The Birmingham age-herald., 1919-01-19
GRAPHITE INDUSTRY
 OF STATE IN VERY
 SERIOUS POSITION
Maximum Capacity Request ed By Government During the War Has Suddenly
 Ceased.

SCdScu.
 The Graphite Producers association of Alabama is now calling attention to the serious situation confronting this new and important industry of the state In 1916 there was total of only s15o0oo invested in this industry in Alabama. At present there is over B, 800 GOO invested due to government requests to speed produc- tion to a maximum during the war.
 With the armistice, however, the de- mand suddenly ceased and as a result it is stated that 95 per cent of the pro- ducing capacity of the state is idle. The following statement has been issued set ting forth the situation
 There are two distinct sides to this matter While the United States was at war, the government, and government agencies and bureaus, made the strongest appeals to the patriotism of the graphite producers of Alabama to increase the production of graphite to the limit, not only by speeding up production in eN isting mills, but by development of new ore bodies, and the erection of new mills.
 MINERAL CONTROL ACT
 Pending the passage of the mineral control act, finally passed as bill No. S-4SS5, the Alabama graphite producers were assured that the increased produc- tion to which the government was so strongly urging them, would be amply protected, and protected to the extent that investments could be amortized in three to five years. With view to sup me a and still DSnd- ing the passage of the above protective act, the government actually did place an embargo against the importation or all foreign graphte-except Canadlah' which, for some reason, has always been interpreted at Washington as domestic and actually did issue an order compei- ling the American crucible makers to use not less than 20 per cent of domestic flake in their crucible mixtures. Even before the signing of the arnistice, how ever, these efforts did not afford the pro- ducers the necessary protection. and. as d matter of fact, did not prevent lower prices for Alabama graphite, although the cost of production had been con stantly increasing. Finally bill NO. o- 4SS5 was passed, but, strange to say, was not signed by the President until Octo Der 5, 1918, shortly before the signing of the armstice. After another delay Secretary Lane was appointed admins trator of the fund appropriated under this billion November II, 1918, the very day the armistice was signed, but while MT. Lane frankly admits the obligation of the government towards the Alabama graphite producers, now that the war Is over he takes the view that the bill can- not be applied, without further leglsla- tion. In the meantime the Alabama gra- phite producers have no adequate pro- lection for the stocks of manufactured graphite they have on hand, and pro- duced at high cost-nor for the invest ment and effort urged by their gov- ernment at war.
 STATEMENTS AT PAR "The producers have been asked why they did not secure signed contracts from the government, which would have amply protected them. The reason is that they took the statements of the government bureaus at par. and did not stop to argue the point. They simply took their coats off and went after the production of gra- phite-and did their best to meet the emergency
 Under the bill No S-4sS5. it will be seen that the matter of increased pro- duction of graphite was placed entirely in the hands of the President, and in this bill producers are put on notice that not only might their operating plants be talk en over and operated by the government, but idle plants could be started up, and even new development started by the government unless the producers re- sponded Loyalty to the call. They did re- spond however, to their utmost, with the result that they produced more graphite than they could market, and although there was a tight embargo against all foreign graphite. the stocks of that pro- diminish tO any appreciable extent. The crome and man. ganese producers of the United States are practically in the same position as the graphite producers, and the former have openly made the unchalleneged charge that foreign manganese and chrome were allowed to come into this country in the face of the embargo, and they claim to have proof for their assertions. The Alabama graphite producers have no such proof in connection with gra- phite, and do not make any such asser- tions, but the results, however, are, as above stated.
 "The terms of the bill Mo- S-4sS5 clearly intended to protect the producers o1 graphite against loss for period of tive years after the close of the war, and the producers now claim that the embargo against foreign graphite and the ordei compelling the American crucible makers to use not less than 20 per cent of do- nestle flake in their mixtures, both oi which still obtain, be continued for a period of two years after peace Is de- clared.. This would also be a benefit te the American crucible makers, as the results of the recent government tests show that crucible made from 100 peI cent Alabama flake is superior to cru cible made from 100 per cent highes, grade Ceylon product"