The San Francisco call., 1906-11-25

convention of the Society of
German Chemical Industries held re-
Gently at Nuremberg, is transmitted by
Consul William C. Teichmann of Eiben-
stock. who was formerly a chemist con-
nected with one of the largest manu-
featuring establishments in the United
States. He states in relation to this
report:
The society's report gives a correct
view of the situation. Possibly the
liberation of denatured alcohol from
taxation may help our home chemical
industry, for it plays an important part
in chemical manufacturing processes.
particularly in the organic line; but
the labor problem will still give Ger
many a great lead, not to mention its
wonderful organization of detail fea-
lures of chemical manufacturing
which in the long run proves profitable
and enables the lowering of prices
where competition still exists and COM
binations in some branches already In
ternational do not, as yet, monopolize
the market price.
Figures were presented at the con-
vention showing for the year 1905 an
increase over 1904 in the German
chemical manufacturing business, both
for the import of raw materials and
the export of manufactured products,
amounting to IA per cent. 1t is true
that the prospective enforcement of the
new tariff on March 1, 1906, added. con-
siderably to this increase, but statistics
for the first six months of 1906 now
show figures almost as high as those
of the corresponding months in 1905.
The annual report Of the society, in
reviewing the conditions of this pros
porous business, establishes the fact
that the average yearly wages paid the
ordinary laborer in the chemical works
during 1905 amounted to $245, an in
crease over 1904, when the average had
been s243. 1t will be seem that the
advantage of such low wages enables
Germany to produce at a cost small
enough. so far as the labor part of
chemical manufacturing is concerned,
to give it competitive power in the
American market of very formidable
character.
This factor added to the highly de-
veloped practical utilization of material
formerly thrown away as waste by
products, but now rendered useful by
improved manufacturing processes and
the quick application of the discoveries
of chemical research for technical and
commercial purposes, explains the SUI
perfority of Germany as a seller of
chemicals and drugs in the markets of
the world. the United States alone buy
worth every year. The number of
chemical plants increased from 1904 in
1904 to s27S in 1905. The wages paid
to the regular laborers amounted in
1904 to $44,03O,000, and in 1905 to $47,-
005,000, the number of such laborers
being 179,S00 in 1904 and 1SS,400 in
1905. The profits achieved by this great
branch of German manufacturing dur
ing that year are calculated from the
balances of 142 stock companies with
a paid UP capital of 109.4S0, 900,
mortgages and securities, represent
ing S19,992.000, and the reserve capital
figuring s33,796.000 The best record
year, 1899. is taken as a basis for the
profit estimation and given the figure
100. The subsequent years by COM
parison show the following results ac-
cordingly: 1899. 100. 1900, s1.2; 1901,
80; 1902, S7.2;; 1903. $685. 1904, ss.7: 1905.
1862.
These figures demonstrate the large
gains recorded in 1905. The branch
representing the manufacture, Of coll
ors and dyes from coal tar shows the
greatest increase, followed closely by
the powder and explosives manufac-
lures. which were much benefited by
the Russo-Japanese war. The indus
tries of artificial fertilizers, alkalies.
mineral acids and matches also made
good gains The least increase Is
noted for the industries of pharma-
ceutical, Photographic and other tech
nical preparations, because competi-
tion was so strong In these branches
as to prevent a rise in prices corre-
spending to the rise In raw materials
and labor
In its final conclusions the report