Herbert Hoover

“ There is now demanded of the mining specialist a wide knowledge of certain branches of civil, mechanical, electrical, and chemical engineering, geology, economics, the humanities, and what not; and in addition to all this, engineering sense, executive ability, business experience, and financial insight. Engineering sense is that fine blend of honesty, ingenuity, and intuition which is a mental endowment apart from knowledge and experience. Its possession is the test of the real engineer. It distinguishes engineering as a profession from engineering as a trade. ”

“ Our engineer cousins can, in a greater degree by study and investigation, marshal in advance the factors with which they have to deal. The mining engineer's works, on the other hand, depend at all times on many elements which, from the nature of things, must remain unknown. No mine is laid bare to study and resolve in advance. We have to deal with conditions buried in the earth. Especially in metal mines we cannot know, when our works are initiated, what the size, mineralization, or surroundings of the ore-bodies will be. ”

“ The commercial and executive side of the work cannot be taught; it must be absorbed by actual participation in the industry. Nor is it impossible to rise to great eminence in the profession without university training, as witness some of our greatest engineers. The university can do much; it can give a broad basis of knowledge and mental training, and can inculcate moral feeling, which entitles men to lead their fellows. It can teach the technical fundamentals of the multifold sciences which the engineer should know and must apply. ”

“ From the nature of things, metal mines do not, like our cities and settlements, lie in those regions covered deep in rich soils. Our mines must be found in the mountains and deserts where rocks are exposed to search. Thus they lie away from the centers of comfort and culture,—they are the outposts of civilization. The engineer is an officer on outpost duty, and in these places he is the camp leader. By his position as a leader in the community he has a chieftainship that carries a responsibility besides mere mine management. ”

“ The crying need of labor unions, and of some employers as well, is education on a fundamental of economics too long disregarded by all classes and especially by the academic economist. When the latter abandon the theory that wages are the result of supply and demand, and recognize that in these days of international flow of labor, commodities and capital, the real controlling factor in wages is efficiency, then such an educational campaign may become possible. ”

“ Efficiency in the single man is the product of three factors,—skill, intelligence, and application. A great proportion of underground work in a mine is of a type which can be performed after a fashion by absolutely unskilled and even unintelligent men, as witness the breaking-in of savages of low average mentality, like the South African Kaffirs. Although most duties can be performed by this crudest order of labor, skill and intelligence can be applied to it with such economic results as to compensate for the difference in wage. ”

“ There is no type of mechanical engineering which presents such complexities in determination of the best equipment as does that of mining. Not only does the economic side dominate over pure mechanics, but machines must be installed and operated under difficulties which arise from the most exceptional and conflicting conditions, none of which can be entirely satisfied. Compromise between capital outlay, operating efficiency, and conflicting demands is the key-note of the work. ”

“ Mines are operated only to earn immediate profits. No question of public utility enters, so that all mining projects have by this necessity to be from the first weighed from a profit point of view alone. The determination of this question is one which demands such an amount of technical knowledge and experience that those who are not experts cannot enter the field,—therefore the service of the engineer is always demanded in their satisfactory solution. ”

“ There is no prescription for good judgment. Good judgment rests upon a proper balancing of evidence. The amount of risk in X, Y, Z is purely a question of how much these factors are required to represent in money,—in effect, how much more ore must be found, or how many feet the ore must extend in depth; or in convertible terms, what life in years the mine must have, or how high the price of metal must be. ”

“ Executive heads are demanded who have technical training. This has resulted in the establishment of special technical colleges, and compelled a place for engineering in the great universities. The high intelligence demanded by the vocation itself, and the revolution in training caused by the strengthening of its foundations in general education, has finally, beyond all question, raised the work of application of science to industry to the dignity of a profession on a par with the law, medicine, and science. ”

“ What rate of excess return the mine must yield is a matter of the risks in the venture and the demands of the investor. Mining business is one where 7% above provision for capital return is an absolute minimum demanded by the risks inherent in mines, even where the profit in sight gives warranty to the return of capital. Where the profit in sight (which is the only real guarantee in mine investment) is below the price of the investment, the annual return should increase in proportion. ”

“ Fourth.—All machines, except those for shaft haulage, must be operated by power transmitted from the surface, as obviously power generation underground is impossible. The conversion of power into a transmission medium and its transmission are, at the outset, bound to be the occasions of loss. Not only are the various forms of transmission by steam, electricity, compressed air, or rods, of different efficiency, but no one system lends itself to universal or economical application to all kinds of mining machines. ”

“ In no profession does competition enter so obscurely, nor in no other are men of a profession thrown into such terms of intimacy in professional work. From these causes there has arisen a freedom of disclosure of technical results and a comradery of members greater than that in any other profession. No profession is so subject to the capriciousness of fortune, and he whose position is assured to-day is not assured to-morrow unless it be coupled with a consideration of those members not so fortunate. ”

“ Mining has reached such a stage of development as a science that management proceeds upon comparatively well-known lines. It is subject to known checks through the opportunity of comparisons by which efficiency can be determined in a manner more open for the investor to learn than in any other form of industry. ”

“ Where the amount of water is limited,—up to, say, 50,000 gallons daily,—and where the ore output of the mine permits the use of the winding-engine for part of the time on water haulage, there is in the method an almost total saving of capital outlay. Inasmuch as the winding-engine, even when the ore haulage is finished for the day, must be under steam for handling men in emergencies, and as the labor of stokers, engine-drivers, shaft-men, etc., is therefore necessary, the cost of power consumed by bailing is not great, despite the low efficiency of winding-engines. ”

“ We have a type of works which, by reason of the new conditions and constant revisions which arise from pushing into the unknown coincidentally with operating, demands an intimate continuous daily employment of engineering sense and design through the whole history of the enterprise. These works are of themselves of a character which requires a constant vigilant eye on financial outcome. The advances in metallurgy, and the decreased cost of production by larger capacities, require yearly larger, more complicated, and more costly plants. ”

“ In America, we still have a relic of this form of administration in the consulting mining engineer, but barring his functions as a valuer of mines, he is disappearing in connection with the industry, in favor of the manager, or the president of the company, who has administrative control. The mining engineer's field of employment is therefore not only wider by this general inclusion of administrative work, but one of more responsibility. ”

“ But of more pertinent force is the fact that as the certain life of a metal mine can be positively known in most cases but a short period beyond the actual time required to exhaust the ore in sight, not even a decade of life to the enterprise is available for the estimates of the mining engineer. Mining works are of no value when the mine is exhausted; the capital invested must be recovered in very short periods, and therefore all mining works must be of the most temporary character that will answer. The mining engineer cannot erect a works that will last as long as possible ”

“ For natural monopolies, like some railways and waterworks, the risk is less and for shoe factories more. Even natural monopolies are subject to the risks of antagonistic legislation and industrial storms. But, eliminating this class of enterprise, the speculative value of a good-will involves a greater risk than prospective value in mines, if properly measured; because the dangers of competition and industrial storms do not enter to such a degree, nor is the future so dependent upon the human genius of the founder or manager. ”

“ Mining business, from an investment view, is of two sorts,—prospecting ventures and developed mines; that is, mines where little or no ore is exposed, and mines where a definite quantity of ore is measurable or can be reasonably anticipated. The great hazards and likewise the Aladdin caves of mining are mainly confined to the first class. Although all mines must pass through the prospecting stage, the great industry of metal production is based on developed mines, and it is these which should come into the purview of the non-professional investor. ”

“ Although it lacks satisfactory foundation for accurate judgment, yet the engineer can, and should, give his experience to it when the call comes, out of interest to the industry as a whole. Not only can he in a measure protect the lamb, by insistence on no investment without the provision of properly organized data and sound administration for his client, but he can do much to direct the industry from gambling into industrial lines. ”

“ A large amount of data from various parts of the world, with skilled white men, shows machine-work to cost from half as much per ton or foot advanced as hand-work to 25% more than handwork, depending on the situation, type of drill, etc. In a general way hand-work can more nearly compete with heavy machines than light ones. The situations where hand-work can compete with even light machines are in very narrow stopes where drills cannot be pointed to advantage, and where the increased working space necessary for machine drills results in breaking more waste. ”