June, 1920
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I-VD CSTRI.41, A-1-D E ~ V G I S E E R I S GCHE.IfISTR Y
Futility in Tariffs
T IS doubtful whether any tariff bill has produced more adverse comment than H.R. 2667, which is non. before the
Congress. The bill does not deserve condemnation in every respect, even though it contains some obviously fut,ile provisions. An outstanding example of the latter is the tariff on molasses and sugar si:rups, covered in paragraph 502. The original bill I2oldly discriminated between inedible molasses to be used for purposes other t'han the production of alcohol and the same kind of molasses imported for alcohol manufacture. Molasses imported for any purpose other than for human consumption or for distilling would carry a tariff equivalent to one-sixth of one cent per gallon testing 48 per cent total sugars, but if it is to be used for the product'ion of industrial alcohol, the duty becomes equivalent to two cents per gallon. Obviously this is an effort to force the industry to subst,itute corn for molasses in distilling. and yet minimize the increased cost t,o the farmers who buy stock feeds containing the same kind of molasses. Such a provision could bring good to no one. It would force the feed manufacturers to install a series of bonded tanks and to assist in maintaining a staff of inspectors t o prevent the diversion of blackstrap, supposedly imported for stock feed, to the production of industrial alcohol. I t would not force the distillers t o use corn, but it n-ould considerably advance the cost of alcohol, thereby adding to the difficulty of holding t,he domestic market for goods requiring alcohol in their manufacture and making their export impossible. Those who would urge the adoption of such a tariff seem t o be oblivious of certain well-known facts. Most of the industrial alcohol is nom produced in plants near enough the seaboard to benefit from water transportation of their raw material. It would (cost upwards of ten million dollars to convert' the seaboard plants for the use of corn. and t,he item of freight, on the grain would remain. Freight is such a considerahle factor that, if forced t,o use corn, these plants would need t'o he moved. 11ore than forty millions of dollars would be involved in moving them into the interior, and under present conditions the business is not sufficientl~~ attractive to warrant such expenditure. Molasses at, say, nine and onehalf cents a gallon, plus the proposed duty of two cent,s: would still give a raw material more att,ractive than corn, remembering that 2 . i gallons of molasses produce a gallon of alcohol and that one bushel of corn yields 2.5 gallons. Apply these factors t,o t,he current price of corn, plus freight to the plant, arid the answer is obrious. S o t only is there the constant t'hreat of synthetic ethanol, but' we predict that any congressional action result,ing in an artificial increase in the cost of a basic ran- material will so advance the price of many ultimate products as to bring widespread dissatisfaction. Alcohol enters into so many items of merchandise purchased by all individuals and industries t'hat the adT-erse effect will be universal, and much more than offset the supposed gain for a single group. As me go to press the bill as revised has been passed b y the House. I n it t'he offending discrimination has been deleted and all black strap classed together. The seriousness of the sit,uation is reflected .in the record of this measure. A proposal to raise the duty to eight cents per gallon, equivalent 0 1 1 alcohol to twenty-one and six-tent,hs cents per gallon in t'he cost, of raw materials alone, was actually voted 132 t o 130, but fortunately this was reversed in support of the committ,ee recomniendatiori 136 to 116. This illustrates how important industries may become political pawns. Even now finaI action cannot be forecast since the whole subject may be further reviewed in the Senate. Anot'her example of unwise tariff proposals is found in the sect'ion dealing with vegetable oils. Of the vegetable oil im-
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ported, approximately 60 per cent comes from the Philippine Islands, leaving some 280,000,000 pounds to enter from other sources. As against this we export 800,000,000 pounds of lard. So large a proportion of the imported vegetable oil goes into soaps and other products, for the manufacture of which we do not produce suitable oils, that one has difficulty in finding sound reasons for the proposed duties. If industry would see the fair thing for all concerned accomplished in tariff revision, it should raise its voice not only before congressional committees but in the hearing of the folks back home, most of whom have no appreciation of just how some of the proposals will affect their own economy.
The Exposition HE Twelfth Exposition of Chemical Industries closed on May 11, and the thirteenth will open May 4, 1931. It was a splendid exposition and the consensus of opinion is that this year's chemical show was better than its predecessorq. The exhibits were more varied, with better display, and altogether more interesting. The exposition management, which placed its facilities a t the service of all exhibitors, deserves to be complimented. From the exhibitors' point of view the attendance was satisfactory and included a smaller percentage of those merely seeking diversion than experienred heretofore. Some would have preferred autumn for in May many engineers are in the field erecting new equipment, but since the decision was reached to hold this exposition biennially. the more desirable fall dates have naturally been given to those exhibits which will use them annually. S o t the exposition, but the manufacturers of chemical products who still absent themselves, deserve such criticism as may be forthcoming. Once more many American chemical manufacturers neglected the great possibilities and the advantages of direct publicity in advertising a t home and abroad. Khile there were a few more chemical products than a t the eleventh exposition, yet they comprised a mere 5 per cent of the exhibits and left some with the feeling that, after all, it is more an exposition of chemical equipment than of chemical industries and their products. Chemical manufacturers should realize the importance today, just as much as when the Pxposition n-as begun, of showing all and sundry the ability of this country to produce its chemical needs. An occasion of this sort is one upon which the traditional best foot should be put forward, and when, instead, there is inadequate representation of what is being made in the chemical industries, the natural inference is that little is being done or that the makers are ashamed of what they produce. We know the latter is not the case. I n the thirteenth exposition chemical products should occupy a t least half the exposition space. On entering the exposition one saw a letter from President Hoover expressing regret at his inability to attend, but asking that this message be conveyed on his behalf: I sympathize so strongly with the purpose of such expositions that I wish you would kindly convey the following message from me on that occasion. "The chemical industries are among the foremost of those that ally themselves continuously with workers in pure science and thereby quickly transform discoveries of creative research into practical products for human use. The fact that your exposition equally interests chemists, engineers, and manufacturers symbolizes this close bond, so desirable in all industry. I wish you all success.'' The exposition has been a wccess, but it cannot perform its full service until, in addition t o those who have so loyally supported it, there is added an adequate number of the makers of chemical products. With two years to plan, let US do our utmost to see this defect remedied in 1931.
