Document jyMdbGqy6VoJx6RwDQGX0REkR

THE REFRACTORIES INSTITUTE Reports to the Membership Ninth Annual Spring Meeting THE GREENBRIER WHITE SULPHUR SPRINGS, W. VA. June 25 and 26, 1959 INDEX PAGE Attendance List............................. .............................................,................................... 15 Auditor's Report .............................................................................................................. 10 Budget................................................................................................................................ 14 Directors, Annual Election of....................................................................................... 10 Membership Report ........................................................................................................ 9 Minutes of Meeting ........................................................................................................ 3 Percentage Depletion Report ofGeneral Counsel....................................................... 4 Refractories Fellowship Report....................................................................................... 7 Technical Advisory Committee Report.............. 6 Treasurer's Report ......................................................................................................... 13 Note: Text of talk by Mr. J. Roy Price, Assistant Director, Office of Civil and Defense Mobilization, Washington, D. C., on "The National Program for Industrial Survival" is attached. MINUTES OF THE MEMBERSHIP MEETING OF THE REFRACTORIES INSTITUTE Held June -5 and 26, 1959 at The Greenbrier, White C f./Ui \>V. VV *a. Total attendance including guests was 83 men and 60 ladies. Attendance list is appended. President J. E. Brinckerhoff presided and Avery C. Newton, Executive Secretary, acted as secretary of the meeting. Minutes of the last membership meeting held at The Broadmoor, Colorado Springs, Colo., on Sept. II and 12, 1958, previously submitted by mail, were approved. The chairman announced that at a meeting of the Board of Directors just concluded, J. B. Arthur had been unani mously elected President of The RefracroriesTnstitutc for the ensuing year. Other officers re-elected were F. H. Laube as Treasurer and Avery C. Newton as Executive Secretary. The membership expressed its appreciation to retiring President Brinckerhoff by a round of applause. The report of the Treasurer, copy appended, for the fiscal year ended March 31, 1959, was received and or dered placed on file. In the absence of the Treasurer, the Secretary reminded the membership that, to provide funds for increased expenses, the Board of Directors had author ized an increase in dues rate effective April 1, 1959 for Active Members from $5.00 to $2.00 per year per produc tion employee. Dues for Active Members on a minimum basis and for Associate Members were increased from $150.00 to $210.00 per year. Mr. W. H. Peterson, Jr., chairman of the Golf Com mittee, thereupon reported on plans for the Golf Com mittee. The president announced that Mr. Peterson had resigned as golf chairman, at the conclusion of this meet ing, after a service of four years, and that he had accord ingly selected Mr. J. R. Rhodes to serve as chairman. The membership expressed its appreciation to Mr. Peterson by a round of applause. The President then called upon Mr. L. J. Trostel, chair man of the Technical Advisory Committee, for his report, copy appended. Mr. Kenneth A. Rugh thereupon reviewed the high lights of the very successful Factory Operators Meeting held April 2 and 3, 1959 at Columbia, Mo., of which he served as chairman. The report of the proceedings had previously been mailed to the membership. Mr. Rugh commented on the interest and participation in the pro gram on the part of the operators and urged that the membership continue to support this very valuable annual meeting for production employees. He also mentioned that the Award Contest for the best papers on refractories was most successful with 3 prize winners out of 15 excel lent papers submitted. He urged continued support of this new activity of the Operators Meeting. It being 11:45 A.M., the meeting adjourned until 10:00 A.M. the following day. Upon resuming the sessions, the President introduced a distinguished visitor, Mr. Colin Stein, president of John G. Stein y Co., Ltd., Bonnybridge, Scotland, and asked him to take a bow. The President thereupon reported several activities of The Institute and actions of the Board of Directors as follows: 1. Kolb Refractories Co., Philadelphia, Pa., was elected an Active Member effective April 1, 1959. 2. Kaiser Aluminum & Chemical Corp., Oakland, Calif., was elected an Active Member effective July 1, 1959. 3. The Palletizing Manual has been revised and will be republished this Fall. Major changes include a complete revision of the section devoted to the num ber of brick per pallet to increase the underweight units for some types of refractories. This will 'rec.ice tiic numocr oJ pallets involved in a shipment and will facilitate meeting minimum freight car weight requirements. This has been accomplished mainly by creating four weight groups instead of the present groupings by silica, clay and basic brick. 4. The Institute will carry an advertisement in the 1960 Engineers* Job Directory, as it did this year, seeking inquiries from graduating engineers. Re spondents are referred by The Institute office to those companies which, fcave advised--tha^ they arp, sccking employees with specific engineering back grounds. 5. The Institute will resume publication of arbitration . derisions, under the direction of the Labor Rela tions Committee, as received from members. This should be an invaluable aid to the membership. The President thereupon called on Mr. W. S. Lowe to report on a proposal his committee had made to the Board of Directors to collect additional industry data. Mr. Lowe stated that considerable confusion still pre vailed in the minds of the general public, financial insti tutions and many others not immediately associated with the refractories industry as to the importance, magnitude and strength of the industry we represent. He advised that his committee felt there was a real need for accurate refractories industry statistics to be collected from member companies by a disinterested accounting firm and reported annually in total. Such statistics are presently available to the public insofar as certain individual public held com panies are concerned. He stated that his committee had recommended that the following data be collected on an annual basis: 1. Total capital investment. 2. Total dollar sales. 3. Total investment per employee. 4. Total sales by industry classification, such as: steel, glass, petroleum, etc. 5. Total capital invested in research and development. 6. Total suras spent annually on research and develop ment. 7. Total annual expenditure for exploration and devel opment of new raw materials. Mr. Lowe advised that the. Board.had-*xpresscd consid erable interest in the proposals and, as a first step, had instructed the Secretary to secure estimates of the cost from an accounting firm and to report back at the next Board Meeting. Mr. W. A. Turner, chairman of the Mellon Institute Committee, thereupon presented his report. He advised that his committee and the Board of Directors felt that the Refractories Fellowship at Mellon was an essential part of The Refractories Institute. The rising cost of oper ating the test department of the Fellowship had prompted the committee to submit to the Board several proposals to assess costs. The Board rejected the proposals and voted to continue to meet the operating deficit of the test de partment out of The Institutes dues income. The com mittee was requested to continue its efforts to find ways and means to cut costs. Mr. Turner again urged that the membership make greater use of the test facilities at our Fellowship at Mellon. We have the equipment and the staff to make tests--we need your orders. The President then called upon General Counsel W. J. Kenney who presented a report, copy appended, on the curiznt status of percentage depletion. At the conclusion of his report, Mr. Kenney introduced Mr. Brooke L. Gunstilus, recently reared from the Bureau of Mines, who .Vid (.inf.^yud by The Institute to make an indus try survey of tonnages and value of refractory fire clays mined and sold by the refractories industry, Mr. Stuart M. Phelps, Director of the Refractories Fellowship at Mellon Institute, thereupon summarized the activities of the research and testing departments of the Fellowship for the past year and described some of the plans for the future. Copy of his report is appended. The President thereupon introduced our guest speaker, Mr. J, Roy Price, Assistant Director of the Office of Civil and Defense Mobilization, who gave a most informative talk on "The National Program for industrial Survival". Text of Mr. Price's remarks is appended--it is well worth careful study. The President reminded the members that the next Membership Meeting will be held at the Grand Hotel, Point Clear, Ala., on Oct. 8 and 9, 1959. There being no further business to come before the meeting, upon motion, adjourned. Avery C. Newton, Secretary REPORT OF GENERAL COUNSEL Since the last membership meeting of The Refractories Institute, the refractories industry has been plagued by percentage depletion problems. It has been the period of greatest depletion activity since the inception of the per* ccntagc depletion deduction in 1951. The problems have arisen on all governmental fronts: legislative, administra tive and judicial. Legislative The Treasury Department on Feb. 11, 1959, com menced its all-out drive to solve the problem of the deple tion "cut-off" point in accordance with its own precon ceived notions. On this date the Secretary of the Treasury forwarded to the Speaker of the House of Representatives Treasury proposals for amendment of Sec. 613(B) of the 1954 Revenue Code. These amendments excluded from ordinary treatment processes "blending with other mate rials, treatment effecting chemical changes, thermal action and molding or shaping". The evident purpose of this wording was to establish for the refractories industry a cut-off point immediately after the crushing and grinding processes. However, the Treasury proposals did not recog nize the elementary administrative problem which has for eight long years harried both the refractories industry and the Revenue Service, namely, the method of arriving at the value of crushed and ground refractory clay. The Treasury proposal was referred to the House Ways and Means Committee which held public hearings on the Treasury proposals commencing March 5, 1959. The Treasury Department in its presentation placed greatest emphasis upon the loss of revenue by reason of successful and pending "end product" depletion litigation and urged that "end product" depletion be ended as contrary to the congressional intent in granting percentage depletion. The heavy clay and cement industries were focal points of the attack. The Refractories Institute was represented at the indus try hearings and, while acquiescing in the proposed "cut off point," vehemently urged that no such cut-off point should be imposed unless simultaneously a statutory meth od of establishing a market value of refractory clay at this point was provided. The method proposed by The Refrac tories Institute required the use of prices shown in pub lished price lists and actual sales for valuing crushed and ground refractory clay for depletion purposes. This posi tion is in line with the historic position of the refractories industry since they first were granted depletion :n !9:1. S^rnc two weeks were consumed in the iic.and many meustrses app-carcc. It cariv rccumc orvious tn.v. tnc Treasury proposals were highly unrealistic and would re sult in greater uncertainty- and litigation while also un intentionally affecting the long established depiction of many industries. As a result, the House Ways and Means Committee has deferred all action on the Treasury pro posals but has indicated the possibility of appointing a sub-committee to rc-study the entire percentage depletion question as to both rates and the cut-off point. Administrative Regulations under I939*<Sode-- mem on Feb. 10, 1959, proposed retroactive revisions of the depletion Regulations under the 1939 Internal Reve nue Code, by re-defining the words "clay, refractory and fire", and "quartzite". The effect of these belated re definitions would be to define "refractory and fire clay" as clays having a P.C.E. of 19 or higher, which might exclude some portion of the pouring pit refractories from the 15% depletion rate. The proposed rc-dcfinition of "quartzite" would require that the material be a compact rock so tightly cemented that it breaks across the grains rather than around them and thus might exclude pebble rock from all depiction for 1951-53. These definitions were exactly contrary to long standing rulings defining both "refractory day" and "quartzite" in terms of actual suit ability for refractory production. Public hearings were held on these proposals on April 2, 1959, at which time The Refractories Institute was rep resented and presented a brief pointing out that the defi nitions were contrary to the congressional intent to include as "refractory clays" all clays actually used for refractory purposes and to include pebble in the term "quartzite" and, further, that the proposed rc-definitions might retractively deprive their materials of depletion to which the Revenue Service had long agreed. No action has been taken to date to amend or finalize these proposed Regula tions. Regulations under 1954 Code--The industry will re- . call that the Treasury Department on Nov. 3, 1957, pro posed depletion regulations under the 1954 Revenue Code to which the refractories industry filed vehement protests. There have been successive rumors that these Regulations were being amended; would be rc-proposed for further hearings or would be finaHy adopted.*Th view of`the fact that the proposed Regulations as they related to the "cut off" point are similar to the Treasury proposals so hostilely received by Congress it seems that the Regulations* after more than two and one-half years are no nearer final adoption. Judicial End Product Depletion Coses--The U. S. Circuit Court for the 7th Circuit on June 15, 1959, decided the govern ment appeal in the Cannelton Setter Pipe case. It affirmed an earlier District Court decision in favor of the taxpayer allowing "end product" depletion. Cannelton produces sewer pipe manufactured of a combination of shale and fire clay. This is the first appellate case in which the gov ernment has established substantial nearby sales of raw crude fire clay at prices less than taxpayer's own day pro duction costs. The government contended alternatively that either there was a local market for raw fire day which established the "cut-off" point for Cannelton or that there was a national market which established the "cut-off" point. This has been described as the "least processing" theory. The Circuit Court met the problem squarely and held that, while, as distinguished from the Chcrotv<e cases, 4 there was a substantial market for raw fire clay, the ques tion of the commercial marketability of clay hinged upon the market of the particular taxpayer involved and that to lsi.inhsb a commercial market for ciay it must be shown that the taxpayer could sell a substantial portion of his production at an earlier stage at a profit. The fact that a particular taxpayer's mining costs were greater than the per ton selling price in the area would establish a lack of commercial marketability at an earlier stage and thus Cannelton was entitled to "end product" depletion. This case is most significant in that it is the first appellate case involving a situation where a market at an earlier stage does in fact exist and will become a leading decision on the problem. Further, it demolished__the government's new "least processing'' theory. A copy of the Cannelton decision has been furnished to each member company. There have also been two recent District Court dedsions, allowing "end product" depletion on non-refractory products manufactured in part from fire clay. Sparta Ceramics Co. (wall tile) (N.D. Ohio, 1958) 169 F. Supp. 401; Pacific Clay Products (sewer pipe) (S.D. Cal. Oct. 30, 195S) AFTR (2d) 873. These decisions are currently under appeal by the gov ernment to the 6th and 9th Circuit Courts, respectively, along with two other non-clay depletion cases, Iowa Lime stone Co. (28 T.C. S81), Sth Circuit, and California Portland Cement Co. 3 AFTR (2d) 428, 9th Circuit. The government is making an all-out effort to win at least one of these cases on appeal in order to again at tempt to bring the matter before the Supreme Court of the United States on the basis of a conflict of decision among the Circuit Courts. The government had previously unsuccessfully attempted to obtain Supreme Court review of the Dragon Cement, Chero\ee and allied derisions. Stripping Contractor Depletion Rights--The Supreme Court of the United States in the case of Parsons vs. Smith on April 6, 1959, finally set at rest the rights of the strip ping contractor to the percentage depiction deduction. The Court decided that the stripping contractor possessed no economic interest in the mineral and was not entitled to claim percentage depletion although he had a substan tial investment in equipment where the stripping con tract met the following requirements: 1. The contract could be terminated on short notice (here 10 days). 2. The price paid for the stripping was a fixed price per ton having no relation to the time of sale or the price at which the mineral was ultimately sold. 3. The stripping contractor had no right to sell any portion of the coal but was obligated to deliver all coal mined to the owner. The foregoing requirements are in line with those which the refractories industry has been pursuing for many years. While the refractories industry generally has had no percentage depletion problems with respect to the de pletion rights of stripping contractors, this decision sets at rest a very troublesome problem which has been hang ing over this industry. Refractory Litigation--The refractories industry has now reached a position where it must choose its course of action. We have attempted by agreement with the govern ment to use crushed and ground day as a "cut-off" point and to use published market prices to arrive at the value of the clay at this point. Now we find Treasury using raw clay as a "cut-off" point and low sales prices or proportionate profits to reach its value at this point. The result .is chaos with no member of the refractories industry knowing either the appropriate cut-off point for his product or the value to use at that point. Generally, the income tax returns of members of the refractories industry are <pcn for the eight years 1951 to 195S. The result of this unascertained liability on the corporate bal ance snect is tvo envious for comment. In view of this chaotic situation various members of the refractories industry have reached a decision to litigate the problem on the basis of "end product" depletion. Harbison-Walkcr Refractories Co. has filed a refund suit for the years 1951 and 1952 in the District Court for the Western District of Pennsylvania and this case is now in pre-trial status. Other producers will shortly file "end product" refund suits in thdr respective District Courts. I earnestly recommend that all members of the refractories industry should, if they .have not already done so, filc_refund claims based on "entJ" product'^HcpIcliarTin or3er to preserve their rights. There seems to be no present hope for compromise with the Revnue Service and the whole problem must now be litigated in court. Frankly, I do not believe that we can assume that, because one or two cases are successfully litigated, the Revenue Service will grant the same treatment to non-litigating refractory manufac turers. Prior experience would indicate that all members of the industry must be prepared to separately litigate to receive the benefits. In litigation the refractories industry has a substantial chance to win through to "end product" depletion. As distinguished from other clay consuming industries, the refractories industry has definite and high quality stand ards for the clays which are necessary to produce a product which will meet its customers' service require ments. This should serve to distinguish the raw materials used by the refractories industry from the large body of clays commonly known as "fire clay", the great part of which is of too low quality for use in refractory production. Action by The Refractories Institute--We have seen from current litigation and Treasury policy that the gov ernment refuses to recognize a difference between "re fractory day" and "fire clay", although both terms are used in the statute. The Revnue Service insists blandly that all day having, a P.C.E. of Cone 19 or higher is "refractory clay" and that all refractory clay is thus identical and that thus defined there is a market for raw refractory day. If this contention is successful, it wall result in substantial elimination of percentage depletion for the refractories industry. Generally in the day litigation to-date the government has attempted to establish a market and a value for raw fire day by subpoenaing neighboring producers to testify as to their sales and/or purchases of day and the prices at which the transactions occurred. This type of 'evidence can be handled in each suit by distinguishing each pro ducer's day from the refractory day used by the particular taxpayer on the basis of chemical and physical qualities. The government is also increasingly leaning on national statistics. The chief source has been the day statistics reported in the Minerals Yearbook issued by the United States Bu reau of Mines. The Minerals Yearbook statistics show sub stantial sales of fiie day in raw form in all major day production states at low prices. While there are valid legal objections to the admis sibility of the Minerals Yearbook in evidence, the fact is that these figures have been admitted in evidence by the Trial Judges in both the Sparta and Standard fire day cases, and were extensively used in the Cannelton Sewer Pipe briefs on appeal. It seems certain that these statis tics will be admitted in evidence in any refractories deple tion case. These figures are, on their face, damaging. We must recognise that these statistics will be fully exploited by the government unless they can be success fully combatted. This is a very difficult problem. The r-f :hc V-r.erci: Ycarhc-cl repot; cr. all fire clavs and include not only refractory clays suitable for use by the refractories industry but also large tonnages of days of all grades consumed by other clay industries such as brick, tile, sewer pipe, etc., most of which are wholly unsuitable for refractories use. Generally speaking, refrac tories manufacturers sell negligible quantities of their clays in raw form. However, to establish this in Court may be exceptionally difficult. In no trial to date have the Minerals Yearbook stanV tics been successfully controverted by the taxpayers. In recognition of the probable devciopment-of this problem the Board of Directors of The Refractories Institute has obtained the services of Mr. Brooke L. Gunsnllus, recently retired from his position with the Bureau of Mines where he served as a commodity specialist in the Branch of Ceramics and Fertilizer Materials. Since 1950 he had conducted the surveys of the clay industry which resulted in the Minerals Yearbook statistics. Mr. Gunsallus had complete charge of the clay section of the Minerals Year book and personally collected and compiled the statistics; correlated them and wrote the section. Mr. Gunsallus is currently engaged in preparing the necessary statistics to segregate refractory clay tonnage from the Minerals Yearbook statistics. We have called upon all members of the refractories industry to furnish their retained copies of the Bureau of Mines clay reports for the years 1951 to 1954, inclusive. These reports show for each reporting company the type of clay, the tons mined, the tons sold and the tons processed into finished product. This is a major enterprise and has already, though in* complete, demonstrated the fact that the refractory pro ducers do not sell any significant quantity of their clay in raw form. In order that Mr. Gunsallus's results will have any validity in court it will be necessary to have complete cooperation of all refractories producers. Members of the industry producing more than 60% of the tonnage have already turned in their retained copies of the Bureau of Mines questionnaire. There are, however, some producers who have not as yet done so. We can assure you that each member's individual figures will be kept in utmost confidence and that only the resulting statistics will be made public. Following the completion of this work, Mr. Gunsallus will then conduct a survey of the refractories industry designed to establish the grades and types of clays used in the industry and the statistics as to any purchases of raw days by members of the refractories industry dur ing the years 1951 to 1954. Mr. Gunsallus's services as an expert witness will be essential in depletion litigation by any member company and will be available to all participating members as the Board of Directors of The Institute may determine. Respectfully submitted, William J. Kenney, General Counsel. TECHNICAL ADVISORY COMMITTEE REPORT The committee has held two meetings in the interval since the Spring Membership Meeting of The Institute at Hot Springs, Va., May 6, 1958. One meeting was held in Cincinnati, Ohio, on Dec. 3 and 4, 1958, the other was at Columbus, Ohio, June 15 and 16, 1959, with The Insti tute Counsel and Secretary present. Technical Research The committee has continued to work closely with the Fellowship on its research program involving several pro cess studies and new test mcth'Hls. Beth the quality of the work .ind ns progress have been completely satisfactory. This will be further evident from the detailed report of ;.`.t J--i; .v t i*i u! I iiC t CitvJVV. snip. During each of the past three fiscal years the funds appropriated for various studies, research and general activities, other than sales of service or testing, have been increased. This continued and increasing support of re search by The Institute, tending to make it the main activity of the Fellowship, has had several gratifying effects. It has made it possible to bring some of the pro jects undertaken, to completion, increased the status of the Fellowship at Mellon Institute and, undoubtedly, made our customers more aware of our industries' interest ij^ developing and applying technological "advancements.- We believe that the best interests of the industry will be served by a continuing research program at the Fellow ship tailored to fit the funds available and conforming to the type of facilities which can be adapted to the Fellow ship laboratory. Process Studies. A current project on the preven tion of the balling of fireclays is practically completed. A special bulletin on the findings has been distributed to the members and furthermore, the work was presented at the last Operators Meeting. The committee has agreed that a slight extension of this project should be undertaken. This would cover the most efficient method of spraying into the mix the additive which is required to prevent balling. A second study on pressure cracking is now ready for intensive study. The work has been detailed and the re quired apparatus is on hand. It is expected that data of considerable usefulness will be obtained. Test Investigations. Active work continued in the past year on the development of two tests of particular value to both the industry and the users of refractories. One of these was a much needed method and apparatus for measuring the spalling resistance of silica brick. Com mittee C-8 has just recommended this to A.S.T.M. as a tentative standard. The apparatus is available at the Fellowship for use by Institute members. Further improvements in the apparatus and method for measuring the consistency of castables have been made. The committee members have obtained considerable data in their laboratories which along with quantities of nu merous types of castables have been made available to the Fellowship for parallel testing. Important consumers have been kept abreast of`the developments. As a result of an investigation of methods of mixing castables as well as refinements in the meter, it is now possible to express the consistency index in terms more closely approaching the water contents of castables normally recommended by the manufacturer. In the overall program of future planning, several new problems have been considered. It is the intention in selecting such problems to give priority to those of most practicable significance and which at the same time can be fitted into the Fellowship facilities. A fertile field in this connection, which will not be overlooked for possibilities, is the Operators' meetings. Fellowship Testing The inability to break even on these costs have been the joint concern of our committee and the Mellon Institute Committee. We reviewed two factors late last year con sidered to be responsible for decreasing income, via., the then current industrial depression and the increasing num ber of captive laboratories. There appeared to be some promise of alleviation from the first factor but to bring costs more in balance, wc recommended dropping of at 6 least one of the more unprofitable and less used services. This action, however, remains a moot question. It is impossible to overlook the fact that the Fellowship Tester !>p-r:r.ill remains the chief *r.c -r. many instances the only place in the country where acceptable referee tests can be conducted with confidence for both the manufacturer and user of refractories. Taking into consideration all the factors involved, it appears that to keep all services in a continuous standby condition of availability, it apparently will be necessary for The Institute from time to time to subsidize this activity. Census Reports Our special subcommittee met at the Census Bureau in Washington with the Industry Division oojan. 16, 1959. The object of this meeting was to propose for their con' sideration certain further revisions in shuttle form MA32C and the quarterly Facts for Industry. Our chief sugges' tions were to decrease the possibilities of double reporting, applying particularly to granular .materials produced by the industry; also to subdivide insulating brick into three classes. The Bureau continues to be highly cooperative and appreciative of the various suggestions made and pro* posed to put the above revisions into effect. It was decided to cease collecting data on refractory dolomite and leave this to the Bureau of Mines since it is one of their normal functions. The coverage of dead burned magnesite, however, will be improved to cover all companies on the basis of a list provided by the sub committee. The subcommittee also had a session during the above visit with the Export or Foreign Trade Division to deter mine the feasibility of drafting a reclassification of the groupings of refractories. Presently these groupings lack system and clarity. It is hoped that the classifications of the two divisions of the Bureau can be eventually made uniform. The Export Division has had a Technical Com mittee of outside consultants but without any representa tion from our industry. This project has since been made an assignment of The Institute Secretary by the Board with the technical assis tance of the T.A.C. Technical Bulletins As part of our program of keeping The Institute mem bers advised of certain technical developments. Bulletin Mo. 100 was published during the year. This paper en titled "An Infrared Drier for Rapid Moisture Determina tions" was a contribution of E. B. Willis of the A. P. Green Co. The instrument should prove useful in main taining the proper moisture content at the mixing pan during pressing. Another paper is on hand and scheduled for early pub lication covering modern instrumental methods for the analysis of refractories. It is a contribution of W. S. Treffner of the General Refractories Co. It will point out the use being made of the X-ray, electric arc and high tem perature flames to determine the constituents of refrac tories. The small space occupied by the instruments and the large number of very precise analyses possible daily has made the devices attractive additions to quality con trol facilities. A.S.T.M. Information A number of the actions of Committee C-8 in the past year are of special interest. 1. Specifications. (a) In our 1957 report we referred to the initiation by C-S of a project on a specification for "Steel Pouring Pit Refractories" to include ladle brick, sleeves and nozzles. A completed specification has just been recommended by C-8 to the A.S.T.M. for adoption as a tentative standard. It will be par: of the Annual Report of C-S, shortly to be d::<-c:cc f. ;:...r..bc:s cf Tnc institute. (b) Specifications for "Insulating Fire Brick for Lin ings of Industrial Furnaces Operated with a Neutral or Oxidizing Atmosphere". This refers the user to the exis- tant A.S.T.M. "Classification of Insulating Fire Brick" (A.S.T.M. designation C155) for selection of the proper class of brick depending on the temperature of usage. A warning is inserted that the selection of brick to be heated on more than one side may necessitate the use of a class of higher temperature than usual. Separate dimensional toler ances for both molded and machine-ground brick..are,_a_ novelty. ' '** " ' ~~ (c) Refractories for Incinerat&rs. Several revisions are being proposed for the brick specification (A.S.T.M. desig nation C106). To make it conform to more modern prac tices in municipal incinerators, it is likely that super duty fireclay brick and silica carbide brick will be added. (d) Size Tolerances. The well known tolerances of 2% for dimensions of 4 in. or over and 3% on dimensions smaller than 4 in., under which the industry has tried to operate over the years, were questioned again in C-8 this past year as being too lenient. C-8 has included these tolerances in only the specifications for brick intend ed for boilers, incinerators and malleable iron furnaces (See A.S.T.M. designations C6J, C64, C106, and C153). It may be remembered that the A.I.S.I. published a review of these tolerances in 1946-47 and found them adequate. By 1958, their views became divided. Last year C-8 took cognizance of this feeling and discussed the de sirability of having closer tolerances for uses other than those in the A.S.T.M. specifications just mentioned. The matter was referred to the C-8 Advisory Committee to make an assignment for future study. 2, Classifications. The only activity of the past year on this .type of standard has been on a classification of basic brick based on magnesia content. Progress has been made but to date there has been no recommendation to C-8 for action. 3. New Standard Tests. (a) Resistance to Thermal Spalling of Silica Brick This was referred to previously under the Fellowship re search activities. (b) Thermal Conductivity of Plastic Refractories. A standard test has been recoqimended by-C-8 to A.S.T.M. for adoption. This highly useful procedure, like the one adopted last year on castables, is largely a development from the efforts of C. L. Norton, Jr., of The Babcock and Wilcox Co. ` Respectfully submitted, L. J. TROSTEL, Chairman REPORT OF THE REFRACTORIES FELLOWSHIP Testing Department The extensive facilities of the Testing Department, which are maintained solely for use by each member of The Institute, were employed during the year by 89 mem bers. Percentagewise, 68% of the active members sub mitted samples and 21% of the associates. The dollarvolume of test work handled was 14.6% below the aver age for the preceding 5-year period. The number of tests conducted, however, was close to 50% lower than the average for the same 5-year period. Obviously, a higher charge per test was involved during last year's business, but only part of this resulted from the price increase made effective in August, 1958. Accounting shows rbat a different type of testing is now being conducted, much of the work being spcd.il in na ture for one Tcason or another, along with a sizable num ber of orders requiring rush service. It is of interest to note tr.at in the case of the more usual type of testing, the only significant upswing percentagewise pertains to hot load tests in variety, which increased 21%, based on similar work conducted during the preceding 5-year peri od. Because of the installation of panel spalling equipment in many plant laboratories, that test showed a drop of 37%, on the same basis, and the number of reheat tests declined 30%. Refractoriness, as determined by the P.C.E. test, in volves the largest number of samples to be handled, and during the past year this category showed-a decline of 40% over the preceding years. Records show that the average number of samples included in a furnace run was less than three, whereas some few years ago sufficient samples were received to allow close to three times that many test cones to be included in a run. The cost of con ducting the P.C.E. test is increased further by the fact that approximately 25% of the samples tested require a check run for assurance of the correct end point on the basis of the accuracy strived for. There has been pointed out from time to time that the Testing Department of the Fellowship cannot be expected to operate economically unless the members submit a suffi cient amount of work to provide the minimum "produc tion volume". The staff in that department has been re duced as far as is practical for quite some time, this being to maintain three shifts for night runs which, incidentally, have increased at a surprising rate by reason of the special and long-time testing schedules called for. Certain tests are, of course, carried out under semi-automatic control, as for example, in the case of a current carbon monoxide test running for 1,000 hours. Discussion and inquiries have shown that the member ship is very much interested in having the independent testing facilities of the Fellowship available when they require certain tests and notarized reports, but are indif ferent when it comes to supporting it on an economical basis by submitting a sufficient volume of test work for a healthy operation. One reason, of course, is that many companies have over recent years installed their own laboratories. In this connection, there should be kept in mind that the Fellowship charges for tests cannot begin to compare with those of plant laboratories because of not being engaged in the same degree of routine testing. In aJJition, the tests are carried out in strict accordance with standard procedures, which provides a higher degree of accuracy in the results than those often sought for or ob tained by the plant laboratory. The plain facts are that in order to have available the testing service of the Fellow ship for routine, special, and referee work, each member company should support its activity. Studies Silica Spalling. A procedure for evaluating thermal spalling of silica refractories originally developed by the Fellowship many years ago has been adopted by A.S.T.M. as a tentative standard. Even though much thought and attention has been devoted to a means for expressing numerically the degree of spalling occurring in the test, there is still much to he desired in that direction. Cur rently, additional work is being done by the Fellowship on a novel and promising improvement in the test which should give more pertinent information and offers the possibility of obtaining a numerical end point. This is to be accomplished by means of an electrical circuit which indicates the instant and the temocrature at which a ther mal spalling crack develops in each specimen. Such a re finement in the test would not alter the present equip ment but could be added Jo it. Furthermore, the newer method would reduce the iota! testing time arpr.'cizbJy. While on the subject of spalling, it might be well to point out that the Fellowship now- conducts spalling tests for regular and super duty fireclay refractories, basic and silica brick, as well as on blast furnace linings. Caslable Consistency Meter. Castables have become an important item in the large variety of refractory pro ducts available to industry. An indication of the variety of this material on the market is shown by the fact that there arc almost 500 brands listed. A short time ago Com mittee C-8 of A.S.T.M. developed a classification for castables, and this covers six classes of-rtlnh regularpTodnEt'-- and four of the lightweight. Keeping in mind that a classi fication delineates a rather broad group of materials, and that the materials under each class may be divided further for specification work, it is apparent that there is a great variety of castables to be considered from the technical standpoint. Obviously, there should be available reliable test methods for evaluating the properties of castables. The need is not only from the standpoint of the manufacturer for control and cataloging purposes, but in addition, many consumers purchase on the basis of a specification. The work of the Technical Advisory Committee and the Fellowship, in cooperation with Committee C-8, has resulted in standardizing a number of features in such a testing program. An item of primary importance, how ever, is the matter of preparing the cast brick to be used for the tests. This immediately involves the amount of water to be used so as to develop the proper consistency for each castable. A change of half a per cent (0.5%) in the water content can have a pronounced effect, not only on the consistency but upon other properties as well. Currently, the means used to arrive at the proper consis tency is considered a weak link in the test method, and it is for this reason that the Fellowship has devoted con siderable time to the development of the consistency meter. The apparatus as originally issued for trial purposes was found to be most satisfactory in performance be cause of eliminating human judgment and by supplying reproducible results. It was decided, however, that the range in consistency which it covered represented too high a water content; consequently, the T.A.C. recommended further development of the rneter so as ja.en.able measure ments to be made in the range of stiffer consistencies. The change in properties resulting from less water in the mix posed a more serious problem than was antici pated. During the course of the additional work, literally dozens of changes and modifications were made in the meter, and in the course of the study over 650 tests were carried out on 32 brands of castables. The investigation brought out also the desirability of making use of a me chanical mixer for the preparation of the small test sam ple so as to more closely duplicate the mixing operations used in the field and to reduce still further personal fac tors. Consequently, a small hand-operated mixer was de signed specifically for use with castables. The results obtained by the modified meter on test batches prepared in the new mixer were of sufficient prom ise to warrant a cooperative study between plant labora tories and the Fellowship. This program involved 24 brands, each having been carefully tested for certain prop erties by the plant laboratories, after which part of each plant sample was sent to the Fellow-ship for evaluation by the revised meter. This involved carrying out ISO addi tional consistency tests in order to obtain the information c required for judging-the suitability of the meter and the new hand-operated mixer. These data and -those obtained by the plant laboratories were discussed during a recent T.A.C. meeting. The findings showed that the modified me:...- measures the ranee of consistencies desired, and consequently, a tentative end point was agreed upon. The Fellowship will supply the parts required for modi* fying the 15 meters now in various laboratories so that they in turn can conduct further testing. The final design of the hand-operated mixer will be developed and will be made available either in the form of drawings or as a unit constructed by a selected machine shop. It is expected that at a later time Committee C-8 of A.S.T.M. will consider this test method for adoption as a standard. . ___ Bulling Studies. The important findings obtained dur ing the Fellowship study of the balling of fire clay mixes for dry pressing have been presented to the membership in the form of a 37-page special report dated April 14, 1959. During the course of the work, 12 progress reports totaling 120 pages were issued from time to time, and at a later date the material will be prepared for submission to a national publication. The scope of the original study was to learn of the nature and cause of balling, but upon investigation so much was learned about how and why it occurs that it was decided to continue the work to explore possible pre ventive measures. Furthermore, during the course of the work there was demonstrated the ^important undesirable condition caused by balling, which is to prevent the uni form distribution throughout the mix of the plastic day and the fine particles of flint clay or grog. The cause of balling, expressed briefly, was found to be in the behavior of the exceedingly fine particles of the plastic or bond clay of the mix. The abnormally large area of the very fine platelike clay partides, along with their surface activity, causes them to have a strong affinity for water. During the mixing operation, the wetting of these particles causes them to adhere strongly to each other, and agitation brings about a snowballing action and balling takes place. Provided all the plastic day could be moistened at the same instant, or in a very gradual and uniform way, balling would not be expected to occur. It was for this reason that the use of very fine sprays was found to he so effective in reducing balling, as compared with the ordinary means used to add water in plant operations. Studies were made also on the behavior of various types of mixers to reduce balling and, in conjunction with these, the spraying of water in varying degrees of particle fine ness on to the batch during preparation. A simple test method was presented for the purpose of predicting the tendency of various bond days to ball, and this should be useful for plant control work and especially when bond days are to be selected or purchased on the market. In the field of preventive measures, the treatment would be aimed at reducing the normal behavior of the very fine particles in a way that would cause the plasticity to be lowered. Here, as is often the case in the treatment or modification of materials for the refractories industry, the cost per ton of ware of the additive or the operation involved places definite restrictions on the field of possi bilities. Lovv-tcmpcrature heating of a bond day will alter it by virtually destroying its plasticity. The temperature does not have to be over. 800 F and for only sufficient time to assure complete treatment of the layer of clay being han dled. A rather simple piece of plant equipment made of heat-resisting metal could he designed for the operation so that the major cost would be the fuel required, pro viding waste heat were not available. Furthermore, in mrist cases only rar: bond clay used in the mix would have to be <o treated; the actual amount would depend upon how prone the day is to ball. The chemical treatment of those day partides that cause balling was studied extensively, and some 30-odd compounds which held promise were investigated. Fortu nately, the chemicals in the category which would be use ful in this field would have to be used only in very small quantities to be effective. When added in amounts of the order of a few tenths of a per cent of the day, a pro nounced change in the behavior of the day occurs. Obvi ously, the additive must be sohablc in-thd ink tvat'er "smee*" it is desirable to have the minute quantity of the chemical come in contact with as many clay particles as is prac tical. The effect produced by the chemical upon the plastic day takes place instantly, and it is for this reason that the atomized spraying of the mix water containing the additive is so much more effective than when introduced in any other way. The exact nature of the change which takes place in the day by treatment varies, depending upon the type of additive used; nevertheless, the over-all effect is to lower the plasticity and thereby reduce its tendency to cause balling. As a result of the study, the chemical selected and recommended for plant trials proved to be effective in laboratory use by reducing balling 70% in the control mix when used in the amount of 0.1% of the plastic clay content of the mix (40%). These tests were made by atomizing the batch water containing the additive on to the mix. The cost of the chemical per ton of mix in this instance would be S0.26. That figure would vary in prac tice, depending upon how much bond day were to be used in the mix and how prone the day is to ball, which in turn would determine the amount of additive required. The above example, however, is a good indication of the order of the cost of treatment which may be expected. These brief highlights on the study of balling are only an indication of the large amount of useful information contained in the report covering what is believed to be a successful outcome of the study. The report should be most helpful and interesting to plant operators, and it was for this reason that an outline of the work was given during the last Factory Operators meeting. As a result, requests were received from 62 partiesattending. that meeting for copies of the report. Because of the effectiveness of fine sprays in reducing balling when used either for the addition of water or water containing an additive, it is now planned to obtain ratHer extensive information on the subject of spray nozzles. This will be assembled in a manner which would be useful to show plant operators what can be obtained on the market along with suggestions on a practical means of judging their effectiveness. Respectfully submitted, S. M. Phelps, Director of Research and Tests MEMBERSHIP REPORT From 1958 Spring Meeting to 1959 Spring Meeting At the end of the 195S Annual Spring Meeting held at The Homestead, Hot Springs, Va., on May 8 and 9, 1958, The Refractories Institute had 87 Active Members, 29 Associate Members and 6 Honorary Associate Mem bers. Elected since then were 3 Active Members, 4 Active Members resigned, 3 Active Members were merged or 9 consolidated with others and 3 Associate Members re' signed. The total membership after the meeting of the Board of Directors on June 25, 1959, is therefore 83 Active Mwir.bers, 26 Associate Members and 0 Honorary AssO' date Members. New Active Members General Refractories de Mexico, S. A., Monterrey, Mexico. Kaiser Aluminum H Chemical Corp., Oakland, Calif. Kolb Refractories Co., Philadelphia, Pa. Active Members Merged and Consolidated Freeman Fire Brick Co., Canon City, Colo., sold to HarbisonAValkcr Refractories Co. _ ___ Laclede Christy Co. Div. and The McLain Fire Brick Co. Div. merged to form Refractories Division, H. K. Porter Company, Inc. Refractories plant at lone, Calif., of Pacific Clay Products, Los Angeles, Calif., sold to Harbison-Walker Refractories Co. Active Members Resigned Armstrong Cork Co., Lancaster, Pa. Denver Brick Pipe Co., Denver, Colo. Murray Refractories Co., Murray, Utah. West Virginia Fire Clay Manufacturing Co., Pittsburgh, Pa. Associate Members Resigned Hanley Co., New York, N. Y. Andrew S. McCreath 6? Son, Inc., Harrisburg, Pa. The Ohio Knife Co., Cincinnati, Ohio. ANNUAL ELECTION OF DIRECTORS The Nominating Committee on Jan. 27, 1959, sub* mitted the following recommendations for Directors which were adopted by mail vote of the Active Members of The Refractories Institute. The committee comprised: L. Y. Greene, Chairman, F. H. Atwood, R. A. Hitchins, W. S. Lowe, L. E. Whitesell. In accordance with the by-laws, the Board of Directors set May 29, 1959, as Election Day. List of Directors elected for a one year term follows: J. B. Arthur, Mexico Refractories Co. F. H. Atwood, HarbisonAValker Refractories Co. J. E. Brinckcrhoff, The Babcock Wilcox Co. E. E. Davis, The Davis Fire Brick Co. H. P. Eclls, Jr., Basic Incorporated. E. W. Ernst, Louisville Fire Brick Works. Inc W. A. France, J. H. France Refractories Co. E. A. Garber, Harbison-Walker Refractories Co. L. Y. Greene, General Refractories Co. R. A. Hitchins, National Refractories Div. T. Kauffman, The Ramtite Co. R. W. Knauft, The Chas. Taylor Sons Co. F. H. Laube, Freeport Brick Co. W. S. Lowe, A. P. Green Fire Brick Co. E. F. Myers, The Ironton Fire Brick Co. W. H. Peterson, Sr., Valentine Fire Brick Co. George Puls, Acme Bridt.Co. ^. -i-- -- J. R. Rhodes, Gladding, McB^n U Co. G. T. Stowe, E. J. Lavino and Company. A. M. Swank, Hiram Swank's Sons. A. J. Tomasek, Walsh Refractories Corp. W. T. Tredcnnick, Refractory Specialties Co. W. A. Turner, H. K. Porter Company, Inc. E. W. Valensi, North American Refractories Co. H. F. West, Illinois Clay Products Co. L. E. Whitesell, Wellsville Fire Brick Co. ACCOUNTANTS' REPORT We have examined the balance sheet of The Refrac tories Institute as of March 31, 1959, and the related statement of income and surplus for the year then ended. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other audit ing procedures as we considered necessary in the circum stances. In our opinion, the accompanying balance sheet and statement of income and surplus present fairly the finan cial position of The Refractories Institute at March 31, 1959, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Maw and Company, April 17, 1959 Certified Public Accountants. Pittsburgh, Pa. (Accountants' report continued on following pages) Schedule "A" THE REFRACTORIES INSTITUTE BALANCE SHEETS ASSETS M.trch 31,1959 CASH IN BANK Regular Account ........................................... ............ $ 5,752.85 Office Operating Account............................. ............ 25S.49 Savings Account ............................................ ............ 20.738.04 March 31,1958 S 24,464.93 500.00 20,229.16 S 26,749.38 ACCOUNTS RECEIVABLE Mellon Institute Fellowship Tests............... .............$ 3,261.19 Manuals ........................................... .............. ............. 16.60 Product Directory .......................................... ............ 93.50 37.50 $ 45,194.09 s 3,827.24 *.*. . 171.00 S PREPAYMENTS Census Bureau Statistics............................... .......... S Insurance ........................................................ ............. 3.40S.79 1.S75.00 159.53 $ 4,075.49 s 1,875.00 296.27 S 2,034.53 s 2,171.27 TOTAL ASSETS ................................. .............8 32,192.70 $ 51,440.85 LIABILITIES AND SURPLUS accounts Payable ..................................................$ 5,583.2s ACCRUED PAYROLL TAXES ................................ 6SS.25 DUES PAID IN ADVANCE .................................... 150.00 SURPLUS ............................................................................. 25,771.17 TOTAL LIABILITIES AND SURPLUS ... .$ 32,192.70 $ 6,201.43 618.73 150.00 44,470.69 S 51,440.85 Schedule "A", Exhibit I THE REFRACTORIES INSTITUTE STATEMENTS OF CASH RECEIPTS, DISBURSEMENTS, AND BALANCES CASH BALANCE, BEGINNING OF YEAR Receipts: Members' Dues ............................................ Mellon Institute Fellowship Tests............... Sale of Manuals........................................... Sale of Product Directory ......................... Interest Income ............................................ Miscellaneous ................................................ Factory Operators Committee Meetings .. Joint Conference on Refractories Problems Years ended March 31, 1959 1958 S 45,194.09 $ 43,724.45 $ 96,371.25 45,812.07 635.02 1,389.96 50S.88 100.7S x $137,709.5556,123.09 3,536.35 1,675.26 229.16 1.530.00 1.475.00 TOTAL RECEIPTS........................... S144.S17.96 8202,278.38 Disbursements: Salaries (net of taxes withheld) Office Supplies and Expense .. Mellon Institute Research........ Mellon Institute Fellowship Auditing and Legal Fees........ Traveling Expense..................... Meeting Expense ....................... Printing and Publishing .......... Telephone and Telegraph........ Dues and Subscriptions .......... 8190,012.05 S 19,826.37 5,093.28 33,589.04 61,126.92 6,546.50 3,542.15 S,296.75 4,602.53 700.10 721.94 8246,002.83 8 20,234.04 5,623.72 26,758.40 57,808.85 6,513.75 2,764.66 10,242.02 14,335.58 779.18 1,034.10 Rent ............................................................................... 2,260.80 Insurance ...................................................................... 13.52 Payroll and Withholding Taxes................................. 6,037.34 Study of Percentage Depletion................................... 2,--9 M Pensions ........................................................................ 5,735.03 Furniture and Fixtures................................................ 93.68 Census Bureau Statistics ........................................... 2,500.00 Honorarium .................................................................. 50.00 Pennsylvania Sales Tax................................................ 46.67 Miscellaneous ................................................................ 30.91 Refractories Bibliography ....................................... Career Brochure ............................................................................... American Society for Testing Materials Manual................................ 2.260.S0 423.IS 5,547.09 2.660.39 5.755.03 745.87 2,500.00 ................. 21.03 ................. 1S.000.00 12,735.00 4.0S6.05 . TOTAL DISBURSEMENTS ........................... S363.262.67 500,S08:7*-- CASH BALANCE, END OF YEAR.............S 26,749.38 $ 45,194.09 Schedule *B" THE REFRACTORIES INSTITUTE STATEMENTS OF INCOME AND SURPLUS Income: Members' Dues ........................................... Mellon Instjtute Fellowship Tests ............ Sale of Manuals ....................................... . Sale of Product Directory......................... . Interest Income ............................... .......... Miscellaneous ............................................... Factory Operators Committee Meetings .. Joint Conference on Refractories Problems Years ended March 31, 1959 1958 S 96,408.75 45,246.02 574.37 1,312.46 50S.88 100.78 513S,237.02 54.53S.93 3,524.60 1,840.26 229.16 1.530.00 1.475.00 Expense: Salaries .............................................................. Office Supplies and Expense........................... Mellon Institute Research...................................... Mellon Institute Fellowship ................................. Auditing and Legal Fees........................................ Traveling Expense ................................................ Meeting Expense .................................................... Printing and Publishing.......................................... Telephone and Telegraph...................................... Dues and Subscriptions ........................................ Rent ......................................................................... Insurance ................................................................ Payroll Taxes.............................................. `........... Study of Percentage Depletion ........................... Pensions .................................................................. Furniture and Fixtures ......................................... Census Bureau Statistics....................................... Honorarium ............................................................ Pennsylvania Sales Tax........................................ Miscellaneous ........................................................ Refractories Bibliography ........................... Career Brochure .................................................. American Society for Testing Materials Manual 5144,151.26 5 25,500.04 5,108.88 33,396.17 62,350.82 6,546.40 3.693.00 6,499.94 4,602.53 704.91 729.44 2,260.80 150.26 433.19 2,449.14 5,735.03 93.68 2.500.00 50.00 15.45 30.91 5201,374.97 5 25,390.53 5,267.50 28,256.05 56,953.41 6,513.75 2,764.66 12,239.64 14,019.04 765.48 ` 1.034.ICT 2,260.80 126.91 442.33 2,660.39 5,735.03 745.87 2,500.00 55.78 18,000.00 12,735.00 4.0S6.05 $162,850.78 $202,552.32 EXCESS OF EXPENSE OVER INCOME ..$ 18,699.52 Surplus at Beginning of Year.............................................. 44,470.69 S 1,177.35 45,648.04 SURPLUS AT END OF YEAR 5 25,771.17 S 44,470.69 REPORT OF THE TREASURER Operations of the eighth fiscal year of The Refractories Institute ended March 31, 1959, as condensed in this report shew that The Institute had a cash balance, including savings of $26,749.35. Receipts: Fiscal Year's Ended March 31, 1959 195S Cash on hand start fiscal year (April 1) ................... $ 45,194.09 $ 43,724.45 Dues ................................................................................ 96,371.25 137,709.52 Mellon Institute Tests.................................................. 45,812.07 56,123.09 Interest Income ............................................................. 508.88 229.16 Miscellaneous .7..T7:....................... '.......................... 2,125.76 8,216.61 TOTAL RECEIPTS ......................... $190,012.05 Disbursements: Audit and Legal .......................................................... $ 6,546.50 Dues and Subscriptions................................................ 721.94 Furniture and Fixtures ................................................ 93.68 Meeting Expense ........................................................... 8,296.75 Office Expense ............................................................... 5,093.28 Percentage Depletion ...'............................................ 2,449.14 Printing and Publishing .............................................. 4,602.53 Pension Premiums (Newton and Phelps) ................. 5,735.03 Rent ................................................................................ 2,260.80 Salaries, Net ................................................................. 19,826.37 Travel .............................................................................. 3,542.15 Telephone and Telegraph............................................ 700.10 Taxes and Insurance .................................................... 6,097.53 Miscellaneous ................................................................. 80.91 Census ........................................................................... 2,500.00 Mellon Institute Tests.................................................. 61,126.92 Mellon Institute Research............................................ 33,589.04 Purchase of A.S.T.M. Manuals...................................................... Career Brochure ............................................................................... Refractories Bibliography ................................................................. $246,002.83 $ 6,513.75 1,034.10 745.87 10,242.02 5,623.72 2,660.39 14,355.58 5,735.03 2,260.80 20,234.04 2,764.66 779.18 5,991.30 2,500.00 57,808.85 26,758.40 4.0S6.05 12,735.00 18,000.00 TOTAL DISBURSEMENTS CASH BALANCE MARCH 31 $163,262.67 $ 26,749.38 $200,808.74 $ 45,194.09 The cost of operating the Fellowship at Mellon increased substantially last year due, in large part, to the increase in the service charge made by Mellon Institute for all Fellowships. To provide the necessary funds for this and additional expenses in connection with percentage depletion, the Board of Directors authorized an increase in dues effective April 1, 1959. Respectfully submitted, F. H. LaUBE, Treasurer BUDGET April 1, 1959-March 31, 1960 Income: Dues ...................................... Mellon Institute Tests......... Miscellaneous ....................... $123,984.00 48,000.00 2,500.00 TOTAL ....................... Expense: Audit .............". ."T.......... Census Bureau..................... Dues and Subscriptions----Legal ..................................... Meeting ............................... Mellon Institute Tests........ Mellon Institute Research -. M. I. Pension--Phelps ----Office Expense..................... Pension--Newton ............... Percentage Depletion.......... Printing and Publishing----Rent ..................................... Salaries, Gross................... . Taxes and Insurance.......... Telephone and Telegraph .. Travel ................................... Miscellaneous ..................... $174,484.00 $ 550.00 2.500.00 750.00 7.200.00 8.300.00 62,000.00 33.600.00 3.509.00 5.100.00 2.226.00 17,000.00 3.500.00 2.347.00 24.500.00 600.00 700.00 3,000.00 400.00 TOTAL ....................... Deficit, Draw from Surplus $178,082.00 $ 3,598.00 ATTENDANCE LIST 1959 Spring Membership Meeting Acme Brick Co. Mr. and Mrs. Geo. Puls Aetna Fire Bn'ck Co. Mr. and Mrs. L. F. Sims Mr. and Mrs. K. Whitlatch The Babcock Wilcox Co. Mr. and Mrs. J. E. Brinckerhoff Mr. and Mrs. C. L. Norton Mr. and Mrs. M. j. Tcrman The Carborundum Company Mr. and Mrs. R. A. Barr Cedar Heights Clay Co. Mr. and Mrs. M. E. Morgan Chicago Fire Brick Co. Mr. and Mrs. W. G. Young The Cordol Corp. Mr. and Mrs. C. L. Corson The Crescent Brick Co. Mr. and Mrs. D. R. Ferguson The Davis Fire Brick Co. Mr. and Mrs. E. E. Davis Mr. and Mrs. J. L. Cummings The Denver Fire Clay Co. Mr. and Mrs. R. C. Shepard Garfield Refractories Co. Mr. and Mrs. K. A. Rugh Gem Clay Forming Inc. Mr. and Mrs. J. Harrison Keller Mr. and Mrs. Evan W. Morris General Refractories Co. Mr. and Mrs. L. Y. Greene Mr. and Mrs. H. F. Greene Mr. and Mrs. R. E. Longacre Mr. and Mrs. D. M. Thorpe Mr. L. J. Trostel ACTIVE MEMBERS Gladding, McBean & Co. Mr. and Mrs. J. R. Rhodes The Globe Brick Co. Mr. and Mrs. W. A. Porter Mr. and Mrs. W. P. Porter A. P. Green Fire Brick Co. Mr. and Mrs. W. S. Lowe __ Mr. and Mrs. A. R. Barnett Harbison-Walker Refractories Co. Mr. and Xfrs. F. H. Atwood Mr. and Mrs. C. A. Brashares Mr. and Xfrs. E. T. Hfle Illinois Day Products Co. Xfr. and Xfrs.H. F. West The Ironton Fire Brick Co. Xfr. and Mrs. J. H. Rickey, Jr. Johns'Manvflle Sales Corp. Mr. N. J. Kent Kyanite Mining Corp. Mr. and Xfrs. Gene Dixon Mr.- and Mrs. C. B. Kay E. J. Lavino and Company Xfr. and Xfrs. G. T. Stowe XfcCrady Refractories, Inc Mr. and Mrs. Levi C. McCrady Mr. and Mrs. C. . Weinkauf Mexico Refractories Co. Xfr. and Xfrs. J. B. Arthur Xfr. and Xfrs. W. B. Leach Mr. and Mrs. E. C. Tinsley National Refractories Div. Xfr. R. A. Hitchins New Castle Refractories Co. Mr. and Mrs. R. W. Rowland Mr. and Xfrs. j. W. Miller North American Refractories Co. Mr. and Mrs. E. W. Valensi Xfr. and Xfrs. H. H. Hopwood Oak Hill Fire Brick Co. Xfr. and Xfrs. M. E. Davis H. K. Porter Company, Inc Xfr. W. A. Turner ___ Mr. and-Xfrs. J. PaR*ug^--* ** The Ramtite Co/ Mr. and Xfrs. T. Kaufman Refractory fif Insulation Corp. Mr. Frank Christenson Refractory Specialties Co. Mr. and Xfrs. W. T. Tredennick Mr. L Ray Brant H. C. Spinks Gay Co. Xfr. and Xfrs. H. S. Carothers Hiram Swank's Sons Mr. A. M. Swank Mr. G. J. Geiser Xfr. C. A. Young Dr. Harold Kohl The Chas. Taylor Sons Co. Mr. and Mrs. R. W. Knauft Mr. and Mrs. J. Murray Johnston Mr. and Xfrs. A. Maupin Mr. and Mrs. H. C. Wfldner Valentine Fire Brick Co. Xfr. and Xfrs. W. H. Peterson, Jr. Walsh Refractories Corp. Mr. A J. Tomasek Mr. and Mrs. J. J. Duggan Mr. and Mrs. W. K. Schweickhardt Wellsville Fire Brick Co. Mr. and Xfn. L. E. Whitesell Battclle Memorial Institute Mr. J. D. Sullivan Mr. L. S. O'Bannon Chambers Brothers Co. Mr. and Mrs. L. S. Bettison ASSOCIATE MEMBERS Chisholm, Boyd 6? White Co. Mr. and Mrs. R. F. Poole Crucible Steel Co. of America Xfr. G. S. Cox M. H. Detrick Co. Mr. C. F. Pollen Xfr. L. H. Hosbein Xfr. W. J. Kenney--T.R.I. General Counsel Xfr. O. E, Xfiller--Oak Hill, Ohio Mr. and Mrs. Avery C. Newton--The Refractories Institute Xfr. J. R. Peskin--Ceramic Age OTHERS Mr. S. M. Phelps--Mellon Institute, Refractories Fellowship Xfr. J. R. Price--Guest Speaker, Office of Civil and Defense Mobilization Mr. and Xfrs. Colin Stein--Stirling, Scotland Mr. J. J. Svec--Brick 6? Clay Record Mr. B. L. Gunsallus--The Refractories Institute 1S