tablishmcnt of a position of vice president for government relations. In a SJnailer corporation, it might be a d v i s a b l e t o designate a present officer of t h e comp a n y to serve in this capacity in addition t o his regular duties. T h e essential point, h o w e v e r , is that the responsibility for g o v e r n m e n t relations b e placet! on the t o p - m a n a g e m e n t level of the company. T h e vice president for government relations reports to the president of t h e corporation. He is responsible for: < 1 ; Recommending t o the p r e s i d e n t policies with respect to relations w i t h t h e government. ( 2 ) Establishing necessary channels directly with government agencies or t h r o u g h a Washington representative or t r a d e association, to assure t h e receipt of ail regulations affecting t h e c o m p a n y . ( 3 ) Transmitting these regulations to t h e executives of the company whose activities may b e affected thereby. ( 4 ) Assisting in obtaining interpretation of t h e regulations. ( 5 ) Providing for systematic t o l l o w - u p on executives to assure compliance with regulations. ( 6 ) Preparing periodic reports for t h e President and Board of Directors o n curr e n t status of the company's performance u n d e r government regulations. (7) P r o v i d i n g a s s i s t a n c e to the F e d e r a l G o v e r n m e n t i n t h e d e v e l o p m e n t of r e g u l a t i o n s directly or t h r o u g h other c h a n n e l s . T h e d e l e g a t i o n of t h e s e r e s p o n s i b i l i t i e s t o a s i n g l e t o p e x e c u t i v e d o e s not r e l i e v e t h e o t h e r k e y e x e c u t i v e s of t h e i r r e s p o n s i b i l i t i e s for c o m p l y i n g w i t h t h e r e g u l a t i o n s p e r t a i n i n g to t h e i r r e s p e c t i v e d e p a r t m e n t s . O b v i o u s l y , n o o n e i n d i v i d u a l can b e e x p e c t e d t o k n o w all g o v e r n m e n t r e g u l a t i o n s .
T h e p l a n p r o p o s e d h e r e is t o p r o v i d e a s s u r a n c e a n d protection to t h e c o m p a n y that regulations are being complied w i t h a n d to e s t a b l i s h a c e n t r a l s o u r c e t o p r o vide assistance to t h e G o v e r n m e n t . T h i s p l a n p r e s u p p o s e s t h a t r e s p o n s i b i l i t i e s of e a c h m a j o r a r e a of r e g u l a t i o n s , s u c h a s priorities, allocations, and renegotiations, a r e c l e a r l y d e l e g a t e d t o a n e x e c u t i v e of t h e c o m p a n y . By t h e s e m e a n s , y o u c a n e s tablish an organizational structure that will greatly facilitate the necessary coordinat i o n of y o u r b u s i n e s s w i t h t h e G o v e r n ment. Summary In s u m m a r y , t o a c h i e v e o u r t w o b a s i c objectives—( 1 ) W e can h e l p the governm e n t establish practical regulations. (2) W e can comply with the established regul a t i o n s w i t h t h e m i n i m u m of d i s t u r b a n c e to s o u n d business practices—eight p r o gressive steps should b e t a k e n . These steps are: ( 1 ) D e s i g n a t e a key executive to b e r e s p o n s i b l e for g o v e r n m e n t r e l a t i o n s a n d see that other executives are brought into t h e p i c t u r e as r e q u i r e d . ( 2 ) Study thoroughly present mobilization laws and regulations that pertain to the particular industry. ( 3 ) D e s i g n a t e a key executive to b e r e s p o n s i b l e for c o m p l i a n c e w i t h t h e s e l a w s and regulations. ( 4 ) A f t e r c o n s i d e r i n g t h e effect of t h e s e laws and regulations, review them again f r o m a n a t i o n a l p o i n t of v i e w . ( 5 ) D e f i n e t h e p r o b l e m s of t h e i n d u s try under these laws and regulations, a n d d e v e l o p a n s w e r s to these p r o b l e m s in written form.
materials
"^EuBiCtrr
THE EFFECT OF
[ Ci > D e t e r m i n e ht be c h a n n e l through w h i c h w e c a n he mo: lost e f f e c t i v e in w o r k ing w i t h t h e G o v e r n m e n t . ( 7 ) Direct the answers to our industry's problems t h r o u g h this c h a n n e l to the w o r k i n g l e v e l ot t h e a p p r o p r i a t e a g e n c y . Get b e h i n d t h e W a s h i n g t o n g l a m o u r t o thi' w o r k i n g l e v e l — h e r e is w h e r e n e w i d e a s and r e v i s i o n s in p r e s e n t r e g u l a t i o n s o r i g i nate. (8) When you receive from the G o v e r n m e n t r e q u e s t s for i n f o r m a t i o n t h a t apnear to b e unnecessary, write to the Advisory C o u n c i l o n F e d e r a l R e p o r t s , 1615 H S t r e e t , N . W . , W a s h i n g t o n , D . C . , and e x p l a i n y o u r r e a s o n s . T h i s is a p r i v a t e organization sponsored b y t h e United States C h a m b e r of C o m m e r c e a n d o t h e r business o r g a n i z a t i o n s . T h e s o u r e e of criticism w i l l n o t b e r e v e a l e d . Tliese steps are t i m e - c o n s u m i n g a n d are costly to a c o m p a n y . H o w e v e r , in v i e w of t h e e x t e n s i v e effect of g o v e r n m e n t r e g u lations o n b u s i n e s s t o d a y , it is c h e a p e r t o face t h e m s q u a r e l y . G o v e r n m e n t r e g u l a t i o n s are' c e r t a i n to p r e s e n t m a n y o p e r a t i n g p r o b l e m s for all of o u r b u s i n e s s e s . T h e r e is n o i n d i c a t i o n , at l e a s t , t o d a y , t h a t w e c a n a v o i d s o m e form of g o v e r n m e n t r e g u l a t i o n s : b u t w e can —and s h o u l d — t a k e s u c h s t e p s a s will facilitate t h e c o n t i n u a n c e of o u r b u s i n e s s with t h e m i n i m u m d i s r u p t i o n o t A m e r i c a n business p r a c t i c e s a n d p r i n c i p l e s . W e can help g r e a t l y in m a i n t a i n i n g t h e A m e r i c a n way of b u s i n e s s b y o r g a n i z i n g so t h a t w e can h e l p t h e g o v e r n m e n t e s t a b l i s h p r a c t i cal r e g u l a t i o n s , a n d b y o r g a n i z i n g s o t h a t we e a n c o m p l y w i t h t h e e s t a b l i s h e d r e g u lations w i t h a m i n i m u m of d i s t u r b a n c e t o sound b u s i n e s s p r a c t i c e s .
Not substitutes, but important are available in . . .
and
useful
Chemicals and Plastics
REGULATIONS O N COMMERCIAL CHEMICAL
F. H . C A R M A N , Assistant Secretary, Manufacturing Association, Inc., Washington, D. G
Chemists'
DEVELOPMENT T H E mobilization program increases from month to month and controls are imposed on t h e use of many engineering materials, more and more people b e c o m e interested in plastics. T h e publie and m a n y industrial experts not conversant with t h e chemicals and plastics i n d u s t r y h a v e been prone to look upon plastics as readily available substitutes—this is far from a reality. In many instances plastic materials are in shorter supply than steel or aluminum today, and this exists in spite of the great expansion which has b e e n V O L U M E 2
9.
NO.
made in the industry- since World War I I . Early in 1950 plastics were operating at probably their highest production levels in history, yet producers were not able to take care of all requirements. Generally, most materials manufacturers could not produce at capacity because of restricted supplies of many basic chemicals. Plastics are now a major claimant for many basic chemicals and must compete with other essential e n d uses for the available supply. T h e industry is now of such m a g n i t u d e that no shift in demands for plastic ma-
I S ^ ^ . A P R ' L i n ^ Q s i
terials can be made without placing a terrific stress on t h e chemical manufacturer. No substantial expansion can be undertaken without provision for basic chemicals, hence commercial chemical development studies become factors in any major move in this industry today. The critical supply position for many chemicals has been covered by the press and previous reports to the industry. Some of the materials now in short supply for plastics are benzol, phenol, resorcinol styrène, phthalic anhydride, methanol, chlo1719
rim·, calcium carbide, ethyl alcohol, chemical cotton, ethyl chloride, glycerol, urea, and melamine. Civilian requirements for plasties arc now much greater, on a percentage and poundage basis, than was the case at the time of World War II. During the period 1942 through 1945, plastics may have been substitutes in a number of instances. Siixv that time, however, main products have been improved by redesign to use a specific plastic material, new products never before available are now using one specific material, and they could use no other. The supply problems now facing the industry cause major dislocations that are felt throughout the economy. Supply in Relation to Metal Production Capacity for manufacture of steel in 1945 was about 90 million tons, it is now approximately 100 million tons, and will be increased to about 117 million tons by 1953. The Defense Mobilization Director recently estimated that by 1953 therewould be approximately 90 million tons axailable for civilian uses. Prior to Korea there was an estimated annual capacity for 1 million tons of aluminum and a 5()rA increase is forecast by 19.53, which should result in civilians obtaining as much material as they used in the early part of 1950. In 1944 about 450,000 tons of plastics and resin materials were turned out, and last year a figure in excess of 1 million tons is believed to be a conservative estimate. Yet, most suppliers in 1950 did not operate at capacity, and the fabricators could have used far greater amounts of material. But this million tons of plastics is made up of many différent materials, varying in such forms as liquid and solid resins for adhesives and binding abrasives, glass wool, cork, and sand cores; sheet materials; elastomeric compositions, such as the vinyls and polyethylene; and rigid molding in both thermosetting and thermoplastic materials. These variations are even greater than those found in all the metals, wood, and fabric, and thus plastics should be considered anotlier class of diversified engineering materials. Hence, the figure of 1 million tons is somewhat misleading because of the vastly different materials making up this total. Approximately 207,000 tons of phenolics were manufactured in 1950, of which 110,000 tons were molding materials. A total of 105,000 tons of urea and melamine plastic materials were produced in the same period; this includes all molding materials, adhesive resins, and other miscellaneous resin materials, and represents a sizable increase for these plastic products. The largest single group of plastic materials produced in 1950 is the vinyl resins, which were manufactured in excess of 250,000 tons. Styrene plastics accounted for 156,000 tons, 130,000 being molding materials. Cellulosic plastics reached a volume of 65,000 tons. Other resin and plastic materials, such as t h e alkyds, acrylics, and polyethylene were also pro1720
"CRANK C A R M A N , Ohio b o r n and b r e d a n d cdu·*- cated, began his career after graduating from the University of Akron with the B. F . Goodrich Co. H e came east to join t h e Armstrong Cork Co.. and w h e n World W a r II b r o k e out h e b e c a m e a dollar-a-year m a n in the Office cf Production Management to handle priorities and allocations on neoprene. This was later e x p a n d e d to include synthetic rubber and vinyl resins as the war program progressed. Also included in his w a r record was his position as chief of t h e plastics section of the Chemicals Bureau of W P B . H e was general manager of the Plastic Materials Manufacturers Association when it consolidated with the Manufacturing Chemists' Association last year, and is now assistant secretary of M C A . duced in record quantities during the s.une period. Even though the density of most plasties is much less than that of metals ( a b o u t one-half t h e density of aluminum and one-fifth or one-sixth that of steel), a straight volume replacement for metal is usually not possible. This comparison of plastics a n d metals availability should show that substantial replacement by plastics merely for the sake of substitution could make little savin.c in metals consumption. Substitutions? At the present time, it is believed safe to say that the supply of these materials is generally more critical than that of aluminum or steel for most civilian products. Therefore, if an end use is not of sufficient essentiality to justify the use or these metals, then it is questionable il plastics could be made available through NPA or government allocations. Plasties generally should not be regarded as substitutes, but as basic engineering materials supplementing wood, metal, fabrics, etc. In many eases they are superior to other materials allowing a broader choice of manufacturing processes; conversely, they make poor substitutes if improperly used. E v e n ' plane, ship. tank, and piece of soldier's equipment will require plastics in some form. Wherever electricity is handled, plastics will b e used. Chemicals and plastics have reached a greater importance in our economy than ever b e fore and the armed services as well as industry in general will naturally turn more and more to these materials as metals, wood, fabrics, etc.. become more critical. The Future It is of course hazardous to make any firm statements on what is ahead because that is the easiest way to have one proved wrong. I think the best way to leave this subject is to give the current interpretation of the inscription on t h e Archives Building in Washington which reads " T h e Past Is Prologue." One of the cab drivers is supposed to have interpreted this to mean "You Ain't Seen Nothing Yet/' There is considerable misdirected enthusiasm on the use of plastics as a substitute for supposedly scarce metals. F o r example, a magazine recently carried a CHEMICAL
paragraph statmu that a new glass fiber pol. ester plastic· construction was equivalent to lightweight steel in strength and of considerable interest to the Air Force. Although developed for military aircraft, the material t-oiilcl relieve m a n y honniront h e a d a c h e s as a substitute for "defense-scarce aluminum a n d light steel" in a variety of products. Actually, the manufacturers of s u c h plastic products are unable to obtain sufficient material today for production ot items especially designed for the use of these materials. To supply additional materials for production of these resins will require diversion of chemicals from other essential products Therefore, use of such plastics will depend entirely on t h e essentiality of t h e end product and in the long run it is quite possible that aluminum or steel would be made available unless some particular property of t h e plastic justifies use and diversion of chemicals to permit this production. When plastics are treated as another engineering matt'rial, and the properties of any specific t> p e are taken into consideration in the design of a product, and it is a sound application for that material, then the industry Κ heartily in favor of substi tution—if we must use the t e n u . An ex ample of this type of engineering and de velopment is the "Unicel" freight car which resulted in a stronger, lighter car at lower cost, ami one that will cost less to operate \un\ with less b u r d e n on the roadbed. An important feature in this development is t h e fact that freight car builders brought it out. They looked upon synthetic resin bonded plywood and lami nated or assembled lumber as materials of construction somewhat different from steel and designed the car on this basis. It is not a substitute but is an improvement over the older steel car. Other examples of developments to use specific types of material include the manyapplications for vinyl films, the produc tion of large moldings in b o t h thermoset ting and thermoplastic materials, the use of special resins for textile-treatment t o ob tain specific properties, the use of synthe tic resin adhesives in providing plywood and wood products of better quality, new coating compositions, housewares of all descriptions, a n d sand core b i n d e r s . These are sound uses of chemicals and plastics; they are good examples of markets develAND
ENGINFFRING
NEWS
oped ior a specific basic material that have paid off. Defense Requirements Priorities and allocations will he insti tuted in increasing numbers to insure pro duction of war products. There will also be special provisions made tor cither es sential nondefense programs as the defense " t a k e " increases to the point that priorities require increasingly larger amounts. T h e mechanism to provide M R O supplies has now been instituted. Generally, the chemi cals and plastics required for direct war products are available in sufficient amounts to easily take care of the defense program and a fair percentage of t h e essential civilian requirements. Of course there are some instanees where special types of materials are manufactured in relativelv low volume and thus a high percentage is required for defense items. Based on experience with the iudustrv in the past war and the current require ments for defense products, I do not feel the mobilization program will require
nearlv as large a share of the total as was the case in 1944. Because of the relatively large volume of production for most ma terials in relation to the prospective amounts required for war products, priori ties and allocations ior these materials cannot be expected to provide additional quantities in the aggregate simpK because basic chemicals just are not available. Another way of saying this is that D O orders will not increase the over-all s u p p h but merely ehange the pattern of distribu tion in some respeets. Within the industry, those having the DO's may fare a little better to the disadvantage of others but die real reliei will come onlv when addi tional chemicals are available. Therefore barring any major dislocation, d u r e should not be any great change in the distribu tion pattern of basic chemicals to plasties manufacture and in the chemical industry in general. The problem will b e to con tinue an equitable distribution of the civilian portion. Most producers with whom this has been discussed feel that this is a function which should be· handled
b\ the individual businessman rathei tli.m through controls from Washington, il though admittedly it is fraught with ιη.ιην complications and headaches. T h e chemical industry differs iuiul.t mentally from other industries because of the maimer in which the stream of prod nets branch into unrelated end uses, the un avoidable by-products, and wide choice of alternate manufacturing processes .md possible substitutions of chemicals. Naturally during this period oi hi^h levels of production of lx)th civilian and defense products and a general shortage of all types of engineering materials, there will be many opportunities for new uses and development of end items where full advantage should be taken of the proper ties of a specific material. This emergency and tin- status the chemical industry lias attained in the last five years, provides a golden opj-HUtunity for sound development never before presented this industry in such magnitude. T h e steps taken in the next two ν ears as mobilization get going ina\ well affect the future for some time.
From World War IS, we have experience in government-industry relations that may be used as a . . .
^r^tfafi~
Pattern for Cooperation
THE EFFECT OF REGULATIONS O N COMMERCIAL
ADDRESS BY REAR A D M I R A L B U R T O N B. BIGGS, U S N , Executive Secretary, Munitions Board, Washington, D. C.
CHEMICAL DEVELOPMENT WE ARE living in a troubled age. T h e decision has been made that if war is to b e averted, this nation and all those w h o would see peace maintained must place themselves in such a state of readiness that no potential aggressor will be so bold as to take steps which would plunge t h e world into another great conflict. T h i s d e cision is going to affect the status of every individual, every business organization, every industry, and our economy as a whole for some time to come. Representatives of our great chemical industry must make decisions in t h e months to come which will influence n o t only the chemical industry but m a n y others. These decisions must comply with certain regulations and at the same t i m e contribute to the health of the industry as well as our defense economy. W e w e r e fortunate in World W a r II in that we h a d time to experiment w i t h weird and wonderful systems for b u i l d i n g our industrial might up to t h e level to support t h e war that was going on. It is my opinion that w e cannot afford so m u c h experimentation again. Our potential enemies know that this nation can b e d e
feated by only one method--that method, hinges upon the destruction of o u r indus trial might. They must strike h a r d and swiftly to be successful, while a third world war is not inevitable. If w e are t o be suc cessful in averting it we must build up our own strength and ensure, with all means at our disposal, that all peace-loving nations d o t h e same—a consummation devoutly to b e wished. But you and many other peo ple are asking "just where do w e fit into this program?" My association with the petroleum in dustry has exposed me to certain informa tion, in other words—statistics! T h e petro leum industry occupies a peculiar position in that it is one of the chemical industry's biggest customers and at the s a m e time a large competitor. From the military stand point, the interest in this paradox is two fold; how can the petroleum industry make the greatest contribution to the essential chemical supply and how can the chemical industry meet the ever-increasing require ments of the petroleum industry? Statistically, what is h a p p e n i n g now? T h e petroleum industry consumes 1.5 million tons oi sulfuric acid p e r year
V O L U M E
APRIL
2 9,
NO.
18
3 0,
1951
( a b o u t l'Sc/c of the total p r o d u c t i o n ) , 20,000 tons of chlorine, 20,000 tons of am monia, a n d slightly under 10% of the sodium hydroxide production. It is indi cated that over 100 chemicals, ranging from acids to zinc salts, essential to petro leum operations can he short of require ments. On the other hand, the petroleum in dustry has brought forth that gargantuan child —the liquefied petroleum gas busi ness. His appetite has grown from 313 million gallons in 1940 to 2.8 billion gal lons in 1949: this nine-fold growth has been exceeded by a 16-fold growth in the use of these gases as chemical raw mate rials. The use of these gases for synthetic rubber has risen to 250 million gallons per year. Other remarkable increases include: toluene production in 1940—100,000 gal lons, in 1949—82 million gallons (the war peak was 169 million gallons produced by the petroleum industry out of a 208 million gallon t o t a l ) ; during 1949 the petroleum industry produced 49 of the 57 million gallons of xylene; benzene production is being increased and the goal is 100 million gallons from petroleum as compared with 1721
