The Washington times., 1901-08-06
ENGLAND'S CHEMICAL TRADE.

| While less is said about it In public
| than Of the iron and other trades there Is
| no important branch OF industry in Great
| britain which has suffered so much from
| foreign competition as chemical manufac-
| ture. Not very many years ago Great
britain held an unqusstioned superiority
| IN the manufacture of alkalis and what
| are generally known as heavy chemicals.
In those days the industry was a profit
able or.e and number of manufacturers
engaged in it with much profit To them
selves The later consultations which
brought the trade under the control of a
Few large companies. were made on n
basis of high profits which proved deceiy-
ing in several cases. While some con-
Germs, which are working on the latest
processes, are paying good dividends.
others present balance sheets which are
rather dismal reading for the stockhold-
ers One of the companies. 1t may be
mentioned. in its hurry to control the
trade, loaded itself at high prices with
plants now obsolete or nearly so-in the
usual combination style
The chief cause of the decline of the
chemical trade is that several OF Great
Britain's old customers, especially Ger
many, the United States, and Russia, are
now largely supplying their own wants.
while Germany also exports largely. and
the United States will shortly be in
position to do so. The worlds consump
ton of alkalies and other chemicals is in
creasing largely, but the British exports
are decreasing. A natural consequence is
heavy fall in prices, so that large profits
are no longer to be expected. Moreover,
costs of manufacture have increased,
chiefly owing to the higher price of fuel.
This Is especially the case in the electro
lytic processes. in which the production
of electric power is the chief element Of
cost. In this respect the German makers
have very little advantage over the Brit
ish; but they have attained large part
or their progress by very close attention
to details and constant Improvement of
processes In the United States we have
the great advantage of cheap power.
whether water or steam. and are likely
to have cheap coal for a long time to
come. The British manufacturers. with
good reason, look upon the Americans as
their most dangerous rivals for the fu-
ture.
Some temporary expedients are being
tried to help the British trade, though
they are not likely to be of permanent
benefit. Chief among these is further
consolidation. Thus one authority on the
trade says: The rumors of a great chem
ical combine which were current some
time ago have not yet taken any definite
form, though 1t must be confessed that
the large corporations have been excep-
1onally energetic of late in making il diff
ficuit for outsiders to interfere with their
interests. The small alkaI manufacturers
are being absorbed, and the middleman,
who is in small way of business. buying
his alkali either to use himself or to sell
again. is being subjected to all sorts of
inquisitive questions as To the destination
of his purchases. The signs and portentS
of the times are certainly all against the
middleman continuing in state of pros
perity."
No consolidation or combination of man.
ufacturers can maintain prices, however.
in the face of rapidly increasing foreign
production. 1t is quite possible that in a
few years American and German makers
may not only supply their own markets
but export to Great Britain itself 1t is
only by constant improvements and by
lowering the cost of production-if that /!
is possbile-that British manufacturers |
can hold their own.