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News of the nation's activity in marshaling its resources to meet the international emergency
C h l o r i n e , A m m o n i a , a n d Synthetic Fibers R a n k in Chemical Write-Off A w a r d s
T h e first jump in the certificate of necessity program has b e e n taken, the moratorium is on, and the time has come to talk of t h e program's effect on the chemical industry. All told, Defense Production Administration h a s issued 3552 certificates (including the 224 that have squeaked through since Aug. 18) for proposed investments worth more than $9 billion. Of this figure, 67.9% will b e allowed for rapid amortization. These figures have seemed staggering to some parties, b u t they are just a fraction of the 13,900 requests which h a v e come to DPA for rapid write-offs worth $23.9 billion. Producers of basic materials have received priority attention and more than $5 billion have been proposed for the production of these items. Iron and steel production rates the highest rapid write-off award in this group with its more than $2 billion worth of certificates of which 71.1% can be written off in five years. Chemicals are in second place, as far as investment total is concerned—more than $731 million. However, this amount is allowed only a 55.3% rapid write-off. Percentage-wise, chemicals are 14th in this group of 16 basic materials. This places chemicals only above textiles and lumber. More drastically, in DPA's listing of 28 categories t o which certificates have been issued, chemicals rank 25th in t h e tax amortization percentage. Apparently DPA feels that most of the expansion that the chemical industry is undertaking will h a v e almost as great peacetime use as it does in a time of emergency. Weekly listings w e r e given in these pages as the information was released b y DPA. T h e following breakdown shows how various chemical products have fared so far in the rapid write-off program: Chlorine. This chemical walks away with the certificate honors as far as bulk and dollar value are concerned. A total of 39 certificates was issued for more than $226 million, but only 50% was allowed for rapid depreciation. Dow Chemical Co. received the biggest award—worth $53 million in addition to $8 million the company plans to spend for hydrochloric acid. Allied Chemical and Dye Corp. got the second biggest award for $ 3 1 million. Ammonia. Sixteen certificates were a w a r d e d for a sum of more than $147 million and again, with a few exceptions, the percentage allowed was only 50%. Phillips Chemical Co. received the highest award, worth more t h a n $38 million. It was followed by the Lion Oil Co. which was allowed a certificate for $30 million. Sulfur. A total of $40 million has been given over to 22 sulfur certificates. Generally, the percentage allowed runs to 80%. Allied Chemical and Dye Corp. received certificates for $11 million and Garfield Chemical & Mfg. Co. for $6 million. Synthetic Fibers. More than $139 million will go into synthetic fibers. Chemstrand Corp. is responsible for a certificate worth $88 million for nylon and one for $25 million for staple synthetic fiber. Monsanto Chemical Co. h a s also received a certificate for $25 million for acrylonitrile. Cellulose. A total of $24 million worth of expanded facilities is planned for cellulose. Of this amount Olin Industries, V O L U M E
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Inc., holds a certificate for $17 million, and Rayonier, Inc., holds four certificates for $6 million. Antibiotics. T h e w o n d e r drugs received m o r e than $52 million for expansion facilities for an average of 65% rapid write-off. American Cyanamid Co. got the highest award for $18 million. Chas. Pfizer & C o . came in second with certificates for $ 1 0 million. Blood Plasma. M o r e than $3 million w e n t to blood plasma, with Cutter Laboratories getting $1.1 million. A certificate for a little m o r e than $1 million also w e n t to Commercial Solvents Corp. for the production of Dextran. Hormones. A certificate for adrenocorticotropic hormone for $11 million was given to Armour & Co. and one for $7 million for cortisone w a s awarded to Merck & Co., Inc. Citric and Oxalic Acid. Certificates were given for $2.5 million to Miles Laboratories, Inc., and $2.3 million to Chas. Pfizer & C o . Oxygen. More than $19 million will go into expanded facilities. Union Carbide & C a r b o n Corp. received awards worth $12 million, and Air Reduction Co., Inc., for more than $6 million. Other certificates were considerably smaller. Carbon Blacks. A 60% amortization rate was allowed on a total of more than $19 million. Phillips Chemical Co. took the top award for $4 million. Phosphates. Two awards were given: one to International Minerals and Chemicals for $6 million and one to Pittsburgh Coke and Chemical Co. for $450,000. Phosphorus. Three companies received more than $ 2 5 million for phosphorus expansion. Food Machinery a n d Chemical Corp. and Victor Chemical Works each received awards for $9 million, and Monsanto Chemical Co. for $7 million. Twenty-three certificates were issued for r u b b e r expansion for a total of $20 million, and $68.2 is allowed for rapid amortization. More than $7 million of this figure went for reclaiming rubber. Gasoline, fuel oils, and lubricants were given 136 certificates for $621 million, of which 75.5% can he amortized in five years. Benzene and toluene accounted for $82 million of this figure. A c i d - G r a d e Fluorspar Boost P l a n n e d
NPA officials h a v e strongly urged producers of acid-grade fluorspar to increase production to meet aluminum alloy expansion. T h e producers have said that a directive may be necessary to provide the additional tonnage n e e d e d . They also claimed t h a t n e w fluorspar processing plants will h a v e to b e built to meet the increased requirements and t h a t this may take a b o u t eight months. Fluorspar is used in t h e production of steel, ceramics, and hydrofluoric acid. I n acid form it is used chiefly in aluminum and magnesium reduction. B e n z e n e H e x a c h l o r i d e Production t o M e e t D e m a n d
Enough benzene hexachloride will b e produced next year to meet expected d e m a n d , NPA has said. This figure runs about 125 million pounds, an increase of 434 million pounds over last year's figures. Production started zooming during the first six m o n t h s of this year when o u t p u t for that
1951
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time surpassed t h e total of last year's production: 80 million in six months as against 72 million pounds for all of 1950. Benzene hexachloride is an insecticide used principally in spraying and dusting cotton crops. Industry has asked NPA to consider its requests for materials needed to con vert some of its facilities to production of the chemical with a higher active ingredient content and a lower inert ingredient content. T h e inert material in the insecticide tends to give the soil a toxic effect. Edible root crops grown on this soil are i n danger of absorbing odors and off-flavors. As is t h e case witii many chemicals, the industry is having difficulty finding drums and other containers for shipping benzene hexachloride. NPA has been advocating re-use of drums, but this is a difficult proposition where agricultural chemicals are concerned because it is hard to get the drums returned and, in some cases, there is danger of contamina tion in re-use of the drums. N e w Chlorine R u l i n g in the O f f i n g
Chlorine industry representatives have been advised that the Army Chemical Corps is increasing its demands for chlorine and that new rulings will b e necessary to assure full supply for the military. NPA has suggested t h e following means to meet that de mand. It could be done b y raising the percentage of D O rated orders for chlorine which must be placed and scheduled by producers according to the provisions of M-31. Last January the order was passed to provide for equitable distribution of chlorine and for the protection of public health. In addition, Chemical Corps orders could be distributed to t h e industry on the basis of whatever marketable chlorine was available. Certificates of necessity have encouraged facility ex pansions within the industry, and an estimated 600 addi tional tons of chlorine a day are expected by January. The tank car shortage is also plaguing the industry and NPA has said that it will not allow any construction of tank cars between November and next March because of t h e steel shortage. This i n t h e face of increased chlorine produc tion. In order to solve this somewhat, NPA is considering an order which would permit producers to exchange customers and thus eliminate a s much cross hauling as possible. Indus try representatives approve this idea.
43%; 10.3% is given over to packaging chemicals a n d frozen foods; 1.3% to closures for chemicals a n d pharmaceuticals; 25.4% t o uses other than packaging; and 20% to the free mar ket. Sulfur O u t l o o k Turning f r o m Black to G r a y
Sulfur production is still not meeting t h e pace set by demand, b u t the Bureau of Mines reports that prospects for overcoming the shortage within the next few years appear favorable. The m u c h publicized new discovery reported b y the Freeport Sudphur Co. is a big factor in throwing a happy lining around the gloom that invariably appears a t the mention of sulfur shortages. This deposit at the Garden Island Bay dome i n t h e Mississippi Delta is expected t o produce about 500,000 long tons annually before the end of 1953. Three other new domes, one of which is already i n operation, will also help relieve the tension. In addition, the Bureau of Mines points happily to expanded sulfur production from petroleum refinery a n d natural gases recently sponsored by the Petroleum Administration for Defense, and t o t h e in creased output from smelter gases and pyrites, a n d to ex panded production in foreign countries. However, there's always the dampener—production from three of t h e domes now operating is expected to decline in the next f e w years and some of the n e w projects may take as much a s two years to swing into production. And t h e final bugaboo—requirements are expected t o continue to in crease. In a recent survey put out by the Bureau of Mines (see C&EN, Sept. 3, page 3 6 3 4 ) , sulfur was listed as one of t h e nine mineral commodities which this country produces in greater quantity than is consumed domestically. However, substantial exports of sulfur are required for t h e essential needs of foreign countries and consquently some domestic consuming industries have not been able to obtain the quan tities n e e d e d to maintain their peak production. Appointments . . .
Frederick Winant has replaced E d w i n T. Gibson as Deputy Administrator of t h e Defense Production Adminisstration. M r . Gibson has returned to his post as executive vice president of the General Foods Corp. Plastic-Type N y l o n Control Eased Mr. Winant has been in government service since 1941 Purchasers of plastic-type nylon are no longer required when h e served with the State Department. He Tias worked to seek NPA authorization to purchase the material. This with t h e Military Government in Berlin a n d with die Na softening of the regulation became effective when N P A re tional Security Resources Board. H e w a s most recently di cently transferred t h e product from an Appendix A to an rector of DPA's Foreign Coordination Division. Leroy C . Stewart has been named chief of NPA's Facili Appendix Β allocation classification. T h e producer must ties Branch in the Chemical Division. Mr. Stewart was still list his proposed deliveries with the agency and file for former manager of the Atlanta, Ga., sales office of D o w authorization to carry through. This order does not concern textile-type nylon, which is Chemical C o . I n his new position, h e will be responsible used in hose a n d other wearing apparel. T h e plastic type is for handling problems involving priorities assistance for used in paint brushes, coil forms, insulators, and dome light equipment and containers, review of Form 4C applications for controlled materials needed in expansion programs, and lenses. nonferrous metals used by the industry. Increased P o l y e t h y l e n e Supply to Be Redistributed
Mr. Stewart is a member of the A M E R I C A N SOCIETY.
Larger quantities of polyethylene are expected in the next three months a n d by January 1952 production should reach a 40% level above the July 1951 figure, according to a recent NPA statement. At present, the demand is two thirds greater than t h e supply. Industry representatives have asked that this increased amount b e distributed to existing essential civilian programs that require a greater supply and that t h e balance be placed on the free market. Current allocations give the military
Christian V. Holland has been appointed deputy chief of ΝPA's Drugs, Solvents, and Detergents Branch in the Chemical Division. H e succeeds Norman F . Storm who has returned t o Ciba Pharmaceutical Products, Inc., a s executive vice president. Dr. Holland is on leave as coordinator of manufacturing for Sterling Drug, Inc. H e was previously with Merck &
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Co., Inc. H e is a member of the A M E R I C A N C H E M I C A L S O CIETY. CHEMICAL
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