responsible for any delay, failure or omission in the performance of any of the stipulations, obliga- tions and conditions herein contained caused by strikes, labor disturbances, fire, epidemics, earthquakes, wars, riot, internal disorders, insurrections, revolutions, hostilities, restraints of princes, rulers, or peoples, blockades, the expropriation, taking, occupation or confiscation of property whether direct or indirect, or interference in its holding, administration or operation of its oil or other properties by civil or military authorities, or by those having or purporting to exercise actual control, whether such expropriation, taking, occupation, confiscation or inter- ference be lawful or otherwise, and whether effected or purport- ing to be effected under color of or pursuant to any constitution, decree or law established pursuant to legal or ostensible authority or otherwise or by the operation of any such constitution, decree or law, the commandeering of vessels or other property, force of any kind, floods, storms, perils of the sea, accidents, explo- sions, quarantine, accident to or stoppage of steamers transport- ing the petroleum, stoppage of machinery or pipe lines, cessation or diminution in production of seller's wells, barratry of masters or crews of seller's ships, act of God, or any cause whatsoever not within its control, whether of the class of causes hereinbefore enumerated or not, and whether or not any such contingency mentioned in this article shall rise or any of such causes shall become operative in the Republic of Mexico from which the ' petroleum supply of the seller is derived, or upon the high seas, or in the United States of America, or elsewhere. In any such case the operation of this contract, so far as necessary, shall be suspended during the period of any such delay without any responsibility for damages on account thereof, it being under- stood that the cause of such delay shall be remedied if possible, with all dispatch, and the performance of this contract resumed at the earliest practicable time after cessation of such inter- ruption unless this contract be terminated, as hereinafter pro- vided. Sign in Haste, Repent at Leisure Now, as astonishing as it may seem to you, any number of people have signed that contract. Why ? Because the oil idea was probably sold to them before they ever saw the contract and when the man became inoculated with the virus of this oil- burning "fever" which seems to be taking possession of some of them and had gotten to the point where he said "Oil and nothing else for me," then the contract was handed to him and COAL VERSUS OIL IN POWER PRODUCTION 679 the dotted line was pointed to and he was told to "sign here." That is the only way any sane man would have signed it, in my opinion. It happens that Mr. Wilson and several other oil advocates have furnished us with a good deal of material. A gentleman who is a combustion engineer of wide experience in the East and on the Pacific Coast and in Canada in both the coal and oil matters, now employed by one of the larger oil-burning equip- ment manufacturers, addressed a meeting of engineers at Providence, R. I., not long ago, and I will read you one or two things that he said : In deciding on the question of installing oil in the place of coaly the results obtained in one plant cannot be used directly for comparison with another plant; data is not transferable, as each plant presents engineering problems of its own. The change should only be undertaken after consulting with competent authorities. The purchaser should obtain a contract giving guarantees ex- tending over a period of years. Facts to Be Determined In determining the advisability of change, it is first necessary to determine: 1. What results are being obtained with coal. 2. The age and condition of the boilers in the plant. 3. Condition of the settings. 4. And other pertinent facts. Wise buyers now purchase both coal and oil on a heat unit basis. To get accurate estimates the efficiency of the plant should be determined for six months and then, when the facts are known, all cards should be laid on the table for the information of the combustion engineer who is to recommend in connection with oil burning. The important thing to determine is the average evaporation throughout the year, not the maximum that can be obtained only under ideal test conditions. Results obtained from short-time tests should be discounted. It is useless for a salesman to state what he can save, unless he knows the whole story. Injury to the boiler does not always show up at once. Oil burning looks simple, but there are a surprising number of kinks in installing and running. Many guarantees made in connection with boiler operation are not worth the paper that they are written on. 680 PROCEEDINGS OF AMERICAN MINING CONGRESS The salesman is rather prone to make high guarantees, but the cautious engineer dislikes to do so, as he is not given to gambling. Excessively high guarantees are seldom lived up to and it is well not to be influenced too highly by enthusiastic salesmen. The regulation of the oil is a most important feature, and if this is not done carefully, ivaste occurs. Automatic regulation is now essential; improvements in such automatic regulations are now under way and these improve- ments tend to make possible the highest efficiency; but at present it is impossible to state just what will be done, for the control will undoubtedly be determined by the load and this automatic regulation, if perfected, will be the biggest feature in saving money. Another Form of Contract Now, gentlemen, I saw one contract that was made for a period of five years and that was the nearest approach that I saw to an oil contract naming a price for an extended period, and that named a price for an initial period and provided that all prices in the following periods of six months should be fixed with relation to the price of coal in the immediately preceding six months. This oil engineer, speaking to a body of engineers, said.: The price is seldom fixed, but is generally governed by the price of coal and based on a comparison with future coal prices. While the prices are fluctuating, it is probable that oil will always be cheaper than coal. The price will depend largely on facilities for delivery. Where it can be delivered directly from a boat, it will be the cheapest; rail delivery is more expensive. I could go on and quote further along this line, but I will not weary you with these details. Let me say that this information is on file in our office and will be placed at your disposal on request. Before closing, however, I want to say a word about some of the claims made by the oil people with respect to the com- parative cost of burning oil and coal. Some Comparative Costs Recent prices of oil run all the way from 65 cents, at Gal- veston, to $2.625 at Chicago, with New Orleans, 77i/ 2 cents; COAL VERSUS OIL IN POWER PRODUCTION 681 Trenton, N. J., $1.26; Meridian, Miss., $1.535, and Providence, R. I., from 93 cents to $1.55 per barrel, depending upon the date of the contract under which deliveries are made, and in some instances this wide variation in price is found at a single plant, where different contracts are in force. The claim for oil is that four barrels will equal one ton of coal; but investigation shows that five barrels would be about the minimum, so that while oil at $1.50 per barrel is, according to the claim of the oil people, equivalent to $6.00 coal, many users say it should be at least $7.50 coal and in many cases more. For instance, at Brown University, in Providence, Professor Kenerson estimates that his present contract for oil at $1.47 per barrel is equivalent to about $9.00 coal, and if the price is raised to $2.50, as he expects it will be, the equivalent will be $14.00 coal. An Example of Exaggerated Claims As an example of the exaggerated claims made for oil, which upon analysis are disproven on their face, I want to discuss for a moment the instance referred to in The Black Diamond editorial from which I read at the outset : This report uses oil with a B. T. U. basis of 19,000 and figures that at 5 cents per gallon the net B. T. U. produced per 1 cent of cost for fuel (80 per cent, efficiency in combustion) would be 22,800 ; compared to coal with 10,000 B. T. U. at $5.00 per net ton (at 60 per cent, efficiency) , making 21,816 effective B. T. U. per 1 cent of cost; showing about 41/2 per cent, in- creased efficiency for the oil above coal, with no allowance made for the 3 to 5 per cent, of steam used for atomizing the oil so that it may be properly burned. If, however, we take figures which are more nearly correct as a basis for the calculation, an entirely different result is produced. The oil companies claim only about 18,200 B. T. U. per pound for fuel oil. The gentleman making the comparison admits the oil costs him 6*4 cents per gallon. Substituting these two factors for those previously quoted but otherwise using the same figures, we find that the net efficiency produced is 17,472 B. T. U. for oil per 1 cent of cost. 682 PROCEEDINGS OF AMERICAN MINING CONGRESS If we take, instead of $5.00 per net ton for coal, $4.65 the cost of coal now in the bins at this building, using the other factors (though 10,000 B. T. U. for coal is very low, likewise 60 per cent, efficiency), we find that the result is 25,806 B. T. U. per 1 cent of cost for coal, or an increased efficiency for coal over oil of 47.0 per cent. Even accepting the figure for coal on basis of $5.00 per ton we have, according to the gentleman's calculation, 21,816 B. T. U. per 1 cent of cost as against 17,472 B. T. U. per 1 cent of cost for oil, on basis of 18,200 B. T. U. per pound (which is the correct figure), or a difference in favor of coal of 4,344 B. T. U., which equals 24.8 per cent, increase in favor of coal as against oil. What has happened in the East is that the oil salesman has influenced the man who was disgruntled by the fact that he was unable to get the coal, has sold him the oil idea and then gotten him to sign the oil contract. Must Fight the Devil with Fire The oil companies do not generally employ ordinary sales- men, but combustion engineers, who go into a plant and see that the oil is burned under the most favorable conditions. The coal salesman must be educated to dwell upon the more efficient burning of coal as well as the disadvantage of oil burning, to meet the kind of competition the oil people are putting up. It is that work which we have undertaken and which I have .endeavored to outline to you here. Briefly stated, we want to gather all information possible on the two propo- sitions, (1) more efficient burning of coal and (2) the disad- vantages attending the burning of oil ; and to disseminate it to the trade. The subject, however, has many complexities and it is diffi- cult to adequately cover it by the written word. To meet this situation we expect to call meetings of coal salesmen in the more important centers, and have present at those meetings men who have informed themselves on the subject and who will transmit their information by word of mouth to the men in the field, who come in direct contact with this menace to the trade. COAL VERSUS OIL IN POWER PRODUCTION 683 From the investigation I have made, it looks to me like a fight and a good stiff one, and in the limited capacity of our membership in New York, with such assistance as is given us, we intend to continue the fight as long as we have anything to fight with and to fight about. Thank you. [Applause.] 684 PROCEEDINGS OF AMERICAN MINING CONGRESS WHAT IS THE CAUSE OF THE PRESENT LABOR DISCONTENT? Address by JAMES TAYLOR, Special Mining Investigator of Illinois The spirit of American civilization is immediately progress- ing. The increase of our population, the springing up of new cities and the growth of old ones, the extension of our railway .and telegraph systems, the increase of our agriculture, manu- facturing and mining products, the development of our natural resources, the accumulation of our national wealth all these are simply enormous. Such is the progress of invention and the increase of knowledge, and such is the rapidity with which important changes jostle each other, that years seem like gen- erations. In the midst of all this progress the workingman feels that he is practically standing still. His wants are increasing with his intelligence, but there is no corresponding increase in his means. We hear it often said and often denied that while the rich are growing richer the poor are growing poorer. The poor are growing poorer in the sense that their wages buy less of the necessaries of life and that they are rated lower on the tax list ; it is also true in the sense that there is a greater disparity now between the workingman's income and his wants than ever before, and that is the only sense worth considering in this connection. What is the cause of the discontent among the laboring class ? To some it seems causeless, or at least without excuse, because workingmen are now better fed, better clothed, better housed than ever before, while many workingmen believe that their condition is growing constantly worse. Whether the in- dustrial classes are any happier now than they were a half century ago may be doubted, but beyond question their condi- tion is improved. No doubt the condition of the workingman has improved, but it by no means follows that he should be any better con- tented. There has been a change for the better in the circum- stances of workingmen, but there has been a still greater WHAT IS THE CAUSE OF LABOR DISCONTENT? 685 change in the men themselves, which is the secret of increasing popular discontent amid improving conditions. Laborers More Intelligent In considering how great has been this change in working- men, mark the increase of popular intelligence during the past century. For thousands of years the Sun of Knowledge was below the world's horizon and only the very top of the social pyramid could catch his beams. The invention of printing was the world's sunrise which drove the black shadow well down the sides of the pyramid, but left the broad lower strata of society still wrapped in the darkness of ignorance. There has occurred in our own times an event, scarcely less important to the world than the invention of printing itself, which has lifted the sun high in the heavens and flooded the very foundations of society with light. I refer to the successful application of electricity to the printing press. Few appreciate the tremen- dous significance of this event. It meant the enlightenment of the many for the first time in the world's history. Add to a man's knowledge and you enlarge the world in which he lives; he sees a wider horizon; his future contains greater possibilities; he becomes conscious of new wants and higher aspirations, which, if they cannot be satisfied, naturally breed discontent. Popular power makes popular intelligence a necessity ; popu- lar intelligence makes the multiplication of popular wants in- evitable ; and the multiplication of popular wants, if more rapid than the improvements of the popular condition, necessarily produces popular discontent. It is quite too late for us to turn back. The multitude have already tasted of the fruit of the tree of knowledge of good and evil and have become aware of the nakedness. The supplies which cover the bare necessities of life are mere fig leaves. The workingmen will never be satisfied until their wants are supplied with the fullness of modern civilization. The average workingman two or three generations ago would no doubt have been well contented with the hours, wages, food, lodging and clothes of the average workingman today, but during the nineteenth century public schools, public libraries, art galleries, museums, expositions, public parks, newspapers all have become common. 686 PKOCEEDINGS OF AMERICAN MINING CONGRESS Advertising, which is the art of making people want things, appeals to all classes alike. There has been a wonderful level- ing up of the "common" people. Once great men were gods, and slaves were less human. Now all alike are men, having much the same wants and quite the same rights. The growth of individualism, the equality of all men before the law have suggested the ideas of equality of condition and made the work- ingmen feel that they are as capable of enjoying the good things of life as their employers. All these have contributed powerfully to increase the intelligence and wants of the work- ingman, and the resulting elevation of the standard of living has made a home, a table, a coat, seem almost intolerable which once would have been deemed comfortable and even luxurious. Labor Conditions Changed The conditions under which he works are radically different from what they were a hundred years ago. Profound economic changes have attended the transition in the world's methods of production and distribution which has taken place during this century, and more especially the past 25 or 30 years. It is to this source we must look for some of the principal causes of the popular discontent which has been so pronounced ever since the ^commencement of industrial affairs. Jn the "age of homespun" industry was individual; it has now become organized. This organization first extended from the home to the work shop. Soon the work shop became the part of a large system, including in its organization the town, the province or region, then the whole country, and now we have entered on the last great stage, viz: that of organizing the industries of the world. Each new stage in this development has necessarily dis- turbed industry and required a more or less extended readjust- ment of labor. Every great labor-saving invention has of course thrown thousands out of employment, though every such mechanical triumph has ultimately given employment to many for everyone that it has robbed of work. Value of Organization The only basis upon which any permanent peaceful relation between labor and capital can be established is the equality of WHAT IS THE CAUSE OF LABOR DISCONTENT? 687 organized representation. The first and vital, nay, indispen- sable, condition of such a relation is the unqualified recognition by both parties of the right of organized action and the full recognition of the accredited representative of such organiza- tions. There should be a getting together of the accredited representatives of the largest bodies of organized capital and of organized labor for the purpose of devising a policy by which the natural differences between capital and labor may be settled on economic terms without recourse to the methods of war. Ever since the dawn of the wages system this has been a serious problem in industry. Employers have been profoundly impressed with the fact that they were responsible for the success of their business; that no amount of sympathy with labor or philanthropic sentiment would save them from bank- ruptcy if their business was not conducted on business prin- ciples. On the other hand, with equally exacting and painful experience, the laborers have realized that if they did not do something to improve their own condition there was nobody whose duty it was to do it for them. They realized that modern political economy and modern industrial methods were all built upon the theory that the laborer is a free agent ; that his wages are the result of a bargain between him and his employer, and that it is his right and privilege and his duty to make the best bargain he can, and if he makes a poor one he pays the penalty. By experience, sometimes very disagreeable, the laborers learned that single-handed and alone they were unable to compete with their employers on these matters so long as employers had the power of discharge and blacklist. The laborers realized that something must be done to overcome this, and it gradually came about, as it always does, that the only effective way is the natural way, namely organization. Unionism Permanent What was effective for the employers became necessary for the laborers. Notwithstanding the legal, social and industrial persecution in every country where labor organizations have arisen, and they have accompanied the wage system every- where, the unions grew with this development of complex cor- porate industrial enterprises. All this shows that labor organi- 088 PROCEEDINGS OF AMERICAN MINING CONGRESS zations are a permanent, irresistible part of modern society. They are, in fact, just as permanent and as extensive, because they are just as natural, as the wage system and large corpora- tions. Such being the fact, the only peaceful solution of what- ever friction arises must be preceded by full and frank recog- nition of this inevitable condition. Society itself cannot exter- minate either of these two forms of organization without put- ting itself back to a state of industrial barbarism. There is not power enough in any form of government, however des- potic, to stamp out corporations, because no individual effort will furnish any approximate equivalent of what corporate effort is furnishing. On the other hand, there is no power strong enough to stamp out labor organizations in those coun- tries where capitalistic organization has reached any degree of proficiency in cheap production. Something Better Must Come The trend of public opinion is along fairer lines than it used to be. The rights of the working classes are demanded by the press; public opinion demands that the worker be treated in accordance with the teachings of humanity and civilization. Something better must come to people as a whole, and if the managers and the workers will understand that all men must be fair to each other, and will carry out the promises made to each other, the improvement in labor conditions must be the result. Both corporations and labor organizations are before the bar of public opinion and it will be a disgrace to our age and to us if we do not discover some method by which the public functions of these organizations may be brought into full sub- ordination to the public, and that, too, without violence, and without unjust interference with the rights of private indi- viduals. It will be unworthy of our age and of us if we make the discussion of this subject a mere warfare against men. For in these great industrial enterprises have been and still are engaged some of the noblest and worthiest men of our time. It is the system, its tendencies and its dangers, which society itself has produced, that we are now to confront. And these industries must not be crippled, but promoted. The evils com- plained of are merely of our own making. States and com- munities have willingly and thoughtlessly conferred these great WHAT IS THE CAUSE OF LABOR DISCONTENT? 689 powers upon railways and corporations, and they must seek to rectify their own errors without injury to the industries they have encouraged. It depends upon the wisdom, the culture, the self-control of our people, to determine how wisely and how well this question shall be settled. But it will be solved, and solved in the interest of liberty and justice, I do not doubt. And its solution will open the way to a solution of a whole chapter of similar ques- tions that relate to the conflict between capital and labor. The true policy is always that which recognizes the inevita- bleness of the natural. The natural tendency in this case is for both sides to use the force of organization or collective action, because that is the line of greatest efficiency and least resist- ance. It is, therefore, the true economic and hence the true ethical line of movement. Whenever and so long as each of two great social forces, neither of which can be suppressed, refuses to recognize the legitimacy of the other, so long will there be war and the energies of both be wasted. We are now witness- ing exactly that wasteful contest. The struggle is for su- premacy, each trying to enforce the rule of dictation over, in- stead of co-operation with, the other. Arbitrary Spirit Rules The spirit in which both these movements was conceived was the spirit of arbitrary compulsion, the spirit of coercion, for the purpose of asserting the respective power of each to coerce the other. This has been so extensive and so unsatisfactory to both sides, and so repulsive to the whole spirit of economic equity and social peace, that it is forcing the attention of re- sponsible labor leaders and great capitalists toward a more national and natural method of treating the subject. It is not for capitalists to decide the basis of labor organiza- tion. It is for them to recognize fully and freely the principle of organization and the right of the laborers to organize. If in their organized action they demand foolish things, the cor- porations have the right and it is their duty, as it is the duty of the public, to criticize the laborers for making these demands. It is of the mistakes growing out of the economic crudities of labor organization that they have often made it a part of the policy to restrict the output. But these are details. They are 690 PROCEEDINGS OF AMERICAN MINING CONGRESS mistakes in the policy of trade unions, just the same as putting- up the price, persecuting competitors and bribing politicians are mistakes in the policy of corporation. In closing, I give you the following : Almighty Father of nations, Thine is the sea and the shore. Guide us and guard us and keep us. The land of the open door. Not by the thunder of cannon, But by the flash and the flame Of Thine infinite wisdom Keep us from hate and shame. Yet when the clanging challenge Called us to sea and to shore, Blithely we went where the battle-tide flowed, Under the flag we adore. Never was banner fashioned More filled with the high hopes of men. Up with the true flag, the red, white and blue flag; God, keep it stainless. Amen. STABILIZATION OF COAL MARKET THROUGH STORAGE 691 STABILIZATION OF THE COAL MARKET THROUGH STORAGE By J. C. THOMPSON, Director, Department of Mines and Minerals, State of Illinois In discussing the question of stabilizing the coal market, I think it is first advisable to take into consideration some of the factors that have led up to the present crisis. Probably some of you are aware, as I am, that the present crisis has brought before man's mind especially in this part of the country the necessity for something being done to stabilize the industry to prevent a recurrence of a condition such as exists at the present time in the United States. In dealing with that question we ought first to take into consideration the factors that led up to the present crisis. The factors are these : that while in Illinois the mines we have at present, if forced to the maximum, could probably produce 150,000,000 tons of coal per year, the average working year in Illinois has been 180 working days, and in some instances it is down to 120 days. It must be self-evident to any experi- enced man that if our mines have to be shut down for three or four months during the hot weather, we have not enough mines in Illinois to produce the coal with which to meet the requirements of the nation during the extreme cold weather. Such being the case, what are we going to do? Of course, I have heard it stated that the miners are ready for the present crisis. I was very sorry the other day to hear a telegram read to the effect that if the miners worked they would be earning $13 a day now. I want to take exception to that. A man making a statement of that kind absolutely stamps himself as a man ignorant of the mining conditions. The miners having contended that they have not been able to get what they are entitled to except by striking, I am not sure that we can deny them the constitutional right to refuse to work. Of course, morally it is wrong, but it is their con- stitutional right, and if they can only get their grievances remedied in that way and there is no other way open to them to have them remedied, what can they do ? 692 PROCEEDINGS OF AMERICAN MINING CONGRESS Only Five Months' Work Now, this problem must bring before the minds of experi- enced men one fact we must do something. The miner says he has a right to live. He cannot earn sufficient money during the winter to maintain himself and family during the entire year with the present high cost of living. He has to live 12 months in the year and he gets only five or six months* work. He appeals his case to the country. He has come to the time when the public generally decides against the miner, for the simple reason that the public does not understand the condi- tions under which the miner works the fact is that up to the present time it has been impossible for him to get steady work six days a week. While I admit that the demand for five days a week and six hours a day is perhaps ill advised, still the miners considered that if they worked five days a week during the winter there would be a possibility of more work in the summer. Of course, that may not be the remedy. I do not consider it is the correct remedy. Storage Is Solution My experience teaches me and I have had some experience in different countries that the only solution lies in the storage of coal. Run the mines during the summer and have some means of storing sufficient quantity of coal that will serve the public need with the mines running ordinarily during the win- ter. Of course, people who are not acquainted with the details of coal mining will wonder how we propose to do that, and in doing it you must remember this : that there are three parties involved the operators, the miners and the general public. We have had a good deal of the "dear public" during this struggle. The public must bear a part of the burden. If they want to have the comforts, they must bear their corresponding responsibility with the other two parties, because the miners on the one hand and the operators on the other have just as much right to existence as the general public. The trend of opinion has been along the lines that the public was something separate and apart from the miners or operators. That is wrong the miners and operators are a part of the general public. Each must bear a burden. The question of storage of coal is one that has received some STABILIZATION OF COAL MARKET THROUGH STORAGE 693 attention for a number of years in European countries. I am prepared to admit that our climate differs from theirs, and what might be possible for them to do might in some respects be a physical impossibility for us to do in this country. Methods of Storage Now, what are the objections to storage of coal? It has been ascertained we have two methods. Storage on the sur- face the danger in that system is twofold. One is the rapid deterioration of coal due to evaporation. It has been shown that coal exposed to the atmosphere would deteriorate to the extent of something in the neighborhood of 25 per cent, in four months. You have got to provide storage of coal to cover six or nine months, probably twelve. That is one of the objec- tions to storing coal open to the atmosphere. The other arises from the danger. You know that in many mines, especially in Southern Illinois, we have more or less sulphur in the coal, and whenever you have sulphur in the coal you leave exposed to the atmosphere you are in danger of having spontaneous combustion and the loss of a whole lot of coal instead of 25 per cent. That danger is not an imaginary one. It is a real danger. I have seen in Illinois coal dumped on the open ground that contained as much as 3 2 %oo per cent, of sulphur, and in 10 days from the time it was dumped it was on fire. Now, that danger makes the storing of coal on the surface and exposed to the atmosphere almost impracticable, Storage Under Water What is the next solution? It has been proven by experi- ments that you can store coal under water for as long a period as five years with only a loss of about one-half of 1 per cent. By doing so you will avoid both things that you will encounter by storing the coal on the surface. That is a pretty big order to store coal under water but it is also a big order to have the country short of fuel for one period of the year, and if we have the solution, we have over- come a great problem. Nature teaches a lesson. For a hundred thousand years nature has stored coal under the ground. That is the reason we have the valuable coal today, and we have that lesson from 694 PROCEEDINGS OF AMERICAN MINING CONGRESS nature. Now the question comes if you have no other remedy than storing coal under water, you have to make provision for the pumping and keeping it covered with at least six inches of water, and you can store your coal almost indefinitely and retain practically all of the valuable coal. Who Will Pay Cost? Well, upon whom should that burden rest ? Should that bur- den rest upon the operators of the coal mines ? Should it rest upon the miners ? Or should it rest upon the nation ? Of course, you cannot hope to store coal in that manner without expense, because it will cost large sums of money, but it would be worth it. It would stop dissatisfaction among miners ; it would prevent operators from losing interest in the mines because of the fact that they could not run the mine for a portion of the year. Consequently we are driven to the con- clusion that the only practical solution for the problem is to arrange for the storing of coal in the summer and distribute the cost upon the whole nation. In other words, the public ought to bear a share of the responsibility and burden and not expect that either the miner or the operator could possibly undertake to invest all that is necessary to store the coal in such a manner as that. I need not go into a lot of chemical equations as regards the gases evaporating from coal stored on the surface. Experi- ments give all those figures. It is sufficient to say that the coal deteriorates very rapidly in value. I have thought upon this subject. I have talked to experienced men and have read all the literature that I could possibly find, prepared by men who have conducted experiments along those lines. All seem to come to the conclusion that the only safe and sure way is to store coal under water. That is being done today in more than one European country, and I think what can be done there can and, if the need arises, ought to be done in this country. Very Slight Loss from Storage If it is true that coal stored under water will not lose more than one-half of 1 per cent, of its value in five years, then it is a very easy equation to find out how much it would lose in six STABILIZATION OF COAL MARKE V THROUGH STORAGE 695 months. It would lose only one-tenth of that that is, if the evaporation goes on at a given rate, and I understand it does. Gentlemen, we are face to face with a grave situation, and I would be sorry to have this American Mining Congress send resolutions up to the Congress of the United States asking for laws dealing with this subject, unless those laws were of a practical nature and based upon fair play and justice to every party concerned in the coal business. We must do that. Take into consideration the number of mines we have in Illinois alone we have something like 943 coal mines in Illinois, and of those there is not 5 per cent, that work continuously throughout the year. Some work more than others, and generally it is the mines where they have valuable veins of coal. These mines have all the advantage over the others. They do get some work during the summer time, for railroads must have coal. Other industries and the public generally do not require much coal during the hot weather, but the railroads and street car lines which have to produce electricity require a continuous supply, and the consequence is that the producers of a very high-class coal have the advantage during the summer time. Selling on B. T. U. Basis I am not so sure that the time will not soon be here when all coal will be bought and sold on the B. T. U. basis that is, sold at a price regulated according to units of heat that the coal contains. I have mentioned that fact before an audience and received a retort like this : "Hold on there, you belong to the southern part of the State. You are advocating a business that would insure the southern part of the State continuous work. Where the mines have a low B. T. U., business would be shut down altogether." I do not think so. I think the mines in the southern part of the State where the B. T. U. runs very high would probably have the class of trade that demands a high grade of coal. Probably where they use it only for heating houses they would not necessarily require as high- class coal as that, probably on the mistaken notion that the best coal is the cheapest. It is if used under certain conditions. If used in an open grate, it is not. 696 PROCEEDINGS OF AMERICAN MINING CONGRESS Plan of Stabilization Now, then, if we could devise means of co-operating to have the coal stored during the summer under conditions by which it would not deteriorate or lose its value, and then have that coal sold on a B. T. U. basis, we would be able to stabilize the coal mine. We would not have so much fluctuation in the trade. We would not have a surplus one month and a coal famine the next month. We would have a continuous supply and would be able to maintain a standard quality all the time. I hope I make myself clear. I am not going to say that we will ever be able to stabilize the different classes of coal for different purposes, but the public will gradually learn that it is not to its best interest to compete in the purchase of coal with those large consumers who have valuable engines and valuable plants to run and require the best coal for the reason that they get more power from it. But for the purpose of supplying heat for dwellings I do not suppose we will ever be able to standardize it. The public will soon learn that it is to its advantage. If we can finally have a system of having the coal sold on the B. T. U. basis and having the coal stored in such a manner that it will not deteriorate and prevent the possibility of loss through fire, we will at least have stabilized the coal market throughout the whole year. Having done that, we will remove to a very large extent this discontent among the miners. I can easily understand why a man should be discontented, and I think if he finds that the shortage of work is continuing year after year and no one taking any interest in the matter, it is natural that the man should become chagrined and a revolutionist in spirit. He has a right to expect that the Gov- ernment is going to protect him to a certain extent in cases where he is unable to protect himself. It is the Government's duty, and it is his free-born right, the American right, that the Government should take some interest in his case ; and if there are circumstances over which he has no control, over which the operator has no control, then it becomes the duty of the public generally, and the nation as a whole, to get some system that will obviate all this suffering, all this uncertainty, and consequently all this expense. STABILIZATION OF COAL MARKET THROUGH STORAGE 697 Strike Loss Would Pay Storage The nation is losing more money now, every day, than is needed to make some very large provisions for the storing of coal. The public will bear their share of the burden, which they must necessarily do if they want to derive any benefits from the introduction of a system that will provide coal for the country. Look around the country and notice the large amount of mineral wealth that nature has provided for the good of men. You can get a fairly clear perception of that by looking at some of these minerals we have on display at the exhibition. The wealth has been put there by a beneficent nature, and it is the duty of every man to try, if possible, to wrest from nature the secrets of that wealth. How are we going to do that? Are we going to do that by continually having such fights as we have at the present time, or are we going to allow a man who knows the secrets of nature and has made them his life study point the way for others? One fact stands out pretty clearly, and that is that nature has provided abundance for all ; and man is heir to all that wealth, but to obtain possession of it he must combine his forces. That is, the man, the thinker, the philosopher, must study those questions, and he must teach others. That is why we have this exhibition to let others not intimately acquainted with the conditions under which this wealth is obtained see and understand. If we are willing to combine and co-operate, one with the other, in spite of the fact that nature guards her secret wealth, it is ours to take if we will only adapt ourselves to nature's conditions. No Substitute for Coal So far as coal is concerned, it seems that we have not yet reached the age when we can find a substitute by taking the electricity from the air, that would be a substitute for coal, or taking heat from the atmosphere. We have not reached that yet. My opinion is that some day we will. So we have to deal with coal. We have abundance of coal, more than is necessary to supply the wants of civilization for thousands of years. Are we going to allow the fact that storing tanks will cost money to stand in the way of the best interests, the health and longevity of the nation? Can we afford to do that, 698 PROCEEDINGS OF AMERICAN MINING CONGRESS while at the same time we drive women and children to death, or, at least, serious injury, by starvation? Surely if the nation's wealth depends upon the people, and it does to a large extent, we ought to be willing to face this issue squarely and ascertain how much it will be necessary to spend in the way of storing to provide the nation with coal during the year. I make these suggestions, Mr. Chairman, at this meeting, but I do not choose to go into details in regard to storing coal at this time. I have the details on paper at home and will put the facts in the hands of this Congress if desired. Will Public Co-operate? One thing stands out clearly. In this present labor issue we have numerous complaints. Some have complained against the operators for bringing the country to this condition. Some have complained bitterly against the miners, and, generally speaking, both the miners and the operators are receiving the criticism of the public on this question. I want the public to take the question home to themselves. Are you prepared to share in the responsibility and face this issue squarely and assist both operators and miners in devising some method of relief? The public can assist and the miners, operators and men of science will find a way to do it if they are supplied with the means. There is no question but that the only way to stabilize the coal market is by storage under a system whereby our supply will be free from deterioration and free from the danger of fire and total loss. Storage should be in the most economical manner, though storage will never be as economical as delivery direct from the mine. Necessarily there must be some cost in handling and storing. The public must bear its portion of the weight and responsibility of this system. We must find relief from present conditions, other- wise the nation generally is going to suffer, and we have no right to inflict suffering upon others. We should face our responsibilities. Each of the parties to this contract will have to co-operate with the other; each take a responsibility and remember that it is a duty to humanity and a duty to them- selves. I thank you. [Applause.] STANDARDIZATION OF COALS FOR THE TRADE 699 STANDARDIZATION OF COALS FOR THE TRADE A Paper Read Before The American Mining Congress by GEORGE S. RICE, Chief Mining Engineer of the U. S. Bureau of Mines The problem of standardizing different kinds and grades of coal produced in the United States has become more and more important with the increasing railroad facilities, up to the time of war congestion, bringing coals of distant districts into local markets. This has been accentuated by the growth of the ex- port trade during the war, with prospective greater growth from post-war conditions in Europe and other parts of the world. In the early days of coal mining it was the custom for the miner to fork the coal in loading, leaving the small coal in the mine, so that it was comparatively easy for the miner to free the coal from extraneous impurity and the responsibility of clean coal was his. Later, with industrial growth in this coun- try, when the small coal and slack was found to be valuable for steam-making, the coal was shoveled up and more or less slate and sulphur with it; then to obtain good coal for shipment it was necessary for the operator to clean the coal when it reached the surface by installing picking and washing methods. Hence the quality of coal from any one mine varied widely with the degree of care taken in the cleaning process. Then in the markets receiving diversified kinds of coal there followed an increasing use of sampling and analyses, not only to distinguish volatile-fixed carbon ratios in different kinds of coal, but to determine if a particular shipment was up to an agreed quality standard. To a small extent, purchases were made based on the ulti- mate heat content of the coal as indicated by the B. T. U. deter- mined for a unit weight of coal, the price being based on an agreed amount of B. T. U. with special penalties in case the sulphur and ash exceeded certain specified percentages. This plan is specially advocated by purchasers and operating engi- neers of large plants whose business it is to transform as much of the heat in coal into available power or heat produced and 700 PROCEEDINGS OF AMERICAN MINING CONGRESS as cheaply as possible. To obtain the cheapest heat units is usually an inducement to install special furnaces and devices for burning the lower grade fuels. To discover which coal has the possibility of being cheaper in producing heat or power units, the consumer must know the average B. T. U. content of that coal and adapt his methods to that fuel. However, this plan was not generally accepted by the coal industry. When profitable sales can be made without yielding to restrictions there is little inducement to submit to what may be considered a refinement. There is also difficulty in obtaining truly repre- sentative samples and such work cannot be done without cost, so that most consumers have relied upon inspection and the good faith of the mine operator and knowledge of the kind of coal his mine or mines produce. Usually purchase on a specification basis has prevailed only for very large purchasers buying on the open market and for Municipal, State and Government organizations where bids were received from either jobbers or producers and where dif- ferent kinds of coals from different localities might enter into the bidding. Systematic Sampling A method of systematic sampling and making analyses was found to be highly important in obtaining the high quality of coal which is vitally necessary for the ships of the navy. Coal for this purpose must be of such volatile-fixed carbon ratio as to be practically smokeless and the ash at a minimum to obtain the maximum efficiency of the boilers, and hence speed and radius of cruising of the vessel. The navy specifications were so drawn as to obtain the necessary tonnage from any given district and of the highest grade that the district could supply. For the purchase of coal for the Panama Canal similar require- ments were made, inasmuch as fuel carried so far must be as free from inert or waste material as possible, since otherwise heavy freight charges must be paid on worse than worthless weight. Advantage of Private Contracts By private contracts the fast ocean liners obtained "picked coal" from specific collieries of responsible operators, which STANDARDIZATION OF COALS FOR THE TRADE. 701 would insure the coal being of the very best grade. This system works out admirably for getting high-grade coal of a particular kind. When it is necessary to purchase coal from the open market or by submitting proposals for bids, then it becomes very important that there should be some method of standard- izing by specifications. This became particularly apparent during the war when the various local coal markets were badly disturbed through the changes of routing of coal and the formation of zones of dis- tribution of the nearest coal fields, primarily for more expedi- tious transportation of the coal where it was needed and short- ening the circuit of the railway cars. Then there being no standards under such conditions, the result was, as widely known, that careless, irresponsible or unscrupulous miners and operators permitted a large amount of refuse matter to be loaded with the coal, so that it was estimated by the fuel admin- istration agencies that the coal production included at least 10 or 15 per cent, of avoidable waste material, which meant mil- lions of tons of refuse were transported and clogged the fur- naces. It was aimed to meet this condition in the latter part of the war by the establishment of an inspection system with arbi- trary powers, but the mere visual and scattered inspection by comparatively few inspectors was not satisfactory and in im- portant cases recourse was always had to careful sampling and analysis of delivered coal. Methods of Sampling and Analysis The conception and point of view of sampling and analysis as practiced up to about 15 years ago gave little clue to the quality of a particular kind of coal. Its usefulness was con- fined to determining the ratios of volatile matter to fixed car- bon, moisture, ash and sulphur contents, but even these ratios and determinations were uncertain because of a lack of stand- ardization in the methods of analysis. The greatest discrepan- cies arose, however, from the way the samples were taken. It was customary for operators when asked about the composition of their coal to have analysis made of a selected piece of the best coal, and this went so far that one of our principal coal- mining States, undertaking to obtain a complete record of kinds of coal mined by all the different mines of the State, had 702 PROCEEDINGS OF AMERICAN MINING CONGRESS the mine inspectors send in samples without any specifications as to how the samples were to be taken. Naturally under these conditions they selected small hand specimens of the best look- ing coal, and a bulletin was published which gave pages of analyses that are practically of no value because they do not in any way represent the whole seam of coal either as in the bed or as mined and shipped. The technologic branch of the United States Geologic Survey, which branch later became the nucleus of the Bureau of Mines, undertook at the time of the St. Louis Exposition in 1904 to find out if the quality of coal as obtained from a colliery could be determined by systematically sampling in the mine, where the sampler, in taking a sample of the coal bed, from top to bottom, undertook to include or exclude slate, sulphur and clay partings in the same way that the miner would include or reject the same. Such sampling came very much nearer to represent- ing the kind of coal being mined than had been done previously, but upon comparing the analyses thus gathered with the analyses of the coal on cars which were shipped from the same mines to the exposition for testing it was found that, if the ash in the mine sample was represented by unity, the ash in the car samples varied from 1.35 to 1.80 that is, in the worst case, almost twice as much as in the samples gathered, with the par- ticular intention of duplicating the impurity included by the miner. Assuming that the car samples were truly representa- tive of the coal, and in this case there was excellent opportunity for proper sampling because the coal passed through crushing machinery, it meant that sampling the coal in place at the mine, no matter how carefully and systematically done, could not represent the coal that was shipped to market, and this conclu- sion has since frequently been reached by similar kinds of tests by the Bureau of Mines and other agencies. It is always understood today that such analyses of mine samples must not be considered as representative of the coal as shipped. The value of such mine sampling is to determine the true ratio of the component parts of the coal in the bed and the best possible result which might be expected with practically perfect picking and cleaning methods. The impurities which are added in loading are not altogether due to intentional inclusion of foreign particles with the coal, STANDARDIZATION OF COALS FOR THE TRADE 703 but in a great degree, especially in certain mines, ore due to the accidental or unavoidable inclusion of pieces of draw slate and roof material which have fallen into the coal as shot down, and also in the process of loading the shoveling up of under clay or floor slate, partings and bone coal. Again, in pulling pillars, the partings often become so crushed and mixed in with the balance of the coal when mined that picking them out while shoveling is impracticable. It must not be understood from what has just been said that mine sampling is not useful. Systematic mine sampling has been found to be of the utmost value in the conduct of the mines. It enables the operator to determine from what part of the mine poor-grade coal may be expected, and the analyses furnished, when contrasted with those of samples from the coal prepared for the market, give information as to the efficiency of cleaning or washing methods employed. It has also proven of use to the user in setting ideal limits and furnishing a basis for comparison of coals from different districts. The foregoing conclusions have virtually forced themselves upon every coal engineer, and thus it becomes necessary where sampling and analysis is to be of guidance in shipped coal to determine where and how samples may be obtained which will be truly representative of the coal in any particular car or shipment. ^ Wide Variation in Quality It is well known to coal-mining men that the quality of coal varies widely in each pit car or mine car, due to where the coal comes from the mine, the care of the miner who loads it, and whether the load is chiefly of lump put on the car by hand, or small coal shoveled up from the floor, or machine dust known as ""bug dust." The latter may have come from cutting in a bone coal or in a clay band. Therefore, no two cars are quite alike, and the variation is wide where miners are found who will with intent put in sulphur balls or slate in the bottom of the car and cover it over with coal. In a large mine this situation tends to equalize over a whole day's rim, but, on the other hand, it generally cannot equalize in loading a particular railroad car, because, as is the case at most mines, there is no interposing large storage bins, and a trip of cars brought to the foot of a 704 PROCEEDINGS OF AMERICAN MINING CONGRESS shaft may come from a particular branch or entry where either good coal or exceptionally poor coal is loaded. Hence any two railroad cars may vary widely in their quality. Again, in a train of cars the average of the mine may be maintained very well, but the small buyer has to form a judgment from the coal in only one car. How Shall Sampling Be Done With these difficulties in mind, how shall the sampling be done? It is perfectly evident that a sample which does not truly represent the coal should not be analyzed. The Bureau of Mines has on many occasions refused to analyze samples, where it is doubtful that the sample was representative. One method of getting a representative sample would be to take a very large number of small grab samples to form a gross sample. By the theory of chance, a sufficiently large number of samples if gath- ered from different points would give a correct average result, provided each sample was taken by pure chance throughout the mass of broken coal and no systematic errors of selection intro- duced. Mr. 0. P. Hood, Chief Mechanical Engineer of the Bureau, reports, as an illustration of the tendency of large numbers of observations to indicate a true mean, that the Bureau has had occasion to compare the results of such sampling of two quantities of coal, each aggregating something over half a million tons. A very large number of samples and analyses entered into these series. One set was taken by methods ap- proved by the Bureau, while the other set was taken by methods which were far less satisfactory. The variations in the poorer set were erratic and considerably more than in the approved set. The average heat value of the two sets, however, checked almost exactly. This indicates that where a sufficiently large number of samples are taken the average approaches a correct value. Another method would be to treat the whole shipment as a gross sample, crushing, mixing and reducing, as is the practice with valuable ore. It is perfectly obvious that for any given shipment neither can an unusually large number of small sam- ples be taken, nor can the whole shipment be treated as a gross sample. An abridgment of these methods must be used. A large amount of work has been done by the Bureau's Fuel STANDARDIZATION OF COALS FOR THE TRADE 705 Division, in charge of Mr. Hood, as well as by many private agencies and technical societies in determining the proper pro- cedure in the sampling of shipped coal and the standardizing of analytical work. Finally a joint committee of the American Chemical Society and the Society of Testing Materials, on which Bureau representatives served, have agreed on standardizing methods after painstaking investigations and these have been published (1916) by the latter Society as "A. S. T. M. Standards." Space will not permit inclusion or discussion of these stand- ards in this paper, but the underlying principle of coal sampling may be stated as follows : The amount of gross sample and the size to which it must be crushed are determined by the size of the largest piece of im- purity. In general, when samples aggregating not less than one thousand pounds are collected by equal increments, varying from 10 to 50 pounds each, depending upon the size and char- acter of impurities in the coal, results are obtained of sufficient accuracy to represent one or two thousand tons. As stated by Mr. Hood, the problem is one of taking a suffi- cient number of increments to accumulate a gross sample of representative character. It is very difficult to select samples without some systematic error, except when the coal is being handled from one container to another, and it is at such points that sampling should be done. Three Kinds of Cases Summarized, we have three kinds of cases : First, where a trainload of coal may go to a pier for loading a ship for the navy or for export. Such coal for tidewater is usually loaded in dump bottom cars and this affords an oppor- tunity for taking many small samples in the process of dump- ing each car. In the second case, we have an individual car shipped to a manufacturing concern, power plant or office building. To properly sample a single car is a difficult proposition. It should be sampled while being loaded or while being unloaded. To sample it after delivery has often been done, but with unsatis- factory results. Various devices have been proposed and tried, such as driv- 706 PROCEEDINGS OF AMERICAN MINING CONGRESS ing down a pipe into the car or a pile, or using an auger within a pipe. These devices have not proven satisfactory, as most of the sample comes from the upper part of the pile ; while ap- proximate results can be obtained with nut and slade coal, these devices could not be used for lump coal. One of the best plans of sampling at the mine is to install an automatic sampler in the loading chute. Mr. Erskine Ramsay, the well-known mining engineer and operator, of Birmingham, Ala., has devised one which he has installed at a number of mines, and which he informs the writer has been of the greatest value in maintaining the quality of coal shipped and at small cost. For sampling of cars the writer has this sugges- tion to make: Since at most modern mines and most coal yards electric power is available, a power-operated boring tool should be employed in coal boring, which would permit a section- ing of the coal from the top of the car to the bottom, and also by being able to drill through lumps, as well as through smaller material, samples could be gathered which it would seem would be more truly characteristic than to attempt to pick out and crush down large individual lumps. Such a device might consist of a revolving bit projecting through a pipe with a special auger to bring up the cuttings. The cutting edge should have the same diameter as the exterior of the pipe inclosing the auger. Several such borers might be set up on a movable framework over the track at a distance from the tipple or loading house, so as not to interfere with the loading, the sample being taken while the car is momentarily held. Large consumers of coal might similarly equip the track leading into the coal storage yard. The sampling of lump coal by the method of taking out a certain proportion of large and small pieces involves the crush- ing down of one part in two or three thousand, and the expense through sampling in this way is considerable. In sampling a carload of the usual lump coal mixing and halving could pro- ceed until probably one ton was obtained, when crushing to 4-inch would have to follow, and to one inch at the next halving. There would be a degradation in size of about one part in five thousand of the lump coal, which would have to be charged to the cost of sampling. To do the work cheaply and efficiently mechanical means should be provided. STANDARDIZATION OF COALS FOR THE TRADE 707 Factors Determining Quality There are, of course, other factors in determining the quality of a coal than that shown by a chemical analysis, such as its friability. Often complaints are based on the quantity of fines present rather than the percentage of ash or its calorific value in B. T. U. Again, a coal may be satisfactory for a low tempera- ture house-heating furnace while it may clinker hopelessly in a steam boiler furnace, so that ash fusibility must be added to the ordinary "proximate" analysis to make the story more com- plete. Simple analysis does not tell the story of whether a coal is a good coking coal or a suitable gas coal, but here knowledge of the district from which the coal comes determines this be- yond question. While fully admitting the necessity of this prior knowledge, it does not seem to the writer possible to main- tain the standard of any particular kind or variety of coal with- out good sampling accompanied by inspection to determine (so far as visual inspection will permit) the proportion of fine coal to coarse, the inspectors judgment being checked from time to time by screen tests of considerable samples. Certainly visual inspection alone is not satisfying as an ulti- mate basis for coal classification. As stated by Mr. Hood, there are two classes of information about coal the one depends upon observation, judgment, and opinion of individuals, having more or less experience. This is difficult to duplicate, to ex- press in satisfactory terms, and is an insecure foundation in case of disagreement. The other depends upon physical facts, expressed in figures, which can be duplicated and verified, and when properly done, is independent of personality. Neither of these methods is complete in itself; neither tells the whole story. Even when both are available and well practiced, the value of a coal is not completely disclosed, since practical ex- perience in using the fuel is needed to supplement the other information. Granting the shortcomings of the several meth- ods, only that one most free from the human element is satis- factory as a basis of standards of classification. This means some form of sampling and analysis. Export Business The necessity of utilizing to the fullest extent the number of railroad cars and the shipping facilities during the war led to 708 PROCEEDINGS OF AMERICAN MINING CONGRESS the formation of the "tidewater pools," into which coals of a similar quality could be gathered, so that approximately the same kind of coal might be quickly available for a vessel load- ing for foreign trade. It is highly important that the coal in these pools should be fairly well standardized, as in this case the coal may come from a mine where great care is taken in picking and loading, or from another mine in which careless- ness is shown, although the coal itself may be all right. To meet this condition the right sort of sampling should be done, and the producers should be paid according to the quality of coal furnished. Also there should be certain limits of quality, or the coal should not be permitted to be dumped in the par- ticular pool, as it would jeopardize the standing of the coal of that pool. The dumping of poor coal into certain pools actually occurred during the war. Since the armistice the restrictions have been further removed, so the unsatisfactory quality of the respective pool coals has been the occasion of open comment by foreign buyers and admitted by those familiar with the facts. In spite of this, more than one-third of the coal exports are said to pass through pools at this time on account of this advantage. The only alternative is the assemblage of a large number of cars from a particular mine or group of mines of the same producer until a vessel is available. This procedure, however, ties up the railroad cars, and, as often the coal vessel is not on hand at the time the coal is assembled, or vice versa, leads to heavy demurrages; but it is used by leading exporters to protect the name of their coal. If reasonable standards could be maintained the pooling system is logically the best method of handling the export business, and the question arises as to how shall the standardization be maintained by sampling, or by mere visual inspection, which has proven in the past to be inadequate. The problem is a serious one at the present time and deserves consideration of both producers and buyers. One suggestion that has been made by the Fuel Division of the Bureau is as follows : Mines to Set Standards It is proposed that each mining company set its own stand- ard of quality consistent with the particular vein, preparation STANDARDIZATION OF COALS FOR THE TRADE 709 and market which the business affords, and that the Govern- ment shall publish such standard and certify as to whether it is being maintained by the mining companies. Such work would not replace inspection by the mining companies. It would not certify as to the quality of each and every shipment, but it would inspect and sample at irregular intervals a sufficient number of cars of coal as shipped to indicate whether the declared standard of the mining company was being main- tained. Mines entering the system would be privileged to advertise that their product was from a mine w r hose standard of prepara- tion was certified to by the Government. In case coal ship- ments were sub-standard the mine would be advised of the fact. If the condition continued, the facts would be given publicity and the mine, to retain a place as a certified mine, would be required to declare a new and different standard and one which its product could meet. Operators of mines entering this system would agree to allow shipments to be sampled en route at thoroughly equipped me- chanical sampling stations, and stand any added expense of transportation and handling incident thereto. All analyses would be published from time to time, giving accurate informa- tion about American coals. Mines need not come into this system, but there would be manifest advantages in being on a Government-approved list, which would gradually increase the number using the service. Frankly, the writer's only excuse for venturing into this old field of controversy, Sampling vs. Inspection, is first, because he was invited by the officers of your Congress; second, be- cause of his interest as a member of the Bureau of Mines in this new departure of our country in entering into extensive overseas export of coal. Export Business Would Help Industry It is believed that a large export business will greatly assist the coal-mining industry of this country and at the same time help our allies, France and Italy, especially in their real need, as well as help our South American friends and neutral coun- tries so far as can be done with the scarcity of shipping. This is a time when Great Britain's export trade is nearly prostrate 710 PROCEEDINGS OF AMERICAN MINING CONGRESS through curtailment of the hours of labor in the mines under the Sankey award, and Great Britain can only maintain a limited export to its former clients by depriving its own people of full supplies of fuel. It is thought that the export business peak load will come in the spring and summer months, and in this way help our miners to get more days' work in a week, and thus help solve a problem for next spring and summer. This will not alone benefit the Eastern mines, but also the Middle West mines by relieving the pressure from the East. Must Maintain Export Standard But to give satisfaction to our foreign friends we must main- tain the quality and reputation of our coal, and unless we do maintain our standards we are going to lose export business which should naturally be ours with the building up of a great shipping industry. Moreover, we all have an interest in seeing that these ships are kept busy when the full program of ship construction makes us the greatest maritime nation. Raw coal export permits the extension of trade generally, as instanced by Great Britain's former splendid export business. The necessity of standardizing our coal for export is not a theoretical consideration; even with our present small export trade we have already had to apologize for shipments which have been made. The Bureau has been invited to straighten several bad cases ; therefore, how about the situation when our export of coal in- creases ten-fold? Old reliable coal exporters are as much affected or more than new-comers in the business, because while their particular coals are kept up to their standards other American coal, if no control is exercised, would cast a stigma on all. As Director Manning of the Bureau has told you, the Bureau will gladly assist the coal-mining industry in standardizing its coal for export, and likewise for business at home when there is a demand for it ; but the former calls for immediate action if The American Mining Congress can carry forward to fruition its proposal for an export coal corporation to embrace, so far as they are willing, all exporters of coal. PRICE FIXING BY THE U. S. FUEL ADMINISTRATION 711 PRICE FIXING BY THE UNITED STATES FUEL ADMINISTRATION By EDWIN LUDLOW, Consulting Engineer, New York City In abnormal times such as produced by the war price regu- lation of the necessaries of life is required, but such regula- tion should be constructive and not restrictive, and so arranged that when the necessity for such regulation no longer exists the laws of supply and demand may again assert themselves without financial embarrassment to the industry or unneces- sary expense to the consumer or dealer. During the latter part of 1916 and early months of 1917 there was a shortage of bituminous coal, due to the unusual demand of all industries keyed up to a maximum production of war materials. This caused a runaway market, when con- sumers by bidding up the price of coal brought on a demoral- ization in the coal-using industries. In May, 1917, a committee under the chairmanship of Mr. F. S. Peabody, and with Secretary of the Interior Lane as a member, had numerous meetings with operators representing the coal-mining industry of the whole country, and on June 29, 1917, announced an agreement between the committee and the operators fixing a tentative maximum price throughout the country for bituminous coal of $3.00 per ton at the mines and 25 cents per ton selling commission. This plan was based on the idea of fixing a maximum price high enough to greatly stimulate production and yet one that would protect the manu- facturers from the excessive prices then being charged, and without violating the laws of supply and demand, thus per- mitting the industry to readjust itself when the emergency passed without loss or disruption. Opposed by Departments This plan, while welcomed by the operators and the con- sumers at large, was violently opposed by certain Cabinet officers whose departments were large users of coal, and finally, on August 21, 1917, prices for bituminous coal were announced by the President varying from $1.90 to $3.25 for mine run in 712 PROCEEDINGS OF AMERICAN MINING CONGRESS the various districts. These prices, and also to a large extent the opposition of the Cabinet officers, were due to misinforma- tion furnished by the Federal Trade Commission, which, without expert advice and with meagre data obtained mostly from a few of the low-cost coal companies in each district, upset the broad constructive policy of the Lane-Peabody Committee and placed a large percentage of the operators in the position where they must produce the fuel under a pecuniary loss and have only the glory of a patriotic duty performed to reward them. As these prices could not stimulate production and bring the fuel the country needed to successfully carry on the war, on August 23, 1917, Dr. Harry A. Garfield was appointed by the President Fuel Administrator, with full power as to all fuel that was conferred on the President by the Lever Act, approved August 17. From this date until January, 1918, numerous revisions and adjustments of the President's prices were made in the hope of increasing output, but no general verification of costs was attempted. Bringing Order Out of Chaos Early in January, 1918, the Engineers' Committee in the Fuel Administration was formed, and the whole coal-mining industry owes a vote of thanks to Messrs. Guernsey, Norris et al. for their great work in bringing order out of chaos and devising a system for carrying out the Lever Act to give to producers a reasonable profit above their cost. Mr. Norris has given in his paper, read at the Colorado meeting of the Insti- tute of Mining Engineers in September, 1918, a full account of the method of arriving at the cost in each district and the graphic method of showing the same, so that the engineers were able to draw a line representing the price necessary to make 90 per cent, of the tonnage mined in that district return at least the cost of operation, and to that was added by Dr. Garfield the profit as authorized in the Lever Act. The method adopted, while fair to the operator, was at the same time in violation of the law of supply and demand. Coal containing a high ash and of inferior quality was given a selling price higher than coal of a better grade formerly sold in the same region, and to further regulate and prevent the demand being for the high-grade coal at a lower price a zoning PRICE FIXING BY THE U. S. FUEL ADMINISTRATION 713 system was inaugurated to restrict the distribution. The result came when with the sudden ending of the war in Novem- ber, 1918, and the withdrawal of the zoning system and price restrictions, some dealers found themselves loaded up with inferior coal at a high price, while their competitors who had not purchased large stocks were enabled to obtain and sell a better coal at a lower price. This represented large losses to many dealers, and all of these troubles would have been obvi- ated if the Lane-Peabody agreement had been allowed to stand. How near right that agreement was was brought out by Mr. Norris at a meeting of the Washington Section of the Institute of Mining Engineers when he stated that averaging the costs and fixing the prices in all the bituminous fields of this country the average came within 25 cents of the figure named in that agreement. In the anthracite field the price fixing was made by Presi- dential order on the 23rd of August, 1917, the day Dr. Garfield was appointed, and with the exception of a reduction in the price of pea coal, and two advances granted on account of wage increases, no changes were made. The Engineers of the Fuel Administration took up the anthracite field following their work in the bituminous, and Mr. Norris has written a full account of the method used in a paper read before the Ameri- can Institute of Mining Engineers in February, 1919. The fixing of the prices by the President followed the prices given in the circulars issued by the large companies with one important change, that the individual operator was continued the right, granted in June by the Federal Trade Commission, to charge 75 cents per ton more for the prepared sizes than could certain large mining companies whose names were pub- lished. This on the ground that these companies either con- trolled or were controlled by the railroad companies who han- dled the output of their mines. If this was, as stated, because these companies could make up their losses from their rail- road earnings, the argument falls, as the railroads were taken over by the Government, and any claim that rates charged on anthracite were exorbitant was not borne out from the fact that nearly the first act of the Railroad Administration was to raise these rates 25 per cent, where the advance was paid by the consumer, and from 100 per cent, to 700 per cent, when it 714 PROCEEDINGS OF AMERICAN MINING CONGRESS was switching work at the mines that had to be paid by the coal company. The complication of 25 per cent, of the tonnage being shipped at 75 cents per ton higher than the 75 per cent, shipped by the large companies added materially to the work of fixing prices for the dealers who bought from both sources of supply. As a matter of fact, a large proportion of this 75 cents was absorbed by the dealers in spite of all efforts of the local Fuel Administrator to adjust the delivered price to the consumers. First Trouble The first real trouble to the operators came with the advance given to the miners on December 1, 1917, in the form of a war bonus ranging from 60 cents to $1.10 a day for laborers and 25 per cent, for contract miners. The estimate made by the companies was that the labor increase alone amounted to 45 cents per ton, and allowance should also be made for the in- creasing cost of supplies and switching charges. The Fuel Administrator, however, would allow only 35 cents a ton to be added to prices of all sizes. Subsequent checking of the actual results showed that the cost had been increased 76 cents, and the operators were, therefore, out 41 cents per ton. New Wage Demand The demand for more wages from the miners became very insistent in the latter part of 1918, due to a large extent to the high wages paid in the shipyards and munition plants, and especially on the railroads whose employees were in daily touch with the miners, and on November 1 a second war bonus was granted, and as the engineers of the Fuel Administration were then functioning, this advance was plotted out to amount to 75 cents per ton on all sizes; and as it was felt the steam sizes could not stand this increase, the amount was placed entirely on the prepared sizes at $1.05 per ton. No allowance was granted for the deficit in the former allowance, nor for the continually rising cost of supplies, although this information was all placed before Dr. Garfield by the Engineers' Committee, and his attention called to the fact that 60 per cent, of the anthracite tonnage was being mined at a loss when selling expenses and interest on investment were considered. PRICE FIXING BY THE U. S. FUEL ADMINISTRATION 715 When the Fuel Administration on February 1, 1919, turned the anthracite industry back on its own resources, Dr. Gar- field made the statement that the advances given had not been sufficient, and that if he had remained in office he would have had to give an advance of 50 cents per ton to save from financial embarrassment many of the companies who had patriotically continued to mine coal at a loss. The anthracite industry was in a very serious condition. The urgings of the Fuel Administration had caused consumers in the territory to which anthracite was restricted to put in two-thirds of their winter's supply in the summer and fall. The extremely mild winter had not made it necessary to burn the usual amount, and the two-thirds supply was found sufficient to carry the householder through to spring. The closing down of many munition plants had released large quantities of bituminous coal, and the demand for the steam sizes of anthracite fell below the amount produced even with the broken time that became necessary. Labor and material costs were at a maxi- mum, and labor was resting from the strenuous work during the war and taking life quite easily, doing as little as possible in order, as frankly stated, to have the mines get out their weekly allowance of coal in four days instead of three. Solving the Problem The recommendation of Dr. Garfield that 50 cents should be added to the price was made at a time when there was very little demand for coal at any price. The markets to which anthracite had been restricted were filled, and the West and Northwest, usually good customers, had been barred from re- ceiving anthracite and were stocked with the best substitutes they could get. The anthracite men did the only thing left for them to do. Instead of making the usual reduction of 50 cents per ton for stocking expenses on April 1, and taking this up at the rate of 10 cents per ton per month to the first of September, they made the April price the then winter price, and have added 10 cents per ton for five months, until on Sep- tember 1 the price reached what Dr. Garfield said his examina- tions of the October before showed him it should be. 716 PROCEEDINGS OF AMERICAN MINING CONGRESS Operators Hard Hit How hard the anthracite was hit by the price fixing is shown in the testimony of Mr. W. T. Thompson, secretary of the Individual Operators' Association, before the Senate Investi- gating Committee. He stated that 60 per cent, of the indi- vidual operators had reported costs and revenue from January to July of this year, and that the average of them all was a loss of 32 cents per ton. We have come to another era of price fixing, and while the present emergency warrants a price regulation, it is well known and should be considered that coal cannot be produced as cheaply under the conditions of a nation-wide strike as when operations are normal; that expenses have to be met in such emergencies that would not ordinarily arise, and it would be only fair to those operators who by maintaining the great American principle of the open shop are able to keep the rail- roads and industries alone that they should receive fair remuneration, as without them we would be at the mercy of t{ie Bolsheviki, who are trying to turn this free American Government into a Russian Soviet tyranny. Judge Gary has received the commendation of the whole country for his fearless stand for the open shop ; and when the miners and the operators again meet at the conference table I sincerely hope that two things will be demanded before negotiations are opened first, that no agreement will be entered into that does not guarantee the open shop; and second, that before any labor union is entitled to sign an agree- ment for a whole industry it must prove its responsibility by incorporating and making that union responsible by law for the carrying out of its contracts. We are facing serious times that must be met by a united people, or we will find this country in the grip of that German invention, the Soviet rule, that delivered Russia into their hands, and by which they are now trying to sap the industrial life of the Allies, who defeated them on the field of battle. The American Mining Congress should prove its American- ism by stamping in the strongest terms its disapproval of the present rule-or-ruin policy of the labor unions. THE INDUSTRIAL CLEAN-UP 717 THE INDUSTRIAL CLEAN-UP By R. DAWSON HALL, Managing Editor "Coal Age" From our vantage point of today, we are apt to look back at the construction work of the early '90s with superior wisdom and a degree of condescension. We are little disposed to remember the general conditions of the country at the time the work of the '90s was performed. The standard of comfort was very much lower than it is today, and the houses which we now regard as being inadequate were in those days not so far re- moved in character from the best of those in the smaller towns adjacent. Mining villages were designed and erected by those same people who designed and erected the houses of the lumbermen in the wooded areas which surrounded the coal mines. Mining was in many cases the lumberman's by-product industry. He bought the land for the timber that was on it, and he then discovered that there was coal underneath the surface. Hoping that there would be a profit in its development he started up mines, the character of which he regarded as being as tran- sitory as was the main industry in which he was engaged. Early Conditions Indeed, in most cases this idea of the temporary character of mine working was well borne out. The operator usually opened the coal which appeared above the level of the streams, and so did not occupy the whole area of the tract in which the coal appeared. Long and deep ravines often cut into the body of the coal bed and made it necessary to make long detours on the outside and on the inside of the mine. As a result, there were usually long hauls on the outside of the mine and equally long hauls within, from the point of view of the state of the art of hauling coal in that early period of the industry. In those days the electric locomotive was only just making its appearance. In fact, the author of this paper was an engineer at a mine which installed electric locomotives in 1892, and was one of the pioneers in the introduction of this form of transportation. At other mines, mules sometimes in 718 PROCEEDINGS OF AMERICAN MINING CONGRESS single harness, sometimes in string teams of three or even more furnished the motive power. At that time the rails were quite frequently of wood, and nobody thought that it was necessary to remove the soft clay between the ties and replace it by good ballast. The grades followed the ups and downs of the seams. In consequence, it was only a short time before the mine had to be abandoned because the cost of hauling was prohibitive. The radius of action of these early mines was extremely re- stricted, but no sooner was one closed down than another sprung up in its place, for the mines of that early day, cover- ing such a small area, left opportunities for other develop- ments in the neighborhood. Early Process Wasteful Another reason why the area tributary to any one opening soon became exhausted was that in those earlier days it was customary to take out barely 50 per cent, of the coal. This wasteful process is not general now in the mines of the Eastern coal fields, though it is still practiced in Illinois and Indiana and in some other States. The earlier mines were all situated along the main lines of travel, though there were some important exceptions. As a result, it is impossible to go through the coal regions without being confronted by these relics of a former period of evolu- tion. Most of the old houses have not, as yet, condescended to efface themselves. They are still an eyesore to the public, and we will never get the average citizen to realize that there are good mining towns so long as all that he sees along those railroads which he exclusively travels are of the type that were constructed in and around 1890. There are villages of a totally different description which are to be found along roads that are not part of the arteries of travel. Some may only be seen by traveling in an automobile across several miles of desert. Some lie in the deep recesses of valleys and canyons, approached by grades so steep that no railroad would be constructed through them if it were not made for the sole purpose of removing the raw materials of the earth, such as minerals or timber. In such places no one would think of constructing a permanent through line. THE INDUSTRIAL CLEAN-UP 71 It is extremely unfortunate that the public is not able to see these villages, because they are more than ordinarily desirable for human habitation. Unfortunately, there is no personal need on the part of those who live along the main avenues of travel to make improvements in the houses in which their workingmen dwell, because it is always easy to get men where men are continually passing. Secondly, it does not pay to spend a great deal of money on a village that is likely at any time to be vacated, and therefore is apt to make poor returns on any investment which is made in the interest of its development. However, it seems extremely likely that without a large investment the little villages along the main lines could be made much more presentable than they have hitherto been, and what expense is involved in the change would be fully returned in the better character of the men thus obtained. That men can be secured without good houses is no reason why better men should not be sought by holding out the unquestioned lure of a better class of residence. Plea for Better Homes For the sake of the good name of the industry, and to pre- vent the charge of callous indifference, which is too often brought against those who are its leaders, something should be done to impress on the companies that own such villages that they hurt the fair name of the coal-mining industry and should for the sake of their fellow-operators inaugurate a clean-up campaign in which the houses would be painted and the ten- ants would be induced to make gardens and lay out lawns and keep the village trim and tidy. The unfortunate part of the problem is involved in the fact that many of the mines along the main line are working under such difficulties that only small profits can now be made from them. The hauls are long, the mines have been poorly laid out, the better coal has been extracted, the equipment at the tipple is not such as will produce the best kind of coal, and accord- ingly there are not funds available for any degree of ren- ovation, even though the investment would show a considerable profit, provided the mines ran with any degree of steadiness. Notwithstanding the fact that there are these difficulties, the attempt should be made to induce the operators of these main- 720 PROCEEDINGS OF AMERICAN MINING CONGRESS line mines to fall in with the other operators and put their villages in better shape. Unsightly Buildings In many cases there are old buildings which should be pulled down, especially around the mine tipple. It is remarkable how many mine dumps are still adorned by the unsightly gallows and broken-down trestles by which they were originally ex- tended. It is interesting to notice how many power houses have been partly dismantled. Whatever is not in use and is not likely soon to be put into use should be completely torn down and every effort should be made to level unsighly piles. A little paint on the tipple will often do a great deal to impress the stranger with the sense of the self-respect of the corpora- tion which is operating the mine and with the idea that here dwells a corporation that values a man's labor. In fact, it is interesting to note how many corporations that are committed to a policy of village beautification seem to desire alone to make the village a thing of beauty without making any attempt to start up their project by using a little of their money and their own effort in cleaning up about the plant. Welfare Work I am far from believing that the work of welfare should have no relation to the wife and children of the men employed. That is the most important part of the whole scheme, because the women, at least, have a greater esthetic taste than have the men, and are more pleased than are the men with any develop- ment in this direction. Nevertheless, it must be remembered that the men work a great many hours around the surface plant, and it is by no means a lost effort to make the plant, as also the houses, a place of pride. The co-operation of the men who are employed around the plant can surely be obtained as well at their own residences, for, after all, all the work that is done around the tipple toward such improvement is done in company time for which the man who does the work is well remunerated. One is justified, therefore, in asking him to work at making things neat and shapely whenever he happens in the course of the day to have a few spare moments. THE INDUSTRIAL CLEAN-UP 721 The Colorado Case Much of the censure which is brought against operators today is not for the condition of their own houses, but for that of those which their men are occupying as land tenants of the company or as house tenants of others or as owners in fee. The predecessors of the Colorado Fuel and Iron Company leased land to their men and permitted them to put up such buildings as seemed best to them. The temporary dwellings that these land tenants chose to erect were of a character which did not reflect credit on the company by whom they were leased, and in the recent coal strike of Southern Colorado it was one of the unfair charges brought against the Colorado Fuel and Iron Company that its tenants lived in houses of a miserable description. As the facts of the situation were never properly disclosed to the public, and as the papers of Colorado, and following them the papers of the United States, were by no means dis- posed to do justice to the corporation, there was only one cure for the situation and that was to dispossess the men who were living in these houses. This seemed to the corporation to be an unjust thing to do in view of the fact that some money had already been expended by the land tenants, even though in an extremely injudicious and insanitary way. The company, therefore, decided that if there was to be any injustice they themselves were the proper parties to sub- mit to it, and very generously consented to buy the houses at any valuation which they could induce the land tenants to accept. In a case such as this there will always be found land tenants who put an unreasonable figure upon their pos- sessions, and prices were paid, in many instances, which were distinctly unfair, even granting that it was the duty of the company, which it was not, to purchase these tenements on the land leased by them on short-time leases. However, the buildings were all eventually purchased. In time, all the old houses were torn down, and the villages in most cases bear testimony to the excellence of the judgment thus exhibited, although there are still some houses left, which are on prop- erties not owned by the Colorado Fuel and Iron Company, that are more or less of an eyesore as contrasted with the pretty buildings and neat gardens of the house tenants of the Colorado Fuel and Iron Company. 722 PROCEEDINGS OF AMERICAN MINING CONGRESS Company Often to Blame However, in most cases, the trouble is not with tenants who have erected their own houses on the land of the operative company, but with houses which were in existence before the company purchased the property and with houses erected either by miners or others on the property of other people and, therefore, not subject in any way to company control. There are always difficulties in getting rid of such places, but that does not say that an attempt should not be made wherever such conditions exist. In fact, it is quite frequently the case that around the rail- road stations are a number of buildings of a deplorable char- acter which should be wiped out if possible. If the operator is not prepared to buy such buildings and erect others in their places, or leave the land vacant, there is still a possibility that he may start some sort of clean-up campaign which will make the citizens themselves feel more disposed to do the work that is desired. Mine Owners Should Lead In fact, it seems that operators in coal-mining towns should be always leaders in the clean-up campaign. They have seen pretty villages and they know what can be done, and it is really up to them to express to the citizens their ideas of what is needed to make a town of which the citizens will be proud. In most cases there is no disposition on the part of the management to labor on the creation of the requisite village pride. It is certain that within many of the Eastern towns the schools, for instance, are not at all up to the level which should be desired, and the operator who has traveled North, South, East and West in the United States knows exactly how far the little red schoolhouse fails to measure up with the ideals of the commonwealth and to accord with that more generous system of instruction which is customary in the mining "camps" of the West and the North. Unfortunately, there are some features of a coal-mining town which can only be mitigated. Where the amount of rock brought out of the mine is of small quantity there need not be unsightly dumps at the mine-mouth or tipple, for there is THE INDUSTRIAL CLEAN-UP 723 always room and opportunity to place the material by means of motor trucks where it will improve the village and the roads by which the village is approached. In many cases, however, the rock dump is so large that no disposition of the rock can be made except to pile it in unsightly masses. But there is no reason why these should not be made smaller and more sightly than is customary, nor is there any reason why they should not be high and wide rather than numerous. In fact, with the high rock dump the material is disposed of with a minimum of expense, and if the level at which the rock is delivered is not high enough for expeditious dumping, there is always the possibility of putting in a hoist which, while it concentrates the dump area, will make it possible to dump the material with less expense. Avoiding Fires Care should be taken that such dumps do not catch fire. They may seem to be perfectly free of carbonaceous material, but that is very rarely found to be the case when careful investigation is made. Many shales contain an oil which burns quite freely when the necessary heat is obtained to drive it to the surface of the rock. To avoid such annoying fires, for they are annoying rather than destructive, care should be taken to keep the brush cut around the foot of the pile and to see that the blacksmith and others do not throw hot ashes where they can fall down and ignite the shale and bone coal. The boy who thaws out car-wheel oil and the dumper, who is naturally anxious to keep himself warm during the winter days and nights, may either of them so use the fires which they have to build as to set fire to the dump. They are quite likely to do this if no conveniences are given to them for preparing their fire where it can do no harm. Even then they will need to be warned of the danger of throwing hot ashes in among the rocks on the dump. By the use of steel plates under the stoves or open fires which they use a certain degree of pro- tection can be afforded. Other annoyances around the coal mine are the bone piles and the ash pile of the boiler house. Bone can always be dis- tributed with advantage on the road, and in some places it can be used profitably by the farmers of the surrounding 724 PROCEEDINGS OF AMERICAN MINING CONGRESS country for the burning of lime. In any case it should not be so placed that it is liable to be set on. fire by tramps or by spontaneous combustion. Motor trucks can easily be used to place it where it is a help rather than a hindrance. Ash piles should not contain enough carbonaceous matter to burn even when red-hot cinders are piled upon them, but, unfortunately, most of our mines are not so equipped that the coal is burned to such a degree as to remove the possibility of further combustion. The safest way is to haul the ashes away as fast as they are formed and use them judiciously for road building. Building Better Towns Perhaps we do not realize how important is the matter of building sidewalks in mine villages. The difference in the styles of clothing in the cities and in the villages of the coun- try is due very largely to the absence of sidewalks in the latter and the presence of sidewalks in the former. The general opinion of the public regarding any town is gauged a great deal by the character of the clothing of those who appear at the railroad station. Where the people who live in the town can only approach the platform of the station by wading their way through the mud they get into the habit of making their appearance in overalls and jumpers, and this they do whether the day be fine or the reverse. Any woman who wears decent clothes is labeled at once an extravagant spendthrift, for the condition of the roads is such that such garments become bedraggled and splashed from head to foot with the mire of the roads. We cannot preserve city apparel unless we are willing to provide city conditions. The drawback of a town with muddy streets is but accentuated when the streets are not properly lighted and, consequently, the residents are unable to pick their way from dry spot to dry spot and so keep their clothes in condition. We cannot ask for cleanliness in our mine villages unless we provide con- ditions by which that cleanliness may be obtained without excessive cost and effort. It is of no use to talk of welfare in a town where provisions have not been made such that welfare can be made workable. THE INDUSTRIAL CLEAN-UP 725 Time for a Campaign It would appear that the time is ripe for a campaign in favor of an industrial clean-up. There has been a great deal of good work done, but it has not been general, and the industry has gained very little by what has been done, the reason being that the public does not see the good work that has been accomplished. It passes along highways where it is impos- sible to observe the improvement, and whenever there is a strike it is always possible for the mine workers to feature those plants where the least degree of welfare work has been provided. If we would capitalize the development in mining towns, we must do so by making it general. For this we need a cam- paign. An effort should be made to interest all those who have not taken up work of this character to do so for the good of the industry. Many of the improvements have been made, it is true, for the purpose of securing workingmen from the less desirable mines by giving them better social conditions at the plants which were seeking men. There was a tendency, therefore, to exploit the difference between the good coal camp and the poor coal camp. It is to be questioned, however, whether that is the right attitude, and whether it would not be better for the industry if an attempt should be made to interest everybody in welfare work whether they have plenty of men or few. After all, the camps along the main line, which are occupied often by a lot of unprincipled working men, would be much better off if they were to obtain men of the character which are to be found in mines having better living conditions. In short, a cry should go forth from the mining industry to the owners of undesirable mines : "Clean up for the good of the industry. Let the people see us as we are and not as the least comely of us are." 726 PROCEEDINGS OF AMERICAN MINING CONGRESS WORK OF THE TARIFF COMMISSION Address by MR. E. P. COSTIGAN, Member U. S. Tariff Commission Though important and related, the subject assigned to me for this conference is somewhat collateral to the main discus- sion. From this charge I plead immunity. Coming here with the purpose of profiting as a listener, I received but day before yesterday an invitation to speak to you. However, as a member of the Tariff Commission and as a western man, deeply inter- ested in the prosperity of the trans-Mississippi region, and particularly the mining industry, I am glad to appear infor- mally to request the co-operation of the industrial leadership you ably represent with the work of the Tariff Commission. In order that the Tariff Commission may most efficiently serve the purpose 'for which it was created, it is desirable that industrial leaders in every field should know something of the Commission's authority, the nature of its activities, and the means through which co-operation with its work may best be promoted. Doubtless such information would already be gen- erally distributed but for the fact that the Commission was organized in April, 1917, a few days prior to the beginning of our country's active participation in the world war. Though the Commission has been continuously engaged from then until now at its special tasks, its investigations have naturally been subordinated to the more immediate demands resulting from that fateful conflict. Purposes of the Legislation Congress specifically provided for the Tariff Commission in the Revenue Act of September 8, 1916. The law was adopted after careful consideration and discussion, in the course of which its advocates, without respect to party, assigned certain significant reasons in support of its enactment. One of these reasons was the indispensability of maintaining a permanent and unbiased governmental body, equipped to assemble, for continuous and current use, and to scrutinize and report in scientific spirit all facts of tariff significance which are perti- WORK OF THE TARIFF COMMISSION 727 nently related to the countless articles which are or may become subject to revenue legislation. Another and closely related reason was the wisdom of relying less on the hasty and more or less one-sided tariff hearings on which Congressional com- mittees in times past have often inevitably depended, by build- ing future legislation on the foundation of far more carefully compiled and accurate information, both extensive and inten- sive, especially in highly technical subjects. A third was the importance of preparing to meet post-war conditions by accumulating through some official agency whatever interna- tional tariff data will best assist us nationally in adapting our- selves to those changed industrial problems of the world which are certain before long to seek some solution or relief in newly formulated commercial treaties. Nature and Authority of the Commission With these and similar objects in view, the Revenue Act of 1916 provided for a Commission, without administrative powers, which was none the less designed on permanent lines, in contradistinction to the temporary boards which have here- tofore rendered occasional assistance to Congress. Its intended permanence was emphasized by a clause in the law looking toward continuing annual appropriations and by a provision for the appointment of its members for successive twelve-year terms. Its non-partisanship was sought to be safeguarded by the requirement that not more than three of the six commis- sioners should be members of any one political party. And its investigating functions were clearly specified. Under the Act creating it, the Commission co-operates with and in return receives the co-operation of other governmental departments and establishments, and it is given the amplest power to summon witnesses and compel the production of all necessary papers, books and documents. In addition, the Commission is expressly authorized to inves- tigate and report on : Such special subjects as may be referred to it by the Presi- dent, the Ways and Means Committee of the House of Repre- sentatives, the Finance Committee of the Senate or by either House of Congress ; The administration and fiscal and industrial effects of the 728 PROCEEDINGS OF AMERICAN MINING CONGRESS customs laws of this country now in force or which may be hereafter enacted ; The relations between the rates of duty on raw materials and finished or partly finished products ; The effects of ad valorem and specific duties and of com- pound specific and ad valorem duties ; All questions relative to the arrangement of schedules and classification of articles in the several schedules of the customs law; The operation of customs laws alike in relation to the Federal revenues and their effect upon the industries and labor of the country ; The tariff relations between the United States and foreign countries, with authority to prosecute any necessary inquiry either through the commissioners themselves or the Commis- sion's agents in any part of the United States or in any foreign country ; Commercial treaties, preferential provisions and economic alliances, including the Paris Economic Alliance of 1916, and similar organizations and arrangements in Europe ; The effect of export bounties and preferential transportation rates; The volume of importations compared with domestic produc- tion and consumption ; and Conditions, causes and effects relating to competition of foreign industries with those of the United States, including dumping and cost of production. Primarily an Investigating and Reporting Agency Different legislative proposals having in view a broadening of the duties of the Commission in various directions are at this time under consideration in Congress, but it is clearly the Com- mission's primary function to serve as a fact-investigating and fact-reporting body. Devoid alike of administrative responsi- bility and rate-making tariff powers, the Commission is, above all, concerned with the accumulation of accurate data having industrial significance for the use of Congress and the Presi- dent. It follows that the Commission is seeking and prepared to welcome, subject of course to verification, not only precise information on ultimate competitive conditions, but also co- WORK OF THE TARIFF COMMISSION 729 operative suggestions and intimations as to those methods which will best assure the most helpful and dependable com- pilation of facts for legislative and executive consideration. An impression of the manner in which the Commission has so far discharged its obligations will perhaps be best formed from specific illustrations. Commission Reports Padlock or Interim Legislation Immediately after its organization in April, 1917, the Com- mission in response to an official request, reported to the Ways and Means Committee in favor of so-called "padlock" or "interim" legislation as a means of providing considerable revenue to the Government, without adding to the burdens of consumers, in periods when Congress as was the case when the Commission's report was made is considering increases in internal revenue taxes and tariff duties. The Commission directed attention to the large importations under existing lower rates, which, during our history, have regularly occurred prior to the enactment of such laws, in the interim while increases in taxes and duties are under consideration by Con- gress. The report demonstrates that the goods thus hurriedly drawn into the channels of trade are thereafter retailed at prices raised to consumers by the amount of the subsequently imposed taxes or duties, although the Government has, in fact, not collected such increases. The Commission advised for the future the adoption of legislation whereby such anticipated increases, if finally enacted, shall become effective from a date preceding the enactment of the law, to be determined by the Ways and Means Committee of the House of Representatives. The report made clear that such public revenue safeguards are regularly given by corresponding legislation in many European countries, and that bona fide outstanding contracts need not be endangered by such legal provisions. It will be observed that the Commission's report bore no relation whatever to protec- tion or free trade, yet was responsive to an investigation of the bearing on the federal revenues of the operation of our customs laws. The Commission established that such a law, without increasing the consumer's burdens, from customs duties alone would, in 1897, have added approximately $74,000,000 to the Treasury of the United States ; that in 1909 other large and 730 PROCEEDINGS OF AMERICAN MINING CONGRESS available sums were similarly passed by, and that many millions of dollars more would have been likewise collectable without added public cost in such a year of increased internal revenue taxes as the war with Spain in 1898. Needless to say, in 1917 such a general statute would have served similar valuable ends, especially in the field of internal revenue tax increases. Revision and Codification of Customs Administrative Laws Another example of investigations which committees of Con- gress, with their many responsibilities, find little time exhaust- ively to pursue, and for which a Federal investigating body has unusual qualifications, may be cited in the Tariff Commission's report, now in the hands of the Ways and Means Committee, on the "Revision of the Customs Administrative Laws of the United States." Here, again, is a recommendation of impor- tant revenue legislation of a non-partisan, and, in the main, a non-controversial sort. The Commission devoted many months to the detailed investigation of the customs administrative laws in this country. Many of these laws are antiquated ; others are inconsistent, overlapping and obscure. Certain of these stat- utes were designed to meet conditions of the eighteenth century which no longer prevail. Some of them by general consent impose at the present time on our commerce conditions of undesirable and even inexcusable severity. Yet no complete revision has been undertaken since 1799, and the one partial legislative attempt in that direction, which occurred in 1890, left much to be desired. The Commission approached the task without preconceptions. Aided by administrative experts, it invited into conference representatives of the Government, the public and of business chiefly interested in the problems at issue. As a result of constructive criticism and prolonged con- sideration, it evolved suggestions for the uniform codification of our customs administrative laws greatly simplyfying and reducing in bulk the outstanding legislation. This proposed revision has been submitted to Congress in columns conveni- ently parallel with the existing laws. The compilation, as a whole, represents the consensus of well-informed opinion, both in government and business circles, with reference to funda- mental legislative requirements for the installation of a thor- oughly modern, efficient and acceptable administration of our WORK OF THE TARIFF COMMISSION 731 customs laws, regardless of any tariff duties Congress may see fit to enact. As illustrations of changes recommended by the Commission, which are approved with practical unanimity on all sides, may be mentioned less drastic rules controlling the payment of drawbacks ; the lessening of the number of bonds required from importers to a minimum consistent with the safety of the public revenues ; the more liberal use of bonded warehouses so that articles under proper supervision for the due collection of duties, may be freely handled, sorted, manipulated and manu- factured; the sanction cf direct shipments of articles to their destination, with provision for appraisement at such points; the authorized recovery, on proof of good faith, of excess duties collected in cases of unintentional overvaluation, or by way of penalty for unintentional undervaluation, in making entry of merchandise ; and the proposed rearrangement of the bases on which dutiable values are determined, so that foreign market value and the American selling price will both precede, and in that order, the ascertainment of the foreign cost of production of articles requiring appraisement. Of much importance, also, is the recommendation that the appointment of collectors and certain other customs officials shall be transferred from the President to the Secretary of the Treasury, thereby introducing a promise of enlarged efficiency and invoking the standards and safeguards of the Civil Service in these administrative positions. Foreign Trade Zones A third inquiry of general interest resulted in the Commis- sion's report on foreign trade zones, more commonly known abroad as "free zones." This investigation also was the out- growth of scrutiny of the operation of our customs laws. Foreign trade zones, which, as such, have nothing whatever to do with a country's tariff rates, are limited areas outside of, but adjacent to, customs ports, wherein merchandise may be freely handled without being subject to ordinary customs duties or supervision unless the merchandise actually starts to move out of the zone and to enter the customs gates. Such zones have been found serviceable abroad, notably at Hamburg and Copen- hagen, as instrumentalities for the promotion of foreign trade. 732 PROCEEDINGS OF AMERICAN MINING CONGRESS They offer particular facilities for the trans-shipment of a con- siderable part of the world's commerce through the centraliza- tion of merchandise at convenient points ; its re-handling there, and its subsequent distribution. There is reason to expect that such zones may prove useful to the United States under the changed conditions and the new financial relations among the results of the war affecting foreign commerce. The Commission, after a careful and exhaustive examination of the use of such zones abroad and their constitutionality and practicability here, has recommended the enactment of permis- sive legislation under which States or political subdivisions, subject to general safeguards, to be defined by the Secretary of Commerce, for adequate construction, fair charges, equal treat- ment and public utility service may, if they desire, without expense to the Federal Government, set up such commercial machinery. It may be added that bills, on which the Tariff Commission by request has reported, providing for such foreign trade zones, are now pending in Congress. Dumping and Unfair Foreign Competition As stated, the Commission is directed by law to investigate the dumping of foreign goods in this country. Accordingly it has recently filed with the Ways and Means Committee a report not only on that subject but also on other unfair foreign com- petition, including a report on the operation of the pioneer anti- dumping law of Canada. In this report, the Commission reviews the anti-dumping legislation of the United States, Canada, Australia and the Union of South Africa, the only countries which have 'so far enacted special statutes. The report carefully defines dumping and related usages, and distinguishes dumping and other unfair practices from ordinary instances of severe com- petition. In this connection the Commission has compiled many definite complaints of recent dumping practices by representa- tive American business firms. Included in the Commission's report are certain findings resulting from a special investiga- tion on the operation of the Canadian anti-dumping law con- ducted by the Commission in Canada in 1918. On the assump- tion that the anti-dumping Act of Congress of 1916 expresses the settled legislative purpose of Congress to restrict dumping in the United States, the Commission concludes its review of WORK OF THE TARIFF COMMISSION 733 the subject by recommending to Congress the enactment of additional legislation cautiously hedged about and made as elastic as possible, in the interest of the consuming public, either along the lines of the Canadian law or by authorizing the President or Secretary of the Treasury, pursuant to suitable official findings, to impose additional duties, or even refuse entry of articles when unmistakable and industrially destruc- tive dumping threatens. War Disturbances of Industry The European war, even prior to our entry, profoundly affected our foreign commerce and the demands for, and condi- tions of, our domestic production. The industrial results of the war were, therefore early selected by the Commission as sub- jects for inquiry. Among the articles under this head to which the Commission gave particular attention may be noted : Dyes and coal tar chemicals with special reference to the production of necessary textiles and munitions ; optical glass and chemical glassware ; surgical instruments ; the brush industry ; the but- ton industry ; among textiles the silk industry and such indica- tive articles as cotton Venetians and chamoisette gloves; and such war minerals as quicksilver, chromite, manganese, tung- sten and magnesite. The Commission, it may be added, has in preparation and expects soon to publish a volume exclusively devoted to the consideration of the more important war minerals. On each of these groups the Commission has reported sepa- rately. Both because of their outstanding significance and as part of the analysis of Schedule "A" of the present tariff law, dyes and related coal-tar chemicals were early made objects of exhaustive consideration. For one thing, the Commission, by direction of the President, has already taken a census for 1917 and 1918 showing the domestic production and consump- tion of coal-tar chemicals. The Commission has also submitted to Congress a detailed description of possible loopholes in the Dye-Stuffs Act of 1916. The report was directed to the better realization of the intent of Congress as expressed in that act. 734 PROCEEDINGS OF AMERICAN MINING CONGRESS Foreign Tariff Surveys The world-wide war disturbances of various industries are closely related to the foreign tariff problems on which the Com- mission is also required to report. With the war's radical inter- ference with the course of trade between Europe and America, Japanese competition in various lines acquired an unexpected importance. The Commission, as part of its survey of foreign competitive conditions and tariffs, has given attention alike to the tariff system, the industrial development and the trade of Japan, and hopes at an early date to supplement its informa- tion from first-hand inquiry recently made in that country. With similar regard for Far Eastern conditions, the tariff systems of Siam and China and the development of China's foreign trade have been reviewed. A comprehensive report on colonial tariffs throughout the world is also well advanced, and especial attention has been given to the British policy of im- perial preferences. Commercial Treaties Another important result of the study of our foreign rela- tions well under way is the compilation by the Commission of a world digest of commercial treaties. It is intended that this digest, after it is published, shall be regularly supplemented so that it may remain easily accessible and, so far as possible, permanently complete. Doubtless in this connection mention should be made of the Commission's fairly recent report on * 'Reciprocity and Com- mercial Treaties," which exhaustively surveys, both historically and with statistical evidence, our past reciprocity experiences, and which also closely examines European tariff uses and methods. As part of this study the employment of the "most favored nation" clause in commercial treaties is analyzed. The report contains the conclusions reached by the Commission in consequence of this review, the most important of which is the recommendation of the adoption of equality of treatment safeguarded when necessary by retaliatory tariff action against countries which deny the United States equality in return as the foremost principle in directing America's future commer- cial policies. WORK OF THE TARIFF COMMISSION 735 Costs of Production Costs of production both at home and abroad have long figured prominently in tariff discussions, and the Commission has not failed to prepare, and in some cases to make, investiga- tions in this field. Significant comparative costs, so far as possible, must be tabulated with similar units of production in view, and such investigations are much more involved and difficult of standardization than mere lists of comparative wages suggest. The war introduced such abnormal features into production that these inquiries have not had for the time being the same urgent quality or immediate usefulness which might ordinarily attach to them. However, the Commission has succeeded in preparing a thorough report on costs in the sugar industry and has made some headway in such fields as cork, silks, conversion costs of cotton cloth and cotton yarn, and, to a more limited extent, the wool-growing and chemical industries. Other similar investigations are proceeding at the present time. Incidentally, some of these investigations have tended to shed light on the diverse operation of specific and ad valorem duties and on the desirability of revising many inconsistencies and inequalities, both in existing classifications and in other phases of tariff legislation. Tariff Information Surveys Without further prolonging the discussion of separate phases of the Commission's work, some comment should be included on that part of its performance which in many respects prom- ises to be the most extensive, continuous and highly serviceable. This is the accumulation, item by item, of systematically con- densed, verified and thoroughly current tariff information of a fairly complete sort with respect to thousands of articles liable to tariff duties embraced in the various schedules and even the free list of our tariff laws. From the outset the Commission undertook the patient and careful assembling of precisely this sort of material a long series of tariff surveys of separate articles which together con- stitute the beginning and are the forerunner of a tariff encyclo- pedia. The detailed and increasingly expert knowledge called for in a large part of this labor is such that committees of Con- 736 PROCEEDINGS OF AMERICAN MINING CONGRESS gress have few facilities and find little opportunity for pursu- ing it. Indeed, it calls for a high order of specialized and tech- nical equipment, proceeding often for a long period of time under impartial guidance. This is largely due to the growing complexity and obscurity of competitive, commercial, manufac- turing and in a less degree, agricultural conditions, and the corresponding difficulty of adjusting legislation, even on a given theory, to the facts with which it seeks to deal. Such an accumulation of pertinent, helpful and currently supplemented information cannot be obtained under the old-fashioned tariff- hearing methods, as part of which the testimony chiefly of interested witnesses was hurriedly taken. Indeed, as already intimated, much of the demand for the Tariff Commission in this country has come from members of congressional commit- tees who have frankly expressed their dissatisfaction with the insufficient results frequently thus secured. The situation requires the best abilities of a trained staff of government experts, qualified to handle with technical skill the separate departments of industry which are brought together in the various schedules of our general tariff laws. The present Com- mission has always had in view the necessity of securing and maintaining such a skilled staff of advisers and investigators. For example, the important and increasing usefulness of such experts must be evident at once to all with respect to customs law problems, cost accounting and innumerable articles em- braced in the chemical, metal and textile schedules. The Com- mission, in thus using its expert staff, has naturally tended toward standardization in the collection of tariff information. Much material of a sort never heretofore assembled for tariff purposes has already been accumulated, and the work is steadily and systematically progressing. Tariff Policies and Public Opinion Enough has been said to make clear both the breadth and limitations of the Commission's present authority. The reten- tion by Congress of rate-making tariff powers is disappointing to those persons who had hoped through an administrative rate-making tariff body, for the complete elimination of the tariff from the field of public discussion. Many such sanguine anticipations have not taken into account the constitutional WORK OP THE TARIFF COMMISSION 737 control exercised by Congress over the levying of taxes. Nor have such hopes yet solved the problem of defining standards of economic policy in terms sufficiently acceptable to changing electoral majorities, to permit of continuous and satisfactory administrative application. While these factors remain, the tariff will continue in politics, subject to public opinion ex- pressed through Congress and the chief executive. However, the Tariff Commission, even with its limited powers, is one of many indications that the solution of tariff problems in this country will hereafter be approached somewhat differently than heretofore. It appears reasonable to expect an increasing emphasis on the national aspects of revenue legislation ; fewer sectional appeals; less log-rolling; also greater stability both in domestic and foreign policies, because of fuller, or, at any rate, more authoritative, information openly available alike for Con- gress and the public. The immediate responsibility of the Tariff Commission is to serve our lawmakers by reporting, thoroughly and without bias, the material facts about industry. It remains for public opinion through its legislative and execu- tive representatives to use its sovereign force to direct the development of commercial and industrial policies along the broad, consistent and sound lines dictated by the general welfare. These various aspects of our work have been reviewed in order that you may have in mind those particulars on which you are likely, from time to time, to consult with or be consulted by the Tariff Commission, and on which you may assist the Commission in presenting facts of a pertinent nature to the legislative and executive departments of the Government. In the performance of its duties the Commission requests the cordial co-operation of the membership of the American Mining Congress. [Applause.] 738 PROCEEDINGS OF AMERICAN MINING CONGRESS THE AMERICAN QUICKSILVER PROBLEM Address by Fletcher Hamilton, State Mineralogist of California, Before the American Mining Congress The American quicksilver industry today faces the situation of fighting for its existence with all the cards stacked against it and the only possible solution of its problem depends upon whether or not the policy of our government is going to be one of protection for the industry. The final analysis of the competitive conditions which con- front it may be judged from the following: First That the ore deposits of foreign countries are invari- ably of higher tenor or metal content than those of the United States. Spanish ore averages 11 per cent., Italian ore 8 per cent, and Austrian ore 1 per cent., while the average content of ore mined in the United States is one-half of 1 per cent. Second The cost of labor in foreign countries is invariably much lower than in the United States; in fact, the Spanish mines are operated with convict labor. It will therefore be readily seen then that the cost of pro- duction of a flask of quicksilver under the conditions noted above will be greatly below that possible in the United States. The only condition then left to consider is the ore supply of this foreign competitor. Suffice it to say that the Almaden mine of Spain alone, with its 11 per cent, ore, operated by con- vict labor and its output contracted to the Rothschilds, of London, at 7, or $34, per flask has sufficient tonnage to supply the world for many decades to come. As a means of giving some gauge of the differences in cost of production I have consulted the record of the United States Tariff Commission wherein they determined that the cost of producing quicksilver in the United States averages between $70 and $75 per flask. The best information upon Almaden, Spain, costs is that they increased from $8.29 per flask in 1900 to $15.22 per flask in 1915. The costs since the war of all foreign production are not as yet available, but I understand will be very shortly. THE AMERICAN QUICKSILVER PROBLEM 739 One might naturally ask why it is that the industry has sur- vived to this time and my only answer is that it has existed through sufferance and for some reason the Rothschilds have been satisfied with their apparent power to control price rather than throttle the United States production. I shall not at this time go into the statistics of import and export and try to interpret their influence on price control, except to give an example which happened in 1917 when the demand for quicksilver was so great and speculation rife. At the peak of high prices England shipped in 3,000 flasks and broke the market and gradually bought it back at a price more nearly the average for the year. Vitally Necessary Chemical As you all know, quicksilver is used in the manufacture of drugs and chemicals, fulminate, vermilion, anti-fouling paint, electrical apparatus, felt manufacture, in gold and silver amal- gamating mills and various miscellaneous uses and it has not been supplanted to any considerable extent by substitutes. It is a metal which is vital to the industries of the nation in that it has no substitute ; its use in war munitions is a paramount need. I cannot agree with the opinion that our quicksilver resources should be conserved for future needs by allowing our mines to shut down and our plants to decay. The only sane conservation is that which allows industry to proceed without waste, to encourage the development of reserve ores and make possible the search for ore bodies which today are unknown. It does not lie within the knowledge of today what will be discovered tomorrow unless no work is done today, and then we may be sure that nothing will be discovered tomorrow. It is vital to the nation that we should maintain our quick- silver industry in operating condition. To do this it must be given protection. California Production For the past 68 years the industry in California has recorded a production every year of not less than 10,000 flasks minimum and in 1877 a maximum of 79,396 flasks. The total production during that time was 2,160,349 flasks, valued at $104,572.032, 740 PROCEEDINGS OF AMERICAN MINING CONGRESS During two or three years previous to the war our home consumption of quicksilver was approximately 25,000 flasks annually and our domestic production below 20,000 flasks. During the war an increased demand stimulated production to: 29,932 flasks in 1916; 36,159 flasks in 1917; 32,883 flasks in 1918. This undoubtedly could have been increased were the miners, who are cognizant of the precarious position of quicksilver, protected. Forced to Close Down There are of record several hundred quicksilver mines and prospects in California. Today there are operating in Cali- fornia about ten mines, producing at the rate of about 1,200 to 1,600 flasks a month. The present price and cost of production are about a stand-off and the industry is marking time. With insurance against loss through a control by protection it is my belief that the quicksilver resources of the United States could supply its needs. At present the only other States producing are Nevada and Texas. Their production is about half of normal. With the quicksilver producers of the United States out of the market, the consumers of this commodity in the United States will undoubtedly pay a handsome price for the privilege of using an imported article. As I have stated, the solution of their problem lies in the policy to be adopted by the Government. Protection by a sufficient tariff means salvation to a lost soul ; inaction means deserted and abandoned communities. I sincerely hope that faith will be kept with the industry. THE AMERICAN TUNGSTEN SITUATION 741 THE AMERICAN TUNGSTEN SITUATION i Address by HON. E. C. VOORHEIS, of San Francisco, before the War Minerals Conference, The American Mining Congress The crude tungsten ores of commerce contain a large amount of foreign material, and as mined (with the exception of the rich surface float ores) are usually low grade, averaging a small percentage of tungstic trioxide (WOs) . These ores have to be concentrated by machinery to a high-grade product, aver- aging from 50 per cent, to 65 per cent, tungstic trioxide, one part tungsten (W) to three parts oxygen (Os). The standard concentrate of commerce contains 60 per cent. WOs. A unit is 1 per cent, of a short ton of 2,000 pounds, namely 20 pounds, of tungstic trioxide. Uses of Tungsten and Its Products This high-grade concentrate is used in the manufacture of ferro-tungsten and other tungsten products, which in turn are used in high-speed tool steel-making. The commercial tungsten products manufactured from tungsten concentrate consist of ferro-tungsten, tungsten powder, tungstic acid, calcium tung- state and sodium tungstate. These products are manufactured by metallurgical and chemical plants especially equipped with electric furnaces and scientific apparatus designed for the purpose. By far the greatest use of manufactured tungsten (ferro- tungsten and tungsten powder) is in the making of high-speed tool steel. From 13 per cent, to 20 per cent, of tungsten is used in high-speed steel. From 90 per cent, to 95 per cent, of the tungsten consumed is used for this purpose. Additions of tung- sten impart to the steel the property of retaining its temper at very high rates of speed and at extremely high temperatures, while tools made from simple carbon steels will not stand up under these severe conditions. This property is especially valuable in so-called high-speed cutting lathe tools, permitting the tools to operate at five or six times the cutting speed fo,r- merly attained when carbon steel tools were used, and at the 742 PROCEEDINGS OF AMERICAN MINING CONGRESS same time permitting a much heavier, deeper cut to be made in the steel object or machined part on which the tool is working. In a day and age demanding speed, accuracy, production, efficiency and economy of time and labor, the use of tungsten in the making of high-speed tools is imperative. Ferro-tungsten and tungsten powder are also used in the manufacture of special alloy steels, such as permanent magnet steel (containing 5 per cent, tungsten), and valve steel for automobile and aeroplane engines. Its use in high-speed tools enabled the speeding up of the shipbuilding and munition- making program and earned for it its title of the "Key War Mineral." Its use in the manufacture of electric lamp filaments and wireless telephone amplifiers is well known. Tungstic acid, calcium tungsten and sodium tungstate are chiefly used in the dye and chemical industries. Sources The chief sources of tungsten in the world are Southern China, Burma, the United States and South America. The importance of these respective tungsten sources is in the order named. Deposits of minor importance occur in other countries. Domestic Production Tungsten ore was first discovered in quantity in the United States in the year 1900. The discovery was made in Boulder County, Colorado. During the fourteen years prior to 1914 this district produced fully 60 per cent, of the total tungsten mined in the United States. Since 1914 the production of Cali- fornia has about balanced that of Colorado. Tungsten has been found in some thirteen States of the Union and in Alaska.* The chief production outside of Colorado and California has been obtained in Nevada and Arizona. Discoveries made in Nevada during the latter part of 1918 bid fair to eclipse in extent the famous deposits of Colorado and California. * Colorado, California, Nevada, Arizona, South Dakota, Missouri, Alaska, Utah, New Mexico, Idaho, Connecticut, Washington, Montana, Virginia. See the "Mineral Industry During 1917," by G. A. Rousch, a reliable authority. THE AMERICAN TUNGSTEN SITUATION 743 Foreign Production Outside of the United States the largest production in the world is obtained in Southern China and Burma. These dis- tricts in 1918 produced more than 50 per cent, of the total world output. A large part of the Asiatic tungsten comes from new fields of high-grade float ore that can be gathered off the ground by coolie labor. In South America tungsten mining has been carried on for a number of years and some deep mining has been done. Portugal produces at least half of the tungsten ore mined in Europe. The Portuguese deposits are largely controlled by British capital. History As above stated, tungsten ore was first discovered in quan- tity in the United States in the year 1900. From 46 tons in that year the annual production rose to 1,500 tons at the begin- ning of 1914. Under the stimulus of higher prices and the demand of world-war necessities, we produced from 5,000 to 6,000 tons of 60 per cent, concentrate in each of the years 1916, 1917 and 1918. Old camps revived, and as the result of dis- covery after discovery and development after development, new and thriving towns grew up in Colorado, California, Nevada, Arizona and many other places, giving investment to many millions of capital and employment to thousands of people, building up new communities of happy and prosperous homes. At the present time all of the tungsten mines and concen- trating plants throughout the country are closed down. The question presented is whether the domestic tungsten mining industry shall be preserved as one of the units of the industrial independence of America, or whether it is going to be allowed to perish and disappear from the United States. Unless Con- gress intervenes the domestic production will be completely wiped out by the competition arising out of the condition of the ore deposits and the submerged labor of Southern China, Burma and Bolivia. H. R. 4437, introduced by Congressman Timber- lake, of Colorado, June 2, 1919, is designed to remedy this situ- ation. This bill levies a tariff of $10 per unit of 20 pounds tungstic trioxide on all importations of tungsten ore, and while allowing the present tariff on the finished product to continue, 744 PROCEEDINGS OF AMERICAN MINING CONGRESS adds a compensatory differential upon that product to equalize any increased cost caused by the tariff placed on the crude ore. Germany the Former World Market It is a striking fact in the history of tungsten that by far the greatest part of the world's tungsten ore was imported into Germany prior to the world war. Part of this tonnage was then re-exported as concentrate. The nations of the world were more or less taken by surprise when with the advent of the war they suddenly realized that Germany had completely con- trolled this vital essential of the war. Even the extensive Brit- ish-controlled deposits of Burma had been contributing to Ger- many's stores of tungsten. With the realization of the great sudden need for tungsten Great Britain placed an embargo on all shipments from British colonies and possessions, including Burma, except to herself. The high-speed tool steel manufac- turers of the United States were suddenly confronted with a serious shortage of tungsten, because of the fact that our own mines had not been developed sufficiently to begin to supply the increased domestic requirements, and practically no concerns existed in the country to refine whatever domestic ore that was produced. By far the greatest part of the tungsten ore im- ported into Germany was manufactured into finished ferro- tungsten and tungsten powder, and then distributed to the nations of the world. Germany apparently was the only nation in the world that seemed to realize fully the importance of tungsten during this period, for, although the United States was always one of the greatest users of the tungsten-finished product, and was sometimes the largest, and always a compara- tively large, producer of tungsten ore, the trading center of the tungsten industry was in Germany, and Germany's exports of ferro-tungsten and tungsten powder went largely to England and the United States. With the advent of the world war, how- ever, the same imperative demand which had built up the tung- sten ore-mining towns and concentrating mills, and which set in motion the necessary machinery for perfecting the dye and chemical industry in the United States, accomplished magical development of the ferro-alloy and tungsten metallurgical in- dustry, giving to the American tungsten miner a market for THE AMERICAN TUNGSTEN SITUATION 745 his product in this country instead of Germany, if he is given such measure of protection as will allow his industry to exist. Future Domestic Consumption and Production An estimate of the peace needs of our country for the next few years has conservatively placed our requirements at about 6,000 or 7,000 tons of 60 per cent, concentrate per year. With the placing upon tungsten ores of a tariff sufficient to assure the American tungsten miner reasonable protection against unfair competition the experience of the last three years has amply demonstrated the capacity of our domestic production to furnish a very large part from 3,500 to 4,500 tons of the tonnage required for domestic consumption. Comparative Costs of Production A careful analysis of mining conditions in the Orient fur- nishes ample evidence that 60 per cent, ores may readily be delivered at our Eastern seaboard from Southern China at $6 or $7 per unit and still afford the Asiatic miner a fair profit, while twice that amount would not equal even the average cost of American production. The labor employed in mining Asiatic tungsten ore is coolie labor, which is reported as being paid approximately 40 cents per day for men and 20 cents per day for women and children. Most of the deposits of South America are mined by native Indian laborers, who are paid somewhat better than the coolie labor of China. In Portugal women and boys are used in the sorting of ore at a daily wage of from 16 cents to 20 cents. Mine labor, recruited from the peasant classes, is paid from 50 to 60 cents per day. The difference is not due solely to the labor cost, moreover, but is due as well to the fact that the surface deposits can be gathered up very cheaply and these deposits are almost always quite large and very high grade. In the average float field it is not unusual to be able to gather up high-grade ore which will analyze 60 to 65 per cent, tungstic trioxide. It has been stated that as our mining operations extend downward into the ground and we get beyond the zone of surface enrichment, on the average we have to mine low-grade ores analyzing as low 746 PROCEEDINGS OF AMERICAN MINING CONGRESS as one-half of 1 per cent, tungstic trioxide, and these ores then have to be concentrated by the miner to a high-grade product, analyzing about 60 per cent, tungstic trioxide. To illustrate the point, it would take 80 tons of 1 per cent, ore to concentrate into 1 ton of 60 per cent, ore, after making due allowance for the loss occurring in the process of concentration. The neces- sity of making this concentration compels the installation, equipment, management and maintenance of large costly mills and concentration plants, as an entire new element of cost in addition to the cost of development and extraction of the ore. Because of these facts the protection asked for is not due solely to the difference in labor cost between the .countries. In addi- tion thereto must be added the additional cost necessary to safe- guard life and limb under our salutary industrial mining laws, which are in conformity with the American standard. No tariff, therefore, would be fair to the producer which would be predicated upon any one of the factors alone instead of taking them all into consideration. Against such conditions as these competition under the standards of American labor is manifestly impossible. The American mining industry, together with the very large invest- ments tied up in it, faces destruction, unless such a measure of protection shall be accorded as will give the American tungsten miner at least an even break in the competition for the Ameri- can market. Arguments in Favor of Protection No fair argument can be adduced in favor of the importation of foreign tungsten ores to the complete exclusion of the domestic product, and there are many reasons why a fair measure of protection should be extended to the production of the domestic material, to safeguard the existence and perma- nence of the industry, some of which may be briefly stated as follows : 1. In the first place, we are not embarrassed by any consideration of the necessity of furnishing tonnage for ships bringing the product from foreign countries, because the volume of tonnage of this particular mate- rial is so small as to be for such purpose practically negligible. 2. Any export trade to foreign countries desiring the manufactured finished product of ferro-tungsten or tungsten powder for export from THE AMERICAN TUNGSTEN SITUATION 747 the United States would not be necessarily in any way affected by the duty levied on the ore under the provisions of this bill, for no American ore is available therefor under present conditions, and the manufacture of such products from the ore of China or South America for such pur- poses could be carried on and conducted in bond, just as is now done in the case of the smelting-in-bond business of zinc and lead foreign ores. 3. It is better to afford such protection to the home industry as will make permanent the communities that have been built up and developed in connection with and because of them, thereby giving employment to thousands of our home people, and at the same time give to the finished product and steel concerns a supply of stabilized character upon which they can depend, instead of having to rely upon the uncertainties and fluctuations in price incident to the importation of foreign products. 4. The wide ranges of the price of tungsten during the past 18 or 20 years would serve to demonstrate that an ad valorem tariff will not help our tungsten mining industry or the stabilization of tungsten-ore prices. The greatest sources of such ore today outside of the United States are in countries which are not consumers. On an ad valorem basis our mine operations would fluctuate with the changes in the selling price of foreign ores at the point of export, and if the selling price of Asiatic ores should become low our mining industry,: if operating under an ad valorem duty, would again have to be closed down. On the other hand, a tariff based on so much per unit tends to stabilize the value of ore mined regardless of price fluctuations in foreign countries, and this serves at least to guarantee to the miner that the market will not be cut out from underneath him completely. 5. Under the provisions of this bill, while sufficient protection is given to the miners of tungsten ore, the provisions of paragraph "Second" of the first section are intended to protect by a compensatory differential the interests of the finished product and high-speed tool steel men, with- out unduly raising the price of the product. As a matter of fact, if our tungsten mines are going to remain shut down, by the failure to pass such legislation as will revive and adequately aid them to continue in operation, the Chinese ore producer will raise the selling price of his ore to a figure just below what would sustain American production, and Con- gressional inaction would then have succeeded in killing our mining industry without having conferred any real benefit on the consumer. 6. From the standpoint of conservation, particularly in reference to preparedness, as was pointed out by Mr. J. H. Holmes, Jr., in the hearing before the Committee on Ways and Means, a duty of $10 per unit will enable tungsten mine operators of our country to develop the tungsten resources, so that in case of a national emergency we could produce quickly tungsten ore at a rate sufficient to meet the requirements of the nation in any critical period. It must be remembered that true conserva- tion is not promoted by timidly sitting beside some isolated mine, already discovered and only partly developed, and refusing to open it up further. Only energetic and persistent mining has been responsible for the develop- ment of the present-known ore reserves of the country. 748 PROCEEDINGS OF AMERICAN MINING CONGRESS Known Deposits Increased The known ore deposits at the beginning of 1918 were greatly increased during the year through new discoveries, particularly in Nevada. There is no reason why a permanent mining industry should not develop just as has been the case with gold, silver, copper and other minerals in our Western States. New discoveries are constantly being made in States which heretofore were not supposed to contain tungsten in sufficient quantities to be of importance. To illustrate the growth of new fields, in 19X7 it began to be rumored that Nevada had tungsten mineral wealth of great importance, and Nevada actually produced during that year 250 tons or the equivalent of 60 per cent, tungsten ore. In 1918 Nevada pro- duced 885 tons, and producers of that State now claim that they can equal the production of either Colorado or California out of entirely new properties discovered through the intensive prospecting and develop- ment that arose under war necessity. We must remember that tungsten mining is a comparatively new industry, and that until the war there was no great incentive to discover the deposits of it which exist in the United States. The history of tungsten mining in this country presents thus far a remarkable parallel to the history of gold mining. When the abnormally rich gold diggings of the days of '49 were first discovered and mined there were timid prophets who feared that with the passing of these surface deposits the country would exhaust its resources of gold. The prospector and the miner, however, proved that the real permanent gold resources of this country existed in lodes and veins in the ground, and that the surface deposits of all kinds had been merely erosions and deposits from these veins. It was only by his incessant digging, prospecting, development and mining of these veins that the real permanent gold industry of the country that has been part of its history for the last 70 years was finally brought about. The miner knows that surface float ores are really indications of the presence of these ores somewhere in the neigh- borhood in the more permanent form of lodes and veins. The prospect- ing and mining of tungsten made possible by the experience of the last four years, instead of causing any legitimate fear of how long our reserves will last, has resulted in the discovery of many entirely new fields and has demonstrated that the permanency of tungsten mining as an industry depends upon the continued development and mining of its deeper mines, lodes and deposits. 7. As to American capital invested in tungsten mines in this country, this committee knows that the companies or individuals owning such mines have to bear their full share of all taxation. Profits made by American capital invested in foreign countries, on the other hand, how- ever large, will never pay any part of the normal, excess profits or war tax, as applied to corporations under existing laws, and it is doubtful whether the Government would even be able to collect an income tax. But any American having capital invested in a foreign country that would oppose the present bill would, I think, be a poor sort of American, THE AMERICAN TUNGSTEN SITUATION 749 because without a duty upon tungsten ore he is in a position of getting his foreign ores into the country without paying to the Government a dollar of revenue upon its importation. In opposing this bill he would be advocating the continuance of a condition under which the investment of American capital in this country would be made valueless, American homes and communities would be wiped off the map, and American work- ingmen driven to find employment elsewhere in order that he might get his foreign ore into the country without paying any revenue on it to his Government. 8. This bill, moreover, is, in a degree, a revenue measure, for the rea- son that $10 per unit only covers a difference in cost of production of the average tungsten mines of the United States as against that of the low cost of production in foreign fields. The duty of $10 per unit is not pro- hibitive, and is not intended to be prohibitive, but, on the contrary, would give a maximum of revenue to the Government from this mining industry. Competition from foreign ores would still continue under conditions that would nevertheless allow domestic production, and the best estimates are that under a duty of $10 per unit the mines of the United States will produce only 60 per cent, of home consumption, leaving 40 per cent, to be imported, upon which a duty of $10 per unit would be collected, and thus produce direct revenue to the Government, whereas at present the Government is getting no revenue whatsoever from this source. Upon the basis of an estimated importation of 3,000 tons of foreign tungsten ore this would mean a direct revenue of $1,800,000 annually, and upon the basis of an estimated importation of 3,500 tons of foreign tungsten ore this would mean a direct revenue of over $2,000,000 annually, all of which is now entirely lost to the Government. Furthermore, the domestic production of 60 per cent, of the total domestic consumption of tungsten ore would furnish its quota of direct revenue to the Govern- ment upon normal, excess, and war-profit taxes, as well as upon the income tax of stockholders as individuals. Even if any mine can pro- duce tungsten ore at considerably less than the average cost of produc- ing tungsten ore, the Government would still receive a very large per- centage of any such profits, under the present revenue laws, whereas at present, with our domestic mines closed down, there is no revenue to the Government from production from any of them. 9. This bill might well be termed an emergency measure. Surely, whether this is a measure of protection with substantial incidental reve- nue, or a substantial revenue bill with incidental protection, is beside the point, because it may be based upon a higher consideration of public policy namely, that the protection afforded by its provisions will go far to insure the rehabilitation and permanency, and the possibility of mobilization in war and peace, of an industry that will contribute in no small degree toward the industrial independence of America. Just as Germany, prior to the war, exercised and maintained a complete monopoly of the dye and chemical industries, it is equally true that she controlled completely this most essential of all war minerals tungsten which was so indispensable in speeding up our ship and gun program. How far 750 PROCEEDINGS OF AMERICAN MINING CONGRESS the increasing importance of future events in countries bordering on the shores of the Pacific may become it is not vouchsafed us to know. Plainly, the part of our tariff system which affects this mineral and its products is one which needs prompt attention. In this connection, the following sentence from the President's message calling this special session of Congress is worthy of consideration: "The experiences of the war have made it plain that in some cases too great reliance on foreign supply is dangerous, and that in determining certain parts of our tariff policy domestic con- siderations must be borne in mind which are political as well as economical." AMERICAN CITIZENSHIP 751 AMERICAN CITIZENSHIP Stirring Address Before The American Mining Congress by GOV. A. H. ROBERTS, of Tennessee I esteem it a peculiar pleasure, as well as a very high honor, to have an opportunity this afternoon to speak a word to this great body of representative citizens of America, upon the one issue now confronting the people. I may say, at the outset, that there is but one issue in America today, and that issue is whether or not a Government of the people, by the people and for the people shall perish from the earth. [Applause.] Those of us who were intimately and directly connected with the world war, by having a son or other relative engaged in that great struggle, and especially those of our people who had the honor of going abroad to fight for freedom and for civiliza- tion, felt that, when Germany ran up the white flag on Novem- ber 11, 1918, and when the black eagle of Germany lay dead in the pit, all danger to free governments had passed away ; we thought that, when the Romanoff and the Hapsburg and the Hohenzollern had been driven from their thrones, and when the doctrine that "might makes right" had been swept away by the Allied armies, man, perhaps throughout the ages, would enjoy the freedom and the civilization and the liberty that had been won or saved at so great a cost. That war was fought for the determination of one specific principle, whether or not "might makes right" in the world, or, otherwise stated, whether the people of the earth have a right to set up for themselves free governments of their own choice. Our great President stated, when he stood at Mount Vernon on July 4, 1918, in defining in a single sentence the purpose of that great struggle : "What we seek is the reign of law based upon the consent of the governed and sustained by the organ- ized opinion of mankind." That, my fellow-citizens, was the heartbeat of every American citizen, of every man throughout the world who loved liberty, and today that statement is as true as it was on the Fourth of July last year. What we seek now is the reign of law based upon the consent of the governed 752 PROCEEDINGS OF AMERICAN MINING CONGRESS and sustained by the organized opinion of mankind. What we are fighting now is the principle of a government of class a doctrine of hate, a government by the masses, under a flag that flies over people who are taught to love each other. Crime Follows War After every great war there has followed a crime wave. It was so even in the Revolutionary War. The first President of this republic, in a letter written soon after the great crime wave had begun to sweep over the thirteen colonies, made a statement that is pertinent now, and I think it is worth repeat- ing, because I believe that the one thing now most needed is for the people of this country to turn back to the teachings and the doctrines and the principles of the fathers, to go back, if you please, to fundamentals, and that, now if we would hark back to those principles, it would be but a short time until these crime waves, these false doctrines, these governmental heresies, would be driven from America. The father of our country made use of this language, in speaking particularly of Shay's rebellion in Massachusetts: "What, gracious God, is man that there should be such incon- sistencies, and perfidiousness in his conduct? It was but the other day that we were shedding our blood to obtain the Con- stitution under which we now live, and now we are unsheath- ing our swords to overturn it. The thing is so unaccountable that I hardly know how to realize it or persuade myself that I am not under a dream." How applicable that statement is! How unaccountable is this inconsistent thing in this country that all over our land there should be evidences that a disease afflicts the republic, that the life blood of a nation has been poisoned by anarchy, by socialism, by Bolshevism or syndicalism ! In Chicago this disease manifests itself in the form of a race riot; in Washington, perhaps, in the same form; in Omaha, in Arkansas, all over the country, we see these symptoms, clear and unmistakable, of a poison that has been injected into the heart of the republic. The seed of this terrible disease was brought to our shores from foreign lands. We can very well understand how, under the despotism of the Old World, men who have been struggling for generations for a bare existence AMERICAN CITIZENSHIP 753 should be taught to hate their over-lords. But, fellow-citizens, in a country like ours, where all men are free, it is unthinkable and unaccountable that the seed should find lodgment in our soil, and that it should germinate and grow and bear the bitter fruit that we now see all over the country. Get Back to Fundamentals As I said, it seems to me that the pressing need of the hour is for us, as Americans, to go back to the republic, back to fundamentals. Le us inquire into the nature and character of our Constitution, the greatest document ever written by the hand of man. It was said by William Pitt that it will be the admiration of all ages and the pattern for all future govern- ments, and Gladstone pronounced it the greatest product of the brain and purpose of man. Here we have this great docu- ment that guarantees to every citizen three separate independ- ent rights. I sometimes liken our Constitution and our system of government to a great structure that stands upon three pillars. If either of these pillars is undermined, the structure must fall in a heap of ruins upon the ground. This Constitu- tion guarantees to every citizen, in the first place, the protec- tion of his life; second, it guarantees to him his liberty, and third, it guarantees to him his right to individual ownership of property. Let us look at these three principles for just a moment. The most sacred and priceless gift that any man has is his life. Our Constitution guarantees that every citizen, before being deprived of his life, shall be tried by a judge and a jury of twelve, with the right to meet the witnesses face to face. Every element of the offense must be made out beyond a rea- sonable doubt before he forfeits his right to his life. All over this republic now, not only in the South, but in the North as well, we see the angry mob seizing the helpless victim, denying to him this constitutional right and taking his life in haste and anger, and often the life of an innocent man. This danger, my friends, imperils the life of the republic, and it is the duty of every citizen who loves the flag, who believes in our institu- tions, to fight this mob propaganda, to insist always that every citizen, whether white or black, shall be protected in this, his most sacred right [Applause.] It is a source of great pride 754 PROCEEDINGS OF AMERICAN MINING CONGRESS to be able to say that since I took the oath of office not a single human being has lost his life in Tennessee at the hands of a mob. [Applause.] Liberty Assured by Constitution The next fundamental principle of government is that the citizen shall be protected in his liberty. What does that mean, fellow-citizens? It means the right to follow any vocation he will, tke right to work for whomsoever he will [applause] and wherever he will. When our fore-parents transgressed the law and were driven from the garden, the edict went forth from Jehovah that man should earn his bread by the sweat of his brow; that is the law of life; every man is enjoined to work at some honest toil. All men are not expected to follow the same vocation; indeed, the parable of the talents is applicable to us all. Some are supposed to do some things, and others other things, but every man is required to use his talent, and the law of life is a law of work; it is a law of honest effort and honest toil, and the great trouble with the world today is that it is trying to repeal that Divine law and get away from work. [Applause.] "Six days shalt thou labor" is not an idle state- ment; it is the language of Holy Writ; yet that statement, too, that law of life, too, is now sought by large elements of our people to be amended so as to read "five days" instead of six. [Applause.] All Men Should Work The world does not owe any man a living; no man born of woman is too good to work; no woman who lives, no matter how be jeweled her hands, is too good to work at some honest calling. [Applause.] One great trouble with the world today is that it is trying to get away from work. We must teach a new doctrine ; we must teach a new gospel in the world that every man should work as much as he can, rather than as little as he can. [Applause.] This struggle, my friends, of large portions of our people to work just as little as they can is in direct violation of this law of our very existence. [Applause.] Every man must give back to the world, in service, more than he takes from the world. We are all born into the world with AMERICAN CITIZENSHIP 755 a mission, with a high duty to perform to mankind, and every man sins not only against God, but his fellow-man, when he re- fuses to give back in service more to mankind than he takes out of the world's storehouse. Union Violates American Principles Today we find men in large numbers who deny the right to some men to work, unless, perchance, they belong to some par- ticular organization. That is in violation of the spirit of our institutions. [Applause.] It is an attack upon their very lib- erties. The President of this republic, the Governor of this State, the Mayor of this city or the judge on the bench has no right to say to any man what calling he must choose, what vocation he must select, where he goes, whether he goes to one city or the other to live, for what employer he shall work or what his wages shall be. Whenever any man or set of men undertake to infringe upon the individual and constitutional right of the citizen, he thereby assails one of these pillars of our Government. [Applause.] That is a sacred right ; it is a fundamental right, without which no free government can exist. [Applause.] The people of this country have made up their minds, as I believe, once for all, that they will not surrender a hair's breadth of their rights or liberties under the Constitution of this republic. [Applause.] The next right that our Government guarantees to every man is the fruit of his own toil. If a man is required to work, then it necessarily follows that there will be something pro- duced, and hence we say that the laborer is worthy of his hire. We say that the man who does not toil and care for his own family is worse than an infidel. Wo say that any man who toils is entitled to the fruits of his own toil, and that it is a crime for any other man against his will to deprive him of the fruits of that toil. [Applause.] Thou Shalt Not Steal My fellow-citizens, away back in the beginning of time, when the law was first given by Jehovah, written upon a tablet of stone, one of the ten fundamental laws that were to regulate 756 PROCEEDINGS OF AMERICAN MINING CONGRESS the conduct of all humanity was stated in these words : "Thou shalt not steal/' Analyze that commandment and see what it means. It means that one man who by his toil creates wealth is entitled to use and enjoy that wealth according to his own pleasure so long as he does not interfere with the rights of his neighbor. It means that if any other man, by force or vio- lence, or against his will, takes that property he sins not only against God but against the laws of man, based and predicated upon the Book of Books. We have in this country today a dangerously large element of people who do not believe in private ownership of property. They are battering against this one pillar of our institutions. They want in a sort of insidious way to attack it ; they do not dare to come out in the open and say that this old principle, this principle taught in Holy Writ, this principle that has been demonstrated by the wisdom of the ages in the experience of mankind to be a sound one governmentally that the individual shall be safe in his property rights they do not dare attempt to sweep that away by one foul blow, but they would pull one stone out of the pillar at a time. They say they believe in the Government ownership of railroads and in the nationalization of coal mines. Destruction of Republic I say those who are attacking this pillar of the republic are trying to pull out a stone at a time. Government ownership of railroads will be followed by the Government ownership of the coal mines and other mines, then by Government ownership of farms and then by Government ownership of everything. Then the individual is swallowed up in the mass and man as a man becomes a nonentity. That is the object, not only of thousands, but of hundreds of thousands of people in this republic now, and I tell you, my fellow-citizens, it seems to me that the duty of the hour, the imperative, all-important duty of the hour, is that every true American that loves his Constitution and his flag is to stand by the principles of the fathers and put his foot upon these three fundamental principles and say, with old Andrew Jackson : "By the eternal the republic shall live." [Applause.] When you surrender any one of these fundamental rights of AMERICAN CITIZENSHIP 757 the citizen you have surrendered everything, and that great structure, that magnificent structure of government, will lie in a heap of ruins all around us. Tennessee Awakens In the State of Tennessee we have felt that the proper thing to do is not to wait until our institutions have already been shaken, but to begin early to warn the people of our State against the dangers that threaten them ; to have them organize themselves into law and order leagues; to have them teach the children in every school in Tennessee the fundamental principles of our Government and the dangers that menace it. On the 14th of October last a large convention of representa- tive citizens from every section of Tennessee and from all walks of life gathered in the capital at Nashville, and as a result of that conference a committee of 15 distinguished citi- zens was selected. Those 15 citizens have been carrying on, actively and aggressively, a law and order program, the mean- ing of which is that there is no room in Tennessee for a Bolshevist or an anarchist [applause] that the law in its majesty and integrity must be upheld in every section of Tennessee; that the white man and the black man shall have full protection of every constitutional right and guaranty. [Applause.] As a result of it, fellow-citizens, all danger of anything that looked like race trouble is passing away, and today we have in Tennessee the very best of feeling between the two races. Only yesterday I addressed quite a large assembly of negroes and it was heartening and reassuring to know the feeling of kindness that exists there today between the white man and the black man. This is one of the things that is especially im- portant in the South, and the negroes of my State want only justice, simply even-handed justice, and the best people of Tennessee are determined to see to it .that they get it. [Applause.] Law and Order Movement We have had in that State a law and order week. Every minister of the Gospel, of all creeds and sects, on November 9, 758 PROCEEDINGS OF AMERICAN MINING CONGRESS preached a sermon on the subject of law and order and plead for the faith of the fathers. On one day in the week every school in Tennessee had exercises of a patriotic character. The teachers are teaching the children to love the flag. The last Legislature, which adjourned some four or five months ago, put upon the statute books a law, which I was delighted to approve, that forbids any alien who is unwilling to take the oath of alle- giance to the United States to teach in any school in Tennessee supported by public funds, from the kindergarten to the Uni- versity of Tennessee. [Applause.] We have cleaned up our schools, we have had a house-cleaning, and I think it would be well for every other institution to have a house-cleaning and get rid of high-brows and parlor Bolshevists who are undertaking to corrupt the minds of the youth of America. [Applause.] What you would have the next generation do you must teach in the schools of the country today. Virginia's Declaration of Rights Early in 1776, even before Jefferson wrote the Declaration of Independence, an important convention was held in Virginia for the purpose of enunciating certain fundamental principles of government. The document then prepared was known as the "Declaration of Rights of Virginia," and Article 15 of that marvelous document reads thus : "No free government can be preserved but by a firm adherence to justice, moderation, tem- perance, frugality and virtue and by frequent recurrence to fundamental principles." My friends, that statement today is just as applicable as it was the day it was written in 1776. Patrick Henry was in that convention, Madison was there, Washington was there, others of the fathers were there. These are words of wisdom and, in my judgment, we ought to harken to these words ; we ought to put them into practice in our daily lives and in our Government. "No free government can be preserved but by a firm adherence to justice/' A square deal. No greater utterance was ever made by any living man. That is one of the things that we want to put into daily practice now in every State of this republic, in every municipal government, and we want to put that into practice in our industrial rela- tions, man to man even-handed justice. "Judge as you would be judged" is the Divine rule. In other words, it is a process AMERICAN CITIZENSHIP 759 of substitution put yourself in the other man's place. I was honored for several years in being a trial judge in my State. I never passed upon the rights of a citizen without putting to myself the question: "If he were on the bench and I were before the bar, how would I expect this question to be deter- mined, and what is the eternal right of this proposition?" [Applause.] Employer Must Face New Conditions Every employer is required to put that test, the Divine test, to his own conduct, and his own attitude and relations to his employees : "If I were the employed and he were the employer, what would I expect him to do ?" Having determined that, that is the thing that I will do, and thus satisfy the Divine law of justice, without which, the fathers said: "No free government can be preserved." We need this principle of justice applied everywhere through- out the republic, in our daily transactions with our fellow-men ; it is absolutely essential and vital to the preservation of proper relationship betwen employer and employee. Money-Mad World They not only said that we must firmly adhere to justice, but they said that we must firmly adhere to moderation, tem- perance, frugality and virtue. Today we see a saturnalia of extravagance throughout the world ; such a thing as frugality seems to have been lost from the vocabulary of the people of this country. There is extravagance of the wealth of the world at a time when the people of large portions of the world are hungry. It is a crime against the world to waste the products of human toil. We must firmly adhere to this principle of fru- gality if we are to save the state and the nation. We are also told that we must frequently recur to fundamental principles. It seems to me that a great many of the modern political heresies throughout this country are allowed to creep into the public mind because we do not follow this admonition of the fathers to recur frequently to fundamental principles. What are these fundamental principles of the Government? The fundamental rights of man, the individual rights of the 760 PROCEEDINGS OF AMERICAN MINING CONGRESS citizen. If we will be true to them there is no danger of the acceptance of all these modern heresies that would seek to transfer the power and authority of government from the sober councils of the courtroom, the legislative hall or the executive chamber to the angry mob on the streets. No pure democracy ever has been able to survive, and none ever will. [Applause.] I am a Democrat, but I am a Democrat under a republic. I believe in a republican form of government, in representative government. I do not believe in the government of the mob on the streets. A Dangerous Fallacy We have men in these latter days who are advocating the recall of judges and the revision by the populace of the decrees of courts. There was never a greater governmental fallacy, there never was anything suggested to a free people that was more directly in conflict with the fundamental principles of this Government. [Applause.] Jefferson believed and taught that the people are capable of self-government, not directly, but through their chosen representatives in other words, that the people are capable of selecting a judge who will determine all controversies justly and equitably; but he never taught that the mob was capable of determining for itself any question justly and equitably. I say these governmental heresies that are creeping into our system, especially in the municipality and the state, are destined to bear the bitterest of bitter fruit. Those who seem to believe that they are getting more rights are, as a matter of fact, endangering the very life of the republic they would up- hold and sustain. Tennessee has had the honor of furnishing three Presidents of the United States. The first one she furnished (Andrew Jackson) sprang from a log cabin and from poverty. The second was James K. Polk. The last was a tailor (Andrew Johnson) who could neither read nor write when he married, and whose wife taught him the rudiments of an education. No man who ever lived in America loved the Constitution and the flag better than Andrew Jackson. It was a frequent saying of Andrew Johnson, the great Commoner, as he went over the State of Tennessee, loved and admired by everybody, whether AMERICAN CITIZENSHIP 761 they agreed with him or disagreed with him as to his particular political views, that when he died he wanted his head pillowed on the Constitution of his country and his body wrapped in its flag, and when the old patriot died he was thus buried. Need More Patriotism My fellow-citizens, if we had more men in America today who loved the flag, who loved the Constitution like a bride- groom loves his bride, who, when they are buried, want their heads pillowed upon the Constitution and their bodies wrapped in the folds of the flag, we would have a different country. That is the great need of the hour. We are told by the radicals that this Government of ours must be destroyed. We are told by them that this great Gov- ernment is a government of the masters of industry. We are told that the Bible, on which our great Government rests, is a mere fable, and hence they would disregard it. For the last few weeks a great work is being done by the Attorney-General of the United States, Hon. A. Mitchell Palmer, in rounding up the "Reds" preparatory to their deportation. I hope that every "Red" in this country, from one end of it to the other, will be gathered up with all possible haste and deported to the land whence they came. [Applause.] They ought never to have been allowed to come to our fair shores. [Applause.] But now that they are here, our imperative duty is to deport them with all possible haste. Another thing, that is absolutely necessary is legislation that will empower the courts of this country, State and Federal, to annul orders and judgments under the naturalization law and whenever there is found any foreigner who has secured his naturalization by fraud and who is still an anarchist or syndicalist, the judgment should be vacated so that he might be deported, [Applause.] Treason Should Be Punished Strange as it may seem, some native-born Americans have embraced this false doctrine. They, too, must be dealt with as criminals. They are criminals. Where they need to be is in the jails or penitentiaries of this country. [Applause.] My friends, we have reached that stage in our development when we must have some additional definition of treason, the 762 PROCEEDINGS OF AMERICAN MINING CONGRESS highest crime known to the law. We have allowed the enemies of our institutions entirely too much latitude under the Bill of Rights, guaranteeing free speech and freedom of the press. We must go after those who are teaching the doctrines taught by the I. W. W., who, a few days ago, over at Centralia, Wash- ington, when they saw a few of the remnant of the American army marching along the street in celebration of Armistice Day, could not resist the temptation to shoot them down in cold blood. They say that they are anti-patriots; they say they hate militarism. There is nothing in the world that so enrages one of them as the uniform of his country, unless it be the flag of his country. It has been said that the flag of our country, the Stars and Stripes, is the most sacred emblem known to man, save the Cross alone. The American Legion The I. W. W.'s at Centralia, Washington, have made an issue in this country. They have joined issue with the American Legion. Let me say that I trust every young man in America who is eligible to membership in the American Legion will join it promptly, for this patriotic organization has unqualifiedly endorsed this movement to rid the country of anarchists and Bolshevists, and the head of the organization in Tennessee has notified me that if Tennessee is attacked by these emissaries of evil all that is necessary is simply to send him a telephone message and that the boys who wore the khaki over there and helped to win the victory for the world over Germany are ready to go at a moment's warning, and if they cannot get guns they are ready to go with clubs or anything else they can get in their hands to fight the enemies of our Government. [Applause.] These young men are the hope of the country. [Applause.] We are proud of them. General Joffre said in the presence of one of the noted ministers of Nashville, who was over there in Y. M. C. A. work, that the first battle of the Marne saved France and that the battle of Chateau-Thierry saved the world, and he might have added that the American soldier made vic- tory at Chateau-Thierry possible. [Applause.] What a great honor it is to be eligible to membership in the American Legion ! And, now that these boys of ours have made this great fight, now that they have covered themselves and us and the Ameri- AMERICAN CITIZENSHIP 763 can Army with imperishable fame and unspeakable glory, how ignominious and perfidious it would be for us to allow these new enemies of our institutions, preaching the same old doc- trine that might makes right, to overturn these institutions that these boys of ours saved! Germany proclaimed to the world that might makes right ; your anarchist proclaims to the world that might makes right. W. Z. Foster, who is one of the leading spirits in the steel strike today, in 1912, in writing upon this subject, used these words : "Might is right." It is the same old doctrine that our boys combated over yonder that we are called upon to face here again in this country. [Applause.] More Law and Order Leagues Needed There are two flags here in this country one is Old Glory and the other is the red flag of anarchy. Every man and woman among us is given an opportunity to take sides. "He that is not for me is against me ;" he that is not for the flag is against the flag ; he that is not for the Constitution is an enemy of the Constitution. We ought to learn where these enemies are ; we ought to ask the people of this country to stand out in the open and be counted. Let us see where they are. I wish that every State in this Union would organize Law and Order Leagues or American Legions, or call them whatever you will, and give every man a chance to become a member and if he won't then it would be known that he is an enemy. The plans outlined by Mr. Foster some years ago in his writings were to create all the discontent, unrest, class hatred, and whenever it was possible to have local strikes here and there, and by and by a general strike, then following that the revolt and then the revolution, and then to overturn the state. It is remarkable how this man's plans have been developed, and with what exactness they have been worked out in these latter years. Mr. Foster said in 1912 that our industries are so deli- cately interwoven that a general strike in transportation, in coal mining or in steel making would so disorganize industry in this country and put so many people out of employment that a revolution would be made possible. Notice, he names those three, and two out of those three today are out on strike, and Mr. Foster, speaking, it seemed, almost with the words of 764 PROCEEDINGS OF AMERICAN MINING CONGRESS prophecy as to how this thing would come about, said that the way was for the radicals to ingratiate themselves in the unions and take charge of things and ultimately, by means of the general strike, bring about the revolution. His dream is, as he says, a country without a God and without a state and without law. Although now he disavows with his lips these utterances, yet in his actions he is putting them into practice every day. I tell you, my fellow-citizens, the duty, it seems to me, that devolves upon us is to warn the honest, patriotic, liberty-loving laboring man, whether he is in the union or not, of the dangers that lie out in front of him if he follows these radical leaders. I believe but a very small percentage of union labor in this country has any radical ideas or tendencies at all. I believe a very large majority of them are just as patriotic as any of us, but the danger lies in the fact that some of these radicals have gained places of power in labor organizations and are using this power to the country's hurt. Americans Should Organize If I could say one word that would be worth your carrying home with you, it would be that you go to your respective States ; that you confer with the authorities there ; that you organize the patriotic citizens and then have these organiza- tions worked out to the minutest detail; have them spread all over your State, to every town, every hamlet, every school- house, every community center, and by and by such a mighty force of patriotism will thus be generated that in the near future anarchy will be a thing of the past in America. [Applause.] "Old Glory" Still Waves Our State has been likened to a ship ; it is a beautiful simile. This ship of state now is riding the billows, the waves are roll- ing high, the storm is all about us, the lightnings are flashing, the dark clouds are rolling over us, there is mutiny aboard the ship, but "Old Glory" is still waving at the masthead and, not- withstanding the fact that these mutineers have a flag there, notwithstanding the fact that they have bombs and stilettos, notwithstanding the fact that many of them are assassins at AMERICAN CITIZENSHIP 766 heart and red-handed murderers and that they are seeking to destroy the old ship, we are going to ride on through the storm in safety. It may be a year, five years or ten years, but we are going to ride through the storm out into the sea, the sunlit sea of peace and justice and happiness and contentment. Then, indeed, will we be able to congratulate ourselves that we are living under the greatest Government on the face of the earth. [Applause.] 766 PROCEEDINGS OF AMERICAN MINING CONGRESS GRAPHITES AND BOND CLAYS FOR CRUCIBLE MAKING PURPOSES 1 By R. T. STULL, U. S. Bureau of Mines (Read before The American Mining Congress, St. Louis, Mo., 1919.) The average composition of a graphite crucible mixture would fall within the limits 50 to 55 graphite, 40 to 35 bond clay, to 10 sand and to 10 pot shell. Graphite crucibles lend themselves admirably to the melting and pouring of metals. On account of the high graphite con- tent, the crucible is a good conductor of heat, which assists rapid heating and melting of the charge. The graphite cruci- ble withstands sudden temperature changes without serious cracking or spalling when drawn from the furnace and poured. The composition when properly made is such that it does not fuse at the highest temperatures employed in the production of crucible steel. Graphite is more resistant to slagging action than clay and maintains reducing conditions, which prevents oxidation of the metal in contact with it. On account of the smooth, unctuous properties of the graphite grains, the metal pours readily without sticking to the walls of the crucible. The functions of the clay are to impart plasticity to the crucible mixture in order that it may be moulded, and to bind the graphite grains together and impart strength. The func- tion of sand, which is sometimes used in crucible mixtures, has not been definitely understood. Its principal value seems to lie in the fact that it is a gritty, non-plastic material and tends to overcome the slipperiness or sliding tendency of the graphite during moulding of the crucible, and thereby reduces flaws by reducing the tendency to laminate. Athough the sand is subjected to the sudden volume changes which quartz undergoes during heating and cooling, the amount of sand present is so small that the strains set up by the volume changes are not sufficient to cause cracking of the crucible. The principal function of pot shell (discarded crucibles crushed and screened) is very similar to that of sand, in that By permission of the Director, U. S. Bureau of Mines. GRAPHITES FOR CRUCIBLE MAKING PURPOSES 767 it assists in overcoming laminations during moulding. It has the added advantages of imparting better heat conductivity, and is not subjected to the volume changes which quartz sand undergoes, hence could be used in larger quantities. The two important constituents to be considered in the com- position of graphite crucibles are suitable bond clays and suit- able graphites. Specifications for the graphite require that it shall contain not less than 85 per cent, graphitic carbon, and shall contain very little or no material passing the 100 mesh screen. No uniform specifications exist for the bond clay, pot shell nor sand, since each crucible manufacturer selects these materials according to his requirements. Up to the year 1914, the majority of graphite crucibles made in America were composed largely of imported materials. It was considered that crucibles made from Ceylon graphite bonded with German Klingenberg clay were superior to those made from domestic materials. When the war came on the graphite crucible situation became rather acute. The importa- tion of German bond clay was shut off and the stocks on hand were rapidly depleted. The abnormal demand for crucible steel, brasses and other alloys greatly increased the demand for graphite crucibles. When the United States became involved in the war it was found necessary to curtail imports in order to conserve more ships to carry men and material to France. Importation of Ceylon graphite was, therefore, reduced and crucible makers were restricted to the use of domestic graphite up to a maxi- mum of 25 per cent. When the stocks of Klingenberg clay were exhausted it was necessary to employ domestic clays. There are no two clays identically the same in all their physical properties, and since some crucible makers had depended largely upon imported clays, they were not familiar with the domestic clays and found it necessary to do considerable experimenting in order to secure a well-balanced mixture and a satisfactory crucible. It was fortunate that there were comparatively large stocks of Ceylon graphite in the United States when the embargo came. Each crucible maker found it necessary to work out his own salvation individually. He scarcely had the bond clay 768 PROCEEDINGS OF AMERICAN MINING CONGRESS question well in hand before he was required to substitute a certain amount of domestic flake graphite for the Ceylon. The abnormal demand for metals necessitated a speeding up in production, and four or five melts were made in a crucible in the same time that three were formerly made, which materially shortened their life. The workmen in a very large proportion of the foundries were paid on tonnage output, and it was not of primary impor- tance to them whether one or ten crucibles were required to produce a definite quantity of metal. The increase in the cost of crucible materials and labor and the increase in the demand for crucibles naturally brought about a substantial increase in the selling price of the crucible. Part of the foundries were operating under "cost plus" con- tracts, and the demands for the metal and its immediate de- livery were so great that foundries received any price within reason that they cared to ask for their products. This condi- tion resulted substantially in the elimination of competition, and the number of crucibles used and their cost per unit of metal produced did not receive serious consideration. The necessity of the crucible maker of substituting domestic clays and graphites for the imported kinds before he was given opportunity to experiment in order to adjust his mixtures and working conditions, the speeding up in the production of metals and its consequent increased severity upon the crucible, to- gether with the indifference of the workmen, all contributed to decrease the life of the crucible from 5 per cent, to as much as 40 per cent, as compared to pre-war times. At the present time, when conditions are swinging back to normal, it is to be expected that the average life of the crucible has increased, and such is the case. One of the largest pro- ducers of crucible steel reports that his foundries are re- ceiving as good service from crucibles now as they did in pre-war times. So far as the writer has been able to learn, no Klingenberg clay has been used by crucible manufacturers for more than a year. With the exception of one English clay, the data at hand indicates that all domestic made graphite crucibles at the present time are bonded with American clays. GRAPHITES FOR CRUCIBLE MAKING PURPOSES 769 There are a number of domestic bond clays in use by differ- ent crucible manufacturers, and, since the physical properties of these clays vary considerably, it is to be expected that crucibles in which they are used will also vary in service- ability. That some graphite crucibles containing domestic bond clays are giving as good service as those formerly containing the Klingenberg clay is evident, and careful experiments made by the Ceramic Experiment Station of the U. S. Bureau of Mines indicate that there are two domestic bond clays superior to the Klingenberg clay for brass-melting crucibles, and recent tests on a number of crucibles under steel-melting practice show 13 different domestic clays to be superior in service to the Klingenberg clay. Independence so far as bond clays for the manufacture of graphite crucibles is concerned is assured, and it is a foregone conclusion that the grip which Klingenberg clay once held upon the crucible trade has been broken. The sentiment among crucible makers seems to be that they will never return to the use of Klingenberg clay. Before the Shipping Board could intelligently restrict im- portations on graphite it was necessary to know to what extent domestic graphite could be substituted for the imported varieties. No data on the subject was available, and the opinions expressed by crucible manufacturers at the hearings indicated that it would be detrimental to substitute domestic flake for the Ceylon graphite. In the graphite crucible investigations undertaken by the Ceramic Experiment Station of the U. S. Bureau of Mines the first problem considered was to determine the effect upon the life of the crucible of substituting Canadian and Alabama graphites for the Ceylon. Four series of crucibles 2 were tested in two different brass foundries on three different brasses. The first series consisted of seven members marked Nos. 50 to 56, inclusive. Nos. 50 to 53 represented mixtures in which Ceylon graphite was replaced by Canadian flakes up to 25 per cent. Canadian. Mem- bers 54, 55 and 56 contained 25 per cent. Canadian graphite 2 Stull, R. T., "Behavior under Brass Foundry Practice of Crucibles Containing Ceylon, Canadian and Alabama Graphites," Jour, of the American Ceramic Society, Vol. 2, No. 8, March, 1919. 770 PROCEEDINGS OF AMERICAN MINING CONGRESS and 75 per cent. Ceylon, and were made for the purpose of determining the effect of varying the bond clay content. The compositions of the crucibles of Series I are given in table 1. TABLE l Composition, Series I Per Cent. Mark No. 50 No. 51 No. 52 No. 53 No. 54 No. 55 No. 56 Ceylon graphite 55.0 49.5 45.4 41.3 37.5 37.5 37.5 Canadian graphite 5.5 9.6 13.7 12.5 12.5 12.5 Dorset ball clay 35.0 35.0 35.0 35.0 35.0 37.5 40.0 Pot shell 10.0 10.0 10.0 10.0 10.0 10.0 10.0 Georgia kaolin 5.0 2.5 Per cent. Ceylon graphite 100 90 82% 75 75 75 75 Per cent. Canadian graphite 10 17% 25 25 25 25 Ten No. 70 size crucibles were made from each different batch composition, and were tested on two different brasses called No. 3 and Ml in foundry No. 1. Compositions of the brasses are given in table 2. TABLE 2 Brass Compositions No. 3 Ml Per Cent. Per Cent. Copper 78.00 71.00-73.00 Zinc 12.00 19.25-21.25 Lead 7.00 5.50- 6.50 Tin 3.00 1.50- 2.50 The foundry operated a battery of 36 pit furnaces of the natural draft type for a period of 12 hours per day on coke, which must be clean, hard and low in sulphur. The fire was kindled in the morning and a layer of coke placed on top. The crucible was set on the fuel bed and a mixture of coarse and fine coke packed in the space between the crucible and the inner furnace wall. When the crucible attained a red heat a ring cut from the upper part of a discarded crucible was placed on top to prevent notching and the charge introduced. GRAPHITES FOR CRUCIBLE MAKING PURPOSES 771 After the crucible was charged, it usually required from to 2 hours to melt and heat the metal to the proper pouring temperature. When ready for pouring, the crucible was re- moved from the furnace by well-fashioned tongs of the grab type and lowered into a shank and carried to the moulds. If the metal was too hot for pouring, it was cooled by inserting a cold iron bar. The crucible was returned to the furnace after pouring and recharged. When the pouring temperature was correct upon removal of the crucible from the furnace, the whole operation of removing, pouring and returning the crucible to the furnace required about 6 to 7 minutes, during which operation the crucible cooled to a dull red or even black heat. TABLE 3 Tests on Series I Average Number of Heats On No. 3 On Ml Average of Mark Brass Brass No. 3 and Ml No. 50 13.17 33.75 23.46 No. 51 9.75 33.17 21.46 No. 52 11.17 30.00 20.58 No. 53 8.83 18.00 13.41 No. 54 5.71 18.00 11.85 No. 55 8.57 18.33 13.45 No. 56 7.71 25.33 16.52 The No. 3 brass was more severe on the crucibles than Ml. When the charge had melted a shovel of charcoal and a hand- ful of carbonate of soda were thrown on top, while "Hilton's" brass cleaner was used in Ml. The fluxing action of the car- bonate of soda produced a strong corroding action on the bond clay in the crucible, whereas "Hilton's" brass cleaner attacked the crucible very little. The average life of the crucibles of Series I expressed in the number of heats the crucibles withstood before failing is given in table 3. The number of heats reported under the average for No. 3 and Ml brasses represents the average for 10 crucibles tested for each different crucible member of the series. A falling off in the serviceability of the crucibles is noticeable with replace- ment of Ceylon graphite by Canadian flake. In No. 50 the 772 PROCEEDINGS OF AMERICAN MINING CONGRESS graphite was entirely Ceylon. In No. 53 the graphite portion consisted of 75 per cent. Ceylon and 25 per cent. Canadian. As the Canadian graphite increased at the expense of the Ceylon up to 25 per cent, replacement, there was a falling off in the life of the crucibles. The life of the crucibles decreased nearly 33 per cent, on No. 3 brass, 46% per cent, on brass Ml, and nearly 43 per cent, on the average for both brasses. Series II Series II consisted of two members, Nos. 58 and 59, and was made for the purpose of comparing the performance of cruci- bles containing 100 per cent. Canadian graphite to those con- taining 75 per cent. Ceylon and 25 per cent. Canadian graphite. Fifteen crucibles of each of Nos. 58 and 59 were tested on a brass of the composition of 70 per cent, copper and 30 per cent. zinc. About half the charge was scrap and half new metal. Salt and charcoal were used as flux. The compositions of the crucibles are given in table 4. TABLE 4 No. 58 No. 59 Ceylon graphite 41.25 Canadian graphite 55.00 13.75 Ball clay 35.00 35.00 Pot shell 5.00 5.00 Sand 5.00 5.00 The crucibles were tested in foundry No. 2, which operated 64 natural draft coke-fired pit furnaces. The operations were very similar in this foundry to those in foundry No. 1, except that no protecting ring was used in charging the crucibles. The crucibles, therefore, became considerably worn down and notched during charging. Considerable care was exercised in handling the crucibles in foundry No. 1, whereas in foundry No. 2 rough handling seemed to be the rule. The gripping portion of the tongs was narrow and cut into the crucible when undue pressure was applied, and was respon- sible for shortening the life of the crucible. No pouring shank was used, but instead the crucible was carried and poured by the lifting tongs. After pouring the crucible was loosened from the tongs and dragged back across the floor and set in the furnace for recharging. GRAPHITES FOR CRUCIBLE MAKING PURPOSES 773 The average number of heats for the 15 crucibles of each of the members was : No. 58, 12.13 heats ; No. 59, 12.60 heats. The results show a difference of less than % heat. Crucibles No. 58, containing all Canadian graphite, gave nearly as good service as No. 59, containing 75 per cent. Ceylon and 25 per cent. Canadian graphites. Series III Series III was made in order to observe the effect on the life of crucibles by replacing Ceylon graphite by Alabama flake graphite. The series consisted of five members, four crucibles of No. 60 size being tested for each member. The crucibles were tested in foundry No. 1 on No. 3 and Ml brasses. The tongs were fashioned to handle No. 70 size crucibles, and the No. 60 crucibles suffered more or less from unequal squeezing. Table 5 gives the batch compositions of Series III. TABLE 5 Compositions, Series III Al A2 A3 A4 A5 Ceylon graphite 55.0 42.5 30.0 17.5 Alabama graphite 12.5 25.0 37.5 53.0 English ball clay 20.0 20.0 20.0 20.0 20.0 Mississippi bond clay 10.0 10.0 10.0 10.0 10.0 Kentucky ball clay 5.0 5.0 5.0 5.0 5.0 Illinois kaolin 5.0 5.0 5.0 5.0 7.0 Glass sand 5.0 5.0 5.0 5.0 5.0 The results of the tests given in table 6 express the average number of heats on the two different brasses and on the aver- age for both. TABLE 6 Tests, Series III Average Number of Heats On Brass On Brass Average on No. 3 Ml No. 3 & Ml Al 7.0 8.5 7.75 A2 8.0 11.0 9.75 A3 11.5 24.0 17.75 A4 8.5 20.0 14.25 A5.. 13.5 28.5 21.00 774 PROCEEDINGS OF AMERICAN MINING CONGRESS The results indicate an improvement in the life of the crucible on the substitution of Alabama graphite for the Cey- lon. However, since only four crucibles of each different com- position were tested, the number of crucibles tested was altogether inadequate from which conclusions can be definitely drawn. However, it can be said that the Alabama flake graphite is very promising as a high-grade crucible material. Series IV Ceylon graphite in its natural state occurs in more or less massive form and can be crushed and screened to almost any desired degree of fineness, giving a product of a granular or splintery structure. On the other hand, the Alabama graphite when prepared for market seldom exceeds 20 mesh in fineness and occurs in thin, flatplate-like flakes. The superior cruci- ble making properties claimed for Ceylon graphite is said to be due largely to its grain-like and splinter-like structure when prepared for crucible making. If the granular form is superior to the flake form for cruci- ble purposes, it was thought that if the Alabama flake graphite