Evening star., 1919-03-12
EXPLAINS GERMAN
CONTROL OF DYES
A. M. Palmer Discusses the
Chemical Industry, Exposing
Myth of un-fnWncibiIity.
HOW MONOPOLY GREW UP

The chapter on the chemical indus
try in the report of A. Mitchell Pal
mer. alien property custodian, has
been made public. It deals with the
history of the German chemical in
dIstry, and states that "in regard to
no branch of human endeavor was the
nyth of German invincibility more
firmly fixed in the public mind. 1t
tells of the formation of an American
company so organized as to eliminate
dependence on Germany.
The country was flooded with Ger
nan chemists. says the report, and
those who were not German by origin
we're mostly German by training. The
IherSical industry therefore presented
at the outset perhaps the most diff
cult problem which the custodian was
expected TO solve, says Mr.. Palmer's s
report.
From about the middle of the nine
teenth century the practical appllca-
ton of chemical science occupied the
attention of an increasing number OF
the best scientific and industrial minds
of Germany This trend was fostered
by the German government. Highly
skilled service was available to the
German chemical manufacturer at low
cost, giving him the advantage over
the manufacturers of every other
country in the world.
Result of alliance"
Thus the alliance of the manufac-
turer and the university professor be-
came close, and the manufacturers
forged ahead of their competitors in
other countries, except in the manu-
facture of heavy, cheaper chemicals
where the cost of transportation was
a controlling factor.
Germany had attained practically a
world monopoly in the application of
organic chemistry to the manufacture
of dyestuffs and medictnalS. so, from
an early period, the dyeStun industry
became concentrated in few impor-
tant companies The result Oh ali thls
was overproduction, leading to the
establishment of a large export trade.
Thus German products appeared all
over the world at prices home manu-
facturers could not meet and nome
competition was stified. The world
monopoly resulted.
The patent laws of other countries
aided the great German manufac-
tories. In the United States alone
they took out patents by the thou
sands They were held to prevent
formation of an American dye in
dustry and to make impossible i'm
portation from other countries. Dyers
were subsidized, the dyers controlled
the situation, and organized propa-
ganda discouraged American at
tempts, the report says.
American Industry Small.
Up to August, 1914. the American
industry in dyestuffs and medicines
consisted of little more than series
Of rather small assembling plants
Five concerns, comprising the Ameri-
can industry. operating ON German
intermediates, were at the mercy OF
German producers German dyes were
Indispensable to textile manufactur,
ers. The Germans had a monopoly OF
potash, Offset by American posses
sion Of phosphater. The German
ownership in phosphate companies
has for the most part been taken
over. according TO the custodian
facture existed. The most important
factor in this field, Merck and Com
pany, a branch of the Merck of
Darmstadt, has been taken over. The
business of other American concerns
involved little manufacture. and the
materials used were largely imported.
There was little, II any, German in
terest in this branch of the industry.
except among small brokers and
dealers, the report says.
The dye industry, therefore, inter-
ested the custodian most. The vital
character of the industry was not due
to it's financial importance, since the
consumption of dyes at the time of
the outbreak Of the war did not ex-
ceed $25. .000.o 900 q year in cost to con-
suming industries, nor to the fact
that these dyes were essential to in
dustries producing s2.590,090,000 of
goods annually. but It's vital character
was due most of all to the fact that
the technical skill and equipment
provided by a successful dye industry
furnished the means to which every
nation must look for advantages in
the application of chemical science
to practical undertakings.
Conditions in 1914.
At the opening of 1914 nine-tenths
of the dyes used in American indus
tries were. supplied by German houses.
The outbreak of the war cut off the
importation of dyes from Germany.
Immediately there sprang up a num-
ber OF American companies to manu-
facture dyes. They averted the
| threatened dye famine The dyes
| produced compared fayorabIy with
German dyes. but the fast alizarin
and anthracene colors were not pro-
duced. nor was the synthetic indigo,
| the consumption of which is larger
than any other dye. At the time Mr..