CHEMICAL
& m e t a l l u r g i c a l
ENGINEERING
ESTABLISHED 1902 S. D. KIRKPATRICK. E ditor
FEBRUARY, 1942
C hem ica ls for Victory
O x e ok t he to u g h e s t jo b s f a c in g th e W a r P ro d u c tio n B o a r d ’s n ew R e q u ir e m e n ts C o m m itte e is to g ag e O ld M a n M a r s ’ c h e m ic al a p p e tit e . O f c o u rse , 11 is n e e d s f o r a m m o n ia a n d to lu o l, s u lp h u r ic a n d n itr ic a c id s m a y b e r e a d ily c a lc u la te d once th e ex p lo siv es p r o g ra m is e s ta b lish e d . L ik ew ise, th e r e a r e p r o b a b ly 20 o r 30 o th e r ch e m ic a l ra w m a te r ia ls d ir e c tly u se d in m a k in g m u n itio n s a n d f o r w h ic h th e n e c e s sa ry r e q u ir e m e n ts a r e f a i r l y w ell k n o w n . B u t t h e h itc h com es in c o n n e c tio n w ith b a s ic co m m o d ities t h a t se rv e e s s e n tia l c iv ilia n n e e d s a n d th r o u g h th e m c o n tr ib u te b o th d ir e c tly a n d in d ir e c tly to th e w a r p r o g ra m .
C h lo rin e is a good e x a m p le . A sk th e la rg e a i r p l a n e m a n u f a c t u r e r h o w m u c h he uses in b u ild i n g a b ig b o m b e r a n d he w ill look a t y o u in a m a z e m e n t. H e p r o b a b ly k now s h is n ee d s f o r a lu m in u m a n d m a g n e siu m , s ta in le s s s te e l a n d r u b b e r , d o w n to th e f ra c tio n o f a p o u n d . Y e t l i e ’s n e v e r g iv e n a n y th o u g h t to c h lo rin e o r is s u r e t h a t it is r e la tiv e ly u n im p o r ta n t to h im . H e ’d lik e ly b e q u ite s u r p r is e d w h en y o u p o in t o u t t h a t a t le a s t a d ozen o f th e i n g r e d i e n ts o f h is p la n e co u ld n o t b e m a d e w ith o u t s u b s t a n tia l q u a n t itie s o f th is “ p o iso n g a s .” T h e th o u s a n d p o u n d s o f m a g n e siu m in a b ig b o m b e r w as p r o b a b ly m a d e fro m 4,(.00 lb. o f m a g n e siu m c h lo rid e c o n ta in in g m o re th a n a to n of c h lo rin e . T h e q u a n titie s o f tr ic h lo re th y le n e o r o th e r c h lo rin a te d s o lv e n ts u se d in v a p o r d e g re a s in g o f m e ta l p a r t s a r e n o w s u r p r i s in g ly la rg e . T h e e th y le n e gly co l in th e liq u id -c o o led e n g in e s a n d th e t e t r a e t h y l le a d in th e 1 0 0 -o cta n e a v ia tio n fu e ls a r e a m o n g th e la rg e s t in d ir e c t u s e rs o f c h lo rin e . S y n th e tic r u b b e r o f th e n e o p re n e ty p e , p la s tic s a n d r e s in s lik e p o ly v in y l c h lo rid e , ti t a n i u m te tr a c h lo r id e a n d o th e r sm o k e -m ak in g m a te ria ls , a c e ty le n e te tr a c h l o r i d e a n d c h lo rin a te d w ax es u se d as im p r é g n a n ts in ta r p a u lin s , s u l p h u r c h lo rid e a n d o th e r a d d itiv e s in lu b r ic a tin g oils a n d , w e m u s t n ’t f o r g e t th e c a r b o n t e tr a c h l o r id e in th e fire e x tin g u is h e rs — a ll th e s e a n d p r o b a b ly m a n y m o re u se s f o r c h lo rin e a r e a b s o lu te ly e s se n tia l to th e a i r c r a f t i n d u s t r y . A n d h o w c a n th e i r r e q u i r e m e n t s b e c a lc u la te d b y W .P .B . e x c e p t to s a y “ G ive u s a ll y o u ’ve g o t a n d a ll y o u can m a k e— a n d th e n s o m e ! ”
S till a n o th e r a n g le o f th is p ro b le m v ita lly c o n c e rn s o u r in d u s tr ie s . T oo l it tle u n d e r s ta n d in g o f th e e s se n tia l im p o r ta n c e o f c h e m ic a ls is o f te n c o m b in e d w ith too m u c h m y s te ry a n d ig n o ra n c e a b o u t t h e i r o rig in a n d m a n u f a c tu r e . T h is h a s a lr e a d y r e s u lte d in u n f a i r c ritic is m a n d la c k o f p a tie n c e in w o rk in g o u t som e p r o d u c tio n sc h e d u le s. I t ta k e s b u t e ig h t o r n in e m o n th s to b u ild a liuo-e sm okeless p o w d e r o r T N T p la n t, b u t a s c h e m ic a l e n g in e e rs w e k n o w we a r e e x c e e d in g ly lu c k y in th e se tim e s if w e c a n c o m p le te a s y n th e tic a m m o n ia
w o rk s in even tw ic e t h a t p e r io d . T h e a i r p l a n e m a n u f a c tu r e r w ho fin d s t h a t h e n e e d s a h a n d f u l o f “ m a g o o s lu m ” (a p o lo g ie s to D o n a ld K e y e s !) to c o m p le te h is e le c tric a l in s u la tio n o r to c o n n e c t u p h is b u lle t- p r o o f g a s o lin e ta n k s , j u s t c a n ’t u n d e r s ta n d w h y th e r e s h o u ld b e so m u c h d iffic u lty a n d d e la y in g e t tin g i t to h im . “ D o n ’t y o u p e o p le a d v e r tis e t h a t i t ’s m a d e o u t o f ‘ coal, a i r a n d w a t e r ’ a n d sin c e w h e n d id th e y go 011 th e p r i o r i t y l i s t s ? ” I t d o e s n ’t h e lp v e r y m u c h to te ll h im t h a t “ m a g o o s lu m ” c a n n o t b e cooked u p in o r d i n a r y k itc h e n k e ttle s , b u t m u s t b e s y n th e s iz e d u n d e r h ig h te m p e r a tu r e s a n d p r e s s u r e s b y c o m p lic a te d p ro c e sse s in c o s tly p la n ts t h a t a r e a l r e a d y o p e r a tin g 168 h o u rs a w ee k ! A so m e w h a t s im ila r s to r y is g o in g
to h a v e to b e to ld soon to a lo t o f a u to m o b ile d r iv e r s w ho a r e e x p e c tin g to r id e 011 s y n th e tic r u b b e r t ir e s b e fo r e th is y e a r is o u t. So i t b e g in s to look as th o u g h c h e m ic a l i n d u s t r y h a s a n ew p u b lic r e la tio n s jo b to do — o r a n o ld o n e to u n d o
— in o r d e r t h a t th e r e m a y b e a m o re s y m p a th e tic u n d e r s t a n d i n g o f th e m e th o d s o f o r ig in a s w e ll as th e v ita l p a r t t h a t c h e m ic a ls p la y in th e n a tio n a l econom y.
L e t ’s p a s te u p o n o u r o w n b u lle tin b o a r d s a n d ' r e p e a t o n e v e ry p o ssib le o cc asio n in o u r d e a lin g s w ith th e p u b l i c : “ W i th o u t c h e m ic a ls a p la n e r e m a in s u n b u ilt , a t a n k lies u n u s e d , a n a r m y c a n n o t a d v a n c e ! T h a t ’s w h y w e ’r e p u s h in g th e p r o d u c tio n o f C h e m ic a ls f o r V i c t o r y .”
W A S H I N G T O N H I G H L I G H T S
ENGINEERS occupy top positions in W .P .B . Nelson graduated in chemical engineering a t Missouri, B a tt in mechanical engineering a t P urdue and Ivnowlson in electrical engineering at Cornell. Some see here the foreshadow of somebody’s plan fo r a post-w ar “ engineering economy.”
POOLING is a word th a t’s going to bo heard of tener from now 011. W hether it applies to patents, processes and technical skills, as in synthetic rubber, o r to tools, p la n t facilities and even unfilled orders, as in some mechanical industries, the objective is the same, viz., get out the goods, regardless o f legal im pedi
ments.
COMPLACENCY is dangerous. P earl H a rb o r proved this fo r the m ilitary forces. W ashington emphasizes th at it is equally dangerous fo r industry.
Trem endous speed-up is demanded.
More im portant, quick changes in m anufacturing program s will be needed. Chemical engineers are urged to avoid thinking th a t any program is fixed except the objective th a t “ we w ant more.”
TARIFF REPEAL is practically prom ised to L atin America in certain agreem ents reached a t the Rio con
ference. This is only p a r t o f the emergency program to secure com
plete unity o f action in this hem is
phere. B ut when the fa rm bloc and certain m ining state representatives find out about this, there will be b itter controversy on C apitol H ill.
SCRAP should be classified. Chem
ical industries produce some wastes w orthy o f salvage. U nder present conditions every p la n t is urged to
make it the business of certain com
petent individuals to see th a t this scrap is saved. To make recovered m aterial more valuable it should be carefully classified. Some com
modities m ust be turned back to original sources. O thers can be sold to the ju n k man. Im p o rta n t thing is
“ save and salvage.”
BONUS PRICES will be paid by R F C fo r increased production o f lead, zinc, and copper. A sim ilar plan could probably he applied fo r cer
tain chemical products. A ny high- cost producer of scarce or critical commodities should presen t his ease p ro m p tly to the a p p ro p ria te com
modity division of W .P .B . There he can find out w hether they w ant his o u tp u t bad enough to ask Loan A d
m inistrator Jesse Jo n es to buy it a t prices above the official ceilings.
COLLEGE SPEED-UP is intended to produce fu lly trained chemical engi
neers in 33 to 36 months instead of the custom ary 45. No curtailm ent of technical content o f courses is planned. Speed will be obtained p r in cipally by elim inating vacations and shortening the inter-term periods.
This program supplem ents, b u t does not supersede the special defense courses directed by the Office o f E d u cation which are providing about 200,000 reg istra n ts specially trained fo r p artic u la r needs.
MANPOWER problem s complicate the production picture. General H ershey’s statem ent (see page 119) th a t there is an adequate supply of replacem ent personnel fo r 'all men now subject to call scarcely applied to chemical engineers. Em ployers re p o rt th a t relatively few good men over 45 are still available and as fo r
lady engineers, there are n ’t any. The universities are, therefore, the only place to get train ed chemical m an
pow er and there is increasing m ili
ta ry eompetion there, especially with the Navy.
MAINTENANCE o f chemical op era
tions a t full capacity w as recognized J a n u a ry 26 in preference ra tin g P-S9 as o f vital concern to m ilitary and essential civilian needs. Hence highest possible priorities, beginning with A -l-a , are now provided to cover re p a ir o f actual breakdowns and to av ert im m ediately threatened stoppages in w ar industries.
CONVERSION is also becoming more im p o rtan t in W ashington’s vocabu
lary. I t has a religious connotation, too, th a t m ust not be overlooked as W .P.B . begins to tu rn the h eat on the boys in the back row. Nelson has said “ P lan ts and industries not slated fo r conversion will have more and m ore difficulty in obtaining m aterials as increased emphasis is placed on w ar production and the m ost essen
tia l products fo r the health and wel
fa re o f the civilian population.”
DOLLAR-A-YEAR men in the de
fence agencies need no defense before carp in g Congressmen. T heir em ploy
ment in times of national emergency was specifically authorized by Con
gress itself. The recent T rum an committee did not re p o rt a single case o f im propriety. The only al
ternative is to let men who never earned more th a n $8,000 to $10,000 a y ea r handle vital p ro jects and m ake million dollar decisions w ithout p os
session 011 th eir p a r t of more th a n a casual acquaintance w ith the u n d er
lying fa c ts and the background bf in d u strial experience.
F E B R U A R Y 19.',2 * CHEM ICAL & M ETALLUR GICAL E N G IN E E R IN G
FACTS AND FIGURES
of American Chemical Industry
NINETEENTH ANNUAL REVIEW AND STATISTICAL SECTION
For alm ost 20 years, th ese annual review issu e s h a v e h elp ed chem ical en g in eers and ex ecu tiv es to chart their course in the p ea ce-tim e progress of the process industries. N ow our ob jectives h a v e c h a n g ed . W e are faced with the task of converting our industries into a n efficient w ar m achine, to out-produce our most pow erful en em ies. W e m ust push m any lin es of m anufacture far b ey o n d their norm al ca p a cities.
W e m ust anticipate alm ost u n b eliev a b le d em an d s for ch em ical raw m aterials — and provide them w ithout d islocations that m ight curtail w ar production in entirely unpredicted directions. All the m ore e s s e n tial, therefore, are the b asic facts and figures that w ill permit u s to p la y our part m ost effectively in the nation's program . So, w ithin the limits of careful censorship to m ake certain that w e do not r e v ea l inform ation of v a lu e to our enem ies, the editors of Chem. & M et. set up in this report those econom ic and technical g u id e p osts that w ill h elp A m erican ch em ica l industry a s it a d v a n c es further to m eet the c h a lle n g e s of total w ar.
CHEMICALS
GO TO WAR
Am erican C hem ical Industry p la y s its part b y m ultiplying its production of essen tial raw m a
terials, b y d evisin g n ew products an d processes, b y ministering to n ational health, safety and s e curity—all on a sc a le that can m ean naught but victory
LOOKING BACK
M U C H o f w h a t w e n o w k n o w a s th e A m e ric a n C h e m ic a l I n d u s t r y h a d its b i r t h a n d e a r ly s tr u g g le s d u r i n g th e firs t W o rld W a r . C o in in g f r o m su c h a n o r ig in , th e la y m a n w o u ld n a t u r a l l y s u p p o s e t h a t tr a n s i tio n f ro m p e a c e to w a r b a s is w o u ld b e co m p a r a tiv e l y e a s y f o r th e c h e m ic a l m a n u f a c tu r e r . B u t t h a t is f a r f r o m th e case, as th e t r i a l s a n d tro u b le s o f th e p a s t y e a r c le a rly p r o v e d . M u c h o f t h e d ir e c t m i l i t a r y lo a d h a d to b e s u p e rim p o s e d 011 th e f o u n d a tio n s o f n o r m a l in d u s t r y . A b illio n d o lla r s , la r g e ly f ro m g o v e rn m e n ta l so u rc e s, h a d to b e s p e n t f o r e n t ir e ly n e w p la n ts to p ro d u c e p o w d e r, e x p lo siv e s a n d c h e m ic a l m u n itio n s . A s th e se p la n ts w e re r e a d ie d f o r p r o d u c ti o n d u r i n g th e s u m m e r a n d e a r ly f a ll, i t b e c a m e e v id e n t t h a t t h e i r n e e d s f o r r a w m a te r ia ls a n d p e r s o n n e l w e re g r e a t e r th a n c o u ld b e s u p p li e d w ith o u t c u r t a i l in g m a n y less e s s e n tia l lin e s o f m a n u f a c tu r e .
“ B u s in e s s as u s u a l ” , in c h e m ic a l i n d u s t r y w a s o u t, lo n g b e fo re P e a r l H a r b o r ! Y e t th e r e h a s b e e n s u r p r i s i n g l y lit tle c o n fu s io n o r h e s ita tio n a s th e p a t t e r n f o r s t i l l g r e a t e r w a r p r o d u c tio n u n f o ld e d .
P r a c ti c a l ly a ll c h e m ic a l p la n ts o p e r a te d a t f u ll c a p a c ity d u r i n g 1941—-some o f th e m in excess o f
ANNUAL REPORT b y the Editors of Chem . & M et.
to Stockholders, C ustom ers an d E m p loyees
th e ir r a t e d c a p a c itie s . Y e t 110 s u r p l u s sto c k s a r e h e ld b y e i th e r p r o d u c e r s o r c o n s u m e rs. I n d u s t r i a l c o n s u m p tio n o f ch e m ic a ls, as m e a s u r e d b y th e C h em . & M e t. in d e x , in c re a s e d m o re t h a n 2 0 p e r c e n t w h ile p r o d u c ti o n w h ic h h a d to ta k e c a r e o f d ir e c t m i l i t a r y n e e d s a s w ell a s g r e a t l y e n la r g e d e x p o rts , h a s sh o w n ev e n g r e a t e r g a in , a c c o r d in g to th e F e d e r a l R e se rv e B o a r d . C h e m ic a l s h ip m e n ts a b r o a d w e re a v e r a g in g m o re t h a n $ 2 5,000,000 a m o n th b y S e p te m b e r w h ic h is th e l a s t m o n th f o r w h ic h d e ta ile d fig u re s a r e to b e p u b lis h e d . C h e m i
c a l p ric e s , t h a t c lu n g te n a c io u s ly to th e 1937 le v el f o r th e f irs t s ix m o n th s o f 1941, ro s e to 104 p e r c e n t o f 1937 in A u g u s t a n d to 109 a t th e t u r n o f th e y e a r ,— th e h ig h e s t a v e ra g e le v e l s in c e 1930.
S u b s t a n t i a l in c re a s e s in w a g e s a n d ta x e s w ere r e fle c te d in h ig h e r o p e r a tin g c o sts a n d lo w e r n e t e a r n in g s b y m a n y c o m p a n ie s, e v e n th o u g h r e p o r t in g a g r e a tly in c re a s e d v o lu m e o f b u s in e s s . T h e re w as l it tle o r n o d ir e c t c u r ta ilm e n t o f re s e a rc h , a l th o u g h som e d e p a r tm e n t s w e re r o b b e d o f k e y p e r s o n n e l f o r w a r w o rk . I11 a n u m b e r o f co m p a n ie s, m e n e n g a g e d in m a r k e t r e s e a r c h w e re d iv e rte d to p o s t- w a r s tu d ie s lo o k in g to w a r d th e in e v ita b le d a y w h e n o u r g r e a t l y e x p a n d e d in d u s t r ie s w ill b e d e m o b iliz e d f o r p e a c e f u l p u r s u i t s . T h is f o r w a r d th in k i n g a n d p l a n n i n g is e n c o u r a g in g e v id e n c e th a t th e A m e r ic a n C h e m ic a l I n d u s t r y is a l r e a d y p r e p a r i n g to o p en u p n e w m a r k e ts a n d n e w fields f o r se rv ic e , on ce th e p r e s e n t u n p le a s a n t jo b is d o n e.
In th e m e a n tim e , h o w e v e r, a ll o f o u r m e n , m o n e y a n d m a te r ia ls a r e c o n c e n tr a te d o n a p r o d u c tio n p r o g ra m so tre m e n d o u s t h a t i t c a n m e a n b u t one t h in g — V i c t o r y !
74— 2 F E B R U A R Y 19.',2 • CHEM ICAL & M ETALLURGICAL E N G IN E E R IN G
LO O K ING A H E A D
P R E S I D E N T R O O S E V E L T h a s s a id : “ W e s h a ll n e e d a n d d e m a n d — m o n e y , m a te r ia ls , d o u b le d a n d q u a d r u p le d p r o d u c tio n . . . e v e r in c re a s in g . . . . Y o u r g o v e r n m e n t h a s d e c id e d o n tw o b r o a d p o lic ie s : th e firs t is to sp e e d u p e x is tin g p r o d u c tio n b y w o rk in g on a s e v e n -d a y w eek b a s is in e v e r y w a r i n d u s t r y , in c lu d in g th e p r o d u c tio n o f e s s e n tia l r a w m a te r ia ls . ■ T h e se co n d p o lic y , n o w b e in g p u t in to fo rm , is to r u s h a d d itio n s to th e c a p a c ity o f p r o d u c tio n b y b u ild i n g m o re new p h in ts , b y a d d i n g to o ld p la n ts a n d b y u s in g th e m a y s m a lle r p la n ts f o r w a r n e e d s .”
■ b o n a ld M. N elson h a s s a i d : “ P l a n t s a n d in d u s t r ie s n o t s la te d f o r c o n v e rs io n w ill h a v e m o re a n d '■ 'ir e d iffic u lty in o b ta in in g m a te r ia ls a s in c re a s e d .K p h a sis is p la c e d on w a r p r o d u c tio n a n d th e m o st e s s e n tia l p r o d u c ts f o r th e h e a lth a n d w e lf a re of th e c iv ilia n p o p u l a t i o n .”
C le a rly th e n , th e jo b f o r A m e r ic a n C h e m ic al I n d u s t r y in 1942 is c o m p le te c o n v e rsio n to an
efficient m a c h in e f o r p r o d u c in g w a r m a te r ia ls a n d e s s e n tia l c iv ilia n goods. W e c a n a n d m u s t look f o r w a r d to f u r t h e r e x p a n s io n . D o u b lin g a n d r e d o u b lin g is to b e e x p e c te d - fo r som e p r o d u c ts o f d ir e c t m il ita r y uses. O ne o f th e m o st f a r - r e a c h in g c h a lle n g e s, to b e s h a r e d w ith th e p e tro le u m a n d r u b b e r in d u s trie s , is th e u r g e n t n e e d f o r m a n u f a c tu r i n g s y n th e tic r u b b e r on te n tim e s th e sc ale o f t h a t o f a n y o th e r n a t io n in th e w o rld . P o o lin g o f p a te n ts , p ro c e sse s a n d f a c ilitie s w ill h e lp to s p e e d th e p r o g ra m t h a t m u s t b e c o m p le te d b e f o r e th e e n d o f 1943. O th e rw is e we fa c e th e d ir e c o n se q u en c es o f a tr a n s p o r t a t i o n c ris is a n d a b r e a k d o w n o f m a n y e s s e n tia l s e rv ic e s a n d s u p p lie s .
A s one a f t e r a n o th e r o f th e c h e m ic a ls a r e co m m a n d e e re d f o r w a r uses, th e i n d u s t r y fa c e s th e n e c e s sity f o r d e v e lo p in g a c c e p ta b le s u b s t itu te s a n d a l te r n a t iv e p ro cesses, u s in g a v a ila b le r a w m a te r ia ls a n d e q u ip m e n t. T h e jo b is n o t a n e a sy on e, b u t c e r ta in ly com es w ith in th e re s o u rc e s a n d a b ilitie s in h e r e n t in th e A m e r ic a n C h e m ic a l I n d u s t r y ,
I n s p e e d in g u p a n d p u s h in g f o r w a r d th e p r o g r a m
-CHEM. & MET. WEIGHTED INDEX OF CHEMICAL PRICES - 1 9 3 9 - 1 9 4 1
m
_ _ _ _ _ m m i i i i i i
i i i n r T T T r m i i i i i i i i i i i i i i i i i i i i i i i i i
81 III IIIIIII III II 1111 IIIIIII 111 IIII 11 lllllllllllllllllllllllllllllllllllll
11111 II 11111111 II 11111 ! 111111 EIII 1118
1751941-CO N SU M PTIO N O F CH EM ICA LS
C hem . & iAet. In d ex 1935 = 100;
/ ...
/ f
J — 1941- PRODUC
(F e d e ra l U n ad ju s
:t i o n o ie serv e Bo led 1 9 3 5 -
F CHEM
3rd In d e x 39 = 100)
/ /
I L A L o
/
165
160
155
150
M5
UO
135
130
125
J F M A M J J A S O N D
120Factory Costs of Production
Raw M a te ria ls
W ag es and S a la rie s S 5 4 . 2 <
S u p e rv is io n , etc. J
M ainten an ce &
R epair
From O p e ra tio n s From
o ther Incom e
Factory Costs of Production
Raw M a te ria ls
W a g e s a n d S a la r ie s )— 5 2 .6<
S u p e rv is io n , e tc. J
M ainten an ce &
Repair
N e t \ ß 0 ,'i
%\ Return N. ep / e
From ^ SS s^5’
_0 \ O p e ra tio n s Î 1 . 2 i \
" 0 I From
^ \ o ther Incom e 5 .5 c .
¿ \ T o tal } 6 . 7 C / T 3 . 2 < \
COMBINED TOTALS ior 38 C hem ical C orporations
(Dollar Figures in Millions)
1940 1939
Net S ales $1.253 $1.047
Net Profit from O p eratio n s 275 189
Net Profit after All C h arg es 210 200
Total D ividends 165 160
T otal A ssets 2,102 1.946
C ap ital Stock 900 919
Surplus 733 678
Net Profit from O p eratio n s in P ercent of S ales 21.9% 18.0%
N et Profit after All C h arg es in Percent of S ales 16.7% 19.1%
Ratio of C urrent A ssets to C urrent L iabilities 3.35 5.49
W HAT B EC O M ES O F THE C H EM IC A L SALES D O LLAR?
o f w a r p ro d u c tio n , a lie a v y r e s p o n s ib ility r e s ts on a ll o f us. S a f e ty m u s t s ti ll b e o u r p r i m a r y c o n s id e r a tio n . P l a n t s m u s t b e p r o te c te d a g a in s t s a b o ta g e a n d in c e n d ia ris m . E v e r y p r e c a u tio n m u s t b e ta k e n to a v o id w o rk s to p p a g e s t h a t w ill d e la y th e jo b o f g e t tin g a n d k e e p in g A m e r ic a n C h e m ic al I n d u s t r y a t p e a k p e r fo rm a n c e .
A g a in q u o tin g M r. N e ls o n : “ O n ly r e s u lt s c o u n t!
W e d o n ’t w a n t a n y a lib is o r ex cu ses. I d o n ’t w a n t t h e m ; th e P r e s i d e n t d o e s n ’t w a n t t h e m ; th e p e o p le o f th e U n ite d S ta te s c e r ta in l y a r e n o t in te r e s te d in th e m . T h o se g o als f o r 1942 c a n b e m e t.
T h e v w ill b e m e t . ”
B A L A N C E SH EET
L A C K IN G a c o m p le te a n d c o m p re h e n s iv e c o m p ila tio n o f th e a s s e ts a n d lia b ilitie s o f th e se v e ra l h u n d r e d c o m p a n ie s t h a t c o m p rise th e A m e ric a n C h e m ic a l I n d u s t r y , p e r h a p s th e b e s t s u b s t i t u t e is th e a n n u a l r e p o r t is s u e d N o v e m b e r, 3941, u n d e r th e s p o n s o r s h ip o f th e S e c u r itie s a n d E x c h a n g e C o m m issio n as p a r t o f its se rie s o f “ S u rv e y s o f A m e ric a n L is te d C o r p o r a ti o n s .” T h is r e p o r t (N o.
6) o n “ C h e m ic a ls a n d F e r t i l i z e r s ” g iv es f o r th e f ir s t tim e a s e g re g a tio n o f th e s e c o m p a n ie s b e tw e e n th e tw o m a jo r d iv is io n s. U n d e r “ C h e m ic a ls ” w e fin d fin a n c ia l d a t a f o r 38 lis te d c o r p o r a tio n s . To b e s u r e , m o st o f th e s e a r e th e l a r g e r c o rp o r a tio n s h a v in g a s s e ts o f a t le a s t $10,000,000, b u t a few7 s m a lle r c o m p a n ie s a r e in c lu d e d a n d in th e m a in , th e o v e ra ll c h a r a c te r is tic s a r e ty p ic a l o f c h e m ic a l i n d u s t r y a s a w hole.
T h e a c c o m p a n y in g ta b le p r e s e n ts a c o m b in e d p r o fit a n d loss s ta te m e n t f o r th e se 38 ch e m ic al c o m p a n ie s f o r th e c a le n d a r y e a r s 1939 a n d 1940.
I t is in te r e s ti n g to o b s e rv e t h a t d e s p ite th e f a c t t h a t sa le s in c r e a s e d b y m o re t h a n $200,000,000,
(B ase d on d a ta co llected fo r a n d sp o nso red b y the S e c u ritie s an d E x c h a n g e C o m m issio n co h erin g o p e ra tio n s o f 38 liste d ch e m ica l co rp o ratio n s)
a n d t h a t n e t p r o fits fro m o p e ra tio n s in p e r c e n ta g e o f sa le s in c re a s e d f ro m 18.0 to 21.9, n e v e rth e le ss th e n e t r e t u r n a f t e r a ll c h a rg e s d r o p p e d fr o m 19.1 to 16.7 p e r c e n t. O n e o f th e p r in c i p a l i’ea so n s is, o f c o u rse , th e ta x e s w h ic h m o re t h a n tr e b l e d d u r in g th e y e a r.
C o m p a ra b le fig u re s f o r th e g r o u p o f five f e r t i liz e r c o r p o r a tio n s sh o w e d t h a t n e t sa le s in c re a s e d f r o m $67,000,000 to $75,000,000 a n d th e n e t p ro fit fro m o p e r a tio n s in p e r c e n t o f sa le s ro se f ro m 2.4 to 4.2 p e r c e n t.
P R O D U C T IO N
C H E M I C A L p r o d u c ti o n in 1941 a v e r a g e d 140 a c c o r d in g to th e n e w F e d e r a l R e se rv e I n d e x t h a t h a s f o r its b a s is 1 9 3 5 - 9 = 1 0 0 . T h is c o m p a re s w ith 115 f o r 1940 a n d 102 f o r 1939, A y e a r ag o i t w as t h o u g h t t h a t a 10 p e r c e n t in c re a s e m ig h t b e effected in 1941. T h e a c tu a l g a in w a s m o re t h a n tw ic e th a t . B u t to a t t e m p t to e s tim a te w h e re t h a t in d e x w ill go in 1942 w o u ld in d e e d b e h a z a r d o u s . H o w
e v e r, sin c e it is b a s e d o n m a n -h o u r s w o rk e d in a v a r ie ty o f p la n ts , a n d sin c e m o s t c h e m ic a l in d u s tr ie s a r e a l r e a d y o p e r a tin g o n a c o n tin u o u s b a s is o f th r e e s h if ts p e r d a y s e v e n d a y s p e r w eek, it is e v id e n t t h a t f u r t h e r in c re a s e s m u s t com e f r o m n e w p l a n t s a n d e x p a n s io n o f p r e s e n t p r o d u c tiv e fa c ilitie s . A s e v id e n c e o f th e g a in s b e in g m a d e in u tiliz a tio n o f d e fe n s e p l a n t fa c ilitie s , th e B u r e a u o f L a b o r S ta ti s tic s r e c e n tly r e p o r te d t h a t sin c e J u n e 1941, s ix p la n ts m a n u f a c t u r i n g a s u b s ta n t i a l p r o p o r ti o n o f a ll m i l i t a r y ex p lo siv e s h a d in d ic a te d a n in c re a s e o f o v e r 200 p e r c e n t in m a n - h o u r s w o rk e d p e r w eek.
SALES
T H I R T Y - E I G H T c h e m ic a l c o m p a n ie s w hose b a la n c e sh e e ts w e re a n a ly z e d o n th e p r e c e d in g p ag e, r e p o r te d sa les i n 1940 o f $1,253,000,000, A p p ly in g th e C h e m . & M e t. in d e x e s o f p r ic e s a n d c o n s u m p tio n , i t seem s f a i r to e s tim a te t h a t to ta l ch e m ic a l sa les in 1941 w e re a t le a s t $1,750,000,000.
G en eral S u m m a ry o f T o ta l A ssets a n d V o lu m e o f B u sin e ss
NAM ES OF REGISTRANTS
Air R ed u ction C om p any, Incorporated A llie d C h em ica l £ D y e Corporation A tla s P o w d er C om p an y
The C alifornia Ink C o m p a n y , Inc.
C a ta lin C orporation of A m erica Clorox C h em ica l Co,
C o lu m b ia n C arbon C om p any C om m ercial S o lv e n ts Corporation C o n so lid a te d C h em ica l In dustries. Inc.
T he D ow C h em ica l C om p an y
E. I. du Pont d e N em ou rs a n d C om p any G e n e r a l A n ilin e <& Film Corporation G en era l Printing Ink Corporation H ercu les P o w d e r C om p an y
T he H ilton -D avis C h em ica l C om p any In terch em ical Corporation
In tern ational Products Corporation K oppers C om p an y
Lac C h em ica ls, Inc.4
L in d sa y Light a n d C h em ica l C om p an y T he Liquid C arb on ic C orporation The M a th ieso n A lk a li W orks, Inc.
M onroe C h em ica l C om p an y M on san to C h em ica l C om p any N a tio n a l C y lin d er G a s C om p an y
C o m p ressed Industrial G a s e s, Incorporated*
N a tio n a l Oil P roducts C o m p a n y N ew p ort In d u stries, Inc.
N o v a d e l-A g e n e C orporation Parker Rust Proof C o m p a n y P e n n sy lv a n ia S a lt M an u factu rin g Co.
U nion C arb id e a n d C arb on C orporation U n ited C arb on C o m p a n y
U nited C hem icals* Inc.
U nited D y e w o o d Corporation U. S . Industrial A lco h o l Co.
Victor C h em ical W orks
T he W arren R efining 6 C h em ica l C om p an y W e s tv a c o C hlorine P roducts C orporation
T o ta ls- ior 38 C h em ica l co m p a n ie s
TOTAL ASSETS
<000 Omitted) VOLUME O F BUSINESS
(000 O m itted)
1940 1939 1940 1939
50,156 44.187 36,388 27.6)3
244.805 236.698 190.260 167,993
26,046 22,047 20,582 16.531
2.252“ 2,535 2.876 2,518
1.642 1.599 1,836 1.768
1.903 1,658 3.331 2,783
31,381 30,699 16,141 15,159
20.915 20,043 15.845' 14,4811
8.831 8,537 6,091 5.508
48,185 41.855 37.744 26,762
801.311 735,824 359,056 298.833
61.984 61.493 28,211 25,803»
7,153 7,063 10,611 9.982
71340 49.108 52.4293 41,0105
2.621 2.330 2.941 2.317
17,429 17,262 24,904 23,433
6,133 6,191 3.427 4.322
112.166 109.944 55.633 40.121
545 579 153 203
587 1.059 879 522
24.017 22,990 19.124 17,194
25.455 24.857 12,431 10,967
1.399 1,364 666 678
54,231 54.752 45,608 42,983
10.644 6,922 7,649 4.945
D 4.102 D 3,419
6.581 4,740 8,275 7.729
6.309 5,671 4,736 4,573
4.611 4,463 2,228 2.521
3,183 2,645 2,612 1,920
19.206 16,707 12,453 9,572
364.670 336,845 231,393 170,347
16,959 16,447 8,483 8.575
2,947 3,029 794 729
B,B50 7.887 3,303 5,380
14.142 13,854 3.052s ‘ 11,909L
8,836 8.715 8,487 8.394
184 193 219 199
14,229 13.180 12.232 10,803
2,102.037 1,945,970 1,253,082 1,047,080
ft R epresents thirty-eight (3 8 ) registrants. •D ata lor this registrant e xc lu d e d iram totals. *A fter d e d u ctin g fe d e ra l w ith d ra w a l ta x , S27J3QJ18 in 1940 a n d S19.764.000 in 1939. *For n in e ( 9 ) month interim period iram 4-1*39 to 12-31-39- 3A lter d e d u ctin g freight a n d o p erating co sts of efis- iributinq facilities, S3.$01.874 in 1$40 a n d an u n sta ted am ount in 1939. *Form erly PaciGe D istillers. Inc.. n a m e c h a n g e d Ja n u a ry, 1941. «For Ih ree (3 } m onih interim period from 1*1-40 to 3-31*40. *A fter d e d u ctin g in tern a l r e v e n u e ta x e s. S IJ 4 S J 8 1 in 1940 a n d S3.960M 6 in 1939.
Contracts A w a rd e d for N e w Plant Construction in C hem ical Process Industries, Privately
an d Publicly Fin a n ce d , 1929 — 1941
V A L U E o f d e f e n s e c o n t r a c t s f o r i n d u s t r i a l F A C IL IT IE S F IN A N C E D BY G O V E R N M E N T A N D P R IV A TE
F U N D S , T H R O U G H SEP TEM BER 3 0 , 1941
V A LU E O F D E F E N S E C O N T R A C T S F O R IN D U S T R IA L F A C IL IT IE S , T H R O U G H SEP TEM BER 3 0 , 1941 B Y G E O G R A P H IC R E G IO N S
P R IV A T ELY F IN A N C ED
G O V ER N M E N T FIN A N C ED
PR O D U C T
A IR C R A FT
A M M U N IT IO N S
C H E M IC A L S
S H IP S
IR O N A N D S T EE L
N O N F E R . M ETA LS
G U N S
M A C H IN E R Y
M IS C E L L A N E O U S
V E H IC L E S & T A N K S
E LE C T R IC A L E Q U IP T .
PETR O LEU M & C O A L
M IL L IO N S O F D O LLARS
300 400 600 800 1,000
P RIV A T ELY
w m FIN A N C ED G O V ER N M E NT
F IN A N C ED
SOURCEs—O F F IC E O F PRO DU CTIO N M AN AG EM EN T
S O U R C E :—O F F IC E OF P RO D U CTIO N M AN AG EM EN T
C O N T R A C T S FOR PRIVATE INDUSTRIAL BUILDING C O N S T R U C T IO N -
(V a lu e in th o u s a n d s of d o lla rs) 1929 1932 1937 1939 1940 1941
R a ilro a d s ... $1,108 $2,417 $1,447 $1,827 $2,963
A utom otive ... S28.962 9.562 8.431 4,114 5,077 9.202
P u b lic U tilities ... 151.033 22.800 70,765 94.822 121,155 86.180
P ro ce ss In d u s trie s ( a ) ... 122.048 19.002 111,246 78,239 123,165 115.539
F o o d In d u s trie s ( b ) ... 32.138 14.385 36,248 23,049 28.292 34.263
M etal R efining a n d R o llin g ... 48.920 745 111,426 22,340 66.390 52.636
A uto F a c to rie s ... 3,735 21,763 1,562 5,535 2.980
A ircraft F a c to rie s ... 14.818 418 4,312 11,037 137,656 40.977
F o u n d rie s ... 4.150 188 1,890 1,819 2.050 2.235
M ach in e a n d M ac h in e d P a rts ( c ) . . 17.044 5.220 41,030 14.343 48.446 93.965
T ex tiles (e x c lu d in g r a y o n ) ... 9.705 2.047 5.017 3,714 1,931 9,418
W ood In d u s trie s . . ' ... 4.857 595 825 950 2.890 2,672
M isc e lla n eo u s F a c to rie s ... 110.311 12.646 61,511 24,744 49.065 42.634
R e frig e ra tio n a n d C o ld S to r a g e .. . 3.327 613 417 800 585 780
T otal ... 5547,313 $93,064 $477,298 ( a ) In c lu d e s D istille rie s, (b ) In c lu d e s B re w e rie s a n d W in e rie s, (c) In c lu d e s
*As R ep o rte d b y M cG ra w -H ill C o n stru ctio n N e w s S e rv ic e s.
$282,980 R ad io P la n ts.
$594,064 $496,176
1934 1936 1938 1 93 9 1940 1941
MillionsofDollars
T h is does n o t in c lu d e th e fin ish e d o u t p u t o f th é g o v e rn m e n ta l p l a n t s o p e r a te d b y p r i v a t e com p a n ie s f o r m u n itio n s p r o d u c tio n , b u t does reflec t th e ir r e q u ir e m e n ts o f ch e m ic al r a w m a te ria ls . C h e m ic a l e x p o r ts th r o u g h th e f irs t n in e m o n th s o f 1941 r e a c h e d th e re c o rd - h ig h o f $196,045,130, com p a r e d w ith a b o u t $220,000,000 f o r th e e n t ir e y e a r in 1940.
A s in p e rv io u s y e a rs , th e f e r tili z e r i n d u s t r y co n ti n u e d to c o n su m e c h e m ic a ls i n th e la rg e s t volum e, a lth o u g h f ro m th e s t a n d p o i n t o f v a lu e a n d v a r ie ty , th e te x tile in d u s t r y , in c lu d in g r a y o n , is b y f a r th e m o st im p o r ta n t. P u l p a n d p a p e r is se c o n d to f e r tili z e r s o n th e v o lu m e b a s is, b u t in 1941 p e t r o le u m r e f in in g ’s p o s itio n in t h i r d p la c e w a s clo sely c o n te s te d b y b o th g la ss a n d p a i n t a n d v a rn is h . P la s t ic s a n d s y n th e tic r e s in s a s s u m e d g r e a te r im p o r ta n c e as c h e m ic a l m a rk e ts la s t y e a r .
P u b lic a tio n w ith in th e p a s t fe w w eeks o f th e f irs t r e s u lt s o f th e 1939 C e n su s o f D i s tr ib u ti o n p r e s e n ts in f o rm a tio n o n th e i n i t i a l flow o f ch e m ic als f ro m m a n u f a c tu r in g p l a n t s to u s e rs a n d c o n su m e rs, sh o w in g th e a m o u n ts so ld (1 ) to o r th r o u g h m a n u f a c t u r e r s ’ o w n w h o le sa le b ra n c h e s , (2 ) to o r th r o u g h th e i r o w n r e ta il o u tle ts , (3 ) to in d u s t r ia l a n d o th e r la r g e u s e rs , ( 4 ) to w h o le s a le rs a n d jo b b e rs , ( 5 ) to e x p o r t in te r m e d ia r ie s , (6 ) to r e ta ile i’s f o r re s a le , (7 ) to b u y e r s in o th e r c o u n trie s ( d ir e c t e x p o r t ) , a n d (8 ) to c o n s u m e rs a t r e ta il. I t is i n te r e s tin g to o b se rv e t h a t f o r c h e m ic a ls a n d a llie d p r o d u c ts a p p r o x im a te ly a t h i r d o f a ll sa le s a r e to i n d u s t r i a l c o n s u m e rs. T h is c o m p a re s w ith 27.4 p e r c e n t f o r i n d u s t r y as a w h o le. C h e m ic a l in d u s t r y is also one o f th e la rg e s t s u p p lie r s to its own
w h o le sa le b r a n c h e s o r offices w ith a to ta l o f 31.3 p e r c e n t as c o m p a re d w ith 21 p e r c e n t f o r a ll g ro u p s . T h e a v e ra g e p e r c e n ta g e o f a ll i n d u s t r i a l sa les to r e ta ile r s is 19.4 b u t th e p r o p o r ti o n f o r c h e m ic a ls is o n ly 8.7 p e r c e n t.
N E W C O N ST R U C T IO N
W H E N g o v e rn m e n t-fin a n c e d c o n s tru c tio n o f p ro d u c tio n f a c ilitie s f o r c h e m ic a ls a n d ex p lo siv e s is s u p e rim p o s e d o n th e to ta l f o r p r iv a t e i n d u s t r ia l b u ild in g , th e r e c o rd is in d e e d a n a m a z in g one.
A s d r a m a tic a lly sh o w n on th e a c c o m p a n y in g c h a r t, th e to ta l c o n tr a c ts a w a rd e d in 1941 s h o t u p to th e d iz zy h e ig h ts o f $896,205,000. T h a t is a b o u t te n tim e s th e n o r m a l r a t e o f n e w p l a n t c o n s tr u c tio n in th e c h e m ic a l p ro c e ss in d u s tr ie s .
C o n tra c ts f o r p r i v a t e in d u s t r ia l b u ild i n g c o n s tr u c tio n in th e p ro c e ss in d u s t r ie s d r o p p e d off s lig h tly f ro m th e r e c o r d h ig h o f $123,165,000 in 1940 to $115,539,000 l a s t y e a r . T h is d e c lin e , h o w ev er, is less th a n t h a t f o r c o n s tr u c tio n a s a w hole a n d , a s in re c e n t y e a rs , th e p ro c e ss in d u s trie s led a ll o th e rs in f a c to r y e x p a n s io n .
A g a in , a s in r e c e n t y e a r s , th e S o u th h o ld s th e p r e m ie r p o s itio n in c h e m ic a l p l a n t c o n s tru c tio n . I n 1941, f o r p u b lic a n d p r iv a t e ly fin a n c e d c o n s tr u c t io n , th e S o u th le d w ith 29.7 p e r c e n t b u t w as v e r y closely fo llo w ed b y th e a r e a “ W e s t o f th e M is s is s ip p i,” w ith 29.3 a n d th e M id d le w e st, v 't h 25.2 p e r c e n t. F o llo w in g in o r d e r a r e : th e F a r W e s t, th e M id d le A tla n tic S ta te s , a n d N ew E n g
la n d . I n th e to ta l o f $896,000,000 w a s $4.6 m illio n o f p ro ce ss i n d u s t r y c o n s tru c tio n in C a n a d a .
DISTRIBUTION OF CHEMICAL MANUFACTURERS' SALES BY PRIMARY CHANNELS: 1939
C H E M IC A L M A N U F A C T U R E R S ’ T O T A L
D IS TR IB U TED S A L E S
$3,698,090,000
OWN RETAIL STORES
CONSUM ERS
RksZi AT R ET A IL
IN D U S T R IA L U SER S A N D C O N S U M E R S
A T R ETA IL
æ w 7
ISSSAViL'a 1.7%
CHEM ICAL & M ETALLURGICAL EN G IN EER IN G • F E B R U A R Y 11)42 • 2— 7!»
Chem & M et W e ig h te d In d e x of C h em ical Consum ption
C O N F R O N T E D w ith a b n o r m a l d e m a n d s f ro m o u t
sid e c o u n trie s , w ith g r e a tly e x p a n d e d u se o f m a te r i a ls a t hom e, a n d w ith a s te a d ily g r o w in g p r o d u c tio n o f m i l i t a r y goods, c h e m ic a l p l a n t s w e re h a r d p re s s e d l a s t y e a r to m e e t th e d e m a n d s m a d e u p o n th e m . I n 1940, p a r t i c u l a r l y in th e l a t t e r p a r t , c h e m ic a l p r o d u c tio n w a s r e p o r te d to h a v e been o n a f u ll c a p a c ity b asis, y e t th e 1941 vol- u m e o f o u t p u t r a n to m u c h h ig h e r to ta ls .
F r o m th e s t a n d p o in t o f c o n s u m in g in d u s t r ie s th e m o s t im p o r t a n t d e v e lo p m e n t o f th e y e a r w a s f o u n d
TRENDS
in th e c o n tro ls o v e r d is t r ib u t io n w h ich , in th e a llo c a tio n o f m a te r ia ls , d is tin g u is h e d b e tw e e n e s s e n tia l a n d less i m p o r t a n t e n d p r o d u c ts . A s th e s e c o n tro ls a r e g iv e n w id e r a p p l ic a tio n u n d e r th e d u re s s o f m i l i t a r y e x p e d ie n c y , th e effects u p o n c e r ta in m a n u f a c t u r i n g lin e s w ill becom e m o re p r o n o u n c e d . W h ile c h e m ic a ls e n t e r in to p r a c tic a lly e v e r y lin e o f m a n u f a c tu r e a n d m u s t th e r e f o r e , be a ffe c te d so m e w h a t b y c h a n g e d c o n d itio n s , th e u p w a r d t r e n d o f c o n s u m p tio n w ill n o t be ch eck ed b y w h a te v e r i n d u s t r y a d j u s tm e n ts a r e m a d e n e c e s s a ry . M il ita r y r e q u ir e m e n ts a r e m o u n ti n g as n ew p l a n t s com e in to o p e r a tio n . M o re o v e r, th e m a n u f a c t u r i n g lin e s w h ic h a r e th e la r g e s t u s e rs o f c h e m ic a ls a r e t u r n i n g o u t p r o d u c ts w h ic h o r d i n a r i l y com e u n d e r th e c iv ilia n c la ssific a tio n b u t a la r g e p a r t o f th is p r o d u c ti o n n o w fin d s a n o u tle t so m e w h e re in th e m i l i t a r y p r e p a r a tio n s a n d w ill be r a t e d a c c o r d in g ly in th e a llo c a tio n o f r a w m a te ria ls .
T h e C h e m . & M e t. w e ig h te d in d e x f o r c o n s u m p tio n o f c h e m ic a ls r e s ts o n 1935 a s th e b a se p e rio d . I t w a s d e v is e d a s a m e a n s b y w h ic h in d u s t r i a l a c t i v i t y m a y b e e x p re s s e d q u a n t ita tiv e ly in te rm s o f c h e m ic als. I n th e l a s t tw o y e a r s a la rg e n ew c o n s u m in g o u tle t h a s com e in to e x iste n c e — th e m a n u f a c tu r e o f m i l i t a r y ex p lo siv e s. I t h a s n o t b e e n m a d e a c o m p o n e n t o f th e in d e x b e c a u s e d a t a r e g a r d i n g su c h p r o d u c tio n h a v e b e e n h e ld c o n f id e n tia l. L a s t y e a r th e in d e x n u m b e r h a d r is e n b y a p p r o x im a te ly 63 p e r c e n t o v e r th e 1935 fig u re w ith th e g r e a t e r p a r t o f th e in c re a s e r e c o rd e d in th e la s t tw o y e a rs . I t is o b v io u s t h a t th is ris e is to o la r g e to be a c c o u n te d f o r s o le ly on th e g r o u n d o f n o rm a l im p r o v e m e n t in d o m e stic econom y. D e m a n d f o r c h e m ic a ls b e g a n to r is e n o tic e a b ly im m e d ia te ly a f t e r th e o u tb r e a k o f h o s tilitie s a b r o a d a n d h a s b e e n a lm o s t u n b r o k e n ly u p w a r d e v e r sin c e.
T h e effects o f w a r-in flu e n c e s w e re f e l t i n t h i s c o u n
CHEM & MET'S WEIGHTED INDEX FOR CONSUMPTION OF CHEMICALS BASED ON
In d u stry 1929 1930 1931 1932 1933 1934 1935 1936 1937 1938 1939 1940
F e rtilize r... 24 .95 2 6 .1 0 18.53 11.64 17.78 18.91 19.47 22.57 28.93 23.72 25 .1 3 28.80
P u lp and p a p e r... 12.07 11.46 10.71 9 .3 4 10.80 11.15 12.39 14.31 15.96 13.70 16.52 19.98
G la ss ... 10.60 9.31 8 .0 0 6 .0 3 7.71 8.2 1 10.58 12.45 13.61 9 .0 0 12.51 13.15
P e tro leu m ... 10.80 10.11 9 .7 7 8 .9 3 9.3 7 9 .7 4 10.51 11.61 12.87 12.68 13.45 14.08
Pain t, varnish, a n d la c q u e r... 12.84 10.40 8 .6 2 5 .9 6 6 .8 0 8.5 4 10.35 10.77 11.33 9 .4 7 10.66 11.12
Iro n a n d s te e l... 9 .1 3 7 .5 3 5 .5 6 3 .1 0 4 .4 6 5 .4 3 7 .2 0 8 .0 0 9.2 1 5 .8 7 8.21 10.54
H a y o n ... 2 .9 2 3 .0 7 3 .6 5 3 .2 9 5 .2 3 5.0 9 6 .2 9 7 .01 7.9 7 5 .8 2 9 .0 8 11.43
T e x tile s... 7 .0 3 5 .3 8 5 .6 2 5 .13 6 .4 0 5.5 2 6.11 7 .4 4 7 .6 2 6 .1 4 7 .8 9 8 .5 2
Coal p ro d u c ts ... S .55 7 .3 2 5 .2 3 3 .5 8 4 .2 2 4 .8 8 5 .7 4 7 .4 6 9 .6 6 5 .3 7 7 .1 7 8.91
L e a th e r... 3 .7 5 3 .3 2 3 .2 5 3 .11 3 .5 5 3 .6 5 3 .9 5 4 .0 8 4 .1 0 3 .3 5 4 .1 6 3 .9 6
E x plosives... 5.8 9 5 .1 7 3.9 7 2 .7 6 3 .0 4 3 .7 4 3 .6 2 4 .6 0 4.71 3 .8 9 4 .5 3 4.9 1
ltu b b e r ... 2 .5 3 2.0 2 1 .5 8 • 1.57 1.86 2 .1 0 2.1 7 2 .5 8 2 .5 6 1.86 2 .7 9 3 .0 5
P la s tic s ... .78 .82 .64 .78 1.09 1.62 1.97 2 .2 8 1.30 2 .0 5 2.7 7
1 1 1 .91 102.29 85.31 65.0 8 82.0 0 88 .0 5 100.00 114.85 130.81 102.17 124.15 141.25
s o — :> • F E B R U A R Y 10!,?. • CHEM ICAL & M ETALLUR GICAL E N G IN E E R IN G
IN CONSUMPTION
OF CHEMICALS IN INDUSTRY
t r y im m e d ia te ly ; th e d is lo c a tio n o f in te r n a tio n a l t r a d e c e n te re d a t t e n t i o n o n th is c o u n tr y as a f e r tile so u rc e o f s u p p ly f o r r a w m a te r ia ls a n d fin ish e d p r o d u c t s ; r e d u c tio n o r to ta l e lim in a tio n o f f o re ig n c o m p e titiv e p r o d u c ts m a d e i t n e c e s s a ry f o r u s to s te p u p p r o d u c tio n a t h o m e ; a n d in a b ility to se c u re m o n o p o ly c h e m ic a ls f ro m a b r o a d r e s u lte d in th e i n tr o d u c t io n o f n e w d o m e stic p r o d u c tio n . T h e n cam e th e d e fe n s e a n d le n d -le a s e p r o g ra m s w h ic h h a d a d ir e c t b e a r in g u p o n d e m a n d f o r ch e m ic als. U n d e r th i s c o m b in a tio n o f c irc u m s ta n c e s i t w as in e v ita b le t h a t in d u s t r i a l p r o g re s s s h o u ld be r a p id .
U n d e r o u r a ll- o u t w a r effo rt, p r o d u c tio n sc h e d u le s a r e s c a le d o n a le v el f a r above a n y t h in g i n d u s t r y h a s b ee n c a lle d u p o n to a c co m p lish . T h e o v e r-a ll effect 011 c h e m ic a ls w ill be to p u s h p r o d u c tio n a n d c o n s u m p tio n to th e f u lle s t p o ssib le e x te n t. To tr a n s l a t e th e s e a c c o m p lis h m e n ts in to i n d u s t r y to ta ls is n o t so easy. I t is a p p a r e n t t h a t m u n itio n s p la n ts w ill ta k e a h ig h r a n k in g a m o n g co n s u m e rs. O th e r r a t e d e s s e n tia l p r o d u c tio n w ill ta k e p ro g re s s iv e ly l a r g e r a m o u n ts o f m a te r ia ls as p r o d u c tiv e f a c ilitie s a r e m a d e r e a d y . I Io w th e o r d i n a r y c o n s u m in g lin e s w ill f a r e is la r g e ly co n ti n g e n t u p o n th e i r r e la tiv e im p o r ta n c e in th e n e w o r d e r a n d u p o n th e a m o u n t o f r a w m a te r ia ls a v a il
a b le f o r t h e ir u se a f t e r m o re im p o r t a n t n e e d s h a v e bee n sa tisfie d .
T h e p o s itio n o f to p r a n k in g c h e m ic a l-c o n su m in g b r a n c h e s is f a i r l y c le a r. A g r i c u lt u r is ts h a v e been r e q u e s te d to in c re a s e a c re a g e so as to in s u r e a n a d e q u a te s u p p ly o f fo o d stu ffs. S om e f e a r s h a v e b e e n e x p re s s e d r e g a r d in g a p o ssib le s h o r ta g e of s u lp h u r ic a c id f o r a c id u la tin g p h o s p h a te rock.
C h a n g e s in f o r m u la s a n d s u b s t itu tio n o f m a te r i a ls o n th e p a r t o f m ix e rs also m a y be n e c e s s a ry b u t n o s e rio u s d iffic u lty is e x p e c te d in s u p p ly in g f e r tili z e r to t h e f u l l e x te n t o f r e q u ir e m e n ts .v ir h e oil r e f in in g p r o g r a m is im p re ssiv e , ta k in g in a s it
does, th e e re c tio n o f n u m e ro u s p l a n t s f o r p r o d u c tio n o f 100 o c ta n e g a so lin e . S om e d r o p in c iv ilia n u se o f g a s o lin e is to b e e x p e c te d d u e to th e r e g u la tio n s s u r r o u n d i n g t i r e p r o d u c tio n a n d a u t o m o b ile d is t r ib u t io n a n d u se b u t th is w ill be m o re t h a n offset b y th e h u g e m i l i t a r y n ee d s. S te e l m ills w ill b r in g n e w c a p a c ity in to o p e r a tio n th i s y e a r a n d w ill c o n su m e c h e m ic a ls i n a la r g e w a y a l th o u g h a l a r g e r p a r t o f o u t p u t w ill r e q u ir e r e l a tiv e ly less p ic k lin g .
A ll b r a n c h e s o f th e r a y o n i n d u s t r y w e re u n u s u a lly a c tiv e l a s t y e a r a s w as sh o w n b y th e re c o rd o u ttu r n s o f fila m e n t y a r n a n d s ta p le . H o w e v e r, th e s te a d y y e a r ly g r o w th w h ic h h a s c h a r a c te r iz e d th e i n d u s t r y i n r e c e n t y e a r s m a y be i n t e r r u p t e d iii th e c u r r e n t y e a r . P u l p m ills, ir r e s p e c tiv e o f a n y c h a n g e in o u tp u t, m u s t re d u c e t h e i r ta k in g s o f c h lo rin e , a n d in c id e n ta lly m a n y o th e r lin e s o f b u sin e ss w ill be in a s im ila r p o s itio n . T e x tile m a n u f a c tu r e r s e n te re d th e n ew y e a r a t th e sa m e h ig h r a t e m a in ta in e d in th e l a t t e r p a r t o f 1941 a n d w h ile th e silk b r a n c h w ill feel th e loss o f im p o r ts o f th e fiber, th e c o tto n a n d w oolen b r a n c h e s p r o m ise to h o ld p ro d u c tio n a t r e c o r d le v els. P la s tic s sho w ed a s p o tty p i c tu r e l a s t y e a r w ith v e r y s h a r p rise s r e p o r te d f o r som e g r a d e s w h ile o th e rs w e re lim ite d by th e s c a r c it y o f n e c e s s a ry r a w m a te r ia ls . So f a r th e re is n o in d ic a tio n t h a t th is s it u a ti o n w ill im p ro v e in th e im m e d ia te f u t u r e . A c o n s id e ra b le b a c k lo g o f sto c k s h a s b e e n a c c u m u la te d in th e case o f r u b b e r b u t th e r e is so m u c h u n c e r t a i n t y r e g a r d in g f u r t h e r im p o r ta tio n s t h a t th e c o n tro l n o w ex e rc ise d o v e r d is t r ib u t io n w ill b r in g a b o u t a m a rk e d c u r ta ilm e n t in its u s e w ith a c o rr e s p o n d in g d r o p in c a ll f o r r u b b e r ch e m ic a ls. S om e com p e n s a tio n w ill be f o u n d in th e p la n s m a d e f o r la r g e e x p a n s io n o f s y n th e tic p r o d u c tio n b u t th e r e is e v e ry in d ic a tio n t h a t th e r u b b e r i n d u s t r y w ill lo w er its r e q u ir e m e n ts f o r ch em icals.
PRODUCTIVE ACTIVITIES IN PRINCIPAL CONSUMING INDUSTRIES/1929.1941
Jan. Feb. M ar. Apr. M ay
32.0 3 30 .0 8 30 .8 4 31 .5 4 33.12
20.30 20 .2 5 22.10 22.00 22 .9 0
14.40 13.57 14.90 15.30 15.90
14.45 13.21 14.37 14.84 15.34
11.23 10.94 13.05 16.86 18.96
12.80 12.05 13.30 12.72 13.35
12.40 11.63 12.20 11.90 12.30
10.72 10.05 10.50 11.22 11.15
9.6 5 8.71 9.6 3 8 .6 4 9 .1 8
4 .7 0 4 .5 8 4.7 4 4 .6 0 4 .8 5
5.2 6 4.9 1 5.21 4 .6 7 5.5 3
3 .6 9 3.5 1 3 .8 6 4.0 5 4 .1 2
3 .3 8 3 .3 2 3 .5 8 3 .6 2 3 .7 5
155.01 146.81 158.28 161.96 170.45
1941
June Ju ly Aug. Sept. Oct.
29.04 29.8 2 29.9 5 29.07 32 .3 0
22.00 21.7 0 22.3 0 22.4 0 2 2 .6 0
15.55 14.60 15.40 14.85 15.96
15.10 15.78 15.97 15.64 15.76
17.64 15.90 15.79 16.45 16.60
13.04 13.13 13.05 12.67 12.70
11.94 13.36 13.33 13.08 14.70
10.64 11.37 11.08 10.99 12.22
9 .1 6 9.3 3 9.31 9 .2 0 9 .4 5
4 .9 2 5 .0 6 5 .0 4 5 .0 0 5 .2 0
5 .7 6 6 .0 2 6 .0 3 6 .0 0 5 .9 6
4 .6 9 4 .0 5 3.5 8 3 .6 6 3 .9 9
3 .6 0 3 .7 0 3 .7 5 3.7 7 4 .0 4
163.68 163.82 164.58 162.60 171.48
N ov. Dec.
3 2 .4 0 3 3 .1 0 F ertilizer
2 2 .1 3 22 .3 0 P ulp an d p ap er
15.10 14.80 Glass
15.68 16.26 Petroleum
13.43 13.00 P ain t, varnish, an d lacquer
12.71 13.10 Iro n and steel
13.30 14.30 R ayon
10.80 12.25 Textiles
9 .2 6 9 .5 0 Coal pro d u cts
4 .8 0 5 .0 0 L ea th e r
5 .4 7 5 .7 0 Explosives
3 .8 0 3 .8 5 . . . R u b b e r
3 .9 5 4 .1 0 Plastics
162.83 167.16
J
CHEM ICAL & M ETALLURGICAL E N G IN E E R IN G . F E B R U A R Y ld J ß • 2— 81
