Chemical Menace?

Meeting. Heads of German, French, British and Belgian chemical industries agreed last week at a conference in Paris to consolidate their companies to form a "billion-dollar European chemical trust."

Membership. The companies that will comprise the combination are: "Ig," which is the trade symbol of the famed Interessen Gemeinschaft Farbenindustrie--the largest corporation in Germany and that country's dye trust.

The Etablissements Kuhlman, chemical trust of France.

Imperial Chemical Industries, Ltd., of London.

Belgian interests.

Manufacturers in Switzerland, Italy and in Chile (chief sources of nitrates) are "friendly to the move and expected soon to join."

Products. The amalgamated companies will produce a huge volume of nitrates and potash, both extensively used as fertilizers; dyes; also rayon (cotton fabrics chemically treated to resemble silk).

The total annual exports of the combine are estimated at $500,000,000.

Reason. European (and especially German) chemical exports have dwindled to an almost negligible figure since the War. In recent years they have recovered some of their old prestige. However, U. S. producers last year exported chemicals worth $171,000,000. The combine move is a vigorous effort by Europe to strengthen its position in the chemical industry.

Menace. U. S. chemical manufacturers are alarmed. Francis P. Garvan, alert President of the Chemical Foundation in New York and spokesman for U. S. producers, regards the combination as a menace. Said he last week: "Is there an American with soul so dead as not to thrill at this threat? . . . What was our position in 1914? That position can come again and will come again unless all the American people unite against this combine threatening their peace and their prosperity. . . . Don't make the mistake of thinking this is a dye fight, or a nitrate fight, or a rayon fight or a fight for European or Asiatic markets. No, it is a fight to reassert European, in reality German (the French and English have been duped) supremacy in chemistry and chemical progress and that means German military supremacy. . . . America will never join such a combine. . . . Enlightened American industry, enlightened American opinion and enlightened American legislation will not allow our betrayal!"

Challenge. Said the New York Times in an editorial: "We need not be frightened by this apparent threat. . . . The European challenge is essentially one to American brains. Our . . . chemists must redouble their zeal. . . . Our chemical industry really has no more reason to fear Europe than has our steel industry, always provided that we are ready to draw our belts tighter and go into the competitive struggle with all that we have to give it."