The daily monitor leader. [volume] (Mount Clemens, Mich.) 1942-19??, 1942-04-07

'N''' b'o('OStICS OIl I've y ".
Forbenindustrie, or German
dye trust attempts TO control
synthetic rubber development
~ the United Stotes. AS q mat
ter OF toct there is even q
chapter in the Bosic Moane-
SUM, Inc story =that leads
back to !. @. F. control Of the
process which B. M. !. proposes
TO use.
DAISY CHAIN
Up to the beginning of the
defense emergency, the United
Stotes had only one magnesium
plant in operation, j 5000 tons
per year unit run by the Dow
Chemical Company of Mid
land, Mich, which extrocted
the metal from sot water Ad-
dItionoI v. S. consumption of
this metal, lighter than oIumi-
mum and valuable as an oIIoy
to give aluminium extro hard
ness, had been met by imports
from Europe. German metal
Iur9ists had really pioneered
the development Of the metal,
but in 1886 O British operating
company, Births h EIektron,
Ltd, began extensive reduction
OF the ore in England, licensed
to operate under patents con-
troIIed by |. @. Forbenindus-
trIe. In the United States these
Potents ore supposedly con-
troIIed but not developed by
Magnesium Development Co.,
q holding company ointly
owned by the Aluminium Com
Pony Of America and |. G. F.
Other industriohsts in Am
erico oIso saw the possibilities
OF magnesium development.
Among them we're the Hanna
in ERE t S Of Cleveland, for
years operators Of coal and
iron properties in the Greet
Lakes oreo. The Hanna inter
ests sent engineers to England
to study British EIektron oper-
atoms, with on eye TO deveI-
opin9 the moenesite ore depos-
its in Nevada. The result was
the formation Of Eosic Moq-
nesium, Inc, IS per cent own
ed by the British who we're to
furnish the Know how" Of op-
Grafton, S. per cent owned by
Bosic Refroctories, q Hanna
holding company which in turn
o"~ss5 &c < s4.Ls,5N,s; 5u,1u
Ores, which acquired the New
odo moen,site deposits - If
you can follow that corporate
doisy chain.
NICE BUSINESS
Original plans Of Bosic Mag
nesium called for q plant with
q modest 5000 tons q year CO.
pocity. Then came the war,
and the demonds for moqne-
SUM zoomed. After consulting
the Army ond the Defense
Plant Corporation, the COM
Pony multiplied these plans
gradually by u plus, with the
result thot contracts we're let
for the S63 million plant with
capacity Of $1,000 tons Of
ore O year, which wos an
nounced in mid-Aueust l94l.
BosiC Magnesium didn't have
TO put up q cent beyond its
nominal costs for promotion
and proving the ore, estimated
OF from SIS 900 to $4,000.
Under the contract, the gov
eminent retains title to the
plant, bu' Bosic Magnesium
wos given q cost-pIus fixed
fee contract for operation and
construction. Bosic Moones-
ium is TO receive 100000
fee plus cost for construction
and engineering although, &C.
ccrdin9 TO Senator WoIIeren's
subcommittee, the company
had little or no construction
experience and though more
than 81 million is TO be poid
in fees for construction, enai-
neerine and architectural SER
vices being performed by
others. Further, if the Defense
Plant Corporation should can
Gel the contract, the Cove n
ment would have to poy Bosic
Magnesium s. million and
double the royalties on the
ore from s. to 81 q ton, al
though the Bosic Refroctories
company is now leasing quar-
ries near Los Vegas on poy-
ment Of Is cents per ton roy
oily.
All this is what the full Tru-
man committee will investigate
when it opens hearings in
WASHINGTON