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454
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I N D U S T R I A L A N D ENGINEERING CHEMISTRY
Naturally, the demand for new equipment cannot be expected to be great in such times. However, reduced production affords opportunity for replacements without disturbance, which normally is out of the question. The use of corrosion-resistant alloys in all manner of equipment, piping, valves, etc., has made available to some branches of the industry devices with which products of greater purity and more satisfactory yield can be made. Where outstanding economies and increase in efficiency can be expected, new equipment is being placed with the immediate future in mind. As for repairs, these are going forward on a considerable scale. Buildings are being put in order or altered. Equipment not to be replaced is being put in the best of condition, and much painting is in progress. Frankly, in some cases a part of this work is being done to retain valuable men on the payroll. However, even this is an optimistic sign, indicating a belief in the need ere long for these men in their old positions. The very large building program initiated in 1930 has naturally carried over into 1931, during which year it may be completed. It is not likely, therefore, that any considerable building will be begun later in the year to carry over into 1932. What transpires in the interim must be left to dictate those future decisions. The favorable position of the chemical industry as compared with others can suffer from two causes. Bankers can disturb the structure if they force to be sold at any price the surplus stocks of manufacturers who become temporarily weakened. Any further price wars would be equally detrimental. The latter is more likely to be hurtful than the former. All in all the prospects seem conservatively encouraging, and the lessons being learned, if they are but remembered, will make for a stronger industry in the immediate future.
The Chemical Exposition HE week of May 4 will find the Thirteenth National Exposition of Chemical Industries established in the Grand Central Palace in New York with as much space occupied as on former occasions and with a number of new exhibits. The exposition is more than an assembly of new and improved equipment, chemical products, raw materials of the chemical industry, and related items. Admittedly conducted as a commercial enterprise, the exposition nevertheless has become established as an important factor in the chemical life of America. Those familiar with the history of the exposition and the concurrent development of American chemical industry agree that the former has had a great influence upon the latter. It is well to recall that in those early days it was the exposition that served to emphasize the ability of our equipment manufacturers to provide the necessary devices with which to undertake seriously large-scale production of needed chemicals. It was to the earlier expositions also that manufacturers brought the first fruits of their efforts to show how successful they had been in a comparatively new and untried field. Those responsible for the advance of our chemical industry also came in numbers and found the opportunity to decide major questions after conversation with their colleagues. The exposition is not without an enviable record of services rendered to the exhibitors. Orders approaching a quarter of a million dollars have been known to be placed with exhibitors during the exposition week, and some of the largest purchasers came from foreign lands to see and to buy. The publicity incident to the exposition’s activities has been dignified and constructive, thereby adding its bit to our success in winning the sympathy of the general public. There has been the educational side. Students, accompanied by instructors, have attended, but far more should
Vol. 23, No. 5
make the most of the opportunity. However, those who have come-and the number has increased as we have gone along -have been able to see in the compass of a week more pertaining to their work than would be possible in weeks of travel to the various plants and warehouses. The students’ courses have called forth the cooperation of well-trained specialists, who have been glad to present discussions on topics chosen by the director of the students’ courses to produce a well-rounded program and leave the lasting impression which comes from the receipt of valuable information. The event is important from many points of view. That section of the public which comes in the evening cannot fail to go away impressed with the fact that this industry, so little known prior to 1914, is now fundamental to public well-being and is conducted on a scale comparable with other commercial enterprises. There will be stockholders interested in more intimate details of the products of various concerns. There are sure to be bankers and financiers, executives and economists, journalists and teachers, among the crowds of plant operatives, technical men, and students. All are a part of the great army of ultimate consumers whom we seek to serve. The exposition is an occasion of moment. It is a biennial opportunity to get abreast of new developments. It is one of the yardsticks by which we can measure our progress.
Taxes N SCHEDULES of costs an item for taxes may frequently Imore be found toward the end of the column, and we view it as an indication of the completeness of the estimate than as a matter of serious consequence. We know taxes are necessary. We know they must be paid, but we pay altogether too little heed to current trends in taxation and their direct bearing upon industry and the cost of doing business. Because of the publicity given to the federal budget and expenditures, when the subject of taxes is broached we are inclined to think of the income tax, or of customs, or some other federal levy and leave out of consideration state, county, and municipal taxes. Of late the only encouraging sign in taxation has been the decrease, until 1930,in the federal budget, and consequently in federal taxation. During the 1925-28 period the interest payments by the Federal Government decreased 5.7 per cent, 5.2 per cent, and 7.1 per cent over each preceding year, There was a decrease in total federal expenditures, aside from public debt requirement, up to 1930, but the commitments made by an overgenerous Congress indicate a considerable increase from that time through 1932, for which estimates have been made. The actual expenditures, after setting aside something over 100 million dollars to meet the soldiers’ bonus, “adjusted compensation,” maturities in 1944, are $3,994,152,487.09 for 1930, $4,014 941,900 for 1931, and $4,054,519,200 for 1932. The item for soldiers’ relief, which appears as veterans’ administration in the budget, will be almost one billion dollars in 1932. And the end is not yet. Substantial sums raised by taxation are distributed by appropriations under the heading “loans.” The 500 million dollars originally authorized for the Farm Board, all of which and more will doubtless be used, are listed as loans. The Shipping Board advances with a total authorization of 225 million dollars are loans, The 60 million dollars to relieve drought sufferers are loans, and there are many more loans, totaling nearly a billion dollars. Whether or not any seriousminded person really expects any of these loans ever to be repaid, so far as the current taxpayer is concerned they are just as expensive as if known by any other name. I n 1932
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