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a French family, a n d brings the joy of helping a little child t o become a worthy citizen of France. T h e several French Societies transmit t h e full amount received for t h e children, withont deduction for expenses or cost of a n y kind. Local sections will please take up this matter. Members may send t o t h e Secretary, will either choose for them or secure t h e photographs of the children and history of the family helped. CHARLESI,. PARSONS, Secretary
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ons. Even those who rely on a free trade restocking Germany with raw materials, in view even of guarantees in this respect in t h e future treaty of peace, even these men cannot be ignorant of t h e fact that, in many foreign countries German products will meet with hostility which no text of treaty will be able t o prevent. Hence they proclaim t h e necessity of still greater production and a t a lower price. The particular interest which the Imperial Government takes i n the dye industry has probably still another cause due t o t h e knowledge t h a t i t has become t h e stockholder and associate of t h e great coinpallies such a s t h e Bayer, t h e Badische, etc. When i t became necessaly t o enlarge tlie existing works and NEW AFTER-WAR PREPARATIONS IN T H E CHEMICAL t o establish nexv factories equal t o the task of making munition INDUSTRY OF GERMANY1 of war, t h e State made t h e considerable advances of money T H E AGREEMENT BETWEEN T H E D Y E S T U F F T R U S T A N D T H E CARTEL O F EXPLOSIVES. REDUCTION O F THE T A X required, because the times were pressing, and i t was impossible ON WAR PROFITS I N FAVOR O F PRODUCTS MANUt o think of increasing t h e capital of the companies. A t the end FACTURED FOR EXPORT. T H E NEED FOR AN of 1917, t h e majority of t h e firms belonging t o t h e Trust had INTERALLIED TECHNICAL ORGANIZATION. increased the capital of their concerns 150 mlllion marks in Tht. organization nrhich has been called t h e German Dyestuff ' round figures, t h e flotation of the new stock t o take effect JanTrust is already old; b u t recently its development has been uary I , 1918. I t is t o be noted, however, t h a t the Bayer and completed by a n agreement with the Cartel of Powders and ExBadische companie.; each asked for t h e listing on t h e Berlin plosives. This latter, before the war, was controlled by t h e stock exchange of 18 millions of new stock and not 36 millions, hTobel Trust Co. of London, b u t a t the end of 1915 elimination the amount actually issued Similarly, the Gesellschaft fiir of t h e English company was effected by a n exchange of t h e Anilinlabriken issued 1 2 millions and asked for t h c listing of German shares which i t owned for English stock held by German only 5.8 million marks. I n view of t h e debt contracted b y firms. T h e Cartel of Powders and Explosives then comprised these companies wlth the State and t h e zeal of the latter for t h e only houses of German nationality whose nominal capital repreinterests of the public treasury, the natural conclusion is t h a t sented a total of about IOO rnillion marks. At t h e present the repaying of the sums advanced by the Empire was effected moment, however, t h e financial strength of the group is conby remittance of new stock, which, of course, was not admitted siderably greater; t h e profits made, t h e reserves established, t o dealings on t h e Bourse. T h e result is t h a t t h e Empire has a n d t h e enlargemeilt of plants are all proofs. I n fact, during made a n excellent investment (the last dividend of t h e Badische t h e war, such factories a s t h e Bayer and Badische have produced was 2 j per cent), it will be represented on the boards of directors, almost exclusively explosives, gases, and acids, andthese havebeen and becomes directly interested in t h e prosperity of these comfurnished as raw materials t o companies manufacturing powders panies. They are now certain t h a t all the powers of the governa n d explosives. Hence t h e two cartels w-hich have concluded ment will be exerted in their favor. a n agreement have a n output of very similar products. There T h e first result of this association is that, from this moment is no doubt t h a t t h e illstallations made and developed for t h e manufacture of explosives, gases, and munitions will be main- the Imperial Government will grant t h e remittance of a large tainecl as they are, ready t o function from t h e s t a r t of the next part of t h e tax on war profits t o t h c manufacturers of dyestuffs and chemical and pharmaceutical products which are actually war. Therein lies a n urgent counsel of If.Rathenau, and German being made for export as soon as hostilities have ceased. technicians declare on cvery occasion t h a t never before did they Under such conditions the chemical industry of the enemy will begin a war with such a n inferior industrial organization, t h a t be in a position t o produce merchandise of various kinds a t a i t is necessary t o be better prepared for the next one-a provision for t h e future which will not prevent them from employing, price which costs the manufacturers nothing. From t h e first in t h e meantime, t h c factories and materials in t h e manufacture day of peace they will export this merchandise and will be able of chemical and pharmaceutical products, synthetic perfumes, t o deliver it in Great Britain, France, Switzerland, Italy, and etc. Thus, t h e aim and object of the organization of t h e Dyet h e United States a t a price which will not represent even t h e stuff T r u s t is to give its directors t h e mastery of trade, domestic customs duties, however high, imposed by these different counand foreign; i t is t o preserve this t h a t t h e Trust has concluded tries. T h e budding industries of the Entente nations will t h u s be placed in a position in which i t is impossible t o live, and their a n agreement with t h e Cartel of Explosives. Accordingly there is now i n Germany a single concern selling competition so much feared by t h e enemy wil! be killed in t h e dyestuffs, chemical and pharmaceutical products, a single germ. T h e Germany monopoly once reconstituted and become purchaser of prime materials for these industries, and this Trust defiilite i n aim, cost prices which are remunerative will be fixed, is already assured of t h e ownership or control of several lignite and the products of its chemical industry will again serve as mines of importance. This concentration should permit t h e excellent atticles of "compe~lsation" t o obtain favorable treatreduction t o a minimum of the cost price and t h e fixing of export ment for other merchandise. We must not deceive ourselves as t o the grave danger presented sales prices a t a figure whi'ch will enable products t o pass over tariff barriers. Preparations for beginning exports when hosby this hIachiavellian combination, especially for France, Great Britain, and Italy, for in Switzerland and in the United tilities have ceased are complete, reaching t h e point where t h e nlerchandise is already packed and labelled, either in French or States the dyeqtuff industry is more developed, while t h e United English, while catalogues in both lai~guageshave already been States possesses raw materials as compensation, such as copper printed. and cotton, which will afford t h e means of a n economic struggle. B u t t h e efforts made in Great Britain and France t o establish B u t in France and Great Britain i t is scarcely likely t h a t manuand develop t h e dye industry and manufacture of organic prod- facturers will be in a positlon to supply t h e necessary dyes and pharmaceutical products when peace is made. Industries which ucts, t h e rapid a n d unexpected development of this industry utilize dyestuffs will find themselves in the presence of German in t h e United States and in Switzerland, have caused a feeling of uneasiness i n t h e Trust, and also, in t h e Imperial Govern- offers, ready for delivery a t a n extremely low price, whereas British and French firms will have, in the case of many article3 ment, which considers dyes t o be one of its best economic weapof mauufacture, only promises or very high prices. It is more. 1 Translation of an article in Chimie et Industrie for June 1 , 1918.
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t h a n doubtful whether a considerable number of these consumers will postpone business activity until t h e moment when they will be able t o obtain t h e product3 of national industry. I n every way all possibility of exportation will be extinguished, Germany haviAg recaptured her clientele in every country where chemical itidustry has not been solidly established. I n France and Great Britain men are strongly individualistic and opposed t o concentrations of industry; we talk readily of good relations between commercial houses or the laboratories, but the bonds between factories remain loose for t h e most part, and those between companies belonging t o different countries are far more relaxed. I n face of the German Trust which, thanks t o its organization, can sell a t a n y price whatever, it is t o be feared t h a t there are concerns of more or less financial strength, several of which will manufacture the same article and will perhaps compete with each other while other articles of merchandise will be lacking. In this case tariffs are not a remedy, for duties, however high, will be powerless t o prevent the penetration of articles which the Germans will be able t o sell a t a n itlsignificant price and which cannot be supplied by other countries. We wish t o point out that, in relying on high tariffs, we may be mistaken, while their establishment against neutrals will raise grave difficulties. I t is well known lhat, for this reason, t h e intervention of neutrals is part of the German program. Does this mean t h a t we must be resigned, or expect everything from t h e prohibition of imports of enemy chemical products? Certainly not, but it is necessary t o resort t o energetic measures, however rigorous they may appear t o our habits of independence and liberty. The first thing t o realize is the methodical r e - a l l o t m e ~ ~oft labor and t h e specialization of manufactures in t h e countries of the Entente. For this purpose it would suffice if, in these countries, the entire group of corporations which n~anufacture dyestuffs, pharmaceutical products and derivatives were in agreement t o accept a central committee of technical directors. This committee, knowing the needs of each country and versed in t h e material and technical resources of its works and factories, would introduce a special organization into each, of such a kind t h a t each product would be manufactured b y one or two works, which would permit t h e most economical production and a n output nearest t o the centers of demand. T h e same technical committee would effect likewise a specialization of t h e munition factories before they are used for after-war purposes. Under these conditions t h e business and administrative freedom of all these companies would remain untouched, b u t the technical direction would be t h e work of one board-a system which implies the minimum of interference with the life of t h e most individualistic of concerns. T h e technical committee would all be experts trained t o receive the communication of researches made in t h e laboratories and t o indicate thosc which appear t o them useful. It would seem t h a t with such a n organization our manufacturers might arrive a t a point where they could make themselves independent of Germany in the matter of nearly all the products which she counts upon supplying a t the end of hostilities, either directly or by t h e intermediary of a borrowed neutral name. Then custom duties might be raised until they reached a prohibitive level. n/leasures of this order certainly constitute a n assault on t h e independence of corporations, b u t it must not be forgotten t h a t it is a question of life or death for our infant chemical industry; it was permissible, in a rigorous sense, t o hope for success in face of the German trust, b u t before t h e perspective of a combine which will permit the enemy t o make a pretense of renouncing dumping, under the guise of selling for almost nothing, the struggle of isolated industries becomes impossible, and hence a technical organization is a necessity, we may cven say, a duty. R. PETIT Professor of the Faculty of Sciences of Nancy
10,No. 1 2
THE AMERICAN DYESTUFF INDUSTRY AND ITS PROSPECTS With t h e advent of 1918the American chemical works, and especially t h e dyestuff factories, were confronted with numerous problems. Owing t o the requirements of home and Allied industries they found themselves in a difficult position, for, despite all promises, they were not able t o command a sufficient, nor even a moderately satislactory supply of the most important fundamental materials. Americans, induced by t h e promises of company promoters, and with a n eye t o great expansion of the markets, have invested, since the outbreak of t h e war, about 2 2 5 million dollars in dye works, and yet, as they expressly give ,out, have produced only dyes which hitherto have been made only in Germany. How much of this vast sum has been actually paid in, i t is not possible t o judge, but it may be admitted t h a t the companies are very much "watered." I n order t o provide security for this capital, those interested clamor for a protective tariff, by which, after the war, they are t o be preserved from a destroying competition. T h e interested circles point out t h a t war requirements have diminished stocks of raw materials throughout t h e world, so t h a t the prices of clyestuffs and technical chemicals even after t h e war nil1 hold a t a n abnormal figure. T h e same circles t r o t out t h e old fable according t o which Germany has accumulated important quantities of dyestuffs and chemicals with which t o inundate the world's markets after the war. Experts, however, with keener insight, d o not support this view, suspecting i h a t Germany herself has experienced a certain shortage of raw materials for this purpose. The greatest concern of the American producer is the fear that, after t h e war, Germany will purchase large quantities of raw materials in the United States. Although t h e industry has a specious appearance; a s if some of the leading factories had achieved a fair amount of success in making some products, t h e position of a portion of t h e industry is regarded a s insecure, and even a s distinctly a hazard. A feeling of decided irritation was observable when the Government in 1917 commandeered all supplies of methyl alcohol a t a fixed price, since methyl alcohol rorms the basis of many dyestuffs. At t h e same time t h e Government took over the entire output of toluol, and all gas companies were required t o set u p ovens for t h e preparation of t a r products. I n spite of the efforts of t h e dye manufacturers, consumers complain t h a t the prices of dyes are still very unfairly differentiated from those existing before the war. I n addition t o this, t h e quality of the dyes, in t h e judgment of the textile industry, leaves much t o be desired; t h e textile products, especially for military purposes, are not satisfactory, a s their fastness t o light and water is uucertain. T h e general opinion is that, so long a s n o foreign cotnpetition breaks down i t s development, the American dye industry may well he in a position t o satisfy a demand restricted by defects of quality and fastness. But in its present proportions t h e American industry has not grown up t o the demands of fashion and of other individual consumers, so t h a t its development in 1918 will run in the grooves of the past year, and this means t h a t only staple dyes without much variety will be produced.
THE JOURNALS OF THE AMERICAN CHEMICAL SOCIETY Editor of the Journul of Industrial and Engineering Chemi~try: It has often occurred t o t h e writer t h a t t h e journals of the show a peculiar dissin~ilarityin AMERICANCHEMICALSOCIETY t h e headings of t h e solid pages of readirlg matter, and might possibly with slight changes he made a little more convenient for one nsing them in reference. Presumably t h e present arrangement follows custom or precedent and is designed t o I Tratlslation of an article reprinted in the Zeilschuift fiir anpewanrfte Chemic, March 19, 1918, from the Norddeutsche Allgemcine Zeilung.
