Vol. 21, No. 6
June 1, 1929
Friend or Foe? T HAS been several years since anything has occurred to I“American stir chemical circles so thoroughly as the formation of the I. G. Chemical Corporation,” announced in the closing days of April. Suspicions have been aroused, healing wounds have been reopened, and foundations laid for animosities. Katurally it has been difficult to ascertain the facts, and whether the new corporation is to be regarded as a friend or foe of the American chemical industry depends very much upon the interest of the one whose opinion you seek. I s it a well-thought-out effort to promote world peace by inviting the industries of vaIious countries to meet on a common ground, or is it a prime example of the camel whose nose has been thrust under the American tent? A careful consideration of all the obtainable information shows clearly that many have hastily formed opinions based upon rumors and surmises. Whatever our feelings in the case, we prefer t o form a critical opinion only after more authentic data are available for study. Perhaps we must await the actual functioning of the new organization before its trends and policies will be sufficiently revealed t o enable an unqualified m i n e r to the question, “friend or foe?”. Whatever may be left for the future to decide, it must be said that from the standpoint of those who have continued to stiive for the establishment of a n American chemical industry one or two criticisms may be made. Manifestly those n h o chose the name “American I. G. Chemical Corporation” paid little attention t o American psychology, although a certain advertising value may be found in it. The very name of the I. G. recalls t o thousands the willingness of that corporation to cut off synthetic medicinals from innocent sufferers in America in a n effort to force us t o break our neutrality. To others it awakens recollections of ruthless policies practiced to prevent competition, days of “dumping,” and unfair trade practices in export markets. To many Americans, whether rightfully or not, the 1. G. stands not so much for a successful commercial enterprise as for a government-nurtured monopoly which seeks world domination. However successful its business principles, they are believed by many to be in direct conflict with those characterizing American procedure, and the title “American I. G.” strikes many as nothing short of sacrilege. I n interviews given out following the announcement, one of the principals is credited with having emphasized the inevitable success which must follow from a “combination of German brains with American capital.” This statement would lead one to infer that, while America has money, she is sadly lacking in brain power (at least among the chemists), whereas Germany, though poor in this world’s goods, excels in chemical gray matter. This sort of publicity may aid greatly in selling bonds, and n-hen the time comes will doubtless also help in selling stock for, as the New York Herald Trzbune says editorially, ‘ An idea still not altogether dead was the myth of the mysterious German. No one whose training in chemical science originated more than a hundred leagues
from the Rhine n-as believed able to compare for an instantwhether in brains, or in magic working in the factory-with the products of that marvelous, if slightly misty school.” Without special emphasis from us our readers will be able to recall so considerable a list of research accomplishments which have grown to economic importance in this country as t o leave no doubt regarding the ability of the American scientist to cope with his fellows if he is given equal support. Quoting A. D. Little, “The world unquestionably owes a great debt to German science, but the supremacy of German chemistry, of which we have heard so much, is a thing of the past.” We are informed that at least one of the corporations controlled by the I. G. in this country has almost completely Germanized its plant. Not only have millions been invested in imported equipment, but hundreds of technicians and chemists have been put into the plant where a t present German is the language most frequently heard. I t should be remembered that under present immigration laws fifty thousand Germans may enter annually, and when it is recalled how close is the relation between the I. G. and the German authorities it will be seen that it would not be difficult to place particular men in the emigration quota. But we are informed that, notwithstanding enlargements, improvements, and reorganized personnel, large profits have not been made, and perhaps we shall see from experiments conducted close a t hand whether, after all, a combination of German brains and American capital is any more potent than American brains as thoroughly backed by American capital. Years ago B. C. Hesse reported that the element of difference between German and American research was the financial backing given the former-a larger supply of educated patient money, as John E. Teeple would say. We have always maintained that foreign capital seeking investment in America to work under American conditions with due regard for our patent laws, our wage scales, and our trade practices must necessarily be welcome and sincerely wished success. However, if American researchers, technicians, and others are to be displaced, then obviously the enterprise can scarcely be regarded as friendly, nor their policies encouraging to the thousands of youths who have been attracted t o a career in chemistry. A considerable number of German enterprises are represented in the United States but in other cases such causes of friction have been avoided and a different reception enjoyed. Sotable among the Iriteressengemeinschaft interests in the United States are the Agfa-Ansco Corporation, formerly the Ansco Company, engaged in the manufacture of photographic apparatus and supplies, and the General Aniline Works, Inc., which used to be the Grasselli Dyestuff Corporation. The great dye trust doubtless has other interests, and those disposed to be friendly toward the new organization point out that in its formation the Germans have merely taken a leaf from the book of American industry and followed the Yankee practice of establishing strong local corporations in those
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I N D U S T R I A L A N D ENGINEERING CHEiVISTRY
Vol. 21, No. 6
foreign lands where they seek to do business. It is pointed among individuals which underlies successful trade association out that it is but logical that the Interessengemeinschaft work. Indeed, the good that has come to the industry and should organize in America a holding corporation over which to the Department of Commerce through these conferences of it could exercise control a t all times and the business of executives has led to the suggestion put forward by Henry which would be to represent German interests here, to re- Howard, that the plan be adopted by other commodity diviceive and dispose of any moneys which may be paid on ac- sions and that ten representatives of the Department located count of settlements emanating from the Alien Property in the principal foreign countries be brought back for a series Custodian’s office, and engage in such active expansion of conferences. of its business as good judgment may dictate. If the GerAn auspicious meeting to be held early in June is the first man-controlled holding company sees fit to borrow money on joint meeting of the Manufacturing Chemists’ Association American assets by selling bonds to American purchasers and the Synthetic Organic Chemical Manufacturers Associaand wishes to transfer the proceeds of such a sale to head- tion of the United States. May we not hope that this is but quarters in Frankfort, then no one is justified in raising the first of a long series of such meetings, to be enlarged from an objection. The allegation that the corporation was time to time by bringing in other organized groups, and that hurriedly formed to secure money needed in Germany when, ere long some type of federation may be formed? Such a because of reparation tangles, a satisfactory loan could not strong association could speak for the chemical industry as a be floated, is stoutly denied. The project is said to have been whole, initiate concerted action, and conduct a program of constructive work leading to a realization of trade possibilities, a t least two years in the making. Colonel Donovan, in his address a t the Salesmen’s Dinner both a t home and abroad. The meeting in Wilmington will in New York, reiterated his belief that trusts and organiza- be watched with unusual interest and on all sides we hear tions such as the German I. G. no longer constitute a menace the hope expressed that it may be successful in every particuwhen they create a n American corporation to do their busi- lar. ness. This is because they must then obey our laws and we know full well how to deal with monopolistic organizations. There seems to be good ground for this view, but it touches the legal phase only and leaves us with the definite task of VERYWHERE the deepest sympathy is expressed for safeguarding and building up that which we have already those involved in the distressing disaster a t the hospital in won. The industries must expand, not curtail, their research Cleveland where, from some undetermined cause, x-ray photoprograms. Confidence may require demonstration. World graphic film exploded. George W. Crile, the head of the domination by one nation through science is only possible organization, enjoys a world-wide reputation as one of if others, by their inaction, make it possible. Our chem- America’s foremost surgeons, a man of kindly sympathies, ists must make every effort to keep abreast of research, philanthropic tendencies, technical skill, and constructive and in this they are greatly aided by such publications as imagination. It is ironical that such a catastrophe should Chemical Abstracts. American bankers need to be helped overtake an institution to which he and his colleagues have to understand and appreciate American capability and op- so unselfishly given of their time and their means. We learn by costly experience. Doubtless there are many portunity. Our chemical industry would do well to follow Colonel Donovan’s suggestion that it organize an inclusive other similar potential hazards in the hospitals and laboratrade association which offers one of the best means of tories of the country. We do not know what set o f f the film, effectively serving the units of an industry under our laws but from what we can learn the explosion was somewhat similar to that which has occurred in battleship turrets. When and conditions. If the American I. G. Chemical Corporation proves to be nitrocellulose burns with insufficient air, corrosive and suffoan entering wedge to disrupt and destroy the American chemi- cating nitrogen dioxide or its polymer, nitrogen tetroxide-depending on the temperature-is formed and this, red in color, cal industry, it will meet unyielding opposition. was probably responsible for the early accounts that bromine had done the damage. We are particularly sorry to see certain papers appealing to the misinformation which some still hold with respect to poison gas and failing to distinguish between N NUMEROUS occasions the chemical industry of the gas that is poisonous and the war gases which, in many United States has been urged to form a federation or a quarters, have been given an undeserved reputation by our general trade association. The existence of groups organized newspapers. On the whole we feel that efforts made during the last decin special fields of chemical activity would seem to offer the means through which this objective could be attained, but ade by many agencies to interest the daily press in true acminor discords have interfered. The natural differences counts have borne good fruit, but occasionally we despair. between the chemical and other industries, though tending to Had this calamity befallen some community where competent make the formation of a federation more difficult, would not scientific advice was unobtainable, certain press despatches might more easily be overlooked. I n Cleveland there are seem grave enough to defeat such a plan. Surely there is sufficient common ground for united action many sources of information which, if called upon, might have and exchange of opinions. The representatives of various prevented the newspapers from printing the ludicrous stateassociations have harmoniously served on a number of com- ments that have appeared. The press alone is not to blame, mittees, notably the Industrial Advisory Council to the however, for some interviews, if correctly quoted, displayed Prohibition Unit of the Treasury Department, and indi- inexcusable carelessness on the part of scientists granting viduals identified with the several branches of the chemical them. That film stored in any quantity should be placed in a industry have performed valuable service through the Chemical Advisory Committee to the Department of Commerce, separate building to avoid a repetition of such a disaster which last met April 18, 1929. There is reason to believe that, seems clear. How it should be stored is known and the inthrough the initiation and management of the two conferences formation upon the subject is available. Steps should be of the chemical executives, held in December, 1926, and Febru- taken everywhere to make impossible further losses from a ary, 1928, much was done to promote the better acquaintance similar cause.
The Cleveland Disaster
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An Auspicious Meeting
