Aug.9 1919
T H E J O U R N A L OF I N D U S T R I A L A N D E R G € N E E R I N G C H E M I S T R Y
F I G . 13-PHYSICAL
TESTING DEPARTMENT
Before sending a chemist out into the plant, I try to impress upon him the fact that he must be humble, and that i t is far better t o adopt the attitude that he knows nothing about the subject to be investigated than that he knows it all. I n this way he will gain the confidence of the workmen and in many cases often be able to obtain a valuable practical suggestion. If this paper has succeeded in starting a train of thought showing the possibilities open to the brass chemist, and the urgent need of cooperation between the chemist and the management and in turn the cooperation between the chemist and the superintendent, foremen, and workmen throughout the plant, it will have served its purpose. SCOVILL MANUFACTURING COMPANY WATERBURY, CONNECTICUT
GERMANY’S INDUSTRIAL POSITION By RICHARDD. ZUCKER
Received June 20, 1919
This paper covers in a broad way Germany’s entire industrial position, from before the war to the present time, and also includes a brief consideration of the future. The sources of the information are several, the principal ones being my personal observations of mail censorship reports, of Germany’s industrial position, of which I prepared daily summaries for a period of several months, and also my personal observations in various parts of the occupied territory. I have hesitated in making any fast, prophetic statements regarding the future, and have confined myself principally to the various possibilities. For the purpose of comparison, certain facts must be given in regard to Germany’s former industrial position. All industries being closely related in many ways, what applies to one directly will usually have its effect on another. Therefore, although the facts set forth here deal partly with the chemical industry, they also apply to the entire industrial field, and cover the situation in a general way. The pre-war supremacy of Germany along industrial and commercial lines is too well known to US to necessitate any details being mentioned regarding it. And the fact that, in a large degree, this war was waged with a view to increasing their com-
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mercial connections and extending their control over a greater amount of territory, cannot be denied. It has, however, resulted in their great industries being brought to a practical standstill. This, indirectly the result of the war, was directly brought about by three main causes : ( I ) The ever-increasing shortage of raw materials, (2) the great difficulties offered to all lines of transportation, ( 3 ) labor troubles. All three of these are very closely related, in so much as the existence of one is capable and in many instances did produce both of the others. For example, one of the great shortages, which has caused so many plants to shut down, is that of coal. Although there are immense deposits of coal in the Ruhr district, Saar Valley, and Silesia, nevertheless, labor troubles, started by Spartacists, Bolshevists, etc., caused transportation and production to be stopped, which, in turn, closed the supply of fuel and what little raw material there was available to the various industries. Germany’s dependence upon other countries for so much of her raw materials has placed her in a precarious position. She has no important copper, tin, or nickel deposits. Whereas, before the war she lead the world in the production of aluminum, now the United States alone produces over one-half. We, and Canada, have a natural advantage over her in our large deposits .of bauxite. Previously, Germany imported vast quantities of it from the Province district in France. I t is doubtful if she will be able to do this in the future, because agitation is already on foot in France for the government to make stricter export laws on this material. She can obtain lead in fairly large quantities from galena deposits in the Harz mountains, Mechernich and Call in the Eifel district. Zinc is very plentiful in the Upper Harz and in Upper Silesia and Aachen. Formerly Sweden exported about three million tons of steel every year to Germany. Naturally this was greatly diminished during the war. Now even the production of Germany’s own mines amounts to very little.’ Cotton, rubber, gums, essential and vegetable oils must also he imported in large quantities. Flax is cultivated to some extent in Germany, but a t the present time only about 5 to 6 per cent of the mills of the linen industry are in operation. This year’s crop of flax will amount to practically nothing. Seed is difficult to obtain and the farmers are not planting much because they can see no method of disposal, and in many cases no labor can be had. I read in one trade journal that, on account of the great oversupply of copper, cotton, rubber, textiles, etc., in the United States, we would be compelled to export them to Germany in order to dispose of them, They evidently expect the exports to commence with the lifting of the blockade, and also look for a big reduction in prices. They particularly mention that they want to import the raw materials and not the manufactured goods. This is so that their idle plants may once again be set in operation and employment given to those out of work. Transportation difficulties arose from many different sources. The blockade between the occupied and the unoccupied territories, enforced by the Allied Armies of Occupation, played a big part, especially during the first months of occupation, when it was extremely difficult to obtain permits to export and import necessities, etc., from the left Rhine territory to unoccupied Germany, and vice versa. Later on the restrictions on certain raw materials and special classes of goods were made lighter, and it was possible for some plants to keep in operation through these means. For example, a t one time a large quantity of raw beet sugar was permitted to be sent from the unoccupied zone to the left Rhine territory, where most of the refineries are located. It was on the condition that a certain large per cent should be kept for distribution in the occupied country. Another factor in the transportation trouble was that of the diminu1 Detait regarding this will be found in a contribution from Corporal Zucker concerning German industries in THISJOURNAL, 11 (1919), 487.
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tion in the amounts of rolling stock. Owing to the conditions of the armistice, 5000 locomotives and 150,000 cars had to be turned over to the allied authorities; and the shortage produced thereby added greatly to the already existent difficulties. It is claimed, however, that after the industrial plants start up again, the shortage of locomotives could be alleviated in as short a time as three months by means of spare parts on hand, outstanding contracts, etc. ’This seems to me to be a very optimistic statement. The spread of Bolshevism and Spartacism caused considerable turmoil among the laboring classes. Naturally the leaders of these new parties sought the districts where labor was most concentrated, and therefore the mining regions around the Ruhr River, Upper and Lower Silesia, and other industrial centers suffered the most, thereby further paralyzing the arteries of commerce. The demands for higher wages, better hours and conditions were in some cases just; but the harm done to ind h t r y alone by their injudicious methods certainly adds the final touch to their discredit.. For many months, in Berlin alone, there have been well over zoo,ooo unemployed. The government itself is greatly to blame for this, because, by law, they aye compelled to pay those out of work 8 marks per day, f believe; and when a man is unable to earn much more than that by working, there is certainly little inducement to make him * hunt a job, if he can get his living free and by thieving or plundering. A readjustment of these unfavorable conditions can be partially obtained by Suppressing the Bolshevist menace by the fooperation-of all, and with the-course of time. It can be safely Said that the majority of the workers are not in favor of the radical methods usid, but where intimidated and compelled to adopt them. Many movements have been on foot for the past months to socialize the different industries. The German government is making investigations concerning the benefits of it; and some branches of industry, I believe, have already decided to adopt the socialistic administration. Others are putting up a violent opposition to it, so the outcome of it will be interesting to watch. There has been existent in Germany for a long time a type of organization which, until comparatively recently, we have not had to any extent in our own country. Every little branch of industry has its so-called “Verein” or “Verband,” which seems to be made up more from the manufacturers themselves than from the laboring classes. They are not similar to our trade unions, but are more along the order of our “chambers of commerce.” They aim mainly to standardize commerce regulations, determine prices, establish coijperation with the employees, protest against unfair legislation, and to look out generally for the particular interests OF their own branches of industry. They are in a large degree responsible for Germany’s previous commercial success. Since the armistice was signed they have also played an important part in endeavoring to keep industry going and in making plans for the future. It might be mentioned here that another feature that played a part in Germany’s former success was that of the elimination of “cross shipping,” i. e., the shipping of some class of goods from one part of the country to another distant part when it is possible to obtain the same in close proximity. This avoids unnecessary congestion of freight and affords cheaper prices, quicker delivery, etc. Of course, Germany being oE much smaller area than the United States, can more easily practice such a principal; nevertheless, I believe that we should make attempts to eliminate this drawback as much as possible in the United States. At the present time the immense syndicates and their vast plants are shut down exactly as those of smaller capacity are. Probably among the best generally known is the famous “Kali” syndicate, which controls the potash deposits of the Stassfurt region. During the first quarter of 1919,on account of coal shortage, transportation troubles, and labor difficulties, they
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were able to deliver only 60,000 tons compared to 1g0,ooo tons in the same period of 1918. The value of deliveries decreased from 77 million marks to 35 million marks. Now that the United States has become practically independent of large imports of potash, whereas in 1 9 1 3 it is said that she imported about one million tons of potash salts from Germany, it can be seen that this important branch of Germany’s export trade is doomed to suffer. In like manner, through the industrial independence which we have obtained in other lines during the war, especially in medical preparations, dyestuffs, optical glassware, etc., her position is greatly jeopardized. One plant of the Hochst Farbewerke in French-occupied territory is now in operation under French supervision. Medicinal products are produced, the stores and production are first used for the purposes of the Allies, and any remainder can be shipped by special permit into the unoccupied territory. Along the Rhine, in the American Zone, practically the only factories in operation are those manufacturing “Schwemmstein,” a sort of porous concrete building brick made from gravel and clay found in the immediate vicinity. Being on the river, a coal supply is fairly easily obtainable. These plants have been making shipments with fair regularity, especially to Holland, which is also accessible by the water route. It is interesting to note here that after the American Army of Occupation had been here some time the numbers of unemployed among the Germans in the occupied zone decreased continually until a t the present time it is very nearly nothing. I n the hills along the Lahn River, which terminates in Frenchoccupied territory just below the American Zone, there are- a few silver, lead, and iron mines. These have been in operation to some extent, but with no regularity and with only a small production. The great Krupp works at Essen, while having made plans to reestablish themselves on a peace basis, are at the present practically idle. It is interesting to note that the Krupp people claim that before the war the proportion of finished war materials (artillery, armor plate, shell cascs, etc.) to that of peace materials which they manufactured, was only I to 20. It is not within the scope of this article to argue along these lines, but I have definite proof that the Krupp people cause false statistics to be given to the public and reserve the correct ones for their own internal administration. The addition that they will soon put onto their 1912 Jubilee Book concerning their experiences, production, etc., during the war will not be the same one that they will distribute to their own 0%cials, and which will contain the true facts, figures, their great errors, etc. The majority of the plants are in condition to start manufacturing again on short notice if the factors that closed them down are removed, that is, with a regular coal supply, which would of course necessitate open lines of transportation, and the labor trouble quieted, Germany will be able to manufacture on a scale in proportion to the supply of her own raw products and the disposal of her goods. Here her total dependence on other countries for such products as rubber, copper, etc., comes into effect. She is also largely dependent upon other countries for the disposal of much of her manufactured goods, and will no doubt make every effort to introduce her wares to the world once again, whether it be by open methods or unscrupulous ones, depending upon whether the former are successful or not. Importers are already sending out smooth business letters, seeking to renew connections and dismiss the “unfortunate occurrences,” as they call it, of the past four years. English firms have their representatives in a portion of the occupied territory, where they are aiming to establish business connections. I understand also that a large American exchange company has offices in Berlin, and will handle imports oE raw materials and exports of finished products to the States. It is doubtful if the antipathy against Germany will remain strong c
AW.9 1919
T H E J O U R N A L OF I i Y D U S T R I A L A N D ENGINEERING C H E M I S T R Y
with many in the commercial world, especially if there is anything to be gained by overlooking it. The length of time required before Germany can even approach her previous standing is dependent upon many things. If the amount of indemnity that she has to pay should prove to be excessively large, the country would be placed in a condition of economic slavery for many years. If a commercial boycott of any extent should be placed upon her, this will certainly be a tremendous restraint upon her recovery. There is little doubt, however, but what these people will exhaust every means and source to reestablish themselves as rapidly as possible. Being naturally industrious and making application of science as they have heretofore, they will doubtless endeavor to regain the respect of the world again by new and possibly surprising means, especially if they should be fortunate enough to have the proper kind of leaders to guide them. Plans for the future are already being considered in detail. If attempts to place their goods in the large countries of the world cannot be made directly, they will resort to agencies which they have established in the so-called neutral countries, such as Holland, Switzerland, Sweden, Norway, Denmark, etc. Many firms already have their representatives in these countries and are making preparations for importing and exporting as soon a3 the blockade restrictions are lifted. One thing which Germany fears in a commercial way is the competition of Japan. Since 1913,Japan’s exports to Australia alone increased eightfold. There is a bitter feeling against them on account of the strides that Japan has taken in the export of toys,fancy wares, etc., to the United States, South America, Australia, and Europe. The fact that Germany, being closely engaged in warfare, gave Japan an excellent opportunity to expand her business connections, now causes Germany to apply the term “Yellow Peril” to the menace to her toy industries, etc. A fact which must not be lost sight of in the future is the wellknown ease by which a plant manufacturing dyestuffs can be converted, in a very short space of time, into a source for the most powerful explosives that the world knows of. It will be well to watch this formerly highly-developed branch of Germany’s industry and not allow it to reach too extensive proportions. One thing that impresses the foreigner in Germany is the great number of “Ersatz” or substitutes, which their chemists and inventors developed during the war to supply the demands for wares which were impossible to obtain, or could not be had in large enough quantities. The quality of most of them is easily seen by the quickness which the public gives them up when the genuine article once again presents itself. Leather, rubber, fats, cotton, and various foodstuffs were the principal materials for which substitutes were developed. I have seen large 3*/2 ton German trucks with the tires of solid synthetic rubber, and it seemed like a fair imitation, being of the same appearance but much harder than genuine solid rubber. However, the cost of production is said to be extremely high anti no doubt it is, because the majority of the large trucks that one sees have nothing but the solid steel tires. The leather substitutes, which many times would deceive one, even at close range, have absolutely no durability. They are usually made from a vegetable fiber, and are practically nothing more than a form of paper and stand up as such under wet conditions. Fats proved a difficult class of goods for which to find an “Ersatz ” We have occasionally heard gruesome tales of the extraction of fats, etc., from the bodies of the dead; but they have never been definitely proved as far as I can find out, and certainly are difficult to accept without a substantial foundation. Bdible fats were one material for which no new substitute could be found, othertthan the various forms of “margarine”
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and hydrogenated fats. Oils and fats for the soap and glycerin industries were mainly of animal origin, recovered from garbage and refuse; and small quantities were also obtained from fruit kernels and small nuts by pressing them. Following are the analyses of several typical wartime soaps as given by the Oil and Color Trade Journal of London. These show how great the scarcity of fats was, and how all glycerin was recovered first and the fatty acids alone used in the manuFacture of the soap. InsoluFatty ble’ Acids NazO Soap Color Per cent Per cent Per cent Per cent Gray 75.30 14.77 1.62 23.5 Brown 76.08 9.54 Toilet Bright Gray 9i:44 5.30 0.55 8.5 Bright Gray 92.70 5.40 0.72 8.5 1 The insoluble substance IS clay, which was apparently kneaded in the dissolved soap, cut, pressed, and dried. The analyst found no glycerin and concluded t h a t fatty acids were ’used. These were in a state of decomposition and were free from gum. Weight
MARK Grams K A. Soap 90 Liliput.. . 58 I d e a l . . . . . 76 Eureka 79
. ...... ........
I believe that the process for producing synthetic glycerin from sugar, as was developed in the United States during the war, was also in practice here, but on account of the quantity of sugar being less than that needed to supply the demands for food purposes, it was only used for the most important needs. For certain uses in the pharmaceutical trade, a solution of sodium lactate was used, but I know very little about its success. It is rather hard to believe, but true, that a t the beginning of the second year of the war, when Germany was becoming short on nitrates, the following advertisement appeared in the German newspapers: The women of Germany are commanded to save their chamber lye, as it is very needful to the cause of the Fatherland in the manufacture of niter, one of the ingredients of gunpowder. Wagons, barrels, and tanks will be sent to the residences daily to collect and remove the same. (Signed) vON HINDENBURG Indeed, they must have been in narrow straits to make them adopt such peculiar ideas of resourcefulness as this. Whether it ever amounted to much, I am unable to say. Textiles were in many cases manufactured from the same materials as were the substitutes for leather, producing a coarse material which, upon becoming wet to any degree, became useless. This “paper yarn fabric” was very expensive and in the future will be used only for special purposes. Substitutes for gasoline were widely sought, but nothing of a startling nature was produced. Experiments with acetylene gas from calcium carbide, while successful in some ways, still showed several dangerous drawbacks, among them being its explosive property upon reaching a temperature of around 400’ C. Ethyl alcohol produced somewhat better results, one run of about 5000 miles being made and the motor being in excellent condition at the end of the run. Foodstuffs also were an important necessity to develop. During the war over 600 artificial honey factories were established, which made a fairly good imitation by the inversion of beet sugar with formic acid and the addition of coloring and flavoring substances. Miserable coffee substitutes were made from acorns, horse chestnuts, and carrots. Dehydrated vegetables and potato flour played an important part in the feeding of the nation. Research continued throughout the entire war along extensive lines, both in matters of pure science and the practical applications of it. Many important medical discoveries were made and new medical preparations developed. According to a medical census taken some months ago, there is still plenty of salvarsan in Germany, and, incidentally, the conditions in the country a t the present time certainly demand large quantities of it. Agar-agar and iodine were products for which there was great need, and for which importation had previously been
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resorted to. The Chemiker-Zeitung for March rg publishes the results of a n investigation for producing. these products and also potassium salts from certain kinds of seaweed found off the coast of Heligoland and in the North Sea. It is extremely doubtful if i t would be of much avail for Germany to foster such an industry as this, especially as she considers in the article the production of potash for the purpose of export to the United States, whereas we already have the same idea working on a commercial scale on our western coast. It is perfectly possible, although perhaps difficult for some to understand, for Germany to rebuild herself and become once more a nation of commercial importance and holding the recognition of the great nations of the world. It will take many years and an entirely different type of leaders from what she formerly had, and at the present time it does not appear as if her new leaders had lost sight of their old ideas of world domination in the future. So far as the United States is concerned, we have been very magnanimous to her on the whole, which is entirely in keeping with the principles for which we fought. If Germany, in her strides for recovery, shows herself worthy, I believe it would still be in accordance with our principles to assist her in certain ways; but if, on the contrary, she should show any intent of pursuing her old designs, forces to prevent it cannot be taken too soon. Present internal indications in Germany certainly indicate that she is anxious ‘ib reestablish her business connections, start up the factories, feed her people and pdt herself on a firm basis. Germany’s future rests wholly with herself and, by watching her carefully, the rest of the world will be able to determine what new means to adopt towards her, judicially, commercially, and if necessary, physically. HEADQUARTERS TROOP, 3RD ARMY A. P. 0.927, GERMANY
PRODUCTION COSTS OF CHKEAN NITRATE By J. MARCO
Received May 24, 1919
As the synthetic processes for the fixation of nitrogen are causing world-wide interest and discussion in regard to the possibility of their competing with the deposits of Chile, it is of interest to ascertain economic conditions which will affect the future of the Chilean nitrate industry. Of these, cost of production is the most important. As Chilean nitrate furnishes approximately 58 per cent of the total fixed nitrogen used in the world and the producers have always had conditions in their favor, many of the factors influencing cost of production to them have been overlooked. It is, therefore, desirable to study the possibilities of lowering this cost of production under commercial competition. It is traditional that the nitrate industry in Chile has not been administered according to principles of scientific management, and the great savings in cost made in other lines of production by the adoption of business economies lead one to believe that savings could also be made in the mining, extraction, and transportation of nitrate. The managers of the nitrate plants in Chile in obtaining statements of the profits and losses in their business have heretofore depended entirely on the annual or semi-annual balance ohtained by the accounting department when the books were closed and an inventory taken. As a result, no one knows the itemized costs of the various details of the business and it is not possible to determine a t any time the advantage or disadvantage which any modification in methods might produce. A system of cost accounting is, therefore, of great importance to the improvement of the industry. The facts given below are not, therefore, the result of accurate statistics from the books of the companies, as the books would not
Vol.
11,
No. 8
give such precise information; they are rather the result of observations made upon the ground, the figures being in accordance with the conclusions arrived a t by many observers. The cost of Chilean nitrate on board ship may be divided into the following items: A-Cost of mining and transportation of the caliche (raw material) from the deposit to the extraction plant. B-Plant costs of manufacture (product, 95 per cent NaN08). C-Cost of transportation from the plant to the ship. D-Administration expenses. We will consider these items in the above order. A-This cost varies from $0.79 to $ 1 . 4 0 per short ton of caliche delivered at the Oficina (extraction plant). The mining of the caliche is practiced in a very primitive manner, most of the time without knowing the quality of the material dug. This makes it impossible to maintain a uniform extraction cost on account of the variation in the quality of the material and the distance to the plant. If profits are to be realized the composition of the mineral taken from the ground should be followed and it may be possible in times of high prices to extract poorer material a t a profit than could normally be done. Furthermore, most of the mining is hand labor and there is, naturally, a broad field for development in the use of mechanical devices. Transportation from the deposits to the plant is also now done by means of wagons drawn by mules, and the cost of production can undoubtedly be lowered by the use of trucks or other mechanical devices. Labor is a t present 7 0 per cent of the expense. A decrease in wages cannot be expected as only first class labor can be used. Such labor now obtained gets from $1 to $3 per day. E-The cost of extraction of one short ton of caliche is now @ . g o to $1.37. The principal factors of costs are labor, 30 per cent; fuel, 6 0 per cent; and technical control, less than I per cent. Technical control and advice have been practically forgotten in the Chilean nitrate industry on account of the control of the nitrate markets which the Chilean industry has heretofore maintained. There is no question but that technical advice and control will lower costs. Some plants, for example, now extract no more than 5 j per cent of the nitrate contained in the material, while others, in exceptional cases, get as high as 72 per cent. There is, however, a change taking place in this respect. Chemists and other technically trained men are being engaged in research which will undoubtedly lead to an increase in the percentage extracted and to a reduction in the amount of fuel used. Indeed, toward the close of 1918, E1 Instituto Tecnico del Kitrato was established in Chile with this object in view. Of the total fuel used, 2 0 per cent is devoted to the production of power and 80 per cent to the production of heat. The installation of the Diesel type of motor in power plants has given good results and many central thermoelectric power plants are being planned to serve a number of Oficinas collectively. Under the present method of heating, 65 per cent of the fuel is not utilized, but it is expected that with the adoption of new models of boilers and evaporators, and new methods of chemical procedure these losses will decrease. Lately a process devised by Manuel Prieto, chemical engineer, has given satisfactory results for extraction, obtaining during the test made an extraction as high as 7 j per cent even with poor raw material. C-The costs of transportation from the Oficinas and placing on board ship are about $18.00 a short ton of commercial nitrate. The export tax paid the Chilean government forms the chief item of this expense or 65 per cent of the total (56 c. a quintal = I O I .6 lbs.). The government has under consideration a more rational principle of applying this export tax, the adoption of which will make it possible to exploit poor fields of ni-
