The midland journal., 1945-12-07
| LOOKING
|xIE AHkAD
BY GEORGE S. BENSON
~ presidenf--4ardiAg College
Searry. .Arkansas 4
Oil and Mold

Apostles of government ownership
of business agree sometimes that
private management can do better
with little things. When it comes to
filling prescriptions, mending shoes
or making clothespins, they admit,
private operators may be more eff
ficient. Not so with the big stuff,
they argue; coal, iron, oil, railroads
are different. These just beg for bu-
reaucratic bossing.
Of course big industries are more
interesting to politicians because
they employ large numbers of peo-
pie and affect the daily lives of mil
lions more. The fact remains how
ever, that government can and does
make mistakes in the operation of
big industries. Moreover, appropri-
ate encouragement from govern
,ment in relatively small enterprises
has been known to result in much
good.
SignificantaDec ecisiOns
Since government enterprises tend
ultimately to become monopolistic,
mistakes in them can be far more
fateful than private blunders. Our
government made two important de-
cisions in 1912 which illustrate the
case perfectly. One, to take spec
ulative flyer in Arctic oil, has cost
American taxpayers 300 million
goodbye" dollars >already. The
other decision had to do with penicil-
lin.
Penicillin is a drug, mold ex-
tract that most people know less
about than they do about gasoline.
Some perfectly astounding cures are
being worked with it, including cure
of meningitis. 1t was discovered by
an English scientist, Sir Alexander
Fleming, in 1929 but production was
tedious, slow and costly and conse-
quently few sufferers were helped by
it for 13 years.
In Mass Production
BY 1912, our first war year, some
American capitalists had taken
hand with marked success. The
product was costing 500 a bottle
then, and the average patient re-
quired three bottles. Government
authorities realized that war would
create need for it so they guaran-
teed a large market and provided
capital for mass production. His
tory will record the splendid results.
With the governments big pur-
chase of this successful item, VOL
ume production started. Now there
are 20 factories. The largest cost
more than 35 million dollars but
penicillin Is costing less than ST
bottle, So per treatment. Many lives
have been saved and more will be.
Mankind will be healthier and hap
pier. Government encouragement Of
this business proved wise and bene-
fetal.
Smell of the Yukon
How different was the Canol oil
venture. The Army drilled wells
on the Mackenzie river, built a 27-
million-dollar refinery at White
Horse and tied into Fairbanks, Alas
ka, with 1000 miles of pipeline.
Nothing was gained. Gasoline from
the white elephant plant at White
Horse costs 26c gallon. Oil COM
panies can ship better product
there from the states for 18c. The
venture has been abandoned.
The Canol experiment failed. Very
apparent obstacles made the opera
ton too costly. Known sources of
supply are better and 300 million
dollars of taxpayers money is gone.
Governments support of one bene-
fetal drug can't justify its manage
ment of big business. What official,
spending public money, is cautious
and thorough like a private investor
with his own money? Never has
government management achieved
the efficiency of American private
management.