The New York herald. [volume] (New York, N.Y.) 1920-1924, 1920-12-08
PERIL TO AMERICAN
DYE INDUSTRY SEEN
Manufacturers Hear Germans
Plan Aggressive Trade
Campaign.
BILL PENDING IN SENATE
LOngwOrth Measure Prohibits
Importation for Three Years
to Protect Makers.
BILL PENDING IN SENATE

American dye manufacturers and
members of the various chemical organ
izations expressed interest yesterday in
cabled reports from Berlin that the big
German dye concerns were providing
themselves with new capital and plan
ming an aggressive trade campaign with
the object of once more dominating the
worlds dye markets 1t was the con-
sensus that the American dye industry
need have nothing to fear from German
competition II the Senate passes the
Longworth bill prohibiting the importa-
ton of any dye which Is manufactured
here. The measure has already gone
through the House and Is expected to
become a law during the present session
of Congress.
THE only thing at present that pre-
vents the wiping out Of the local manu-
facturers," said w. l.. Keohan of the
Chemical Foundation yesterday SIS the
power of the War Trade Board under
the trading with the enemy act OF con-
trolling the Importation of all dyes from
Germany. Under this control only such
dyes as are not produced in this country,
but are wanted by the consumers. are
allowed to come in, and the in1portations
are limited to six months supply for
each consumer
Mr.. Keohan said that as soon as
peace treaty is ratified by Congress. or
the war declared at an end by the Presi-
dent, the control Of the War Trade
Board ends and the dye industry will
be unprotected from the competition of
the German manufacturers.
Despite reports from abroad" SAID
Mr.. Keohan, 1.-The Germans have large
stocks of dyes on hand and are freely
offering them. Because OF the rate or
exchange in German marks dyes which
1t costs our people 50 to produce can be
manufactured and sold by the Germans
for hak that sum. The small duty i'm
posed under the tariff law enacted early
In the first Wilson administration is en-
tirely insufficient to affect the situation.
There are so many qualifications of the
dye industry that II is difficult to hit
upon tariff law that would effectually
protect our manufact
The American dye industry, which
was made up of a handful of manufac-
turers with an investment of perhaps
$50, 000, 900 before the war. now includes
approximately 100 manufacturing con-
GERMS with combined capital of be-
tween $400,000.000 and 100000, 900.
The Chemical Foundation controls the
German dye patents seized by the Gov
eminent at the beginning of the war,
and it issues licenses to manufacture
under them to all citizens who apply,
thus preventing any one from obtaining
monopoly under the patents.
It is the general belief that, color for
color, American dyes are now fully equal
to the best German products. IL not
bit better Up 10 six months ago none
of the so-called wat" colors were made
here. but practically all of them are
being ma mi IA ctured at Dresent
The Longworth bill would prohibit the
importation OF German dyes for three
years. by which time 1t Is believed that
the American manufacturers will be es-
tablished upon so firm basis that they
will have nothing to fear from foreign
competition. provided they are protected
by an adequate tariff.