GOVERNMENT
Yes, But M a y b e No High bidders on government rubber plants "sweat it out" on last lap to ownership —Congressional a p p r o v a l A s T H E deadline for Congressional -*** approval of t h e sale or synthetic rubber plants draws nearer this week, potential owners will blow hot or cold with every little change in the Congressional wind. Until about a week ago, nearly everyone seemed to agree t h a t t h e Government, industry, and taxpayers all got the best possible bargain. There were exceptions, of course, but none of too much import. Then Representatives Emanuel Celler (D.N . Y.), Wright Patman (D.-Tex.), and Sidney R. Yates (D-Ill.) announced they would fight disposal of the plants on the House floor. P a t m a n immediately filed a resolution t o that effect. Patman's resolution is "privileged." T h a t is, it must come up for House vote a n d cannot b e tied u p in committee before t h e deadline date this week. If Patman's resolution is voted favorably, it would signal disapproval b y the House. Such action would m e a n t h e sale of 24 government-owned rubb e r plants, with a price tag of $285,465,000, plus $25.1 million in miscellaneous items, goes down the drain. This would b e after t w o years of negotiating—at considerable cost for both industry and Government. On the other h a n d , if Patman's resolution is voted d o w n and no other disapproval comes formally from either house, the rubber plants automatically b e c o m e the property of t h e bidders. T h e Government would realize $310,564,000-considered a 9 6 . 6 % return on t h e unrecovered investment, according to the Rubber Producing Facilities Disposal Commission which negotiated t h e contracts. Formal approval is not necessary. As long as no formal disapproval appears before midnight, March 25, the plants c a n be considered sold (C&EN, Jan. 3 1 , p p . 416, 4 1 9 ) . Congressional Objections. Celler, P a t m a n , and Yates h a v e a n u m b e r of reasons for opposing t h e sale. First, they claim to b e concerned over the fact that small firms haven't gotten e n o u g h of t h e plants. This leads t h e m to fear that the new owners won't give a fair and a d e q u a t e "cut" of production to small business. "They [the buyers] are not," says Celler, "unselfishly going to cater to small business." T h e n e w owners themselves are major consumers who will take care of their own needs first, h e points out. 1198
Rep. Yates adds that h e does not believe the proposed plan of sale meets with the criteria orginally laid d o w n by Congress—a scheme that would foster a competitive synthetic rubber industry. Yates and Celler feel t h a t most of the plants would go to companies which have bad antitrust records. Such records, says Celler, augur "little if any expectation for free a n d open competition" in the industry. T h e dispersal program, h e declares, would in effect transfer almost t h e entire synthetic rubber industry to corporations which in the past have taken "active steps to limit competition, to fix prices, to establish quotas—all to t h e detriment of a free enterprise system a n d to t h e detriment of small business with a consumer-be-damned attitude." O n the other hand, there is a lot of support for approval of t h e sale. Strongly endorsing t h e disposal p l a n is one of tlie most influential m e m b e r s of Congress, Rep. Carl Vinson ( D . G a . ) , chairman of t h e H o u s e Armed Services Committee. W h e n h e opened committee hearings on the disposal plan, Vinson \vas quite definite in stating he wants t o see t h e plan carried out. H e says the disposal committee has done "an outstanding job." T h e p l a n also meets all the disposal criteria
established b y law, he a d d s , gives the taxpayer full fair v a l u e , establishes a competitive market, enhances national security, a n d assures small users of rubber at fair prices. A Senate Finance subcommittee also held hearings on t h e r u b b e r plant disposal program. Assistant Attorney General Stanley N. Barnes, in charge of the antitrust division, said Justice still believed there were n o real conflicts with t h e antitrust laws under t h e disposal p l a n . Justice's approval a t this time, however, h e adds, is no indication the antitrust division will not watch the companies in t h e future. I n fact, Justice "most certainly will" watch these companies for antitrust violations in the future—perhaps more closely, Barnes says. Shell's Bid. T h e b i d for the three Los Angeles plants by Shell Chemical also c a m e under scrutiny during the Senate subcommittee hearings. Shell failed to comply w i t h t h e provisions of the disposal law, c h a r g e s John L,. Connolly of Minnesota Mining and Mfg. Shell should have m a d e individual bids for each plant, h e declares. Shell stated in its bid i t was not interested in b u y i n g any one of t h e plants b u t all three. A letter from the Controller General's office declared, however, t h a t Shell's b i d was legal b e c a u s e it did, in effect, submit a bid—zero—for each individual plant if it could not b u y all three. As C&EN goes t o press, it is learned Rep. Clyde Doyle (D.-Calif.) h a s filed a resolution to disapprove of t h e three plant sale to Shell.
Certificates o f Necessity From Jan. 27 through F e b . 23 certificates of necessity amounting cates included those to Miami Oil Certificate grand total n o w stands average 60% allowed for rapid tax are listed helow. N A M E OF LOCATION
COVEPAJNTX- JLND OF FACILITIES
Murmanill Corp. Fairbanks, Tex. Bennett Mining KeewatinOil Village, Minn. California Perth Amboy, N. J. Gulf Oil Port Arthur, Tex. Magnolia Petroleum Vanderbilt, Tex. Miami Oil & Refining West Palm Beach, Fla. Phillips Petroleum Borger, Tex. Standard Oil (rex.) El Paso, Tex. Standard Oil (Ohio) Cleveland, Ohdo Allied Resins Conneaut, Ohio Allied Chemical & Dye National Aniline Div. Buffalo, N. Y\
t h e Office of Defense Mobilization issued 87 t o $170,663,253. Some of t h e larger certifia n d Gulf Oil for additional refining facilities. a t $29,879,856,000 for 19,538 facilities at an amortization. Certificates of chemical interest
PRODUCT OR SERVICE
AMOUNT CERTIFIED
$
Casing-head gas Iron ore concentrates
PERCENTAGE ALLOWED
3,000 7,000 839,500 1,359,700
25 40 65 65
Petroleum refining
125,000
65
Petroleum refining
7,711,300 21,333,500 575,000
45 55 50
5,043,000 6,442,000 488,000
40 65 65
Plastic products
923,000 1,755,000 S50,OO0 3,550,000 36,800
45 65 45 65 50
Research and development
2,118,150
45
Petroleum refining Petroleum refining Petroleum refining Petroleum refining Petroleum refining
CHEMICAL
AND
ENGINEERING
NEWS
Potomac
Postscripts
• N Naa t u r a l gas g a s Act a m e n d m e n t hearings start tomorrow, M a r . 2 2 . Bone of contention: regulation of gas prices at the well.
Small Business Committee. The group will conduct 18 other investigations concerning small business.
• J o h n v o n N e u m a n is n o w a m e m ber of the Atomic Energy Commission. Senate confirmation of von Neuman's nomination w a s u n a n i mous b u t only after long delay caused b y the Dixon-Yates d e b a t e .
near Washington got one step nearer to reality as the Joint C o m mittee on Atomic Energy said it would d r a w u p a $10 million construction bill.
• Industry regulation u n d e r the new Atomic E n e r g y Act of 1954 was the subject of A E C meetings with the chemical industry a n d research organizations last week. There are few details as yet b u t subjects discussed p r o b a b l y include: licensing, patents, fees, and distribution of radioactive m a t e rials.
• Pesticide chemicals list of complete rules a n d regulations, as authorized u n d e r last year's Miller Act, were published in t h e Federal Register, Mar. 11.
• M e r g e r s in small business is one
investigation target of t h e Senate
^AEC h e a d q u a r t e r s building i n or
• Uninsured atomic energy facilities are getting another look from hitherto hesitant insurance executives. A E C is providing t h e executives with up-to-date information on reactors in order to expedite civilian use of atomic energy.
Congress to See N e w GATT G e n e v a meeting to revise the G e n e r a l A g r e e m e n t on Tariffs and Trade over — proposals go to Congress qpHE N E W General A g r e e m e n t on •*• Tariffs and T r a d e is c o m p l e t e a n d ready for the signatures of t h e m e m b e r nation representatives. T h e U . S. delegation, sent b y the State D e p a r t m e n t to sit in on the G A T T revision talks, says it is leaving Geneva convinced t h a t t h e best interests of t h e U. S. h a v e b e e n served. T h e U. S. delegation will n o t b e signatories to G A T T at this time. T h e revised agreement, however, will b e submitted t o Congress for possible approval. This in in a c c o r d a n c e with President Eisenhower's promise in his foreign economic message. G A T T critics have constantly l a m b a s t e d t h e agreement as "illegitimate" b e c a u s e it does not have t h e approval of Congress. Yet t h e U. S. has generally b e e n a d h e r i n g to the agreements of G A T T , they say, as if it were a m e m b e r nation. Tlie State D e p a r t m e n t , on t h e other hand, claims G A T T is t h e major m e a n s b y which t h e U. S. has p u r s u e d t h e objectives of t h e T r a d e Agreements Act, despite absence of Congressional a p proval. Provisions of t h e N e w GATT. T h e n e w G A T T closely resembles t h e old version. T h e experts, according t o o n e Geneva dispatch, h a v e examined t h e o l d problems and h a v e c o m e u p with about the same conclusions. T h e y d o believe, however, t h a t t h e n e w agreem e n t is more realistic, easier t o enforce, VOLUME
3 3, N O .
12
•
•
•
and more firmly grounded in t h e realities of international trade. T h e U. S. delegation also says t h e new G A T T does not contain m a n y objectionable features w h i c h various countries sought to introduce. For example, n o n e of the provisions of t h e 1948 Havana Charter of the International T r a d e Organization—violently objected t o in the U. S.—found their way into t h e n e w G A T T . T h e agreement, it is claimed, deals only with w h a t is necessary to provide tariff stability and proper conduct of trade. T h e n e w G A T T also establishes an organization to administer t h e agreement and to facilitate consultation a n d study on international trade matters. T h e new b o d y is called t h e Organization for T r a d e Cooperation. Chief point about t h e n e w G A T T is that it extends t h e "tariff t r u c e " for three more years. U n d e r this provision, customs duties for more t h a n threefourths of the free world's t r a d e will b e frozen. I t also provides for the lowered tariffs to continue afterwards unless renounced. W h a t the provision does is to h a v e m e m b e r nations t r e a t t h e goods of all nations alike from a tariff standpoint—concessions g r a n t e d to o n e are granted t o all. T h e nations also agree not to use import quotas as a means of restricting imports. Most of the text of t h e agreement, however,
MARCH
2 1, 1 9 5 5
contains exceptions for one or more countries to this general principle. C o n g r e s s i o n a l A p p r o v a l ? Congress is expected to be split on t h e revised G A T T about as evenly as it is on the reciprocal trade bill which passed the House by a slim margin a n d is now before t h e Senate Finance Committee. Witnesses pro or con the reciprocal t r a d e bill have been equally vociferous o n G A T T . In fact, t h e t w o are so closely allied that almost as much has b e e n said for or against G A T T at the hearings as on the trade bill itself. For instance, the Manufacturing Chemists' Association in t h e House hearings questioned Congress' rush to p u t t h e trade bill through. Congress w a s acting on a bill before it knew w h a t t h e very similar n e w G A T T agreem e n t contained. W h y not wait at least until t h e G A T T proposal had b e e n submitted to Congress, asked MCA. MCA, like the Synthetic Organic C h e m i c a l Manufacturers Association, is n o t opposed to the President's foreign policy objectives, it says. E a c h , however, is opposed to certain features of t h e proposed bill to implement Eisenhower's objectives. Chief objections a r e t h e lack of provisions for gradual, m o d e r a t e , selective, and reciprocal tariff revisions. As n o w provided, most tariff reductions would b e across-the-board a n d poorly serve the U . S., b o t h say.
External
X-B
Bearina
PUMP
fvilliuui ^tuning UUA, gaarvcid vi vaivco :
T h e Vanton corrosion resistant "flex-i-liner" self priming rotary type plastic pump is available in a new design that permanently protects all b e a r i n g s f r o m f u m e s or c h e m i c a l attack. Low maintenance is assured since shaft bearings are external and rotor assembly is stainless steel. The Only wearing part is the quickly replaceable low cost flexible liner. Capacities range from fractional to 5 gpm with 0-50 psi discharge pressures . . . vacuum t o 2 6 " Hg. A wide selection of plastic and rubber body blocks and "flex-i-liners" makes the X B ideal for handling corrosive liq u i d s , g a s e s , viscous f l u i d s o r abrasive slurries.
VANTON
_J P U M P 6L EQUIPMENT n of Cooper Alloy Corporation •
CORP.
HILLSIDE, N . J .
1199
