THE CHEMICAL WORLD THIS WEEK
tions. The California university received $29 million in private gifts last year and is trying to increase the amount to $50 million by 1979. Currently, if an individual gives property which has increased in value since being purchased, he is allowed a tax deduction for the current market value of the property and has no capital gains tax to pay. If this "tax shelter" were eliminated, people would stop giving appreciated property, Dr. Pitzer thinks. On the proposed 7.5% tax on foundation income (there is currently none), Dr. Pitzer says this would be practicing "overkill" on responsible foundations. However, he says, "I hope the committee can concentrate on perfecting those provisions which will clearly prevent abuses such as self-dealing, personal gain, and inordinate withholding of distributable
LABOR:
ICWU Voted Out At the AFL-CIO convention in Atlantic City, there was some talk that a move to expel the 110,000-member International Chemical Workers Union from the AFL-CIO would be met with resistance on the convention floor. However, the action was to the contrary as the convention exercised its power in expelling the Alliance for Labor Action's new bride by an overwhelming vote—12.4 million for to 244,815 against. Catalyst for this action was a letter several weeks ago to AFL-CIO president George Meany from ICWU, which read in part, "In accordance with the unanimous mandate of our 1968 convention the International Chemical Workers Union has affiliated with the Alliance for Labor Action." ICWU's action followed by about a week a statement from AFL-CIO's executive council: "[The ALA is] a dual organization, rival to the AFLCIO. Membership in or support of this UAW-Teamster combine does violence to the objectives and principles of the federation as stated in its constitution, runs counter to the reciprocal constitutional pledges of its affiliates and constitutes support for and recognition of a suspended former affiliate and an expelled former affiliate." Thus at Atlantic City the convention exercised its power by supporting its executive council conclusion that: "Membership and support of the ALA by an affiliate of the AFLCIO therefore constitutes sufficient and valid ground for its suspension or expulsion under the constitution of the federation." How this series of events will affect the chemical industry remains to be
Stanford's Pitzer Disastrous consequences of reform
capital and income—but do so without penalizing the 'not guilty' along with the 'guilty/ " In a separate letter to Sen. Long, Stanford chancellor Wallace Sterling sums up the bill's possible effect. If the bill is enacted into law, he says, the net effect will be to stop the flow of major philanthropic giving. Total gifts to colleges and universities in the 1967-68 school year were $1.57 billion, according to the Council for Financial Aid to Education. The most generous givers to higher education are nonalumni individuals with 25.5% of the total. The other categories are general welfare foundations—23.5%, alumni— 22.4%, corporations and their foundations—15.6%, and religious groups and other sources—13.0%.
AFL-CIO's Meany Reaffirming prime objectives
seen. It is likely though, that the Oil, Chemical and Atomic W o r k e r s still in the federation—might try to strengthen its position as part of an overall AFL-CIO strategy to counter activities of rival ALA. Rumor has it that the act of expulsion might bring about a showdown between George Meany and UAW head Walter Reuther—sparked by labor strife, conflict, and raiding. Maybe. The decisive 50 to 1 vote certainly doesn't indicate that kicking ICWU out would threaten the federation's internal unity. Anyway, time will tell. And, in the interim, Mr. Meany will continue to reaffirm the AFL-CIO's prime objective and principles—to aid workers in securing improved wages, hours, and working conditions "with due regard for the autonomy, integrity, and jurisdiction of affiliated unions." One of the biggest challenges now facing ICWU is pulling in between 750,000 and 1 million unorganized workers in the chemical industry. Such a boost in membership would certainly enhance ICWU's position in bargaining. Being aligned with the UAW and Teamsters may help.
ARTIFICIAL LEATHER:
Tenneco Has "Polyporic" Tenneco Chemicals adds its name to the list of companies supplying artificial leather for shoe uppers. At the Chicago National Shoe Fair last week the firm introduced Jentra 3, which it claims combines the best qualities of top-grain calf with the best qualities of the artificial leathers. Du Pont, with Corfam, now has about 90% of the market in the U.S. for poromeric shoe uppers. Tenneco, through its subsidiary Genset Corp., says it has a product that is different from poromerics in that it has much less "memory." Joseph Gross, Genset vice president and general manager, says that Jentra 3 does not have a woven interlayer or scrim which can give poromerics too much memory. "Memory" can mean daily break-in for some shoe wearers, he points out. Calling Jentra 3 a "polyporic" material, Mr. Gross goes on to explain that its structure closely resembles the gradient density of leather. The material is defined as a breathable interlocking network of fibers and various cellular polyurethanes that form a composite. In artificial leathers for shoe uppers Du Pont is in undisputed first place. Gordon I. Jenkins, director of marketing for poromeric products for the firm, says that marketing has been an unqualified success. He adds, however, that Du Pont, by staying OCT. 13, 1969 C&EN
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abreast of fashion changes in color and textures for both men's and women's shoes, has taxed its production capacity at Old Hickory, Tenn. This summer, Du Pont increased capacity of its Old Hickory Corfam plant by a factor of two and a half. The total market for shoe uppers is more than $500 million. B. F. Goodrich, which produces Aztran, says poromerics and vinyls now have 25 to 30% of the nonrubber footwear uppers now domestically produced. By 1975 poromerics alone will have 25 r /c Japan's Kurashiki Rayon with Clarino is also making its presence known in the U.S. market. Kurashiki Rayon has signed a licensing agreement with Du Pont covering manufacture of Clarino. Other Japanese firms importing poromerics for shoe uppers are Toyo Rayon with Patora and Kanegafuchi Spinning Co. with Belesa. Du Pont's strong position with Corfam has caused some companies to delay commercialization of a poromeric or drop plans to enter the business. Union Carbide will not pursue plans to produce a poromeric while Celanese, Uniroyal, and General Tire and Rubber are still studying the commercial situation. Meanwhile, the list of foreign companies making a poromeric continues to grow. Glanzstoff, A.G., produces Xylee and another West German firm, Farbwerke Hoechst, says it will start up a plant to produce 2.5 million square meters of artificial leather in 1970. In England, Povair, Ltd., ICI, and Courtaulds also make artificial leathers suitable for shoe uppers. Occidental Petroleum's Hooker Chemical produces Rucaire, a breathable artificial leather that is aimed at furniture covering rather than the shoe-upper market. Hooker says that reception for this product has been excellent and that the market for "sophisticated coated products" for furniture should grow 15-fold in the next four years.
TRADE:
Bill Ready for Congress President Nixon's trade bill is ready to go to Congress at any moment. It is now sitting on President Nixon's desk, according to trade specialist and Presidential confidant Murray Chotiner. Speaking before a joint meeting of the Synthetic Organic Chemicals Manufacturers Association and Commercial Chemical Development Association in New York City, Mr. Chotiner says that he doesn't know whether the bill is on the right, left, or moderate side of the desk. It seems 10 C&EN OCT. 13, 1969
THE CHEMICAL WORLD THIS WEEK
to be tacked on the bill and such amendments would complicate its passage. Other signatories of the Kennedy round have extended their cutoff date to the end of 1969 to enable the U.S. Congress to ratify the separate package agreement which eliminates ASP. Since the new trade bill cannot be passed before sometime in 1970, the cutoff date will have to again be extended but Mr. Chotiner expects little problem in this quarter.
SHALE OIL:
Giving It Away
Trade specialist Chotiner The President may change the bill
that it differs little from the trade bill proposed by the Johnson Administration. Mr. Chotiner, who is general counsel of the Office of Special Representative for Trade Negotiations, says the President may change the bill but as it now stands it asks Congress to: • Repeal the American Selling Price system of tariff valuations, a move that will bring benzenoid chemicals into lower tariff schedules. • "Express its will" on whether the President should enter into talks with other nations on nontariff barrier restrictions to world trade. • Authorize the U.S. to share in supporting the cost of GATT ( General Agreement on Tariff and Trade) on a permanent basis. • Give the President the power to make minor adjustments in tariffs until 1973 so that he can "horse-trade" with other nations more freely. Finally, the new trade bill will make it easier for a company or unit damaged by imports to receive money foidamages under the adjustment assistance law or to increase the tariff or impose quotas on the import through an "escape clause" provision. Mr. Chotiner explains that nontariff barriers, not tariffs, are impeding world trade today. Eleven countries now claim that the U.S. imposes nontariff barriers to their trade. On the other hand, the U.S. claims that 65 countries discriminate against it with nontariff barriers. The earliest Mr. Chotiner expects the House to look at the bill is the end of 1969. He predicts that the bill will have an easier time in the House than in the Senate. Import quotas, especially on textiles, are likely
Colorado's vast oil shale lands still haven't yielded up one barrel of oil commercially, but they continue to generate controversy. Last week, Sen. Philip A. Hart (D.-Mich.), chairman of the Senate Antitrust and Monopoly Subcommittee, charged the Interior Department with a "giveaway" of some 10,000 acres in the oil shale-rich Piceance Basin, with "millions of barrels of oil at stake." Interior Secretary Walter J. Hickel immediately denied the charge, saying that "Nobody is going to give away oil shale or any other valuable resources in our custody as long as I am Secretary of the Interior." The dispute stems from sodium preference right lease applications by Wolfe Joint Venture and Kaiser Aluminum and Chemical Corp. before Interior to mine dawsonite and nahcolite on the lands. At issue is whether these sodium-bearing minerals are so distributed through the oil shale that they can't be recovered without also recovering the oil shale. Sen. Hart argues that by granting the leases the "companies could acquire the valuable oil shale deposits by
Shale oil operation in Colorado Not one commercial barrel
