VOLUME 25 NUMBER 11
Industrial AND ENGINEERING Chemistry
KOVEMBER 1933
J
HARRISON E. HOWE,EDITOR
The Editor’s Point of View
D
RY WELLS.
Emboldened by the cry for economy, the federal departments have dismissed thousands of employees, many of whom had spent years in special training and who are now not only without employment but facing the possibility that new positions can be found only with the greatest difficulty. It remains t o be seen whether some of these places may not later be filled with inexperienced personnel. Time alone may tell whether any real economy will have been effected. One is inclined to contrast the 10 million dollars thus deducted from the cost of scientific research and the service, with the proposal to spend 285 million on the construction of warships, 200 million on the Army, and about 400 million on highways. With all our need for safe and rapid means of transportation, some day a writer will gain fame by setting forth clearly the great waste in some of these programs, in which costly errors have been made in construction. Large sums have been spent to care for trafGc peaks that rarely occur and expensive highways have been put through as political measures. But a t the moment we are thinking of the day when an influential constituent will put in an appearance in Washington seeking information vital to his business, only to find that it is not to be had because that line of investigation was discontinued in the economy movement of 1933. It is strange how many people have not yet learned the time factor involved in getting reliable facts. In the past much information has come to us with relative ease, when compared with the difficult problems now confronting us. It is like clearing away the underbrush in a forest. One can shut down a machine shop or a foundry and when the product is wanted it can be turned out again on a few days’ notice. It is not so easy where the task involved is wresting from Nature another of her secrets. It will be recalled that some of the government bureaus were invaluable in the time of national emergency. Many industries have benefited from what has been done a t federal expense. Much of the work undertaken, in our opinion, has been outside the purview of the government. We contend, however, that faults in the past
have had to do more with the choice of problems than with the principle that fundamental research of some types is a proper function of the Federal Government. We can only hope that sufiicient water may rise in the well of knowledge in advance of the need. * *
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BSOLESCENCE. The item of obsolescence is to be found in all modern accounting and is regarded as inevitable, quite as much as are taxes. I n most instances, however, the term is applied exclusively to buildings and improved real estate, although it is accepted for some types of equipment, particularly where experience has shown that severe use may lead t,o short life. There are instances to show that the customary allowance per annum for obsolescence of this sort is too low and not infrequently a board of directors is unwilling to undertake new structures and new equipment because of values still carried on the books, whereas under a more forward-looking policy such an obstacle to progress would not have confronted them. But there are other types of obsolescence which go practically unrecognized and for which no allowance is made. We refer first to the rapid obsolescence due to improvements in processes, which should constitute one of the largest charges on the books. There is also real obsolescence in the case of products which if neglected may permanently cripple a manufacturer. Speed of production is one of the essential factors in modern manufacture, and it cannot be attained with some types of old equipment. A few years ago a new type of cutting alloy was perfected which made possible a speed previously unapproached in working many types of metals. The highest efficiency possible with this material was out of the question with many pieces of old equipment, some of which might have been replaced with profit but for existing book values. Such rapid strides have been made lately in grinding equipment that in the production of one article the time factor has been reduced from one-half day’s labor to 25 minutes. A certain company resists the change involved largely because they have kept on their books
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an old process for which new equipment of older models has been installed. They now feel unable to write this investment off their books. Had it been written off a t say 15 or 25 per cent yearly, it would now stand a t no value, and the mental attitude toward a progressive change would be very much better. The obsolescence of products is well illustrated by the experience of a certain automobile manufacturer who, notwithstanding the most modern types of equipment with which to make his favorite model, found himself unable longer to satisfy the public, and was forced into a change so complete that costly delays ensued. I n considering obsolescence in industry other than for real estate and buildings, it is interesting to note the published estimate that 85 per cent of the industry in the United States is based on patents which have either expired or are still existing with a definite and short term of life. Unfortunately there is also obsolescence in personnel. This is not necessarily a function of age, but is reflected in the mental alertness, the adaptability, and the capacity to grow which characterizes some individuals and is absent in others. As industry is now developing, there is small place for the individual with a permanent set, and some of the large corporations realize that a kindness is done the employee who has ceased to grow, if he is transferred and given an opportunity elsewhere, or even dismissed that he may find a more suitable niche. I n one case a man after many years of service in manufacturing failed to demonstrate anything that would warrant a promoting from a minor capacity or even a transfer. H e was relieved of his post and became attached to an entirely different enterprise where he has forged to the front and prospered. It is not uncommon to find comparatively young men who have become just as objectionable points of congestion in a growing business as others many years their senior. We also know men who have grown gray, even white, in service, but who nevertheless have continued to develop and who are by no means obsolete. It is true that, allowing for these various types of obsolescence, rather large sums may need to be written off a t intervals and to these of course should be added the annual charge for research. This is the cost of the company’s definite efforts in seeking new processes and products which will replace the old ones, thereby maintaining a place in the front ranks of the procession. Such procedure keeps an organization ever ready for the new venture, when once it has been sufficiently tested to demonstrate its commercial advantage. It means a better ability to make the adjustments constantly demanded and to meet such situations as now confront us, where the demand for the new seems certain to be accelerated and where the advantages of technology will surely be emphasized. In a sense it is the same sort of policy which Joseph followed in Egypt, when during the seven fat years he set aside corn against the several lean years to come.
Vol. 25, No. 11
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FAIR ARENA FOR COMPETITION. Progress can be measured best by true comparisons. Interest can be aroused by printed description, preferably with illustrations, thus preparing the user for the forthcoming improvement. Convincing data compi1ed:from experiments and tests are necessary to the technical man whether his further acquaintance with the progressive changes in process or equipment is to be through the flow sheet and blue print or from actual personal contact. But the time soon comes when the prospective user will wish to see and examine. Particularly will he insist on mixing comparisons for himself. Such comparisons involve not only that which is being superseded in the specialty of one manufacturer, but also what competition offers. In no industry is constructive competition more the life of trade than in the chemical and allied industries. While it is true that first improvements have been made solely from the motive of betterment for their own sake and not because forced, there is undoubtedly much stimulation in the knowledge that another strives to take leadership through betterment in design and method. What is needed is an impartial arena where competitors can measure their strides one against another for the benefit that comes for demonstrated superiority and for the advantage to the industry that it serves. Such an arena is provided by the Chemical Exposition. Here competitors can meet in a friendly manner. Each shares with the others all the advantages of the setting, of facilities, of audience, and of publicity. Clearly this is the time and place to put forth the best, that leadership may be proved, and to display those things which speak loudest the words, “Here is a concern that is not content to rest with a job well done, but which goes on year in and year out to improve and then improve again.” The Chemical Exposition becomes an arena where the only fatalities are to those who lack progress. Absence from among those exhibiting might even be interpreted as an indication of lack of progress, or perhaps a certain reluctance to risk comparison. At any rate, the real leaders are to be found at the Chemical Exposition. 4
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-HAT DO WE NEED? An enormous amount of energy and treasure beyond our comprehension is being devoted to the commendable effort to restore general employment to a normal level. A noted economist recently asked a question which deserves careful thought, If we were able to reemploy a t once, or within a short period, all those who are willing to work but who are without jobs, just what would we like them to make? Stocks on hand and capacity to overproduce most of the well-known consumer goods is one of our difficulties. Is this not a challenge to ingenuity?
