Vol. 22, No. 9
The Nitrogen Kaleidoscope MORE kaleidoscopic picture than the element nitrogen A has presented would be difficult to find in modern chemistry. The development, from the time of predicted calamity because of the scarcity to the formation of a vast international agreement because of a surplus, has fallen within the span of a generation. A late news dispatch has it that an agreement has been reached between the European cartel and “Cosach”--a term derived from the Spanish “Compania Salitre de Chile”-the new Chilean corporation involving substantially all the producers of natural nitrate, which includes the Guggenheim interests and the Chilean Government. This agreement brings together 9s per cent of Europe’s producers of synthetic nitrates and the new single unit representing 100 per cent of natural nitrates. It leaves, to play a lone hand, those producing synthetic nitrates in the United States. It is an interesting situation, in which we see no cause for alarm. The agreement reached a t the Paris conference has some of the elements of dissatisfaction which, in inore than one instance, have led to the premature disruption of a carefiilly planned combination. However much overproduction threatens a loss of profits and the disturbance of a business, individual units in a combination dislike very much to be placed upon a production quota. The rumor is that, as a result of the Paris conference, the quota for Great Britain is to be 50 per cent, Poland 40 per cent, and 30 per cent each for Germany, Belgium, Holland, and Italy. Indeed, the conference is said to have been greatly prolonged by the deepseated disinclination of Italy to accept such an allotment, and this report has also been denied. Undoubtedly the stabilized prices which it is expected will result from the formation of this nitrogen cartel will greatly benefit all those who have engaged in nitrogen fixation or the preparation of natural nitrates, no matter what the process. It is the uncertainty of business conditions which is dreaded far more than low prices. Presumably the concentrated sales effort and research to expand uses and new applications should result in gradually increased production. If unnecessary overhead can be eliminated simultaneously, prices should eventually be lower without loss of profit. It may be difficult to persuade the farmer to buy still more fertilizer in view of the alleged world food surplus. Certainly he will not do so until convinced that he can reduce his costs by using more fertilizer on fewer acres, instead of employing labor on an increased acreage. The American producers of fixed nitrogen would seem to be left in a favorable position. There is no reason to suppose that nitrogen can be fixed a t any lower net cost per unit anywhere else in the world than right here in the United States. The manufacture of synthetic sodium nitrate in competition with the natural product and with a profit was one of the things declared abroad to be impossible, but this is apparently being accomplished a t Hopewell a t the present time. The tremendous capital investments in plant,
September 1, 1938 property, process development, and other expenses may serve to maintain a world price through the new international cartel that will be advantageous a t least to the American producers who have been left independent free lances. We hope they will remain such. But for what has been done in research and industrial development in the United States, a world cartel restricted by our Sherman law, fortified by court decisions of the last year or two, could give American consumers of nitrate great concern. As it is, however, we believe both producer and consumer are in a very satisfactory position. It would certainly seem as if such large consumers of fixed: nitrogen as are the agriculturists could not fail to be impressed by the advantages secured through such cooperation as the. nitrate producers display. The difficulty of controlling agricultural production has frequently been explained. I t cannot be done by a half dozen men seated about a table i n Paris. But the stabilization of world production, and through that world prices, of an agricultural necessity should furnish a stimulus for the large purchasers of nitrate to continue their effort t o form some sort of an organization through which concerted action could be taken in the purchase, not only of such raw materials as their fixed nitrogen, but alsQ of their own finished products.
Court Decision Involving Dedication to Public H E general question of patents issued to government employees and dedicated to the public, as provided by the act of March 3, 1883, still remains clouded, notwithstanding all of the laws aimed a t clarifying the situation, together with the various departmental regulations. The latest addition to the list of rulings and decisions is t h e opinion handed down in the case of the Selden Company, plaintiff, against the National Aniline and Chemical Company, Inc., defendant, which concerned the title which the Selden Company believed it had to patents issued to Harry D. Gibbs and Courtney Conover, and the reissue patent to Conover. of AuThis decision was abstracted in the YEWSEDITION gust 20. The important point is that, since the patent had been dedicated to the public, there was no title which t h e Selden Company or any other company or individual could obtain to the process, so as to exclude its use by other Americans without payment of royalty. Because of the influence upon the rights of other inventors who had taken similar patents under the law of 1883 and likewise had dedicated them to the public, this suit has been of more than usual interest and appears to be a t least the third case which has been decided in the same way and on the same basis within the last few years. While in this fashion the law ultimately will become definitely interpreted and precedents will be established, it would aid materially if some competent congressional committee would wrestle with this complex problem and by new and adequate legislation definitely clarify and settle the whole question.
