The Washington herald., 1917-06-11
HOLLAND LETTER
The Biggest Daily
Financial News Feature Of
the cOunhy'' Best Newspapers.


On or near the coast Of New Guinea,
lea, are abundant deposits OF the metal
| from which metallic aluminium Is best
and most economically made. These
rich deposits have recently passed
into the possession Of the American
Aluminium Company, whose chief plant
River, As soon as possible. an ade-
quate plant for refining the metal 80
that It will produce substantially pure
metallic aluminium, will be established
near Baltimore. When this IL done
there will be constant and great ship
to this plant. Its output will greatly
add TO the aggregate output OF alum.
mum, and the transaction as q whole
reflects the foresight and energy Of all
men OF large AFFAIRS who are now pre-
pairing to meet the vast demands upon
Industry that will surely be m de aft
er the war with Germany "a ended,
Curiously enough there has Leen nc
announcement, so far as Is known, OF
the fact that the aluminium company
has secured this valuable property in
South America, and is about to estab-
lish a refining plant near Baltimore.
When this plant Is In operation, the
company will have three great plants,
whose sole product is metallic alumni
mum. Later, there will be a fourth
plant. The chief one Is at Niagara
Falls and is located there because
cheaper hydro-electric power can be
obtained at that point than anywhere
else.
Power II Chief Cost.
Long experience has taught the
manufacturer of metallic aluminium
that the chief item of expense In
producing the commodity Is the
3 n hNdrn-RlEftrip T.nnn
! shown that it entails about one horse
power in hydro-electrlc energy and
one carbon electrode to produce one
ton OF metallic aluminium. As the
Niagara Falls power 10 capable of de.
F, llVering the equivalent OF forty thou.
sand horse power, the aggregate rep.
resents large product OF aluminium
at that plant.
Science and capital have, in com.
bination, provided facilities and sup.
plies, whereby the aluminium plant
can manufacture metallic aluminium
told the men Of capital that there had
been dis overed in Arkansas large de.
posits of bauxite, a mineral from
which aluminium Is best obtained. The
company secured these properties, but
| found II to commercial advtanage tc
transport the mineral to East St
Louis, there to be refined.
French capital and men Of science
Of France have been very successful
with regard to efficiency and cheap.
ness of product, and, until the wal
began, commanded considerable
part OF the market for metallic
aluminium. In Southern France are
be mined at very low cost. How
low Is illustrated by an experience
which the American Aluminium Com.
pany was compelled to confront a few
years ago. There happened to come
z depression in the market for the
expedient to the French manu-
factgrers to approach the American
market. asking for the metallic
aluminium price far below the pre-
yailing price for the commodity
They placed the commodity in the
ton, whereas the American company
5000
The French manufacturers, having
an eye to cheapness in the produc-
tion Of metallic aluminium, caused in
EestlGation TO be made in the United
States with the intent to learn
whether a hydro-electric plant could
be established that would deliver the
energy needed at a much lower cost
than similar energy necessarily cost
In France. After careful search, the
OI lNt COM
pany discovered in North Carolina an
opportunity which was reported to be
ideal. A hydro-electric plant could be
established there, they reported, at
low initial cost, which would be
capable of delivering energy at a
much less cost than that which the
use OF the Niagara Falls plant en-
tailed.
Report Was Accepted.
The report was accepted and French
capital in large amounts was ready IL
make the investment; in fact, pre-
liminary work was done, when OF a
sudden the American company made a
proposition involving the purchase of
the property and privileges at cost
OF 100000 This proposition was ac-
cepted so that in addition to its
other properties. the American COM
pany Is in possession Of hydro-electric
when FULLY utilized, should serve great
ly to increase the output. Far-see-
ing business men. believe that the
uses to which metallic aluminium may
be put prOtitably are many, and that
most of them have not as yet been
adopted. In the laboratories and other
places OF research, the men CT science
are now tusily occupied with the
study of the proposition, how to in
crease the cOndUCtivity of aluminium
so that It may be employed to CONNER,
clal advantage in place of copper. OF
80 that it may be used to supplement
cooper in the transmission of power.
BY reaeson of certain impurities in
even the best of refined metallic
aluminium, the metal does not possess
the necessary conductivity il It is tc
be brought in competition with cop.
per for the transmission of power.
The, resources possessed by the
American Aluminium Company. both
for obtaining supplies of the mineral
which c. tain the largest amount OF
alun?ina, and also for manufacturing
the commercial product, are so great
that In all probability no capital car
De found at present for the purpose oi
investing in any new plant or plants
Tor the output of metallic aluminium
Yet the eXigencies of the war in F,u.
rope, should 1t be continued two OF
three years longer. and the work OF
the men of science, may lead to very
much greater demand for aluminium,
for various commercial purposes. Ir
that event, new capital will be found
for the manufacture of II. So rich arc
the deposits Of the mineral controlled
oy the American company, from which
comes the larger part Of the alumina
which. when refined, becomes metal.
lie aluminum-that a very seriou.
question has already arisen and is vel
to be solved before capital IA OBJ.
tained for the development Of a great
potash-producing industry in the
United Sta'es. What these embar.
rassments are will be explained in ar
article which follows the publication
OF this ore. 4-GLLAND.