would be convertible to l 1 / 2 shares of Kewanee common. For the fiscal year ending last September, Harshaw had sales of almost $73 million. Kewanee's 1965 sales totaled about $29 million. One of the reasons for the ease with which Harshaw was able to develop alternate deals to counter the Sun offer may have been the fact that by at least one yardstick—stockprice-earnings ratio—some chemical companies appear good buys for acquisition-bent firms. But over and above this fact, Harshaw's price-earnings position has been somewhat paradoxical. Harshaw's earnings per share have increased every year since 1962; for the nine months ended June 30 they were up llr/c over a year ago, despite a costly strike at two of its largest plants. Four years ago, the company began a vigorous reorganization program, started selling some marginal operations, and undertook some companywide cost-cutting projects. But the company's lagging stock price made it difficult to bargain for acquisitions. Although rising profits and streamlined management failed to arouse widespread investor interest, such considerations were probably behind president Harshaw's statement to stockholders that "if Sun is willing to offer $40 per share for your stock, it must see a value substantially higher than its offer." Thus, with any prospect of growthby-acquisition stymied by its low stock price and faced with the Sun offer, Harshaw put itself on the block and went out to seek the best stock trade it could. Kewanee Oil, Bryn Mawr, Pa., is an independent oil and gas producer with no refining or chemicals operations.
Allied cuts U conversion fee Allied Chemical will reduce its charge for converting uranium concentrates to uranium hexafluoride (UF 6 ) to $1.04 per pound of uranium. The 21 centper-pound reduction will go into effect on UF (; delivered to the Atomic Energy Commission for uranium-235 enrichment under the toll enrichment program, scheduled to begin Jan. 1, 1969. The conversion service will remain on a basis of a 99.57c yield of the uranium content in the concentrate. Commenting on the reduction, Vincent \V. Suellau, president of Allied's General Chemical Division, said that the UF C requirements for future electric power needs now appear greater than previously anticipated, thus allowing Allied to reduce its charge substantially. Nuclear power plant capacity, now about 1820 M w ( e ) , should reach 12,200 M w ( e ) . by 1970 and 94,000 M w ( e ) . by 1980 (C&EN, July 4, page 18). Fuel requirements for the thermal reactors used in power plants are about 1 ton of U 8 O s per megawatt installed, and about 400 pounds of U 3 O s per megawatt per year of operation. Mr. Suellau notes that Allied has and will have enough capacity to handle toll enrichment requirements for any customers, domestic or foreign. Allied, which says it is the only company that makes UF 6 , has converted concentrates to UF G in its Metropolis, 111., plant. Neither this plant nor any of AEC's U F e plants has operated for two years, and the AEC has used "tails" (depleted uranium) in its three diffusion enrichment plants. Allied expects to start up the Metropolis plant early in 1968 to make UF (; for West Germany, Switzerland, and Spain. Under ad hoc barter agreements between the U.S. and the three countries, AEC will enrich uranium from the three countries (rather than from its own supply) in partial payment for the enriched product. The old $1.25 rate will apply to this UF (; production, Allied says. Later in 1968 Allied expects to begin converting privately owned concentrates to UF 0 , which will be enriched by AEC under the toll enrichment program. The new rate will apply to this service.
Hathaway heads Velsicol
Harshaw's Harshaw A share too low 12 C&EN AUG. 8, 1966
Leadership of Velsicol Chemical Corp. has passed to Norman E. Hathaway, 46, who has been elected president and chief executive officer. His predecessor, Joseph Regenstein, Jr., has become chairman of the board of the diversified Chicago, 111.-based firm, which is a wholly owned subsidiary of Chicago
Norman E. Hathaway Diversified career
North Western Railway Co. (C&EN, June 21, 1965, page 17). Chemical engineer Hathaway came to Velsicol early last year as vice president-corporate marketing. His previous career covered two decades in industry and on "loan" to the U.S. Department of Commerce. The present move gives Mr. Hathaway charge of a company with three major divisions in agricultural chemicals, resins, and industrial chemicals. Pretax net income at the time of acquisition by CNW in June of last year was almost $9.7 million. The company's major plants are in Memphis and Chattanooga, Tenn., Galena Park, Tex., and Marshall, 111. In addition, Velsicol owns 5 3 % of Michigan Chemical Corp., a producer of bromine, magnesia, and rare earths in St. Louis, Mich.
Treble damage deductions legal Federal income tax laws are not a device to legislate morality; they merely describe taxes to be applied to net income. They are not a sanction against wrongdoing, nor are they an "essay in morality, designed to encourage virtue and discourage sin." This is how Mortimer Caplin, former head of the Internal Revenue Service, explained to the Senate antitrust subcommittee the reasoning behind a controversial 1RS ruling. Issued in 1964, while Mr. Caplin still headed 1RS, this ruling permits firms to deduct from income as ordinary business expense payments made to satisfy triple damage suits for antitrust violations. The subcommittee is considering S. 2479, a bill introduced by Sen. Philip Hart (D.-Mich.), chairman of
