Evening star., 1942-04-26
Soap Makers Aided
By Rising Demand
For GIyeerin
By-Products 10 Boost
fornines; Domestic
Oils TO Be Used
sssrisi Dispatch 70 TIE star.

domestic production Of veget able oil
and oil seeds viii make up for IN
decline In imports Of these items
and the soap industry will be able 4
hold It's own Tith neR war mar.
ket for its by-product. glycerin
E.andsrd & Poor Corp. points out
In surrey Of the soap and Yege-
table oil industries released thI'
week.
Despite the sharp decline in I'M
ports, supplies of fats and oils are
expected TO be adequate 70 meet do
mestic requirements this year.
The necessity Of offsetting reduced
imports. combined with the high
rate OF domestic consumption and
rising leaSe-lend exports, will re-
quire greater domestic output Of
many oils and will doubtless involve
some depletion Of the stable in
ventories of fats and oils on hand
az the close Of 1941.
Production Encouraged.
The Department Of Agriculture
has been encouraging increased
farm production of the materials
from which fats and oils are de-
rived. The cotton crop (and the
new supply Of cottonseedJ is un-
likely 70 exceed that of last year,
but prospective paintings, as COM
piled by the Department OF Agri-
culture. indicate l942 acreage in
creases Of 20 per cent for faxseed,
4l per cent for soybeans and 66 per
cent for peanuts.
Hog slaughterings this year may
be nearly is per cent above 194I
levels, and the production of lard
should rise correspondingly.
Imports Of coconut oil and copra
will drop sharply this year, even
though Congress is expected to re-
move the processing tax differential
of 2 cents pound by which i'm
ports Of these products from sources
other than the Philippines have
been penelized. Coconut oil has
quick-lathering properties not pos
seSsed by other oils except palm
kernel oil and babaSsu oil.
Subject to the amount of shipping
space available. there is a chance
OF larger imports of babaSsu oil from
South America, palm kernel oil from
West Africa and coconut oil and
copra from Ceylon, East Africa and
the eastern South Sea Islands, but
supplies from these sources will off
set only a part of the loss of Phil
ippine shipments.
Proportion Cut Down.
Soap manufacturers, consequent
", are being compelled to cut down
the proportion of quick -lathering
oils used. The quality of the soap
produced may suffer, but produc-
ton and sales should hold at high
levels
Similarly, the virtual elimination
OF imports of tung and perilla oils
from the Orient can be only partly
offset by increased receipts of oiti-
cica oil from South America. Paint
manufacturers will be compelled to
make up for the lack of quick dry
ing oils by the use of additional lin
seed oil. Thus, while no decline in
production and sales of drying oils
is expected, the products manufac-
wa w bAAC1NAAOAh 1lpi
up to previous standards.
In view of the uptrend of domes-
tic flaxseed production, we NAV not
need to import as much flaxseed
from South America as in recent
years. Sufficient shipping facilities
TO bring in the needed supplies will
probably be available.
Regulations Important.
Operations of the industry cur
rently are subject to a variety of
Government controls. The restric-
tion of professors inventories to
9o-day operating supply has been
lifted, but raw material holdings
can be processed only to the extent
necessary to fill orders and main
tain a minimum working inventory.
Orders have also been issued pro-
hibiting the importation of process
ing OF coconut oil, copra, palm oil,
tung Oil and rapeseed oil without
specific authorization from the Gov
ernment.
Another order prohibits the use
OF coconut oil, babaSsu oil and palm
kernel oil in the manufacture of
food products or in any other proc
ess IN which glycerin is not recov-
cred as a by-product; at least 80
per cent of the glycerin content
of the oils must be recovered, and
the finished product can contain
no more than Is per cent glycerin.
Even under these restrictions. a
soap producer can use in any month
no more than rs per cent of its
average monthly consumption OF
these oils in l94l. A similar order
has been issued for palm oil. except
that the use of this product in the
manufacture of tin plate, terne
plate, steel sheets, steel strip anc
black plate is permitted
These orders are designed to in
sure maximum production of glyc-
erin, strategic war material
They will seriously handicap small
soap producers, particularly manu-
facturerS of potash soaps. since
these concerns would be able Il
comply with the Government re-
quirementS only at a prohibitive
cost Many of these companies. IL
fact, will be forced out Of business
The burden imposed on large SoaI
manufacturers. however. will bt
slight and probably will be mor'
than Offset by the conSequen
strengthening Of their trade posi-
ton.
Finally. price ceilings have beer
placed on glycerin and all fat
and oils with the exception o
proceSSed oils. essential oils, mlnera
oils. chemical oils, hnseed oil ant
butter. Where the imposition O
price ceilings has caused undu
hardshipS. upward adjustments hav
been made. Additional revision
are probable in the future,