The daily worker. [volume] (Chicago, Ill.) 1924-1958, 1927-10-22
CHEMICAL TRUSTS
By ROBERT MCDONALD.
The Meaning of the New European
Merger.

NEWS has just come from Paris that
IN the vast German Chemical Trust
has made an agreement with the
French, and only recently came to an
agreement with the new English trust,
Imperial Chemical Industries, Ltd.
Satisfactory accord on the question
of home markets has been reached"
and "they will pool all their available
resources to gain the world trade"
This. means practically a united front
in this industry of capitalist Europe
against the United States, for other
than Switzerland and Italy, which are
expected to be included before long, no
other countries have large scale chem
ical industries.
What is the driving force behind
this great international trust? Prof
its? Of course. But that is far from
all. During the imperialist war the
chemical industries of all countries
expanded tremendously, particularly
4 those Of France and the U. S. A., and
TO a considerable degree, that of Eng
land. Chemistry touches industry at
"a thousand different points, and when
industry is accelerated to the utmost
as in war, chemistry expands accord
ingly. But during the war two things
happened: first of all, the allies dis
covered that they were dependent upon
German for dyes, drugs and medicines
and a host of important products; and
second, there developed. that great
revolution in modern warfare
3 POISON GAS. These two factors
spurred the previously backward coun-
tries (France, England, U. S. Az to
tremendous efforts after the war, to
attain chemical independence. This
naturally meant that the worlds
equipment for chemical manufacture
has been expanded far in excess of
n peacetime needs, and hence the bitter
struggle for markets.
American industrialists and the
kwide-awake young men in Mr.. Hoov-
ssr's department of commerce have
been devoting considerable attention
TO chemistry recently. Toward the end
4 of September, DR.. Julius Klein, di-
rector of the department of foreign
I and domestic commerce, addressed the
members of the chamber of commerce
in Neutrality-suspicious. of the tremen-
dous du Pont interests. He said, Gas
a. producer of practically one-half of
the worlds chemical requirements, it
is felt that in exporting but z or 8
per cent of our production we are
n overlooking the possibilities inherent
in developing foreign markets for
these products. Our principal compe-
titors-Germany, England and France
export from rs to 33 per cent of
their production
In New York, at the Chemical In
II dustries Banquet on September 28th,
II Mr.. E. M Allen, president of the
Mathieson Alkali Works-important
manufacturers of heavy chemicals
pointed out plainly the disadvantages
and handicaps of the Sherman ANTI
Il Trust Law to American industry under
modern conditions, declaring that it
is unwieldy and the best weapon in
the hands of the foreign cartels in
sitting American competitors in the
I sale of chemicals throughout the
world. Continuing, Mr.. Allen warned
the American industry of the i'm
b pending clash with the European car
tells. At the same banquet, Chas.
+ C. Concannon, chief of the chemical
f division, department of commerce, who
has just returned from tour of
European chemical centers, was very
| much in accord with Mr.. Aliens re-
marks concerning foreign competi-
ton.
The stock market seems to believe
that some kind of American merger
or agreement is to take place, for on
the day that du Points bought 114,000
shares of U. S. Steel, prices of stocks
on the exchange rose to the highest
level in its history! On the other
hand, du Points acquired an important
Z interest in the General Motors octo-
pus in 1920, and have directed its
financing ever since. The Allied
Il OuSIulStil anu 1CySy cltOJilSL iiuSO SOti-
Germ, also holds 100000 shares of U,
S. Steel. One great American trust
vas already formed an alliance with
AheN German trust. Early in August,
Mr.. Walter c. TeagIe of the Standard
EOH Company of New Jersey signed
an agre9ment with the German chem
3 ical trusN, concerning the exploitation
Of the BSrgius patents for the pro-
s duction of oil by the liquefaction of
y eoal. Thisl is destined to be of ire
! rIendous Importance in the future.
\ Thus imperialism takes on newer
[and higher forms. At present it is
A the imperihlist nations of western
Europe fighting against the U. S. A.
Tomorrow they may all be united in
the alliance, begun at Locarno against
the U. s. S. R., engaged in a war Tin