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INDUSTRIAL AND ENGINEERING CHEMISTRY
Vol. 17, KO.8
EDITORIALS Synthetic Ammonia T IS a pleasure to present t o our readers in this issue two Iscribing articles dealing with the synthesis of ammonia-one dea remarkable catalyst testing plant, the other a factory-scale process already in operation. America has been accused of slowness in the development of synthetic nitrates, but a survey of the situation cannot fail to lead t o the conclusion that, after all, America is pursuing a rational course and is particularly strong in the research and engineering involved in this new industry. The data which we present with respect to commercial production are based largely upon experience in the design, construction, and initial operation of a plant having a daily capacity of 3 tons of anhydrous ammonia. The first attempt to operate this unit proved unsuccessful, but within twenty-five days the difficulties, principally mechanical, were overcome. The plant has been in continuous operation since, save for four days when a shutdown was necessary to make changes in electrolytic cells. This record performance brings much credit to those connected with the enterprise. A number of plants are either in operation or under construction a t the present time. Those operating are the Atmospheric Nitrogen Corporation a t Syracuse, daily capacity 30 tons, using the modified Haber or General Electric process; the Niagara Ammonia Company a t Niagara Falls, operating the Casale process, present capacity 13 tons, to be increased to 18 by the end of the year; the Mathieson Alkali Works at Kiagara Falls, producing 3 tons daily with additional capacity of 10 tons in prospect, and using features of several processes; and the Pacific Nitrogen Corporation a t Seattle, operating what has been called the American process, capacity3 tons. Two plants are under construction: one, that of Lazote, Incorporated, 25 tons capacity, using the Claude process and being erected a t Charleston, W. Va.; the other is the %ton unit of the Roessler and Hasslacher Chemical Company a t Kiagara Falls, where the American process is t o be installed. At least two other companies, the Grasselli and the Dow Chemical Company, are said to be interested and carefully looking into the question. Considerable interest has been aroused in England by the activities of Brunner Mond & Co., Ltd., in the production of synthetic ammonia, a large proportion of which is converted into sulfate. The Government has agreed to extend its guarantee for an issue of $2,000,000 of debentures, this money to be invested in increasing the daily capacity of the plant to 150 tons of anhydrous ammonia. The firm has announced its intention of adding funds of its own, so that within a short time the daily output will be 200 tons of anhydrous ammonia or 760 tons of ammonium sulfate. The present capacity is 30 tons of ammonia per day. The plant is reported as running a t full capacity and earning satisfactory profits. The chairman of the Anglo-Chilean Consolidated Nitrate Corporation of Great Britain has recently announced that his company is investing ~1,000,000in equipment for the Guggenheim process, with which 350,000 tons per annum of natural Chilean nitrate will be produced along such scientific lines that Chile expects to meet the problem of competition with synthetic ammonia. The development evidenced in America seems to us ample
justification for the maintenance of the Fixed Nitrogen Research Laboratory, where research necessary to what has been accomplished has gone forward under government auspices with benefits to the people as a whole which could not be expected under any other plan. We have previously called attention to the utility of such a nucleus, not only in developing new catalysts and establishing new principles, but in training men who can render industry invaluable service. It is noteworthy that development continues where conditions are favorable to market the finished product, anhydrous ammonia, or where hydrogen of proper purity can be made available a t attractive figures. Some of the plants are to use waste hydrogen from other processes. This adds further proof that hydrogen has become the key to the situation and that power has fallen to second place. Indeed, with the development of a number of contact processes involving hydrogen, it would seem that the perfection of new methods for producing this gas of high purity a t low cost offers the research man of today the greatest reward.
Methanol Developments H E significant thing in the synthesis of methanol is not so much whether production will be undertaken in,the United States in the near future, nor even the price a t which foreign producers demonstrate their ability to send this ,chemical to us. It is rather the patent situation that is causing gravest concern. Elsewhere in THISJOURNAL we print a statement by the Badische Anilin und Soda Fabrik, and a reply by M. Patart, setting forth the facts and circumstances to justify the claim that in his laboratory the first synthetic methanol by catalytic processes was made. We assume that eventually some one versed in patent law, if not indeed the courts themselves, may have to decide this controversy. The statements may be interpreted as you will, but to our minds it seems clear that to France belongs the priority. From Patart’s point of view it is unfortunate that he did not make patent applications in the principal countries of the world. As it is, since those who first apply for a patent in some countries are granted the monopoly quite without regard to whether they were the originators, the Germans may be given a firm grip on the new situation. Information reaches us that the present production of synthetic methanol in Germany is calculated a t about 1000 tons monthly, and that the Oppau plant is to go on a commercial production basis. By autumn it is expected that production will reach 2000 tons monthly, making an estimated total for 1925 of 15,000 tons. Of this, a t least onethird will be used by the I. G. and, thanks to the reduced cost of this raw material, it would give them an advantage in the cost of producing methyl dyestuffs. It is claimed that the production costs are now about 13 per cent of the cost of methanol by the wood distillation process. Indeed, it is stated that a t one plant the cost has been reduced to 3 cents per kilogram. In some quarters the full significance of the synthesis of methanol and petroleum-like bodies from carbon monoxide and hydrogen has not been realized. At a meeting of the leaders of German chemical industry soon after the close of hostilities, the question of returning to world power was
August, 1925
INDUSTRIAL A N D ENGINEERING CHE,VISTRY
naturally discussed, and the consensus of opinion was that through chemistry there was a real opportunity to regain lost positions. If a firm grip can be established through the synthesis under discussion, it seems probable that in the not distant future the world may be compelled to pay the indemnity and to rehabilitate commercial Germany. Liquid fuels and a number of other products capable of similar synthesis still constitute dominant factors in international relations.
Buying a Mortgage HOSE who are accustomed to investing their surplus in mortgages, or trusts as they are sometimes called, are careful to inquire which trust it is, whether first, second, third, etc. Those who are inclined to invest in the securities of private German concerns are investing in mortgages and would do well to be sure of the order or priority they may enjoy in participating in such payments as the industry may be able to make. The uncertainties of loans t o German industries, particularly long-term loans, fall into two general classes-those involved in peace treaty obligations and payment under the Dawes Plan, and others which depend upon domestic factors, somr of which have to do with treaty obligations and reparations and some of n-hich are rendered highly complex by peculiar local conditions. Under the peace treaty and the Dawes Plan w r y considerable sums must be paid annually, either in goods or in foreign exchange. There is always the chance that the payments required under the Dawes Plan may not he made in full and that if defaults occur the international political situation may again become strained, with all that that means in unfortunate reactions upon German currency and the economic life of the country upon which continued payments depend. If not declared in default, some allied government might attempt or threaten to revert to the separate action policy such as brought about the Ruhr Occupation, and this again might interrupt the operation of the Dawes Plan, render basic economic conditions uncertain, and imperil the new currency and the investments of foreign shareholders, bondholders, and other creditors, as mas done during the period of mark depreciation. The fact that interest on loans abroad must be paid in foreign exchange or goods is important. A concern might well be able to pay its interest in marks but unable to buy sufficient dollars to meet the service requirements of loans made in America, and American investors are interested in dollar payment or pound sterling payments and not in mark payments. Short-term loans can doubtless be paid in dollars, since for a few years a t least there is sure to be a considerable investment of foreign capital in German industries; but the availability of sufficient foreign exchange to meet demands four or five years hence is quite another matter. The extent to which new capital is being used for lother than productive purposes is also of moment, and American investors should be sure that any loans in which they participate are for the purpose of providing no more than the absolute minimum required for a gradual return to full production and for the increase of export which is essential if foreign obligations are to be met. The extent to which this growth of export trade may adversely affect American industrial conditions becomes another point for consideration. The question of future taxation of industry in Germany is also important. It seeins clear that taxes must be raised and quite probable that these increased sums must be secured by taxing Industry, products classed as semi-luxury, and even by the adoption of fiscal measures of questionable soundness. Branch concerns may even be taxed on the basis of earnings
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of the parent corporations in other lands, and the question of revaluation of old obligations is still unsettled. Bt the present time it is doubtful whether any German corporation can definitely know upon what basis its outstanding liabilities are to be revalued on the rentenmark basis. Even the new gold balance sheets are a further factor of uncertainty, for the l a w requiring recapitalization on a gold basis are vague and it might almost be said that any company can revalue in accordance with whatever policy its board of directors decides, without much reference to actual assets and liabilities. Further, the depreciated paper mark commercial debts and mortgages have generally been ignored, even in the Dawes Plan, but they are being revived in whole or in part and in the majority of cases will have precedence over the later loans, both as to interest payment and as to security. Recent decisions of the highest German courts on the subject of revaluing German debts emphasize that this constitutes an added danger to investors. Then there are plural Toting shares, a device by which Germany prevents foreign control, even though a majority of the capital is supplied by foreign investors. The extent to which German industries may be gaining in the export trade is also a factor of importance. It would seem, therefore, that out of profits German industrial concerns must first make payments under the Dawes Plan, must help to discharge reparation indebtedness, must provide other taxation for the maintenance of city, state, and national government, and after a time reach in the list payments for the service of foreign loans. It is an interesting economic problem, and if the small investor decides it offers real opportunities, he will need all the precise information he can command.
Economy in Government EDERAL expenditures for the year 1921, exclusive of the amount applied to the reduction of the debt, were $5,115,927,689.30. The first year of budget control we spent $3,372,607,912.84, which was $1,743,000,000 less than had been spent the previous year. Those figures interest all of us as taxpayers in the application of the budget to federal expenditures, a system which has for its purpose the limitation of government expenses to three billion dollars annually. What has been accomplished is t o the credit, not only of the Bureau of the Budget, but of the extensive cooperation of various government departments. It leaves us all with the ardent wish that every state in the Union might follow the example and do as much to reduce their expenses. Economy does not mean a refusal to buy, but merely the exercise of caution and good judgment in the expenditure of money. Surely this principle can be applied to gorernment expenditures, and particularly to national defense. A large part of federal expenses is for pensions, rehabilitation, and hospital maintenance on account of past wars and in the reasonable development of plans for national defense. If further large sums are to be saved, such iteins may be the first to be cut, since the true pacifists and thobe who cloak their real motives with pacifism have not hesitated to play upon economy and urge further reduction in the Army and S a v y . Chemical warfare is the most humane, the most effective, and the least expensive method of national defense. Whether the present situation may therefore serve to strengthen chemical warfare or, because of J l r . Burton’s political gesture a t Geneva, to embarrass the service still further, remains to be seen. We are interested in the proportion of the three billions annual expenditure devoted to constructive work. We all know the penny mise, pound foolish proverb and should see to
