UNIVERSITY OF CALIFORNIA. GIFT OF ....... C^e Class Report of Proceedings OF THE AMERICAN MINING CONGRESS Tenth Annual Session Joplin, Mo,, November 1146, 1907 PUBLISHED BY THE AMERICAN MINING CONGRESS At the Office; of the Secretary, Denver, Colo., 1908 Report of Proceedings OF THE AMERICAN MINING CONGRESS Tenth Annual Session Joplin, Mo., November 11-16, 1907 PUBLISHED BY THE AMERICAN MINING CONGRESS At the Office of the Secretary, Denver, Colo., 1908 Copyright, 1908, by the AMERICAN MINING CONGRESS DENY E.R, COLO. Press of the Western Newspaper Union, 'Denver fh, (O O J w CO < C en c - C daho o3 c "3 'O ~s fa fa 0) 0) 05 *Puebl c 03 to oi C w | 5 A A U Santa .P Boise K 'o PQ to 'o PQ 09 7. PQ a' O PQ ; ) OJ 0) s u IDENT. to - a fi ? tg-omer tgomer B "C PH - ~ b 7. 03 shards. hards. . to T3 i to H P4 'O o oi o oj p r o _C Ed 0> o PH g h PQ ffl fa fa PQ 03 -C W a a a a 5 4 4 PQ' PQ' 4 S3 hi ^ * HS* ti c c o a ci o ffi 5 "o c j c c a c C O H j D ; . ; 03 "S 3 . J to H H 6 ^ p o O in cd X H o .0 o U of 0) of 0) cd 5 o3 -d o r-" Q 03 i i pq PQ p 1 H 0) Q hs K j t Q Oi oo O5 05 05 OO o -. i-H o O5 CO O5 o O5 Lffl O O5 o O5 i 9 ^ .J .jj 6* _r . jr ffl Q< M :- o 2 ^ * 1-3 1-3 H-3 to ^ s? 1 G I fi i CO | c y g X 5 Invitation to Trans-Mississippi Commercial Congress 106 Members, annual meeting of 42 Members, list of 60 Nominating Committee 44 Nominating Committee, report of 48 Resolutions Committee 30 Revision of Mining Laws Committee, report of 28 Safety in Coal Operations Committee, report of 113 Smelter Rate Committee, report of 71-78 Secretary's Report 42 Telegram to President Roosevelt 34 Vertical Side Line Law Committee, report of 38 Protection to Mining Investors Committee, report of 88 Place of Meeting Los Angeles, California 110 Douglas, Arizona 110 Chicago, Illinois 110 Columbus, Ohio 110 Reno, Nevada 110 PAPERS AND ADDRESSES Address of Welcome, Gov. Jos. W. Folk 9 Address of Welcome, Mayor Jesse F. Osborne 13 Response, by Judge J. H. Richards 15 Response, by Congressman J. C. Floyd 16 Response, by Col. T. J Vest 18 Response, by Hon. John Dern 19 Response, by Col. Thomas Ewing 22 Response, by Richard Riepe 23 Response, by Dr. Victor C. Alderson . . . . 25 Response, by Dr. J. A. Holmes 26 Response, by Dr. George Otis Smith 28 The Great Southwest The Arizona Delegation 97 The Importance of the Mining Industry to the Commercial and In- dustrial Life of a Nation H. J. Cantwell 115 A Remedy for the Law of the Apex Dr. James Douglas 122 The History of Gold and Silver James W. Malcolmson 129 The Possibilities and Limitations of Geological Survey Work as Applied to the Mining Industry George Otis Smith 138 International Mining Exposition, Madison Square Garden, New York William M. Porter 149 The Protection of Mineral Lands from Agricultural, Timber Entry, or Other Patent Lewis E. Aubury -. 152 The Man Who Stakes Claims Everywhere: Does He Assist or Retard the Development of the Mining Industry? Randall H. Kemp 155 Sliding Scale Royalty Louis D. Huntoon 158 183243 4 INDEX Mining Engineering Education in the United States Dr. Victor C. Alderson 162 What Can the Profession Really Expect from the Mining School Gradu- ate? Milnor Roberts 172 Secondary Technical Education Applied to Mining Prof. Lewis .Young : 178 Relation of the Mining School to the Mining Industry Prof. Robert H. Richards 185 Some Suggestions Concerning the Training of Mining Engineers Robert Peele 189 The Value of Correspondence Instruction to the Mining Man H. H. Stoek 199 Gypsum: Where Found, Its Use and Its Manufacture C. O. Bartlett . . .215 Tariff on Zinc Ores S. Duffield Mitchell 219 How Long Will Our Coal Supplies Meet the Increasing Demands of Commerce? Edward W. Parker 239 Prospecting for Oil and Gas Dr. Erasmus Haworth 247 The Deflocculation of Non-Metallic Amorphous Bodies Edward Good- rich Acheson 256 Will tlie Production of Gold in the World Keep Pace With the Increas- ing Demands of Commerce and Trade? Dr. Waldemar Lindgren. .265 Discussion of Same 37 Conservation of the Nation's Mineral Resources Dr. J. A. Holmes . . . .272 Lead and Zinc Resources of Missouri Dr. E. R. Buckley 2^2 Annual address of the President Hon. John H. Richards 298 COMMITTEES Committee on Credentials 53-27 Committee on Revision of Mining Laws, report 28 Committee on Resolutions 30 Committee on Vertical Side Line Law 38 Committee on Nominations 44 Committee on Smelter Rates, report of 71-78 Committee on Protection to Mining Investors, report of 88-113 Committee on Safety in Coal Mining Operations . ,- 113-114 RESOLUTIONS Reservation of Minerals in Land Patents Otherwise Classified Lewis E. Aubury : 30-52 Licensing of Mining Engineers W. H. Graves 30 Duty on Zinc Ores Samuel R. House 31-85 Department of Mining H. S. Joseph 31-109 Creating Official Experiment Station for American Mining Con- gress John Dern 40-99 Concerning Fraudulent Mining Schemes F. C. Vincent 42-97-113 Of Thanks The Committee 84 Concerning Reports on Mining Properties by Officers of the Con- gress H. J. Cantwell 85-97 Concerning International Mining Exposition Frank E. Wire 86 Bureau of Mining and Engineering Investigation J. H. Richards . . 86-87 Reports on Standing of Mining Engineers Dr. E, R. Buckley. .32-52 Removal of Restrictions on Sale Indian Land Allotments W. T. Si- dell 39-96 Invitation to National Association of State Mining Schools Victor C. Alderson 40-53 Concerning Amendments to Alaskan Mining Laws J. F. Callbreath. .104 Concerning Disposition of Public Lands J. H. Richards 105 Resolutions of Thanks > INDEX 5 To Dr. E. R. Buckley 111 To Smelter Rate Committee Ill To Mining Fraud Committee Ill ] To Citizens of Joplin 84 | To President Richards 114 | To Secretary Callbreath 114 SPEAKERS Acheson, E. G. 256 Alderson, Victor C 101 Buckley, E. R 32-34-37 Brimhall, Geo. H Iu3 Callbreath, J. F 36-46-50-114 Cantwell, H. J 36-103-104-109 Daniels, W. P ' 35 Dern, John " 50-84-101 Dorsey, Geo. W. E 102 Downey, C. J 88-107-113 Garfield, James R 40 Gregg, H. H 85 Galigher, Carl 47-112 Hague, Jas. D 38 Holmes; J. A 48 Howell, T. M 103 Ingalls, W. R 28-81 Joseph, H. S 29-47-70-77-81-83-102 Kemp, Randall H 31-49-87 Lindgren, Waldemar 37 Los Angeles Mining Stock Exchange 38 Malcolmson, James W 82 Mills, W. F. R. 102 Parker, E. W 239 Richards, J. H 33-35-45-51 Riepe, Richard A 23-70 Riter, Geo. W , 81-82 Scaife, H. L 108 Smith, Geo. Otis 28 Stoek, H. H 113 Vincent, F. C : . . : 44-46-49-106-113 White, F. Wallace .35-41 Wire, Frank E 49 Winchell, Horace V '. . . 37 Wood, Jno. R . . 34-99-100 Official Roster OF THE Officers and Committees of the American Mining Congress 1906 OFFICERS. J. H. RICHARDS President THOMAS EWING First Vice President E. R. BUCKLEY Second Vice President B. A. COLBURN Third Vice President J. F. CALLBREATH, JR Secretary DR. W. S. WARD : Curator DIRECTORS. J. H. Richards Boise, Idaho Thomas Ewing. San Francisco, California E. R. Buckley Rolla, Missouri E. A. Colburn . Denver, Colorado George W. E. Dorsey . . . Fremont, Nebraska C. M. Shannon Clifton, Arizona John Dern . Salt Lake City, Utah James W. Malcolmson El Paso, Texas J. Frank Watson Portland, Oregon COMMITTEES 1905-6. PROGRAM. E. A. Colburn, Denver, Colorado; E. M. DeLavergne, Colorado Springs, Colorado; Victor C. Alderson, Golden, Colorado; Edward H. Benjamin, San Francisco, California; C. Willard Hayes, Washington, D. C. BUILDING. David H. Moffat, Denver, Colorado; E. A. Colburn, Denver, Colorado; A. J. Spengel, Denver, Colorado. TRANSPORTATION. Sam F. Dutton, Denver, Colorado; A. G. Brownlee, Idaho Springs, Colorado; Edward J. Wilcox, Denver, Colorado; Henry I. Seeman, Denver, Colorado; J. F. Callbreath, Jr., Denver, Colorado. MEMBERSHIP. E. G. Reinert, Denver, Colorado; J. F. Callbreath, Jr., Denver, Colo- rado; E:. r M. DeLavergne, Colorado Springs, Colorado. MINE DRAINAGE DISTRICTS. D. W. Brunton, Denver, Colorado; E. Lyman White, Denver, Colo- rado; F. J. Campbell, Denver, Colorado; Phillip Argall, Denver, Colorado; R. S. Morrison, Denver, Colorado; E. A. Colburn, Denver, Colorado. MINING TEMPLE. J. H. Richards, Boise, Idaho; E. A. Colburn, Denver, Colorado; Col. Thomas Ewing, San Francisco, California. DEPARTMENT OF MINING. Hon. R, W. Bonynge of Colorado, Hon. Francis Newlands of Nevada, Hon. C. M. Shartel of Missouri, Hon. Marcus A. Smith of Arizona, Hon. William Sulzer of New York. STATE LEGISLATION AGAINST MINING FRAUDS. Hon. George C. Pardee, Sacramento, California; Hon. Robert M. LaFollette, Madison, Wisconsin; Hon. Joseph W. Folk, Jefferson City, Missouri; Hon. Eben W. Martin, Deadwood, South Dakota; Hon. Fred T. Dubois, Boise, Idaho. Official Roster OF THE Officers and Committees of the American Mining Congress 1 907 OFFICERS. J. H. RICHARDS President THOMAS EWING First Vice President E. R. BUCKLEY Second Vice President E. A. COLBURN Third Vice President J. F. C ALLBRE ATH, JR Secretary DR. W. S. WARD Curator DIRECTORS. J. H. Richards Boise, Idaho Thomas E wing Vivian, Arizona E. R. Buckley Rolla, Missouri E. A. Colburn Denver, Colorado George W. E. Dorsey Fremont, Nebraska C. M. Shannon . . Los Angeles, California John Dern : Salt Lake City, Utah A. L. White Lima, Ohio W. F. R. Mills ' Denver, Colorado COMMITTEES 1907. LOCAL EXECUTIVE COMMITTEE. Colonel H. H. Gregg, Joplin, Missouri Chairman Temple Chapman, Webb City First Vice Chairman J. W. Watson, Baxter Springs, Kansas Second Vice Chairman Gabriel Schmuch, Galena, Kansas Third Vice Chairman T. W. Cunningham, Joplin, Missouri Treasurer Clay Gregory, Joplin, Missouri Secretary PROGRAM. Dr. E.R.Buckley, Rolla, Missouri; T. A. Rickard, San Francisco, Cali- fornia; E. Lyman White, Denver, Colorado. TRANSPORTATION. W. F. R. Mills, Denver, Colorado; Col. A. G. Brownlee, Idaho Springs, Colorado; J. F. Callbreath, Jr., Denver, Colorado. WAYS AND MEANS. John Dern, Salt Lake City, Utah; Col. Thomas Ewing, Vivian, Ari- zona; Col. George W. E. Dorsey, Fremont, Nebraska; F. Wallace White, Cleveland, Ohio; Judge E. A. Colburn, Denver, Colorado. AUDITING COMMITTEE. E. Lyman White, Denver, Colorado; E. G, Reinert, Denver, Colorado. MINING TEMPLE BUILDING. Governor Henry A. Buchtel, Denver, Colorado; Hon. Meyer Friedman, Denver, Colorado; Hon. J. H. Richards, Boise, Idaho. PROTECTION AGAINST MINING FRAUDS. C. J. Downey, Denver, Colorado; R. L. Herrick, Scranton, Pennsyl- vania; Hon. A. W. Mclntire, Everett, Washington; Hon. H. C. Beeler. Cheyenne, Wyoming; Judge William; F. Clark, Glover, Vermont. 8 OFFICIAL ROSTER SMELTER RATES E. A. Colburn, Denver, Colorado (Chairman) ; E. M. DeLavergne, Colorado Springs, Colorado; George W. Riter, Salt Lake City, Utah; H. S. Joseph, Salt Lake City, Utah; Dr. L, D. Godshall, Needles, California. VERTICAL SIDE LINE LAW. James D. Hague, New York City; John A. Church, New York City; R. A. F. Penrose, Philadelphia, Pennsylvania; Charles J. Hughes, Jr., Den- ver, Colorado; Hon. Thomas Kearns, Salt Lake City, Utah. PREVENTION OF MINE ACCIDENTS. H. Foster Bain, Urbana, Illinois; F. W. Parsons, New York; H. H. Stoeck, Scranton, Pennsylvania; B. F. Bush, St. Louis, Missouri; Herman B. Hesse, Frosburg, Maryland. GENERAL REVISION OF MINING LAWS. W. R. Ingalls, 505 Pearl street, New York; J. Parke Channing, 42 Broadway, New York; J. R. Finlay, 71 Broadway, New York; John Hays Hammond, New York; Dr. James Douglas, New York. Officers for the Year 1908 PRESIDENT, J. H. Richards. VICE PRESIDENTS, Thomas Ewing, E. R. Buckley, John Dern. DIRECTORS, J. H. Richards, Boise, Idaho. Thomas Ewing, Vivian, Arizona. E. R. Buckley, Rolla, Missouri. E. A. Colburn, Denver, Colorado. George W. E. Dorsey, Fremont, Nebraska. W. F. R. Mills, Denver, Colorado. John Dern, Salt Lake City, Utah. Charles M. Shannon, Los Angeles, California. A. L. White, Lima, Ohio. SECRETARY, James F. Callbreath, Jr., Denver, Colorado. EXECUTIVE COMMITTEE. Thomas Ewing, E. A. Colburn W. F. R. Mills. OFFICERS AND DIRECTORS COL,. THOMAS EWING First Vice President Vivian, Arizona DR. E. R. BUCKLEY Second Vice President Rolla, Missouri HON. J. H. RICHARDS President Boise, Idaho Hon. E. A. COLBURN Denver, Colorado JAS. F. CALLBREATH, JR. Secretary Denver, Colorado AMERICAN MINING CONGRESS C. M. SHANNON Los Angeles, California COL, GEO. W. E. DORSET Fremont, Nebraska. JOHN DERN Third Vice President Salt Lake City, Utah A. L. WHITE Lima Ohio W. F. R. MILLS Denver, Colorado REPORT OF THE PROCEEDINGS OF THE Tenth Annual Session of the American Mining Congress Held at Joplin, Missouri, November 11 to 16 Inclusive, 1907 MONDAY, NOVEMBER 11, 1907. Evening Session. Meeting called to order by H. H. Gregg of Joplin, Missouri, Chairman of Committee, at 8 o'clock, p. m., Monday, November 11, 1907. Invocation by Rev. Dr. Jeffries of Carthage, Missouri. Music by the Apollo Club. Hon. Jos. K. Folk, Governor of Missouri, was then introduced and delivered the following Address of Welcome: GOVERNOR FOLK: Mr. Chairman, Gentlemen of the Convention, Men and Women of Joplin: It affords me pleasure to welcome this distinguished assemblage to Missouri. It is peculiarly proper that this convention should meet here in Joplin, the richest spot in all the world. Nowhere on this earth can richer mining property be found than in the district of which Joplin is the capital. Joplin today has something like 40,000 inhabitants. I pre- dict that in a few years Joplin will be a city of 75,000 people, and the output will increase from $15,000,000 to $20,000,000 a year, to $25,000,000 to $30,000,000 a year. Those of you who come from other states may be surprised to learn of the rarity of conflict here between capital and labor. Under the indi- vidual system of mining in this district, the laborer of today may become the capitalist of tomorrow and labor troubles are practically unknown. You of this convention represent an annual output of $1,800,000,000. Each year the interests represented here give to the country something like $100,000,000 of gold to go into the arts and into the commerce of the country. There is no industry in this nation that exceeds in value the output of the mining industry except the agricultural interests, and there is one thing that should be done for the mining interests of this country in order to do justice to those interests; that is, to have a National Bureau of Mining, and a member of the Cabinet secretary of it. (Applause.) I am glad to welcome you to Missouri. Mining was carried on profit- ably in this state one hundred years before the first mine was discovered in California. The mining interests of this state are second to those of no other state in this Union. Someone has remarked upon the pride all Missourians feel in their state. There is every reason that this should be so. If a wall were built around Missouri the state could still supply every want of those within. There are fewer mortgaged homes in Missouri than in any other manufacturing state, fewer mortgaged farms than in any other agricultural state, and fewer mortgaged men than in any of the United States. One-tenth of the wheat and one-twelfth of the corn of the entire world are grown in Missouri. In horticulture as well as in agriculture Missouri leads the other states. The largest orchards on the globe can be found in Missouri. We have no silver mines of consequence, but the output of the Missouri hen each year exceeds in value the total production of all the silver mines of Colorado. (Applause.) We have no gold mines, but the minerals the miners bring up from the bowels of the earth into the Missouri sunlight each year exceed in value the total min- eral production of the golden state of California. (Applause.) Nine- tenths of the nickel, four-fifths of the zinc, of the United States, are pro- duced in Missouri, and sixty per cent, of it right here in the Joplin dis- trict. (Applause.) We have no oil wells, but 26,000 square miles of Mis- souri soil are underlaid with coal deposits of an approximate value of 10 OFFICIAL PROCEEDINGS $400,000,000,000. Missouri horses can be found in every part of the civil- ized world and the Missouri mule carries the white man's burden to the remotest parts of the earth. (Applause.) Missouri has more large cities than any other agricultural state, and has more agricultural and mining interests than any other state with large cities. With St. Louis on the east, the great metropolis of Kansas City on the west, St. Joseph in the northwest, with Springfield and Joplin in the southwest, a ready market is afforded for the products of mine, of field, of forest and of factory in every part of the commonwealth. In Missouri about $10,000,000 are spent every year on public education nearly four times as much as it costs to main- tain the state government. Missouri's tax rate is lower than that of any state in the Central West or in the South, and yet Missouri's permanent school fund is greater than that of any other state in the Union. There is a schoolhouse within reach of every Missouri child and the percentage of school attendance in Missouri is greater than that of any other state in the Union. (Applause.) The percentage of illiteracy is less by nearly fifty per cent, than the average in the United States. (Applause.) In every state there are some counties where illiteracy rules. That cannot be said of Missouri. There is not a county in this state that can be said to be illiterate. More newspapers and periodicals circulate in Missouri in proportion to the population than in Massachusetts. More books are read from the public libraries in Kansas City than in Boston. Everywhere virtue is honored and God is worshipped. Secure in her natural position as the future commercial center of these States, strong in her unparalleled resources, confident with that assurance which is born of success; conscious of her dignity and power, Missouri stands in the front rank of civilization today, not demanding but acknowledging the majesty of all. Proud of her past achievements, yet looking to the future; satis- fied with her progress, yet determined that the future shall far excel the brilliant past; however great in natural resources; however potent in achievement, in the varied fields of arts and usefulness, Missouri's dear- est and fairest possessions are her men and women. It is these that have made Missouri great. It is these who hold the idea that citizenship in a free country implies a civic obligation to enforce the performance of every public trust; it is these that have the idea that laws are made to be obeyed, not to be ignored (applause) ; it is these who believe that there is an embezzlement of power as well as an embezzlement of money (applause) ; it is these who believe that patriotism belongs not only to nations, not only to states, not only to cities, but to one's fellow-men as well. What a change has come over the minds of the people in refer- ence to that word "patriotism." Some five years ago there was held in one of our distant cities a banquet attended by a number of prominent business men. After the repast was over the band played "America" and the audience stood and sang the familiar words. As the last strains of the song died away, one of those present turned to his neighbor and with the tears trickling down his cheeks he said, "Oh, I wish I could die for my country!" Just three weeks after that, that same man was humbly kneeling at the feet of justice, confessing that he had bribed a municipal assembly to pass a franchise to further one of his interests.. He was willing, he said, to die for his country, but his conduct showed that he was unwilling to live for his country. He had patriotism on his lips and he had treason in his heart. Many men would be willing, if need be, to give up their lives on field of battle for state or for country, but the man that will live for his country and his state every day is the man that is needed just now. (Applause.) There may be just as much patriotism in living for one's state or city as in dying for one's state or city. Patriotism does not abide alone in the roar of cannon, amid the din and clash of arms, but in the every-day du- ties of civic life as well. There is a patriotism of peace as well as a pa- triotism of war. The man who gives his time to the betterment of civic conditions and in getting better men into office, may be just as patriotic as he who bares his breast to the bullets of the public enemy in time of AMERICAN MINING CONGRESS 11 war. "How may I serve my city and state?" may be asked. There never was a time when men real men were needed more than now. We need more men influenced alone by the public welfare and fewer of those who are in politics for revenue only. (Applause.) I do not refer to the need for men in public office alone, for one does not have to hold public office in order to serve his city, his state or his country. Some of the greatest men of the nation have never held public office. True greatness consists in service service of one's fellow-men, service of one's state, service of one's city. If one can do that in public office, well and good, but do not forget that it is just as essential for private citizens to discharge the responsibilities resting upon them as it is for the faithful carrying out of official obligations in the public service. Missourians believe in liberty liberty under the law; liberty to make law does not mean license to break law. Lawlessness is not liberty. There are some who have the idea that this may not be a free country because one cannot sell game out of season, or gamble or sell liquor at times the law says they shall not do so, or do other things that may be permitted in some other places. No greater mistake can be made. There can be no such thing as real liberty without laws which a majority of the people made, and to which obedience and respect are given. The laws are the people's laws made in the exercise of their liberty, and if, after those laws are made, they are not obeyed, the liberty of the majority of the people to make the laws is taken away to the extent their law is nullified. If we allow each man to say what laws are good and what laws are bad, the result would be there would be no laws at all. The trust magnate looks with abhorrence on the pickpocket who violates the lar- ceny statute, but thinks he has a perfect right to break the law against combinations and monopolies. The burglar abhors the man who breaks the law against trusts, but he considers the law against house-breaking an infringement upon his rights. The dram-shop keeper believes in the rigid enforcement of the law against the man who robs his cash drawer, but he thinks the law requiring his saloon to close on Sunday is a blue law and one that ought not to be obeyed. It has been my experience that any law looks blue to the man that wants to break it. (Applause.) More respect for law is what is needed. The corporation magnate should be compelled to respect the law that regulates the conduct of the cor- poration, as he asks others to respect the law that protects the property of the corporation. The anarchy of capital-breeding lawlessness should no more be tolerated than the anarchy of labor-breeding riot and disor- der. Gamblers and those who violate the liquor laws should be made to understand that the laws prohibiting gambling or regulating the sale of liquor are just as sacred as the laws that protect them in their lives and in their property. What a wonderful change has come over the American people in the last six or seven years! Look at your dictionaries tonight and you will not find the word "graft" in the sense in which it is now used and yet every man, woman and child in all this broad land now understands what the term means. Six or seven years ago bribery was the common and accepted thing all over the land. Men gave bribes and thought nothing of doing it; men took bribes and felt no hesitancy in doing so; men purchased votes and bought franchises; legislative halls were often dens of thieves; the touch of the unclean dollar was over all, while the public conscience was asleep. Finally the people awakened to a realization of the fact that a government by bribery was not a govern- ment of and for the people, but a government of and for and by the few with wealth enough to purchase official favors. Then from one end of the land to the other there came a stern demand to stamp out the offense that aims at the very heart of free governjnent, and today no man takes a bribe and considers himself an honest man. The public conscience was extended from the domain of the public wrongdoer to conscience has taught men better than that and the energies of this that of the private wrongdoer. Some of the insurance officials were found to have been using trust funds for their own profit. They said they did not know that was wrong. But they have been taught better than that 12 OFFICIAL PROCEEDINGS now. Some of the men high up in the commercial world were found to have been accepting rebates from railroads contrary to law. They said they did not know that was dishonest. That it was all right according to the lights they had before them, but those lights have now been put out and other lights have been placed in their stead. It used to be a saying years ago that a prospect was a hole in the ground owned by a liar. I don't know how true that used to be, but I can say this, and you mine- owners and operators know that it is so, that there is a higher standard in your business and in the mining industry than there has ever been be- fore. (Applause.) Things will not be tolerated for a moment now that six or seven years ago were submitted to in silence. The public con- science has taught you that evil in your business should be eliminated. So this public conscience has gone on and on, day by day, correcting some evil day after day, remedying some wrong. If things had gone on as they were a few years ago, when bribery was the accepted thing, when lawlessness was looked upon with indifference then the end of the Repub lie itself might well have been prophesied, for we were going the way that other nations have gone who went to their death during the flight of time through the ages. This is not the first nor the oldest republic by any means. If we were to live three centuries longer and then die, we would go down into history as the most brilliant but shortest-lived of all the republics the wrecks of which are strewn along the shores of time. Rome had a republican form of government for seven hundred years; Florence for three hundred years; Venice for eleven hundred years. All of these republics have long ago tottered off the stage of the world into oblivion. What caused the death of those republics? They did not die for lack of wealth. Many of them or all of them were richer v/hen they fell than ever before, but they ceased to exist for lack of men. They did not die for lack of money, but for lack of morals. They did not die for want of materiaj wealth but lack of moral health. This nation today does not rest upon the wealth of a few people, but it rests upon the moral character and the integrity of the average individual. Poets have sung of the Golden Age that lies buried far back in the history of the world. I believe that the Golden Age is before us, not behind us, and it will come about when there is more of the Golden Rule in our daily lives and less of the rule of gold. (Applause.) It will come about when the doctrine of brotherhood becomes the standard for governmental action, and private conduct. I believe that the world is getting better and better every day, not worse. Even now wealth is not worshipped with the same devotion that it used to be, and gold is not regarded with the same awe as in days gone by. The ideal of the young man is becoming more and more to get right and to stay right, rather than to get rich and stay rich. A new standard has been established new, yet old just plain, common, simple honesty, that's all. Now, this may be ideal, but the business that has ideals will succeed best. The man who has ideals will succeed best. The city or the state or the nation that has ideals will make the greatest progress. Take away the ideal of America and the strength of the nation would soon be gone. Rome built great highways and founded mighty cities while the strength of Roman character ebbed away. When that was gone there was nothing to defend; there was nothing to conquer.. There is an old story of an eastern king who caused a great palace to be erected as a monument of his majesty and power. Stone by stone the structure grew and the heart of the king swelled with pride. One morning the palace was in ruins. "What great treason has been committed here?" the king exclaimed, and a price was put on the head of the traitor who had destroyed the abode of majesty. But a wise man of the court admonished the king. "Great master, there has been no treason here. The house that was great and mighty has fallen down because the builders used mortar without sand, hence their work has gone to ruins." So with the state, so with busi- ness. External grandeur counts for nothing. We may count wealth as the sands of the sea, we may as states build the domes of our capitols and the spires of our churches until they pierce the clouds and glitter AMERICAN MINING CONGRESS 13 among the stars; all must crumble and fall away unless it be welded and strengthened by the principles of morality and justice that constitute the groundwork of enlightened citizenship. Here between two great oceans we have founded an empire such as no conqueror of old ever dreamed of, but the greatness of a nation does not consist in the size of its army nor the strength of its battleships, but in the purity of its ideals and in the intensity of its devotion to those principles that make for right, that make for justice, truth and honor. True to these ideals, we sha.ll be the most powerful amongst all the nations of the earth. Forsaking them, the time will come when our military engines will be as toys in our hands and our strongest naval armament impotent and useless. In vain will we build battleships, fortify our coasts and man our guns unless we bring into every rampart and turret those ideas and those ideals that make the man behind the gun. Our forefathers furnished us with a government guaranteeing rights to the citizens never obtained or exercised by any other people. They fought against the enemies of our country in order that we might have this nation. We must fight against the enemies of peace in order to preserve this as a government for the people and by the people. Let us preserve inviolate the principles of popular self-gov- ernment, recognizing the largest liberty of the individual citizen consistent with law and order. Let us unite in the enforcement of the laws and in counteracting any attempt to defy them. Let us not array class against class, but let us preserve the rights of all by causing each to respect the rights of the other. Let us not attack business, but the wrongdoing on the part of some of those engaged in business. Let us not assail wealth, but the abuses of wealth. Let us attack not men but the evil that men do. Let us love not money but manhood. Let us appeal not to cunning but to conscience. Let us make the national life clean by making the national conscience clean. This is the Missouri idea. To such a state, with its wealth of mines and of field and of forest and of factory, to such a state with men and women holding to these ideals, I bid you a cordial and sincere welcome. Hon. Jesse F. Osborne, Mayor of the City of Joplin, was then intro- duced and delivered the following address of welcome on behalf of the citizens of Joplin: MAYOR OSBORNE: Mr. Chairman, Gentlemen of the Convention, Ladies and Gentlemen: It is a great privilege and a great pleasure to have you hold your Tenth Annual Congress in our midst, for we recognize in your body, composed as it is of all that goes to make up what we are pleased to term the mining industry an ancient, honorable and useful vocation. Ancient, because, look as far back as we may .in the pages of history, sacred and profane, we find mentioned the various metals, which pre- supposes the prospector, the miner and the smelter. It would seem that man's very advancement from the Stone Age was heralded by that first blacksmith, old Tubal Cain, the father of such as work in iron. It was the search for gold that led Cortez to the land of the Montezumas and Coronado in search of the golden city of the Indians named Quiviro. Your vocation is an honorable one. The product you bring to the wealth of the world is in the fullest meaning of the term new wealth and untainted wealth. You take it from no man or set of men. It is not contaminated by any questionable commercial methods in its procurement. It is not haunted by the orphan's cry nor the widow's tear. It is in fact a gift from Almighty God, who at the sunrise of time hid it away in the hills and gulches under Arctic snows and desert sands, from East to West and from pole to pole as an incentive to action and as a reward to him who has the courage and the will to go and seek it out. It is an undoubted fact that your product is an essential and a condition precedent in ad- vancement in all the planes of human endeavor. It has enabled us to span the continents with bands of steel over which is carried the world's commerce. It has enabled us to spiderweb the continents, seas and oceans with wire and cable for almost instantaneous communication be- tween the Occident and Orient. It has enabled us to bridge the great 14 OFFICIAL PROCEEDINGS rivers of all countries, to make the machinery, tools and appliances used in all the various lines of manufacture, to build the framework of the mighty skyscrapers in the cities, and to furnish implements for the tillage of the fields. Some have said that the agriculturalist brings to humanity the greatest in amount of blessings that go to make up the sum-total of human needs, but it can be readily seen that the agriculturalist would make but an insignificant showing if first the metal for the making of his implements of industry were not mined and brought into use. In ad- dition to the base metals, you furnish the gold and silver on which are based the wealth of the world. You furnish the circulating medium or the basis thereof in the world's commerce, and the scarcity or abundance of your product fixes the price level of the world's goods, influences com- mercial and political policies, makes and unmakes statesmen. And then, when nations depart from the fields of peace, your product is again in requisition for the torpedo boat, the destroyer, the cruiser and the mighty battleship on the seas, in the thundering cannon, the screaming shell, the rattling musketry and the clanking sabre on land. In the search for the hidden treasures of earth no journey has been too long for you to under- take and successfully accomplish, no danger so great that you have not dauntlessly met and overcome it, no clime so unfriendly that you have not successfully withstood it. You have been the pioneers for the colo- nization of the world. You have been the very advance guard of civiliza- tion. What country can you call to mind where the prospector, the miner, did not precede the railroad? The fact is the prospector and the miner go ahead, lay out the trail, spy out the country, report back and the railroad follows on. Thus in all times and in all conditions in the affairs of men from the earliest dawn of civilization down to the present time you have more than borne your burden. You have more than done your part to achieve our present civilization. You have more than done your work in the evolution of humanity. The laborer is worthy of his hire, and as all labor must receive its just reward here or hereafter, your reward is sure, and if you have not found it yet, and if you fail to find it here, let us hope that you may find it in that last great camp just over the Divide, that Eldorado of the Soul where the days never grow old and the streets are paved with pure gold. In your search for the big bonanzas you have gone from camp to camp and from country to country, from California to Nevada, from Pike's Peak to the Black Hills, from Cripple Creek to the Coeur d'Alenes, from the Klondike and Nome to Tonopah and Goldfield, with your ears ever attuned to the far call of the new camp. It is therefore possible that you have given the lead and zinc mines of this district but passing thought. There are those among you I know who are familiar with these mines. To you I need say nothing; but to you who have yet to become acquainted with us it is opportune to say that in all these years the fields of this district have paid their devotees $15,000,000 to $20,000,000 per year without any loss of sleep, any undue excitement, any perceptible rise of temperature. We have gone right on from year to year raising miners to affluence and educating more miners to take the places of those who have received of the beneficence of our district, composed as it is of parts of the states of Missouri, Kansas, Ar- kansas and Oklahoma. We have no lines or class distinctions in our dis- trict worth mentioning. The operator and the shoveler ride or walk to- gether to the mines with perfect confidence, friendship and equality. We have no strikes in our district for the reason that if at any time the miner does not get what he thinks is right, he simply quits and goes out and strikes a mine of his own, and then becomes an operator him- self, when he can see the question from both sides. The operator some- times works his mine out and then to keep his hand in the game, goes into the ground as a spade hand where he gets a look at both sides of the question also. These experiences have a tendency to change the view- point, and as a result capital and labor in our district are all experienced. They have both been there, both ways, and as a consequence are the best of friends. AMERICAN MINING CONGRESS 15 We of this district have a pardonable pride in this happy condition. In behalf of the district, in behalf of our enterprising sister Arkansas to the south, our lively sister Kansas to the West, and I would say our little baby sister Oklahoma to the Southwest if it were not for the fact that, like the veritable Minerva she has sprung full-panoplied from the head of Jove and is in fact a state with the rest of us or will be on the sixteenth of this month when her birth certificate is signed by Dr. Roosevelt, it gives me a great deal of pleasure on behalf of this district, composed of the best American citizenship of the United States, to wel- come you to our midst, and on behalf of the city of Joplin I bid you a cordial welcome and invite you to take everything in sight that you want. (Applause.) There is nothing reserved. The town is yours. I know that you will not abuse it, because miners and those engaged in that industry are the best people on earth. We are proud to have you with us. We are glad to have you with us. If you don't see what you want, ask for it, and we will try to get it for you. (Applause.) Response by Hon. J. H. Richards, President of the American Mining Congress: PRESIDENT RICHARDS: My friends, as I look into your kindly faces, I recognize that we have received a miners' greeting. When I see the beautiful decorations of this hall and such a multitude come to see us, I recognize also that you have touched the tender chord in the heart of every guest within the gates of your city. They cannot help but go forth to the world and have a kindly feeling for the kindly greeting that you have given us. And don't you know that kindness is the crying need of every heart today in this broad land? We must learn that we are to some extent our brother's keeper. When we learn that we will have less dishonesty, less sorrow and less suffering. The American Min- ing Congress is an aggregation of men who believe that the best condi- tions of mining have not been brought out in this great country. Don't you know that in your great government at Washington there is not a bureau or a department that recognizes mining as an industry in this great country? Not one! We intend to continue these gatherings an- nually, and they will finally speak so loud that they will be heard clear to the city of Washington, the capital of this country. (Applause.) We believe that all of these mighty resources of this land are simply means to an end and that is to bring out the greatest and noblest man- hood that is possible in this great land. When they gave this land to us they vrere so generous that out of it must come big, generous manhood, and this is being given generously right in your very midst. Missouri has given much to this country. I anticipate it will not be many years until it will give us a President also. (Applause.) I don't suppose the state from which I come is very well known to you. I have heard it reported that a boy from Missouri was attending a public school and studying physical geography. The teacher asked him at the next lesson to tell the class what was produced by Idaho. He said: "They produce cactus, sage brush, jack rabbits, hair and whiskers." But we are in the business of developing men out there also. We have many from Missouri. We have great mountains there that are an in- spiration to any man who beholds them their giant breasts bathed in constant snow and ice, and yet at their feet rests a beautiful homeland. Our markets now are full in abundance with the second crop of straw- berries from the same vines. We are producing sixty-one per cent, of all the lead produced in the United States this year. We expect to be heard from because we expect to follow largely in the wake of Missouri. She has led the van largely in this country, and we are looking for her to do greater things. There is one thing that impresses me most as I lis- tened to your Governor's address and that of your Mayor, and that is the harmony that exists between labor and the mine operator. Why should they not? If both are honest, then there can be no disagreement between them that could not be settled amicably. We believe that this great or- ganization that has now come into your midst can bring out of these con- ditions that character of manhood that would be worthy of such mighty 16 OFFICIAL PROCEEDINGS opportunity. Now in our sessions from day to day here, as your chairman has said, all are welcome, and coming from the state that I do, I am reminded that the ladies are welcome, because up there in those great mountains the husband and the wife, the brother and the sister face the world together, shoulder to shoulder on a perfect equality before the law. (Applause.) And I anticipate, beautiful as your city is, and others that I have seen, that we can teach you something about municipal government in the way of cleanliness, because the women have a right to vote there, and their voice is heard in that larger phase of housekeeping called mu- icipal government. (Applause.) I hope that when we have left your midst that you may feel that you have entertained angels unawares. When I heard the beautiful harmonies coming from these miners I felt sure that they would catch the inspiration so beautifully spoken of by your Governor, and I am sure we will all get into harmony by listening to another song from the Apollo Club. Congressman J. C. Floyd, of Yellville, Arkansas, then responded on behalf of the state of Arkansas. HON. J. C. FLOYD: Ladies and Gentlemen and Members of the American Mining Congress: I count it both an honor and a pleasure to respond in behalf of the state of Arkansas to the welcome addresses de- livered by 'Governor Folk and the Mayor of Joplin. We have been enter- tained since our arrival here with all the hospitality that it would be possible to confer by any people. While that is true, I confess that the situation to me is rather embarrassing tonight. The Mayor tells us to take everything in sight that we see and want, and the Governor tells us not to take it unless it belongs to us. (Applause.) My position is embarrassing in another respect. Governor Folk has so eloquently and so thoroughly portrayed the greatness of Missouri. What can I say about Arkansas? (Applause.) I have been introduced to this audience as the guest of Missouri. Can I take issue with the Governor? Certainly not. But I want to tell you a few things that the Governor didn't tell you. He says that Missouri has the greatest apple orchards in the world. That is true. But the finest and best and the biggest apples in the world are grown down in Arkansas. (Applause.) At the Louisiana Purchase Exposition at St. Louis we shipped from Arkansas an apple that weighed 34 ounces, and it took the premium in Missouri as being the largest apple grown. (Applause.) It is true that Missouri had in a glass case a plaster-of-paris cast of an apple that weighed 32 ounces. We can raise bigger apples in Arkansas than Missouri can make out of plaster-of-paris. (Applause.) Your Governor tells you that Missouri is the greatest zinc producing country in the world. That is true. But for the last ten years at all the expositions where zinc ores were put upon exhibition, Arkansas took the premium, on zinc ores. Why, we shipped one specimen, a chunk of zinc ore, to the World's Fair at Chicago, that weighed 12,750 pounds free ore, and it took the premium as being the largest specimen of free ore ever found. The truth is that the best part of this Missouri district lies in Arkansas. (Applause.) I am glad to be here. We feel an interest in this Mining Congress because we want the mining people of the United States to understand that the Missouri zinc district extends not only into Arkansas, but into Kansas and the Indian Territory, or the new Oklahoma (applause), and I want to say to the people here tonight that a more profitable field for investment in the United States does not exist anywhere than it does through the length and breadth of this great mining district, covering a portion of the states named, and I think that all of the people of this section and of this district are to be congratulated upon the fact that the American Mining Congress saw proper to fix its meeting place in Joplin the very heart and center of this mineral district and mineral territory. We need to bring to the knowledge of the outside world the undeveloped resources of this field, and as a representative from Arkansas I speak for the undeveloped section of this mineral district. Until about three years ago the Arkansas mineral district had no transportation facilities. Then the St. Louis & North Arkansas Railroad was extended through the AMERICAN MINING CONGRESS 17 counties of Carroll, Boone, Newton and Searcy, in the southern part of the district, from Seligman, Missouri, and, in the near future, that road will be extended to Joplin. About two years ago the White River Railroad, a branch, of the Missouri Pacific, was built from Newport, Arkansas, to Aurora, and thence to Carthage and Joplin, Missouri. Since that road was constructed, the people of the territory lying in the northern part of the district have direct communication with the Joplin fields by railway, so the great obstacle that heretofore existed, want of transportation, no longer is a barrier to the development of those fields, and we invite capitalists to come to our state and to help us develop its wonderful resources. You will find the people of Arkansas as hospitable, as loyal to those who engage in honest industries, as any state in this Union. Perhaps no state has ever been the victim of so many misconceptions as the state of Arkansas, but those impressions are passing, and the people of the United States are beginning to realize that there are wonderful opportunities within the borders of our state, that it is one of the grand states of the Union. The state works hand in hand with Missouri. In fact, there is not much difference between the people of Arkansas and the people of Missouri, anyway.. (Applause.) Now, I want to say that. this organization has a purpose and an object. This Mining Congress is organized and maintained for a purpose, and as I understand the purpose of this organization it is to build up the mining interests of the United States. One of the objects which they propose, which they ask, and which they demand, is a mining department of the United States, to be one of the leading departments of this government a cabinet department of this government and it ought to have it. Why should it not be? We have a department of agriculture. We have a department of the army and a department of the navy. Just think of the thousands and thousands of dollars that are expended every year to main- tain the army and the navy, and yet the government has no mining depart- ment, and yet if it were not for the miners of this country, if it were not for the men who go into the earth and take out the ores and manufacture them, with all the money appropriated for the army and the navy, you could not make a cannon or a gun, you could not build a battleship, be- cause you would not have any material to do it with. The mining industry of this country deserves this recognition, and as an humble representative in Congress, I pledge to you my support of any proposition to make a cabinet department of the mining industry of this country. (Applause.) Furthermore, I want to make a few suggestions in line with what has been said by your distinguished Governor. This is a time when in all legislative matters there should be one salient principle, one salient policy and that is honesty. Laws should be passed by the respective states to prevent mining frauds, fake stock schemes (applause), to prevent people being defrauded out of their money by dishonest means under form of law. That has hurt the mining industry. There is no industry in this country where a man can honestly acquire fortune fabulous wealth so easily as by digging in the earth and mining ores. He takes not a dollar from living man, he robs no one by his discoveries and labor, and he has added to the total of the world's wealth, harming no one. Stamp out these grafters you know what that means. Governor Folk has told you that all the world has learned what that word graft means in the last five or six years. Now your Governor was modest about it, but I want to say that all the world has known it since District Attorney Folk, of Missouri, now your distinguished Governor, taught them what it meant. (Applause.) Your distinguished chairman said that he expected one day that Missouri would produce a President. He meant Folk. (Cheers.) That undoubtedly may be realized. I listened to a speech in Congress from a distinguished member on the question of railroads and he spoke from the standpoint of one who had interests in corporate wealth, and he argued that the best policy for the railroads was to be honest with the people. Said he: "If you would squeeze the watered stock out of railroad corporations; if you would open your books and let the public into your JS OFFICIAL PROCEEDINGS confidence; if you would lay before the public your transactions, the amount of money in your investments, and the public would see it and read it; a railroad bond would be equal to a government bond." Don't you believe he was right? The same way in your mining propositions. If you will put upon the statute books laws that will punish those who would deal dishonestly, those who would swindle the public, then you increase faith in. the legitimate industry, and in legitimate development of the mining interests of this country. I understand from talking with members of your association, that that is another one of the leading objects of this organization. I wish you godspeed in its accomplishment. We should all stand, for good citizenship, for the upbuilding of our material wealth, and for the upbuilding of the citizenship of our country. The public temper is ripe for reforms along that line, and I think that the public temper is right, and that every man in the United States, re- gardless of party, should stand for these reforms, and keep the movement rolling on until every corrupt man is swept from high public place, and until every law behind corruption is swept from the statute books, and wholesome laws are put upon the statutes for the protection of the people's rights. (Applause.) If we are to have a great state we must have honest laws and honest administration of the laws in that state. If we are to have a great government, a great nation, we must have honest laws, and we must have an honest administration of the laws of this nation. This much I say in approval of what has been said by your distinguished Gov- ernor. Thanking you for your very patient attention, I will close my remarks. Col. T. J. Vest then responded to the addresses of welcome on behalf of the state of Kansas. COL. T. J. VEST, OF GALENA, KANSAS: Mr. Chairman, Members of the American Mining Congress, Ladies and Gentlemen: Within the last four decades of time a general uneasiness and anxiety grew up among the young men of the eastern part of the American continent. Eventually they emigrated to the West; they crossed the broad fertile plains of Ohio, Illinois, Iowa and Missouri, but resisted all of the temptations that these states at that time were offering to the home seeker; they stopped in Kansas; they first erected shelter to protect their dependent ones and themselves from the inclemency of the weather, and immediately there- after they erected what is known as the "Kansas School House," so that one traveling over the broad state would no sooner get out of the sight of one school house, but he would come in sight of another. The good work so ably started has developed until we have today at Manhattan, Kansas, the largest agricultural college in the world, with its two thousand students, and at Emporia, Kansas, stands the largest normal school in the world, with its two thousand two hundred students, and at Lawrence stands the Kansas University, which takes second place to no institution of education in America. As a result of the efforts of these pioneers, Kansas adds to the world's wealth from an agricultural and horticultural standpoint three hundred million dollars per annum; they have in Kansas today, as shown by the state bank reports, a circulating per capita of ninety dollars for every man, woman and child as compared to our thirty- two dollars per capita circulation of the United States, Kansas is the wheat field of America, and ranks about fourth as a corn producer. If there was a wall built around the state of Kansas to keep confined within that territory its agricultural products its population would be submerged under its own production. As miners, we are something of a figure; as coal producers, for the year 1907, we will add to the world's wealth seven millions of dollars. The output of our cement works, seven in number, will exceed six millions of dollars, and of our other clay products brick, tile and building stone (by the way, many of the streets are paved and buildings erected in our sister state of Missouri on the east out of Kansas brick)^amounts to a total of six million dollars per annum; the oil wells of Kansas add to the world's wealth one million five hundred thousand dollars per annum; our gas product is of the value of three millions five hundred thousand dollars AMERICAN MINING CONGRESS 19 per annum; and, by the way, the gas of Kansas is warming the cities of this part of Missouri as well as the cities on the north. We also have zinc mines in Kansas that add to the world's wealth two millions of dollars per annum; and in the thirty years of her existence she has added the sum total of fifty three millions of dollars to the world's wealth. We people began mining about thirty years ago, and in a small area of country, but as yet we have not reached the 80-foot level. It has been our boast for years that it is the poor man's camp, and we venture the assertion here and defy contradiction, that any poor man that has lived in Galena, who has been sober and industrious has been rewarded for his efforts; that he is in easy circumstances, or has grown rich. But it is no longer a poor man's camp, but now a rich man's field; we have prospected the earth from 80 feet to 500 feet in depth; we have been rewarded for our efforts by the discovery of rich veins of ore at all the levels, but the poor man is no longer able to provide himself with the equipment neces- sary to proceed further, on account of the large bodies of water en- countered below, and we now consider it the rich man's field, and we say to the rich man: "Your hopes will be realized." As a manufacturing state, we are something; our people have paid some attention to the smelting of zinc ore; refining it into the spelter of commerce, and from a bulletin issued recently by the Geological Survey of the United States, we find that Kansas produced in the year 1906 one hundred and twenty-nine thousand tons of spelter, with a commercial value of fourteen millions of dollars. The eight smelting companies that are located in Kansas say to the people who are mining in the southwest of Missouri and southeastern Kansas, produce ore to your utmost capacity, we will purchase it from you; and say to Missouri, produce all the ore you can, we can take care of it; to the new state of Oklahoma, they say, produce all the ore you can, we will take care of it; they say to Arkansas, produce all the ore you can, we will take care of it, and when all of them have put forth their best efforts of increasing their tonnage, the smelters of Kansas are still calling for more. The result is, that they have gone to the states of the West, to New Mexico, Colorado and Utah, and still not being supplied with a sufficient tonnage, they have gone to British Co- lumbia and Old Mexico, and are still asking for more. We are also lead smelters, and buy a supply in what is known as the Joplin district, and add to' the world's wealth the refined article to the value of half a million dollars per annum. Mr. Chairman, on behalf of this great state of Kansas, and on behalf of Galena, we bid you welcome to this general mining district, and we further promise to lend our aid to- you in establishing at Washington a department of mines and mining, for the betterment of the mining inter- ests of America. Hon. John Bern then responded to the address of welcome on behalf of the state of Utah. HON. JOHN BERN, OF UTAH: It seems that this meeting of the American Mining Congress is being held far enough south to come within the scope of that hospitality for which the South has ever been famous. In behalf of the Utah delegation I take pleasure in saying that we are delighted with our reception, and we are grateful for the charming manner in which we are being entertained. This hospitality we find no less hearty and whole-souled than that of the western prospector, who welcomes you to his lonely camp, and stranger though you be, kills the fatted calf in honor of your visit. It may be true that the fatted calf comes out of a tin can, and that it is more often known as embalmed beef, but the wel- come is no less sincere for all that, and if you happen to come to his camp while the owner is not about, you are expected to help yourself to the grub, and the only thing expected of you is that you wash the dishes before you depart. That is our western idea of hospitality, and, as I said before, we have found the southern brand to compare favorably with it. It has been an especial pleasure to be welcomed by the distinguished Governor of the great state of Missouri. When a man reaches eminence 20 OFFICIAL PROCEEDINGS not as the result of political accident, but as a recognition of valuable public services, the American people are proud to do him honor. The great work done by Joseph W. Folk in purifying politics, in promoting honesty, and in advancing lofty ideals, has influenced not Misouri alone, but every state in the Union, and he has endeared himself to every patriotic American heart. Let the inspiring example set by Governor Folk in civic matters serve as a motto for the deliberations and actions of the American Mining Congress, and there can remain no doubt of the purity of its purpose, or the value of its work. The welcome extended to us by your Mayor in behalf of all the citi- zens of Joplin, I assure you is fully appreciated, and we will carry home with us most pleasant remembrances of the hospitality extended to us by the citizens of the city in the great lead and zinc district of Missouri. There should be no doubt in the minds of any of us that we are here for a definite tangible purpose, and that we have certain laudable aims in view, for otherwise there would be no excuse for the existence of our organization. In making this statement, I have given myself an oppor- tunity to enumerate the objects of the American Mining Congress. Of that opportunity, however, I do not intend to avail myself in this brief address. I merely desire to touch upon a few matters which I conceive to be of great importance. Some of them have been discussed in previous meet- ings of the Congress, while others' have received little or no attention. All of us will admit that we are passing through a great epoch in our public affairs. The tremendous movement against corruption, and for more exact equality before the law, which in its political application was begun by Folk in Missouri, and which has spread until it has permeated the affairs of the nation, and the affairs of the states, entering the domains of business as well as the field of politics, should be considered by this organization of the mining industry, to the end that we may keep pace with the advancing business standards. If the rules of the game need revising, let them be revised; if there be housecleaning needed, let it be done. In short, let us advocate and press any measures that will elevate the business of mining. Some of us are fond of saying that when properly conducted mining is just as safe as any other business. With this view I cannot fully agree, because there is undeniably a greater element of chance in seeking mother earth's hidden treasures than there is about a mercantile or manufacturing business, where success almost invariably rewards ability, industry, enter- prise and foresight; if these qualities be properly displayed. In mining no amount of energy can make a mine if journalists who go through the market and endeavor to get an accurate opinion from the parties interested. These figures really mean nothing as to the size of lot, time and place of delivery or terms of payment. As to the quotations sent out by the New York M'etal Exchange, the "American Metal Market and Daily Iron and Steel Report," a trade journal published in New York City, said editorially in its issue of Decem- ber 5, 1906: AMERICAN MINING CONGRESS 75 "We are called upon to day and almost every day, to explain our copper quotations in the light of the official figures for copper issued by the New York Metal Exchange, and which today, and also for several days have been: Lake 22% to 223,4 Electrolytic 22Vs to 22% Casting 22 to 22%, "These prices are taken by the public press and copied and reproduced daily all over the country as correct, on account of being, as they say, "official." "While it is true, very few firms in the metal trade take any interest in this exchange or their prices, or even grace its precincts with their pres- ence, there should be sufficient who use the exchange, to take steps to stop this deliberate under-quoting of the market. "As regards our readers who are constantly at us for the difference be- tween our prices and the New York Metal Exchange official price, we refer them to our heading, which states 'Based on actual transactions/ What the other figures are based on we do not know, certainly not on tran- sactions, as no copper transactions are made on the New York Metal Ex- change." , | *] Lead Transactions in this metal in the wholesale market are on the basis of so much per pound, the size of lots, terms of delivery, and terms of payment being published regularly in the various technical and trade journals. But in dealings with producers the ore buyers in some regions continue to buy on a so-called "unit" basis, so aranged that there is sel- dom any close or tangible relation between the buyer's price per unit and the ruling price of the metal in the wholesale market. No Appeal From Rules of Ore Buyers. It is claimed by many small producers of ore, that the large producers are given a very unfair advantage over them in the matter of treatment charges. It is also claimed tha^the custom inaugurated by at least one of the great smelting companies of distributing additional compensation to its employes for faithful service during the preceding year is actuated by ulterior motive, which operates to the disadvantage of the producer. Your committee is not in the possession of data from any of the great smelting companies against whom these complaints and charges are made to show that such smelting company or companies are at all dissatisfied with present existing conditions. When we take into consideration the fact that one of the great smelting companies in its report for the year ending April 30, 1906, showed that the profits upon an original expenditure of some $30,000,000 or $40,000,000 were over $10,000,000 and that* this was but a slight increase in percentage of gain over the former year, the in- quiry naturally arises in the minds of your committee as to how this great accumulation of profit has been accomplished? And it seems to us that the conclusion would naturally arise in the minds of unprejudiced per- sons that the smelting business is wonderfully profitable, or is conducted along lines of advantage which are not to be shared by ore producers. In other words, the whole matter, as to treatment charges, weights, moisture, assays and value of different kinds of metals of which the ore is composed, and time of settlement, is absolutely in the hands of the smel- ters, and from their arbitrament and dictation there is. no appeal. Impediments to Organized Competition. No ore producer can build his own smelting works and operate it to advantage, without making provision for such ores as will combine with his own to make a good smelting mixture. The producer who attempts to set such an enterprise on foot usually finds that other producers, whose ores he needs, and who would ordinarily be willing to co-operate in the enterprise, are not free to do so because they have been allured 76 OFFICIAL PROCEEDINGS into long term contracts with "the trust." Because of these long term con- tracts, the producer who finds himself free can seldom get any co-opera- tion; and as all such contracts have been timed so carefully that not many important ones terminate during the same year, the producers, how- ever much they may sigh for relief, seldom succeed in getting together. In this respect, "the trust" must be given credit for its shrewd and adroit efforts to forestall further competition. It is complained further that railroad rates from many of the mining dis- tricts of the West are dictated by the traffic officials of the "smelting trusts" and that the rates are fixed so as to stifle competition from the out- side. The matter of railroad freight rates, however, is already receiving the attention of congress and of various state legislatures and we with- hold further comment on the subject, other than to advise the formation of local and state mine operators' associations for the purpose of fighting all such evils. Remedies Against Monopoly. The three most prominent remedies suggested are: First. Intervention on the part of the United States government. Second. Intervention by way of state legislation. Third. Intervention by organization of mine owners and operators throughout the country for the purpose of building, operating and main- taining their own mills and smelters. Under the first remedy suggested, "Intervention on the part of the United States government," your committee does not feel like making any recommendation other than that the American Mining Congress uses every effort in its power to convince the United States government of what we believe to be the absolute necessity of better recognition and protection of the mining interests of this country through a Bureau or Department of Mines and Mining. Under the second remedy, "Intervention by way of state legislation," on account of the difficulty of securing efficient state legislative action in some of the states we think that recommendation along this line would not be advisable at this time. The third remedy suggested, "Intervention by organization, of mine owners and operators, etc.," however, seems to us to be entirely practic- able and if wisely organized and judiciously managed will be eminently satisfactory and we would respectfully recommend it to the consideration of this Congress. About the legality of this remedy there can be no ques- tion. About its desirability, it seems to us, there can be no question, for the reputed dividends earned by the great smelting companies place their enterprises beyond the question of doubt as successful business and finan- cial propositions. And with this idea in mind your committee is dis- posed to discourage mine owners from contracting their output to any con- cern for such long periods in advance that they will be unable to join with their friends in enterprises of this kind whenever the time seems ripe. We feel that any objection which can logically be urged against the ownership of smelters and mills by mine owners and operators as a bus- iness proposition, are practically the same objections which could be urged against any such smelting companies as The American Smelting and Refining Company and the United States Smelting Company as bus- iness propositions. By way of illustration, permit us to state that not a great many years ago the mine owners and operators of the Cripple Creek mining district became aware of the fact that the railroad charges for transportation were exorbitant, and they were entirely at the mercy of certain railroads. This led to an idea on their part of building an independent road from Colorado Springs into the town of Cripple Creek, traversing the entire Cripple Creek district, as a means of outlet for their ores and transportation of their fuel and other mining supplies. The road was built and paid for by the mine owners and operators, and then began a bitter rate war which continued for a period of seven months. It was inaugurated by a compet- ing line to drive the new line out of business. However, the new line sur- AMERICAN MINING CONGRESS 77 vived and subsequently sold its holding to another railroad company, re- serving for its stockholders contracts with the different mine owners and operators which put them beyond the possibility of paying exorbitant rate in the future. The road paid its owners a good interest and profit on their investment, very materially reduced their transportation rates and was satisfactory in every particular. Conclusion. We desire to call attention to the fact that it is the purpose of the American Mining Congress to assist the mining and metallurgical in- dustries in all their branches, not only in the United States, but in all con- tiguous territory where these industries desire to be benefited by our efforts. And while we have been assisted in securing data for use in pre- paring this report by the earnest and hearty support of quite a large num- ber of mining men and operators throughout the country, for which and to whom we extend our hearty thanks, yet we deplore the fact that so many who could have co-operated with us have failed to do so. The reasons for this partial lack of co-operation are very evident to your committee; one of the principal ones being that should it become known by the smelt- ing companies that their business is being criticized by their patrons they might be discriminated against or perhaps refused treatment of their ore entirely. Still another is that producers who are wise to the situation sometimes obtain better concessions and better treatment and conse- quently have not so great cause for complaint as those who have not given the subject so much attention. Another is the general apathy which is very human and which exists to a greater or less extent among mining men as well as other people. Your committee would respectfully suggest that when we shall have been discharged from our duties in the premises, another and stronger committee be apopinted to take up and carry forward this work of inves- tigation and recommendation until such policy shall have been inaugu- rated and acted upon among mining men and operators as will insure for all fair, just, equable and satisfactory treatment in the reduction of their ore products. All of which is respectfully submitted. (Signed) GEORGE W. RITER. H. S. JOSEPH. MR. JOSEPH: I want to say at this time, gentlemen, that the com- mittee invites discussion upon the different points. You will readily see that we have not gone into details, or given statistical information because that is all on file with the Secretary. The statistics are on file, but our general findings are contained in the .report as read. COLONEL EWING: May I ask a question. Is that the report of the entire committee? MR. JOSEPH: I stated at the outset Colonel,, that a report had been partially made up in Denver and sent in by Judge Colburn and I have that report, but in making up our report we incorporated the vital points of Judge Colburn's report. His report is only signed by himself. After arriving here Mr. Riter and myself asked Judge Colburn by telegraph as to whether we could make modifications in the report which was sent here by him. He answered that he did not desire any changes made and probably out of justice to Judge Colburn his report ought to be read. I will read it if the Congress desires. I expected to file it with the Secre- tary. COLONEL EWING: I think we ought to hear the minority report. MR. JOSEPH: I will read this report of Judge Colburn, but I want to say that Mr. Rider and myself do not agree with this report. 78 OFFICIAL PROCEEDINGS REPORT ON THE MUTUAL RELATIONS AND GRIEVANCES OF ORE PRODUCERS AND CUSTOM SMELTERS. Your committee on Mutual Relations and Grievances of Ore Producers and custom smelters reports as follows: We desire to state in the outset that the subject assigned to us in rather large, complicated and difficult of treatment, for many reasons which are very obvious to us, and which possibly may become somewhat plain to you before the report is finished. Without going too minutely into details, we wish to state that among the matters complained of by the producers are the following: I. Exorbitant smelter charges. II. Unsatisfactory method of determining basis of settlement. III. Unsatisfactory settlements on account of arbitrary valuation placed upon different metals by the smelters; and refusal to pay for the ore under forty-five days to two months after treatment of same. I. Exorbitant Charges. The claims are made: That charges vary depending upon the value of the ore. Most producers are unable to understand that while a treatment charge of say $3.00 per ton .is made on ores not to exceed $10.00 in value, $12.00 or $15.00 is charged on ores valued at $200.00 and upwards; any more than they can understand why it costs a railroad company only 40 cents a ton to haul ores of low grade and from $4.00 to $6.00 a ton for ores above a certain grade. That, in localities where there is no competition among smelters, they are obliged to pay much higher rates for treatment of ore where competition exists. We are credibly informed that in one instance of contract where competition existed between smelters there was a differ- ence in treatment charges of $34.00 on lead ore of the value of $100.00 and less per ton. That in an extensive mining district where competition was started the smelters lowered treatment charges from one to three dollars per ton. That the tax for insoluble matter and for elemens seems to the producer to be altogether too great. II. Unsatisfactory Method of Determining Basis of Settlement. The claims are made: That the smelter assays are almost invariably low, and this is purposely done in many instances to secure splits on assays to reduce the basis of settlement. T,hat methods of umpiring are so arranged by the smelters that the producer almost invariably pays the umpire fees. That the methods of assaying used are those which favor the smelter and prevent the producer from receiving full value for his ores. That the full assay value of metals is not settled for. That a certain percentage of the value in some cases is subtracted from assay value; and in some instances, where full value is allowed, a certain percentage is deducted on settlement; both amounting to the same thing. III. Unsatisfactory Settlements on Account of Arbitrary Valuation Placed Upon Different Metals by the Smelters; and a Refusal to Pay for the Ore Under Forty-five Days to Two Months After Treat- ment of Same. The claims are made: That quotations from the Engineering and Mining Journal are taken by some smelters as a basis of settlement; and by many it is believed that this journal is owned and operated in the interests of a smelter or smelters and that its quotations are not always correct. Some settle- ments are based upon prices quoted by brokerage firms in New York City, who always quote prices lower than the regular New York quota- tions. AMERICAN MINING CONGRESS 7t) That while some smelters agree in their contracts with producers to settle upon quotations given in the Engineering and Mining Journal, they sometimes settle at less price than such quotations. That the smelters in a measure control the quotations upon which their settlements are made and that while under contract to settle on certain quotations they do not always do so. And one of the latest, and to our minds, one of the most vital com- plaints is that in certain mining sections the smelters now refuse to settle for ore until the lapse of forty-five days to two months after the treatment of the same. This, to your committee, seems to be a matter of very grave importance so far as present circumstances are to be con- sidered, and also to be very far-reaching in its results so far as the future is concerned. We are credibly informed that in some mining sections it would not only be possible, but highly probable that the smelters would be owing the producers from $1,000,000 tQ $2,000,000 within the two months specified. This rule of the smelters is very serious at this particular time when it is hard to provide currency as a circulating medium. And we fail to see the justice of furnishing the smelting com- panies with what would probably, in certain localities, amount to the continuous use of the interest on from $1,000,000 to $2,000,000. It is claimed by many small producers of ore, that the large producers are given a very unfair advantage over them in the matter of treatment charges. It is also claimed that the custom inaugurated by at least one of the great smelting companies of distributing additional compensation to its employes for faithful service during the preceding year is actuated by an ulterior motive, which operates to the disadvantage of the producer. Your committee is not in the possession of data from any of the great smelting companies against whom these complaints and charges are made to show that such smelting company or companies are at all dissat- isfied with present existing conditions. When we take into consideration the fact that one of the great smelting companies, in its report for the year ending April 30, 1906, showed that the profits upon an original ex- penditure of some $30,000,000 or $40,000,000 were over $10,000,000 and that this was but a slight increase in percentage over the former year, the inquiry naturally arises in the minds of your committee as to how this great accumulation of profit has been accomplished? And it seems to us that the conclusion would arise in the minds of unprejudiced persons that the smelting business is wonderfully profitable, or it is conducted along lines of advantage which are not to be shared by ore producers. In other words, the whole matter, as to treatment charges, weights, moisture, assays and value of different kinds of metals of which the ore is composed and time of settlement, is absolutely in the hands of the smelters, and from their arbitrament and dictation there is no appeal. Remedies. The three most prominent remedies suggested are: First. Intervention on the part of the United States government. Second. Intervention by way of state legislation. Third. Intervention by organization of mine owners and operators throughout the country for the purpose of building, operating and main- taining their own mills and smelters along lines similar to those now employed in the operation of the great smelting companies which now control the treatment of ores in this country. Under the first remedy suggested, "Intervention on the part of the United States government," your committee does not feel like making any recommendations other than that the American Mining Congress uses every effort in its power to convince the United States government of what we believe to be the absolute necessity of better recognition and protection of the mining interests of this country through a Bureau or Department of Mines and Mining. 80 OFFICIAL PROCEEDINGS Under the second remedy, "Intervention by way of state legislation," on account of the difficulty of securing efficient state legislative action in some of the states we think that recommendation along this line would not be advisable at this time. The third remedy suggested, "Intervention by organization of mine own- ers and operators, etc.," however, seems to us to be entirely practicable and if wisely organized and judiciously managed will be eminently satisfactory and we would respectfully recommend it to the consideration of this Congress. About the legality of this remedy there can be no question. About its desirability it seems to us there can be no ques- tion, for the reputed dividends earned by the great smelting companies place their enterprises beyond the question of doubt as successful bus- iness and financial propositions. Other remedies, such as competition and independent smelters, have been suggested and considered by your committee. Neither of these do we think would be of any permanent value for the reason that competi- tion might cease to be competition, and independent smelters, as in the past, might cease to be independent smelters and then the mining indus- try, so far as treatment of ores is concerned, would practically be in the same condition as at the present time. We feel that any objections which can logically be urged against the ownership of smelters and mills by mine owners and operators as a bus- iness proposition, are practically the same objections which could be urged against any such smelting companies as The American Smelting and Refining Company and the United States Smelting Company, as bus- iness propositions. By way of illustration permit us to state that not a great many years ago the mine owners and operators of the Cripple Creek mining district became aware of the fact that the railroad charges for transportation were exorbitant, and they were entirely at the mercy of certain rail- roads. This leads to the conception of an idea on their part of the building of an independent road from Colorado Springs into the town of Cripple Creek, traversing the entire Cripple Creek district as a means of outlet for their ores and transportation for their fuel and other mining supplies. The road was built and paid for by the mine owners and operators and then began a bitter rate war which continued for a period of seven months. It was inaugurated by a competing line to drive the new line out of business. However, .the new line survived and subsequently sold its holdings to another railroad company, reserving for its stockholders contracts with the different mine owners and operators which put them beyond the possibility of paying exhorbitant rates in the future. The road paid Its owners a good interest and profit on their investment; very ma- terially reduced their transportation rates and was satisfactory in every particular. We desire to call attention to the fact that it is the purpose of The American Mining Congress to assist the mining and metallurgical in- dustries in all their branches, not only in the United States, but in all contiguous territory where these industries desire to be benefited by our efforts. And while we have been assisted in securing data for use in pre- paring this report by the earnest and hearty support of quite a large num- ber of mining men and operators throughout the country, for which and to whom we extend our hearty thanks, yet we deplore the fact that so many who could have co-operated with us have failed so to do. The reasons for this partial lack of co-operation are very evident to your committee, one of the principal ones being that should it become known by the smelt- ing companies that their business is being criticized by their patrons they would be discriminated aganst or perhaps refused treatment of their ore entirely. Still another is that the producers who are wise to the sit- uation sometimes obtain better concessions and better treament and consequently have not so great cause for complaint as those who have not given the subject so much attention. Another is the general apathy which is very human and which exists to a greater or less extent among AMERICAN MINING CONGRESS 81 mining men as well as other people. However, if we are to expect the best results we must be thoroughly united in our efforts. Your committee would respectfully suggest that when we shall have been discharged from our duties in the premises, another and stronger committee be appointed to take up and carry forward this work of inves- tigation and recommendation until such policy shall have been inaugu- rated and acted upon among mining men and operators as will insure for all fair, just, equable and satisfactory treatment in the reduction of their ore products. All of which is respectfully submitted. (Signed) E. A. COLBURN, Chairman H. J. CANT WELL, OF MISSOURI: As the majority report seems to embody all contained in the minority report, and as the minority report contains a criticism of the Engineering and Mining Journal, I move that the minority report be laid upon the table, and the majority report be incorporated in the minutes. COLONEL DORSET: You speak of a majority report and a minority report. This Congress appointed a committee of five gentlemen to report upon these facts. As stated, the secretary sent out some 1,500 requests for the different mine owners to answer. I went to a dozen of those men and requested that this information be given. Not one responded for the reason given in those reports. They were afraid to do it. I am satisfied they had contracts with the railroads and with the smelters to their advantage so they were afraid to say anything. I submit there is no ma- jority report here. Mr. Joseph and Mr. Riter make a report. Judge Col- burn makes a report. I think it is wise to publish the report made by Mr. Joseph and Mr. Riter. Let Judge Colburn's lay on the table for the reason that the other report contains everything except this criticism perhaps. Then if you desire, discharge this committee and appoint an- other committee to take this matter up and report to the next session of the Congress. GEORGE W. RITER, OF UTAH: As one of the members of the committee who is responsible for this report which was first read, I think it is fair to state to the Congress that the other members of the committee met with us, traveling long distances, and we were in session for several days at a time. I should like to state that although the other members of the committee are not here with us and have not joined in the report first read, the reason for that is this, the report was not made up until our arrival in Joplin the report in its final form. Consequently it has been signed by Senator Joseph and myself who are here. It is fair to the other members of the committee, however, to state that in all ses- sions of the committee the members have been in perfect harmony, and I have no reason to believe that the other members of the committee would be unwilling to add their signatures and give their support to our report. I think it is fair also to state that those figures which are quoted in the report have been given with the express permission of the operator who furnished it, and that the committee has been guided entirely by its pledge not to divulge information given it in confidence. I may say in conclusion that Senator Joseph and I do not join in Judge Colburn's report be- cause it contained things we cannot agree upon. We who are operating and selling ores in a district where competition has reached a maximum, where one of the smelter managers has given us honest information for this report and has stated that more tons of ore are being smelted today with better results than in any other smelting center in the country, are inclined to recommend competition as a good thing. W. R. INGALLS, OF NEW YORK: I arise, not to discuss the report just read, but to make a simple statement with reference to the criticism which Judge Colburn has made in his report of the Engineering and Mining Journal. H. S. JOSEPH: I arise to a point of order. My point of order is this that there is a motion before the house and that prevents a dis- 82 OFFICIAL PROCEEDINGS cussion of the two reports before the convention at this time. Unless the gentleman desires to speak on a question of personal privilege to refute certain statements made by Judge Colburn in his report he is out of order. MR. INGALLS: That is it. MR. JOSEPH: Let me say to Mr. Ingalls, that probably he misunder- stood. That is not the committee's report. MR. INGALLS: I understand that and intend simply to make a brief statement of fact. CHAIRMAN BUCKLEY: If there are no objections Mr. Ingalls will have permission to make his statement. MR. INGALLS: The Engineering and Mining Journal is owned by the Hall Publishing Company. The entire stock of the Hall Publishing Company is owned by its own officers and employes. I make this state- ment as a director in chief of the Engineering and Mining Journal and as a director and manager of the Hall Publishing Company. MR. MALCOLMSON, OF KANSAS CITY: Do I understand, Mr. Chairman, that this matter is now open for discussion? CHAIRMAN BUCKLEY: The reports are now open for discussion. MR. MALCOLMSON: For a number of years I held a general power of attorney for the American Smelting and Refining Company, but since 1902 I have been in business of mining on my own account. I would like to make a few remarks regarding this matter. In the first place I would protest against the assumption that the ex- tra money paid by that company to its employes for increased efficiency is paid to them because of the amount of money that they steal from the miners. Is that the way I understand tte report of Mr. Joseph? MR. JOSEPH : That there was a suspicion well grounded. MR. MALCOLMSON: These bonuses are paid to employes for effi- ciency, resulting in increased profits, and in no organization is it possible for efficiency and dishonesty to go together. Most of the employes to whom the increase in the way of a bonus is paid are metallurgists, sup- erintendents and others, who do not come into contact with ore sellers at all, and are in no way able to influence or affect settlements with the customers of the company. It is good in law, and should be good else- where, that definite proof must be obtained before accusations of the kind mentioned by the delegate from Utah be made against a number of repu- table men, based merely on suspicion without any proof whatever is ridic- ulous, and never should have been made. MR. RITER, OF UTAH: The members of the committee submitting this report recognizes that custom smelting is a legitimate industry, and so long as it is conducted along that line, and so long as the smelters are fair in their methods of dealing with patrons, there is no complaint. We do object, however, to profits being made by subterfuge. Some time ago, there came into my hands a detailed statement, made by the Treasury Department, covering the purchase of several million ounces of silver for the mint. On comparing these prices by dates with the prices that had been sent out from New York for the use of the smelters, it was found that in every instance the price paid by the government was higher than the so called ''official" quotation, the discrepancy being almost too large to be explained by such items as expressage, insurance, interest on the money and so on. I finally directed an inquiry to the firm responsible for the New York quotation, stating that our company was selling its ores under a contract which provided that the silver contents should be paid for on the basis of official prices as quoted by the firm from day to day and asking how the quotations were arrived at. There had ap- peared last spring, in response to inquiries from a number of mining men including myself, a valuable article in the Engineering and Mining Journal on, "How Metals are Sold." Among other things, it recited the basis on which silver is sold, and stated that the price is governed by the London market. According to the article, which I have every reason to AMERICAN MINING CONGRESS 83 believe correct, at a certain hour each day the silver brokers in London meet and fix upon the price of silver for the day. At that price they agree to buy such quantities of silver as may be offered, within rea-~ sonable limits, and also agree to fill such orders from consumers as may be placed at that price, exacting, more than likely, a reasonable commis- sion. This article was cited- to the firm that .sends out the New York "official" quotation, and the firm was asked whether it followed the rule of the London brokers and undertook to fill orders from consumers at the price quoted. It said: "No. The price we give out from day to day is the price at which we are willing to buy." Now it is to be presumed that the men who are putting out bullion, placing it on the market, are aware of these conditions, and yet all of the contracts that I have ever seen, which the mining men have to sign, recite that the silver contained in ores shall be paid for on the basis of the quotations issued by this firm, which, according to its own statement, does not undertake to sell to consumers at its price, but the price given out is the price it bids for the metal. It might be well to state further that a large portion of the copper produced in the United States is sold by one company, but this company, according to statements made by the editor of the Engineering and Mining Journal, statements made by him personally, does not fur- nish and has persistently refused to furnish for publication any data con- cerning its transactions and prices. In the absence of definite infor- mation from the people who ultimately sell the copper from our mines, we contract in advance to sell to the smelters on the figures quoted in the Engineering and Mining Journal, figures that are made up by journal- ists who go through the market and endeavor to obtain an accurate opin- ion from the parties at interest. While not complaining of this journal as now conducted, we remember that it has changed hands more than once, and we should like some legal guarantee thac the figures we con- tract in advance to accept, will represent actual market conditions, tran- sactions with consumers being considered in their bulk. The smelting and refinining companies knowing the real facts at ail times and being in position to correct any published errors, could give such a guarantee, but refuse to do so. The parties whose figures we contract to accept are not bound to furnish correct ones. If they give out figures which are not correct we can do nothing but accept them. The point of it all is that the companies who are purchasing and selling metals, who are best posted o.n the actual conditions of. the market, are the ones who refuse to give out accurate information as to what the market is. They compel us to ac- cept the figures of third parties, but refuse to guarantee the correctness of the figures. MR. JOSEPH, OF UTAH: From Mr. Malcolmson's remarks it would appear that the American Smelting and Refining Company is an angel of charity and justice, never did anything wrong, or dared to do anything wrong, always on the side of right, but the ore producers come to us with their complaints telling us they are not treated fairly and asking the American Mining Congress to help them out. Some have even gone so far as to go to President Roosevelt, the trust-buster, and asked the inter- vention of the government to regulate this octopus, the American Smelting and Refining Company. Mr. Malcolmson states he believes this bonus which the committee referred to is being paid annually to the employes for efficiency. Well, I don't see that the poor furnace tender that gets $2 a day gets any bonus for his work, but the clerks that do the figuring, they get the bonus. In reference to another criticism on the part of the gentleman from Missouri with reference to contracts. The committee examined a.great many contracts and I would say that it would defy the efforts of a Phil- adelphia lawyer, much less a Missouri lawyer and I know Missouri has some pretty good things, to unravel these contracts. They read so that the average ore-producer is unable to understand what is in those con- tracts. 84 OFFICIAL PROCEEDINGS As to quotations, this is what the ore producer is butting up against. We are confronted with two different quotations. The Engineering and Mining Journal has a quotation, and that is the standard the ore producer is willing to take, but the ore producer does criticise these manufacturers quotations given in the Trade Journals and in the Associated Press pos- sibly. We would like to ^see the quotations on the metal the same in one part of the country as 'it is in another, and that is what we do not see. CHAIRMAN BUCKLEY: The motion before the convention is that the minority report be placed on the table and that the majority report be accepted and placed on file, and that the Congress recommends that a new committee be appointed to replace the old. That the old com- mittee be discharged and a new committee be appointed. Which motion was carried unanimously. . MR. JOHN DERN OF UTAH: I move you, sir, that the present com- mittee or that the committee which has just been discharged be continued or re-appointed for another year. CHAIRMAN BUCKLEY: I believe that the motion just voted upon provided that a new committee be appointed, so that the appointment of the new committee would be delegated to the President. MR. JOHN DERN, OF UTAH: I will withdraw my motion and sub- stitute this one: I move that this Congress recommend to the president of the Congress that the members of the committee which has just re- ported who are present and have served faithfully upon this committee be reappointed on the committee to be appointed for the next year, and that additional members be appointed to complete the committee of five. MR. MALCOLMSON : I would like to say that I hope you will have a man on that committee who knows something about the smelting indus- try, in addition to men who know about the mining industry. MR. JOSEPH, OF UTAH: At this point I would like to state that the American Mining Congress challenges discussion of this important ques- tion with the American Smelting and Refining Company, but their rep- resentatives are not here today. CHAIRMAN BUCKLEY: Are you ready for the question carried. MR. DORSE Y, OF NEBRASKA: The committee on resolutions re- ports back resolution introduced by Mr. Mills, thanking the city of Joplin for their entertainment. In moving its adoption I ask that a rising vote be taken. The motion being duly put by the chair was unaanimously carried. Resolutions of Thanks. Whereas, The citizens of the city of Joplin have more than fullfilled the promises made by the Missouri delegation when the city of Joplin was selected" as the place of holding the session of 1907 of the American Min- ing Congress, and Whereas, The officers, members and delegates of the Congress have been received with true Southern hospitality combined with Western en- thusiasm, Resolved, That the members and delegates of the tenth annual session of the American Mining Congress hereby express their hearty apprecia- tion of the courtesies extended by the citizens of Joplin. Resolved, That the special thanks of the Congress be extended to the warm hearted, generous and apparently tireless ladies of Joplin, who have, by their attendance at the session of the Congress, by their gener- osity, courtesy, thoughtfulness and untiring zeal, done so much to make this session of the Congress the most enjoyable ever held. Resolved, That the thanks of this Congress be extended to the Mayor of the city of Joplin and the Joplin Commercial Club for their assistance in making the tenth annual session notable and successful in achieve- ment. AMERICAN MINING CONGRESS 85 Resolved, That the thanks of the Congress be extended to the press of the city of Joplin, which has, by its uniform courtesies and its equal justice contributed in no small degree to the success of the session. Resolved, That the thanks of this Congress be extended to the citizens of Galena, Baxter Springs, Webb City, Carterville and Carthage, for their hospitality so generously offered and given by them. Resolved that the thanks of this Congress be extended to the Mine own- ers of the Joplin district for the opportunity afforded to members and dele- gates to examine mines and milling methods so successfully practiced. Resolved, That it is the intent of these resolutions to convey to each and every officer, citizen and organization in the city of Joplin, an ac- knowledgement that nowhere has this Congress been received with more liberality or enthusiasim, and Be It Further Resolved, That a copy of these resolutions be forwarded to the Mayor of Joplin, the Joplin Club and the press. MR. GREGG OP MISSOURI: On behalf of the people of Joplin I de- sire to express the thanks of the people of Joplin and all of those referred to in that resolution for the handsome recognition given for any courtesy which we may have rendered, (applause.) M'R. CANTWELL, OF MISSOURI: I have a short resolution which I desire to offer. The secretary then read the resolution as follows: Resolution No. 10 Introduced by H. J. Cantwell of Missouri. Resolved, That it is the sense of this Congress that it is unwise and inexpedient for any official of this Congress to make any report in his official capacity on any individual mine, or other commercial enterprise, and that the work of the information bureau of the Congress be hereafter confined to the circulation of the official printed documents of the Con- gress, which shall be sent out under such rules and regulations as may be prescribed by the Board of Directors. VICE PRESIDENT BUCKLEY: I would like to announce that the report of the committee appointed to investigate the laws of the various states with a view to suggesting additional protection for mining investors will be taken up this afternoon. I would suggest that the members be here promptly at 2:30 at which time we will listen to a short address on the International Mining Exposition at M'adison Square Garden in New York City, by Mr. W. M. Porter. A motion for adjournment is now in order. A motion to that effect being made and seconded, upon being put was unanimously carried, and a recess taken until 2 o'clock p. m. THURSDAY, NOVEMBER 14, 1907. Afternoon Session. PRESIDENT RICHARDS: The Congress will be in order. COLONEL DORSEY, OF NEBRASKA: The committee on resolu- tions report favorably on resolution No. 3 introduced by Samuel R. House of Denver, which I will ask the secretary to read. The secretary read resolution as follows: Resolution No. 3. (By Samuel R. House.) Whereas, It is apparent that the free importation of foreign zinc ores into the United States is inimical to the direct interests of the miners of zinc ores in the United States, and Whereas, The principle of protection has been applied to the produc- tion of spelter and unrefined zinc products; therefore, be it 86 OFFICIAL PROCEEDINGS Resolved, By the American Mining Congress in convention assembled, that the Congress of the United States be urged to impose such a duty on the importation of zinc ores into the United States as will protect the interests of the miners of zinc ore. On motion made, duly seconded and put, the resolution was adopted: Motion was made and seconded that the report of the committee of which Mr. Downey is chairman, be fixed as a special order for four o'clock. Being duly put the motion was unanimously carried. PRESIDENT RICHARDS : " The next order on the program is ad- dress entitled "The International Mining Exposition of M'adison Square Garden, New York City," by W. M. Porter. Mr. Porter's address will be found on page 149 of this report. MR. FRANK E, WIRE of Illinois: I have a resolution I would like to offer and ask the Secretary to read it. Secretary read the resolution as follows: Resolution No. 11. (Introduced by Frank E. Wire of Illinois.) Resolved, That the American Mining Congress accept this invitation from the International Mining Exposition Company to co-operate with them in holding this exposition at Madison Square Garden, Ne.w York, and to that end, as an educational measure for the benefit of the mining industry, the American Mining Congress extends the invitation to the United States government, states and territories, foreign countries, min- ing associations, manufacturers of mine equipment, and mine owners, to participate in this exposition. PRESIDENT RICHARDS: The time has now arrived for our sub- ject "Symposium on Mining Engineering. Education," led by Dr. Victor C. Alderson, President of the School of mines of Colorado. Dr. Alderson's address will be found on page 162 of this report. COL. DORSEY of Nebraska: There is an important resolution on the desk of the Secretary I would like to have him read. Secretary then read the resolution as follows: Resolution No. 12. (Introduced by Judge J. H. Richards.) Resolved, That the American Mining Congress urges the establish- ment under the Department of the Interior at the approaching session of Congress of an independent Bureau of M'ines and Engineering Investi- gation, with ample authority and funds for, (a). The investigation of, and inquiries into the nature and extent of the mine and quarry industries; the cost, method and processes employed in the mining, handling transporting and treatment of mineral products in the United States, the territories and insular possessions; and the recommending of legislation appropriate thereto; with the view of bene- fiting these industries, by improving mining conditions, developing more efficient methods, and preventing mine and quarry accidents as well as unnecessary waste, and of securing thereby the wise utilization and con- servation of our fuels and other mineral resources. (b) The investigation in foreign countries concerning mining, hand- ling, treating and using of fuels and other mineral products, with a view to benefiting American industries. (c) The investigation of, and inquiries into, the engineering problem of the government, the testing of materials belonging to or for the use of the government of the United States; and the making at cost of similar tests and investigations for state or municipal governments and other parties, under such regulations as may be prescribed by the Secretary of the Interior. (d) The co-operation with the Geological Survey in determining the value of mineral resources in the United States; and with the Survey AMERICAN MINING CONGRESS 87 as well as the General Laud Office and the Forest Service in the disposi- tion and management of the mineral lands belonging to the Federal government. (e) The publication, in such form as to be readily available, of the information obtained from all these investigations and inquiries; the wide and prompt distribution of these publications among the mining men of the country; and co-operation of impartial government experts in fur- ther education work by public addresses in mining camps and at the meetings of men associated with mining and quarrying industries with a view to prevention of accidents, and of waste, and the adoption of more efficient methods. Resolved, That realizing the increasing importance of the work of the United States Geological Survey as furnishing an intelligent founda- tion for the development of the mining, agricultural, forestry, and other great industrial developments in this country, the American Mining Congress respectfully urges the Congress of the United States to grant larger appropriations for the surveys and other investigations of the Geological Survey, so that the results may be reached rapidly enough to more nearly meet the growing needs of the country, especially in rela- tion to: (a) The classification of the public lands; (b) The topographic surveying of the United States and the ex- ploration and mapping of the geological formations, ore bodies, mineral deposits, etc. (c) The investigations concerning the nature, extent and origin of these deposits, and the relation of the rock formations to the character of the soil derived therefrom. COL. DORSEY: Gentlemen of the Convention: This resolution is offered by our worthy President and has been prepared by him after con- sultation with your Board of Directors and the Committee on Resolutions. It embodies what the Secretary of the Interior at Washington desires regarding our views as to the establishment of a Bureau of Mining in the city of Washington under the control of the Secretary of the Inte- rior. After consultation of my colleagues on the Committee on Reso- lutions we have determined to bring the resolutions direct before the convention for action. I therefore move you, Mr. President, that the rule requiring the sending of all resolutions to the Committee on Resolutions be suspended and that this resolution be now considered by the Congress. PRESIDENT RICHARDS: It has been moved and seconded that the rule be suspended which requires the submission of all resolutions to the Committee on Resolutions. The question now is as to the suspen- sion of the rule. Motion was unanimously carried. COL. DORSEY of Nebraska: I move the adoption of the resolution as read. The motion being duly seconded, was put and unanimously carried. PRESIDENT RICHARDS: The next topic on the program is "What the Profession can reasonably Expect from the Mining School Graduate," by Dr. Milnor Roberts. R. H. KEMP of Minnesota: Mr. President, I was requested to read the paper by Dr. Roberts, but at this time I would like to suggest, owing to the lateness of the hour and the r fact that there are many papers which will be presented by the authors who are present, that we dispense with the reading of this paper, but have it published without reading. PRESIDENT RICHARDS: If there is no objection it will be so or- dered and the paper will be filed for record. Dr. Roberts' paper will be found on page 172 of this report. The next on the program is the "Relation of the Mining School to the the Mining Industry," by Prof. Robert H. Richards of Boston, Massa- chusetts. 88 OFFICIAL PROCEEDINGS DR. HENRY M. PAYNE: Mr. President, I understand that Prof. Richards' paper is of extreme interest, and would suggest that it be handed over to the Secretary and published in the usual course where members may have an opportunity to read it. Prof. Richards' paper will be found on page 185 of this report. PRESIDENT RICHARDS: If there is no objection we will take that order. The . next topic is "Secondary Technical Education Applied to Mining," by Mr. Lewis Young, Director of the School of Mines of Mis- souri. Prof. Young's paper will be found on page 178 of this report. PRESIDENT RICHARDS : The next topic is "The Value of Cor- respondence Instruction to the Mining Man," by M'r. H. H. Stoek, Editor of Mines and Minerals of Scranton, Pennsylvania. Mr. Stoek's paper will be found on page 199 of this report. PRESIDENT RICHARDS: The time has arrived for the special order. We will now hear from Mr. C. J. Downey of Colorado, Chairman of the committee appointed to investigate corporation laws of various states with a view to suggesting additional protection for mining investors. ' Mr. Downey presented the report of the committee as follows : Members and Delegates of the American Mining Congress: This committee respectfully begs leave to report that it is easier to devise than to demonstrate methods of preventing fraudulent mining schemes. By the very nature of the case, the demonstration of methods must be expected to follow the approval and action of this Congress, with respect to the proceedings of this committee. The committee, therefore, has limited itself to the task of devising methods. This committee begs leave, first to congratulate the Congress upon the passage by several state legislatures of the so-called Pardee meas- ure, concerning fraudulent stock representations, recommended by the Congress at its ninth annual session, and to urge that the effort be con- tinued to procure its adoption in other states. The report of this committee falls under five topical heads, repre- senting the five recommendations which it presents to this Congress: First. Concerning a proposed legislative enactment to compel the organizers, directors or promoters of corporations founded upon indefinite or prospective property values, to justify the issuance of full paid stock for such property by filing a complete schedule of facts concerning the same with the secretary of state. Second. Concerning a campaign of education, in behalf of probable mining stock buyers, through the media of the city and country press, this campaign to be conducted in the name of the American Mining Congress. Third. Concerning a proposal to secure the cumulative voting privi- lege for minority stockholders in all states where this privilege has not already been secured by statute. Fourth. Concerning a set of resolutions respectfully urging upon the secretaries of states and attorneys-general of the various mining states and territories the importance of seeing to the enforcement of all local requirements affecting foreign corporations; that is, corporations organized under the laws of other states or territories. Fifth. Concerning the proposed establishment of a standing commit- tee of five, the majority of whom shall be practicing attorneys, for the purpose of initiating or considering proper changes in, or additions to, the corporation laws of our states, insofar as they affect or may be made to affect the interests of stock investors. First. Owing to the variations in the corporation laws of our various states, especially as illustrated by local court decisions bearing upon the same, this committee has found it impossible to recommend to this Congress any general or uniform measure for presentation to the legislatures of those states where the organizers, directors or promoters of mining cor- AMERICAN MINING CONGRESS 89 porations should be required to fully certify the facts concerning their financial operations. It, therefore, presents to this Congress a TYPE of such a measure, one which the committee is satisfied is sustained by the decision of at least one Western state (Colorado), and it recommends that this Congress adopt the said measure as a TYPE of a publicity law to which this Congress gives its hearty sanction, the enactment of proper statutes in the several states to be urged in accordance with the princi- ples thereby approved. The following type of publicity measure is ac- cordingly recommended to the favorable consideration of this Congress: AN ACT ENTITLED AN ACT TO CONTROL THE ISSUANCE OF THE FULL PAID CAPITAL STOCK OF CORPORATIONS FOR PROP- ERTY, TO PROVIDE FOR THE CERTIFICATION OF INFORMA- TION CONCERINING SAID PROPERTY AND THE STOCKS SO IS- SUED TO THE STATE, TO REQUIRE AN ANNUAL REPORT TO THE STATE BY CERTAIN CORPORATIONS, TO FIX PENALTIES FOR THE VIOLATION OF THIS ACT, AND TO IMPOSE CERTAIN DUTIES UPON THE SECRETARY OF STATE. Be It Enacted by the General Assembly of the State of Colorado: Section 1. Whenever the board of directors of any corporation, ex- isting under and by virtue of the laws of the state of Colorado, shall cause to be issued any portion of the capital stock of said corporation in exchange for property, the said capital stock being issued as full paid, it shall be the duty of the said directors, within thirty days immediately succeeding the issuance of said full paid capital stock and the acceptance of the said property as full consideration therefor, to file with the secre- tary of state of Colorado a signed and sworn certificate of the transaction aforesaid, which shall contain also a declaration of the value of said prop- erty, as a reasonable equivalent of the full paid stock issued in exchange for said property; provided only that the said declaration may be sub- ject to the following described specifications, to-wit: First. That the declared value of the said property, in whole or in part, is representative of a true market appraisement of the value of said property, in whole or in part, and to this extent, as described or de- fined, immediately available for productive use or valuable service to the possessor thereof. Second. That the declared value of said property, in whole or in part, is representative of an implied future or prospective value inherent in said property, in the judgment of the directors; the said implied fu- ture value being dependent upon undetermined factors of experiment, ex- ploration, equipment or other means of exploitation, without which the said implied future value must forever remain undisclosed. r Sec. 2. In case the said directors of any corporation shall certify to ihe value of the property issued in exchange for the full paid stock of the said corporation, subject to the two specifications of value, as provided in section 1 of this act, it shall be the duty of said directors to clearly define the proportions in which the market or appraised value of said property and the implied future value of said property are represented by the said declaration. Failure to specify the implied future or prospective value of any property, accepted in exchange for the full paid stock of the corporation, when the said implied future value is manifestly an in- crement of the total valuable consideration for said full paid stock, or any evasion or false representation as to the actual present value, or implied future value, of said property, shall be a misdemeanor, punishable by fine or imprisonment, as hereinafter provided. Sec. 3. Whenever the directors of a corporation shall certify to the secretary of state the implied future or prospective value of any prop- erty, transferred to the said corporation in exchange for the full paid 90 OFFICIAL PROCEEDINGS stock of the said corporation, it shall be the duty of the said directors to comprise within or, attach to their said declaration, as a part thereof, a description of the said property with respect to the following particu- lars, to-wit: (1) Its location within a given state, county, township and section; (2) the nature of the legal title thereto; (3) the industrial or commercial character of the same, and (4) a description of its physical extent or amount; except in the case of leaseholds, contracts of purchase or other written instrument signifying possession of real property, in which case the real property itself shall be described with respect to the particulars set forth in this section; also the said directors shall accom- pany their declaration with, or attach thereto, a signed and sworn report of an expert authority, fully describing (1) the limitations of the said property, or the property represented by leasehold, contract of purchase or other written instrument of possession, with respect to its imme- diate productive use or valuable service, and the element of uncertainty existing in the value of said property, together with (2) the nature of the experiment, exploration, equipment or other means of exploitation, which, in his judgment, are necessary in determining the actual value of said property, and (3) the probable expenditure of cash or labor or both in completing said experiment, exploration, equipment or other means of ex- ploitation. In case the property transferred to the said corporation, in exchange for its full paid stock, is unproductive or prospective mining property, in whole or in part, or a leasehold, contract of purchase, or other written instrument signifying possession of unproductive or prospective mining property, in whole or in part, wherein the ores or valuable minerals ex- posed to the knowledge of its owners are not sufficient to warrant a valu- ation equal to the full payment of the capital stock so issued, the expert authority mentioned in this section shall be a practical mining engineer, who shall, in furtherance of the provisions of this act, certify to the sec- retary of state (1) the amount of underground development done upon the said property; (2) a description of the surface and underground equipment appurtenant thereto; (3) the approximate amount of ores or val- uable mineral exposed, if any, (4) his estimate of the gross value of the ores or valuable minerals so exposed; (5) the nature of the titles under which said property is held, as revealed by the public records, and (6) the limitations, the uncertainty, the necessary forms of exploitation and the necessary expenditures with respect to said property, as hereinbefore provided. Failure of -directors to comply with the provisions of this section shall be deemed a misdemeanor, punishable by fine or imprisonment, as here- inafter provided. Sec. 4. Whenever the directors of any corporation shall cause to be issued any portion of the capital stock of said corporation in equivalent, exchange for property having an implied future or prospective value, iE whole or in part, and shall certify to the said transaction, as provided in section 1 of this act, it shall be the duty of the said directors to file in- stanter with the secretary of state a certificate containing the following re- scribed particulars, to-wit: First. The name and address of the last previous owner of said prop- erty, and a statement with respect to any contract, agreement or under- standing which he may have with any or all of the said directors or with any organizer or organizers, affecting the subsequent use of the stock of said corporation for and in behalf of the said corporation and its stock- holders. Second. The amount of full paid capital stock of the said corpora- tion of original or subsequent issue, if any, accepted or designed to be ac- cepted by the said directors as trustees for and in behalf of the said cor- poration and its stockholders, or of any cash proceeds from the sale of any of the company's full paid stock, accepted or designed to be accepted for the use and benefit of the said corporation and its stockholders. AMERICAN MINING CONGRESS 91 Third. The name and address of any officer, director, stockholder, trustee or agent into whose hands the company's full paid stock of original or subsequent issue has passed by virtue of expected cash considera- tion from the sale thereof for the use and benefit of the said corpora- tion. Fourth. The nature of any contract, agreement or understanding by and between the said officer, director, stockholder, trustee or agent with respect to the subsequent cash or market price of any of the said corpo- ration's full paid capital stock, by virtue of any expected cash considera- tion to the said corporation from the sale thereof, or with respect to any commissions, bonuses, funding expenses or other outlays incident to the said sale of the said full paid capital stock; also a statement whether or not there exists any contract, escrow agreement or understanding by and between the parties herein mentioned to assure to the said corpora- tion any proportional benefits from the sale of any of the capital stock of the said corporation, made under and by virtue of the public market for said stock created through the said contract, agreement or understand- ing. Failure of directors to comply with the provisions of this section shall be deemed a misdeameanor, punishable by fine or imprisonment, as here- after provided. Sec. 5. Whenever, by virtue of any contract, agreement or under- standing by and between the directors, organizers or incorporators of any corporation or any of said directors, organizers or incorporators, and any officer, director, stockholder, trustee or agent of the said corporation, the said officer, director, stockholder, trustee or agent shall issue or cause to be issued, a printed prospectus, book or pamphlet for general public cir- culation, in furtherance of the advertising and marketing of any of the capital stock of said corporation, the said capital stock being full paid in exchange by the said corporation for property having an implied future or prospective value, in whole or in part, in accordance with the specifi- cations set forth in section 1 of this act.; it shall be the duty of the said officer, director, stockholder, trustee or agent furthering the sale of said full paid capital stock to duly print in said prospectus, book or pamphlet a, transcript of all declarations and certifications filed with the secretary of state under the provisions of this act, as hereinbefore recited; provided that the said officer, director, stockholder, trustee or agent may print or cause to be printed, in prominent typographical characters within the first three successive pages of the said prospectus, book or pamphlet, the words "Official Prospectus, Published in Compliance with the Statute of the State of Colorado;" provided that the said officer, director, stock- holder, trustee or agent shall, by so publishing the said imprint in the said prospectus, book or pamphlet, be acquitted of any further requirement to print said declarations certifications in other printed advertising, circulars or letters. Failure of any officer, director, stockholder, trustee or agent, to comply with the provisions of this section shall be deemed a misde- meanor, punishable by fine or imprisonment, as hereinafter provided. Sec. 6. Any corporation whose board of directors shall certify to the secretary of state the issuance of any portion of its capital stock as full paid in exchange for property having an implied future or prospective value, as provided in section 1 of this act, may, a't any time, file with the secretary of state a declaration, signed by the then existing board of di- rectors, setting forth that the said property has, by experiment, explora- tion, equipment or other means of exploitation, proven to be of actual value, by virtue of productive use of valuable service to the possessor, equivalent to the face value of the full paid stock issued in exchange for the said property; but any false representation upon the part of the said directors as to the proven equivalent value of the said property, under the provisions of this section, shall be a misdemeanor, punishable by fine or imprisonment, as hereinafter provided. Any corporation subject to the provisions of this section, as hereinbefore recited, which has not filed the said declaration of proven equivalent value, shall, by its board of di- rectors, annually file with the secretary of state, between the first day of 92 OFFICIAL PROCEEDINGS January and the first day of April, a statement showing (1) the amount of cash received into the treasury of the said corporation during the year ending December 31st last past, together with the amount separately stated, of any cash balance remaining in the treasury from any previous fiscal per- iod; (2) the nature of the source or sources from which said new cash was received; (3) the amount of any expenditures or disbursements made from the treasury of the said corporation during the year ending December 31st last past; (4) the nature and destination of said expenditures or dis- bursements; (5) the nature and amount of any liens or encumbrances that may rest upon any of the company's property, and (6) the nature and amount of any experiment, exploration, equipment or other means of ex- ploitation, whereby it was proposed to transfer the implied future or prospective value of any property assets of the said corporation into the category of proven equivalent value, as defined in this act. Failure to file said annual statement shall constitute a forfeiture of the charter of the said corporation, but the said charter may be revived by the payment to the secretary of state of the sum of $100 and the filing of the last delin- quent annual statement as aforesaid. Sec. 7. Wherever in this act the failure of directors or of any officer, director, stockholder, trustee or agent to comply with the provisions of any section hereof is proclaimed as a misdemeanor the penalty for such failure shall be a fine of not to exceed $500 or imprisonment in the county jail for the term of not to exceed three months; provided that, in the case of the duties of directors, as prescribed in sections 1, 2, 3 and 4 of this act, any director may urge as his defense the records of any meeting of directors showing that he has, by resolution or otherwise, sought to set in motion the functions of the board of directors in compliance with this act, or that he has voted in favor of compliance with this act, or that he has dissented from any agreement or understanding to the contrary. Any false certification or declaration filed with the secretary of state in pretended compliance with the terms of this act shall be deemed a felony, and any director consenting to such felonious certification or dec- laration shall, upon conviction, be subject to imprisonment in the state penitentiary for a term of not to exceed two years; except that any signed and sworn report filed by the directors of a corporation in compliance with the provision of section 3 of this act, requiring the filing of a report from an expert authority or mining engineer, shall be deemed the work of the said expert authority or mining engineer and not chargeable to the said di- rectors; provided that this exception shall not be construed to inhibit the .charge of a conspiracy, as between the said directors and the said expert authority or mining engineer. In the case of a false report by an expert authority or mining engineer, the said expert authority or mining engin- eer shall be subject to the usual penalties for perjury. Sec. 8. It shall be the duty of the secretary of state to accept for fil- ing all certifications, declarations, and reports provided for under this act; and he may exact fees for the filing of the same provided that the fee for any single certification, declaration or report shall in no case exceed the sum of one dollar. In the event that the directors of any corporation shall fail to comply with the provisions of this act, as prescribed in sections 1, 2, 3 and 4, it shall be the duty of the secretary of state to promptly notify the attorney general of the circumstance and supply him with the state documents bearing upon such breach of the law, to the end that the at- torney general may proceed against the offenders. Sec. 9. In the event of any request for a certified copy of any docu- ment or report, filed under the provisions of this act, the secretary of state may cause the same to be made and delivered upon the receipt of the usual transcript fees. The Abolition of Par Value. As a supplement to the foregoing recommendations, this committee makes the further recommendation that this Congress place itself upon record as favoring a dual classification of corporation based upon the man- ner of the original issuance of stock, in accordance with a suggestion re- AMERICAN MINING CONGRESS 93 cently outlined before the Illinois State Bar Association at Galesburg, Illinois. The idea, while not altogether a new one, was brilliantly set forth and advocated by Mr. Edward M. Shepard of New York City, and it calls for the organization of corporations without any fixed par value of shares in simple terms for the elimination of the dollar sign from stock certificates. Inasmuch as the function of legal par value is to determine the liability of the stockholder, and this function has been practically abolished by the system of issuing full-paid stock for property, its function of determining the liabability of the stockholder can much better be ful- filled by requiring adequate and honest certifications to. the state of the assets upon which corporation shares are uttered. This committee is of the opinion and so recommends, that this Con- gress should approve the organization of corporations either with or without a legal par value for their shares, provided that those which are organized with a legal par value be required to issue these shares for cash or an actual cash equivalent; and provided also that those corpora- tions which attach no par value to their shares shall be required to cer- tify,* in extenso, to the location, nature and status of all assets for which such shares are paid. It will be apparent that this dual classification of corporations can be appropriately attached to the TYPE of publicity measure already set forth, but the enactment of this idea must, of course, go to the very roots of our corporation laws, and the committee recom- mends the idea rather for future enactment. While this committee is of the opinion that the corporation laws of our states and territories, in- so far as they should be devoted to the protection of general stock buy- ers are often wrong and in general far from adequate, it does not now feel warranted in recommending more than the continued agitation for a fundamental revision thereof, in the light of the needs of stock investors. The work which should be done in this direction is gigantic in its pro- portions, and the education of public opinion may, in some respects, be necessary. SECOND. As a means of instructing and protecting the widely distributed mining stock buyers of the United States, this committee recommends that the American Mining Congress, under the direction of its Secretary, shall pursue a permanent campaign of education through the city and country press, insofar as the financial resources of the Congress will per- mit; it being the design of this recommendation to present to such pur- chasers of stocks a clearer knowledge of mining as a business, its risks, needs and responsibilities, together with suggestions as to how they may defend themselves against false representations by detecting the ear- marks of fraud. As a suggestion appropriate to this purpose, the committee recom- mends that the following notice be sent to the city and country news- papers of the United States with the request that it be published as coming from this committee of the American Mining Congress. Authoritative Advice to Mining Investors. The American Mining Congress, numbering among its members thousands of the representative mining men of the West, at its Denver meeting in 1906 and its meeting at Joplin, Missouri, in November, com- mitted itself to a policy of suppressing fraudulent mining promotions. In pursuance of that policy it appointed a Fraud Investigating Com- mittee, which has issued to the press of the county the following infor- mation, intended as a safeguard to the mining investor: In the interests of those who wish to invest, not speculate, in mining stocks, the committee urges that each prospective investor arm himself with information in answer to the questions below. Let there be no evasion of the promoter, accept from him no glitter- ing generalities, but insist on clear, concise, accurate information. The honest promoter, who has a business-like proposition to present to busi- 94 OFFICIAL PROCEEDINGS ness men is afraid of shocking their intelligence by explaining the business chances which his enterprise entails. The "Separator Promoter," however, that is, one whose chief in- terest is in dishonestly separating cash from the investor, rather than in separating metal from the ground is either afraid to reveal the thousand to one chances against his gamble, or reluctant to disclose his method of pocketing the lion's share in case of success. Presuming that the prospective investor is anxious to acquire definite information regarding a mining company and its property, the com- mittee urges that, as a preliminary step, he secure precise statements from the promoter in answer to the following questions. Inasmuch as the misuse of the mails is a felony, be sure to preserve all replies, together with the stamped envelopes containing them: 1. Company organization, when and where incorporated? 2. Capital stock, how issued and apportioned? 3. What steps have been, or will be, taken to raise funds for the development or equipment of the property? 4. Is any of the stock pooled? 5. How was the property acquired by this company? 6. Are there any debts against the company? 7. Are there any incumbrances against the property? 8. Location of the property and total acreage? Nature of titles? 9. Nature and extent of developments and equipment, and how much has been expended in this work? 10. How much treasury stock has been sold and at what price? 11. How much cash is in the treasury? 12. Has the property ever produced, and if so, how much has it produced under the present ownership? 13. Has the property ever been examined by a competent and honest mining engineer? Give his name and address, and send copy of his report. 14. Is the property working at the present time? If so, how many men does it employ, exclusive of stock solicitors? 15. Has a comprehensive financial report of the operations to date been issued? If so, send a copy. If not, count the writer out. These questions are modeled after a few of the most important con- tained in a blank form issued by the American Mining Congress, James F. Callbreath, Secretary, Denver, Colorado. This blank will be mailed to any address upon application. It will be noted that question No. 13 calls for the name and address of the engineer who has examined and reported upon the prop- erty in question. To those innocent of the fact that scores of parasites upon the legitimate mining industry masquerade under the title of Pro- fessor or Doctor, or have appropriated the degrees of E. M. or M'. E., a word of advice may ot come amiss. Investigate the standing of this engineer, by writing some one in a position to know, and whose integrity is beyond question. If you are not a good judge of these things, exhibit his report to some one who is. Below is given a list of the various state officials whose duties concern the mining industry: Arizona William P. Blake, State Geologist, Tucson. California Lewis E. Aubrey, State Mineralogist, San Francisco. Colorado T. J. Dalzell, Commissioner of Mines, Denver. Idaho Robert N. Bell, State Inspector of Mines, Boise. Kansas Erasmus Haworth, State Geologist, Lawrence. Michigan Alfred C. Lane, State Geologist, Lansing. North Carolina Jos. Hyde Pratt, State Geologist, Chapel Hill. Missouri E. R. Buckley, State Geologist, Rolla. South Dakota E. C. Perisho, State Geologist, Vermillion. Washington Henry Landes, State Geologist, Seattle. Wisconsin E. A. Birge, State Geologist, Madison. Wyoming H. C. Beeler, State Geologist, Cheyenne, AMERICAN MINING CONGRESS 95 In some of these state offices the regulations require the receipt of one dolar, acompanying all inquiries, to guarantee answer. In all of them such a small fee is only a proper recompense for a conscientious reply on inquiries. A quick method of getting in touch with a reputable engineer, famil- iar with the region in which the mining property is located, is that of corresponding direct with the editors of the reputable technical mining press. Avoid what are known as promotion organs. These suggestions to the public are made by a special committee of the American Mining Congress, composed of Hon. Albert Mclntyre, Everett, Washington, former governor of Colorado; Hon. Henry C. Beeler, state geologist, Cheyenne, Wyoming; Judge William F. Clark, Glover, Vermont; R. L. Herrick, associate editor of Mines and Minerals, Scran- ton, Pennsylvania, and Charles J. Downey, managing editor of The Daily Mining Record, Denver, Colorado. THIRD. The purpose of what is known as the cumulative voting privilege in the selection of corporation directors is to enable minority stockholder to procure representation in boards of directors. Instead of casting one vote per share for each of a given number of directors, 'such a law will permit any stockholder to cumulate his vote; that is, by casting all his votes for a single director, or for any limited number which he desires. This committee, therefore, recommends that a measure be framed, after the models already existing, carrying out the idea of the cumulative vot- ing privilege, and that the same be presented to the legislatures of the states not already possessing such a law. FOURTH. This committee recommends the adoption of the following self-ex- planatory set of resolutions: In view of the frequent complaint that is heard against the business methods of mining corporations and their attitude toward the remote purchasers of their shares in the interest of development, and being con- vinced from investigation that many evils arise from the practice of in- corporating mining companies under the laws of one state or territory for the purpose of doing a mining business in another state or territory, as well as from the frequent failure of such corporations to properly comply with the corporation laws of the states or territories wherein their principal business is carried on; therefore, Be it resolved, By the tenth annual session of the American Mining Congress, assembled at Joplin, Missouri, that the nature of such evils and the efforts which the Congress has put forth to suggest remedies therefor, fully justify it in respectfully expressing itself upon this point to the secretaries of state and attorneys general of all the states of tne United States where mining is done, and especially where public mining corporations the more frequently operate; and, Be it further resolved, That, without any specific instance in mind and wholly to the general advantage of the mining industry and those who trust their money in the development and equipment of mining enter- prises, legitimate or spurious, the American Mining Congress shall urge upon the state and territorial officers herein mentioned the vital im- portance of enforcing the local laws governing foreign corporations, to the end that no mining company, by any method of organization, may evade or continue to evade its just duties toward the purchasers of such cor- poration shares; and, Be it finally resolved, That the Secretary of the American Mining Congress be hereby instructed to send a copy of these resolutions to the Secretary of State and the Attorney General of every state or territory where, according to his knowledge, the purposes of these resolutions apply, together with any suitable letter of explanation which he may see fit to draw. 96 OFFICIAL PROCEEDINGS FIFTH. This committee recommends that a standing committee of five be established by the American Mining Congress, called the Committee on Investment Legislation, the purposes of which shall be to initiate or con- sider suggestions for improvements in the corporation laws of the various states with respect to their bearing upon the needs and privileges of stock investors; the majority of the members thereof to be practicing attorneys and the tenure of service upon this committee to run from one annual session of this Congress to the next succeeding session, the Pres- ident of the Congress being authorized to appoint the members thereof annually. Nothing in this recommendation shall be construed to mean that a committeeman may not succeed himself. This committee shall be empowered to consider and report upon matters initiated by itself or proposed at any session of this Congress, as well as to take in hand any incompleted business of the present committee. Respectfully submitted by the committee: A. W. McINTIRE, R. L. HERRICK, WILLIAM F. CLARK, HENRY C. BEELER, CHARLES J. DOWNEY, Chairman. THURSDAY, NOVEMBER 14, 1907. Evening Session. PRESIDENT RICHARDS : The Congress will be in order. We will now listen to an address entitled "The Relations of the United States Geological Survey to the Mining Industry," by Dr. George Otis Smith of Washington, D. C., Director of the United States Geological Survey. Dr. Smith's paper will be found on page 138 of this report. COL. DORSE Y of Nebraska: I am directed by the Committee on Res- olutions to report back Resolution No. 6, introduced by Mr. Siclelle, and offer as a substitute therefor that which I will ask the Secretary to read. The Secretary then read the resolution as follows: Substitute for Resolution No. 6. (Introduced by Wm. T. Sidell of Oklahoma.) Whereas, There is expressed dissatisfaction among the oil producer." of Oklahoma respecting the conditions governing the development and operation of oil and gas lands in that state; and Whereas, It is recognized by the American Mining Congress that these unsatisfactory conditions arise from the peculiar relations existing under acts of Congress, whereby the Department of Interior is constituted as guardian for the Indian land owners; therefore, be it Resolved, That the Congress of the United States be urged to enact such legislation as will, so far as possible, correct the unsatisfactory con- ditions at present existing, and be to the mutual advantage of the Indian land owner and those who are desirous of developing the oil and gas re- sources of their lands. Moved and seconded that the substitute resolution be adopted in place of the one formerly offered. The motions being duly put was unani- mously carried. COL. DORSE Y of Nebraska: I am instructed to report back Reso- lutions No. 10, offered by Mr. Cantrell of Missouri, and offer this substi- tute therefor. The Secretary than read the resolution as follows: AMERICAN MINING CONGRESS 97 Substitute for Resolution No. 10. (Introduced by H. J. Cantwell of Missouri. Resolved that it is the sense of this Congress that it is unwise and in- expedient for any official of this Congress to make any report in his of- ficial capacity on any individual mine or other commercial enterprise whatever, and that the work of the Information Bureau of the Congress be hereafter confined to the circulation of the official printed documents of the Congress, which shall be sent out under such rules and regula- tions as may be presribed by the Board of Directors. It being moved and seconded that the substitute resolution be adopted and the resolution offered by Mr. Cantrell laid upon the table, the motion was put and unanimously carried. COL. DORSET of Nebraska: I report back Resolution No. 9, offered by Mr. Vincent of Missouri, This matter is covered largely by the report of the committee of which M'r. Downey is chairman and it is now under consideration by this Congress. PRESIDENT RICHARDS: That is the one which was to have been considered with the report? COL. DORSET: Yes. If this report is adopted by this Congress I will ask that the resolution offered by Mr. Vincent be tabled, for everything, in my judgment, that he seeks to enact or reccommend is covered by that re- port. Still, some gentlemen of the committee take a different view and think that this resolution of Mr. Vincent should be considered, so I ask now that the two be considered together, the resolution of Mr. Vincent and the report of the committee of five referred to, to investigate laws for the prevention of mining frauds. PRESIDENT RICHARDS: I believe it was understood that at the proper time the motion would be made to make these two resolutions a special order. They will remain in the Secretary's hands until that order is made. PRESIDENT RICHARDS: The next on the program is an address on the subject "The Importance of the Mining Industry to the Industrial and Commercial Life of the Nation," by H. J. Cantwell of St. Louis. Mr. Cantwell's address will be found on page 115 of this report. There being no further business the meeting adjourned until Friday morning at 9:30 o'clock. FRIDAY, NOVEMBER 15, 1907. Morning Session. PRESIDENT RICHARDS: The Congress will be in order. The Secretary was requested to read the paper entitled, "The Great Southwest," which paper is as follows: THE GREAT SOUTHWEST. Mr. President and Gentlemen of the American Mining Congress: With a profound appreciation of of the honor of appearing before this excellent body as duly accredited delegates thereof, and as representa- tives from Arizona and the Great Southwest, we extend to you the hand of royal fellowship from that magnificent field. We are incapable of underestimating the importance to ourselves, our country and to civiliza- tion which this splendid convention carries. In it we see the brain and brawn, the integrity, the industrial worth and the crystallized patriotism of the very best element from many nations the world over. As comrades we extend to you the right hand of the Great Southwest as together we take up the march in this grand crusade of industrial progress. In a spirit of what we consider legitimate pride, we lay the list of our resources before you, and ask recognition in the eyes of the mining world, in a measure commensurate with these resources, in a field of enterprise, which means, advantage for all. In this beneficent work, the advancement of one does not involve the downfall of another, and a mul- 98 OFFICIAL PROCEEDINGS titude of golden congratulations, fresh moulded in the heart, follow fast on the success of the lowliest and most obscure, as well as upon the achievements of the mightiest captains. In this convention, which can be said of no other, from The Hague down to the partisan primary, selfishness and personal advancement is entirely eliminated. No other but what the imp of intrigue, the Mephisto of revenge or the heartless demon of ambition enters its ranks, either bodily or in disguise, to corrupt its rectitude, steal away its sense of jus- tice or lead its high promoters in forbidden ways, but here, the noble im- pulse of mutual and honorable emulation, that splendid ambition to climb to triumph, not upon the ruins of other men's hopes, but by the ladder provided by generous Mother Nature, is in the saddle and calls for the best effort of the noblest sons of this and every other civilized nation on the globe. We feel that the earnest benediction of all mankind rests upon our deliberations, and may our course be crowned with such results as will vindicate the happiest predictions of our most enthusiastic well wishers. With every species of respect for every section of the august mining field, from Alaska to Patagonia, from Australia to Africa, from Europe to the antipodes, we are asking ourselves, if, after due investigation and re- flection, we may be pardoned by the rank and file of this splendid body for cherishing a PECULIAR pride in our beloved Arizona and the Great Southwest. We will not burden this august body by lengthy quotations of fig- ures and statistics, which, since they are public property, we have a right to assume have come under the observation of every delegate present. In the light of this statement we hope we may be pardoned for dealing in generalities and off-hand results. When we reflect that our older sisters, Colorado, California, Montana and Michigan employed a score of men in their copper fields, while among the sunny foot-hills of Arizona, a single miner chlorided in the superficial style for the red metal, with his Winchester at his elbow, in momentary expectation of ambuscade at the hands of the lurking Apa- che, when we reflect that one level was added to another, as the tardy railway grew closer and closer, and as capital angled cautiously for years about the golden prize, when we stop to consider that, despite all of these difficulties, and with one man at work to-day, where our older sisters have perhaps ten, with their unlimited capital and mighty machinery, California, Colorado and Michigan have successively yielded the palm to Arizona as a copper producer and Montana will also yield by the end of 1907 are we not compelled to attach most profound importance to these -significant FACTS ? Do not these eloquent truths speak volumes for the ore bodies in Arizona, their extent, their richness and the facilities which must sur- round the meagre mining operations in the territory? In the light .of these happy conditions, are we not compelled to ad- mit that Arizona is an industrial entity entitled to the highest recogni- tion and consideration at the hands of this splendid body of just and considerate men? Now this remarkable result has been brought about by the output of the copper mines of Arizona, conspicuously Bisbee, Jerome, Clifton, Mor- enci, Globe and many others surrounding Douglas. Thus Cochise county, Arizona, is the head and front of the mighty impulse, and extraordinary resources, which give Arizona first place as a copper producer in this country despite the disadvantages under which it has labored. Now, the city from which we have the honor of being accredited is in Cochise county, Arizona. It is the smelter center of the Southwest as well as for a field of custom operations of vast extent. The field tribu- tary to it in the Territory of Arizona, great as it is, is Jiardly more im- portant than that whose wealth flows through it from the wonderful min- ing area of Sonora, Mexico. Space forbids, and precludes the possibility of granting the wonderful mining field of Sonora just mentioned in this connection. It's incomprehensible to one who has never visited that ex- AMERICAN MINING CONGRESS 99 traordinary mining belt in person. The open record of La Cananea and the Moctezuma districts, alone with a thousand smaller propositions, which have produced millions by inefficient, if not primitive methods, would fill a volume of large proportions. This virgin field, which, as yet, has barely been touched, as railroads penetrate the mountains year by year, is unfolding in point of mineral resources in a manner that challenges the astonishment of the mining world. Then the multitude of undeveloped propositions, with exceptionally fine surface showings, constitutes the principal attraction of capitalist from all over the world, and the recent avalanche of capital and enter- prise, moving in that direction, has taken form in a manner to command the attention of the profession universally, before our next Congress shall have been called to order. The Delegates from Douglas, Arizona, submit this manuscript with a request that the same be filed with and made a part of the records of the American Mining Congress, here assembled. S. S. BADGER, Secretary. COL. DORSET of Nebraska: I am requested to report back Resolu- tion No. 8 and have substituted therefor the resolution which the Secre- tary will read. The Secretary then read the following resolution: Substitute for Resolution No. 8. (By John Dern of Utah.) Whereas, the University of Utah, through a resolution, (No. 8), in- troduced by Mr. John Dern, has tendered to this Congress the privilege of using the mining and metallurgical laboratories it its school of mines, agreeing to make no charges therefor except to cover actual expenditures in conducting tests; and Whereas, It is recited in said resolution that the laboratories at said school of mines are amply equipped for necessary and practical tests in connection with concentrating, leaching, furnace work, and other methods, of treating ores; and Whereas, It appears that the judicious use of laboratories, so located in the heart of the mining regions, will materially advance the mining industry and the purposes of this congress; therefore be it Resolved, That this Congress looks with favor upon aid and co-opera- tion so proffered; and be it further Resolved, That the thanks of this Congress are hereby tendered to the University of Utah for its generous offer, and that the matter of ac- cepting said offer, and of designating said laboratories as an official ex- periment station of this Congress, is hereby referred to the Directors for such action as in their judgment will be for the best interests of the Congress. COL. DORS*EY of Nebraska: I move the adoption of the Resolution just read. JOHN R. WOOD of Colorado: This Resolution comes to us this morn- ing somewhat in the nature of a surprise. If this was a church social where prize grab-bags were in order it would be very interesting because then we would pay our money and take our fortune, but this Resolution has been already brought before the subcommittee on Resolutions and it has been known -that it was there presented. The Colorado delegation of this Congress had met in caucus upon this resolution and unanimously, in a friendly spirit, and with the very highest desire for co-operation with all the mining interests and delegates represented in this Convention, agreed it to be unwise that this Resolution be passed for reasons that I will give you in connection with others in all probability in a mo- ment, and so they unanimously drew up a set of Resolutions addressed to the Committee upon Resolutions and the subcommittee, in regard to this 100 OFFICIAL PROCEEDINGS Resolution from Utah, asking that this Resolution be not reported. We met with the sub-committee in connection with the representatives from the state of Utah, and were very generously heard, and then were told that the sub-committee upon Resolutions had declined this Resolution, and we supposed that the battle was over. Now to come here this morning and find that the whole matter has once more been brought upon the floor is a surprise to us. Not that we are unwilling to bring this matter to the Convention, but we did feel that the place to have settled it was be- fore the Committee. We are glad we were here in time and knew that this procedure was taken. I don't know just what authority the consti- tution and by-laws give the directors in this matter, but I suppose if this Convention sees fit to hand over this deliberative function to the executive department of this Congress and allow it to act for them, that then the Board of Directors would have that authority and the question then is the advisability of having this resolution carried out. It is an affirmative proposition for the Board of Directers. Just a word now in regard to why we think this Resolu- tion or the statement of facts in this Resolution should not be approved. In the first place we believe that it is not advisable for this Congress to name any specific school of mining as its representative for any division of mining country. To say that the laboratory of the Utah school or the Colorado school that the Missouri school, or the Kan- sas school or the Oklahoma school or any other of these schools should be the official representative of this Congress seems to us would be a great mistake. Just what it would be if we were to designate one particular engineer as the official engineer of this Mining Congress. As our friends and they are our friends, we love our friends, we are one with them, we would not do anything in this world to lay a straw in the way of the devel- opment of their interests, but they themselves have said before the sub- committe that this action would give their school prestige. Can you or I afford to select in invidious distinction any one of our splendid mining schools of which we are so justly proud can we afford, gentlemen, under any circumstances, by our action, to specifically say that this one shall have prestige over the ether one? Itake it that we cannot. That that would be an invidious distinction. COL. DORSET of Nebraska: Yield to me a moment so that I may read this resolution. I am sure you do not understand it. JOHN R. WOOD of Colorado: If I am out of order I should be glad to hear it. COL. DORSET: (Reads Resolution.) Now you have got it before you. I do not see how you can charge bad faith on our part. JOHN R. WOOD of Colorado: Thank you. Mr. Chairman, Gentlemen of this Congress: I had not thought for an instant be it far from me, to attack the committee for bad faith. I beg your pardon, sir, if there is any- thing in the thought that has come to you. I never dreamed that the committee was acting in bad faith. And furthermore, it seems to me that this resolution that is brought before us this morning is simply -going home around Robin Hood's barn. It is another way of getting to Carthage than going by way of Webb City. In regard to the equipment of the Colorado School of Mines, I will pass that up to men more competent to speak of that. I do not know how many schools of mines there are, possibly you know. COL. DORSET: Five. MR. JOSEPH of Utah: One only one. MR. WOOD of Colorado: Possibly five. Our brother here says only one. Do I need to say any more? The delegate from Utah has boasted, there is but one school of mines. Gentlemen, when you and I are in Con- gress assembled, it seems to me the time has come to sink our individual interests in the interest of the entire mining region of this great United States of our. (Applause.) Instead of boasting of one school, let us boast of five. Therefore, I ask you that you will under no circumstances what- AMERICAN MINING CONGRESS 101 ever pass up your privilege of deciding these questions by even our Board of Directors, but settle it on the floor of this Congress this morn- ing. M'R. JOHN BERN of Utah: Mr. President, Delegates and Members of the Convention: I am not going to enlarge on this subject very ex- tensively but I think it my duty as the originator of the Resolution to givo you the plain facts and the purposes for which this Resolution of mine was introduced. Indeed, I am very much surprised at the attitude of the gentleman from Colorado. He cannot confine himself to the facts, but is simply trying to attack and misconstrue our Resolution to be one for the advancement of the school of Utah. This Congress was organized for the purpose of accomplishing things. When our advance sheets were sent out by the Executive Committee, or the Committee on Program, this fall, which only reached the members and delegates a few weeks ago, one of the items specified was the purpose of this Congress to establish experi- mental stations in the West where ores could be tested and by which the poor prospector would be able to have his ores tested without going to the expense of having these ores tested by an expert elsewhere. Being a bright young man myself, and closely connected with the Congress, I thought we might have an opportunity here to do something for the bene- fit of the Congress and for the mining industry. Realizing that three years have elapsed since we voted the establishment of a permanent home at Denver in which home it is intended to establish not only laboratories, but other information on geology and mining, equip it with the most mod- ern and up-to-date testing plant to test ores of the miners for all those who desire them to be tested. I figured that so little progress had been made it would probably be years before such equipment should be es- tablished or the building erected. I thought after talking wjth the professors of our university and with a number of our members, it might be a good thing to have the University of Utah offer the service of our State School of Mines. Other schools have the same opportunity to offer their services to advance the cause of the mining interests of the country. This offer was made in the best of faith and I believe it is a step in the right direction. I trust you will vote in support of the Resolution as it is in- troduced, as it is plainly stated in there that it is proposed to make the Utah school AN experimental station, not THE experimental station. DR. V. C. ALDERSON of Colorado: In speaking on this matter I should like to refer to what Mr. Dern has said because it applies to every school of the United States, that it is located in a mining locality. How- ever, I thing the gist of this question is just here: Is it within the province of the American Congress to have any official School of Mines, any offi- cial testing plant, any official jig, any official concentrating table. If this resolution passes gentlemen, it will open the door for people to come in here and ask for the official recognition of everything that is used in mines and you, gentlemen, will have to approve or disapprove of it. I don't want to get into an argument with regard to the relative advantages of the different schools. If necessary, I could give many reasons why the Colorado School of Mines should be recognized officially. But I would not ask that my school be designated or our testing plant designated as the official testing plant for the American Mining Congress because in the bottom of my heart I belive it would be a bad thing for the American Mining Congress. As our President has said so well from this platform, the idea with us should be co-operation. I tell you, gentlemen, it is a dangerous thing to begin on. I think the thanks of this Congress ought to be extended to the Utah School of Mines and to the Utah delegation for their sincerity and their kindness in making this offer, but I believe it would be utterly dangerous to accept it because it would open the door for many other and greater errors that might be performed by this Con- gress. I tell you, gentlemen, this Congress cannot afford to give its of- ficial sanction to any such plan. It will come back to us in years to come and we will regret it. The 'American Mining Congress must be too big for that. I think the Utah school can do its work in helping miners just as well without our official recognition as with it. We in Colorado will do 102 OFFICIAL, PROCEEDINGS our work along that line in the same old regulation way. We should not pass this resolution because, for the one reason, if no other, it is outside of the province of this Congress to put this official stamp on any such thing. I therefore move you, Mr. President, that as an addition to this or as a substitute for the Resolution, that it is the sense of this Congress that the thanks of the Congress be tendered to the Utah delegation for calling our attention to this matter and for their courtesy and kindly suggesion, but that it is beyond the province of this Congress to accept it. PRESIDENT RICHARDS : It has been moved and seconded that it is the sense of this Congress that the thanks of the Congress be tendered the Utah delegation for calling our attention to this matter, but it is the sense of this Congress that we are not authorized to endorse the propo- sition. COL. DORSET of Nebraska: This proposition does not designate the Utah school. The resolution refers the entire matter to the Board of .Directors. If you do not have any confidence in your Board of Directors, then vote for the motion made by my friend from Colorado. DR. ALDERSON of Colorado: Don't put it that way, because we have have the utmost confidence in the Board of Directors. COL. DORSET of Nebraska: Let me read it. I repeat what I said, if you vote down this resolution and sustain Dr. Alderson's motion, you display a lack of confidence in your Board of Directors. Under this Reso- lution the entire matter goes to your Board of Directors for action. MR. JOSEPH of Utah: Mr. Chairman, Ladies and Gentlemen: Utah came here in all sincerity and made this proffer. The proffer in the origi- nal manner in which it was presented was turned down by the sub- com- mittee of the Committee on Resolutions. It was then referred back to the Committee on Resolutions and the report of the sub-committee was adopted, and they offered a substitute to the effect that Utah should be thanked by this Congress for the kindly proffer, but they did not think it expedient to take up any school as the official experimental station of the Congress. This morning I went before the Committee on Resolutions, of which I have the honor to be a member, and offered this Resolution as it was here presented by the Chairman of the Committee on Resolutions. Not one voice of protest was raised against the unanimous adoption of that Resolution at that time. The man who made the motion to adopt the Reso- lution was a delegate from Colorado. I appeal to the gentleman from Colorado. MR. WOOD of Colorado: I rise to a point of information. If the Colorado representative on the committee moved the adoption of the Resolution, we knew nothing about it and had no hearing. MR. MILLS of Colorado: The Colorado delegation had a meeting last night and at that meeting, I as a member from Colorado, explained to them what the sub-committee had passed upon and the substitute which they proposed to offer to the committee this morning . That was entirely satisfactory to the Colorado delegation. This morning the general Com- mittee on Resolutions accepted and ordered reported the Resolution sug- gested by the sub-committee. This morning a motion to re-consider was made and M'r. Joseph at that time offered as a substitute this Resolution which we have here this morning. As the Resolution or substitute offered by Mr. Joseph did not designate any school as the official experimental station, but left it open for the Board of Directors to act upon the applica- tion of any school to be so named, I did not consider that the Colorado dele- gation would object at all. In fact, I had no opportunity to consult with the Colorado delegation and ascertain their views and I acted simply on my own initiative and am perfectly willing to stand by that. MR. JOSEPH of Utah: In justice to Mr. Mills, I want to state that I substantiate the statement he has made, but there was no intention on the part of the Utah delegation to take any snap judgment. I have seen these fights between schools and I know what they mean*, but this is not the place nor the time for the Colorado School of Mines or the Utah School of Mines to fight or to bring before the Congress their respective AMERICAN MINING CONGRESS 103 merits. We are here for the general good of the people of all the people. This is an American institution, not a local institution. Now Mr. Chairman, in order to show Colorado that we are sincere and we de- sire to extend the olive branch of peace, because peace is what we want, and we are going to have peace if we have to fight for it, I desire to offer this as an amendment. As I understand there is a motion, Mr. Chairman, and I offer as an amendment to the motion that the last clause of the reso- lution be made to read as follows: "Be it further resolved ttiat the thanks of this Congress are hereby tendered to the University of Utah for its generous offer and that the matter of accepting said offers and any other offers which may be made to this Congress and of designating said labora- tories or any other laboratories which may be offered as official experi- mental stations of this Congress is hereby referred to the Board of Di- rectors for such action as in their judgment will be for the best interests of this Congress." MR. HOWELL of Colorado: When reference was first made to this matter this morning it was stated that the whole matter was settled. We were so informed. It is unquestionably true that Utah is represented here by one of the most active delegations that ever represented any common- wealth in any convention. It is true and it was admitted by the chair- man of their delegation that they wanted the matter referred to the Board of Directors without giving anybody a chance to act upon it. We don't want to wash any dirty linen and yet I say our position is not that we want you to endorse the Golden School of Mines or any other. We take the position that it is not for the benefit of this Congress that we should endorse any specific school. Now, gentlemen, I want to say to you, we have a right to contest this matter. It was introduced by one of our directors. He says so himself. It is being advocated by another one of our directors. He says himself he wants to see this resolution passed. I say it should not be left to the Board of Directors. You charge us with insincerity. Your own argument has given us the right to charge it for trying to shove something down us. The proposition is one that we should not handle at all we should either endorse it or let it alone. Let us not put the responsibility on some one else. We don't want you to endorse the School at Golden as Golden can stand on her own merits and .so can any other mining school. I say the whole matter ought to be settled here and now, and we ought to decide to either endorse this school or we ought to take it entirely out of the hands of the directors. GEO. H. BRIMHALL of Utah: Mr. President, Ladies and Gentlemen: It appears to me that there is nothing novel in accepting the offer made by. Utah, at least to the extent of turning it over to the Board of Direc- tors as to the wisdom of acceptance or rejection. MR. CANTWELL of Missouri: In the Kilkenny-cat fight between Colorado and Utah it is perhaps unwise for any member of the Missouri delegation to inject himself, because he is liable to get scratched. There is a distinction, however, between the endorsement of an educational in- stitution or a state official school of mines and the endorsement of a man's mining scheme or any man's concentrator. There is no parallel between the two propositions. There is no more impropriety in this Congress or its Board of Directors endorsing the state school of mines officially or accepting the offer of a state school of mines to treat ores at cost, than there would be In a Farmers' Institute endorsing state agricultural schools. Therefore, that objection to this endorsement is certainly not well taken. The objection that thereby one school of mines may be given added prestige is perhaps well taken, but Utah, it appears, is the only school of mines that has yet made this generous offer. I only call attention to these two points. So far as Colorado is concerned, if the gentlemen would -ac- cept the suggestion, add to the original resolution that whenever Colorado should duplicate the generous offer of Utah, then the directors might and should so order to make an endorsement of the State School of Mines of Colorado as one of the official experimental stations. 104 OFFICIAL PROCEEDINGS MR. HOWELL of Colorado: Will the gentleman kindly refrain from the position that we are opposing Utah. We do not ask it for Colorado. We are hot in that position at all. We are not proposing that the Congress endorse Colorado or any other school. We do not want endorsement for Colorado. MR. CANTWELL of Missouri: The reason why the question of the en- dorsement of Utah's offer alone is not properly before this Congress is because it is the only offer and because the Congress will not remain in continuous session. Yet I take it, whenever a similar public institution makes a similar offer, then the Board of Directors can act upon that also. MR. RITER of Utah: I want to say a word, not from the standpoint of a member of the Utah delegation, but from the standpoint of a mining engineer, who has business which takes him out of the state of Utah. I have often been placed in a position where the opportunity to use some of the laboratories of our state would be a great boon. I have inter- ests in another state which has no school of mines and where no private individual has established laboratories such as it is proposed to give us the use of by the offer of the Utah School of Mines. I should have some hesi- tancy in sending my ores from outside the state into the laboratories of the School of Mines of Utah. However, if the resolution passed, and in this way the American Mining Congress endorsed this school, it would put me in a different position. I feel that the Congress should take such action. COL. DORSEY of Nebraska: I ask the chair to state what is the mo- tion now pending. PRESIDENT RICHARDS: The first question is as to the amendment. All in favor of the amendment signify the same by saying "aye." Con- trary by the same sign. The chair is in doubt. All in favor of the amendment will signify the same by standing un- til counted by the Secretary. A rising vote was taken and the Secretary announced forty-four votes in favor -and sixty-three against. . MR. JOSEPH of Utah: M'r. Chairman, we are entitled to a roll call on this point. PRESIDENT RICHARDS: Mr. Joseph under the rules is entitled to a roll call. MR.' HOWELL of Colorado: I move that the entire matter be laid upon the table. PRESIDENT RICHARDS: The question now arises on the motion to lay this whole matter on the table. All in favor of the motion say "aye." Those opposed signify the same by saying "no." The ayes seem to have it. The matter is therefore laid on the table. COL. DORSEY of Nebraska: I report back Resolution No. 14, which I ask the Secretary to read. The Secretary then read the resolution as follows: Resolution No. 14. (Introduced by James F. Callbreath, Jr., of Colorado.) Whereas, The laws and regulations governing and controlling mining operations in the territory of Alaska, being largely designed for the regu- lation of mining under conditions substantially different from those ex- isting in that territory, and Whereas, The American Mining Congress has been frequently called upon by those interested in the Alaskan mining operations, for assistance in the creation of remedies for unnecessary burdens and restrictions now resting upon the development of the mining industry of that section, and Whereas, This organization has not been sufficiently well advised as to the conditions' there existing to render intelligent assistance in those matters which have been called to its attention; therefore, be it Resolved, That the President of this Congress be authorized to ap- point a committee of three members to investigate into the conditions existing in Alaska, and the laws and regulations controlling its mining operations; to render such assistance to the mining men of Alaska as may AMERICAN MINING CONGRESS 105 seem proper and advisable under the advice and control of the Board of Directors of the American Mining Congress, and to report at its Eleventh Annual Session such recommendations as may seem desirable. It was moved and seconded that the resolution be adopted. On being put was unanimously carried. COL. DORSE Y of Nebraska: I have another resolution I am directed to report Resolution No. 13, by J. H. Richards, I will ask the Secretary to read it. Secretary reads as follows: Resolution No. 13. (Introduced by J. H. Richards of Idaho.) The American Mining Congress in its Tenth Annual Session again commends the efforts of the President of the United States in behalf of a wise and just disposition of the remaining public lands in the interest of the actual settler and the bona fide miner. It also joins the President in asking the Federal Congress to pass such legislation relative to the coal and other fuel resources still owned by the government, as, while continuing this ownership by the government. (1) Will encourage their development by providing conditions favor- able for modern mining operations. (2) Will prevent all unnecessary waste of these resources. (3) Will make certain the use of these resources in the best inter- ests of the whole people of the West; and (4) Will separate the surface development of these coal and oil lands for agriculture, forests or grazing from the development of the un- derground or fuel resources. It was moved and seconded the resolution be adopted, which motion was unanimously adopted. PRESIDENT RICHARDS : I have here an official telegram from tire Trans-Mississippi Congress, inviting this Congress to send delegates to its session to be held in Muskogee next week. We are anxious to have the Trans-Mississippi Congress adopt the resolution which you adopted yesterday. Mr. Bailey, just coming from there, will make a very brief statement, which I think you ought to hear before any action is taken on that matter. MR. BAILEY, OF OKLAHOMA: Mr. President, Gentlemen of the Congress: We do not only sent you this telegram officially from the Trans- Mississippi Congress, but we come here personally to invite you to attend that meeting and participate in the deliberations. Bring to Muskogee those questions which remain unsettled in your splendid meeting here. The new state of Oklahoma comes to you the fledgling in the sisterhood of the American commonwealths. The State of Oklahoma can entertain you practical hard-headed mining business men. The new state of Okla- homa has, I venture, the vastest fields of virgin untouched coal in the United States. We have the finest oil field of the United States the biggest production, I think that has ever been known in the country- gas in unlimited quantities. We have the same, perhaps not as large, a field as Joplin, Webb City and southwestern Missouri, but we have lead and zinc undeveloped. We are interested in establishing a Department or Bureau of Mines and Mining. (Applause.) We have this early, even before the first meeting of our Legislature, a plan on foot to establish a splendid School of Mines. At the next meeting of the American Mining Congress we will be here bidding with Utah for a spot-light position, and I warn you right now, we will get what Utah fell down on. (Ap- plause.) When you come to Muskogee you will see that on the register of delegates that have been sent to Secretary Francis there are 2,500 delegates. Gentlemen, if we have a 50 per cent, of that attendance we will have the most magnificent of all the Congresses for sixteen years. Ninety per cent, of its recommendations have ben adopted by the Na- tional Congress. There will be governors from every state west of the Mississippi river, Come, We will welcome you, give you the glad hand, 106 OFFICIAL PROCEEDINGS and entertain you right. To-morrow we will become a state and then we can entertain you. Come to Muskogee Tuesday. (Applause.) A motion was made to accept the invitation and that a committee be appointed to attend in accordance with the telegram. Which motion being duly seconded and put was unanimously carried. In accordance with resolution the following communication was sent: COL. DORSEY, OF NEBRASKA: The special order is the considera- tion of the report of the committee, made by Mr.. Downey as Chairman, in reference to the appointment of the committee of five for the purpose of devising methods of preventing fraudulent mining schemes. I will yield now to Major Vincent, as he has a resolution on the table of the Secretary on this same question. Joplin, Missouri, Nov. 15, 1907. To the Trans-Mississippi Commercial Congress, Muskogee, Oklahoma. Gentlemen: The American Mining Congress sends greetings to the Trans-Mississippi Commercial Congress, and begs to express the hope chat its great work will be fostered and augmented through its present session. Responding to your telegram, I beg to appoint as delegates the fol- lowing persons: Dr. J. A. Holmes, Mr. H. L. Scaife, Mr. F. A. Brown, Major F. C. Vincent, and Col. W. R. Calkins. This organization expresses its sincere appreciation of assistance rendered to it by the Trans-Mississippi Congress in its work looking to greater co-operation between the government and the mniing industry. I have requested Mr. Jas. F. Callbreath, Jr., to present to your session some matters which we deem of particular importance at this time and for which we ask your continued support and co-operation. Respectfully, THE AMERICAN MINING CONGRESS, By J. H. RICHARDS, President. MAJ. F. C. VINCENT, OF MISSOURI: Mr. President, M'embers and Delegates of the American Mining Congress: Ladies and Gentlemen: One of the resolutions presented to your Committee on Resolutions, the one referring to the prevention of fraudulent mining schemes, was presented before I was advised of the action taken at your last session, when a committee of five was appointed to devise means of putting an end to such illegitimate transactions. That committee has presented this printed report, which has been scattered broadcast amongst the members of this convention. The report shows a vast amount of indi- vidual work on the part of the committee on this particular proposition. While they were at work on behalf of this Congress, it is safe to say that in other states of this Union many other people were at work on identically this same proposition. Speaking for the legitimate mining men of Kansas City, I can say we also considered this proposition in all its phases. Almost every one of the recommendations made by the com- mittee of which Mr. Downey is Chairman was considered by us. After examining the laws of the various states we finally arrived at the conclusion that the entire matter could be accomplished by urging the attorneys general of the various states and the departments of justice of the United States to thoroughly enforce the laws now on their statute books. I say to you gentlemen that ninety per cent, of these swindling operations have been made possible by the non-enforcement of the law, and that if the laws had been properly applied if the attorneys general of the various states would enforce the law, these men could not have placed upon the name of mining the blot that now rests there. Inasmuch as this report recommends that a committee be appointed, the majority of whom shall be lawyers, who shall endeavor to frame and shall be in- strumental in placing on the statute books of the various states laws that will cover adequately the questions, off-hand, I am in favor of refer- AMERICAN MINING CONGRESS 107 ring this whole matter back to that committee and let them frame a law that will be absolutely feasible. 1 am not going to talk further on this resolution. I am going to make a motion that inasmuch as part of this resolution refers to the appointment of a committee composed mostly of attorneys, to frame a law or to have placed upon the statute books a law that will hold water and that will be the best possible proposition for this Congress, that this entire matter be referred to this committee and that no further action be taken on it by this Congress at this time. COL. DORSET, OF NEBRASKA: That is the report of the special committee of five that has not been before the Committee on Resolu- tions? MAJ. VINCENT: I understand that. PRESIDENT RICHARDS : You have heard the motion that the mat- ter be referred to the special committee of five, the majority of whom shall be lawyers,, who after further action shall report to the next session. What shall we do with the motion? Do I hear a second? MR. DOWNEY, OF COLORADO: If no one else wants to discuss this question I am willing they should do so, but if no one else intends to, I want to do so. PRESIDENT RICHARDS: Mr. Downey has the floor. MR. DOWNEY: In the first place, I don't understand the resolution that Mr. Vincent has himself introduced. As I understand it, that reso- lution was to be added on the report. MAJ. VINCENT: Mr. Downey, for your information and for the information of the Congress I will say that not knowing that a committee had been appointed to consider this question I had previously introduced a resolution somewhat similar. I am not going to urge the passage of that resolution, in deference to Mr. Downey's report, but I am willing to have that resolution and the report of the committee referred back to the committee of five. MR. DOWNEY: It will be clearly understood that the committee making this report proposed a standing committee on investment legisla- tion and that we have distinctly stated in here that that committee shall take charge of any uncompleted business which might pass over from the committee that is now retiring. There are certain portions of this report that it seems to me this Congress ought to pass on. The com- mittee that has been serving you during the past year has made this report unanimously. I have just this morning received a letter from Ex-Governor Mclntire of Colorado on this point. He has not been with us, but has kept in touch with this matter by correspondence. Now it seems to me that the feelings of the five members of this committee who have devoted a year to this matter should have a little consideration. We have talked this matter over and come to the conclusion that the whole trouble with this entire question is that the fakir does not have to put himself on record. This argument about retarding development I don't think holds water. You speak of the prospector as though he were constantly organizing corporations. That is not the case. It is only when the prospector, by the aid of some promoter in some city some- where, seeks to organize a corporation in such a way as to deceive those at a distance, that we demand of him that he place himself on record. That does not retard development in the slightest. If it retards develop- ment it had better do it. That is my position on the matter. If the prospector of the West has to unload his property on Eastern investors at a price far in excess of what it is worth and what he paid for it, then I say let him fail. That is the point. I don't believe there are many prospectors who are deceitful. This Congress certainly should place itself on record with respect to this matter. I want to say that the master-spirit in favor of publicity in cases of this kind is our President, Theodore Roosevelt, to whom we are now going for a Bureau of Mines and Mining, and if you want to please him on the side without any sentiment thrown 108 OFFICIAL PROCEEDINGS in, you might consider this would please him in that respect. This com- mittee's report states very distinctly that the legislation offered here is a type. I don't want to argue with the gentleman from Kansas City on the question of constitutionality of any measure I am not an attorney and don't profess to be, at the same time, if I wanted take the time and do so, I could show him, I believe, that there was two sides to the question. I have here one decision. I took a copy of it because it is typical of the position which the courts of the mining states seem to take on this subject of prospective value. This is a case before the Colorado Court of Appeals, afterwards decided by the Supreme Court: "In the case of corporations organized under the laws of this state for the development of mining property, the capitalization may be, and usually is, fixed with reference to 'prospective' value; that is, to value, which, in the judgment of the parties, the property actually has, but which development is necessary to disclose ; and if such value is esti- mated in good faith, we think the stock issued in consideration of a trans- fer of the property should be so regarded as full paid, notwithstanding the parties' judgment should afterwards prove to be erroneous." Buck v. Jones, 18 Colo. App. 250, 70 Pac. 951. Strange to say that decision was rendered in a case in which the very opposite result was arrived at so far as the decision was concerned. In other words, the case involved the transfer of property to a corpora- tion upon which mineral in place had not been discovered. I believe that is in some way the effect of your resolution. As that is contrary to the United States statutes, the court declared that such property was of no value because mineral in place was not discovered. Therefore the property was of no value and could not be given in exchange for stock of a corporation. This shows that the court of that state has given its sanction to the idea that full-paid stock may issue for property of value. In fact, that is being done every day in the year. It is the prevailing method of organ- izing such corporations, and as I said it was the object of this committee not particularly to sanction that thing, but to meet the situation as it stands and to sanction it with regulation. Regulation is what is de- manded. This committee has offered what it considers the best method for regulation: I don't think this Congress can afford to turn this question down. You can't afford to adjourn this convention without giving your specific approval of the principles stated in that report, namely, that those who offer their stock in that way, based on prospective values, with a view to deceiving the prospective investor and persuade him that he is getting something of greater value, should be compelled to put him- self on, record. I am perfectly willing you should refer this matter back to a com- mittee. There are no Legislatures meeting in the West this winter. Another session of the Congress will be held before any Lgislature in the West can meet. Therefore I have no objection that the special com- mittee that is provided for should take this matter under consideration and take any steps it sees fit, but I don't want the idea to go forth that this Congress is trying to side-track this proposition, and that is the intent, it seems to me, of the motion. That is the reason why I have taken the floor. COL. DORSET, OF NEBRASKA: Mr. President, this is a very im- portant question and there are some gentlemen here who wish to be heard on it, but there is a special order for the selection of the place of holding our next Congress. PRESIDENT RICHARDS: I would suggest that the special order be taken up at the beginning of the afternoon session without anything else intervening. That will enable us to clear up some of the smaller matters. MR. H. L. SCAIFE, OF SOUTH CAROLINA: There is a disposition on the part of people to make too many laws. If you examine this ques- tion you will find that we have a statute of the United States against the fraudulent use of the mails, but sometimes fraudulent promotions AMERICAN MINING CONGRESS 109 are made without using the mails, and some are unwise enough to do so, but I dare say there is not a state in the Union but has sufficient laws against frauds, getting money under false pretenses, to amply protect the investor if the law was enforced. Now, gentlemen, it would be a wise thing for us to frame a general law on this subject, but as I see it, we have not as yet sufficient information upon which to base such a law, so I think it would be wise for this Congress to appoint a committee, to get this additional information and report at the next meeting. MR. WIRE, OF ILLINOIS: The tendency of the times is toward publicity, toward the clearing away of the mists, to divest this business from the glittering generalities of the promoter or the stock seller, and to compel him to go on record and state what he has and to state it in black and white. So far as the publicity portion of this proposed measure is concerned it rather underreaches than overreaches. I believe we ought to go on record in favor of some publicity measure, or some statement of the Congress in favor of publicity. I am of the opinion that it would be a mistake for this Congress, with its intelligent membership and delegates, to fail to express itself in some way in favor of a publicity measure and along lines that make it easy for an honest man to do business, and almost impossible or really impossible for a fakir, or for a fake promoter, one who uses glittering generalities, to take advantage of the American people. The greatest enemy that the mining business has, the greatest enemy that the investor has, the greatest enemy that the prospector has, is the fake promoter. And I think this American Mining Congress ought to go on record in some way, either extending this committee or appointing a new one, or the same com- mittee (for they have done good work) for it is a step in the right direction. This committee has done good work and we appreciate it. It is the best measure we can get and they ought to be continued for another year. The records ought to show that the Congress is opposed to any- thing that makes fake or fraud promotion easy and in favor of everything that makes it hard or impossible. It ought to be made impossible. MR. CANTWELL, OF MISSOURI: It appears that this document submitted by the committee of five is divisible into two parts and it has never been read to the Congress. I take it from the discussion evidently very few of even those who are discussing it, have read it. This docu- ment contains B l / 2 pages which is simply the report of the committee. Then it contains a very short resolution, three or four questions in one column, which evidently contains nearly all the suggestions that have been made here, and I am going to take the liberty, if the Congress will permit me, to read that column. MR. VINCENT, OF MISSOURI: I would like to ask, just as soon as the discussion on the question of place for holding next session has been finished and the convention has disposed of that proposition, that a re-hearing of this motion be taken up. PRESIDENT RICHARDS: After the special order. If there is no objection, it will be so ordered. We will now adjourn until 1:30 o'clock this afternoon. FRIDAY, NOVEMBER, 15,. 1907. Afternoon Session. PRESIDENT RICHARDS: The Congress will come to order. COL. DORSET, OF NEBRASKA: Mr. President, your Committee on Resolutions refers back this resolution, which I ask the Secretary to read. Secretary read the resolution as follows: Substitute for Resolution No. 4, introduced by H. S. Joseph of Utah. To The American Mining Congress: Gentlemen: Your Committee on Resolutions, to which was referred resolution No. 4, introduced by H. S. Joseph, having had same under con- 110 OFFICIAL PROCEEDINGS sideration, do respectfully recommend that the subject matter of said resolution be referred to the Board of Directors and in the event of the failure of this winter's session of the National Congress to establish a Bureau of Mining, that the Board of Directors be and are hereby empowered and instructed to carry out the subject matter of said resolution. Upon motion duly seconded it was ordered that the recommendation of the Committee be adopted. PRESIDENT RICHARDS: We wil1 now P r <> c eed with the special order. Delegates and members will be given an opportunity to express their desires as to place of holding the session for 1908. The Secretary will call the roll of states alphabetically, and any state desiring to re- spond as the name is called will have the privilege of doing so. MR. JOSEPH, OF UTAH: Mr. President, we would like Arizona passed for the present. PRESIDENT RICHARDS: If there is no objection, it is so ordered. The Secretary then proceeded to call the roll of states. Edwin L. Bride, of Nevada, nominated Reno, Nevada. Frank E. Wire, of Illinois, nominated Chicago, Illinois. T. M. Howell, of Colorado, made a motion that the matter be left to the determination of the Board of Directors. Motion overruled for the time being. H. S. Joseph, of Utah, nominated Douglas, Arizona. MT. S. S. Badger, of Arizona, seconded the nomination of Douglas. Mr. John Y. Bassell, of Columbus, Ohio, nominated Columbus, Ohio. Mr. John J. Lentz, of Ohio, seconded the nomination of Columbus. Mr. Wire, of Illinois, then withdrew the nomination of Chicago in favor of Columbus. MR. HOWELL, OF COLORADO: Do I understand the chair ruled my motion out of order? PRESIDENT RICHARDS: I have not ruled at all. What is your motion ? MR. HOWELL, OF COLORADO: My motion was that the matter be referred to the Board of Directors. I renew that motion, that the whole matter be referred to the Board of Directors for consideration. A MEMBER: I second the motion. A MEMBER: I move to amend that motion by moving that we pro- ceed with a direct vote of the house. PRESIDENT RICHARDS : It has been moved and seconded that the motion made and stated a while ago and which was temporarily sus- pended, be amended, and that we now proceed to a direct vote upon the question as to the location of the next session of the Congress. M'R. JOSEPH, OF UTAH: I arise to a point of order. My point of order is that the amendment is not germane to the point in issue. MR. WIRE, OF ILLINOIS : I make a motion to lay the gentleman's motion on the table. PRESIDENT RICHARDS: The point of order is well taken. MR. WIRE, OF ILLINOIS: Did you make any ruling on my motion? I moved that the motion of the gentleman from Colorado be laid on the table. PRESIDENT RICHARDS: It has. been moved and seconded that the motion of the gentleman from Colorado be laid on the table. The ayes seem to have it. It is so ordered. SECRETARY CALLBREATH: We have a telegraphic communica- tion and two or three letters extending invitations. Inasmuch as the cities named by the letters have been placed in nomination, it may not be necessary to read them. But it would seem fair to hear the telegram from Los Angeles, which I will read: Los Angeles, Cal v Nov. 12-13. Jas. F. Callbreath, Jr., Secretary American Mining Congress, Joplin, Mo.: We extend greetings. Our representative bearing credentials relat- ing to 1908 convention is sick and can not attend. Los Angeles wants AMERICAN MINING CONGRESS 111 1908 convention and Chamber of Mines guarantees to take care of cus- tomary expenses in the event Congress convenes here in 1908. Have arranged special programme entertainment for a gala miners' week. Please notify us if Delegate C.- M. Shannon, A. D. Myers, L. V. Root or Wm. Gross present. Answer. Collect. LOS ANGELES CHAMBER OF MINES, Per G. W. ARNDT, Sec'y. MR. VINCENT: I recommend that the telegram be placed on file. PRESIDENT RICHARDS: If there is no objection, it is so ordered. How do you want to vote on this question? In the order of nom- ination? A M'EMBER: I move you that we proceed to vote on the question of place of holding next Congress by calling the names in the order of nomination. PRESIDENT RICHARDS: The question now arises on the invita- tion of Arizona. Those that are in favor of going to Arizona for 1908 may say aye, and those opposed say no. MR. JOSEPH, OF UTAH: Mr. Chairman, I think that we should not have a viva voce vote. I think we should have a standing vote. No man need be ashamed to show his colors. We are willing to stand on the record. PRESIDENT RICHARDS: If there is no objection we will call the vote by standing. We will vote until one point gets a majority, all candi- dates remaining in. It is a standing vote and the place that wins must have a majority of the votes cast. COL. DORSET, OF NEBRASKA: While the Secretary is preparing to call the roll, nlay I report some resolutions. My committee recom- mends a vote of thanks to Dr. Buckley for the services rendered in the preparation of our program, etc., which the Secretary will read: Resolved, That the success of the Tenth Annual Session of the Amer- ican Mining Congress has been achieved largely through the efforts of Dr. E. R. Buckley, the Chairman of the Programme Committee. Dr. Buckley has labored unceasingly for several months in preparing the splendid programme which has been presented to the Congress. The papers presented and the discussion thereof will be of the most lasting benefit to not only those in attendance at this session, but to all those interested in the upbuilding of the mining industry; therefore be it Resolved, That a vote of thanks be extended to Dr. E. R. Buckley, as an acknowledgment of the appreciation of the members and delegates of the Congress for the work he has so faithfully performed. A motion was made that the resolution be adopted, which being duly seconded and put, was unanimously carried. COL. DORSET, OF NEBRASKA: Your Committee on Resolutions recommends that a vote of thanks be extended to the Smelter Rates and Freight Bill Committees, which I will ask the Secretary to read. Secretary then read the resolution, as follows: Resolved, That a special vote of thanks be extended to the members of the "Smelter Methods" and "Fraud Bill" Committees. These com- mittees have spent not only their time, but their money, in obtaining information that will be of the greatest benefit to their fellows engaged in every branch of the mining industry; therefore be it Resolved, That the American Mining Congress hereby records its hearty appreciation of the work so wisely and generously performed by the members of the above named committees. It was moved and seconded that the resolution be adopted, which motion was duly put and unanimously carried. MR. JOSEPH, OF UTAH: I move you that each state be allowed to vote the full strength of its delegation present in Joplin. PRESIDENT RICHARDS: Is there any objection to that. If there is no objection it will be so ordered. COL. DORSET, OF NEBRASKA: I make this objection: I do not think it is fair. I think if the men who have been delegates and mem- 112 OFFICIAL PROCEEDINGS bers of this delegation have thought so little of this issue that they have absented themselves, they have no right to a voice in the determina- tion of that matter. It is for those who are here to determine the place of next meeeting, and as I am informed, -that has been your ruling and usage heretofore. MR. JOSEPH, OF UTAH: I desire to state that I know of twenty delegates who aie partaking of the hospitality of the people of Joplin: They ought not to be cut out. They are represented on the floor by other delegates. They should express their opinion. COL. DORSEY, OF NEBRASKA: Under our by-laws no man has a right to give his proxy to another in this Congress. MR. JOSEPH, OF UTAH: If that is so, I have nothing to say. I do know this was the order of business for ten o'clock this morning. These men were here then, but accepted the hospitality of some of the people of Joplin this afternoon, or they would be here to vote. PRESIDENT RICHARDS: It has always been the rule that only those present can vote here. If you wish to make an exception it is your privilege to do so. MR. HOWELL, OF COLORADO: A resolution was passed by our delegation unanimously that the membership present at this convention vote the absentees. That was our organization and I think there should be a ruling on it whether we are allowed to do it that way. MR. GALIGER, OF MONTANA: I don't see how you can get around your by-laws on this proposition. It states positively that no vote shall be cast by proxy and that no state shall be permitted to cas more votes than the number of members from each state which are present at the annual meeting. MR. JOSEPH, OF UTAH: The interpretation of that is those dele- gates who come to the annual session are allowed to vote. It does not refer to the sitting it refers to the convention present at the conven- tion. MR. GALIGER, OF MONTANA: Article IX, section 1, provides: "The directors shall be elected at the annual meeting of the mem- bers. In the election of the directors each state or territory shall be entitled to cast ten votes and one additional vote for each fifty members in good standing, residing within such state or territory; provided, how- ever, that no votes shall be cast by proxy and that no state shall be per- mitted to cast more votes than the number of members from such state present at such annual session." MR. JOSEPH, OF UTAH: That clause does not fit the case. This is the selection of the place for the next convention. That clause has ref- erence to the election of directors. MR. GALIGER, OF MONTANA: I take it that it refers to all elec- tions, as much so for the election of a point of meeting, because of the fact that there is no other clause in these by-laws to govern the election of officers. PRESIDENT RICHARDS: The by-law has no reference to this character of vote. It relates to an election of directors, but as I stated a while ago, the custom has been to only allow those to vote who are present, on questions of this character, but I stated to you that under that ruling, you would have a right to change it if you saw fit. I have no right to change it. A MEMBER: I move that this convention proceed to vote, allowing only those to vote who are actually present. Which motion being duly seconded, was put and carried. The Secretary then called the roll of places nominated, which re- sulted as follows: Douglas, Arizona, 29 votes. Los Angeles, California, no votes. Reno, Nevada, 6 votes. Columbus, Ohio. 63 votes. MR. JOSEPH, OF UTAH: On behalf of Douglas, I desire to with- draw Douglas, Arizona, and cast our vote with Columbus. AMERICAN MINING CONGRESS 113 COL. DORSET, OF NEBRASKA: I move that it is the sense of this Congress that Columbus, Ohio, be unanimously nominated as the place for the holding of the next session of this Congress. Which motion being duly seconded, was put and unanimously carried. MR. DOWNEY, OF COLORADO: I move that the report of the committee of five appointed for the purpose of devising methods of pre- venting fraudulent mining schemes be received and printed. That the recommendations of the committee be adopted, and that the resolutions under clause 4 be also adopted, and that a standing committee of five, as recommended by clause 5, be appointed. PRESIDENT RICHARDS: If there is no objection it will be so ordered. MAJ. VINCENT, OF MISSOURI: Mr. Dorsey and Gentlemen: The resolution I presented to the Resolutions Committee was reported back to the Resolution Committee and not acted upon. I wish to read the resolution before this body. It is short, and I believe inasmuch as we ought to put ourselves squarely before the world, I am going to ask that you pass my resolution, which is as follows: Whereas, The promiscuous exploitation of illegitimate and fraudulent mining schemes throughout the United States, Canada and Europe, espe- cially during the past year, by unscrupulous so-called promoters has resulted in the wholesale defrauding of the general public and especially the small "investor; and, Whereas, The above unlawful acts still obtained and continued un- abated; and, Whereas, No other condition has so tended to discredit the fair name of the American mining industry throughout the world; and, Whereas, The public press has been the chief instrument used by the said dishonest promoters in their predatory efforts; now, therefore, be it Resolved, By the American Mining Congress in annual convention assembled, that the attention of the Department of Justice of the United States and the various attorney generals of several states of the Union be favorably called to these flagrant violations of the laws of the states and the United States and that immediate action be taken under the law to prevent further swindling operations as herein outlined; that it is the sense of this body that such unlawful acts are in fact violations of the statutes to prevent "obtaining money by false pretense" and " "general swindling," and that the public press of the country are herewith earn- estly urged to assist this body by refusing further to lend its aid to this particular kind of wholesale and organized robbery. That those periodicals and newspapers who have aided this body in its efforts to right this condition be greatly commended, and that the members of this body and all other good citizens support these pub- lications in every way possible in the accomplishment of the aim set forth in this resolution. COL. DORSEY, OF NEBRASKA: This asks for the appointment of no committee? MAJ. VINCENT, OF MISSOURI: I simply ask for its adoption, so that it can be scattered broadcast through the country as the sentiment of this Congress. I move the adoption of the resolution. Which motion being duly seconded, was put and carried. MR. H. H. STOEK, OF PENNSYLVANIA: I beg to submit the fol- lowing report: Report of the committee appointed to investigate the advisability of a commission appointed from the several coal mining states and- the United States at large to investigate the conditions effecting safety in coal mining, with a view toward the formation and enforcement of ade : quate laws favoring this branch of the mining industry. Your committee reports that the Chairman and one member of the committee appointed at the last meeting of the Mining Congress, found it impossible to serve. It was therefore necessary to appoint other mem- bers and a new Chairman. This was not done, however, until shortly 114 OFFICIAL PROCEEDINGS before the meeting of the Congress, and it was therefore impossible for this new committee to assemble before coming to Joplin. Only two mem- bers of the committee are in attendance at the Congress, although two others fully expected to attend, but were detained at a late date. Your committee does not consider it feasible at present to have a commission appointed from the several coal mining states, and believes that such a commission should be national in character, and that such an investigation should preferably be carried on by a Federal Bureau of Mines, such as the Mining Congress is now working to have estab- lished. In view of the probability that such a Bureau will be established in the near future, your committee suggests that the same, or a similar, committee be appointed and authorized to consider this matter further and to gather statistics upon the subject, to be reported to the next meet- ing of the Mining Congress. (Signed) H. FOSTER BAIN, Chairman. H. H. STOEK, Secretary. COL. DORSET, OF NEBRASKA: Are the members of the committee able to give their services? MR. STOEK: The new members of the committee were only ap- pointed a short time ago and we had no meeting until we came to Joplin. Two members not here were unavoidably detained. SECRETARY CALLBREATH : The "members of this committee have all consented to serve. I move that the report of the committee be re- ceived, that the committee be continued for another year, and that the President be authorized to add to the committee two additional members. PRESIDENT RICHARDS: There being no objection it will be so ordered. SECRETARY CALLBREATH: I have a paper submitted by Dr. James Douglas, entitled "The remedy for the Law of the Apex," which I will read, in response to particular request that it shall be presented to the convention: Dr. Douglas' paper will .be found on page 122 of this report. COL. DORSEY, OF NEBRASKA: There is one thing I wish to speak of, and I hope the members will publish this. We have had quite a number of telegrams and letters asking the Congress of the United States to pass a bill not requiring the work of 1907 to be done on mineral loca- tions. That work in most instances has already been done up to this time, and it would be utterly impossible for such a bill to pass through the Congress of the United States during the month of December, as it is necessary it should be passed during that month to become operative, for the reason that if the work is not done by December 31st the claims are re-opened and open for re-location. We do not refuse to take up that matter and consider it, but it is absolutely useless to do so, for the reasons I have given. And so the Committee on Resolutions did not consider it. It was moved and seconded that a vote of thanks be tendered to President Richards for his able services in behalf of the American Mining Congress. A rising vote was called for, and the motion was carried unanimously. It was also moved and seconded that a vote of thanks be tendered to Secretary Callbreath for his able services. A rising vote was also called for, and the motion was carried unanimously. It was moved and seconded that a vote of thanks be tendered to the members of the Committee on Resolutions for their faithful and able services rendered by that committee. Which motion being duly put was unanimously carried. MR. DORSEY, OF NEBRASKA: I move that this Congress do now adjourn sine die. The motion being duly seconded, was put and unanimously carried, The Importance of the Mining Industry to the Commercial and Industrial Life of a Nation BY H. J. CANT WELL, ST. LOUIS, MISSOURI. It seems like painting the lily and gilding refined gold to attempt to demonstrate before an assembly of intelligent people in America the importance of the mining industry to the commercial and industrial life of a nation, for as we understand the words "industrial and commercial life," and the Word "nation," there could be neither without the min- ing industry. The history of civilization is the history of the progress of mining. When the first cave dweller ceased to tear the raw flesh from the bones of the animals which he had stran- gled with his hairy claws, or killed with his stone ax, he became a miner, and from that day until now, when so many of the forces of nature have been subjugated by man, there is not an hour of our existence on this planet when we should not be reminded of the contribution which the miner has made to the comfort of our existence. There is no modern industry which does not have as the base of its existence, the products taken from beneath the surface of the earth. Every art and every science owes its debt to the miner. Were it not for the mining industry, the art of naviga- tion would be confined to the paddling of the birch bark canoe, or the steering of the galley within sight of continen- tal shores, instead of the accurate direction, from continent to continent and from pole to pole, of floating cities of the seas like the Lusitania. The clumsy wooden cart, oxen- dragged through knee-deep mire, would be the means of land transportation instead of the locomotive whirling its train of palace cars or the automobile realizing the poetry of motion on the Champs Elysee or the Jasper county roads. The beacon fire upon the hill would be the means of com- municating intelligence instead of the telephone, the tele- graph and the wireless, which by their wonders give to mor- tals the qualities heretofore deemed possible to be possessed only by the immortals. Winged mercury! The dream of the poetic pagans, realized in common, prosaic, everyday life; for the individual vibrations of your thought, electric- winged, may now be felt to the remotest corner of the globe. Instead of the palaces of modei T n architecture in which the humlest member of society may dwell, man would 116 PROCEEDINGS AMERICAN MINING CONGRESS still be living in the wigwam of the Indian or the palm-leaf hut of the South Sea Islander. Instead of the electrict light, illuminating the darkness of the witching hour with the brilliant rays of mid-day, we should have the pine torch and the tallow dip. Agriculture would be confined to the wooden flail and a plow of forked stick instead of the four- furrowed cultivator, the thresher and the mower. The pic- ture of the art of milling would be of a haggard crone, grind- ing between two smooth stones the kernels of corn instead of a colossal giant with a thousand deft fingers the mod- ern mill. The countless instruments by which the masters of music render to human ears their divine symphonies would not be possible, and man's only attempt at harmony would be such as he could derive from the rude viol, the voudoo drum or the pith extracted pipe. None of the tri- umphs of modern surgery would be possible without the instruments made from the fruit of the toil of the miner. The art of the painter progressed no farther than the dye- ing of his own face, until the miner gave him the materials by which he might reproduce upon a canvas all the glowing colors of the rainbow. Commerce, other than the most primitive barter, would not be possible, for, imperfect as it may seem today, when the exchange of commodities of the world is made upon a basis of relative values, by bookkeeping, yet man has only reached this stage as an evolution from, by and with a me- tallic currency which has been produced by the miner. In fact, there is no art, however seemingly far it be re- moved from the toil and grime of the mine, but depends absolutely upon contributions gotten by the rugged delvers in the subterranean depths. A great philosopher has said that there is nothing more unreliable than statistics except the deductions often sought to be drawn from statistics. I shall not attempt to burden your minds with the exact figures of the values of the mining products of the world, and shall only deal in round millions in attempting to give a relative idea of the value of the mining products of the United States, as com- pared with other products of this most productive age. The production of coal in the United States for the last year was $567,000,000. That coal made possible all the man- ufactures of the United States. The production of iron, in ore and pig, amounted to $560,- 000,000, and from that iron was produced all the machines which went into every industry other than mining. IMPORTANCE OF THE MINERAL INDUSTRY 117 The production of zinc ore and metal amounted to $45,- 000,000, making possible all the electrical manufactures and supplying the inside paints of the world. The production of lead amounted to $39,000,000, mak- ing possible all of the underground cables, furnishing the outside paints in the United States and the conduits by which the modern systems of plumbing are possible, thus giving civilized man an abundance of pure water, one of the greatest gifts of God to man. In the ancient days, and even in the early history of our country, water, the finding of the well, was the first care of the settler. Tribes went to war to occupy particular locations in the neighborhood of this necessary of daily life, and yet, by the production of lead, and in the uses of it for carrying and distribution water, the beggar upon the streets is a greater master of this gift than the former monarch upon the throne. The production of copper in the United States amounted to $180,000,000, the greater part of which is con- sumed in electrical devices for the transmission of power, light, and heat. The production of gold in the United. States amounted to $96,000,000, furnishing the basis of value of debts at least, and preventing the enslavement of a generation of debtors to the foreign creditor. The production of silver in the United States amounted to $37,000,000. The production of petroleum amounted to $80,000,000, the use of which has multiplied the capacity of man in every field. The production of phosphate rock, the use of which has revolutionized a'griculture, amounted to $12,000,000. The production of salt, that necessary of man and tyeast, amounted to $6,600,000. The total production . including secondary minerals and chemicals, amounted to a magnificent total of $1,868,- 000,000, excluding all excavation of brick, fire-clay, tiling rnd all quarry products. This production being twice as much as in 1900. Think of it! These statistics show a production from beneath the surface of one billion eight hundred and sixty- eight millions of dollars. One's brain reels from a glimpse of the immensity. It is barely possible that in the table of these statistics there has been some duplication, as when the value of white lead is included as well as the value of pig lead, from which it is made; but excluding all possiblities of duplication, it yet remains absolutely certain that the value, at the mine 118 PROCEEDINGS AMERICAN MINING CONGRESS pit, or furnace, of the products of the mines in the United States during the year 1906 easily exceeded 11,700,000,000, or a value of more than one hundred dollars for every male adult in the United States, or, assuming that there are ap- proximately six hundred thousand persons engaged in the mining industry proper, a production per capita of men employed in the United States in the mining industry of more than |2,800.00 annually. Consider how the development of the Western Conti- nent has been brought about. Remember that the first in- centive to the early explorations of the Spaniards, and to the later settlements of uhe Frencl? in this magnificent valley, was the search for minerals. Fresh in the memory of many men now living, is the development of the iron industry in Alabama and Tennessee, and the transformation thereby wrought. Consider western Pennsylvania before the oil, gas, coal and iron were developed, and view it today, the heart of the manufacturing district of the world. Picture the the shores of Lake Michigan before the cop- per and the iron were developed, and know of the wondrous changes in New York and Chicago by the making of a thous- and millionaires from the deposits of the Mesabi range. Contemplate the first development of southern Missouri, and remember that the first railroad in that section was built to reach the famous Iron mountain! See what Joplin and the adjacent districts have become under the influence of the zinc mining industry. Alaska sat, since the glacial period, silent, grim and impenetrable, bound by the icy fetters of the polar seas, her barren peaks swept by the cruel blast of the north wind, until the miner's fiery ardor melted the icy chains and re- leased the golden flood. Alaska, for the purchase of which our government was criticised as being prodigal in paying the sum of seven millions of dollars forty years ago, today producing annually a total of more than f 21,000,000 in gold and in other mine products and is producing of forest, fish- ery and farm, three times as much more. Africa, which since the loss of King Solomon's mines, was abandoned to the barbarian and the beast by the gen- ius of the miners, Rhodes and Hammond, and the touch of their magic wands on the golden reefs, today is yielding mil- lions of wealth of every conceivable form for the uses of man. California, which lay across the barren waste of the great American Desert, over which the slow steps of the Forty-niner wearily dragged under the lure of the mine, IMPORTANCE OF THE MINERAL INDUSTRY 119 and by reason of the mining industry, has now become the most fertile spot on God's footstool. In truth, war and the lure of the mine, by which the best and the bravest of every generation have been drawn from the place of their birth, and their capacities multiplied many fold by a change of environment, have been the two incentives to action, the main factors of progress, the cause of the development of individuality, the means of diffusing intelligence, and the consequent attainment of the brotherhood of man. In the front ranks of the adventurers of the world have been the miners, and though of the advance guard too often may it be said, "their bones unburied on the naked shore, devouring dogs and hungry vultures tore, 7 ' yet ceaselessly the column has passed on, and smiling peace and plenty have followed in their train. There is no part of this continent, at least, where the miner has not been the pioneer. South America, most fertile in resources of all the spots of the earth, will never be redeemed from the jungle until the adventurous miner does the pioneer work. And rough and uncouth as these soldiers of the pick and drill are, yet 'tis the miner who has always planted the foundations of law and order. The only mention of a land of perfect abundance in the Bible is of a land of mines of useful metals. The book of Deuteronomy speaks of a promised land "where without any want thou shalt eat thy bread and shalt know abundance of all things. Where the stones are of iron and out of its hills are digged mines of brass." Without the product of the mines, the materials of lit- erature would be the quill pen and papyrus sheet, instead of the printing press and cheap paper, diffusing intelligence over the entire world and placing education within the reach of all; making the researches of the sages of all the heritage of all men. This democracy of education, this common diffusion of intelligence, is possible only through the modern printing press, and the printing press is made from the products of the mine. While the mines have created the means by which this literature is popular- ized, and by which literary men may be sustained, yet the mining industry has received few tributes from Knights of the Quill. Of the dignity of agriculture, literature is full ; of the glory of war, minstrels and poets have sung in every age; but of the dignity, glory and heroism of those who be- neath the surface of the earth have toiled with more won- drous results than the genii of Aladdin's Lamp, literature, song and story have been absolutely silent. 120 PROCEEDINGS AMERICAN MINING CONGRESS The Book of Job makes but one reference to a mine- but one sentence "There is a path which no fowl kuoweth and which the vulture's eye hath not seen; the lion's whelps have not trodden it, nor the fierce lion passed by it." No flaming' gonfalon floats there, and no stirring music is heard. There is none of the pomp and circumstance of glorious war. But in those dark, dull caverns, which the lion's whelp have not trod, and the vulture's eye hath not seen, are performed more acts of simple heroism and self- sacrificing ' endeavor than have ever been performed upon the battlefields of the earth. There have been more hardships endured between the White Pass of Alaska and the sweltering sun of the Equa- tor, in the miner's daily toil, than armies engaged in war have ever suffered. Gold, and the mysterious call from the depths of the earth have been the attraction by which all the great ex- plorers of the earth have ventured forth, and in their wake, and by reason of their first conquest of the wilderness and the desert, in the search of mines, have come all the great progresses of agriculture, of transportation, of manufac- turing, and of art. These are the direct influences of mining on the indus- trial and commercial life of a nation. But there is another feature of importance in mining. The indirect effect of min- ing success cannot be overestimated. The man who has amassed a fortune in mining is rarely content to be a mere idle holder of mone} 7 thereafter, and every field of endeavor outside of mining has felt the quickening effect of his invest ment in other fields of the millions made in the mines. . "The patient search and vigil long," the courage and constancy necessary for the development of a mining enter- prise, becomes a permanent possession to the successful miner; he carries these same qualifies into other fields of endeavor, he re-animates other enterprises, he inspires his associates, his courage and enthusiasm leaven the whole lump. Consider for a moment the remarkable impetus given to other enterprises in San Francisco and New York by the fortunes made in mining, and that the money of Mackay, Haggin, Fair and Hearst, has caused untold ac- tivity in other fields on the eastern shores of the continent, four thousand miles away from where the treasure was uncovered. Denver owes its commercial and industrial prestige, outside of mining, to the activities of Moffat, Tabor and others in other fields. IMPORTANCE OP THE MINERAL INDUSTRY St. Louis was called from her long sleep by the fortunes made in the famous Granite Mountain. Pittsburgers have become the most fearless and persist- ent workers in manufactures of all kinds, stimulated by the money and encouraged by the success of the iron, coal, gas and oil miners. Boston was little famed for its trade until the copper fields of Michigan distributed its millions 1 there. In this, more than in any other age, is the mining in- dustry the very heart and soul of industry and commerce, but looking back throughout the centuries, since the dawn of industry and commerce, there is no age in which the min- ing industry has not been paramount. "A cultivated and a populous race heaped with long toil the earth (Yea, and mined beneath it\ while yet the Greek was hewing the Pentelicus to forms of symmetry, or raising on its rock the glittering Parthenon." The importance of the mining industry to a nation! Your means of defense would be confined to the arrow or the wooden javelin, or the club with which the baboon kills his prey, instead of the many implements of war, made pos- sible by the mining industry, and by which peace is assured and nations are preserved! Tribes and confederations of tribes there might be, but no modern civilized nation could exist without the mining industry. But why multiply words upon the importance of the mining industry to the commercial and industrial life of a nation? Without it there would be little industry, tcss com rnerce, and NO NATION. Therefore, let the miner \valk erect, unaffected by the sneer of the supercilious or the criticism of the ignorant. His craft is ancient, and his calling noble. Let him walk erect! He is the chosen son of the Most High in the industrial development of this age and of all the ages yet to come. A Remedy for the Law of the Apex BY DR. JAMES DOUGLAS, NEW YORK CITY. While there may be difference of opinion as to the wisdom of amending the existing law known as the Law of the Apex, by reason of the fact that court decis- ions have settled so many of its ambiguous features, and that its provisions have been applied, and rights under it secured over so large an area as the. United Stages, few people would be found to defend the law on its own merits. Fewer still, if the law did not stand on the statute books, would frame or vote for the passage of such a law today. It was based on false geological assumptions, and has re- tarded mining in many districts. Apart from its baneful effects in this respect, it has been the cause of bitter ill- feeling among neighbors, and created a widespread feeling of hostility where there should have been co-operation, self- help and mutual aid and counsel. Those who so desire have the remedy in their own hands, for neighbors who do not wish to avail themselves of their rights under the apex law, may contract between themselves to apply to their surface the common law rule, and abolish, so far as their adjacent property is concerned, their rights under the law of 1873. In May, 1882, Mr. Win. E. Church of the Detroit Copper Mining Company, whose operating headquarters were at Morenci, near Clifton, Ari- zona, made an arrangement with Messrs. Freudenthal and Lesinsky, the owners of the Longfellow Copper Mining Com- pany, and a number of other claims in the Clifton district, to aJbolish the apex law as applied to their properties, and to confine their operations in depth within the end and side lines of their respective claims carried down vertically. After Messrs. Freudenthal and Lesinsky sold their prop- erty to the Arizona Copper Company the arrangement which has worked so well was confirmed by the Arizona Copper Company, and a similar contract was made between that corporation and the Detroit Copper Mining Company. As a result, during the twenty-six years that have intervened between the first contract and today, there has been no litigation in the Clifton district growing out of the law of the apex. A number of other companies have since then begun operations in the district. I am not aware whether or not similar contracts have been made among them, but a spirit of friendliness, instead of distrust, prevades the whole corporate mining community of that district, which A REMEDY FOR THE LAW OF THE APEX 123 may or may not have been brought about by the action of the two most prominent mining companies. In the still more productive Warren district of southern Arizona, whose center is the town of Bisbee, the Copper Queen was for many years the only company working ac- tively, or producing much copper; but when the Calumet & Arizona Company acquired property and became an impor- tant factor in the copper production of the southwest, the same spirit possessed the companies, and the same method of avoiding litigation, growing out of the direction in which ore bodies extended, was adopted. In the Warren district the profitable ore as yet discovered and developed is con- fined to beds of carboniferous limestone, whose thickness is about 400 feet, and which have a southerly dip. Probably under the decision in the famous Eureka-Richmond case, the Copper Queen, which has worked continuously from a mar- velous outcrop opened up in 1880 along the dip of the ore bearing strata of limestone for a distance of over a mile from it outcrop to a depth of 1,200 feet below the surface, might have fought, with a reasonable 'expectation of win- ning, for all ore on the dip. But the result of litigation would have been curtailment, if not stoppage, of work, by injunction, paralysis of the whole district, rabid hatred be- tween neighbors, and the transfer of profits (if under the circumstances any happened to be made) to the legal profes- sion instead of to the shareholders. And therefore the Cop- per Queen Company, guided by the success of the experi- ment in the Clifton district, was quite willing to follow the same procedure and make side and end line agreements with the Calumet & Arizona Mining Company and with five other prominent neighboring mining companies. The wonderful development of mining in the district has unquestionably been brought about through this lib- eral policy, for not only has litigation and its consequent bitterness of feeling been eliminated, but the underground development of the district has progressed more rapidly than it would have done had not the contracts contained a clause which opened each other's mines to the inspection of the contracting parties. The consequence has been that any discovery made by any one of the companies, instead of being concealed, is published to the others, and the neighbor is thus directed to the point where he should, with most probability of success, search for ore. This benefit has been experienced to the utmost advantage in the War- ren district, where the ore bodies appear to be eccentrically distributed within the area of the limestone above referred to. 124 PROCEEDINGS AMERICAN MINING CONGRESS So loyally do. the companies live up to the spirit as well as the letter of the mutual engagements, that when one of the companies works in ore to the side line of his neighbor's claim, and his neighbor's ground travels across the line into his own (an event which not seldom happens in ground so soft and shifting as the ferruginous clays which carry most of the copper of the Warren district) no question has arisen as to the right of the original owner to the trav- elled ore, nor objection raised to his removing it from the adjacent claim which he does not OAVII, or else claiming its value. From every point of view, therefore, I believe the companies of both districts have benefited; and the popula- tion at large of both have prospered. Moreover, to this abolition of the Law of the Apex and the voluntary adoption of the common law rule, may safely be attributed the rapid strides with which the whole of southern Arizona has advanced of late. Under the old Spanish mining law T , as applied to their American colonies, the ownership of the mineral in depth beneath the actual surface of. the claim is vested in the pos- sessor of the surface, but if the miners were negligent and tardy, and his neighbor reached the ore in depth below his surface before he did, that neighbor might extract the ore, accounting to the owner for a certain share in the profits. In that way the Spanish government, which depended for revenue on the export duty of minerals, protected itself against the absorption of unused mining property by un- productive owners; but the eagerness with which we push forward towards every indication of ore, and the haste with which we are to extract it, supply sufficient remedy against so remote an evil. As I have already remarked, except by voluntary con- tract such as above described, one can see no means of radi- cally amending the mischievous Avorkings of the Law of the Apex in the older mining districts; but this remedy is available to all neighboring mine owners, who wish to act in a neighborly manner and exchange a possible advantage, which may be secured after great loss of money and temper, for an assured benefit. The following draft of an agreement embodies such provisions as we have found to cover the main points, which, in our experience, have arisen in carrying out the above policy : This agreement, made and entered into this Witnesseth: That whereas, The parties to this agree- ment are the owners of certain mines, mining claims, and premises, situate, lying and being in the county of ........ . A REMEDY FOR THE LAW OF THE APEX 125 Territory, of Arizona, the side lines of many of which adjoin each other, or are closely contiguous to each other. And whereas, Under existing Statutes of the United States of America in relation to leads, lodes, veins, and deposits of mineral bearing earth or rock, the rights of own- ers and locators thereof, where the apex exists within the surface boundaries of a claim, to follow such leads, lodes, veins, or deposits upon their dip, outside of and beyond the side lines of mines, mining claims and premises, which are carried downward vertically from the surface indefinitely, have been established, And whereas, The parties hereto desire to settle and adjust forever their respective rights to the leads, lodes, veins, and deposits existing within the boundaries of the several mines, mining claims, and premises owned by them, respectively, by waiving their rights, privileges and owner- ship arising under the statutory provisions now existing, or which may hereafter be adopted, in relation to the right to follow said leads, lodes, veins, or deposits outside of and beyond the side lines of said mines, mining claims, and premises, carried downward vertically from the surface indefinitely. Now, . therefore, in consideration of these presents and the covenants, conditions, and provisions herein set forth, and the grants, conveyances, relinquishments, and releases which are hereby made by and between the parties hereto, it is hereby covenanted and agreed by and between the parties hereto, as follows : First. That in all cases where the lead, lode, vein or deposit of mineral bearing earth or rock situate within the surface boundaries of any mine, mining claim, or premises, herein mentioned and referred to, passes on its dip, or other- wise, outside of and beyond the side line of such mine, min- ing claim, or premises, carried downward vertically from the surface indefinitely, the right of the owner or locator of said mine, mining claim, or premises, in. which said lead, lode, vein, or deposit exists to follow the same and to ex- tract the ore therefrom after it passes on its dip, or other- wise, outside of and beyond said vertical side lines into the mine, mining claim, or premises, owned by the other party or parties hereto, is relinquished and released to, is hereby forever vested in and granted and conveyed to the party to this agreement that is the owner of the mine, mining claim, or premises, into which said lead, lode, vein, or deposit of mineral bearing earth or rock it passes. Second. That, in relation to the said mines, mining claim, and premises, in every case where the lead, lode, vein, 126 PROCEEDINGS AMERICAN MINING CONGRESS or deposit of mineral bearing earth or rock shall pass on its dip, or otherwise, from the mines, mining claim, or prem- ises, of one party to this instrument beyond the side lines of such mines, mining claims, or premises, carried down- ward vertically from the surface indefinitely, into the mines, mining claims, or premises, of the other party, the right to follow such lead, lode, vein, or deposit outside of or beyond said side lines of such mines, mining claims, or. premises, carried downward vertically from the surface indefinitely, is, by these presents, waived and forever relin- quished and released by the parties hereto, each to the other, its successors and assigns. Third. That the officers, servants, or agents of either party hereto who may be by either party authorized in writing, by the board of directors of either party, shall at all times have free access into and through all exterior and interior openings and workings of any of the mines, mining claims, and premises, herein mentioned and referred to for the purpose of determining the location and position of said workings and openings and of the ore bodies therein with reference to the side lines and end lines of the said mines, mining claims, and premises, carried downward vertically from the surface indefinitely. Fourth. That upon the application of either party hereto for a United States patent for any of the claims herein mentioned and referred to, no protest, objection, or adverse claim or suit shall be entered, made, filed, or insti- tuted by either party hereto against the other who shall apply for such patent, on account of the working or mining of leads, lodes, veins, or deposits of mineral bearing earth or rock, or the extraction of ores therefrom, which are found upon the dip of the leads, lodes, veins, or deposits of mines, mining claims, or premises, for which such United States patent is applied. Fifth. That in all cases in which United States patents may be hereafter granted for the mines, mining claims, or premises of either party, situate in the Copper Mountain mining district in the county of , Territory of Arizona, this agreement shall operate as a covenant on the part of each of the parties hereto that upon the acqui- sition by either party of the outstanding title in the United States of America in unpatented claims, all the covenants herein shall be deemed immediately applicable to, and shall control and determine the rights of the parties hereto in relation to following any leads, lodes, veins or deposits of mineral bearing earth or rock in such patented claims beyond the side lines thereof, carried downward vertically A REMEDY FOR THE LAW OF THE APEX 12? from the surface indefinitely, notwithstanding the grant and conveyance by the United States of America to either party hereto of said leads, lodes, veins, or deposits of mineral bear- ing earth or rock, and the exclusive right of possession and enjoyment of all the surface included within the lines of their locations, and of all veins, lodes, and ledges through^ out their entire depth, the top or apex of which lies inside of such surface lines extended downward, vertically $ al j though such veins, lodes, or ledges may so far depart from a perpendicular in their course downward as to extend out- side the vertical side ftnes of such locations. Sixth. That either party hereto, upon the request of the other, and without further or additional consideration, shall and will make, execute and deliver to the other such further or additional instrument or conveyance as shall, subject to the proviso aforesaid, absolutely vest the owner- ship of any lead, lode, vein, or deposit in any mine, mining claim, or premises therein mentioned or referred to, so pass- ing outside of and beyond the side lines thereof, in the other party who is the owner of any adjoining or closely contigu- ous mine, mining claim, or premises, herein mentioned and referred to; such ownership, however, shall be restricted and confined within said side lines of the mines, mining claims, or premises of such other party, carried downward vertically from the surface indefinitely. Seventh. That the party of the first part hereto, and the parties of the second part and of the third part hereto, for the consideration herein expressed and in consideration of the sum of one dollar ($1.00) by each paid to the other, the receipt whereof is hereby acknowledged, have forever released and discharged each other, from any and all debts, dues, claims, demands, damages, and suits at law or in equity, for, or on account of any trespass or injury done or committed in working in or upon and leads, lodes, veins, ledges, or deposits of mineral bearing earth or rock, in any mine, mining claim, or premises, herein mentioned and re- ferred to, or in the extraction of the ores thereof, from the beginning of the world to the date of these present. Eighth. That this instrument, which is to be executed by the party of the first part and the party of the second part in the Territory of Arizona, in the United States of America, and by the party of the third part in shall be construed in accordance with the laws of the Ter- ritory of Arizona. Ninth. That the mines, mining claims, and premises, mentioned and referred to in Schedule A, hereto annexed, constitute the property of the party of the first part hereto, 128 PROCEEDINGS AMERICAN MINING CONGRESS. and the mines, mining claims, and premises, mentioned and referred to in Schedule B, hereto annexed, constitute the property of the party of the second part and of the party of the third part hereto, and Schedules A and B, hereto an- nexed, are hereby made a part of and are deemed to be incorporated in, this agreement, as a part hereof, and that said party of the third part, for the consideration therein expressed, hereby assents to and confirms this agreement and all the covenants, conditions, and provisions therein contained. In witness whereof, the parties hereto have caused this instrument to be executed in triplicate in the manner un- derwritten, and have caused their respective corporate seals to be hereto duly affixed, the day and year first above written. The History of Gold and Silver l:Y JAAIKS \V. MALCOLMSON, KANSAS CITY, MISSOURI. The history of gold and silver to a large degree is the history' of civilization. These metals have been found in all countries of the world and are widely diffused through- out the crust of the earth. In the earlier ages of the world's history, gold was obtained more readily than silver, as it is not affected by oxidation or decay. On account of its weight, it settles in the metallic state in streams to the bedrock and on account of its resistance to natural leaching processes, it is often found at the outcrops of mineral deposits when all other minerals hare disappeared entirely. Silver, on the other hand, is but seldom found in the metallic state, but is more, often mixed with gold, lead, copper, or zinc. Pure silver minerals, such as the chloride or sulphide are almost as rare as native silver and silver ores are usually complex mixtures in which other metals predominate. The processes of treatment of silver ores are therefore more complex than those of gold, and the metal is only obtained by regular underground mining operations, as it is but rarely carried away from the zone of its original deposition. It is pro.bable that gold was employed long before silver was known and the value of silver in some ancient states appears to have been superior to that of gold. Even in Japan, up to the seventeenth century, the value of gold and silver* were almost equal. Soon after the first opening of that country to commerce the Dutch secured nearly all the gold of Japan in exchange for silver, before the Japanese learned the difference in values in Europe. In ancient Greece in the days of Herodotus, gold was thirteen times more valuable than silver and this ratio appears to have been fairly constant for many centuries. For .nearly 1,000 years to the fall of Constantinople, the ratio of value of gold to silver in the Roman Empire was approximately 12 to 1. In Arabia, in the sixth century, the ratio was 61 to 1, while at the same time it was 10 to 1 in France. In Spain in 1493 it was 10f to 1. In 1500 the ratio of value of gold to silver was 10] tol. In 1600, it was 12 to 1. Kill PROCEEDINGS AMERICAN" MIX IXC COXCRKSS In 1700 it was 15 to 1. In 1800 it was 151 to 1. In 1900 it was &U to 1, prolmbly on account of its demonetization throughout nearly the whole of Europe and America. It was a remarkable fact thai from IWiO to ISdO, a IK rioel of .200 years, the ratio of the value of gold and silver remained almost stationary at 15| to 1. The search for gold has been the- first cause of the set- t lenient of mnch of the earth's surface 4 by civilized races. Del Mar believes that the Argonauts, who sailed from Thes- saly with Jason to obtain the golden fleece of Colchis, were probably leaders in a rush to a new gold field or placer deposit along one of the rivers flowing into the Black Sea. The allusion to the golden fleece perhaps indicates the use (.f sheep skins in sluice boxes in the way (hat we still use woolen blankets for the same purpose. The settlement of Egypt by the Semitic races of Asia has been thought to be contemporaneous with the first dis.- covery of the gold mines of the Peninsula of Sinai, more 1 than 2,500 years before Christ, and the Phoenicians and Jews, the kinsmen of these hardy pioneers, went out and searched the whole world for minerals. In the Book of Job, supposed, I believe 4 , to have beer. written 1,500 years before Christ, a notable reference to gold and silver occurs, as follows: ''Surely there is a vein for the silver and a place for gold where 1 they fine it, as for the earth, the stones of it are the place of sapphires and it hath dust of gold. 7 ' Of Solomon, who lived 1,000 years before Christ, it was said that "All his drinking vessels and all the vessels of his house were of gold, none were of silver, it. was nothing accounted in the days of Solomon." Solomon was perhaps our first Bonanza Mining King. It is* a curious fact in the history of mining the precious metals, that no matter how intelligent or economical a man may be, if he be unsuccess- ful in finding ore, his industry and talent count for noth- ing; and no matter IIOAV imprudent or unintelligent he may leally be, if he finds rich ore and makes a huge profit, he is hailed everywhere as Wisdom personified. It was probable that something of this sort happened to Solomon and since 1 then, his mines have 1 been the theme of the novelist and the j poet. He was closely allied with be>th the Egyptians and the Phoenicians; he married Pharaoh's daughter and was a e-lose friend and ally e>f Hiram of Tyre, King of Phoenicia. On account of his successes in gold, mining in Africa, in Egypt and elsewhere, it is probable that every wise saying THE HISTORY OF GOLD AND SILVER. 1:51 for centuries was attributed to him. Even his matrimonial adventures are more or less characteristic of many success- ful mining' operations of our own time. In southeastern Africa, over an area of 600 miles square, the ruins of forti- fied cities. and great mining camps are found, about which almost nothing is known today, except that the occupation of the ancient inhabitants was gold mining. It is estimated that over four hundred million dollars worth of gold was extracted from these mines. Andrew Lang says of them: "Into the darkness 'whence they came, they passed, Their country knoweth none; They and their gods without a name Partake the same oblivion. Their work they did, their work is done Whose gold it may be shone like fire, About, the brows of Solomon And in the house of God's desire. We know but that men fought and fell Like us, like us, for love of gold!" The silver mines of Laurium, 30 miles west of Athens were worked for centuries by the Greeks and are referred to by Tacitus, Aristotle and many other writers. They weem to have been worked originally by the Phoenicians, 1,200 years before Christ. Demetrius, a Greek writer, AV!IO lived 800 years before Christ, boasted that the Greeks, worked these properties with such energy that they threatened to dig up the devil himself. Shortly after this period, min- ing operations were shut down. The mines of Laurium were re-opened very successfully by the French in 1S(5() and aie paying dividends at the present time. In the search for gold, the Phoenicians, and afterwards the Romans, who Avere more skillful miners than the Greeks were led to Spam, which was to the ancient world what Mexico is to us today, but during the most critical period of the Punic wars, Koine debased its silver money and demonetized its copper coinage, because the silver and cop- per supplies of the world at that time came from Spain, then in possession of the Carthaginian army. Hannibal", however, had other resources and this became, probably, (lie first 'great war in history where the troops of both armies were paid in gold coin. In the fourth century the Romans worked, gold mines in every province of Europe and practically all the gold known at that time was in their possession. Humboldt is authority for the statement that America was discovered because Columbus sought a nearer way to the gold mines of Japan, Avhile rortez and Pizarro peue- 132 PROCEEDINGS AMERICAN MINING CONGRESS trated the unknown forests of the New World in the search for the precious metals. The conquest of India and South Africa, the settlement of California, Australia and Alaska, all originated in the desire to obtain golden treasure, and the search for gold has carried the torch of civilization throughout the world. It is a curious fact, however, that th-^ English speaking peo- ple alone produce today nearly seven-eighths of the world's production of gold. Asia possesses a remarkable capacity for the absorption of gold and silver and much of the precious metals sent there seems to be permanently withdrawn from our stocks available for money. It may be that much of this is hoarded or buried in the ground and lost, becoming practically non- existent. Asia has been called the sink of gold and silver and its ability to absorb or lose .these metals has been a subject of remark ever since the time of Alexander the Great. Among all civilized peoples, gold and silver have de- rived their chief importance from their use as money. In the earlier period, the first money known and even still in use among undeveloped or isolated communities consists of skins, salt, shells, soap, slaves, cattle, sheep, olive oil, tobacco, iron, tin, lead, copper, nickel and platinum. In such communities transportation facilities were rudimen- tary, commercial operations were limited to small areas and carried forward slowly, on a small scale. Money lias been defined as that which passes from hand to hand throughout the community in final discharge of debts and as full pay- ment for commodities or service, being accepted without reference to the character or credit of the person who offers it. For many reasons, the metals finally superseded all other forms of money and gold is gradually displacing all other metals and driving them from the field. Cattle die, iron rusts, slaves grow" old, but gold and silver, and more especially gold, fulfills all the requirements of money bet- ter than anything else we know of. Gold is of small volume compared with its weight and value, it is of uniform good- ness and quality, easy of transport, easily guarded, readily divided and reunited without loss. Its identity is perfect, it is easily recognized and is beautiful, brilliant and dur- able almost to eternity. .It is probable that gold which was in use at the time of Solomon is in active service still. Gold does not deteriorate with storage or time and its firm and compact texture, makes it difficult to wear away. THE HISTORY OF GOLD AND SILVER 133 Until within the last generation, the value of gold bore practically no relation to its cost of production, but depended only on the total quantity in the hands of man- kind. For ages, its values changed only by slow degrees. In ancient times, strong nations plundered weaker races of their hoards of the precious metals and more modern powers have followed their example, using it without regard to its cost of production. It is probable that gold and silver were used as money long before the metals were stamped and coined and this was ultimately drone in order to save the trouble of weighing and assaying for each transaction. The talent, shekel, etc., in the Hebrew records all refer to the use of money by AY eight, while the English pound and the Spanish peso and onza all indicate weight. The word coin itself, meaning a wedge, indicates a primitive method of using money. Our word pecuniary, now applied to metallic money, origin- ally meant cattle, and from the custom of counting cattle, comes our present designation of money as capital, meaning heads. The coinage of gold and silver was adopted at first by private individuals and cities to guarantee originally the fineness and afterwards both the weight and purity of the metals. In Rome, under the empire, however, coinage became the exclusive privilege of the Emperor. Herodo- tus attributes the first use of coined gold and silver to the Lydians, but it is probable that the real date was much earlier. As civilization advanced, the use of gold and silver as money became a modification and an improvement on the earlier methods of simple barter and gold presented us with a desirable standard of comparison with which all other values, even including future obligations are com- pared and measured. Gold, however, is not an absolute standard, such as the pound weight or the metre length, but is simply a rela- tive measure of value as steady as anything w T e know of. In other words it is possible for gold itself to change in value. The control of weights and measures has always been one of the great functions of governments and is one of the nec- essary prerogatives of national life and honor, and every honest government since the dawn of history has protected the use of gold and silver with the best guarantees it could devise, both as regards its weight and its purity. The repu- tation of any government can be more readily and more ser- iously injured by the debasement or the defects of its cur- rency than in any other way. Changes in the value of gold 134 PROCEEDINGS AMERICAN MINING CONGRESS are reflected immediately in the price of some commodities and very slowly in the price of others, particularly in wages and returns from investments bearing a iixed rate of inter- est. In any change in the value of gold, the majority of the poorer portion of the community suffers most; employers and merchants are quick to discount any change and they adjust themselves to new conditions more readily than the wage earning classes. Those living on the interest paid on bonds or mortgages, cannot adjust themselves to the change at all, and are paid a, fixed amount of gold, irrespective of its value. The wealth stored up by all com in unities in interest bearing bonds, using gold as a fixed standard for future payments, is affected enormously by changes in the value of gold and the result of such changes on the busi- ness and commerce of the world is hard to realize. Although gold is mentioned in the earlier literature of every race, it is difficult to learn its ancient value as meas- ured in terms of food and Avages. It is certain, however, that its value in early times was a thousand times greater than it is today and that this value had been decreasing slowly until the discovery of America. In the thirteenth century, it was estimated that the total stock of gold and silver in Europe was approximately six dollars per capita, the population at that time being thirty millions. Only one-half of this gold and silver was coined; no banks or negotiable paper existed. Good roads were few and there was little peace and no credit. From the fifteenth to the eighteenth centuries, enormous quantities of silver were obtained, by Europe from the New World and the gold sup- plies of Japan and India were gradually transferred to Europe until by the end of the eighteenth century there was, estimated to be ten times as much of the precious met- als in Europe as in the thirteenth century. As before men- ^ ioned, previous to the eighteenth century, the value of gold bore practically no relation to its cost of production, but depended primarily on its peculiar fitness for money as a basis of value and on the total amount in use. Before 1840 the annual production of gold bore puck a small relation to the total quantity existing, that its cost of production from year to year never materially affected the value of the whole quantity in use and Yon Hum-bold t, in a remarkable arti- cle on the production of gold, written in the early part of the nineteenth century, predicted that these conditions would exist for all time. In 1845 the annual production of gold in Russia in- creased very largely and all Europe 1 was alarmed. In Hol- land the desirability of a single silver standard was widely THE HISTORY OF GOLD AND SILVER i:',r discussed. In the Netherlands, gold was demonetized in 1847 and the silver florin declared 1o be the sole legal ten- der. Belgium soon followed suit. In 1847 a run occurred on the Bank of England. In 1848 the Bank of Austria stop- ped payment and when in 1849 California began to give its golden treasury to the world, the golden panic reached its height. In 1857 Russia suspended payments in specie and the German states, including Austria, adopted a single sil- ver standard. Chevalier advised the government of France to demonetize gold and Cobden, in- England, seriously rec- ommended a return to simple barter. After this increased production of gold, however, the actual course of events reversed all predictions, prices rose everywhere, and the world entered upon a period of unexampled progress and prosperity, and in 1871 the German empire finally adopted the gold standard and discontinued the mintage of silver, being followed in 1873 by the United States and France and by the Latin Union, Holland and Belgium in 1875. It is, however, owing to the utilization of the power of steam, during the past 50 years, a cause which has wrought so many changes in human affairs, that the use of gold as money has been almost completely revolutionized. The amount- of gold in the world, which, before 1850 had in- creased slowly and had barely kept up with the increase in population, suddenly increased by leaps and bounds. It became twice as great, ten times as great, and by the year 1900, the annual production of gold became approximately 400 tons, or 22 times as great as in 1800. Since then, the production has increased with equal rapidity, until now, it has reached 680 tons per year, and it is estimated by competent authorities, that in the next 16 or 17 years the amount of gold in the world will be doubled. In other words, the amount of gold which has taken the whole civ- ilized world thousands of years to accumulate, will be dou- bled in our own lifetime. In addition to this, the spread of knowledge, the development of railroad and ocean trans- portation, the use of the telegraph and the growth of mod- ern banking methods, have all increased the efficiency of gold as money. This has also been aided by the greater confidence which races and individuals now have in each other, which is one of the great underlying features of our modern civilization and a golden dollar can now be made to do more than a hundred dollars did a century ago. These rapid changes are being accompanied by others equally remarkable; money can now be transported throughout the world at a. speed undreamt of by our fathers, cheaply and I.!*; PROCEEDINGS AMERICAN MINING CONGRESS with almost perfect safety. Its use has been still further facilitated by international and other clearing houses, where transactions involving the use of the measuring power of gold are affected to an enormous extent by tele- egraphic communication without actually moving or hand- ling the gold itself at all. All this has tended to make gold cheaper. On the other hand, the enormous scale on which commercial enterprise is now being carried forward, the improved mode of living of whole races, the demands of industry for money along so many different lines, the money needed in the building up of new countries and the funds required for war purposes, all tend to keep up the price of gold. Underlying all these activities, however, remains the commodity gold, upon which all our calculations are based pnd the fact must always be remembered that gold as money is only a measure of value by virtue of its relation to the value of other commodities. In all countries, appre- hension is felt when gold is exported and this perhaps is an unconscious admission that the quantity of gold in any community exercises an important influence on its indus- tries and its commerce. The use of gold as money is primarily a modification of the system of barter or exchange and is to a lesser degree than any other material human standard, a creation of law. At the same time it must always be the effort of govern- ment to limit and define its use with precision. In spite of the present efficiency of mining operations and the improvements and economies in metallurgical pro- cesses, it is probable that the demands of industry and commerce which are increasing so enormously, will ulti- mately increase the value of gold, or at least prevent its depreciation to any serious extent below its present level. Whether the value of gold will change materially in the future or not, is a subject that deserves the earnest consid- eration of every statesman. Although this subject has received the attention of thinkers in all ages, the issues have usually been hidden by the personal interests of rulers, or of those controlling the supplies of the precious metals, or by the desire of governments to secure the greatest benefits for their own coinage. It is seldom that the people of any community have had the opportunity to investigate the rela- tion of this question to their own welfare and it is not im- probable that some of the inequalities of our social system may be traced directly to this cause. The growth of organ- ized society depends largely upon the development of ex- THE HISTORY OF GOLD AND SILVER 137 change and exchange is impossible without money. If we must continue to use gold, it is of prime importance that our government should be able to form an accurate judgment regarding its present and future value because this, the basis of our monetary system, fixes the value of much of the property in our own country over long periods of time. The Possibilities and Limitations of Geological Survey Work as Applied to the Mining Industry BY GEORGE OTIS SMITH, DIRECTOR UNITED STATES GEOLOGICAL SUR- VEY, WASHINGTON, D. C. . Gentlemen of the American Mining Congress: The year 1907 promises to mark an epoch in the, min- ing industry of the United States. 1 refer to the proba- bility that the 'value of the mineral output, for this year will pass the $2,000,000,000 mark. Last year was a record breaker Avith its mineral product valued at $1,902,000,000, an increase of 17 per cent, over the previous year. There- fore, before I discuss the relation of the Geological Survey to the mineral industry allow me to call your attention to the fact that in the first year of the Sur- vey's history the value of the mineral product of the country, so far as known, was only about one-ninth of the present figure, and further, that now the value of the annua.l product, of our coal mines alone exceeds one-half billion dollars, or, in other words, is more than twice the total value of all the mineral products of 1880. At this time we do well to consider whether this federal organization has had any part in the national progress and whether it intends to keep pace with the development of your industry, a development it has carefully recorded during these twenty-eight years. ' In any review of the development of American mining, the man behind the pick and the drill must be given his due, but motive power counts for little without knowledge* to guide it. And I take it, Mr. President, that the Ameri- can Mining Congress stands for the intelligent guidance of the mining industry, and in this the United States Geo- logical Survey heartily joins. Your President,' in his inspiring address the other evening, remarked on the discoveries you had recently made in Washington, and he was kind enough to mention his discovery of the Director of the Geological Survey, but he neglected what was far more important, the Geological Survey itself. If I may be allowed to speak in technical language he spoke to you regarding a small surface show- ing and neglected to mention the big high-grade ore de- posit beneath. GEOLOGICAL SURVEY WORK 139 The Geological Survey is a federal bureau, the chief work of which has been and is devoted to the industry you represent, Reference has been made by your President to the Department of Agriculture and its many bureaus and its important work. Our Geological Survey is expend- ing annually over $1,500,000, in other words, measured in terms of comparison witli the Department of Agriculture., it exceeds the expenditures of several bureaus of that de- partment by several thousands of dollars and I repeat that our work is largely addressed to the needs of the mining industry. Our division of Alaskan mineral sources is larger than any one of several bureaus of the Department' of Agri- culture. Every cent of the $80,000 of that appropriation is expended in the interest of mining in Alaska,' I might mention to } r ou our publications. Your Presi- dent spoke of the Agricultural Department, that it was is- suing publications for the information of the farmer, by the million. We can say, too, that we issue publications by the million. The last year, our total distribution of pub- lic documents was within a few thousand of one million copies. There is another channel through which our Survey keeps in touch with the mining industry and with the min- ers, and that is, in the compilation of mineral statistics, the divisions of mineral resources, carrying on correspondence regularly with no less than fifty thousand men interested in the mining industry of the country." Nine thousand of these correspondents, for instance, are gold and silver miners > and five thousand are coal operators. It is this kind of thoroughness in this work that leads our friends in the De- partment of Agriculture to frequently express their admira- tion for our force and our work. I regret, therefore, that President Richards did not have time to be shown both, but I imagine that he saw more than what he told you, for I understand it was at his instance that the Congress today passed a resolution asking for larger appropriations for the work of the Geological Survey. In speaking to the subpect assigned me, I ask for the Survey a fair recognition for its part in the past of Ameri- can mining, and I promise for the Survey even greater en- deavor to increase its usefulness to your industry in the future. In making this promise of future service I am con- scious of the two fundamental limitations of a government organization; the United States Geological Survey is the servant of the people along lines defined by the law of Con- gress, and both the direction of our progress and the dis* 140 PROCEEDINGS AMERICAN MINING CONGRESS tance covered are determined and limited by the appropria- tion act. Limitation is but another name for boundary. What, then, axe the boundaries of our field of endeavor? Or, if you please, the end lines of our claim? Interested as I am in the future development of the organization I represent, I believe we should not be asked to surrender extra-lateral rights, but only to show the persistence of the lead to jus tify further extension and expansion of the work. Congress has expressed the scope and purpose of this branch of the public service in its name. The words "United States" define its national character. In no branch of in- dustry, probably, are state lines of so little moment as in the mining industry. A mineral product of fifty years ago might have been credited to a single state; but today, by reason of development of transportation, with its influence upon financial operation and commercial interchange, the* output of our mines and quarries not only reaches the mar- kets of the. world, but in many cases the marketed product is of interstate origin. Years ago a shipment of pig iron could be set down as the product of a Marquette county furnace, using Michigan iron ore from the mines close at hand and Michigan limestone as well as charcoal from the neighboring hills; yet today, the blast furnace in eastern Pennsylvania may use Minnesota ore, West Virginia coke and New Jersey limestone, and ship its product to Cali- fornia, Nor need I go far afield for an illustration: You men a,t Joplin, for the operation of your mines and mills, get your power from a sister state, from the coal mines, froni the gas wells and from the water power of Kansas. Nor is the case at all different in the smelting of ores of the precious or other metals. Our smelters, whether lo- cated in the East or the West, levy tribute upon the min- eral wealth of many states and rarely can the best mixture of ores be obtained from a single state. Again, in the study of ore deposits the mining geologist who, for instance, can continue his investigations year by year through a series of copper camps, has a great advantage over an investigator whose observations must be confined to the mines of a single state. This increase in opportunity means increase in value of results secured and published for the information of the public. The collection of mineral statistics and the study of mineral deposits then must of necessity be made by an or- ganization whose field is the whole country. As regards authority, the first Director of the Survey, Clarence King, GEOLOGICAL SURVEY WORK 141 well remarked (hat (lie constitutional right of the federal government "to regulate internal commerce could hardly fail to carry Avith it the correlative right to gain a know- edge of those commodities and products which are the very material and basis of commerce." In its relation to the mining industry, therefore, I discover no limitations set upon the work of our Survey by reason of its federal char- acter; but rather see in this one of its greatest sources of strength and efficiency. The second part* of the name is "Geological." In the wording of the law creating the Geological Survey, "min- eral resources" and "geologic structure" are linked together in a closeness of union that is well justified by the results of investigations showing the absolute dependence of the one upon the other in so many mining districts. There is then a fitness in the use of this adjective "geological" in the title of the organization. It expresses a recognition of the real basis of the mining industry, and upon this found a tiou the Geological Survey has built well. Between the lines of every appropriation bill for work under the auspices of our Survey we may read the words "practical" and "utilitarian"; yet even this evident purpose of the appropriation is not to be considered as a limitation upon the nature of the work. The very name of the or- ganization to which these funds are entrusted speaks for its scientific character and in science, progress is not at- tained by the. separation of the practical from the theo- retical, but by their union.and co-ordination. The fruitage of theory is practice and we cannot gather the harvest with- out carefully tending the tree of knowledge. Most import tant is it not to limit our concept of the useful as did the Englishman who is quoted by Huxley as understanding utility to mean "that by which w r e get pudding or praise, or both." Better to count every investigation useful which our faith tells us may some time win pudding and praise for the other fellow. On this account you practical men must not under-rate the contribution of the worker in pure science, but rather realize that his work is fundamental. For these reasons, again, Mr. President, we count it not a limitation, but the greatest advantage, that this federal or- ganization of which I am speaking bears the title "geologi- cal" and that we therefore approach your most important industry from the scientific side. In the third place, I can discover no embarrassing prop- erty line in the word "Survey." To most of us, does not the term carry with it the flavor of the West, and the inspira- 142 PROCEEDINGS AMERICAN MINING CONGRESS tioii of discovery and exploration? It expresses the idea of getting- at the truth at tirst hand, while such a word as "bureau'"'' serves only to emphasize the administrative and clerical side. "Survey," then, stands for work in the field, the winning of truth, not from books, but from rocks; not in the office, but in the slope; and as you men well know, it is upon thorough field, investigation alone that you can rely. On this account, I rejoice that tweiity-eighl years ago Congress in its wisdom retained the tise of this one word which links the present organization .with its predecessors whose records in the winning of the West are a valued heritage. Our title to the claim is well established, for our pat- ent rests upon no nominal compliance with the require- ments as to assessment work. The field in which you are interested is a broad one and you are justified in the state- ment that too little attention has been given to your indus- try by the federal government. Yet thus far all the devel- opment work is to be credited to the Tnited States Geo- logical Survey and its predecessors, and many witnesses could be cited to prove the value, of its output. The subject of mining geology was put foremost in the plan of the or- ganization .of the Survey and the impetus then given to the investigation of ore deposits continues to the present day. Dr. Raymond, the Secretary of the American Institute 1 of Mining Engineers, has said that the leadership which American observers have taken in the science of ore depos- its must be attributed not only to the rich field here afforded and its active development by mining, as well as to tlie lib- eral appropriations made by state and federal governments for its study, but also to what is most important the pres ence of men competent to take advantage of these favor- able conditions and "the wise provision made for such in- vestigations by the first Director of the United States Geo- logical Survey." May -I now speak of the possiblities of the United States jeolog-.cal Survey? At other sessions of this Congress, representatives of the Survey have explained to you the contributions it has made and is making to your industry, and already I have incidentally touched on some of these. I propose, there- fore, to conihie myself to only a brief mention of the pres- ent work, and that merely as a basis .for the statements of further possibilities of development in your behalf. Our topographic maps in accuracy of detail and in ex- cellence of mechanical execution are of the highest grade. GEOLOGICAL SURVEY WORK 143 Every three days our om'ce is publishing one of these maps, based on actual survey, and much oftener is printing a new edition of some eailier sheet; yet we appreciate the fact that one class of men, to whom many of these maps would be of greatest assistance the prospectors rarely know that such a map is extant. Of even greater value is this map To The mine, operator, who follows the prospector and plans the development of the property, and therefore should have before him all the data bearing upon the important questions of water supply and transportation. The en- deavor of the Geological Survey must be, not alone to make better topographic maps and more of them, but to get these maps into the hands of the people for whom they are made. Much the same statement can be presented regarding our geologic maps. Every month, on the average, a folio is issued which presents graphically all that is known regard- ing the geologic structure and the distribution of the min- eral wealth within a district embracing an area of from 200 to 1,000 square miles. A large proportion of these geologic folios cover mining districts and are especially addressed to the mining fraternity. However, it again appears that the Survey's geologic folios do not reach all Avho^ might profit by the facts they set forth. The price asked for these publications is only nominal; the real difficulty is that of advertising our output. Recognizing the possibility of in- creasing our usefulness by wider publicity, I pledge my- self to a special effort to reach the mining man, however distant from the .great centers he may be. Perhaps the Survey has nowhere better improved its opportunity to aid the mining industry than in Alaska. The literature on .Alaska of A'alue to the mining man is almost wholly composed of Survey publications; yet the explora- tion work represented by these reports and maps has in- volved an expenditure of less than half a million dollars, or only one-half of one per cent, of the gold output for the same period. Few taxes are so light as this, especially when we consider also that the work done by the government geologist covers also the coal, copper and other resources of that district, and- that the benefits Avill continue through a term of years. Reference has already been made to the importance of reliable statistics regarding the mining industry. At the time of the organization of the Geological Survey the coun- i ry possessed no adequate knowledge of the status of min- ing, although this is one of the groat primary industries based upon natural resources* Advantage was at once 144 PROCEEDINGS AMERICAN MINING CONGRESS taken of the new organization, and the systematic statis- tical study of the mining industry under the tenth census was entrusted to Director King. I refer to this because in the successful issue of the work under these auspices can be discerned the correct policy for this important work. Mr. King's plan of utilizing for statistical work the services of those most closely in touch with th'e mines deserves con- tinuance, and in view of our recent progress along this same line I assure you that there is within our reach the possi- bility of much greater usefulness to your industry. The scope of the Survey's statistical work, like that of all other of its investigations, has been limited by the ap- propriation available; increase that, and more and more can be done in the matter of keeping the country informed as to the phenomenal development in the technology of the mining industry, as well as the no less marked increase in production. I need only to suggest to you the inherent connection existing between an adequate and exact knowl dege of any industry and its future development. It is only by observing, recording, and publishing each advance in the utilization of these mineral resources that true progress will be insured; and here, again, it is to be noted that to se- cure the best results there must be the closest relations between geologist and statistician; best of all is it when the investigator can justly claim both titles. Without full in- formation regarding the latest development in mining, met- allurgical, or milling practice, the geologist-explorer cannot intelligently conduct the work entrusted to him; and on the other hand, without a quantitative knowledge of the varied contents of Nature's mineral storehouse the student of sta- tistics cannot appreciate the bearing of the data he collects. "The record of the Geological Survey in mining geology warrants the hope of greater development in the field it has occupied during these years. Let me again cite the disin- terested testimony of those unconnected with the organiza- tion. A leading mining journal has within a few years stated that in no other country "has economic geology been applied to the development of industry with such beneficent results as in the United States, and no. (other) geological survey has contributed so much to the practical application of the science of geology to mining operations." Not only in this country, but abroad, the United States Geological Survey is regarded as in reality performing the work of a mining bureau by reason of its activity in fos- tering the development of the niineral resources of the coun- try. GEOLOGICAL SURVEY WORK 145 indeed, foreign engineers are apt to hold up our sur- vey as a model for the organization of a mining bureau. Only last night I was reading such a comment from one, prominent in the mining development of India. Last year the Canadian Mining Review, in an editorial, pointed to the successful contributions to the mining indus- try made by our Federal Survey as the strongest argument against the continuance of the independent existence in Canada of a Geological Survey and a Mines Branch, with the resultant duplication of endeavor involving greater ex- pense and less efficiency. The effort should be, not only to expand the work, but also to seek a logical correlation of all the various branches of industry and of research that will benefit your industry, for logical correlation means economy. I must not lemve the subject of mining geology without a reference to one of the greater possibilities for increasing the efficiency of the Geological Survey. Legislative author- ity should be secured for a certain amount of investigation in foreign countries of ore deposits, together with mining conditions and methods. Several of the Survey's mining 1 geologists, from time to time, while on leave of absence, have been engaged by foreign corporations to report upon properties in. South Africa, Australia and South America, and the extent to which the Survey has benefited by reason of their foreign service is keenly appreciated. The statement of official publications planned by the first Director of the Geological Survey, twenty-eight years ago, indicates the value which he attached to investigations , into the technology of the mineral industry, even to the matter of testing the relative cost and efficiency of different types of mining and milling machinery. Little, however, was done along these lines until, under Director Walcott, the Survey took up the fuer-testing work, which has reached so successful SL development under the recently organized Technologic branch of the Survey. The chief of that branch yesterday spoke to you on the need of conserving our min- eral resources, and I need add little to his argument for in- creasing our work for the better utilization of the country's fuels and the prevention of waste. The statistician in charge of the collection of our mineral statistics placed before you the facts bearing upon the life of our fuel supply. Our fathers were fond of referring to "the all but exhaustless beds of anthracite," and even now it already appears that our children may speak of "the all but exhausted beds of anthracite." 146 PROCEEDINGS AMERICAN MINING CONGRESS Again, I wish to call your attention to the complexity of the mineral industry of today. The interdependence .of the one mineral product upon many others makes the miner of all men dependent upon many factors outside his own mine. Waste of our supply of wood, water, and mineral fuels will hasten the day when certain ore deposits can no longer be mined at a profit. Hence, we count upon y< mi- mine owners for hearty support in the work that the Forest Service and the Geological Survey are doing in the conser- vation of the natural resources of the nation. At the El Paso session of your congress the chief geol- ogist of the Survey enumerated certain apparent needs of the mining industry for meeting, which insufficient provis- ion had been made by the federal government. The argu- ments clearly set forth at that time I will not repeat, yet it is worthy of note that a full compliance* with the demand for free assays and for free advice, both as regards mineral properties and mining technology, would be of the nature of an expansion of work already undertaken by the Survey, One distinction, however, must be made between what may be asked and what can be granted by the I'Yderal Geo- logical Survey. I refer to the legal restrictions whereby "the Director and members of the Geological Survey shall have no personal or private interests in the lands or min- eral wealth of the region under survey, and shall execute no surveys or examinations for private parties or corpora- tions." This law may bethought to restrict somewhat our activity, yet it surely adds to the value of our results. In- creased appropriations would enable us to meet these spe- cific needs, although the assays and other examinations made by the Geological Survey should be only for new finds-,, or for new methods, and the results should be promptly published for the information and benefit of the public, rather than of the individual. In a word, the work of the Survey, geologist, engineer, statistician and chemist is planned not to encroach upon that of the mining engineer or the assay er in private practice, but it is to be basal in character, and of a nature to assist these professional men as well as the prospector and the mine owner. I am not unmindful of what your industry has suffered at the hands of the unscrupulous, who masquerade under the title of ex- pert, and against these the Federal Survey is ready to join with your Mining Congress in the protection of both pros- pector and investor. More and more is our organization taking upon itself work of this kind, which is always cate and often thankless, GEOLOGICAL SURVEY WORK 147 It may be well to note that the Geological Survey is not charged Avith the enforcement of the law, but is rather a bureau of information; yet as such, it is no less our duty to assist in law enforcement, especially in all that relates to the classification of the public lauds. At the time of the in- auguration of the work of the Geological Survey, the clas- sification intended by Congress was believed to be general in character, and such as would be expressed upon maps issued for the general information of the people. The pres- ent interpretation is that the classification should be more definite, and, therefore, during the past season the Survey has been actively engaged in the classification and valua- tion of the coal land of the public domain. Increased de- mands are also being made upon our mining geologists for assistance in the determination of the mineral or non-min- eral character of land of which title from the government is sought. In all this work our sole purpose is to determine the truth of the issue and thus to protect the interests of the public. Our purpose is to assist the legitimate miner by opposing his worst enemies, the land grabber and the unscrupulous promoter of wildcat schemes, and in this we know that we have the support of the men who really rep- resent the mining industry. At this time I might mention such instances as that of the Survey report on Tonopah. The first report of Tonopah it furnished was rather a knock- out blow to wildcat schemes, and yet we believe has worked for good to the benefit of the industry of that particular section. President Richards has outlined definite recommenda- tions for tl;e further extension of federal work in aid of the industry you represent. With full faith in the trained men who constitute its working corps, I promise, in behalf of the Geological Survey, that our possibilities in your service will be limited only by the appropriations which your rep- resentatives in Congress may entrust to us. In the Survey's effort to serve the mining industry, I recognize, then, no lim- itation beyond- those set down by congressional enactment, and I w r ill gladly join with you in the effort to make such enactment more truly fit your real needs. Under what fed- eral auspices the mining work should be conducted is not so important a consideration, to my mind, as that the work should be done and done w^ell. All that has been accom- plished thus far has been under the auspices of the United States Geological Survey, and its predecessors, and I men- tion this fact as a token of how we have administered our trust. Enlarge our appropriations and we will continue to 148 PROCEEDINGS AMERICAN MINING CONGRESS make good along every line of investigation that is en- trusted to us. If changes in organization or in name be- come necessary, there will be no hesitation in making such changes, nor with co-operating with any other agency that may share with us the work. I repeat, it is the work itself that is of prime importance. In conclusion, the lines along which 1 propose to have the United States Geological Survey advance to a position of greater usefulness, in behalf of the mining industry of the country, are these: First The fuller recognition of its duty in the matter of the classification of tile mineral lands of the public do- main. Second The rapid extension of systematic field study of all mineral resources, so that geological exploration may keep in 'advance of economic development. Third The further development of the Survey as a source of authoritative and disinterested information for the benefit of the prospector or the land owner. Fourth The broadening and improvement of the methods of collecting mineral statistics, with the purpose of securing more accurate returns and of expediting their com- pilation and publication. Fifth The investigation of processes relating to the mining and later treatment of fuels, ores, and other mineral products, but only in so far as such investigation may be fundamental to the best utilization of the nation's mineral wealth. Sixth The preparation of reports that will better meet the needs of the mining industry and the distribution of these publications more promptly and -effectually. These are not radical departures, as the Survey is at present making progress along each of these lines of public service, and we mean to continue that progress ; yet the rate of our advance, and that is what you are most interested in, will be largely governed by the size of the appropriations, and it can be greatly accelerated by the more generous sup- port which you are able to ask for us. International Mining^Exposition, Madison Square Garden, New York BY WILLIAM M. PORTER, NEW YORK. The idea of holding a large mining exposition as an educational measure for the benefit of the industry, in Mad- ison Square Garden, New York, on internationaL lines, in which there will be hearty co-operation of all mining inter- ests, has, it is safe to say, the approval of every member of this Congress, and mining men generally. In contemplation of the high aim to be attained we therefore respectfully invite the Government of the United States, all foreign governments, the mining states and ter- ritories, the American Mining Congress, all miners' asso- ciations, the manufacturers and mine owners to assemble and demonstrate their respective mineral and manufac- tured products at this, the first International Mining Expo- sition in America. We realized from the beginning that in order to secure public confidence and achieve success, an undertaking of this nature and magnitude should be conducted on a broad scope and, to the entire exclusion of all spurious properties, as well as the exclusion of the sale of mining stocks. In the effort to educate the public in this regard it is apparent that it is impossible to take all who may be inter- ested to where there are mines in operation, but it is most feasible to demonstrate the mining business in that city where there is the greatest concentration of population and capital, which, of course, is New York City. Experience has taught us that the eastern public will become enthusiastic and liberally patronize an exposition if made attractive and instructive by planning it upon an elaborate scale and by presenting something new; there- fore, as the possibilities are unlimited in this industry their every desire can be highly gratified. To this end we wish to illustrate in a practical manner every phase of mining, mine construction, mine operation both lode and placer in the latter the use of the pan, cradle, dredge, giants and sluices; also reduction of ores, metal ex- traction by various processes in short, mining methods throughout. This, we wish to accomplish by the oper- ation of machinery as far as possible. There is no mechanical exhibit so attractive to the public as an active one. A silent machine does not teach anything, and 150 PROCEEDINGS AMERICAN MINING CONGRESS is, therefore, most uninteresting. We have decided to make all exhibits throughout this exposition active \vliere pos- sible. In mineral exhibits a similar idea will prevail. There is not a more unattractive display to the novice than min- eral with its techncal title on printed label, but when the same is placed under a magnifying glass and its component parts clearly explained, then information is imparted which makes a lasting impression. A mineral exhibit without demonstration does not appeal to the public. Many stairs that will have exhibits have mining schools that should be willing to send some of their advanced pupils to instruct the public pertaining to the mineral. Mine owners in showing the product of their property will naturally be expected to have an engineer to answer all inquiries. Their object will be to interest investors, which they can more easily accomplish by displaying a certificate from the State Geologist or other officer, setting forth that the property as exhibited is bona tide; also give assay value of the ore of the same. This will prove to be a very im- portant part of their exhibit, and will be necessary in pro- curing space, as it. is due this industry and the public that we insist on compliance with this measure, and we expect a most hearty co-operation from all sources. We have classi- fied the exhibits in seven different departments to establish system and avoid confusion, and they must be assigned to their proper departments only, which are as follows: No. 1. Department of Machinery. No. 2. Department of United States (iovernment and Foreign Countries. -No. 3. Department of State Exhibits. No. 4. Department of Metal Mining. No. 5. Department of Miscellaneous Mineral. No. 6. Department of Mining Camps of Different Nations. No. 7. -Department of Precious Stones, Mineral Jew- elry, Lapidary Work, Etc. The last named will be very interesting, as it embodies the cutting and polishing of diamonds and other gems. The mining camps of different nations, showing the ex- traction of metal in their crude ways, also their novel mode of transporting ore, can be made a feature of the exposition. This could include a prospector's camp, burro and grub- stake outfit. We are asking each foreign country to include a mining camp as a part of its exhibit. A commodious hall will be utilized for the accommodation of this department. INTERNATIONAL MINING EXPOSITION 151 Plans are well formulated for securing a United States Government exhibit, which, if successful, will influence many foreign countries to participate, as well as western states and territories. A great deal of attention is being given to the miners- rock drilling contest, as it accords with our idea of practical demonstration. We believe it will be successful to that end, and novel and attractive in the extreme to eastern peo- ple. Liberal cash prizes will be offered to the best teams having records to induce them to enter these contests, and we desire to get in communication with such. We are very desirous of securing an assayer's labora- tory. This could be supplied by a school of mines of some state, and would make a good exhibit. It is our earnest endeavor to have a representation of a complete mine installed, the same to be in operation. The facilities in the Garden can be easily adapted to this purpose by constructing a wooden shaft from the top gal- lery to the main floor, a distance of about seventy feet, and a tunnel leading from the bottom of the shaft down the in- cline to the basement, where a drill could be in operation. Several different levels could be shown in this shaft, and a cage could be operated by an electric motor. Such a dem- onstration, it is apparent to all mining men, would be of the utmost importance to this industry, and one of the strongest educational features that could be presented to the public. We would consider it a A^ery great favor to have dona- tions of rock for the drilling contests, also of ore for demon- strating the machinery. We have accommodations for han- dling large quantities of it, which will be necessary, con- sidering the four weeks' duration of the exposition. We, of course, will pay freight. There is a great deal of wall space in the Garden, which could be utilized to good advantage to show scenic paintings of different mining sections throughout the West. We will donate the space, but the district using it must stand the expense of procuring the painting. While we have the largest and most complete facilities for holding this exposition to be obtained in America, it should be understood that we are striving to place the min- ing industry of the world in one building, and that neces- sarily there are many applicants for each space. This ex- position will cost thousands of dollars. We are not seeking assistance in bearing this expense, other than general co- operation with us. There is not a mining state which can- 152 PROCEEDINGS AMERICAN MINING CONGRESS not afford an exhibit here, for it would be most inexpensive, greatly beneficial and well worth the effort. Now, good people of this wonderfully promising indus- try, the time and tide have turned; the opportunity is at hand. Let us take advantage of it and unite in this great effort and clearly and practically demonstrate that mining is a business by business men and not a gamble by gam- blers. The Protection of Mineral Lands From Agricultural, Timber Entry, or Other Patent BY LEAVfS K. AITIT'RY, SAN FRANCISCO, CALIFORNIA. As our Western country develops, it is a source of con- siderable comment among mining men that our supposed mineral area is noticeably decreasing, principally within the past few years. The prospector of today often finds his way barred by a barbed wire fence, and he frequently ob- serves that the latter encloses undoubted mineral terri- tory, and which, it may be found, is being held without re- gard for tlie present laws, or the rights of the miner. The rush for land among all classes has placed the pioneer miner in such a position that it is imperative on his part to at once place himself on the defensive, as against the agricultural entrymen, the timber grabber, the homesteader and the stockmen and scripper. The land laws of our country are either a farce or the enforcement of them so feeble that the miner always re- ceives the worst end of the deal. The cards are stacked against him, and unless he bestirs himself, and seeks other enactments than our present land laws in the near future, it will be too late for him to secure recognition of his rights, I believe it w r as the original intention of our law makers that in order to develop our western country, which at that time was supposedly rich in mineral, to so frame the laws that every encouragement would be extended to the miner. How well these laws have been carried out is evidenced by the millions of acres of mineral land which have found their way into the hands of a comparatively few individuals and corporations, who now hold the land for other uses. This fraudulent acquirement has been participated in by some of the most prominent men in the country, and some of whom are honored by seats in Congress. The story of the rotten- ness and corruption in the means of acquiring these lands is too lengthy for submission. Like Hamlet, I might "a tale unfold," but in the telling of it, the entire time of this con- vention and more would be consumed. You have all been informed many times, I suppose, of the methods which have prevailed in the theft of our mineral lands, and I will not burden you with the repetition of the story. To many, how- ever, the methods employed by the timber thieves would not be more wonderful than was Kelly's impression at his first sight of Niagara. 154 PROCEEDINGS AMERICAN MINING CONGRESS He wa,s looking' at the Horseshoe Falls when liis friend (VHara said: "Ain't that wondherful, Kelly?" "What's; wondherfnl?" says Kelly. "Why man, to see all that wather come thunderin 1 over thini rocks," said O'Hara. "I don't see as it's wondherfnl," says Kelly. "What, the hell is there to hindher it from coming over?" Now what is there to hinder the land grabber from ac- quiring numberless thousands of acres of our mineral lands which have as yet been left untouched. Shall we attempt to assert ourselves, and ask Congress to protect us? I be- lieve-that we should, and I further believe 1 that a solution of the. difficulty will be found in the enactment of laws which have been in force for many years in our sister Re- public, of Mexico, and which have proven effective in the protection of mineral lands. The substance of the proposed law is that on all United States land patents which may be issued by the President, on lands classified as other than mineral, that the Govern- ment shall reserve the mineral rights, and after complying with the necessary requirements, a separate patent for ihc mineral rights shall be issued to the miner. From much personal observation, I believe that such a. law would be just to ail parties concerned, and would not only meet with general approval, but would settle a vexed question. The Who Man Stakes Claims Everywhere: Does He Assist or Retard the Development of the Mining Industry? BY RANDALL H. KEMP, SPOKANE, WASHINGTON. This is a question that can be viewed from two stand- points. Put in different language, does the man who gob- bles up an entire district and endeavors to appropriate the whole country benefit that section or is he a detriment? In my experience of a little over one-third of a century, cov- ering a great portion of the country from Colorado to Alaska, and always being identified with the industry of mining, it could not be otherwise than that I would take some note of the matters which come under this head. In this connection I wish to state that the wholesale patenting of both quartz and placer claims in many instances is also a detriment to the mining industry, and if I am allowed, I shall dwell on this evil before I have finished. By way of preface, permit me to pay a slight tribute to our American prospector. It is to this optomistic person- age that we owe our greatest debt today. The prospector, with the radiant eyes of faith ventured into the unknown wilds of the boundless west and while undergoing the great- est of privations and braving all the dangers that could beset an individual or class of persons, proved to the world that metals, both precious and base, were in evidence in- pay- ing quantities. Following the prospector came the hus- bandman, the merchant, manufacturer, artizan and the hundreds of others who live and thrive in new sections of our country, and I may add, ladies and gentlemen, that were it not for the prospector we would not be here at this time. Only in rare instances, as far as my knowledge goes, did the pioneer prospector become so greedy that he endeav- ored to corral everything that was in sight to the detriment of those who came later and wished for a share in nature's gifts. The exception, the man who staked everywhere, was a detriment to the country and a drawback to progress. Several instances I can cite that have come under my observation. When the placer fields of the Coeur d'Alene were found in the fall of 1873, a horde of agricultural people from a nearby section swarmed into the country and planted their stakes all over the country. Hundreds of claims were located by virtue of power of attorney. These claims .were twenty acres in extent, and when it came to 15G PROCEEDINGS AMERICAN MINING CONGRESS voting at miners' meetings, these farmer-minors were in the majority, and to this day the full merits of the placers of the North side of the Coeur d'Alene are practically un- known. This would not be the case were the ownership more evenly divided and the claims had been smaller, which would have caused them to be more easily developed, as every experienced person knows. During my sojourn in British Columbia, the evil of one man acquiring so much mineral land became such a nui- sance that the associated Boards of Trade took the matter up and memorialized the Provincial Parliament to enact laws to overcome this drawback to the country's advance- ment. One of the members of this organization informed me that he knew of one man who had sixty claims staked in one district and practically kept out every one else. In Alaska, also, I have seen the disadvantages of this system. I knew of one prospector who covered two huge mountains with locations and when another prospector would wander into that district he would be shown a map of the first party's holdings and be warned to keep away. In Idaho, I understand, that the entire Seven Devils country was located and patented by a Helena, Montana, association at least a quarter of a century ago, and it is well known that that region so prolific in copper values has been dormant ever since. Doubtless there is no one within sound of my voice, who has had experience in the field, but knows of numerous, similar instances of where the r mining industry has been retarded and the country 7 held back as outlined above. As a rule the prospector is of a generous nature; when he dives into the wilderness and makes a notable find, he is willing to share with those who come later. In fact he welcomes the crowd as he is aware that in numbers there is strength, and the more that become located around him the sooner his holdings will have a value. Besides this the others aid in constructing trails, roads and other improve- ments which tend to make all property more valuable. On the other hand, the man who desires to hog the whole coun- try and gives every one to understand that their room is better than their company, rarely, if ever, accomplishes anything and in the end they often lie down in paupers' graves all on account of the desire to keep everything to themeslves. Not only does the man who stakes everywhere become a detriment to the mining industry, but so is the man who shingles the country with patents covering both quartz and placer mines as well. To prove this assertion I will cite THE MAN WHO STAKES CLAIMS EVERYWHERE 157 one instance that came under my observation while resid- ing in Montana. An old prospector ventured into an aban- doned district that many years before had been quite a pro- ducer of placer gold. The shallow diggings which could only be worked profitably in the early days had become ex- hausted and the hundreds of miners became scattered far and wide. This prospector in his search for the yellow metal chanced on some ground that had been overlooked in the days gone by that would pay well to work by primitive methods. To thoroughly test the ground, he packed to the nearest stream a quantity of the gravel on his ca.yuse and ascertained that he had made quite a strike. He then laboriously constructed a ditch to bring water to the claim, whipsawed lumber and was in readiness to reap the reward of his labor. When lo, and behold, along comes a Helena merchant who coolly informs him that he had obtained a patent to 160 acres there a number of years before, and ye old prospector could get off. It is well to add to this inci- dent that all monuments were obliterated and the old pros- pector could find no evidence that he was encroaching on another person's rights. To my mind there is no doubt but that the man who stakes claims everywhere, and the man who plasters the country with patents should be classed as following the dog in the manger policy according to the ancient fable, and I would strongly urge that this Congress use every hon- est endeavor to have, if not stronger laws enacted, to rec- ommend that 'those already on our statute books be more rigidly enforced. Sliding Scale Royalty BY LOUIS D. HUNTOON, NEW HAVEN, CONNECTICUT. In visiting a district for the first time, tlie attention of the mining engineer is always directed to the methods of mining and milling which have been developed in the dis- trict for the class of ore it contains, and especially so if the methods are not in use elsewhere. The lead-zinc deposits of Sou ih western Missouri pre- sent many interesting features. The leasing and sub-leas- ing of lands on a flat royalty is the special feature with f which this paper is concerned. The prerequisite of mining and milling in a district is securing the land and mineral rights. In Southwest Mis- souri this is accomplished by buying outright for leasing. The leases are of three kinds: Leasing for development only; leasing for development and mining, and sub-leasing. In the first class, leasing for development only, the lessor guarantees to do more or less work testing the prop- erty with drill holes, and possibly, the sinking of a shaft. At the completion of this work the lessor generally sells or sub-leases. The second class, leasing for development and mining, the lessor agrees to test and develop the property and then mine and mill the ore. The lessor .pays a royalty on the gross returns of from ten to twenty per cent., but guaran- tees no minimum royalty. In sub-leasing, the sub-lessor guarantees to operate the property and pays to the first lessor, five per cent, or ten per cent, more royalty than the original lease calls for. The drilling of a few holes costs the first lessor about $500, and, if he can then sub-lease without further expenditure, he is quite certain of very lucrative returns on his investment. The cost of sinking a shaft is about $2,000 to $3,000. With this additional cost it is only necessary for the sub-lessor to ship about $30,000 of concentrates to pay all costs of the first lessor. After this shipment the royalties paid the les- sor on gross returns or profits, make an original lease very valuable, providing the property is operated. This places upon the property ;i very heavy burden to carry and prevents the working of the lower grade 1 of ores. These ores are lost to the market and the royalties are lost to the land owner. If the mill operates at a loss the first lessor and the land owner continue to receive their income, increasing the loss to the operator. SLIDING SCALE ROYALTY 159 The above forms of least* are liable to, and do in some cases to my knowledge, work an injustice to all parties and to the district as a whole. The land owner is guaranteed the prospecting and continued working of the property, but no minimum royalty. He is assured of no definite return from his land. His land can, under these conditions, be held for a long period at a nominal expense to the lessor. The oper- ating lessor in turn is not protected when the grade of dirt is low, or the selling price of concentrates is low. When gross returns on concentrates just equals the cost of pro- duction, the operating lessor must draw on his reserve cap- ital to pay royalty. The custom of the camp, I understand,' is for the company operating to hold little or no reserve in the treasury for amortization or the securing of new lands, all surplus earnings being paid as weekly or monthly divi- dends. This failure to keep the capital of the company intact, and a fiat royalty on gross returns, also has a tendency to work a hardship to the company and the dis- trict as a whole, especially so when the ore is of a low grade. Mines and mills must close down when working on a los- ing basis with no money in the treasury. If these mines and mills were relieved from royalty on this low-grade ore, they could afford to prospect and in all probability Avould en- counter rich ore bodies and again pay good royalties. The land owner, the company and the district as a whole, will be enriched by the mining of this second ore body. Interesting figures are developed when the present royalty system is carefully investigated. When the dirt is low grade, or the price of concentrates is low, the greater part, if not all of the net earnings, or more, is paid to the land owner. When the mine is working high grade ore and making large net earnings, only a small percentage of the net earnings is paid to the land owner. These conditions are illustrated in Table I., the first line showing a loss to the operator, usually resulting in abandoning of the prop- erty. In Table V., the same grade of dirt shows a net in- come to both operator and land owner. Table II. shows the cash distributions of net earnings with varying recoveries and varying selling prices. Table III. shows the percentage distribution of net earnings. Comparing Tables I., II., and III., we find in Table I. that dirt giving a recovery of four per cent., with concentrates at f 40, is worked at net earn- ings of ten cents per ton of dirt. The royalty on this is six- teen cents per ton, leaving a net income loss to the operator of six cents per ton. Conditions like this prevent explora- tion and further profits to both land owner and lessees. PROCEEDINGS AMERICAN MINING CONGRESS Recovery % Tons Gross Earnings Cost Mn. Mill TABLE 1 Net Earnings Royalty 10% Net Income %of Net Earn's Koyalty Opet'r $60 60% 4 40 $1,600 $1.500 $ 100 $160 loss loss 5 50 2,000 1,500 500 200 300 40% Mr; 7% 75 3,000 1,500 1,500 300 l.L'OII 20% 80% 10 100 4,000 1,500 2,500 400 2,100 16% 84. 15 150 6,000 1,500 4,500 600 3,900 13.3% cS 6 . 7 20 200 ' 8,000 1,500 6,500 goo 5,700 12.3% S7.7 per 02 Distributions of net earnings on 1,000 tons of ton. Mining and Milling at $1.50. dirt ; concent rates at $40 TABLE II. Recovery. 7^% , , 10% N R. O. R. 0. $300 $1,200 $400 $2,100 375 1,875 500 3,000 470 2,730 600 3,900 , 15% x R. 0. $600 $3,900 750 5,250 90.0 6,600 , ^20% , R. 0. $ 800 $5,700 1,000 7,500 1,200 i),300 * i 4% , . R. O. R. $60 $40 $160 loss $200 $ 300 50 200 300 250 750 60 240 660 300 1,200 Cash distribution of net earnings on 1,000 tons of dirt. Royalty 10%. Selling price of concentrates varying from $40 to $60. R-Royalty, O-Opera- tors net income. M, TABLE III. NfS Recovery. O. J.5 Percentage distribution of net earnings on 1,000 tons of dirt. Royalty 10%. Selling price of concentrates varying from $40 to $60. R-Royalty O-Operators net income. $40 50 60 R 40% 26.7 4% , O. 60% loss 60% 73.3 / 5% , R. 0. 40% 60% 25 75 20 80 , 7i x 20 16.6 14.6 80 83.4 85.4 , 10% , , R. O. 16 84 14.3 85.7 13.3 86.7 15% R. O. 13.3 86, 12.5 87, 12.0 88 locn-o J , 2( R. 12.5 11.7 11.5 TABLE IV. Royalty in dollars payable per ton with concentrates selling at or above D, $80.00 $70.00 $60.00 $50.00 $40.00 $30. Off 20 24.00 21.00 18.00 15.00 12.00 9.00 19 22.73 19.83 17.00 14.11 11.29 8.40 18 21.47 18.66 16.00 13.24 10.59 7.80 17 20.21 17.50 15.00 12.35 9.88 7.20 16 18.94 16.33 14.00 11.47 9.18 6.60 15 17.68 15.16 13.00 10.59 8.47 6.00 14 16.42 14.00 12.00 9.71 7.76 5.40 13 15.15 12.83 11.00 8.82 7.06 4.80 1ST- 13.89 11.66 10.00 7.94 6.35 4.20 11 12.63 10.50 9.00 7.06 5.65 3.60 10 11.36 9.33 8.00 6.18 4.94 10% 3.00 9 10.10 8.16 7.00 10.5% 5.29 10.6% 4.24 2.40 8 11% 8.84 10% 7.00 10% 6.00 4.41 3.53 1.80 7 9.4% 7.57 5.83 5.00 3.53 . 2.82 1.20 6 6.31 4.66 4.00 2.65 2.12 .60 5 5.05 3.50 3.00 1.76 1.41 .00 4 3.78 2.33 2.00 .88 .71 3 2.52 1.16 1.00 - .00 .00 2 1.26 .00 .00 1 .00 Royalty on sliding basis dependent- on per cent, of mineral recovered and price at which concentrates sell. Maximum royalty to be 30% for 20% recovery. The zero royalty is where the cost of operating equals the selling price of concentrates. Tons Dirt 1,000 1,000 1,000 1,000 1,000' 1,000 6,000 -Concentrates at $40 ^ -Recovery- TABLE V. , Present System-^ Royalty Operators 10% $ 160 200 .300 400 600 800 52,460 net income loss $60 300 1,200 2,100 3,900 5,700 $13,140 f System Suggested- Sliding Operators Royalty '28.40 70.50 211.50 494.00 1.270.50 2,400.00 $4,474.90 Comparison of present Royalty system with sliding Scale Royalty. net income 71.60 429.50 1,288.50 2,006.00 3,229.50 4,100.00 $11,125.10 SLIDING SCALE ROYALTY 161 We also find iu Table I. that dirt giving a recovery of five per cent., with concentrates at $40, is worked at net earnings of fifty cents per ton. The royalty on this is forty per cent, of the net earnings, leaving the operator a net in- come of thirty cents, which is less than sufficient to pay off the original investment to the stockholders. Further consideration of Table I. shows that dirt giving a recovery of fifteen per cent., with concentrates at $40, is worked at net earnings of $4.50 per ton of dirt. The royalty here is only thirteen per cent, of the net earnings, or sixty cents per ton, while the operator's net income is 86.7 per cent, of the net earnings, or $3.90 per ton. The operator here can well afford to pay a much higher royalty, if the royalty with the lower grades is reduced. By placing the royalty on a sliding scale as shown in Table IV., dependent upon the recovery and the selling- price of concentrates and with a guaranteed minimum roy- alty to the land owner, a more equal distribution of net earnings will be made ; the investor will run less risk in the return of capital invested; the lessor will receive greater royalties than at present with high grade dirt; and the en- tire district will be benefited by it being made possible to work these low grade ores, with the probability of encoun- tering more high grade deposit. The sliding royalty scale, given in Table No. IV, has been worked out by the plotting of a cost curve dependent upon the recovery and selling. price of concentrates. No royalty is allowed other than the yearly minimum, on the sale of concentrates, when the cost of production equals the gross earnings. The royalty increases regularly until it reaches a maximum of thirty per cent, on gross earnings for twenty per cent, recovery. Table No. 5 is a comparison of the two systems with concentrates at $40 per ton, showing the more equal dis- tribution of profits. In this Table, it will be noted that un- der the present system, with concentrates at $40 per ton, and dirt giving a recovery of four per cent, to twenty per cent., the average, royalty is forty-one cents per ton of dirt. In the system suggested, the average royalty is seventy - lour and one-half cents per ton of dirt. The placing of the royalty on a sliding scale, dependent upon the selling price of concentrates and the percentage recovered from the dirt, I consider equitable to both parties and the district as a whole. The sliding scale royalties given in Tables IV. and V. were computed with mining and milling costs at $1.50 per ton of dirt. Mining Engineering Education in the United States BY VICTOR C. ALDERSON, PRESIDENT OF THE COLORADO SCHOOL OF MINES. The Present Status. Less than five years ago a celebrated Professor of Min- ing Engineering, in one of the famous mining schools of this country, said to the writer that all the forms of engineer- ing education in the United States, mining engineering was the least progressive; that, while instruction in mechanical, electrical, and civil engineering was advancing rapidly, through advanced methods of instruction and well equipped laboratories all over the country, and new courses were being introduced like chemical, telephone, and fire protec- tion engineering, mining engineering was lagging behind; that, while great private schools, like Columbia, Harvard and Massachusetts Institute of Technology were flourish- ing, and while the state mining schools of Minnesota, Mich- igan, Colorado, Missouri and California were doing excel- lent work, yet in many states no effort whatever was made to provide instruction in mining, in many others there was only a half-hearted attempt, and, on the whole, mining education was below the standard set by other kinds of engineering education. A glance at the facts will help us to analyze the case. Departments of mining are now in operation at the follow- ing private institutions: Massachusetts Institute of Technology, Boston, Massa- chusetts. Columbia University, New York, N. Y. Harvard University, Cambridge, Mass. Yale University, New Haven, Conn. Lehigh University, South Bethlehem, Pa. Case School of Applied Science, Cleveland. Ohio. Lafayette College, Easton, Pa. Northwestern University, Evanston, 111. Departments of mining are in operation at the follow- ing institutions under state control: Alabama Polytechnic Institute, Auburn, Ala. West Virginia University, Morgantown, W. Va. Georgia School of Technology, Atlanta, Ga. Ohio State University, Columbus, Ohio. University of Maine, Orono, Me. Washington Agricultural College and Schoo- of Science, Pullman, Wash. MINING ENGINEERING EDUCATION 163 University of Oregon, Eugene, Ore. University of California, Berkeley, .Calif. University of Nevada, Reno, Nev. University of Utah, Salt Lake City, Utah. University of Wyoming, Laramie, Wyo. University of Texas, Austin, Texas. University of Minnesota, Minneapolis, Minn. University of Washington, Seattle, W^ash. State College of Kentucky, Lexington, Ky. University of North Carolina, Chapel Hill, N. C. University of Virginia, Charlottesville, Va. University of Alabama, University, Ala. University of Arkansas, Fayetteville, Ark. University of Iowa, Iowa City, Iowa. State College of Agriculture and Mechanic Arts, Ames, Iowa. University of North Dakota, Grand Forks, N. D. University of Kansas, Lawrence, Kas. University of Oklahoma, Norman, Okla. University of Idaho, Moscow, Idaho. University of Tennessee, Knoxville, Tenn. University of Arizona, Tucson, Ariz. Pennsylvania State College, State College, Pa. University of Nebraska, Lincoln, Neb. Western University of Pennsylvania, Allegheny, Pa. Separate schools of mining are maintained as follows: New Mexico School of Mines, Socorro, N. M. South Dakota School of Mines, Rapid City, S. D. Colorado School of Mines, Golden, Colo. Montana School of Mines, Butte, Mont. Missouri School of Mines, Rolla, Mo. Michigan School of Mines, Houghton, Mich. Secondary Technical School for Practical Miners, Platteville, W 7 is. In the following states there is no attempt, as far as the writer knows, to teach mining or metallurgy: Louisi- ana, Mississippi, Indiana, South Carolina, Florida, Rhode Island, Vermont, New Hampshire, Delaware, Maryland an0^ ore, I attended a meeting of operators who controlled more than half the ore production of this district and a contract good for one year to deliver pre to the smelters at $35 per ton base price could have been TARIFF ON ZINC ORES 221 effected. The smelters spurned the offer. Again in April, 1906, an offer was actually made to the smelters and a con- tract would have been signed to sell ore based upon the quoted St. Louis price for metal. This proposition contem- plated a graduated scale of prices, the extremes of which meant $ 40 ore when spelter was $5 and $52 ore when spelter was $7. This offer was rejected. Events since that time have abundantly proved from the smelter's standpoint, the wisdom of such a scale of prices, had it been accepted by them. As bearing upon the question of supply and demand in the zinc ore market of the world for the near future it may not be unprofitable to cast about and see what the probable world's supply of zinc ore may be. First of all the so-called Broken Hill Zinc field, of New South Wales, Australia, contains stupendous zinc ore de- posits in the heretofore abandoned tailings of the silver-lead mines. In November, 1905, was organized "The Zinc Corpora- tion, Ltd.," with offices at Melbourne, Victoria, and a capital stock of $2,500,000, whose object was to purchase and treat these tailings to recover the zinc, lead and silver contents. This syndicate then had secured control of almost 6 million tons of tailings, averaging 17 to 22$ zinc; 6 to 7 oz. of silver and 6 to 10$ lead to the ton. The holdings of the syndicate were then estimated to be in metallic contents:- 900,000 tons, of zinc; 22 millions ounces of silver; and 360,000 tons of lead; representing at that time at current market sales ai value of over 132 million dollars. The vast wilderness of Mid-Africa gives promise of producing large tonnage of zinc ores. Not far from the great Zambesi Falls zinc is quarried out of the kopjes and calcined on the spot; it is 50 to 60 per cent, zinc and the cost of mining and sending the ore to Wales is $19.50 per ton; it costs $14.60 to reduce the ore to spelter; and there- fore $34 to make a ton of spelter. As the ore averages 50 per cent, metal the spelter cost was $68 per ton, when the London price was $130 per ton. Some time ago it was esti- mated that the mineral tonnage in sight was 750,000 tons. For the fiscal year ending June 30, 1906, free and dutia- ble zinc ores to the value of $813,000 (quantities not given by collectors of customs) were imported from Mexico: and for the year ending June 30, 1907, there were imported from the same country 66,500 tons of calamine, valued at $11.79 per ton and 23,000 tons of dutiable zinc ore valued at $14.75 per ton, making a total for the year of 89,500 tons of zinc 232 PROCEEiDINGS AMERICAN MINING CONGRESS ore, valued at the sum of over $1,123,000: an increase for the year of 1906-07 of over 38 per cent, over the value of the preceding year. Colorado for the year 1905 mined zinc ore which pro- duced four million seven hundred and seventy-five thousand dollars of spelter and in 1906 the spelter production was five million three hundred thousand dollars worth. Wisconsin in 1906 produced about forty thousand tons of zinc ores. It is well known that many new T fields are being devel- oped in the United States; that the domestic production of zinc ore is rapidly increasing; and that the annual output of the high grade Missouri mines is more than holding its own. Therefore, the conclusion is inevitable, that the total do- mestic production of zinc ore must soon supply the spelter requirements of the country. If we must have competition, then let us compete among ourselves, and not with those who are not of our blood and whose methods of life and ideas of government are far beneath our standards. In the first session of the 59th Congress, the Hon. C. M. Shartel introduced House Bill 3030, which was referred to the Committee on Ways and Means and ordered to be printed. The bill was introduced by request of the ore pro- ducers of this district and has never been reported by the committee. This bill possesses many good features and, if it were now law, would undoubtedly give the domestic zinc miners a fair modicum of protection. It provides for a specific duty of 1 cent per pound upon the zinc contained in all zinc-bear- ing ores. Section 2 provides : "That the term 'zinc-bearing ores' means all ores, whether crude, concentrated or otherwise, which contain zinc in any form or condition, either free or in combination, and in which the zinc is of more value than any other single component, irrespective of whether such ores are lead-bear- ing ores or not. Such value shall be determined as of the time and place of importation." The draughtsman of this bill is a gentleman long expe- rienced in the practice of tariff law and it may seem self- flattering for me to raise objections thereto. But we find the bogey of "component material of chief value" between lead and zinc expressly provided for in the above quoted section. The bill should be so drawn as to relieve us of such tribulation. The zinc ore and lead ore importers should not be rele- gated to the situation which existed prior to the McKinley act of 1890, between silver and lead ores. TARIFF ON ZINC ORES 233 Suppose the average stable price of lead ore to be per ton and that of zinc ore to be $45 per ton; and the specific duty on lead to be 1J cents per pound on the lead contents; and upon zinc to be 1 cent per pound on the zinc contents. It will be found that 1143 pounds of zinc ore exactly equals in value 857 pounds of lead ore. The duty on the zinc contents is $11.43 ( ; the duty on the lead contents is |12.85; a difference of $1.42i more for the lead contents. ~N.O' Mexican mine probably produces such ore; but what nature has failed to do artificial means may dor, if it should prove profitable to the importer to try it. I speak not of probability but possibility. While the mixing of ores for the purpose of securing favorable tariff duty may involve moral turpitude, it seems not to be a fraud against the gov- ernment. The treasury department many years ago (T. D. 9492) issued stringent regulations prohibiting the mixing of ores to raise the silver contents and thereby escape the duty on the component lead contents. Yet we find in one case (In re Chichester, 48 Fed. 281) the deliberate mixing of the ores from several mines, so as to give the ores a high content of silver, and to make the importation dutiable only on the lead contained, instead of on its gross weight as lead ore. Upon appeal to the board of general appraisers it was held that "there is nothing" in the law "to warrant a discrimina- tion against the importation of mixed ores. * * * There is no such * * * prohibition in regard to ores of any kind, and no such discrimination can be lawfully made, except after further legislation by Congress." The case was appealed to the Circuit Court of the United States, but the main question was left undecided. For a long time since then the mixing of ores still continued in reliance upon the opinion of the board. So with the fluctuating prices of lead and zinc ores, it might be profitable to import lead and zinc ores so mixed, and after importation by concentration to separate the two minerals at a low cost a^d market each at the appropriate smelter. The equitable procedure seems to be to cast to the winds the classification by component material of chief value and' impose the specific duty on the lead and on the zinc, con- tained in the same importation. Under such law, the lead smelter will import for the lead contents and the zinc smel- ter for the zinc contents. There will be no object for chi- canery; and protection is dispensed with an even hand to both lead and zinc producers of the United States. 234 PROCEEDINGS AMERICAN MINING CONGRESS I believe the bill should contain a specific repeal of par. 514, which places calamine (an ore of zinc) upon the free list; and should make 5t dutiable as a zinc ore. There would then no loophole for rrgument as to the implied repeal of that paragraph. Whether 1 cent per pound duty on the zinc contents of the ore is adequate protection is a question of perplexity. It may be assumed that the price of zinc ore and the con- sequent price of spelter may be put so high that the con- sumer may curtail in large part his use of the metal and use a substitute which may be procured at a less price. To this extent the demand for a specfic duty on zinc ore must be exercised with discretion. It is interesting, however, to note that $60 lead, 80 per cent standard, and $45 zinc, 60 per cent standard, sell for exactly the same price per pound of metallic contents. But during the years 1905 and 1906 4ind the nine months of 1907 the Joplin price of lead ore has averaged $71.04 and the price of zinc ore has averaged $45.51 per ton. The fact that the metallic lead has brought almost .89 of a cent per pound and that metallic zinc has brought a lit- tle more than f of a cent per pound, may be significant. Is the fact that lead ore has sold 20 per cent, higher than zinc ore due to the protective duty upon lead? Would zinc ore have sold higher had the law given adequate protection to it? The fair query then is, why, if for years the duty of li cents per pound on lead has proved satisfactory to the producer, smelter, and consumer of lead, is not the same rate equitable for zinc ore? Not including the production of New Jersey, we find that the domestic production of zinc ore for the year 1904 was 413,000 short tons; for 1905, 434,000 tons an increase of 5 per cent; and for 1906, 500,000 tons, an increase of 15 pei* cent. The importation of zinc ore for 1904 was an unknown quantity; in 1905 it was 41,000 tons, about 9i per cent, of the domestic production; and for 1906 it was 89,500 tons or 18 per cent, of the domestic production; and about 31J per cent, of the entire Missouri-Kansas output. In 1906 the imports of lead were about 16 per cent, of the domestic production. It is undeniable that with the rapid development of Mexico, the building of railroads, and the future discovery of mineral products, the United States will be more and more the outlet and market for these zinc ores. The extor* TARIFF ON ZINC ORES 235 tionate price of fuel in Mexico almost precludes the smelting of ores there. If the Mexican export of zinc ore in 1906 was over 31 per cent, of the production of this district, who can tell what it will be for 1907 or prophesy its magnitude in 1908 and succeeding years? How are we to know whether the vast product of Australia may not seek a market here? It behooves the zinc producer of the United States to guard well the future. Unless a tariff is demanded of Con- gress and secured which will be protection to the fullest extent, it may be a sorry day for the mine operator and the mine laborer too. The smelter has always been alert to his interests, for there is duty on all manufactured forms of zinc; zinc in blocks or pigs, is protected by a duty of 1J cents per pound ; in sheets, two cents per pound ; and even zinc "old and worn out, fit only to be remanufactured, one cent per pound." Even "articles or wares * * composed wholly or in part of * * * zinc * * , and whether partly or wholly manufactured," have a high protective wall around them of 45 per cent ad valorem. The paint schedule says that zinc oxide and white paint or pigment containing zinc, shall be dutiable at one cent per pound; when ground in oil 1J cents per pound: white sul- phide of zinc li cents per pound; and chloride of zinc and sulphate of zinc one cent per pound. The producer of the raw material alone is without his protection. Along the lines suggested in this paper, I venture to propose a form of bill, placing a duty on zinc ore, which, if Congressional action can be secured before a probable gen- eral revision of the tariff subject, is so moulded as to be an amendment to the lead paragraph of the Dingley Act of 1897. It fully meets the requirements of the domestic zinc miner, it is adverse to no interest of the domestic lead miner or smelter, and it is confidently believed to be free of the apparently objectionable features which are contained in said House bill 3030. An Act to define the duty on lead bearing ore and zinc bear- ing ore and to determine the method of sampling and assaying the same; to amend paragraph 181 and to repeal paragraph 514 of an Act, approved July 24, 1897, entitled, "An Act To provide revenue for the Government and to encourage the industries of the United States;" and for other purposes. Be it enacted by the Senate and House of Representa- tives of the United States of America in Congress assem- bled, That paragraph 181 of an Act, approved July 24, 1897, entitled, "An Act to provide revenue for the government 236 PROCEEDINGS AMERICAN MINING CONGRESS and to encourage the industries of the United States," bo, and the same is hereby, amended so as to read as follows, viz: 181. Lead-bearing ore of all kinds, one and one- half cents per pound on the lead contained therein; zinc-bearing ore of all kinds, including calamine, one cent per pound on the zinc contained therein : Provided, that all ores imported, which shall contain both lead and zinc, shall pay; the above specified duty upon the lead contained therein and also upon the zinc contained therein: And provided further, that on all importations of lead-bearing ores and of zinc-bearing ores the duties shall be estimated at the port of entry and a bond given in double the amount of such estimated duties for the transportation of the ores by common carriers bonded for the transportation of appraised or unappraised mer- chandise to properly equipped sampling or smelting es- tablishments, whether designated as bonded ware- houses or otherwise. On the arrival of the ores at such establishments they shall be sampled according to commercial methods under the supervision of govern- ment officers, who shall be stationed at such establish- ments and who shall submit the samples thus ob- tained to a government assay er, designated by the Sec- retary of the Treasury, who shall make a proper assay of the sample, and report the result to the proper cus- toms officers, and the import entries shall be liquidated thereon, except in case of ores that shall be removed to a bonded warehouse to be refined for exportation as provided by law. And the Secretary of the Treasury is authorized to make all necessary regulations to enforce the provisions of this paragraph. Sec. 2. That paragraph 514 of said recited Act, and all acts and parts of acts inconsistent with the provisions of this act be, and the same are hereby, repealed. Sec. 3. That this act shall take effect and be in force upon its passage and approval. And now may I engage for a short while in discussing a matter not exactly germane to the main subject the question of policy of the domestic zinc operators in demand- ing a specific duty on zinc ore? Regardless of party creed, all operators of this district demand an adequate import duty upon the mineral. We are now a unit in the court liti- gation seeking to impose on zinc ore a meager protective duty of 20 per cent, ad valorem. TARIFF ON ZINC ORES 237 The Joplin zinc industry 10 years ago was in value 3 and 3-4 million dollars; five years ago about eight million dollars; last year over fifteen million dollars. The value of production still increases. And while the local mining in- dustry is not exactly infantile: the districts of Wisconsin, Colorado and elsewhere are of more tender age; and the aggregations of districts needs protection. The domestic operators produce the raw material, and have no protection ; the smelter sells the manufactured pro- duct and enjoys adequate protection. It is the same situa- tion which confronted the farmers under the Wilson Bill : free trade in raw wool tariff on woolen textiles. The Ding- ley bill righted that wrong; you all well know the result. Five years ago six to ten thousand dollars was the cost of an average mill under the then existing mining condi- tions; today, fifteen to twenty-five thousand dollars is the price of a good plant under our present mining system. Years ago, short lived soft ground mines, with high mineral values, were operated : today less than three per cent, sheet ground mines with large mineral area, are profitably oper- ated; then wages were much lower and labor hours longer: today wages are very high and the eight hour underground law is rigidly enforced. High wages and the labor law are not objected to by the mine operator, other things being equal. If the smelter succeeds in the present tariff suit and no duty is placed on zinc ore, then one of two results must fol- low, either the low grade sheet ground properties must close indefinitely or else the price of supplies and labor must be largely reduced. Labor amounts to sixty per cent, of the operating cost. We prefer to pay to labor the present prices and have an adequate stable price for our. mineral output. The average importation of zinc ore from Mexico still continues; for the months of July, Aug. and Sept., 1907, it aggregated 22,000 tons. If we must compete with Mexican ore, then in a way we are driven to compete with Mexican mining conditions. To the miners, I assure you, this is no dream. Let me call your attention to the wage scale of a large Mexican mine. These figures are authentic: Mine Employes: Foreman $2.85 to $5.00 per day Shift Boss, 8 hours 1.71 to 2.14 " Hoistmen, 8 hours 2.00 Common laborers, 12 hours .25 to 1.00 " " Muckers, 8 hours .65 " Blacksmiths, 12 hours .75 to 1.75 " " 238 PROCEEDINGS AMERICAN MINING CONGRESS Blacksmith helpers, 12 hours .35 per day Compressormen, 12 hours 1.28 Mill Employes: Clerk, 8 hours $18.00 per week Ore Weigher, 8 hours 10.00 Wilfley Concentrator man, 8 hours 1.50 day Zinc room man, 8 hours 3.00 Common laborer, 8 hours 38 cts to 1.00 These figures are in Mexican coin; worth less than one- half the value of U. S. money. Compared to the scale of wages existing here, the Mexican wages are one-ninth to one-half our scale of prices. There are at least 8,000 miners in this district; the weekly pay roll probably reaches the sum of one hundred and fifty to two hundred thousand dollars. This money is immediately circulated among local merchants. Cut this by one-fourth or one-half and the result would be most dis- astrous to general business. Protection in principle is intended to foster infant indus- try; also to prevent ruinous competition of foreign trade with established domestic industry; and last, but not least, to enable the domestic industrial concern to pay a higher wage to labor than it could do if subjected to foreign com- petition based on the wage of the laborer who is un-Ameri- can in habits, may be semi-civilized; and whose living neces- sities may be measured by scant requirements. Adequate tariff duty on zinc ores is defensible under all three of the heads above mentioned. It is safe to assume that domestic investment in zinc mines is many fold in excess of the amount of investment in smelters. As an industry the mining is of greater financial importance than is the smelting of ore. The golden rule of business and legislation therefore should be to give ade- quate protection to the producer of the raw product, as well as to the manufacturer of the metal. It is said that the recent reported increase in Mexican freight rates, by order of the president of that country, will eliminate zinc ore shipments to the U. S. and relieve us of the need of statutory protection. My answer to that propo- sition is that the domestic operator and laborer should have the situation more securely in hand, than it possibly can have when its dependence is based upon some foreign poten- tate's embargo, or the whim of a railroad directorate. The domestic zinc mine operator must have the bul- wark of specific duty. And to your Senators and Represen- tatives, from now on, let that be your unceasing slogan. How Long Will Our Coal Supplies Meet the Increasing Demands of Commerce ? BY EDWARD W. PARKER, WASHINGTON, D. C. The story is told ill Canada of an old lady whose faith is of the kind that moveth mountains. She lived some dis- tance from the beaten paths of commerce, and modern meth- ods of heating and lighting were unknown to her. But one day her son, who had been "to the city," brought home with him a kerosene lamp and a can of oil. She naturally in- quired what the oil was and whence it came, and on learn- ing that it was petroleum or rock oil, she commanded her son to take it back she would have none of it. She could not understand the wickedness of men who were stealing from the Lord the fuel that He had stored in the world for the purpose of consuming it when time should be no more. We are not called upon to interpret in what manner the promise of the destruction of the world by fire shall be brought about, but certain it is that man is consuming at an enormous rate not only the combustible material stored beneath the surface of the ground, but we are told by Mr. Pinchot that the forests that formerly seemed inexhaustible will have been practically destroyed by the middle of the present century, if the present rate of destruction continues. The use of wood for fuel is not so great proportionately today as it was a century ago, but other demands upon the forests have taken its place. A recent report of the Forest Service states that the present annual consumption of fire- wood is about 100,000,000 cords, valued at $350,000,000, and that the total forestry consumption represents about 20 bil- lion cubic feet, worth nearly f 1,100,000,000. The consump- tion of lumber has increased more rapidly than the popula- tion. My reason for referring in this paper to the forest destruction will be shown later. The subject assigned to me for this meeting by jour distinguished secretary is "How Long Will the Supply of Coal Meet the Increasing Demands of Commerce?" The question is one to which, of course, no accurate reply could be given, for the answer is predicated upon the determina- tion of one unknown and unascertainable quantity, and that is the rate of increase which the demands of commerce will take. Other and scarcely less important factors also enter into the solution of the problem. Among these maj be mentioned the improvement which must be brought 240 PROCEEDINGS AMERICAN MINING CONGRESS about in (1) the methods of mining, assuring a greater per- centage of recovery from the mines and a larger proportion of usable fuel and less waste and inferior coal (by inferior coal I mean slack coal or fines which are sold at low prices, or not at all); (2) processes for using economically the slack or low grade coal; (3) more efficient methods of combustion which will increase output of energy per unit of fuel con- sumed; (4) the utilization of other forces of nature which will to greater or less extent diminish the drain upon our coal supplies. Much is already being done and more will be done in the development of better methods in the mining, preparation and utilization of coal. The government, through the Technologic branch of the United States Geo- logical Survey, is spending thousands of dollars in the wav of scientific investigation of fuel utilization, and although this work is of recent inauguration, having had its inception at the Louisiana Purchase Exposition, highly valuable re- sults have been obtained, and these are being published and gratuitously given to the public as fast as they can be compiled and published. I shall not attempt to go into these, as I understand you are to have a paper by Prof. Joseph A. Holmes, under whose direction this work is being conducted. I will only mention the fact that one of the results accomplished during the Exposition period was the demonstration that producer gas for power purposes could be made from bituminous coal and lignites with an increase of from 200 tp 300 per cent, over the efficiency obtained from a steam power plant. It is significant, too, that when one of the gas engine manufacturers was approached with a proposition to install one of his engines as a working exhibit at the St. Louis Exposition, the proposition was declined because of want of belief that producer gas from bitumin- ous coal could be so used. I speak from personal knowledge on this point, for I did the approaching. One of the coals successfully used at this exposition plant was a California black lignite or sub-bituminous coal containing 8 per cent, sulphur. I am informed by Prof. Fernald, in charge of the producer gas investigations of the Technologic branch, that 66 2-3 per cent of the power represented by the installation of producer gas plants during the last year are for using bituminous coal, while 80 per cent, of the number of plants are designed for anthracite. As to the utilization of other forces, the development in the harnessing of water courses which has been made possi- ble through the long distance transmission of power by electricity is one of the wonders of the present time. The great Susquehanna river is being dammed at McCalls Ferry, 242 PROCEEDINGS AMERICAN MINING CONGRESS Pennsylvania, for the purpose of sending power electrically to Baltimore and Philadelphia, two cities a hundred miles apart. The power of Niagara Falls is being utilized to a great extent already, and it is a momentous question as to whether we can better afford to permit what remains to be used for power or to preserve it as one of nature's art works. Is it better to use it for utilitarian purposes or for its beauty and grandeur? I am sufficiently uncommercial to hope for the latter. As to the interesting demands of commerce on our coal supply, our only method of forming an opinion on this point is from what has preceded (as Patrick Henry once remarked, "We have no way of judging of the future but by the past"). And our past, so far as coal mining is concerned, presents an interesting history. I have prepared and present here a chart which illustrates better than I can tell in figures the rapid, almost phenomenal, growth of our coal mining indus- try. It shows the total production of coal in the United States for each ten years to the close of 1905. Each decade shows an output approximately double that of the preceding one, which means that the production in each ten years has been equal to the production up to the beginning of that decade. How long can or will this continue? Let us prolong the curve as it would show for the future if this history were to continue. I have done this on another chart, which is on a scale of about one-eighth of the one showing our record in the past. It will be noticed that while the production has approximately doubled, there is a decreasing ratio in the percentage of increase during each decade. For instance, the total production of coal .from the earliest times to the close of 1845 was nearly 28,000,000 tons. In the decade for 1846 to 1855, inclusive, the production was something over 83,000,000 tons, or practically three times the total produc- tion to the beginning of that decade. In the ten years end- ing in 1865, the total production was 174,000,000, an increase of about TO per cent, over the total production for the begin- ning of that decade, but this was the period in which the Civil War occurred, and coal mining, like all other indus- tries, suffered a relapse. Moreover, the records of produc- tion for that period are incomplete, and it is possible that the actual tonnage was more than we have recorded. In the ten years from 1866 to 1875, the coal production amounted to nearly 420,000,000 tons, and it was in this decade that the wonderful development in the coal mining industry actually began. The production for this ten years was two and one-half times that of the preceding ten years and was 35,000,000 tons in excess of the total production up OUR COAL SUPPLIES 243 to the beginning of the decade. In the following decade (that ending in 1885) the production was again somewhat more than doubled, but not in the same proportion as in the preceding ten years. The production in the decade ending in 1895 was 87 per cent, larger than that of the preceding one and was over 30,000,000 tons in excess of the total pro- duction to the close of 1885. In the ten years from 1896 to 1905 this country produced 2,832,403,000 tons, an increase of 78.5 per cent, over the preceding ten years. If we can assume that the production will continue to increase with the decreasing percentage ratio, the produc- tion for the decade ending in 1915 would be 60 per cent, over that of the decade ending in 1905, and the total production for the ten years would be 4,530,000,000 tons, or an average of 453,000,000 tons per year (our production last year was 414,000,000). In the next ten years there would be an in- crease of 54 per cent, and the production for the ten years would amount to something over 6,600,000,000 tons. If we prolong the curve in this way for another hundred and fifty years we find that the production would become fairly con- stant between 2046 and 2055, with a decennial production of approximately 2,300,000,000 tons a year, as compared with the production of the present time of something over 400,000,000 tons. The anthracite fields of Pennsylvania have been pretty thoroughly studied, and it is generally accepted that if the production were to continue at the present rate of about 65,000,000 long tons a year, the supply would be practically exhausted in between 70 and 80 years. It is not to be assumed, however, that the production will be maintained at this rate and then suddenly cease, but that the decline would be gradual, and with possibly an increase in the per- centage of recovery of the coal in the ground the total exhaustion of the fields will be put off for 150 to 200 years, Mr. M. E. Campbell, in charge of the economic geology of fuel, has prepared with much care an estimate of the con tents of our bituminous coal fields, and he places the quan- 1ity of coal in the ground when mining first began at 2,200,- 000,000,000 tons. From this there has been extracted, to the close of 1906, about 4,625,000,000 tons, and estimating that for every ton of coal mined there is half a ton lost, this represents an exhaustion of nearly 7,000,000,000 tons, or 32 hundredths of one per cent, of the supply. If we estimate that by 2055 the production would amount to 2,300,000,000 tons annually, and the percentage of recovery remains the same, the supply, in the light of present knowledge, would be exhausted in approximately 700 years. I am convinced, H096tf.il - C98t I I ^e ill C8 - SfBI I OUR COAL SUPPLIES 245 however, that before we have proceeded many years further our methods of mining and our methods of fuel consumption will have so improved that this waste will be materially decreased and that our descendants will recover from 90 to 95 per cent, of the supply. This is being done in some regions at the present time. This and the investigation of other forces of nature's may put off for many years the date of complete exhaustion. I should like to call attention to the fact that the great increase in our production of coal has been due to our indus- trial development. In the middle of the last century, when the population of this country was 23,191,876 persons, the total amount of coal produced in one year was about six and a half million tons. This represents a per capita con- sumption of a little more than one-fourth of a ton. Ten 3 r ears later the consumption was a little over one-half of a ton per capita. It should be remembered that at this time a large amount of the fuel used for household purposes, and to a considerable degree for manufacturing purposes also, was wood. In 1880 the consumption of coal had increased to one and one-half tons per capita and in 1906 it is esti- mated that the per capita consumption was almost exactly five tons of coal. So that in a little over 50 years the per capita consumption has increased from one-fourth of a ton to five tons twenty times. It might be well to mention here that the fuel consumption of wood in the middle of the last century is possibly more than replaced by our present consumption of petroleum and natural gas, for in addition to the coal consumed in 1906 we used nearly 400,000,000,- 000 cubic feet of natural gas and 126,500,000 barrels of pe troleum. The natural gas consumed was equivalent to approximately 18,000,000 tons of coal. About 80 per cent, of the petroleum produced, or say 100,000,000, was burned in making light or heat, which would have been equal to the consumption of 25,000,000 tons of coal. As I have stated, our production of coal in 1906 was 414,- 000,000 short tons. The total production of the world was 1,000,000,000, short tons. In the combustion of each pound of coal about two and one-third pounds of oxygen are taken out of our atmosphere and three and one-third pounds of carbonic acid are given off. Take the combustion of the United States product alone and ignoring what additional supply is added by the consumption of oil and gas by the exhalation of man and animals, the quantity of carbonic acid thrown into the atmosphere last year by the consump- tion of coal in this country was approximately 3,000,000,000,- 000 pounds. What, becomes of it? One of thegreat consumers 246 PROCEEDINGS AMERICAN MINING CONGRESS of carbonic acid is the forests, and these, as I have pointed out, are being used up even faster than the coal. It is true that the cultivation of our farms and the raising of our enormous crops of corn, of wheat, of hay, of vegetables, etc., provide for the consumption of this product of fuel com- bustion, but will they be able to do so if we continue to- rn crease the production and consumption of coal as indi- cated by the chart? One scientist has told me that the corn crop of Kansas will take up as much carbon dioxide as all the trees cut in a year. I am not in a position to deny it, but I am inclined to doubt it. On the other hand, leaf decay and the oxidation of plant life year by year, form another source of carbon dioxide which probably equals the consumption of it by growing vegetation. In fact, no less an authority than Kelvin has been credited with the prediction that the supply of oxygen will be used up before the supply of carbon as represented by our coal beds and forests. This would produce a condition that would make the earth uninhabita- ble by man, but, before that time arrives, we may rest assured that man's genius will have so subdued and utilized the forces of nature that the need for the combustion of fuel in the production of heat, light and power, will have passed. I have shown that, assuring a certain ratio of increase in our production of coal when the supply may be expected to fail, and while there is no fear of an immediate exhaus tion, it is also true that our best and cheaply mined coal3 will, at the present rate of drain upon them be largely depleted by the end of the next century. We are taking the cream and leaving the skim-milk. The users of anthracite coal . in the East are already feeling the effects of the lessening supply, and we will do well to heed the warn- ings which bid us practice greater economy in the mining and utilization of our fuel supplies. Prospecting for Oil and Gas BY DR. ERASMUS HAWORTH, LAWRENCE, KANSAS. My theme is "Prospecting for Oil and Gas," by which is meant going out into new territory and discovering and opening up new oil and gas fields. If we have advanced far enough in gaining knowledge of the origin and hiding places of these important products of Nature's laboratory to un- derstand the fundamental principles by which Nature was governed in their compounding, then we ought to be able to carry such prospecting beyond a mere wild search and accidental discovery and we should have our actions based upon some fundamental working hypotheses. Prospecting for any mineral substance intelligently must presuppose at least some knowledge of its usual oceur- ence and its usual association with other materials; at least some knowledge of its origin and the natural conditions governing its existence. If this is not correct, then all sci- ence and learning are mockery in this particular and the "Open Sesame" of the Ancient with his wand remains the only guide. Certainly with our boasted knowledge and learning of the twentieth century we will not admit this. And yet our knowledge of fundamentals is so limited, and minerals and ores and precious gems have been so successful in choosing their hiding places that thus far in our history, it must be confessed, many of the most valuable discoveries have been made by accident. There seems to be a certain association of minerals and of mineral materials which results in our considering the occurrence of certain things as signs of something else. We have, for example, "coal blossom," the expression meaning that something discovered indicates the presence of coal, an idea gained by experience that this "something" is asso- ciated with coal, and having found the first, proper search will reveal the other. Likewise, we have "mineral blossom" for gold, for silver, for lead, for copper, and for every other material usually mined. Then again, we have a certain knowledge of geographic distribution gained by centuries of experience. Such experience will prevent our searching for gold or silver or copper or other metalliferous deposits on the broad plains and fertile fields of the great Mississippi Valley region excepting in a few localities. But after a fashion this is begging the question, for we should know 248 PROCEEDINGS AMERICAN MINING CONGRESS more fundamentally why the areas named do not contain the ores mentioned. It is my firm belief that when we have sufficiently as- sembled all knowledge of association of materials, we will be able to place prospecting on a firm and scientific basis. Already we do not seek for coal in granite rocks. And why ? Because we have never yet found the two associated. We understand the processes of Nature forming granite are in a measure antagonistic to the processes forming coal, and, therefore, they could not be associated. In our search for the metals, we go to mountainous districts, or to regions where natural forces have greatly disturbed the outer part of the earth, making many fractures and fissures in which valuable deposits could be placed; and we avoid areas where no disturbances of Nature have occurred and where the rocks are soft and friable so that fissures and openings could not remain in existence, even were they once formed. This custom is so well established that we follow it almost unconsciously and possibly without asking or answering the question why. We have the experience of the entire -human race for many thousands of years to support us in such actions, Let us occupy a few moments in looking over occur- rences and associations of oil and gas in an effort to learn whether or not we may be equally Avise in searching for these materials. The first great general conclusion based upon experi- ence and observation is that oil and gas almost always are found in a porous rock rather than in genuine fissure veins. Sandstone is the most uniformly porous rock known, and almost all the oil and gas know r n to man have been found, in sandstone. Apparently, however, the reason for this is not because the sandstone is sandstone as such, but simply because it is porous and open. Throughout the great oil fields and gas fields of Western Ohio and Indiana oil and gas exist in a limestone which, by one of Nature's myste- rious processes, has been made broadly porous, imitating in this respect an ordinary sandstone. In portions of Cali- fornia oil occurs in a metamorphosed shale which has been rendered hard and porous by metamorphic processes. It would seem, therefore, that the important fact here is that sandstone is porous and forms a natural receptacle or store- room for the oil and gas, rather than a laboratory in which they are compounded. Another great fact of observation is that in every oil field thus far developed, a bed of -fine-grained, compact shale PROSPECTING FOR OIL AND GAS 240 or clay overlies the porous stone or receptacle, which serves as a blanket or covering to hold the materials in and keep them from escaping. This covering, or blanket, varies greatly in thickness in different places, but apparently is everywhere present. It would seem that it is an essential association. The two observations just named are fundamental in importance. They prevent our hope of finding oil or gas in a sandstone immediately at the surface, and equally pre- vent our prospecting in regions where we know no porous rock exists. We would laugh at the man who would begin drilling in solid granite in a search for oil. It becomes de- sirable, therefore, to learn all we can regarding the way na- ture prepared these underground receptacles the sand- stoned and the porous limestones. Many inexplicable con- ditions are observed in oil fields, inexplicable until we study Nature's processes in making sandstone. I know an instance, for example, where a line of good oil wells had been drilled nearly a mile in length. Later, a well was put down between two of the old wells, which were 600 feet apart, and this last well found no oil, much to the surprise of everyone who knew about it. But upon investigation it was learned that the last well found no sandstone where the sandstone was expected. The explana- tion clearly is that, along the old sea beach on which the oil-bearing sandstone was formed elsewhere, a mud-bank, due to the particular combination of beach line and river mouth, had been formed, and the dry well penetrated a place where eddies deposited mud, w r hile sandbeds were forming on either side. Oil fields in general have been discovered by pros- pectors attracted by surface indications. Usually leaks or springs bring oil to the surface and prospectors have placed their drills nearby. We owe a great debt of gratitude to such prospectors and, in fairness, it should be stated that to them belongs nearly all the credit of having discovered every important oil field thus far developed in America. It was the accidental discovery of oil in boring for salt brine in many places throughout the Appalachian region which prompted the supporters of Colonel Drake to drill his fa- mous well in Pennsylvania. It was the accidental discov- ery of escaping gas and oil in many places which led tin- prospector to make discoveries resulting in the development of many other fields. According to a personal letter re- ceived from Dr. G. W. Brown, now of Illinois, it was the discovery by him of asphalt in Miami county, Kansas, which 250 PROCEEDINGS AMERICAN MINING CONGRESS led to the drilling of the first well near Paoli, which must be reckoned as the starting point of development in the great Mid-Continental field. And yet, in the aggregate, I venture to state that seaps and springs and escaping gas have led to a larger number of failures than successes. Such springs clearly show that oil and gas exist in a given territory, but they fail to show details of where to drill in order to get the good well. Nearly forty years ago, springs were found on a mountain side in California, but the wells drilled as a result of the discovery in general were total failures. The reason was that the prospector neglected to study his territory care- fully and to learn from what particular formations the seaps were derived. Unfortunately, the drill was placed so that it went directly away from the source of oil rather than towards it. In early days quantities of asphaltum were found in Cherokee county, Kansas, east of the Neosho River, and ever since the discovery, periodically, first one party and then another have taken leases in that vicinity with the hope that, by drilling deeper, large quantities of oil would be obtained. Here again disappointment has always accom- panied honest efforts simply because the leaks come to the surface at a place far removed from the bodies of oil and the drill progresses in a wrong direction. The Mid-Continental oil field, which lies astride the state boundaries between Oklahoma and Kansas, is now r reck- oned as one of the greatest ever discovered. During the cal- endar year 1907, it will produce about 40,000,000 barrels of oil, probably the largest amount from any one field in the United States. Throughout this entire field, oil is found in sandstone, not one individual sandstone bed, but in many. The field is much more spotted and uncertain than some others. Operators long ago ceased being discouraged by bringing in a dry well, or over-enthusiastic by bringing in a good one. The Mid-Continental field has many individual pools, each one limited in its extent in every direction. No two of them are exactly alike in conditions of thickness of sandstone or distance below the surface. But they are all closely similar in that the oil and gas occur in sandstone which has a firm, compact layer of shale overlying it. It is not uncommon for the drill to pass through a number of different sandstones, each one of which may be productive of oil or gas. In order to portray a proper conception, let me liken the formation to a series of shelves in a kitchen cupboard, the shelves proper to be composed of limestones and the in- PROSPECTING FOR OIL AND GAS . 251 tervening spaces to be filled with shale beds here and there carrying lenticular masses of sandstone. The drill, starting at the top, will pass through shelf after shelf of limestone with shale and sandstone intervening. These formations vary greatly in thickness, that is, the shelves are unequally distant apart. In some places, a half dozen or more sand- stones will be passed, each one of which is filled with water that must be cased off in drilling, and a lower sandstone found so full of oil that more than a thousand barrels per day may be obtained from one well. Some of the sand- stones are filled with gas instead of oil. Here a gas-bearing sandstone overlies the oil and there it underlies it. The shale beds between may be thick or thin, ten or twenty or thirty feet, or a hundred feet or more. It is not proper to say that the gas is shallower than the oil or that the oil is shallower than the gas. Often we have strong flows of gas above oil-bearing stones, but quite as frequently the ga lies below the oil. In one very important respect the Mid-Continental field differs strongly from any and all oil fields farther east. Here there seems to be almost a total lack of important structural relations. In the Appalachian region, we have great broad anticlinal ridges and synclinal troughs which, in a measure, control the location of oil and gas. An anticlinal ridge is simply a fold where Nature has bent the rock strata up- wards. It seems that when a gas body exists underground, the gas is trying to escape upwards and may be caught in this arch, or roof, provided our familiar fine-grained shale bed constitutes the roof. As gas is lighter than oil, it will lie on top of the oil should the two exist in the same sand- stone, and as oil is lighter than water, the oil will lie on top of the water, should they exist in the same sandstone. In regions where anticlinal ridges exist, therefore, one should follow them in search for gas, and after the gas has escaped, oil may be obtained from the same wells, which, in turn, may be followed by water after the oil is exhausted. One eloquent writer, in describing the Appalachian region, said that the anticlinal ridges might be traced by the torch- lights of the gas wells and the synclinal troughs lying be- tween were accurately outlined by the dark valleys where no gas light could be found. Many have searched in vain for well-defined anticlinal ridges and synclinal troughs in the Mid-Continental area. Here and there, locally, small and illy-defined anticlines have been discovered. Usually they are productive of gas, but occasionally they overlie mud-banks along the beaches of the ancient seas and, therefore, the necessary porous 252 PROCEEDINGS AMERICAN MINING CONGRESS sandstone does not exist. The absence of this important structural relation, which may be determined by surface conditions, makes prospecting in the Mid-Continental field correspondingly more hazardous. An extended study of the records of hundreds of deep wells reveals another important great general fact. The individual sandstone beds in the Mid-Continental field have a lesser horizontal extension than those of a number of other places. This is the imme- diate reason for the existence of so many pools. The old lola gas field, for example, had comparatively definite outlines, or perifera, uneven in direction, with an area eight or nine miles in greatest length and from three to four miles in greatest width. Nearby, but outside of the old field, other gas wells of equal importance have been found which seem to be entirely separate and distinct. The gas pressure in the two is not the same and the exhaustion of one does not affect the other. The reason evidently is that in each case a lenticular mass of sandstone contained the gas and that away back at the time each sandstone was forming, conditions along' the old ocean beaches were such that each sandstone area was surrounded by mud deposits which provided no openings or pores to serve as a sieve in later times. A careful study of the geology of this region shows that the trend of the old beach lies in a general way nearly north and south. This is certainly the explanation for the long drawn-out, shoe-string-like shape of the Mid-Conti nental productive field. Examine a map of Kansas and Ok- lahoma on which is marked the productive area and it will be found to consist of a long, narrow strip reaching from near Kansas City, a little west of south, by way of lola, In- dependence, Bartlesville and Tulsa, on southward to be- yond the Glenn Pool, a distance of nearly 300 miles. In transverse direction, it is seldom to find an extent of more than ten per cent, of this measurement, although here and there it may be considerably increased. But throughout this great distance north and south, it is only occasionally that nature has been liberal in supplying oil and gas. This local area has it in great abundance and that area has non and our ignorance of Nature's processes is so great that tin wisest cannot explain why. Prospecting for oil and gas in the Mid-Continental field, therefore, is exceedingly uncertain in detail, but compara- tively certain and sure in a broad general way. It is de- tail, however, which makes or breaks the individual pros- pector. If a company sufficiently strong could be organized to drill a hundred or a thousand wells, regardless of sue- PROSPECTING FOR OIL AND GAS 253 cess or failure, it is practically sure success would meet their efforts. But the individual, or the small company that can drill only a few wells unless success is obtained at first, is likely to meet failure first and go to the wall, only to learn that his follower is successful with his first well. This brings me to a most: important point, one hinted at earlier, namely: What is the origin of oil and gas? I be- lieve that if we knew the origin of oil and gas, we would know better where to prospect for it. If we could penetrate the mysteries of Nature sufficiently to understand her man- ufacturing methods and could learn where her factories are located, we would know more about where to search for her store-houses. At present, there are two main and conflict- ing theories regarding the origin of oil and gas. One is held in a tentative way by nearly all the working geologists who are familiar with field conditions in oil and gas re- gions. The other is held principally by chemists. The first theory assumes that oil and gas represent products of decay of organic matter which was imbedded in rock masses at the time they were formed. It supposes that during the formation of shale beds and limestones a vary- ing amount of organic matter was included in the rock masses. Such organic matter, it is supposed, being shut out from the oxygen of the air, passed through various stages of partial decomposition similar to the way organic matter decomposes at the surface of the earth, excepting that it was not oxidized. This w^ould yield a complex series of products, gas, light oils, medium oils, and heavy oils, such that their varying gravities would arrange them, as far as possible, with the lighter above the heavier. As all of them are lighter than water, and as ground -water is almost every- where present and is continuously being augmented by rain- fall, the tendency would be for the ground water to drive them upwards, ever upwards and out at the surface, pro- ducing the various leaks, seaps and springs. Here and there where conditions were most favorable, the porous rock- sandstone, limestone, or hardened shale occasionally would be met where the oil or gas might find a resting place, held in place by an overlying, impervious shale bed. The pressure under which a body w r ould exist might be depend- ent on the distance from the surface, which is the same as the pressure of the water holding it in place, or it might in rare cases be increased by water at great depths crowding the oil and gas out of great depths and driving them to- wards the surface. This explanation in general is fairly satisfactory, but the great trouble is, we cannot be real sure that it is cor- 254 PROCEEDINGS AMERICAN MINING CONGRESS iect. According to it, we would expect to find oil and gas close to where they are manufactured. Therefore' we would search for them in porous rock masses surrounded by black bituminous shale or by other rocks w r hich could have pro- duced them by decomposition of contained organic matter, cither vegetable or animal,, or both. The old idea that oil was produced from beds of coal clings to many and is the same as that just expressed, ex- cepting that it is more contracted and probably correspond ingly less likely to be correct. Oil and gas may have beei produced from coal, but if so, it must necessarily be true that they have been produced in much larger quantities by the much greater aggregate of organic matter disseminated throughout the great masses of stratified rock in such a way that it would not ordinarily be called coal. Every black shale, every bituminous sandstone, every limestone, cer- tainly, has contained more or less organic matter and, to those who hold other views regarding the origin of oil and gas, it is difficult to explain what has become of the prod- ucts of decay, of this organic matter. When I first began studying this subject, I was puzzled to know how sufficient organic matter could have been im- bedded in rock masses to produce the vast quantity of oil and gas already discovered. Today I am puzzled to explain what has become of the vast quantity of organic matter that we know. was imbedded in all stratified rocks. The mat- ter of quantity, therefore, need give no concern. Not a drop of water enters the ocean from the dry land without taking at least a trace of organic matter with it. Throughout all geologic time, vegetation has covered the dry land areas. Each spring it has budded, and bloomed and matured the ripened fruit; each autumn the fruit and the grass and the leaves have fallen to the ground only to be swept down to the ocean in great measure by flowing waters and to be im- bedded in the silt and mud and the forming sandstones and limestones and thus shut out from the atmosphere so that complete oxidation was impossible. What has become of all this vast amount of organic matter? To those who be- lieve in the origin of gas and oil as above outlined, the an- swer is that a portion of it has been changed over into gas and oil and is now lurking here and there in the stratified rocks and is escaping in seaps and springs in countless myriads of places, but in tops of anticlinal ridges and sand- stone beds and porous limestones overlaid by impervious shales it is awaiting the drill of the prospector for an oppor- tunity to escape to the surface. PROSPECTING FOR OIL AND GAS 255 Another view of the origin of oil and gas has been ad- vocated for many years which may be called the chemical theory. This chemical theory is based upon well-known chemical properties of matter. It assumes that at one time at least a portion of the matter of the earth was in a molten condition and that while in that condition, carbon united with different metals forming carbides similar to that known to exist in ordinary cast iron. Gradually, through- out geologic time, water has come in contact with these me- tallic carbides and has brought about a decomposition of the carbides, producing oxides of the metals and hydro- carbons. In our chemical laboratories such changes can be brought about so that there need be nothing surprising if oil and gas should be produced in this manner. Suppose that at a proper distance beneath the surface where the temperature is considerably above surface tem- peratures, percolating water should find carbides of iron and other metals. The reactions above named probably would occur and a complex series of hydro-carbons would be produced which, under the influence of water pressure, would migrate towards the surface along whatever chan- nels they might be able to find, would be filtered or strained through clays and stones of various degrees of porosity, and would ultimately be found escaping in seaps or springs, or caught in pools in much the same way as though pro- duced by decomposition of organic matter, as already ex- plained. This chemical theory of the origin of oil and gas, ap- parently is gaining favor of late. It is an all-important question. If, by some good fortune, we can decide which theory is correct, or possibly could find that still a new and unheard of explanation is correct, then it seems we would be in a position to formulate rules to govern our actions in prospecting, rules which would lead to ultimate success. But so long as there is a doubt as to how oil and gas have been produced and where on the earth or in the earth Na- ture's factories have been located, or are located, provided they are still in operation, just that long it will be impossi- ble for man to entirely satisfactorily establish working hy- potheses to guide his actions. And so long .as this doubt exists, surely we must proceed in our prospecting in a measure without being governed by that high degree of in- telligence for which all of us are longing and striving. The Deflocculation of Non-Metallic Amorphous Bodies BY EDWARD GOODRICH ACHESON, NIAGARA PALLS, N. Y. In the year 1901, I was engaged in a series of experi- ments having as their object the production of crucibles from artificial graphite. In this work I was led into a study of clays. What 1 learned may be briefly stated as follows: 1st. The American manufacturers of graphite cruci- bles imported from Germany the clay used by them as a binder of the graphite entering into the crucibles. 2nd. The German clays are much more plastic and have a greater tensile strength than American clays of very similar chemical composition. 3rd. Residual clays those found at or near the point at which the parent feldspathic rock was decomposed are not in any sense as plastic or strong as the same clays are when found as sedimentary clays at a distance from their place of origin. 4th. Chemical analysis failed to account for those decided differences. I reasoned that the greater plasticity and tensile strength were developed during the period of transportation from the place of their formation to their final bed, and I thought it might be due to the presence of extracts from vegetation, the washings from the forests being in the waters which carried them. I made several experiments on clay with extracts of plants, tannin being one of them, and I found a moderately plastic weak clay, when treated with a dilute solution of tannic acid or extract of straw, was increased in plasticity, made stronger, in some cases as much as three hundred per cent., required but sixty per cent, as much water to produce a given degree of fluidity, was caused to remain sus- pended in water and made so fine that it would pass through a filter paper. Being acquainted with the record of how the Egyptians had the Children of Israel use straw in mak- ing bricks, anc\ how they substituted stubble for straw, and believing it was not used for any benefits derivable from the fibres but for the extract, I called clay so treated "Egyptianized Clay." Having in 1906 discovered a process of producing a fine, pure, unctuous graphite, I undertook to work out the details of its application as a lubricant. In the dry form, or mixed with grease, it was easy to handle, but I wished it to enter DEFLOCCULATION OF NON-METALLIC AMORPHOUS BODIES 257 the entire field of lubrication as occupied by oil. In my first efforts to suspend it in oil, I met the same troubles encoun- tered by my predecessors in this line of work, it would quickly settled out of the oil. It obeyed the same laws cov- ering the natural product. So things stood until the latter part of 1906, when the thought occurred to me that tannin might have the same effect on graphite that it did on clay. I tried it with satisfactory results, the effect being obtainable with the natural graphites as found in the Ticonderoga and Ceylon varieties, and with the artificial product as found in Ache- son-graphite. It was more essential and cheaply produced when the soft, unctuous variety of my graphite was used, this kind being composed of pseudo-morphs of carbide crys- tals, which had been decomposed in the electric furnace, the resultant graphite being very loose, porous and readily dis- II ,1 integrated and deflocculated. The effect was produced by treating the graphite in the disintegrated form with a water solution of tannin, the amount of tannin being from three to six per cent, by weight of the graphite treated. I found that while the effect may be produced in a very satisfactory way with distilled water, the waters as found in rivers, deep wells, etc., are improved by the addition of a trace of am- monia. The presence of carbon dioxide in the water will prevent deflocculation. The accompanying Figures 1 and 2 show the effect of tannin in suspending graphite. Figure 1 is that of two test tubes, one containing water, a drop of ammonia and disintegrated Acheson-graphite; the other tube containing a similar amount of water, ammonia and graphite, with the addition of a little tannic acid. The photograph was taken immediately after the tubes were thoroughly shaken. Fig- ure 2 shows the same tubes and contents, four minutes hav- 258 PROCEEDINGS AMERICAN MINING CONGRESS ing elapsed after being shaken, they not having been dis- turbed during that interval. These tubes furnish a very clear demonstration of the quick settling of graphite in plain water and the remarkable effect of the presence of tannin. All of the graphite put into the tube with the tan- nin did not remain suspended. In fact, in this case as il- lustrated, very nearly all of it had settled, only sufficient re- maining in the water to give it its blackness. To cause a complete Suspension of all the graphite necessitates pro- longed mastication in the form of a paste with the water and tannin, and I find that after this mastication has been carried out that the effect is very much improved by diluting the mass with considerable water, and allowing it to re- main some weeks with occasional stirring. I have operated a masticator continuously for one month, without interruption, the machine having been charged with graphite and tannic acid made to a paste with water, and I afterwards found the graphite would remain suspended apparently for all time, not having shown any disposition to settle for a period of two or three months. In this condition I believe it is what would be called, by the chemists, "colloidal," but this word to me is wanting in significance and seems rather to be solely the name of a state or condition, and conveys no conception % of the real condition of the body that is in suspension. I have adopted the name "deflocculated." This is a new word that is not to be found in the dictionary. Flocculation, however,, is, and in the Century Dictionary I find it defined, as applied to chemistry and physics, as follows: "The union of small particles into granular aggregates or compound particles of larger size." If to this word we add the prefix "de," we have a word that would have the meaning of the undoing or resolving of the compound particles into their final molec- ular condition. I believe the body to be actually reduced to the molecular form, as I cannot conceive that the process of subdivision would cease at any definite point previous to the final subdivision to that form. When the subdivision has been carried to this molecular state, the body is ap- parently entirely free from the law of gravitation as we know it as applied to larger masses, and we have here graphite, which weighs approximately two and one-fourth times that of the water in which it is suspended, remaining indefinitely in suspension without any apparent disposition to seek a lower level. Is it not possible that to be colloidal is to be molecular, and to be molecular is to be free from the law of gravitation? We know that colloidal gold, weighing more than twenty times that of the water in which it is sus- DBFLOCCULATION OF NON-METALLIC AMORPHOUS BODIES 259 pended, will remain apparently indifferent to gravitation. It is customary to speak of the diffusion of gases; thus car- bonic acid gas, although much heavier than air, will become diffused through the air, but if a volume of this gas be collected in a balloon, you will find that as a mass it is sub- ject to the law of gravitation and will immediately seek a lower level. I have found that this effect is obtainable not only with tannic acid and extract of straw, but I have also produced it with catechu and the extracts of sumac, oak bark, spruce bark, and tea leaves. It may be remarked that all these sub- stances, with the one exception of straw, contain tannic acid, and were it not that I have obtained the effect with extract of straw, which is free from tannin, it might be assumed that tannin itself was the essential agent. It is quite possible that this list may be largely extended. I have produced the effect not only on clay and on graphite, but also on amorphous silica, alumina, lampblack, and my new product Siloxicon, and it would seem that this list might be very much extended also. Indeed, it would seem that we might take it as an established law applying to all non- metallic amorphous bodies. When it be remembered how broadly scattered over the face of the earth are these amor- phous inorganic bodies and these active organic agents, it is difficult to grasp to what extent this effect may be utilized in the economy of Nature the effect of the organic acting upon the inorganic. Unquestionably it is this action that prepares the clay for the potters' use. May it not play an important part in the process of the preparation of plant food? I have continually referred to the act of deflocculation as an "effect. " I know of no law, either chemical or physi- cal, that will account for the results produced, and we are therefore compelled to define it as an effect a result pro- duced by a cause. Figures 3 and 4 illustrate an experiment with water containing 0.2 of one per cent, graphite. Figure 3 shows a glass funnel containing a fine filter paper resting in a test tube. In the tube below the funnel is a black liquid, which has passed through the filter paper. This black liquid is water containing 0.2 of one per cent, deflocculated Acheson- graphite. The- fact of its having passed through the filter paper leaves no doubt in our minds of the impossibility of separating the water and graphite while in this condition by ordinary filtration. I have found that the addition of a very minute amount of hydro chloric acid causes the con- 260 PROCEEDINGS AMERICAN MINING CONGRESS tained graphite to flocculate, i. e., group its particles into masses so that it will no longer pass through the paper. Figure 4 shows, as in the former case, the funnel, filter paper and test tube; but now in the lower part of the tube, below the filter, we find a clear liquid, this being the water in which the deflocculated graphite was formerly sus- pended, the graphite now being caught entirely in the filter paper above. It will be noticed that the filter paper in Figure 3 is black on the outside, ,this having been pro- duced by the deflocculated graphite passing through the paper, whereas the filter paper, as shown in Figure 4, re- mains white on the outside, the graphite not having passed through its body. This graphite, even after flocculation, is so fine in its particles that when dried en masse it forms a nurd article. It is self-bonding, like a sun-dried clod of clay. I have successfully used deflocculated graphite in water instead of oil in sight drop feed oilers and with chain feed oilers. I have a shaft in my laboratory measuring 2 5-10 inches in diameter, revolving at 3,000 revolutions per min- ute in a bearing ten inches long that had no oil on it for a month, deflocculated graphite and water being the only lubricants used, the feed being by chain, ancl it ran per- fectly. On the same shaft is a similar bearing lubricated with oil, and this ran much the warmer of the two. A few days after this test was started a pessimistic friend remarked that just plain simple water would give the same results, that the presence of graphite was un- necessary. We are influenced by the opinions of others, even when we know or think they are wrong. I emptied the oil out of the second bearing on the shaft and substituted plain water. The results during the first twelve hours seemed to support the contention of the friend. The next day after the machine had stood motionless over night, things did not look so well for the water; it was a lame "second" on ac- count of rust, and was hurriedly removed. I think I shall not recommend clear water as a permanent lubricant. . Deflocculated graphite in water possesses the* remark- able power of preventing rust or corrosion of iron or steel. This characteristic will unquestionably make it of great value for some uses, and while, as yet, little has been done to explore the field some work has already been accom- plished in using it as a cutting compound in screw cutting, and I have been advised by one large manufacturer that the results obtained showed it to be equal or superior to oil when the water was carrying as little as one-half DEFLOCCULATION OF NON-METALLIC AMORPHOUS BODIES 261 of one per cent, of its weight in graphite. It will readily be understood that while preventing rusting, the high specific heat of the water renders it of great importance, permitting of a high speed of the machinery, and consequently in- creased output. Another probable application of defloccu- lated graphite in water will be as lubricant for condensing engine cylinders. While as I have stated, deflocculated graphite in water is an excellent lubricant for light work, it has the disad- vantage of losing its water by evaporation, and I realize that to utilize the possible advantages of deflocculated- graphite it would be necessary to replace the water with oil ; therefore, I set before me the task of accomplishing that re- sult. When it is remembered that a removal of the water by evaporation previous to its replacement by oil would cause the contained graphite to assume the condition of hard, flocculated, self-bonded mass, it will be seen that the prob- lem was not simply one of the evaporation of the water and suspending the resultant dry graphite in oil. A very great deal of difficulty and many discouraging conditions were met with in my attempt to cross this apparently bottomless chasm, and I am pleased to say that I eventually succeeded, and I have been successful in suspending the deflocculated graphite in standard oil in a dehydrated condition. The graphite will remain suspended in the manner that it formerly did in the water, and we now have in this article a truly new lubricating body. A new material having been created, as this would evi- dently seem to be, a new name is necessary, and I have added the initial letters of Deflocculated Acheson-graphite D-A-G to "Oil" or "Aqua/ 7 when the deflocculated graphite is carried in oil or water as the case might be, and have "Oildag" and "Aquadag" respectively. Professor 0. H. Benjamin, formerly of the Case School of Applied Science, Cleveland, Ohio, and now Dean of the Engineering Schools of Purdue University, Lafayette, Indi- ana, is engaged in making extensive tests to determine the value of deflocculated graphite as a lubricant, and, while these tests are not as yet completed, he has proved that 0.5 per cent, by weight of this graphite in oil greatly reduces the co-efficient of friction and materially extends the lif< of the oil in which it is suspended as a lubricant. Figure 5 shows some of the results obtained in his tests with spindle oil, and by a study of them we find that comparm;> the initial co-efficient of friction of plain oil and oil contain ing one-half ? of one per cent, of graphite^ the co-efficieni 262 PROCEEDINGS AMERICAN MINING CONGRESS of friction of the oil containing the graphite was but sixty - live per cent, of the plain oil, while after one hundred and twenty minutes, it was but fifty-five per cent., the friction of the oil having increased fifty-four per cent., while with the contained graphite it increased but thirty per cent. After shutting off the supply of the lubricant on the bearing, the co-efficient of friction of the oil alone increased in thirty minutes 125 per cent, whereas the co-efficient of the oil with one-half of one per cent, of graphite increased in eighty minutes but fourteen per cent. In fact, at the end of the entire run of 200 minutes its co-efficient of friction was less than the initial friction of the plain oil. Very extensive and careful tests of Oildag have also been made at the works of the General Electric Company, Schenectady, New York, under the supervision of Mr. W. L. R Emmett, engineer of the Lighting Department, and these tests have been corroborative of those made by Prof. Benjamin. They were, however, not made to include meas- urements of the co-efficient of friction but of the tempera- ture and the surface speed of the shaft in the bearing. The shaft measured seven and one-half inches, in diameter, .rest- ing in a bearing twenty-one inches in length, and the test covered both forced lubrication and oil ring lubrication. Not a great deal of advantage was shown in the case of the DEFLOCCULATION OF NON-METALLIC AMORPHOUS BODIES 263 forced feed lubrication, the presence of the graphite holding down the temperature but a very little. In the test on the oil ring feed, however, very pronounced advantages were fchown in favor of the graphite. The graphite content as Used in these tests was 0.35 of one per cent, of the weight of the oil. The comparison of oil and oil and graphite with pressure of seventy-five to one hundred pounds per square inch of projected area of the bearing showed that with the same pressure and temperature, a shaft can be run from 50 to 100 per cent, faster with the graphite in the oil than with the plain oil. The world was shocked a short time ago by the appear- ance in the daily press of an account of the utter annihila- 1 ion of one of the plants of the DuPont Powder Company. The account informed the world of the sacrifice of the lives of a number of its employes, the maiming and crippling of very many more, and of a property destruction extending over many square miles, and, further, that this was -caused by the overheating of a bearing. I believe I am quite within the truth when I state that this frightful catastro- phe might have been entirely obviated had that bearing been lubricated with Oildag. A thin film of graphite be- tween two metallic surfaces will prevent their seizing, cut- ting, or heating from friction. This fact can readily be drawn from the curves of Professor Benjamin's results that I have already shown you, and from the statements I have given you of the results obtained in the works of the General Electric Company, under the supervision of Mr. W. L. R Emmett. I have myself been making tests of the efficiency of my product as a lubricant for automobile gasoline engine cylin- ders, with the result that I have very materially reduced the consumption of oil. A Packard No. 30 automobile that I am operating ran 6,000 miles without the necessity of cleaning the spar plugs, and what is still more remarkable, without the necessity of grinding the valves. It would perhaps be too early to state positively that the use of Oil- dag in the gas engine valves would eliminate the pitting of the valve seats, but the results that I have so far ob- tained would rather indicate such a possibility. The sur- faces produced on the valve seats are remarkable, being much finer than is possible of attainment by any mechani- cal finishing, the graphite being incorporated in the body of the metal. The results that I have obtained in lubricating my auto- mobile have been largely corroborated by others. Thus, Mr. 264 PROCEEDINGS AMERICAN MINING CONGRESS F. W. Haskell, president of the Carborundum Company, who operates a forty-five horse-power Pierce touring car, has been experimenting with Oildag in cylinder lubrication, and he informs me that whereas his past practice, under the advice of the George N. Pierce company, has been to in- troduce a charge of five pints of cylinder oil into his crank case for every three hundred miles, he had, after introduc- ing deflocculated graphite in the oil in an amount equal to 0.35 of one per cent., operated the car continuously for six hundred and thirty miles, and upon removing the remain- der of the charge, after running that distance, he found that the quantity and quality was of a kind that would have justified him in continuing for a further unknown distance. Mr. W. K Densmore, formerly prominently associated with the interests of the Packard Motor Car Company, and now secretary of the Imperial Motor Company the local representative in the Buffalo territory of the Packard com- pany has found as the results of his experiments with Oildag in the cylinders that deflocculated graphite to the amount of 0.35 of one per cent, reduced the amount of oil necessary for perfect lubrication to the extent of one-half. While the possible improvements in the fitting and wear of the various parts of engines and machinery in gen- eral is a matter of great importance, unquestionably the greater value of this new product will be found in its re- duction of the oil consumption in lubrication. We probably have not fully realized the great consumption of lubricating oils, but this can be readily grasped when we remember that the transportation and manufacturing interests of the world are conducted on or with wheels running in bearings that must be lubricated. This requirement has been met for a number of years by the Standard Oil Company, and it is currently stated that the major part of their business is supplying this particular necessity, and we have but recently been pretty well informed as to the profits derived from it. In offering this new product to the w^orld, my pur- pose will be to share the resultant savings, which should be a matter of considerable magnitude, with the public. The tests that have been made by the experts I have re- ferred to, indicate that the oil consumption will be reduced over twenty-five per cent. I hope to make Oildag the lubri- cant of the bearings of the world. Will the Production of Gold in the World Keep Pace with the Increasing Demands of Commerce and Trade? BY DR. WALDEMAB LINDGREN, WASHINGTON, D. C. I assure you that I am not using an empty phrase when I say that I approach this subject with the greatest diffi- dence. In fact, I feel a great deal like a student who has been given a problem containing five unknown quantities, and only has data to assemble two equations. To a considerable degree this uncertainty and this difficulty is due to the fact that within this apparently inno- cent question lies concealed another problem, a prob- lem of political economy, and this involves questions concerning which I might say that no two investi- gators have ever been able to agree. Now if the question had been "Will the production of Coal or Iron keep pace with the development of our industries?" it would have been a good deal easier. Coal we need, and iron we need w r e are sure to need but gold the political economists are not at all agreed as to whether we need gold or not. There are a good many mining gentlemen who will tell us that gold is not necessary for the increasing business transac- tions in the business of the world. They Avill tell us that the gold production has no connection whatever with the progress of the industries. There are, however, a number of the students of political economy who hold a different opinion, and I think on the whole they must be right, al- though I am not qualified to pass on the subject. They hold that an abundant supply of gold is absolutely necessary un- der existing conditions, under the standard of values which the nations have adopted for the successful development of industries and trade, and they hold that the increasing production of gold which Ave have experienced the last ten to twenty years has brought about a depreciation of gold wMch needs expression in the increase in Avages and the in- crease in the price of commodities. I will accept that vieAv as probably the correct one, but the question then further arises, at what rate is the develop- ment in the industries and trade supposed to progress. The question is, of course, will the production of the gold of the world keep pace with increasing demands of commerce and trade? What are those increasing demands? In other words, at what rate are we going? I venture to say if we 266 PROCEEDINGS AMERICAN MINING CONGRESS keep going at the pace which we were setting last year, one thousand millions of gold a year would not be sufficient, but I shall assume that it means that the progress shall be normal, gradual and healthy. Now, I said that I approach the subject with diffidence. It is not on account of the questions of political economy. It is also on account of the fact that every man, like myself, who has tried to predict the AVO.rkFs production of gold, has failed signally. Some fifteen years ago when the production of the world was about $119.000,000 a year, we were gener- ally pessimists, and most of those who tried to predict, their predictions fell far short of the actual results, so that per- haps the result is now in 1906 we are apt to be a little too optimistic. We think a flood of gold is going to overwhelm us as it did in 1859 or 1856 when the gold from California and Australia began to pour into the market. The question, then, with these preliminary problems eliminated in a way is, what the recourses of the world at the present time are, and what they are likely to be this year and the next year, and possibly hereafter. We have to con- fine ourselves to that. I said that the gold production of the world in 1890 amounted to $119,000,000. In 1906 it amounted in round numbers to $403,000,000. That is quite a handsome sum. In fact, it is so large that it does not present any definite idea. It is difficult to attach an idea of value to such an amount of money. It is equivalent to 600,000 tons of gold a year. Now, that again is very well, but it is difficult to understand just exactly what it means. Perhaps I can give a better idea of the quantity of gold by telling you what I saw a few years ago in the Denver mint. There was a safe about 6x5x7, 1 should say, and it was lined with gold bars on three sides, two deep, and about five feet high. It contained $14,000,000 to $15,000,000 in gold. And incidentally, I as- sure you, it was a pretty sight. Now, the gold production of the world would amount to thirty such safes. You can imagine to better effect thirty such safes filled up with those gold bars one at the side of the other. The first thing we had better do is perhaps to try to find out where this gold comes from. First as to quality, as to source of; second, as to geographical location. According to a rough calculation, I have placed the amount of placet- gold in the world annually produced, taking last year, 1906, for an example, at $74,000,000. That is placer gold. The gold contained in copper and lead ores, not mined chiefly THE PRODUCTION OF GOLD 267 but partly for the gold they contained, would be about 119,000,000. Silver bullion containing a very small amount of gold would contribute about $10,000,000 or $12,000,000. The remainder, or $300,000,000, of gold comes from siliceous quartzose ores. There is a fact which we must keep in mind. It is not like silver. We cannot rely on having a steady production of gold as a by-product from copper and lead ore. Silver production is steady and does not increase in a startling manner. That is because most of it is a clear by-product. The mining of pure silver ores is comparatively a very small amount. There is a good deal of it in the bed, of course, but compared with the whole it is not of very great importance. So it is to the siliceous quartzose ores that we have to look for the gold supply. Now, then, looking over the geographical distribution of those $403,000,000 of gold I can first mention a miscel- laneous item, that is about $30,000,000. It comes from South America, Central America, European countries, the Orient, and a few other scattered places, in all amounting to $30,000,000, and there is no great reason for expecting much of a change in the immediate future from those countries. True, South America has always been supposed to be a po- tential source of gold. Very likely it is, but it is not to be supposed that there are any gold countries proper on the scale of California and Australia containing that metal, but in some way Mexico suddenly has increased her gold produc- tion in a short time, so that we may expect South America shall sometime furnish a similar amount. India contributes now about $10,000,000 or $11,000,000 only from one district practically, and that production is rather slightly decreas- ing by slow degrees so that there is not much to expect from there. The next item is Russia, and that is an important item. The trouble' about Russia is its gold production remains at about the same figure, and has remained for th^ last ten years. It is about $24,000,000. Russia contains, no doubt, vast amounts of placer gold, but political conditions make it very difficult to work there. This is the consensus of opinion of engineers who have been there and examined their resources. Aside from drawbacks of climate, the frozen ground, etc., the government does, not seem to en- courage the industry at all. True there are concessions, but they are coupled with so many embarrassing terms that they are very difficult to comply with, so although in fact Russia may vastly increase its gold output very likely it 268 PROCEEDINGS AMERICAN MINING CONGRESS will there is nothing much to be expected from that source in the immediate future. The next country we come to is Australia. Now that is very important. It produces about one-fourth or one- fifth of the total gold production of the world, and inci- dentally I call your attention to the remarkable and close analogy and similarity between Victoria, Australia and Cal- ifornia, in the quantities produced; in geological structure, form and nature of deposits they are most remarkably simi- lar, but it was Western Australia which yielded the pro- duct that caused Australia as a continent to become so prominent of late years in the gold production of the world. But the picture is not altogether so rosy. The different states have shown a decided decrease in the past years, in Western Australia itself, West Cambria especially so and there is no reason to suppose, unless remarkable discoveries appear, that Australia will increase its gold output. More likely it will decrease it. Last year the decrease was $3,- 000,000. It is predicted there will be a decrease of about $2,000,000 this year perhaps more. That disposes of Aus- tralia. Now we come to the more interesting feature perhaps to us North America. While our production in 1906 was $124,000,000 quite a considerable sum about $14,000,000 of that came from Mexico and that country seems likely to hold its own for quite awhile yet. The production of Mex- ico comes from two sources; first, that contained in the sil- ver bullion, and second, that contained in the gold mines of El Oro and a few others, but nearly half the production of Mexico hinges on the production of the mines of El Oro. Next comes the gold production of Canada. That is at present something like $12,000,000, and has shown a decreasing tendency due to persistent decrease in the pro- duction of the Klondike. It is true that it seems likely that within a short time because of the numerous quartz mines, which are now being located there, combined with dredg- ing the Klondike will once more regain its former position maybe not reach such startling figures, but will no doubt produce for many years to come. The United States last year produced about $94,000,000 and it has increased about $6,000,000 or $7,000,000 or $8,- 000,000 for the last three or four years. What is the pros- pect of gold production for the present year? The papers have been predicting the $100,000,000 mark will be reached. I doubt whether it will be readied this year. There are influences at work and have been at work for the last year THE PRODUCTION OP GOLD 269 which have, I fear, decreased the production. Copper pro- duction has decreased in the last few months, and that will decrease it some. The production of the Black Hills has decreased somewhat, and in California the production would hardly offset the troubles they have been having in the Mariposa region. Alaska has had its share of labor troubles, and on Alaska we have relied to make good this year to reach the |100,000,000 mark. But there is one state worth mention- ing, among the gold-producing states, Nevada. Nevada undoubtedly will increase its production this year just how much I am not in a position to say. You all know T and the papers claim, and no doubt a large part of it is true I think it will produce enough to offset losses in other states which will make our probable gold production this year about the same as last. For the next few years we will be able to maintain a similar production unless as I say, the troubles which are now feared, are coming to the front. There is one country we have not touched upon yet and that is Africa, The real crux of the gold situation depends on Africa. Africa produces about $134,000,000 gold at the present time. A part of it is from Rhodesia, and a small part from the Gold Coast Colony and Ashante on the Wes- tern Coast of Africa, but both those districts in spite of rather doubtful production seem to make good and seem to be in the way of increasing their production for the next few years. That is a point in doubt. Then we have the Transvaal. The Transvaal produced in 1906 |119,000,000 in gold. The question is, what will it do in the future? The whole problem really hinges on that. For 1907 the figures indicate with considerable certainty that the Band will produce $136,000,000 this year, conse- quently there will be an increase of $6,000,000. The in- crease in production in Africa will probably amount to about |9,000,000. Now, summing all this, we reach the tentative con- clusion of course entirely tentative that the production for 1907 will amount to $410,000,000; that is to say, an in- crease of $8,000,000 or $9,000,000 over the production of 1906. Now as to the future. In regard to the Transvaal and the Band, which as I said is a most important item, the future is somewhat shrouded in doubt. I have not the privi- lege of personal acquaintance with the field but from opin- ions of the men best qualified to judge, there are several influences at work which make the outlook a little bit doubt- 270 PROCEEDINGS AMERICAN MINING CONGRESS ful. Kerl, perhaps one of the best writers on the subject, says the following in a recent article: "If more money for further development is not forthcoming, the further devel- opment of the Rand will be greatly checked. The present number of stamps which is 8,000, will then not be increased. The whole of the gold field will be apportioned off relative to the present mills and stamps and the ore instead of being worked out at full pressure in thirty years, which will mean an increasing supply, will last at the present rate of ex- haustion for an indefinite period." Now it seems on the face of it that everything should be lovely down there, but unfortunately it is not. They have their labor troubles of the most pronounced and diffi- cult character, and they have difficulty in procuring the necessary capital for their further work. Some of the "out-crop" mines, as they are called, will soon be exhausted and big shafts must be sunk, big hoists erected, and lots of money will be needed, and in the present temper of the in- Vesting mining public in England, it seems rather doubtful whether that amount of money will be forthcoming. There are two finalities really dependent upon the im- portant developments on the Rand. One is that the gold pro- duction will be maintained at about the present rate for a number of years is about as far as we can say, and the other is that money will be provided for the develop- ment of the Rand industry, that labor troubles will be avoided, and then the production of the world will no doubt be greatly increased during coming years. I must once more call your attention to the uncertainty involved in new discoveries coming right along. You see what a difference the Nevada gold fields have made. What a difference the Fairbanks discoveries. It is all a very un- certain quantity when it comes to future discoveries. We may not find anything of value for a number of years, and again some stars of gold mining may arise on the horizon increasing our gold supply far beyond our estimates. There is one more subject on which I would like to touch, and that involves a question in political economy in a way. Students of Political Economy believe that gold depre- ciates because it is produced in such large quantities, and that finds its expression as I have said in increasing the rate of wages and increasing cost of commodities. Now I wish to call your attention to a fact. I am not the first one that suggested it. Mr. Roberts, the Director of the Mint suggested it in one of his reports, that if this is true, it is apt to act as a very decided agent or automatic THE PRODUCTION OF GOLD 271 regulation on the gold output of the world. If wages raise continually because gold is getting cheaper, more plentiful, some of our gold mines have got to close. It was more or less a political discussion until some things happened a few years ago that made it appear that the theory was well founded. Take for instance, what happened in the Angeles camp in California. The big mines were working on big masses of low grade ores and made some profit. This year there was a strike. More wages were demanded and the op- erators decided they could not pay them. The consequence was, the mines closed down. Consequently the output of California will be much curtailed because of that. Now the same thing is likely to happen, especially on our low grade properties which increase to a great extent the gold production, such as the Treadwell mines in Alaska, the Black Hill mines and others. On the other hand, in opposi- tion to this, stands, of course, the possibilities of cheaper prices, the possibilities of increased labor-saving appliances, and all those products of the ingenuity of man. Just what the sum total of all this will be is of course very difficult to predict. That, then, would be about all that I could tell. I am sorry it is so little. So that to sum up the prospects, 1907 will show a further increase in the production of the world from |403,000,000 to about $410,000,000. Regarding what will happen after that, the question is very much involved. It seems likely, as I said, that production will be maintained at an increasing rate, but there is also the possibility that we will only be able to maintain present production for a number of years. Conservation of the Nation's Mineral Resources BY DR. J. A. HOLMES, WASHINGTON, D. C. Waste as a National Habit. The world recognizes Americans as the most wasteful of peoples in the utilization of their resources. Certainly no nation received so rich an inheritance as did the United States in its combination of soil and forest and climate and .streams and mineral resources. The nation has literally grown up in luxury. Out of the very abundance of thes resources we have de- veloped an indifference to economy and the habit of waste. We have destroyed our game for its hides and horns; our forests for their tan bark, or a pittance of the lumber they would yield. Meanwhile with a thoughtless indifference, we have allowed the forest fires to burn more lumber than we have used in the building of homes and in the industries. Meanwhile, through the destruction of the forests about the sources of important streams and the improper cultivation of these sloping lands, the fertile soils are washed away from the fields where they are needed and deposited in the streams and in the harbors of the country from which their continued removal will cost an enormous sum. We are thus gradually, but surely destroying the beauty and wealth of our scenic and health-giving moun- tains and the value of our great water resources for power, for irrigation, and for navigation purposes. In spite of our thoughtless waste, this fertile soil and genial climate have furnished food enough for the nation and to spare; but so luxurious are the habits developed by this super-abundant production of food that, as is sometimes said, we waste food enough to supply the wants of another nation as large as our own. I The Waste of the Nation's Mineral Resources. Water, in some respects the most valuable of ail our mineral resources, as a source of power, is being wasted day after day and year after year to the extent of millions of horse-power. As the essential factor in all irrigation work, it is being wasted by use to excess in many instances; but on a much larger scale and to the value of hundreds of millions of dollars it is being allowed to go to waste year after year by not being used at all. And in a number of CONSERVATION OF THE NATION'S MINERALS 273 localities, the limited supply of artesian water available for irrigation and other purposes is being wasted on a consid- erable scale by being allowed to flow continuously when not needed, or in excess of actual need. Other mineral resources are being wasted on as large n scale as is true of water, but their waste is even a more serious matter, for the reason that the supplies are not reproduced, as in the case of water, but when once ex- hausted, are exhausted permanently. No better illustration of this fact can be found than is seen in the deserted mining camps, deserted after the mines have become exhausted. In- connection with metallurgical processes there is often a waste of materials, which also prove injurious, such as the large quantities of sulphur and arsenic vapors that are turned loose from the chimneys of the modern smelters. This waste is largely preventable, and should be prevented, for the double reason that these materials have a com mercial and economic value, and they are destructive of adjacent vegetation. This destruction of vegetation allows the rains to erode the bare land surface and deposit the transported soil into the adjacent streams. The waste in metal mining and treatment of gold, sil- ver, copper, lead, zinc, iron, and other metallic substances, under old time practices, was frequently as high as from twenty to fifty per cent. ; but the modern mining, milling and smelting processes have, of late, been developed along the lines of increased efficiency. Under these more modern practices, waste is now being reduced to from five to usually less than twenty-five per cent. Modern chemistry and metallurgy are also developing ]>j j (n esses for the treatment of low grade ores which formerly wf-re left in the mines or on the dumps, or were used in the construction of walls, or public roads, just as they have developed processes for the profitable re-treatment of the enormous piles of tailings, accumulated under the cruder methods of treatment practiced only a few years since. In the mining and treatment of some of these metalliferous ores, however, there is still great waste, and an opportunity for decided improvement which in time is sure to come, as deposits of new material become scarcer and mining oper- ations more expensive. In the mining and utilization of miscellaneous min- erals existing practice is a great improvement over that of the recent past, and the future is full of promise. Thus, in the utilization of the mica deposits, formerly only cut sizes of mica were used; now the smaller scales are being col- 274 PROCEEDINGS AMERICAN MINING CONGRESS lected, ground and used for a number of purposes. The former waste in the quarry is now being largely used for macadamizing public highways, for mixing with cement and -sand in the construction of concrete buildings, or for use in a variety of other ways. The waste piles about: some of the coal mines, and other mines of the past, are 1 eing taken back into the mines, and new waste materials are being retained in the mines for the building of supporting pillars, and in filling space otherwise left open through the extraction of the mineral deposits; thus greatly diminishm the need for timber and permitting a much larger extraction of valuable material from the mines. Waste in the Utilization of Fuels is a problem that in an especial manner concerns the general public, for the reason that the fuel supplies are coining to be regarded, like the water and the forests as public utilities. They furnish our heat, light and power; they serve as the basis of industry and of transportation, and are, therefore, absolutely neces- sary to the welfare of the nation's industries and commerce. But, notwithstanding their vast importance, it is in the mining and utilization of these fuel resources that we prac- tice the greatest waste. The waste of gas and petroleum illustrate this practice. Persons now living can recall when the great gas wells were seemingly inexhaustible in Ohio, Indiana, West Vir- ginia and Pennsylvania. They have seen the innumerable gas flames pointing skyward day and night. In many of those fields, this gas supply was wasted in a manner well- nigh criminal, and the exhaustion has been so complete that there is no ground for belief that other supplies of gas will be discovered in many of those special regions. Petroleum in the past has, in like manner, been wasted, both in enormous overflows and the burning of material. In the early days of petroleum there was also an enormous waste through the failure to save the gasoline and other bi -products, which now have great value. Here, however, as in the case of the metals, the modern improved practice is doing much to lessen this enormous waste. This problem is one of especial importance to the Pacific Coast states, owing to the absence of adequate coal supplies. Coal is now the world's greatest fuel. Wood has been used extensively in the past, especially for domestic purposes. Gas and petroleum continue to have extensive local use, and in power and light developments, water power will play an important part in some portions of the country. Alcohol and the solar energy may contribute their mite to the na- CONSERVATION OF THE NATION'S MINERALS 275 tion's power, but the world's great centers and industries of today, and, as far as we definitely know, of the future, must look to coal as their main source of heat, power and light. Notwithstanding its recognized importance, its mining and use are subjected to large waste. In the mining oper- ations at the present time, nearly one-half of our total coal supply is left under ground, partly as pillars to support the roof; partly as coal of inferior quality, only the best part of the coal from the beds being removed in many cases, and partly due to the fact that the workings out of lower beds of coal first, in some cases breaks and renders impracticable the subsequent mining of the adjacent higher coal beds. Of the coal actually used for power development, usually not more than five per cent, is converted into actual work, the remainder being consumed in the making of steam and smoke, and in overcoming the friction and inertia of the engine, shafting, etc. Of the coal used in . railway oper- ations which includes nearly one hundred million tons, or nearly one-fourth of the total supply of the country not more than five per cent, is transformed into actual work of pulling the trains. Of the coal used in the development of electric lights, usually less than one-fifth, and often less than one-seventh, of one per cent, is actually converted into light; the remaining ninety-nine and four-fifths, or six-sev- enths, per cent, being consumed in the various preliminary formations of energy. This waste is appalling, and every possible means should be adopted for reducing it to a minimum, in order that our fuel resources may suffice for the future as well as for the present needs of the nation. What Our Coal Represents. In the plant life of the earth our coal fields represent vast areas of vegetable matter, accumulated during the past periods in the earth's history, later and gradually trans- formed into coal. Every foot of the thickness of this coal may be considered the equivalent of many feet of the origi- nal vegetation. Of the sun's light and heat our coal represents enormous quantities transformed and stored in this vegeta- tion, and further concentrated in the coal. It is the earth's great storage battery of solar energy. In time this coal represents the unmeasured ages of the past, the thousands and millions of years before man came into existence, during which this solar energy was being stored and concentrated in different parts of the earth's crust. In the nation's welfare 276 PROCEEDINGS AMERICAN MINING CONGRESS it represents the basis of the heat, power and light upon which the nation's comfort and the nation's industries and the nation's commerce depend. How the Duration of Our Coal Supply Can Be Extended. During the past year the country produced and used more than 400,000,000 tons of coal; during the ten years pre- ceding the consumption was nearly three billion tons which approximates the aggregate consumption of the sev- enty years preceding. (It is estimated that by 1950 the population of the country will aggregate over 200,000,000.) It is expected that the rate of per capita consumption of coal for domestic, for manufacturing, and for transportation purposes will continue to increase largely, as this is in ac- cord with the logical development of the country. These considerations lead to the conclusion that this rate of increase in our coal exhaustion is not likely to di- minish greatly, and might at times become larger, unless we may find more efficient methods of mining arid using coal. If this increasing rate does continue, it is estimated the nation will have used the larger and more available part of its coal supply before the end of the next century. At that time there will, of course, still be much coal under- ground, but it will be low in grade, or much higher in price, owing to its greater depth; mining will be more expensive and more dangerous. In considering the possibilities of extending the life of our coal supplies, so as to meet the needs of the future as well as those of the present, we must therefore reckon with the continuance of these rapidly growing needs of the country, and our possibilities of success in meeting these on a rational basis will be along the following lines: (1) The prevention of waste in mining. The coal left in the mines as pillars to support the roof, together with that left under ground because of its being inferior, or low grade in quality, will range from less than ten to more than seventy-five per cent, of the total, these extreme figures rep- resenting unusual conditions. Add to these the loss arising from the breaking up of closely overlying beds of coal owing to the previous removal of the lower beds and the caving in of the overlying strata, and we have a' total waste which will aggregate on the average but little, if any less than fifty per cent, of the possible total available supply. It is be- lieved that an increasingly large part of this waste will be found preventable. CONSERVATION OF THE NATION'S MINERALS 277 (2) We must use coal with greater efficiency. The small percentage of the heat units in coal that are actually converted into work or light, as stated above, indicates the urgent need of improvement along these lines. The investi- gation now being conducted by the Technologic Branch of the IT. S. Geological Survey, indicates the possibility of in- creasing these fuel efficiencies by two or three fold, and suggests still greater possibilities which will soon be tested. These investigations also point to the extensive future use of dirty low grade coals now left underground or thrown away. The future along these lines is full of promise, but the solution of these problems calls for extended further investigation. (3) We should be looking out for possible substitutes for high grade coals. There will be, in the near future, a larger use of running waters for power and light develop- ment, and such developments should be encouraged. There will also continue a diminishing development ol* heat and power through the use of wood; and the planting of new forests should everywhere meet with favor. In the New England, Atlantic and some of the middle northern states, there will be some utilization of the peat beds for similar purposes, and investigations should be made to dis- cover the most efficient ways of utilizing these deposits. A limited future use of alcohol made from wood and farm products for heat and power purposes, seems certain, and it is to be hoped, but not certain, that cheaper methods may reduce its cost to come within reach of commercial practice, say twelve cents or fifteen cents per gallon. Petroleum and natural gas will long continue as large local, but in a measure, temporary contributors to the com- forts and industries of the nation, and our supplies of these should be efficiently utilized. It is occasionally suggested that the heat of the sun may be stored from day to day In sufficient quantities for continuous power development; but the suggestion has, as yet, too indefinite a basis to permit of its serious consideration in the present connection, though this is worthy of serious investigation. These considerations are all important, but at the pres- ent time the sum of all these possible substitutes in the na- tion's supply of heat and power and light, cannot now be expected to seriously lessen the rate of increase in the na- tion's enormous demand for fuel; and we must revert again with renewed emphasis, to the necessity of lessening the waste, and increasing efficiencies in the utilization of our coal supply. 278 PROCEEDINGS AMERICAN MINING CONGRESS How Can These Reforms Be Brought About? (1) Let us find out all the facts in the case. The investi- gation now under way by the government should be ex- tended until every phase of these important problems has been carefully inquired into and definite facts have been obtained. (2) This information should be placed before the peo- ple of the country in such form as to be readily understood. Both the producers and users of fuel can be expected to co-operate in remedying the existing evils as fast as com- mercial conditions will permit; but should legislative meas- ures prove necessary at any time, the reliable data thu* obtained will serve as a guarantee that such legislation will be wisely directed. Why the Fuel Resources Should Be Conserved. (1) Their supply is limited, and, considered in connec- tion with the life of the nation, the early exhaustion is cer- tain, unless the greatest care be exercised. (2) The exhaustion of mineral resources is a perma- nent exhaustion. One year's wheat crop, when consumed, is replaced by that of the succeeding year. The forest re- sources of one period, when exhausted, under favorable con- ditions, may be replaced by a succeeding forest within a few decades or centuries. A water supply of one day, or of one period, under favorable conditions, may be continued in- definitely by nature's repeating processes, but when a de- posit of coal, or oil, or nature's gas, or iron ore, has been ex- hausted, this exhaustion, as far as we are concerned, is per- manent. (3) The mineral resources of the country belong to the future, as well as to the present generation of men. They should be used, but not Avasted. The creation of these deposits required thousands or millions of years. Their present, so-called owners, had no part in this creation of resources, and have no real rights to them beyond present actual needs. (4) Let us riot forget that these mineral fuels, which we call our own, represent in concentrated form, a storage battery of the sun's heat and light, accumulated during countless ages that passed before the human race came into existence. Let not the men of the present generation com- mit the unpardonable sin of Avasting the necessary birth- right of the generations yet unborn. This nation must have a, great future as well as a great present. CONSERVATION OF THE NATION'S MINERALS 279 (5) The fuel supplies of the country will be sufficient for both present and future needs, if we stop their waste and practice increasing efficiency in their utilization. There^ can be no suggestion looking to the curtailment of present' needs. And these needs will increase in proportion as the nation grows in population, and in the extent and diversity of its industries. And while the present generation has a right to use the fuel which it actually needs, it is bound by every principle of right and justice, not to w r aste this precious heritage. (6) The future ascendency of American industries will depend largely on our manufacturers being able to secure cheap fuel. The value and cost of labor will never be reduced in the United States to what they are in foreign countries; but this fact renders all the more essential, in the struggle for industrial and commercial supremacy, that the manufacturers of this country be able to obtain fuel supplies cheaper than they are to be had in other countries. We cannot continue this wasteful consumption of our fuel resources, and at the same time perpetuate the supply of cheap fuels. The only solution of the problem is that we must learn to use our fuels more efficiently; and we must stop this enormous waste. The people of the United States consumed during the past year about 415,000,000 tons of coal besides large quan- tities of- oil and gas and wood. The total cost of this fuel in the furnaces was not less than |2,000,000. The future growing scarcity of wood, gas and oil, and the Increasing cost of mining the coal as the surface beds are exhausted and the mines become deeper and more dangerous, will naturally increase the aggregate expenditure for fueJ, even faster than the tonnage increases. But the welfare of the nation demands not only that the future has a coal supply, but that the cost of this supply be kept as low as possible. (7) The United States need not expect to draw future coal supplies from other countries, except for limited use along our Pacific coast; as no other country can spare from its own reserves coal enough to meet any appreciable part of our growing needs. (8) In every civilized country, the conservation of fuels and other great resources of public utilities, is properly coming to be regarded as a national problem, because in every country these materials serve as a basis of national welfare. The individual citizen looks to the present. He sees little beyond his individual interest of today. The na- tion while helping the citizen today, must safe-guard the 280 PROCEEDINGS AMERICAN MINING CONGRESS welfare of the citizen of tomorrow, by a judicious conserva- tion of these resources, which, in reality, belong not to the individual, but in a higher sense, to the nation. The Fuel Problems in the Trans-Mississippi States. In this great Trans-Mississippi region, seven states ana one territory contain practically no coal. But there are one territory and twelve states that together contain 260,000 square miles of coal fields, or twice that area embraced in the coal fields east of the Mississippi. And although these more eastern fields now produce more than five and a half times as much coal as do the Trans-Mississippi fields, yet the production of the latter is in its infancy and may be ex- pected to increase largely. Many of the western coal fields are at a 'double dis- advantage in supplying the needs of a growing nation, ow- ing to (1) the absence of high grade coking coals that would serve as a basis of iron and steel industries and (2) the large portion of these far western coal fields in which the coal is lignitic or high ash or otherwise inferior in quality. But in a number of these Trans-Mississippi states as in the splendid young commonwealth of Oklahoma, there are ample supplies of coals of good quality for general pur- poses; and the time is near at hand when we shall see in them a growth of varied manufacturing industries as re- markable as has been their development in mining and agri- culture. And even in the more western states, where the low grade and lignitic coals are more abundant, such investiga- tions as are now being conducted by the government, prom- ise a future efficient use of these coals, for power develop- ment which will avoid the cost of their transportation by locating power plants at the mines and transmitting the developed electric power to manufacturing centers on the lines of transportation. For the full development of the greater West the growth of manufacture must now follow in the wake of mining and agricultural industries, and this they are certain to do if the power supply proves adequate. The Trans-Continental lines must be increased, double - tracked, and over the mountains they must be electrified, so that their full capacity may be used in transporting articles of commerce, instead of in carrying fuel with which to feed their locomotives. For this greater development, abundant and cheap power are essential. Every stream of water must be util- ized to its full capacity, for irrigation, for power and for CONSERVATION OF THE NATION'S MINERALS 281 navigation. Every coal field and every oil field must be made to render its most efficient service. Not only should there be no fuel wasted, but every variety of fuel should be used for the purpose for which it is best adapted and most needed. For, otherwise, in this West, where the fuelsupply is inadequate, even for the present needs, all unnecessary Avaste is unbusiness-like and criminal. And even in the states where we boast of "exhaustless resources," the con- tinued wastefulness of a few generations will render im- possible the greater future to which the nation is entitled. The doctrine that self preservation is the first law of nature is not only as applicable to the nation as it is to the citizen, but the brave and pat riotic individual has ever been willing in time of war to give up his life, if need be, in order that the nation might live. We are now dealing with problems that have to do with the life of the nation in time of peace. These are prob- lems, however, which deserve and need, for their proper so- lution the highest type of patriotism, American business sense and statesmanship. Lead and Zinc Resources of Missouri BY E. R. BUCKLEY Ph.D., DIRECTOR MISSOURI BUREAU OF GEOLOGY AND MINES. The world's production of spelter in 1900 amounted to 775,871 tons. Of this amount the United States produced 224,770 tons, or 29 per cent", of the total. Of the total pro- duction in the United States the Ozark region, comprising parts of Missouri, Kansas, Arkansas and Indian Territory, furnished 136,051 tons, or 60.6 per cent. Missouri alone produced 58 per cent., or nearly 17 per cent, of the world's output. In 1906 the United States produced 347,695 tons of pig lead. During the same year the Ozark region produced 113,- 107 tons, or 32.5 per cent, of the total. Of this amount Mis souri produced 111,075 tons, or 31.9 per cent. In the production of zinc Missouri ranks first; in the production of lead Missouri ranks second, being surpassed only by Idaho. In the combined production of lead and zinc the output of Missouri is greater than that of Idaho, the next state in production, by 123,733 tons. In other words the combined output of lead and zinc. from Missouri is more than double that of Idaho, and nearly equals the combined output of Idaho, Colorado and Utah, the three states rank- ing next to Missouri in production. In 1906 and 1907 there were in the neighborhood of 800 shafts being operated in the Southwestern Missouri Lead and Zinc District. In the Southeastern or Disseminated Lead District there are in the neighborhood of fifty shafts, of which forty are in almost continuous operation. The shafts are of large dimensions, two or three compartment, and the mines which they connect will soon be supplying mills having a combined daily capacity of 10,000 tons of ore. Beyond the limits of these well known districts, skirt- ing the Ozark region to the north and south, are numerous mines and prospects which have been operated occasionally during the last forty years. Some of these, as the Virginia and Bellew in Franklin County, the Renault Mines in Wash- ington County, the Fortuna mines in Moniteau County, and the Valle's mines in Jefferson County, have been rich and productive. LEAD AND ZINC RESOURCES -OF MISSOURI 283 Iii addition to the lead and zinc mines the Ozark region and the St. Francois Mountains have produced millions of tons of iron ore. The mines are still being operated. This region is the greatest producer of barite in the United States. Copper has been and is being produced in this region and an attempt is being made to refine the nickel and cobalt matte obtained in the smelting of the lead ores of the Madison County area. Not only does the Ozark region excel in the production of lead and zinc, but she also excels in the quality of the ores and metals produced therefrom. The zinc blende mined in this region hovers constantly about the 60 per cent, mark, while the galena seldom assays less than 80 per cent, metal- lic lead. The Missouri soft pig lead is known the world over as being of superior quality. The -lead and zinc mines of the Ozark region are sur- rounded by areas rich in mineral fuels. The marvelously productive gas belt of Kansas and the extensive coal fields of Illinois are the nearest fuel regions to the lead and zinc mining districts, for which reason the ores mined in Mis- souri are smelted chiefly in the neighboring states of Kan- sas and Illinois. If an apology be needed for entering into a somewhat detailed discussion of the geology of and genesis of the ores of this region, I believe it will be found in the foregoing brief statement of the importance of the area. The Geology of the Ozark Region. In the southeastern part of the state of Missouri there are areas of ancient Pre-Cambrian igneous rocks, chiefly granite, rhyolite (porphyry) and diabase. These rocks form hills and ridges known as the St. Francois Mountains. The highest of these hills has an elevation of 1,800 feet above sea level, which is about 900 feet above the general level of the country in which they occur. These rocks contain small percentages of the metals, gold, silver, lead, zinc, copper, nickel, cobalt and iron, as shown by chemical analysis. Occasional veins of galena and zinc blende occur in these rocks but thus far they have not been successfully exploited. Several quartz veins and diabase dikes have been prospected for gold, silver and other metals and although they show small percentages, the re- sults have not been especially encouraging. It appears that there has been very little secondary concentration, which is so important a factor in producing ore bodies of commercial importance. 284 PROCEEDINGS AMERICAN MINING CONGRESS The* practically unaltered igneous rocks contain small percentages of lead and zinc and it is believed that the original source of all the lead and zinc minerals of our lead and zinc mining districts is the igneous rocks which once formed a part of the hills now known as the St. Francois mountains. The Ozark region is a dissected plateau occupying a greater part of the southern half of Missouri and portions of Kansas, Indian Territory and Arkansas. The St. Fran- cois mountains are located on the eastern flank of Ibis up- lift, the name being applied only to the hills of pre-Cain- brian, igneous rocks. A greater portion of the Ozark region is occupied with formations belonging to the Cumbrian and Ordovician series. Flanking the regioti on all sides are formations belonging to the Silurian, Devonian and Car- boniferous. Small isolated areas of Mississlppian and Pennsylvanian strata are irregularly scattered over the Ozark plateau. The Cambrian and Ordovician formations .consist chiefly of dolomitic limestone, sandstone and chert. The Silurian consists chiefly of limestone, with a. little shale; the Devonian is mainly limestone and shale; the Mis- sissippian is chiefly limestone, cherty in places with some shale and a little sandstone; the lower portion of the Peiin- sylvanian is chiefly shale and sandstone, while the upper portion is chiefly limestone and shale. The different formations in this portion of the state were not laid down in an unbroken succession. Some of them are separated by well marked unconformities. The best defined and most important of these unconformities occur at the base of the LaMotte sandstone Avhich rests upon the pre-Cambrian igneous rocks; at the base of the Missis- sippian, which rests upon several of the older Silurian, Ordovician and Cambrian formations, and at the base of the Pennsylvanian which rests on the Mississippian and other older formations of the Ozark region . As a result of the uplift of the Ozark region, the beds have been in some places slightly folded, faulted and every - Avhere prominently jointed. The faulting in this region oc- curs chiefly in the eastern portion of the Ozarks and 'm close proximity to the St^ Francois Mountains. There is some faulting in other portions of the region, but it is not con spicuous and seldom associated with deposits of lead and zinc ore. The following is a geological section of this region showing the horizons in which the lead and zinc ores chiefly occur in this state; LEAD AND ZINC RESOURCES OF MISSOURI 285 QUATERNARY Alluvium lowan Loess Unconformity TERTIARY-LAFAYETTE Gravel, Sand and Clay. Unconformity Missourian Occasional crystal of zinc blende PENNSYLVANIAN Des Moines Zinc Blende and galena, chiefly in isolated areas. Unconformity. MISSISSIPPIAN Chester { Tribune I Cypress St. Louis f Ste. Genevieve of. i St. Louis Occasional crystal zinc blende Spergen Warsaw . f Birdsville Keokuk ] f Ore bearing for- Also called [ mation of the "Boone" -(south west Mo. | lead and zinc Burlington J i district. Chemung or Kinderhookj Chouteau Hannibal Louisiana Occasional zinc I blende crystals DEVONIAN Bushberg Sulphur Sp'gs{ Glen Park Unnamed shale Grand Tower, (Hamilton and Onondaga) Clear Creek (Oriskany) SILURIAN Bailey (Lower Helderburg) Niagara (Bainbridge) Occasional crystal of zinc blende. Girardeau (Cape Girardeau) 286 PROCEEDINGS AMERICAN MINING CONGRESS ORDOVICIAN Hudson River Shale (Thebes) Kimmswick [Receptaculites] Plattin [Trenton] Joachim I St. Peters Unconformity f Jefferson City Some lead and zinc ore UPPER CAMBRIAN A number of mines. Moniteau Co. Roubidoux Some lead and zinc ore. Small mines in Central Ozark region Gasconade Some lead and zinc mines in Cen- tral Ozark region Unconformity Proctor Eminence Potosi Lead and zinc. Washington and Jefferson counties Unconformity Elvins [Doe Run Some zinc crystals -j Derby Some galena crystals [Davis MIDDLE CAMBRIAN Bonneterre Formation in which the Dissem- inated Ore occurs. St. Francois and Madison counties Lamotte A little galena near the top Unconformity HURONIAN Pilot Knob Unconformity. Diabase Some galena and zinc blende LAURENTIAN 1 Granite Veins of galena Rhyolite Traces of galena by analysis LEAD AND ZINC RESOURCES OP MISSOURI 28Y Origin of the Lead and Zina Ores of Southwest (Joplin) District. For a number of years the origin of the lead and zinc ores of this district has been the basis of a widespread dis- cussion by Economic Geologists and Mining Engineers. The geologists of the U. S. Geological Survey have contended that these ore deposits were the result of a first concentra- tion through an artesian circulation and a secondary con- centration or enrichment through downward circulation. This theory was originally based upon the supposed widespread occurrence of faults and fault breccias asso- ciated with the ore bodies through which it was possible for the water circulating through the Cambro-Ordovician for- mations below to 'reach the surface. According to this theory the immediate source of the lead and zinc minerals was thought to be the Cambro-Ordovician formations which constitute a major portion of the Ozark region. As a result of the investigations of the Bureau of Geology and Mines of this state, it was recognized that be- tween the Mississippian and Pennsylvanian series, there existed an unconformity co-extensive with the areas ex- amined. It became clearly evident that those who had mapped extensive faults in this district had in some manner been mistaken. The faults mapped in the Aurora, Joplin and Granby areas are clearly planes of discordant bedding due to the unconformity between the Mississippian and Pennsylvanian series. In some cases there is evidence of movement between the Pennsylvanian and Mississippian series within or adjacent to the so-called breccias at the base of the Pennsylvanian. A detailed examination revealed the fact that these movements were small, although frequently of sufficient intensity to develop slickensides. Later inves- tigations of the United States Geological Survey have con- firmed our observations that faults of sufficient magnitude to be considered in connection with "an artesian circula- tion" theory of the origin of the ore deposits do not exist in this district. The greatest faults recognized in the Southwestern and Central Ozark districts are in no way con- nected with the deposits of lead and zinc ores. The greatest faults positively recognized in this district do not have a displacement of over 25 feet. It follows as a corollary that there are no fault breccias in this district. The so-called breccias are in part basal con- glomerates and in part a result of solution. The different types of breccias in this district are so intimately associated as to make a separation or classification a matter of some difficulty and greater uncertainty. The absence of faults 288 PROCEEDINGS AMERICAN MINING CONGRESS and fault breccias argues that very little of the water circu- lating through the deeply underlying Cambro-Ordovician formations reaches the superficial zone in which the ores occur. Analyses made in the laboratory of the Bureau of Ge- ology and Mines and elsewhere indicate that the waters from the Cambro-Ordovician series obtained from deep wells, do not contain an appreciable quantity of zinc. On the other hand, the mine waters which represent chiefly the downward circulation, near the surface, contain a consider- able quantity of both lead and zinc, chiefly the latter. Some of the wells from which water w r as obtained for analysis are not cased and consequently the traces of lead arid zinc- detected may have been due to the seepage of surface waters into the wells. Mr. George Waring of Webb City has made repeated analyses of the mine waters from the upper super- ficial zone of 150 to 200 feet and finds that they contain from 0.4 to 2.5 grams per liter of zinc. It is also interesting to note that the quantity of magnesia in the water from the deep wells is much less than that obtained from the mine waters. If, as contended, the original source of the mag- nesia, lead, zinc and iron were the deep-seated ground waters, represented by an artesian circulation, it is remark- able that these waters at the present time do not contain measurable quantities of the metals other than magnesium. The practical absence of lead and zinc in the waters from deep wells, and the absence of brecciated or fault zones which might provide avenues of communication between the Cambro-Ordovician and the surface argue against the direct derivation of the lead and zinc from the magnesian lime- stones of the Cambro-Ordovician series by an artesian circu- lation. All the evidence which we have been able to gather indicates that the ore bodies from the first to the Nth con- centration are the result of converging, downward circu- lating waters, the oxidizing portions of which carried the metallic salts and the reducing portions the organic matter which provided the condition necessary for precipitation. It is believed that the early concentration of the zinc blende was contemporaneous with a deposition of at least a part oi the black flint. Both were deposited after the Mississip- pian-Pennsylvanian erosion interval. The organic matter which gives color to the flint was derived from the bitumi- nous shales, being carried into the broken residual flint beds and the flint conglomerate by downward circulating waters, which probably also carried silica either in suspension or in LEAD AND ZINC RESOURCES OF MISSOURI 289 solution. When the precipitation of the silica took place it evidently carried down with it very finely pulverulent car- bonaceous or asphaltic material with both of which the shales were impregnated. The bituminous and asphaltic materials which now impregnate the flint "breccias" and the Mississippian limestone were also derived from the over- lying bituminous shales of the Pennsylvanian, being carried downward in advance of the erosion which removed these rocks, either by gravity alone or by gravity assisted by water. Contemporaneous downward circulating waters carried lead and zinc salts which were precipitated with the silica and carbonaceous matter, forming what is known as the disseminated black flint ore. Since a part of the black flint and the dolomitic spar were contemporaneous deposits, it is very probable that some of the zinc blende associated with the spar belongs to an early stage in the process of concentration. The evidence at hand goes to show that the lead and zinc were probably derived from the overlying Pennsyl- vanian shales and limestone being carried downward as they were disintegrated and eroded. There are numerous deposits of lead and zinc in the southern part of the state where one can scarcely account for their presence except through the disintegration and decomposition of the Penn- sylvania shales and limestones. In Miller County alone there are eight or ten isolated areas of Pennsylvanian shale in which galena or zinc blende, sometimes both, are found. These minerals either occur along the contact between the shale and the underlying magnesian limestone or filling, jointing and bedding planes within the shale. There are many similar occurrences of zinc blende and galena in the areas of Carboniferous shale and coal in Moniteau, Cooper and other counties in the central part of the state. The ground water passing through these isolated areas of Pennsylvanian shales and coal has had no special avenues of communication with the deep underground circulation. The ore bodies do not extend beyond the influence of the so- lutions passing downward or laterally through the coal pockets. Every condition leads one to believe that these lead and zinc minerals have been brought to their present position by downward circulating waters. Everywhere through the Pennsylvanian strata there are seams and crystals of iron sulphide, and were we to make careful chemical analyses of the shale and coal tribu- tary to this district it is thought that there would be found 290 PROCEEDINGS AMERICAN MINING CONGRESS as great a quantity of lead and zinc as has been found in the unaltered dolomities of the Cambro-Ordovician. Some of the lead and zinc may have been originally de- posited with the limestone in which the ore bodies now oc- cur, but analyses, although they may show the presence of lead and zinc, are not a demonstration that these metals were introduced at the time the sediments were laid down. The samples of limestone analyzed may be from a locality distant from any known ore body, and the rock may con- tain no particles of galena or blende of sufficient size to be detected with the naked eye or with a hand lens, yet these specimens may contain lead and zinc introduced since the rock was formed. Neither the size of the lead or zinc individuals nor the locality from which the specimens are collected can be used as evidence that the zinc blende or galena were original con- stituents of the country rock in which the ore bodies now occur. Galena and zinc blende occur everywhere throughout the Mississippian and Cambro-Ordovician series in Missouri, although there are comparatively few areas in which these minerals appear to have been sufficiently concentrated to constitute workable ore bodies. If one were to have before him a map of the Cambro-Ordovician and Mississippian of Missouri, upon which were located all mines and prospects from wluch galena and zinc blende have been obtained, he would certainly doubt very much the ability of any one to select samples which he could state positively contained galena or blende which were deposited at the time the sedi- ments were laid down in the ocean. Under certain conditions the stream waters entering the ocean during any of the geological periods might have carried lead and zinc in solution. Given proper conditions for the reduction and precipil ation of these metallic salts, the sediments being laid down at the bottom of the ocean into which these waters flowed would certainly contain minute quantities of lead and zinc. In the geological history of this state we find no condi- tions more favorable to the deposition of the metallic salts contained in the ocean than those which existed during the Pennsylvania^ period. Everywhere there must have been conditions simulating those by virtue of which these metals are now being concentrated within the Mississippian forma- tion. The occurrence of galena, blende, pyrite and narcasite the latter two in great quantities within the Pennsyl- vanian, in many parts of the state, is strong evidence that LEAD AND ZINC RESOURCES OP MISSOURI 291 the metals were thrown down abundantly in some portions of the Pennsylvania!! sea. It is a noticeable fact that pyrite is most abundant in the coal and shale where they occur near what is supposed to have been the shore line. It is more than probable that the oxidizing waters from the lantf area, at that time, precipitated the metallic salts, which they had gathered in their journey, before traveling very far from the shore. This would tend to localize, within the Pennsylvanian, the original deposits. Later, in the Penn- sylvania sea, when the reducing conditions became mor^ general or the land area was completely submerged, the dis- tribution of the metallic salts would become more general, and when the source of supply was cut off their introduction would cease. We do not presume to point out the original source of the lead and zinc in the oceanic waters of the Pennsylvanian era, although it appears highly probable that the crystal- line rocks, the Mississippian, Devonian, Silurian and the Cambro-Ordovician have all contributed in so far as they supplied sediments to the then existing ocean. As pointed out by Van Hise, Winslow and others, were we to traco these metallic minerals to their ultimate source, we woulu find them to have originated in the igneous rocks. From the time these metals were abstracted from the igneous rocks to the time they were held in solution by the waters of the Pennsylvanian sea, they may have been several times, in part, at least, precipitated with the oceanic sediments and re-dissolved with the weathering of the land surface. If one should judge the opinions held by others from their published reports, he would be led to infer that the Cambro- Ordovician sea was the last great receiver of the lead and zinc minerals brought from the land by streams. This does not seem reasonable since we know that the Mississippi river is now carrying and depositing lead and zinc with the sediments being deposited in the Gulf of Mexico. In addi- tion to this it is known that younger formations supplied equally as favorable, and sometimes more favorable con- ditions for precipitation of metallic salts from the oceanic waters. If .002 of one per cent, of zinc and lead deposited from the waters of the Cambro-Ordovician sea is considered suf- ficient to account for the lead and zinc deposits of the Ozark region, very much less will be required by the Pennsyl- vanian, since, through the almost complete removal of the beds of this series from the area in which the ore bodies oc- cur, all the lead and zinc which they at one time contained 292 PROCEEDINGS AMERICAN MINING CONGRESS must have been transferred to other places. In the case of the Cambro-Ordovician, these series have only been partly removed and the greater part of this was accomplished by the streams which contributed sediments to the Pennsyl- vanian sea, On the other hand, the extremely favorable conditions for precipitation in the Pennsylvanian sea would lead one to suppose that the probability of a localization or concentration of the original precipitates would be many times greater than in the Cambro-Ordovician sea. In a consideration of the formation of the workable de- posits of lead and zinc ore, the starting point must be the last time the lead and zinci was held in solution by the waters of the ocean. In the case of the Southwestern Ozark district, it is thought to have been the Pennsylvanian sea. We believe that the concentration from this formation into the Mississippian has resulted from solution and redeposi- tion, as a result of weathering, in a manner somewhat anal- agous to the concentration of minerals by the mechanical process. Not only has there been a concentration of the lead and zinc, but as striking, also, has been the concentration of silica, dolomite, calcite and pyrite. Evidently, in all cases, there has been a gradual movement of these minerals, in- cluding the lead and zinc minerals, downward, pari-passu with the degradation of the land. That this movement is still in progress is shown by the growth of lead and zinc minerals in mines that have been abandoned and flooded with water. Instances of this have been recited in the re- ports of the Missouri Bureau of Geology and Mines. It must be constantly borne in mind that any lead or zinc contained in a formation which is being decomposed and removed from the surface, will be disposed of eventu- ally in two ways, (1) by removal in streams to the ocean or (2) by removal to greater depths and redeposited, in local- ities favorable to the reduction of these salts, within the underlying formations. The percentage of the metals which are disposed of by re-concentration below the zone where abstraction by solution is going on will depend upon the extent of the reducing conditions between the point where the waters leave the zone of oxidation and where they issue from the ground again in the form of springs. In the district under consideration the percentage re- moved by surface streams must be relatively small owing to the persistence in depth of the bituminous and asphaltic materials in many of the openings of the "breccias," joints, LEAD AND ZINC RESOURCES OF MISSOURI 293 bedding planes and solution cavities, along which the ground waters travel. The entire process of ore deposition in this district has been one of enrichment, below; the level of ground water, brought about through the migration of the materials down- ward. The process has been one of constant but interrupted concentration, the interruptions probably being due to changes in the level of the ground waters resulting from successive periods of elevation and subsidence. In this our conclusions agree, essentially, with those which Mr. W. P. Blake, announced for the origin of the Wisconsin lead and zinc deposits. He says: "The evidence is strongly in favor of the view of the long continued decomposition, downward flow and recomposition of not only the ores of zinc, but lead and of the pyrite from the upper formations to the lower, as the general water level of the region subsided and as the upper formations by long continued exposure through geologic ages were gradually decomposed in place." Above the level of the ground water, and in many cases far below, a process of abstraction is going on, as a result of which the sulphide minerals are, in part, taken into solu- tion and in part altered to the carbonate and silicate. The carbonate and silicate are in many places precipitated as such from the underground waters, replacing the limestone and calcite crystals forming stalactites in caves and caverns, and lining small openings within the flint. Casts of crinoids and brachiopods lined with rosettes of calamine are fre- quently observed. It is noticeable that the removal of the sulphides, car- bonates and silicates from the zone of weathering to deeper levels has in many places lagged behind the surface weathering. Especially is this true of the galena and car- bonate minerals, which, in the Aurora, Granby and other areas, have been found in their greatest richness near the surface, often at the "grass roots." As an example of the depth at which the galena occurs with respect to the zinc blende, it may be cited that at least three-fourths of the galena mined in the Granby area has been obtained within sixty or seventy feet of the surface, while most of the zinc blende occurs below this depth, down to 200 feet. This in itself, in view of the fact that the Mis- sissippian has been eroded very little since the Pennsyl- vanian strata were laid down, is evidence that there has been very little of the so-called secondary concentration of the galena, It also shows that such as has been secondarily concentrated has not traveled very far. Runs of galena are 294 PROCEEDINGS AMERICAN MINING CONGRESS sometimes found below blende, although the history of the district shows that the greatest. deposits of blende are in the deeper workings, while the richest galena horizon is near the surface. This condition may be due in part to the greater stability of the lead ores within the zone of weather- ing, but chiefly, we believe, to the fact that it was the chief horizon of the early concentration of the galena from the convergent downward circulation. The foregoing brief discussion of the origin of the lead and zinc ores is believed to be applicable to those deposits occurring in the Mississippian limestone, and would include the areas in Jasper, Newton and Lawrence counties, Mis- souri; the Quapaw and Miami areas in the Indian Territory, and the Galena-Empire camp in Kansas. The Chemistry of the deposition of the ores of this dis- trict may be found in the report of the Missouri Bureau of Geology and Mines on "The Geology of the Granby Area." Space does not permit including it in this brief summary. Estimates of Costs of Mining Operations in the JopUn District. During the last few years our office has had many In- quiries as to the cost of mining in the Joplin district, but owing to various circumstances we have never been in posi- tion to give very satisfactory answers to such questions. Owing to the great diversity in physical conditions, equipment and efficiency of management, there Is a wide range in the cost of operating mines and mills. In some in- stances the rock is hard, in others it is soft. In some local- ities there is a heavy flow of underground water, in others the flow is very light. In some places the ore is close to the surface, in others it is deep. Some mines require consider- able timbering, both in the shaft and in the workings, others require practically none. Some mines can be operated most successfully with a mill of large capacity, others with a mill of small capacity. Some have efficient management, in others the management is inefficient. Thus it may be seen that the various elements entering into any estimates of cost may cause them to vary widely. With a full realization that any general estimate of costs in this district may be misleading, I am submitting the following table in which the estimates are remarkable for their uniformity. These estimates have been made by men of broad experience in mining in the Joplin district and if used with judgment, ought to furnish a very valuable guide to those who are unfamiliar with the costs of mining in this region. LEAD AND ZINC RESOURCES OF MISSOURI 295 Estimates of Costs in Mining Operations of Joplin District. 0* P|' 119 f ss-s ??s ft & *4 *"* ^-s cTh-.'" 1 ' a i-s p J 3 3_o i-h O O, CD M> * Op * 3 "''CD J^-CD rf ^ . CO* O O M O MQ ^3 rt- 3 o Q o (rc ^ ^ J3 .* C Q o M HS r* fc Q P ^ *""*" rt- H^ O, C . ^.. O ^ ^ <-! ii-T d O * 5' "5" ^