The sun. [volume] (New York [N.Y.]) 1916-1920, 1918-11-10
TRADE DANGER IN
GERMAN INDUSTRY
Peace on Wilson'S Principles
Means Keen Competition,
Say Manufacturers.
EXCEL IN DYE MAKING
Teutons Prepared to Sell
Products at Cost Through
Aid of State.

If peace is made on President VIII
sons principles 1t is an interesting
question, according to manufacturers
in allied countries, whether German
competition in special lines can be met
successfully with the present scien-
tlflc organization Of these Industries
In the chemical and dye industries
manufacturers expect to see some de-
preston, and they seem to DOUBT
whether the present effective scientinc
management will pass through the
crisis without some interruption. War
conditions in these Industries are no
index to conditions after the war. No
body knows this better than the ex-
pert engaged in the making OF dyes
and chemicals. He does not take the
prevailing view that It Is merely
question of technical skill In which II
is possible to beat the German on MS
own ground. There exist other ques-
tions which are too often laid aside Tor
future solution.
Chemists do not deceive themselves
as to the astonishing amount OF
strength in the Germany dye industry.
After the war Germany will mainly
rely upon dyestuffs as articles OF COM
merce destined to recover place IN the
worlds markets and to compensate
her trade losses in other directions
The chief factor in this strength Is
the simple truth that German factories
| can turn out dyes and other chemicals
cheaper than any other concerns. Inc
cost of making these products in other
countries, notably England, was clearly
brought out in trade journals, which
quote the preparations made by the
different Governments to meet the ex-
pense. In England, for example, 1t
| seems necessary TO feed the Industry
| out of State money. The sum re-
quired, according to Sir Watson
| Rutherford, is forty million pounds.
This is regarded by business men OF
all lines as a heavy capitalization to
produce the two and quarter millions
of dyestuffs imported prior to the war.
The question suggests itself, II the
gross output is only SIS per cent. on
the capital employed, what is the net
| II
tain how much private capital will be
invested along with the public money
but it is clear that the returns are
destined to be small until many years
have passed.
| Germans to Sell Mt Cost.
This is the feature OF the dye in
dustry in allied countries which is
attracting most attention from the
Germans. They assert in their latest
trade journals that British, French
and Italian manufac turers will he
obliged to offer their dyes at high
prices, whereas they. with the State
fed companies. can sell at cost price
or even less. Moreover the Germans
are prepared TO offer other products
of chemical industry on the same
terms, by which they hope to under
sell all competitors. There is Ger.
ta.nly danger that they will make
good their boast, because their fac
tories and works have been organized
on this basis for long time.
In recent issues of the German
trade paper the Journal Of Applied
Chemistry the present position of the
dye industries in various countries IL
reviewed In the confident fashion
characteristic of the Teuton, yet there
are some points which manufacturers
would do we'll to consider. The frs
has reference to the textile industry
The person most interested in the dye
stuff problem is probably the textil,
manufacturer. and it Is in this indus
| tv1- hat hn 20 tn
duce the entering wedge by means o
new dyes which they have made 10y
what appear TO be new methods. II
the chemistry of dyes there is always
the possibility that among the new
products there may be some of especia
! value. At first many textile manu-
, faCturers placed considerable conf
dence in optimistic reports in tn,
newspapers. and We're lulled into
sense of security in the belief that al
dyestuffs used in Entente industr,
would be manufactured in England ant
America by processes much in advance
: OF the antiquated German methods.
/ Untried Methods a Mistake.
; Some of these experiments hav
: been tried, such, for instance, as tn
3 extraction OF a red dyestuff from tn
: cranberry, the belief being apparent
that vegetable coloring matters Nigh
in some cases take the place of syn
thetic dyes. The result of this an
other eXpedients showed that in tn
present critical time it is n mistake I
> endeavor to prepare dyestuffs by ney
and untried methods, The making c
the finished and useful dyes is not /
tho Judgment of chemists a Difficult
and complicated problem provided tn
proper so-called intermediate material
are available. The crux OF the prob
lem lies in the economical productio
, OF these intermediates, the by-prod
a ucts of the gas and coke oven tar
a But all these products are at very at
: normal prices owing to the deman
n for high explosives.
a There is a disagreeable modicum {
8 truth in the German contention tina
r these prices must come down befor
the dye industry of the Allies can h
organized on a good working basil
The time factor in starting manufac
ture Is an important one-at the pres
I ent moment 1t is more important tina
n the efficiency factor. 1t is upon III
y prospect that the Germans are pre-
It pairing, believing that any scheme fc
d the establishment of an America
n dyestuff industry will be inadequat
o II 1t does not first Of all insure IL