program is organized for one definite ac complishment, then man for man and dollar for dollar, the specific results of the federal worker and the federal dollar are as pronounced as those of the industrial worker. The contrihut ions of the Northern Re gional Laboratory in making the tremen dous new supply of soybean oil industri ally useful is a good illustration of practical attainment. There are many dollars of profit to be realized from that work now and in the future. On the other hand, the Bureau of Mines' current work on varia tions of the Fischer-Tropsch synthesis has not the immediate prospect of profit that the iron catalyst technique has. The American development of Fischer-Tropsch techniques is a typically magnificent ex ample of our industrial research, inspired quite properly, by the profits to be realized from the gasoline produced. However, the publication of all these FischerTropsch reactions by the Bureau of Mines is undoubtedly necessary to our under standing the full potentialities of the proc ess. Government
Facilities
Available
Many industrialists do not know that government facilities are available for their own development work. It is true that there are restrictions presently ap plying to cooperative researches. Never theless, the Government has many cooper ative programs with industrial groups, such as those in fertilizers, cotton, and wood products. Wherever a problem, properly presented, has been shown to have public benefit, there are instances where federal agencies have entered upon cooperative work programs with the pro vision that individual conceptions occur ring in the course of the work are owned by the partner first noting the conception. There are even fellowships which permit industrial students to serve a term to ac cumulate federal techniques and then re turn to their private employers.
The bureaus vary in their \ri-e\vs a s to their duties in such problems, hut, given an adequate expression of the public benefit, given all the honor and credit due them, and perhaps shop rights, industry will find that cooperation is readily forthcoming. The issues are always negotiable and will be discussed in Washington with increas ing favor as the months go by. I t is unfortunately true that industry has in some cases sadly mismanaged its relations with the federal programs and the civil servants who opcra/te them. There is among some of them the attitude that whatever Washington undertakes is based upon and guided by political con siderations. Thus they avoid the decision to negotiate for their possible advantage. They are also inclined to classify this federally sponsored work as ineffectual, or at least as being so altruistic as t o be impracticable as far as immediate utiliza tion is concerned. Such an executive laughs or complains with the same atti tude he has toward the incom-e tax col lector or the antics of a noisy Congress man. In what way is this wrong? E21 the first place, he should realize that when federal programs are influenced by political con siderations, it is only in their broad out lines. H e should realize that the bureau chiefs and their staffs and workers repre sent as great a diversity of political opin ion and action as will be found i n his own organization and no more .than that. But cooperation with federaL programs will not be achieved without a change in at titudes. You cannot cooperate as long as both the civil servant and the man in private industry have made up their minds that the other's approach i s im possible. Sometime in the past of the civil servant, whether brought about by extraneous circumstances, or by* a kind of temperament, there is a decision that de votion to that special way of life is his personal preference. That my offers him security and peace of mind, a place of es-
teem for his family in the community; advancement as his years and accomplish ments grow, and finally and most impor tant, full honor and credit for each achieve ment in his field. Those who have made a decision in favor of the competitive way of life are thus, quite clearly, of another tem perament and with another set of devo tions. Neither temperament can look down on the other and expect complete cooperation. Also, it is difficult for the civil servant to negotiate with a represen tative of industry who does not have the authority to be frank nor the knowledge to be useful. How can an exchange of opinions be equitable on that basis? Too, such an exchange is especially difficult for the civil servant, when the record carries instances where his hospitality has been followed by thankless appropriation of his ideas by industry and without even the honor and credit which form his sole re ward. After all, when you consider the amount of federal money that is being spent and will be spent, it must be remembered that a $500 million expenditure "can't be wrong"—entirely, and if it is going to grow to a billion, it is time that we recognized that even fewer hundreds of millions can go wrong. The executives of the chemical craft have the peculiar responsibility of the careful initiation and maintenance of policies of expenditure which lead to what makes the mare go—profit. Regardless of how Congress may act, regardless of the "politics" they fear may hold up their in terests, these executives should consider only that there are millions of dollars of expenditure and thousands of programs among which there must be many imping ing on theirs. Industry should consider whether its own expenditures can wisely proceed without reviewing these federal programs which are already so large and which will certainly not be diminished. PRESENTED before Synthetic Organic Chemical Manufacturers' Association in New York, Jan. 13.
Rubber Industry Faces Dilemma A STAFF REPORT Λ U. S. rubber policy that makes ade quate provision for national defense, the American rubber industry, the U. S. tax payer and consumer, and our program of international aid can be formulated only after consideration of many complex rela tionships. The dimensions of the problem facing our lawmakers, who must decide on the disposition and future operation of our synthetic rubber plants, were impressively revealed in a forum discussion Jan. 13 before the Chemical Engineers Club of Washington at the U . S. Chamber of Commerce auditorium. The forum was 242
the second formal program presented by the organization since its formation in mid-'47. Moderator for t h e program was Adm. C. E. Braine, chairman of the Ajrny-Navy Munitions Board Rubber Committee. H e also spoke on the national defense as pects of the problem. A State Department representative, William Phillips, discussed international implications. J . P . Coe vice president of the U. S. Rubber Co. reported on the present technological status and future outlook for synthetic rubber. The executive director of Rubber CK E M I C A L
Reserve, G. B . Hadlock, outlined the rela tion of-the synthetic* rubber industry to our national economy. Problems and issues involved in stabilizing the domestic rubber industry were brought out by R. PDinsmore, vice president of Goodyear Tire and Rubber Co. Congressman Fred Crawford of Michigan, and vice chairman of Sub-Committee No. 3 on Rubber, Armed Forces Committee, summarized the current attitude of Congress toward rubber legislation. Adm. Braine said that discussions with industry representatives have led to AND
ENGINEERING
NEWS
general agreement that forthcoming legislation will satisf}' defense requirements, although there is difference of opinion about the number of synthetic rubber plants that should be kept in operation. Security dictates that the operating capacity be scattered geographically. The over-all rubber security program, Adm. Braine stated, should include operating synthetic plants, standby facilities, and a natural rubber stock pile. The military services also believe a source of Americangrown natural rubber should lie developed, and have requested the Department of Agriculture to carry on experimental work with this objective in view. International of U. S. Rubber
Implications Policy
Other nations fear that U. S. synthetic rubber facilities will be misused to depress the price of natural rubber, Mr. Philips stated. Their misgivings will be particularly strong as long as the plants continue to be operated by the Government and use of synthetic rubber in products of commerce continues to be made mandatory as at present. The opinion was strongly expressed that the Government should operate the synthetic rubber facilities only for national defense and mandatory usage be kept to the minimum consistent with that need. The current world capacity for producing rubber is substantially above the demand, perhaps by a factor of two to one. The disadvantages inherent in this situation might be alleviated most constructively by a substantial increase in the use of rubber. The State Department thinks this approach has considerable merit, and would like to see work undertaken with this purpose in view. International commerce in rubber, said Mr. Phillips, is considered more healthy if it is between private organizations rather than between governments. R. P.
VOLUME
2 6,
Dinsmore
NO.
4
» ·
An additional facet of the security aspect was also brought o u t with the information t h a t our Government is encouraging further efforts t o develop a natural rubber industry in South America, which would provide another source of supplies if the Far East were again cut off by another war. Experiment stations are now sponsored in several South American countries, with the program's entire present cost of about S300,O00 a year being borne b y the United States. M o s t of the work now under way is being directed toward development of disease-resistant trees suitable for plantation growth in the area. In automobile tires, overwhelmingly the most important tonnage use, synthetic now appears about 15% below natural in performance. Consequently, a relatively small price differential in favor of synthetic might have a large effect o n the proportion used by free choice of the industry. Research has shown that manufacture of the butadiene-styrene polymer at temperatures of 0° to 40° F . instead of the present 120 e t o 130 ° F . yields a product with substantially improved characteristics, and two large plants are preparing t o provide large tonnage quantities of the new material. Other work is being carried on to investigate mono- and dichlorostyrene as substitutes for styrenc in t h e polymer manufacture. Continued active research, either private or government-sponsored, should by all means continue, said Mr. Coe. The economic benefits our nation has received through the existence of the synthetic installations were discussed by Mr. Hadlock. H e commented that the postwar price of natural rubber probably would have been two to three times what it is now if the stabilizing effect of the synthetic installations were absent. He pointed out also that the governmentoperated synthetic output since the war has benefited the rubber industry because of savings from lowered raw material inventories of around 30 days' supply that they are able to maintain with reasonable security through the allocation system. In summarizing the physical dimensions of the program, Mr. Hadlock reported that a total investment of $760 million had been made in 51 Rubber Reserve plants. Present employment in t h e facilities now operating totals about 12,000 a s compared to 22,000 on V-J D a y . A frustrating conflict of ultimate objective and immediate necessity is the dilemma the American rubber industry faces, according to Mr. Dinsmore. The industry recognizes the desirability of complete private operation of rubber plants, but his company fears that economic competition from natural rubber producers prohibits such a course now. A price advantage of 2 to 4 cents per pound would make synthetic rubber competitive with natural. A major fraction of present synthetic rubber cost is accounted for
J A N U A R Y
2 6,
1948
J . P.
Coe
by the monomers butadiene and styrene from which it is made. Mr. Dinsmore felt the ultimate solution of the economic problem depends on development of new elastomers. He consequently recommended continued government control of synthetic rubber production in the U. S. as long as the current situation continues. Congressional
Opinion
Congress views the rubber situation as primarily a national defense problem, Congressman Crawford stated. Specifically, the minimum annual capacity essential for security is now considered to be 600,000 tons of GR-S and 75,000 tons of butyl, with a third of this to be actually produced and consumed, under compulsion if necessary. The great importance of actively continuing research in synthetic is appreciated, and legislation is favored that will permit this research to be carried out without requiring that the development cost be reflected in any improved products that result. The* law under consideration may require that sale of synthetic rubber plants to private industry be subject to approval by concurrent resolution of Congress. One butadiene from alcohol unit may be retained to maintain technological progress in a process that may provide an outlet for agricultural surpluses at some later date. Congressman Crawford considered it desirable that all governmental activities in rubber be unified into one agency. Opinion is divided as to whether this should be centralized in Rubber Reserve or in some other organization. Support of the Marshall Plan would, in Mr. Crawford's opinion, require that U. S. rubber policies be selected so that they do not harm the natural rubber industries that are a source of economic strength to other friendly nations. Congressman Crawford therefore thinks it highly unlikely that 12-cent natural rubber will appear in the next 48 months. 243
