The Penn's Grove record., 1919-08-08
HOW GERMANY DOMINATED THE
AMERICAN CHEMICAL AND
DYESTUFF INDUSTRY
(From the Alien Property Custodian's
Report)

(From the Alien Property Custodian's
Report)
The great field of chemical industry
presented, at the outset, perhaps the
most difficult problem which the Alien
Property Custodian was expected to
solve. 1t was, OF had been until i'm
~portations ceased, saturated through
and through with German influence.
IN regard to no branch of human en-
deavor was the myth of German in
vincibility more firmly fixed in the
public mind. The country was flooded
with German chemists; and those who
were not German by origin, were
mostly German, directly or indirectly
by training. A vast proportion of the
persons engaged in the business bore
German names. Connections more or
less close between American and Ger
man houses We're frequent and obvi-
Gus. There vas unquestionably a
considerable German interest in such
manufacturing as was being carried
on. In view Of the well-known and
uniform policy of the great German
government-aided combinations to en-
bark in foreign manufacture only
When Germany was not feasible, this
interest seemed unlikely to be large;
but, unless it could be discovered and
rooted out, no substantial Americana
cation of the industry was possible.
The German chemical industry, which
had so thoroughly penetrated and. per-
meated our own, was gigantic, per-
haps the strongest, and certainly the
most remunerative of all Teutonic in
dustries. The task of identifying
and taking over it's property in the
United States was thus a direct at
tack upon a most formidable oppon-
ent; while the information on which
the work had to be based, had to be
derived, to an exceptional extent,
from men hostile from birth or ira
dition.
In order to give a fair understand
ing of the situation, it is necessary to
sketch briefly the history Of the Ger
raen chemical industry. From about
the middle of the nineteenth century,
the practical application of chemical
science began to occupy the attention
Of a constantly increasing number of
the best scientific and industrial minds
of Germany. A combination of natural
advantages and national Characters
ties led to rapid advance. The indus
trial district in which necessary ma
terials and other facilities were found
or developed was exceptionally com
pact. Distances We're short and trans
psrtation easy. Labor was cheap, do
Gle, and stable. On the other hand,
the national habit of mind was pecu-
liar for the interIninable tasks pre-
---AaI ~ c,7,L 1.0rao7 .ol -, +lo rr-oy Of
eXhausting the immensely numerous
possible combinations available within
a particular field. From the first,
scientific attainment, and particularly
accomplishment in the field of re
search, appealed strongly to the pub
lie mind. Men of science, and particu-
larry research workers, were more
highly regarded than in other coun-
tries. This tendency was strongly
fostared by the Government, which,
by comforting honors and titles, did
everything possible to exalt the posi-
ton of the successful scientist.
AS a consequence of these condi-
tons, the universities Were at an early
date provided with the most elaborate
and advanced equipment for research
work, and attracted to themselves an
extraordinary proportion of the ablest
young men of the nation. They ac-
eording proceeded to turn out a con
stantly increasing number of highly
trained technical men, whose services
were available to the rising chemical
industry. The number of these men
was such that the inevitable competi-
ton between them for places made
the average salaries exceedingly small.
Highly skilled service was, therefore,
available to the German chemical
manufacturer at an extraordinarily
low cost. In this respect he had a
marked advantage I'VE the manufac-
turers of any and every other country
in the world.
These advantages were made use of
to an extent nowhere else approached,
because from a comparatively early
date the Importance Of research work
to practical industry vas firmly grasp
ed by both the industrial and govern
mental ruling classes. The alliance
of the manufacturer and the university
professor became constantly closer and
more complete. To meet the moods
pointed out by the industrial leaders,
armies of plodding, but nevertheless
Il, chemists c0mpIelc~ ,.d~ods
OF thousands of separate researches.
The result of these kept the German
chemical manufacturers constantly in
the van-always somewhat ahead of
their competitors in other countries
in the way of new processes and pro-
ducts.
While all that has been said applies
in a measure to every form of chemi-
cal activity, the German advantages
were naturally less in the manufac-
tire of the heavy chemicals than in
the more difficult and complicated
processes involved in other forms q
the industry. Chemicals which are
consumed in great quantities. like sui.
phuric acid or soda ash, are produced
at prices so low that costs of trans
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