July, 1921
THE JOCRNAL O F I N D U S T R I A L AlYD ESGIiVEERING CHEMISTRY
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should speedily be brought before the public a t large. The A. C. S.Sews Service served this purpose admirably. Bulletins were sent to the press throughout the country giving extracts of speeches made and of the action taken. A flood of clippings received since the date of issuance shows how widely the chemists’ point, of view was given to the nation. The value of such an organization as is represented by the AMERICAN CHEMICAL SOCIETYand the wisdom of the Directors of the SOCIETY in developing by modest appropriations a genuine news service was amply demonstrated in this critical legislative situation. Meanwhile the fight shifted to the Rules Committee of the House, for the Chairman of the Judiciary Committee, the Hon. Mr. Volstead, was endeavoring to gain a special rule for immediate consideration of his slightly modified The Chemist and the Railways (now H. R. 6752) supplemental bill. The Rules Committee It was our good fortune and pleasure recently to address listened patiently, however, to the views of the chemists and the annual meeting of the American Railway Development refused the special rule requested. In an endeavor to bring order out of chaos, Chairman Association. It was a live bunch, men who are constantly on the lookout for means of furthering the development of the Campbell of the Rules Committee of the House, and Senator territory traversed by their several roads. It was evident Willis introduced in the House and Senate, respectively, from the attitude of the members that they were “sold” on separate bills which embodied the strictly anti-beer sections the subject of chemistry as a powerful aid in ;ndust,rial of the supplemental Volstead bill. The Rules Committee of development. The following resolutions, passed on the the House gave permission for prompt consideration of the Campbell bill. Then the foxy work began. The Chairman final day of the meeting, confirm that impression: Resolved: 1. T h a t this Association recognizes the importance of the Judiciary Committee, Mr. Volstead, asked that the of chemistry in the development of agriculture and industries, and new bill be referred back to his committee, and there a believing t h a t i t can be made an important factor in the work of its number of most objectionable amendments were placed upon members, recommends investigation along such lines. it. This modified bill was brought before the House under 2. T h a t this Association go on record as favoring cooperation the rules granted for the strictly anti-beer bill and hurriedly SOCIETY and the American between the AMERICAN CHEMICAL Railway Development Association. passed. By the press it was hailed as simply an anti-beer 3. T h a t the officers of this Association are requested t o confer bill, but a reading of the bill showed plainly the tricky charCHEMICAL SOCIETYfor the with the officers of the AMERICAN acter of the legislation. Again representations were made purpose of bringing about such cobperation. by the committee of chemists to the Judiciary Committee of the Senate, now in charge of the bill. A number of the objectionable items were stricken out by the Senate committee, Alcoholic Tribulations but it was reported with several unfortunate features reWhen the supplemental bill for the enforcement of pro- tained. As it stands on the Senate calendar, at a time when hibition, H. R. 5033, was first presented to Congress by Mr. all are decrying autocratic powers by government officials, Volstead, it attracted but little attention among chemists, it puts in the hands of the Prohibition Commissioner the for it was well known that the machinery for enforcement of absolute power to wreck many legitimate industries if in his prohibition had fallen down. This was on its face an anti- zeal for prohibition enforcement he overlooks the rights of beer bill, drawn ostensibly to offset the decision of the At- industries many generations old because existing regulations torney General regarding the prescription of beer by physi- may have been abused by a few topers. Debate on the bill cians. Those of the chemical profession most closely in (H. R. 7294) is now in progress in the Senate, The character touch with the alcohol situation soon found that this ap- of the debate, however, is largely confined to constitutional parently innocent bill stepped completely over the line of questions involved and to a defense of the right of the physiprohibition enforcement into the field of the distribution cian to prescribe what he desires for his patient. Meanwhile no evidence can be found of any disposition and utilization of alcohol for industrial purposes. The committee appointed by the AMERICANCHEMICAL to carry out the feature of the existing law which declares for SOCIETYa t its Rochester Meeting immediately set to work the encouragement of the production of alcohol and its use to present the views of the manufacturers and users of indus- in the legitimate industries of the country, despite the many trial alcohol, but the efforts of the committee in the hearing protests which have been registered by the chemical industries CHEMICAL SOCIETY. Far from this, it before the Judiciary Committee, of which Mr. Volstead is and the AMERICAN chairman, were practically h i t l e s s . The scant courtesy requires no expert eye to note the inefficiency in many stages tendered the representatives of legitimate industries was of manufacture of alcohol for industrial purposes which amazing in view of the fact that their only plea was that, the result from government regulations in such plants, all of original intent of Congress as embodied in the National which adds necessarily to the cost of production of alcohol Prohibition Act should be carried out. It was apparent that and therefore decreases the ability of our industries using it was expected to railroad the bill through a Congress this important reagent to compete with similar industries in known to be committed strongly to prohibition enforcement. lands where no such restrictions prevail. What could be done to make clear the sinister purpose of The present-day taxation of alcohol is a striking paradox. the bill in its application to the use of alcohol in the industries? For many years taxation of alcoholic beverages proved an Protest meetings were hastily called of the local sections of important source of government revenue. Theoretically the AMERICAN CHEMICAL SOCIETY in New York, Philadelphia, such beverages do not exist to-day. Yet the tax upon alcohol and Baltimore, a t which the views of chemists were put for- for many purely industrial purposes continues. As the chemward in no uncertain language. It was not enough, however, ist looks down upon the row of reagent bottles upon his shelf, that the chemists should talk among themselves; their views he finds no other reagent which he utilizes in his work subject gas, 817 tons. In one m-eek the cartel could produce 3.61 times more explosives and 1.04 times inore gas than that required to fill the Treaty stocks. Using both types of shell, the cartel would cover the task in less than two days (1.6 days). While we are endeavoring to decrease the possibility of war and certainly to diminish the burden of taxation by a limitation of naval armament, surely the task will be incomplete if we ignore the existence to-day of such terrific gas-producing power as now exists in Germany. To those who m-ould endeavor to minimize this danger by designating such discussion as hysterical, we wocld again say “Think it through.”
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THE J O U R N A L OF I N D U S T R I A L A N D ENGINEERIiYG CHEMISTRY
to such a tax. It is a peculiar hang-over of pre-prohibition days and a striBing testimonial of t.he failure of government bureaus to provide such machinery as will encourage the use of alcohol for industrial purposes without leaving the door open for misuse. The tax on alcohol in prohibition times is just as illogical as was the proposal during the drafting of the Revenue Act to put a tax upon moonshine stills.
Congressional Recognition of Chemistry Believing as we do in the representative character of the Congress of the United States, it has been a matter of intense interest to await the outcome of the work of the Ways and Means Committee of the House of Representatives on the formulation of the tariff bill. This interest has been due to a desire to see demonstrated how far the American people have been aroused to a conception of the chemical industries as a nationd asset in both peace and war. A cursory reading of the bill just submitted shows plainly that this thought has been thoroughly and sympathetically grasped by our representatives, for, taken a$ a whole, Schedule 1 (formerly Schedule A) of Tariff Bill H. R. 7456 must carry to every one interested in chemistry a feeling of hope and encouragement. Should it become law, there can be no doubt of busy times ahead, for it will encourage capital to invest in the chemical industries and will inspire chemists to go about their work with a spirit of confidence, determination, and responsibility to the nation. The task of drafting Schedule 1 has been a complex one ably carried out by the subcommittee, consisting of Congressmen Longworth of Ohio, Copley of Illinois, and Hadley of Washington. In this intricate field, it is evident that they have been splendidly aided by the thorough studies of the chemical industry carried out during the past three years by the U. S. Tariff Commission. The coal-tar chemical section has been drawn along the lines pointed out by Mr. Longworth in his address before the AMERICAN CHEMICAL SOCIETY at its Rochester Meeting this spring. A bitter fight has been made upon this section by the importers and by a small group who believe in tariff even at the sacrifice of protection. Firm support has been given to the American potash industry in the form of a five-year sliding scale ad valorem tariff. This was the minimum tariff on which the potash producers claimed the industry could be developed in this country. If this section is adopted, the responsibility will rest upon those engaged in this industry to make this country economically independent of foreign potash. Space does not admit detailed discussion of the many features involved in Schedule 1, but for the benefit of those who consult the bill and find therein no mention of protection for the products they manufacture, attention is called to the basket clause, paragraph 5 of Schedule 1, page 3 of the bill: “All chemical elements and all chemical and medicinal compounds, preparations, mixtures and salts, and combinations thereof, all the foregoing obtained naturally or artificially and not specially provided for, 25 per centum ad valorem.”
The whole question of depreciated foreign exchange i? taken out of the mire by the incorporation in the bill of an American valuation clause for assessment of ad valorem duties. This wise provision of the bill eliminates gross inequalities under the present conditions of foreign exchange and places all importations from whatsoever country on absolutely the same basis. T o Chairman Fordney and the inembers of his committee sincere appreciation of their sympathetic support of the chemical industry i. due. Especially careful have they been in making provision. for the continuation of those industrirs which sprung into existence because of war needs. They
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have left no doubt of their conviction on that subject. The bearing of the dye industry on the question of national defense and the future of medicine is clearly set forth in the following extract from the Committee’s Report: A nation, therefore, which has a thoroughly complete dye industry capable of supplying its dye needs is always prepared for defensive or offensive war so far as the production of explosives and chemical gases is concerned, and the experiences of the late war have proved t h a t without these chemical essentials any nation under modern conditions is impotent either in attack or defense If, therefore, as seems likely, we are entering upon a period of international disarmament, possession of such a n industry becomes of infinite importance. During such a period a nation possessing such a potential arsenal would be in a position to overwhelm any nation less well endowed and would be practically immune from attack. Of perhaps equal importance from another point of view in the case of this industry is its bearing upon the advancement of medical and industrial chemistry. It is the one industry which deals on a gigantic scale with organic chemistry, and i t is upon organic chemistry t h a t progress of modern medicine rests. Salvarsan, for instance, was developed in a dye works laboratory and is the first known certain cure for one of the most terrible scourges of humanity. Scientists confidently predict that upon further development of organic chemistry will rest t h e discovery of cures for tuberculosis and other devastating diseases, even such as cancer. This development must rest upon a further development in this country of skilled chemists, and it is only in a dye laboratory t h a t large numbers of such chemists can find a livelihood. A well-developed dye industry here will furnish a great reservoir of technically trained men and of scientific knowledge upon which the most important industries of the country may draw in time of peace and t h e Nation itself in time of wai or threatened war. The present dye industry in this country i s absolutely a product of the late war. Up t o t h a t time Germany controlled t h e market of t h e world in dyestuffs, a n d such dye works a s we had here were mere assembling plants for German materials and supplied only about one-tenth of the American market. To-day more than 200 different concerns are supplying something like 90 per cent of t h e American market for coal-tar products i n quantity, though not in value. T h e absolute necessity of savifig and fostering such a n industry as this would seem t o be beyond argument, and the only question t h a t should arise is by what legislative method can i t s permanent continuance be assured ? Your committee is of t h e opinion t h a t no tariff duties, no matter how high, can meet t h e conditions t h a t would arise when Germany is again in a position to force her dyes and dyestuffs upon t h e American market. However other German industries may have suffered as a result of t h e war, theGerman dye syndicate is a s rich and powerful as ever. The great dye factories during the war were turhed over to t h e production of explosives and poison gases and the chemists and laborers in these factories were immune from the draft. A vast amount of dyes and dyestuffs has been accumulated in recent years and their factories are now running at full time in the production of others, and t h e whole huge German dye industry, capable before t h e war of supplying t h e entire demand of t h e world, is now combined in a single immense trust organized on purpose to fight its way back to t h e former German world monopoly. Utterly unscrupulous as t h e German syndicate was before t h e war when its supremacy was uncontested, practicing ruthlessly every form of corrupt and unfair competition known t o commerce, it is inevitable t h a t in t h e almost immediate future, when instead of safe supremacy it faces possible destruction, i t will attack all competitors with reckless disregard of business decency. T h a t attack inevitably will be concentrated upon US. France and Japan 9ome time ago in the interest of their Governmentaided dye industries placed more or less complete embargoes upon the importation of dyestuffs. Only recently Great Britain and Italy have placed a complete embargo upon dyestuffs-in t h e case of Great Britain for a period of 10 years. Russia is out of business. The market of the United States, therefore, is, except t h a t of China, Germany’s last opening. To penetrate i t and destroy our domestic industry she will stop at nothing. Under such conditions your committee is of the opinion t h a t nothing short of a limited embargo will enable the American industry t o continue in existence.
Will the House in its final vote on the bill support the proposals of its Committee on M7ays and Means?
