Chemical aLnCgineeBlnQ.
WALTER J. MURPHY, Editor
l^J^ws Orifices! Situation JDARRING a last minute complete reversal in its thinking, Congress this week will give t h e President emergency powers to meet the international uncertainties created by the Korean situation. It is thoroughly understood here in W a s h ington that the President will delegate this authority to the old line agencies, with the Department of Commerce handling priorities and allocations. Another long established government department, such as t h e Department of Agriculture, will also receive specially delegated authority. T h u s the proponents of the proposal to use t h e old line government agencies are t h e winners, and the general consensus in Washington is that the position of the National Security Resources Board has been weakened. Furthermore, those like Baruch who urged immediate and complete mobilization with full-scale allocations, and price a n d w a g e controls, have been pushed in the background, at least for the time being. This pattern is far from what was expected in an international emergency. Most, if not all, of the mobilization plans formulated immediately following World War II have been disregarded. T h e so-called Unification Act established t h e National Security Resources Board as a "kingp i n " agency a n d an executive planning and coordinating agency in industry a n d economic mobilization. It was expected this board could p u t into effect plans it h a d m a d e should an emergency arise and it was generally believed the establishment of NSRB would prevent a recurrence of mistakes so much in evidence in t h e early years of World W a r II. It is difficult to believe that NSRB will function as it should in the light of recent developments. Instead of learning lessons from those hectic days of partial mobilization for World W a r I I , t h e pattern of butter and guns, rather than guns and butter, will b e followed— at least until further emergencies other than Korea occur, or until t h e presently proposed plan proves unworkable. Unfortunately, politics again comes first, particularly with the struggle for the control of Congress coming up in November. T h e unit on priorities and allocations of the Department of Commerce will be headed by Maj. Gen. William Henry Harrison, president of the International Telephone a n d Telegraph Co. General Harrison is a well known figure in Washington, through his long association with the old W a r Production Board, and later with t h e Signal Corps of t h e Army. Fie is a highly competent individual, an able administrator, and well qualified to develop the rules a n d regulations necessary to maintain a steady flow of matériel to t h e armed forces. If the proposed arrangement fails, it will not be d u e to lack of administrative ability on his part. According to the plans formulated by t h e Department of Commerce, chemicals and drugs will b e handled b y a group headed by C. C. Concannon, a career man in the department widely known and respected by the chemical industry. W h i l e many chemicals are in short supply, two are critically so: benzene and soda ash. Steps should b e taken immediately to alleviate the critically short supply of these two basic chemicals. It has been known for a long time that t h e supply of benzene from by-product coking operations would not b e sufficient in an emergency, yet as far as w e are able to as-
VOLUME
2 8,
NO.
36
» SEPTEMBER
4,
19
certain at this moment, no definite steps have b e e n taken to correct this situation. Benzene can be produced b y the petroleum industry, but private enterprise cannot b e expected to build plants when the price situation is as unfavorable as it has been against benzene produced from petroleum. T h e present acute shortage has forced the price of benzene to a point where the petroleum industry can compete, but should the present emergency end suddenly, producers of benzene from petroleum would be left holding the bag. Obviously the Government must provide funds for the râlants, or some satisfactory guarantee must be given the petroleum industry. There are well informed people in Washington voicing the opinion that benzene is more critical than steel. Soda ash is in short supply due to strikes in three Solvay plants: Syracuse, Baton Rouge, and Detroit, a n d the Diamond plant in Painesville. T h e Lewis Brothers, John L. and Denny, through District 50, United Mine Workers, are seeking to gain domination of the chemical industry. From their point of view it is a smart move. The coal industry is a sick industry, while the chemical industry is a healthy one. Furthermore, the Lewises, o r their advisers, know very well that t h e chemical industry is just as vital to t h e country's economy as steel or coal. According to reports, both Solvay and Diamond have offered progressive wage increases over the next t h r e e years, a cost of living bonus plan similar to that in General Motors, a pension plan comrparable with t h e best offered in other industries, including guaranteed minimum retirement incomes of $100 a month. The Lewises, however, according to reports, d e m a n d union control of the pension fund along the lines forced on t h e coal industry. If the union controls the pension funds, it gains a powerful weapon, for it can then dictate where the funds are deposited and invested. Conceivably it would b e possible to gain financial control of the very companies that the union deals with as the negotiating medium for the workers. One of the reasons benzene is in short supply is the occurrence of strikes in the coal industry that have plagued the country since t h e close of World War I I . T h e supply pipe lines have never been filled a n d , if the 10-week strike in the alkali field continues much longer, it will b e a long time before supply conditions become normal again. The union h a s a new club over the alkali manufacturers by reason of its refusal to permit alkali producers t o ship to the customers of Solvay a n d Diamond. Furthermore, a sizable amount of greatly needed shipping containers and tank cars remain idle in the strike-bound plants. There is strong likelihood that t h e first products to be placed under priority or allocation will b e benzene and soda ash. According to the prevailing thought, priorities will only be set u p for a relatively few basic chemicals. How long a system of priorities will operate successfully is a moot question. I n World W a r II it soon became evident that priorities were a little more t h a n a h u n t i n g license. W h e n products a r e really scarce allocations rather than priorities become t h e only workable solution. Furthermore, scarcity in one commodity very quickly creates scarcity in others a n d soon a priority system fails to work in a satisfactory manner.
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