Coal Tar Colors of America

The Aniline Color, Dyestuff and Chemical Conditions
from
August 1st, 1914,
to
April 1st, 1917.
A series of Addresses and Articles
Compiled by:
I. F. Stone
1917

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Aniline Dyes are made in the United States

Prejudice Against American DyesAddress Before the American Chemical Society, New York Section, October 9, 1914 I. F. Stone

MR. CHAIRMAN AND GENTLEMEN: It gives me great pleasure to be able to appear before you this evening, to clear up, if I can, the general skepticism which seems to exist in connection with the manufacture of coal tar dyes in the United States.

That there is such an industry in the United States is a fact and has been for over thirty years. That we cannot compare with Germany in magnitude is of course true, and that we will be able to increase our production in the near future to take over all of the colors now supplied by Germany is also manifestly impossible, but that it is possible, to increase the American production very materially is a fact, depending on certain conditions of which I will speak later in my remarks. That there has been more or less prejudice against dyes made in America is also true, in prejudice spite of the fact that these dyes are fully as good as any American Dyes. made in Europe, and it has been a struggle to prove that the latter statement is absolutely true. Even at this late day there are people who would always give the preference to European dyes at the same price and quality, if they had an opportunity to do so, and are abetted in their belief very naturally by the European representatives. Only a few days ago among other letters we have received asking about the manufacture of dyes in this country, was one from a very substantial trade journal which circulates largely among the textile mills. Among other things it says:

"No one believes that the American dyestuff manufacturer can compete with the German. The Germans are counted wizards in dyestuff chemistry and I doubt if you could interest a great number of manufacturers in a domestic product at the same price as quoted on exactly the same thing from Germany"

Prejudice Disappears.After a couple of pages of such argument it finally suggests that we take up the matter of advertising with them to change the sentiment of the buyers, which is very naive to say the least. But the point is, if a journal with the influence of this one should express such sentiments among its subscribers, how unfair it would be to the DiuppL?n. American manufacturers of dyes, and it is simply an instance of one of the small things against which they are struggling. On the other hand, in the past few weeks we are encouraged by numerous letters from actual consumers of dyes, among them some of the largest textile mills in the country, thanking us for the way we have been furnishing them our products during the present abnormal conditions, and advising us that they would in the future give their preference to American colors whenever we are able to offer them in competition with foreign colors; in other words, able to supply them with the quantity of colors consumed, which hitherto we have not been able to do by reason of not having a production sufficiently large to take care of all the trade; so life does have its compensations and the American dyestuff industry from now on in any event starts out on an equal footing with the German industry, as far as the good-will of the consumers is concerned, and it is therefore only a question of being able to produce a large enough quantity at competitive prices to insure a large proportion of the business of the United States for the American manufacturer.

Conditions Before the War.

Something happens.Barely two months ago a comparatively small percentage of the population of the United States knew anything about aniline dyes or dyestuffs, those who did know something being mainly connected with industries which used these products in their line of business. Even those who did use them had only a vague idea as a rule what they were and their source, except in a general way that they were made from coal tar and that Europe was the principal source of supply. They were even regarded by a large percentage of the consumers as a mere detail of their business, and were put in among the sundries with such items as oil, soap, and I might almost say paper, string, and such miscellaneous supplies, notwithstanding that it requires the highest order of scientific training to produce these colors and a long experience and knowledge of them in order to sell them successfully. The average dyestuff salesman was received only with tolerance and usually referred to some minor employee of the owner for his interview. Suddenly something happened. A great war was declared, and the great source of supply was one of the principal nations involved. Some buyer, more intelligent than the ordinary one, discerned that the supply of dyestuff s would be more or less limited if not entirely cut off under these conditions, and immediately made attempts to secure a good supply for his future wants, The news soon spread among others until there was a general scramble for dyestuffs, and men who ordinarily gave the matter very little attention are now looking after it personally and interviewing and corresponding with the heads of such firms as they think can supply them with their wants. The newspapers took up the matter and published columns of more or less accurate information as to the situation. The general public was therefore given an idea of what was going on, and now know more of the source and supply of aniline products than they ever knew before.

Present Conditions.The unfortunate conditions now prevailing have at least been of some good in a small way in educating our people here to the fact that they should be as independent as possible of other nations in connection with their supply of such products as are needed in this country, and there is now a general demand that the production of aniline dyes as one item should immediately be developed to such an extent that we would be independent of all other nations.

Can the U. S. Aniline Industry be Developed. The serious question now therefore is whether or not such industry can be developed to such an extent, and this question can only be answered by some extended and more or less superficial explanation of conditions. It is not my intention to put before you a scientific or technical paper on the subject, as most of you are more or less familiar with the general conditions surrounding the manufacture of these products, or at least can easily read up in detail in any of the standard publications on the subject. I do wish to give you, however, a practical statement of the fact so that you will see why the industry has not developed in this country as it has in Europe, more particularly in Germany, as other nations are no further advanced than are the United States.

Aniline Described. Aniline, as you know, is a product of coal tar, that is, coal tar is the primary raw material from which colors are produced, and it was obtained originally in the manufacture of coal gas, but of recent years a large and constantly increasing quantity has been obtained from the coke ovens used for making hard coke.

First Products of Aniline.

Benzole.The first distillates are such products as benzole, toluole, xylole, phenol (carbolic acid), naphthaline, anthracene, etc., and these are produced largely in the United States as well as in Germany; benzole, for instance, which is probably the most important of the group, is not only used as a base for the manufacture of intermediate products for the manufacture of aniline dyes, but is also used largely as a solvent in place of benzine and gasolene, and, in fact, in Europe is used largely as a fuel for automobiles as a substitute for the same products. The prices at which it sells in this country are practically the same as in Europe, as are also, in fact, the prices of the other distillates first mentioned. Up to now, the supply has kept pace with the demand, and there is no over-production, but if the manufacture of dyes is to be considerably extended it will then be also necessary to extend the production of benzole, and this can be done in the course of time by getting the assistance of those coke ovens who do not at present recover their benzole, to put in appliances for doing so. Their interest in the matter, however, depending on their ability to make a profit on this recovery, there is therefore a chance that the price of benzole may increase to some extent for this reason.

Naphthal.Another of importance is naphthaline, which is made largely because there is a large demand for it, the consumption in the United States being upward of nine or ten million pounds, not alone for its use in the manufacture of dyes but more for its use as a moth preventive, it having a large sale for this purpose all over the land. Of the quantity consumed here about one-third is produced in the United States while the balance comes about equally from Germany and England.

United States Starts Out Wven With Europe.It is evident, therefore, that the United States starts out on an even basis with Europe as far as the supply of the first raw materials is concerned, and that the natural resources of this country are available for an increase in the products which are manufactured from this source. So, in the beginning, for raw material we are as well placed here as they are in Germany; in other words, this is not a hot-house industry as some people have claimed but is a part of the natural resources of the United States.

Intermediate Products.From these distillates are manufactured what we call intermediate products such as nitro-benzole, aniline oil, aniline salts, toluidine, xylidine, cumidine, benzidine, binitro-benzole, nitro-benzole, sulfo-acids, and a host of other products, a list of which can be had from any good text-book on chemistry if you are interested in looking them up further.

First Check in Economical Manufacture in United States.

It is Necessary for United States to be Independent of Europe.It is here that the first check in the economical manufacture of aniline dyes is encountered, for the reason that with one or two exceptions, which I will mention later, none of these intermediate products are manufactured in the United States because up to now there has not been a large enough demand for them to make their manufacture economically possible, while on the other hand Europe Germany particularly has so developed the demand for these intermediate products that many plants have been established for their manufacture, most of them specializing on certain products, while some specialize on others, so that in the aggregate they are all produced on the most economical basis. Up to within recent years few of the aniline dye manufacturers manufactured these products themselves but depended largely on the aforementioned so-called specializing factories for their supplies, but this is now changing and some of the large color manufacturers are now making the principal intermediate products themselves, although none of them make everything which they use. It is, then very necessary, if the United States is to be independent of Germany, that these intermediate products be manufactured on a large scale in this country, and it is here that we ask the Government to start in with a sufficient protective duty to allow the business to be developed, the present duty of 10 per cent, which was only put on in the last tariff bill, not being really sufficient for the purpose, and before that time, the group being free of duty, there was no incentive to begin their manufacture here.

Aniline Oil.

Advantage of Manufacture United States.

Unfair Competition.One exception which was manufactured here is aniline oil. the manufacture of which was commenced about three years ago, and the quantity now produced is about onequarter and perhaps more of the total consumption of the United States, taking oil and salts as one product. The quality is very satisfactory as compared with the German and English products, and has been used by our own factory in the manufacture of aniline dyes since the beginning; in fact, if it were not being produced in this country at the present time the American dye manufacturers would not be able to continue to run, as they would be unable to obtain supplies from Europe, and consequently, as a result of this, manufacturers here are able to relieve the scarcity of aniline dyes, and have been of great benefit to American consumers by so doing, and will be a great factor in this relief as long as these unfortunate war conditions continue, so illustrating the great benefit to the people at large in having this class of products manufactured here, and so be entirely independent of Europe under any conditions. Unfortunately, however, the commercial side of the manufacture of aniline oil has not been so satisfactory for the reason that in the beginning they had no protection in the way of duty and were compelled to compete on an even basis with Europe, which could not be done successfully. They did, however, succeed in securing a duty of 10 per cent under the present tariff, which went into effect in October, 1913, just a year ago, but unfortunately this did not avail them anything in the beginning for the reason that the convention which controls the production of aniline oil in Europe immediately reduced their prices 10 per cent to offset this duty, so that we were no better off here than before, this being a sample of what is called unfair competition on the part of European firms in their attempt to prevent the increase of the aniline industry in this country, but could be readily checked if our Government would incorporate in their tariff what is known as the "dumping" clause, which is a clause forbidding the importation into and the selling in the United States of any products at a less price than they are sold in the country where they are produced. In spite of this check, however, the American manufacturers will continue the manufacture of oil, hoping that conditions will change in the near future so that they may be able to do so at a profit, and when this object is attained their plans are then to take up the manufacture of other intermediate products, until everything necessary is finally manufactured here. As a matter of further interest, I might say that our own factory in Buffalo made aniline oil thirty years ago, but were obliged to give up its manufacture at that time owing to their inability to secure benzole, which situation is, however, now changed, as sufficient benzole could be obtained to continue the manufacture under advantageous conditions.

Nitro BenzoleThe other exception to my statement that these intermediate products are not manufactured here is nitro-benzole, known also as crude oil myrbane, which is in some demand from outside industries as well as the aniline industry, but not to so large an extent as aniline oil, and which is made here from time to time as conditions warrant; in other words, when it can be made at a profit in competition with Europe.

Explosive Products.There is another demand springing up for these intermediate products which may increase their consumption to such an extent that there will be a large demand entirely outside of the aniline industry, for instance in the manufacture of smokeless powder and other explosives, the manufacturers of which are now using such products as diphenylamine, tri-nitro-toluole, nitro-benzole, pyridine, nitro-naphthaline, etc., and will finally create a demand which will necessitate their manufacture in this country as a matter of safety, as if the Government depended on explosives made from these materials, it will in self-defence have to create some sort of subsidy or tariff protection, making it possible for their manufacture irresponsible of European competition.

Carbolic Acid.This is also true, by the way, of carbolic acid, which is a primary coal tar product, and which is used in the manufacture of picric acid, an explosive product used by the Government; carbolic acid not being manufactured here at present to any extent and now being practically unobtainable from Germany or England by reason of these countries having placed an embargo on this product.

Aniline Dyes.

900 Different Kinds.

100 Made in United States.From these so-called intermediate products we then come to the manufacture of the actual aniline dyes as sold in commerce, and their number is voluminous and complex. My good friend, Dr. B. C. Hesse, an acknowledged authority, for instance, recently stated in a published letter that there were some nine hundred different manufactured  products, most of them as different each from the other as a pair of shoes is from a pair of socks. Of these nine hundred he observed that some seventy-six are now made in this country, but that this number is apparently not sufficient to meet the users' demand, in which statement I am quite ready to agree with him, except that we now make nearly one hundred types, which is more than he gives us credit for making. I will say, however, that of these nine hundred original types a great many are obsolete and probably we could get along quite well with a much less number, but as the one hundred made in America are all live types, and those which can be manufactured regularly, you will see we are making really a much larger percentage of the total than is apparent at first glance. In fact, I might almost venture the statement that with the hundred or so types already manufactured here, together with perhaps a few more which we would be prepared to take up on short notice, we would be able to furnish the American consumers perhaps 90 per cent of their color demands, speaking now of types or shades and not of quantity; the other 10 per cent which we could not furnish being such products as alizarines, indigo and patented specialties which would require large installations which would take a long time to complete.

Discovery of Aniline Dyes.It would perhaps be interesting in connection with these Aniline Dyes, colors to give a hasty sketch of their beginning and development until the present time, when they have resulted in the great chemical industry of Germany, the investment of millions of dollars and the employment of thousands of people.

The first color discovered was mauve, which is a sort of violet, by Perkin in 1856; then followed magenta and fuchsine in the same year, and a small establishment for the manufacture of same in England, which was not, however, very successful. Then came in 1862 the discovery of soluble or water blues, then the discovery of Hoffman's violet about 1863, Bismark brown in 1863, then naphthol or martius yellow in 1864, nigrosines in 1867.

Germany Becomes Interested.It was about this period that the Germans became actively interested in these products and commenced their patient, intelligent and careful researches into the subject, which later resulted in the most wonderful discoveries and the development of this industry in their country.

 Then followed the discovery of orange, fast red, chrysoidine, malachite green, ponceau (scarlet), methylene blue, cosines and metanil yellow about the years 1875, 1876, 1877 and 1878, and the manufacture then became one of recognized merit and importance.

After 1880 followed in rapid succession the discoveries of auramine in 1883, tartrazine in 1884, benzo purpurine in 1884, Congo red in 1885, benzo azurine in 1885, naphthol black in 1885, diamine red in 1886, rhodamine in 1887, to mention only a few of the best known and most successful colors.

The Golden Period.From 1880 to 1890 might be called the golden period of the business. Just prior to that time alizarine had been discovered, red in 1871, blue in 1877, patented, and successfully produced and sold at high prices with correspondingly large profits, and it was about that time that our German friends discovered the advantage of securing an exclusive market in the United States through their patents which enabled them to sell at high prices here, although continuing the manufacture in Germany, as the profits from such patented products as alizarine, benzo purpurine, diamine red and other direct dyeing cotton colors; auramine, rhodamine, tartrazine, and other such colors which were discovered and put on the market in that period, were enormous and put the German industry immediately on such a high pinnacle of success that it has continued until the present time.

In the nineties came the discovery of such important products as direct blacks for cotton, and acid and chrome blacks for wool, the total consumption of these blacks being much larger than all the other colors combined.

It was also at this same period that began the first of the patents on synthetic indigo, of which there are many, and which was finally put on the market at such a tremendous expenditure, and has only been a commercial success in the past few years, finally being such a success that it has replaced the natural indigo practically altogether.

Pharmaneutical Products.I might say in connection with the development of colors, that in the nineties came also the development of such pharmaceutical products as phenacetine, antipyrin, etc., which paid enormous profits to the manufacturers and which were also controlled by patents.

Wonderful Development of Coal Tar Industry.

Profits of a German Factory.Such, then, is the wonderful development of the coal tar industry, there being invested at this time in Germany something like four hundred millions of dollars, probably more, and the employment of some fifty thousand people; factories paying dividends to their stockholders, some of them, 25 to 30 per cent, and that after charging off a third of their profits to sinking funds for the erection of new plants and for other such purposes, in fact, this has been is done for so long a period that most of the present property and plants do not appear on their books at all as an asset, but have been built out of the surplus profits. This statement is made on the basis of a balance sheet for 1913 issued by one of the great factories, this factory having a capital of 55 million marks but whose stock is selling for over six times par value, showing that the actual capital in the business was at least four times the shares issued, or some 200 million marks. On a capitalization of 55 millio marks they showed a profit of 25 million, or nearly 50 per cent, one-third of which was written off for their real estate and plant account, leaving about 16 million marks, from which they paid a dividend of 28 per cent. Assuming that I am correct in my estimate of some four hundred million dollars being invested in the industry in Germany, and assuming that a fair proportion of their production is shipped to the United States, it would mean that if the United States were to develop this industry to take care of all their consumption here they would need millions of dollars and would need to employ thousands of people, so this will give you an idea of the magnitude of the business that it is now proposed that we establish here to its full extent.

Imports Into United States.

Amount of Sales in United States.It might be interesting at this point to give you the amount of aniline products imported into the United States from these European factories, the figures being for 1913:

Aniline dyes, about 7 million dollars
Indigo, " 1" "
Alizarines, " 1½ " "
a total of about 9½ million dollars, these figures being, however, cost prices, and when the American duty of 30 per cent is added on aniline dyes, and further amounts added for expenses and profits on their sale here, it means that the American consumers are really pacing something like twelve million dollars for their supplies, not counting the colors produced in America, which may perhaps reach about two million dollars more, the production in America, by the way, being some 15 to 20 per cent of the total consumption. These figures do not include the importation of pharmaceutical products which are made from coal tar and which is in itself a large business.

Germans Entitled to Benefits of Their Discoveries.

United States Cannot compete with Germany.Our German friends are entitled to all the benefits which have accrued to them by reason of their shrewd, intelligent and careful attention to this industry, but with such a statement as the above, does it not seem as if they had had enough and it is now time for the United States to participate in this great industry, when they are so well prepared to do so by having as good, if not better, natural resources than has Germany, and being consumers of so large a proportion of the German products. We must admit at once, however, that the United States cannot compete with the German manufacturers under normal conditions; first, because they have a great advantage in capital, experience, and the general advantages of everything that goes with a successful and enormous business; and second, because the actual expenses of producing in Germany, through labor conditions and so forth, are much less than in this country; so that some way must be devised that the United States can be put on a competing basis. This can only be done in two ways:

Tariff Protection First Way to Compete.First, by a sufficient protective tariff, which does not necessarily mean, by the way, that this will increase prices to the consumer, although many people seem to be of this opinion. For instance, in an article in the Scientific American of September 26th they fall into this common error in stating that with an average importation of about six million dollars' worth of coal tar dyes in the last thirty years we have a total importation of 180 million dollars during that period, and assuming that duties had been 10 per cent higher than -wasactually the case, this means that a total of eighteen million dollars would have been paid as an insurance premium against the possible event of the war such as that which is now disturbing commerce; in other words, they mean that the American consumers would have had to pay this large amount of money more if there had been a 10 per cent higher tariff than they had been paying under the various tariffs which had been in effect during that time. Even if the Scientific American were correct in their statement that eighteen million dollars would have been paid as an insurance premium in thirty years, this would really be cheap insurance compared to the enormous value of the goods manufactured in which the colors were used, assuming the colors with which to manufacture these goods could not be obtained and the goods therefore could not be manufactured, which is almost the situation as it stands today if colors are not soon obtained in the necessary quantities either from Europe or by an increase in the American manufacture. When I speak of goods in which aniline dyes are used I mean a whole range, such as textiles, leather, paper, silk, paints, and the hundred and one other manufactured products in which the use of aniline is necessary.

Higher Tariff Does Not Mean Higher Prices.In my opinion, however, based on experience, just the contrary to the Scientific American opinion is true, for the reason that a higher tariff would have stimulated production and competition, and competition always controls the price, and this is shown clearly by actual facts, for instance on indigo and alizarine colors there is no duty, and as a consequence they are not made here. Theoretically, therefore, they should be sold very cheap, but as a matter of fact, by reason of no competition here, they are controlled by conventions in Europe which make a uniform price and consumers are therefore unquestionably paying more than they would have to pay if such products were made here in competition. On the other hand, take for instance direct cotton black, which is an aniline dye which has a protective duty of 30 per cent and which is made in this country in large quantities, and on which the Europeans have been obliged to reduce their selling prices in this country to less than they sell for in Europe, so that American consumers are enjoying prices as low as 17 to 18 cents for a color which sells at from 22 cents and upwards in Europe under normal conditions.

Benefits of Competition.Does any one believe that the low prices would have been made in this country were it not for the competition here, and does it not therefore prove that competition here regulates the price and it is not so much a question of duty? What the American manufacturers want is not so much a high duty as it is that they want enough to equalize the difference in manufacturing conditions between this country and Europe, and protection against the so-called unfair competition referred to in my remarks in connection with aniline oil; in other words, the inclusion of the so-called "dumping" clause; and with a proper tariff on these lines the business could be successfully developed. I might say further that if we could get our intermediate materials at the same prices which are paid by the Germans, and then secure for our colors the same prices obtained by the Germans for finished colors in other countries, plus the actual American duty, the problem would be solved, as this actual American duty if sufficient would then cover our extra cost of manufacturing, and put us in the exact position as are the Germans as far as our selling prices are concerned.

Second Way to Competete Patent Laws.And second by the modification of our patent laws, so that they would require the manufacture in the United States of all such articles for which they issue patents. England has within the last few years made such changes in her patent laws, and as for Germany, she has always required the manufacture of patented products in her own country. Her present law reads in general, that the owner of a patent must work the invention to an adequate extent in this country (Germany), or at all events do all that is necessary to secure such working, and if not, then if the public interest is such that the granting of permission to others to use the invention appears needful, it is granted by making some arrangement with the owner of the patent so that he receives adequate compensation, but the manufacture of the product itself is insured for Germany. About 1909 a similar clause was threatened in the patent laws of this country, and to head off such action Germany negotiated a treaty with the United States by which the German working clause was made inoperative on American inventions; in other words, in return for the United States allowing Germany to continue to manufacture her products in Germany and export them to the United States, the United States was allowed a similar latitude in exporting her patented products into Germany, but whether or not the financial results of this treaty were beneficial to the United States is a question, but it certainly did not work out to the benefit of the United States as far as coal tar products are concerned.

Favorable Conditions in United States in 1880.

Favorable Conditions Disappear 1883.In what I have always termed the golden period of the industry, viz., from 1880 onward, there was from 1880 to 1883 a duty of 35 per cent ad valorem and 50 cents per pound specific, which gave ample protection to the industry, and as a consequence there were nine or ten factories in the United States, and the prospect of becoming independent of other nations for our supply of these aniline products was bright indeed, but the passage of the tariff act of July 1, 1883, which abolished the specific duty of 50 cents per pound, leaving only the ad valorem duty of 35 per cent and fixing a 20 per cent duty on the intermediate products, which left only a net protection of 15 per cent, immediately checked the industry here. No new factories were started, and within one year after the new tariff took effect five of those already established were forced to succumb and go out of business, leaving only four to continue the work, and those four would have gladly followed their example, but had invested large sums of money in plants which would be an entire loss if abandoned, so they decided to continue to operate their factories, hoping for more favorable legislation in the near future, but thus far they have always been bitterly disappointed, and no tariff since that time has given them sufficient protection to develop the business to any large extent. Of course a specific duty of 50 cents in those days was not abnormal, as the selling prices of the colors were so much higher than at present, and if a proper duty had been continued it would have had the same beneficial effect, but the abandonment of a sufficient duty has left open the admission of colors on a basis which really gives no protection at all.

Benefits of Favirable Laws.In addition to the first or protective question as a stimulant to the creation of this industry in America, and coming to the second reason, or patent situation, if the Government had in the same golden period, viz., the eighties, required the manufacture in this country of all products for which they issued patents, then it would have at once created a large industry here, as the European patentees would have been forced to build factories here to make these products, which means it would have resulted in branches of the European factories in this country, which would undoubtedly have developed into other products even though they may have originally only been erected for the manufacture of patented articles, and while this would not have helped the then American factories it would at the same time have inevitably created a large industry here with beneficent results to the country at large.

Four Factories in United States.

What They Are Making.As I have stated, there are now four factories in the United United States manufacturing aniline dyes, our own factory having been established in 1879, and while of slow development, at the same time has been successful to the extent that it has kept in business and now manufactures practically all of the seventy-six different colors mentioned by Dr. Hesse, or, to be correct, the one hundred, and to which I referred in the beginning of my remarks, these colors being all of the original colors such as Bismark brown, magenta, chrysoidine, fast red, water or soluble blues, eosines, nigrosines, a comprehensive line of direct dyeing cotton colors, and a comprehensive line of acid and chrome colors for wool and silk, and could easily be extended to the manufacture of practically all of the necessary colors now demanded, and which are not covered by patents, so giving the consumer a large variety to choose from, and insuring practical independence of Europe under any conditions, and would be a large business in itself, except by comparison with the great German factories, which stand alone in their magnitude.

What They Will Continue to Do.

Schoellkopf Aniline Works Pioneers.

What We Are Now Doing.All of the American factories will continue to manufacture colors to the best of their ability, but they cannot promise any extensive increase in their production without the support of the Government in the line of tariff protection, and, incidentally, the change in the patent laws, which, however, are not now quite so important as to colors for the reason that many of the original patents have expired and we are free to manufacture a large line of colors provided it is made commercially possible for us to do so, we having already demonstrated our ability to do so as far as experience and willingness are concerned. I might mention, as far as our own factory in Buffalo is concerned, which, by the way, is widely known as the "Schoellkopf Aniline Works," were the pioneers in the manufacture of such products as nitro-benzole, nitro-toluole, binitro-toluole, binitro-benzole, aniline oil, aniline salts, dimethyl-aniline, and quite a range of sulfoacids, some of them of our own invention, which are necessary for the manufacture of both acid and direct colors. We have also made such products as pure carbolic acid and pure naphthaline, but were obliged to give them up as well as the others because we could not compete with the European manufacturers, but we are now hoping that they can again be taken up, either by us or by possible manufacturers of intermediate products, and the manufacture continued successfully in this country. Under the present abnormal conditions our factory is again making some of these products in order to keep in operation, as just at present it is not a question of price but of ability to manufacture aniline dyes, almost no matter at what cost, such is the demand, but whenever conditions become more normal again then we will necessarily have to give up the manufacture of these intermediate products for the same reasons that we have had to give them up before, viz., that we can purchase them in Europe at lower prices than they can be manufactured here.

35 Years' Continuous Experience.I might mention further that our factories in Buffalo are still controlled and directed by Mr. J. F. Schoellkopf, Experience who originally established them, being assisted a little later by his brother, Mr. C. P. Hugo Schoellkopf, so that they have had nearly thirty-five years of continuous experience in the manufacture of aniline products, and are fully competent to continue the manufacture in a large way should conditions develop so they can be increased.

Not an Appeal for Sympathy.This paper is not intended to appeal for sympathy or help from Government or f rom American consumers, because we happen to be so placed for the past few years that we could not develop our business as it might have been developed under different conditions, as the American factories, even as they are, are prosperous and quite able to take care of themselves up to a certain point, but it is intended to show that the business cannot be extended to large proportions for the protection of American consumers unless with Government help as to tariff and patent laws, as well as the assistance of the consumers themselves, which means giving the American manufacturers the preference wherever they can do so and assisting them to secure the necessary help from the Government.

The Present and Future.Here, then, is the superficial history of the progress of the aniline industry from its inception to the present time, not only in this country but in Europe, and the situation as related to the present and future manufacture of these products in the United States fully explained. Will the United States Government continue its indifferent policy of practically allowing this important industry to drift along as heretofore, or will it now wake up and seize the opportunity to make itself independent of all other nations in its supply of coal tar products, not only for aniline dyes for commercial purposes, but pharmaceutical products which relieve illness and pertain to the health of its inhabitants, and products for the manufacture of explosives which would be absolutely vital in case of war? The future alone can answer these questions.


ADDENDUM

Discoveries and Patents.After reading this paper, in reply to a question as to whether or not any original work had been done by the American dye manufacturers, that is, had they discovered any new products, Mr. Stone stated that sixteen patents had been taken out by the Schoellkopf Works between 1884 and 1903, comprising colors and intermediate products. One of these products known as Schoellkopf acid had been taken up by one of the largest German manufacturers and used extensively by them; another product, direct black, had been taken up by another large German factory and also made extensively by them. Both products were used, of course, through arrangements with the Schoellkopf Works. So the question could be answered in the affirmative.