CAPTURING THE GERMAN DYE SECRETS

Dominion, Volume 11, Issue 101, 22 January 1918, Page 5

CAPTURING THE GERMAN DYE SECRETS

MORE ABOUT THE BRITISH "DISCOVERY' GREAT SENSATION IN LONDON The capture of the German dye secrets (as reported briefly by cablegram a week ago) has created a great sensation in manufacturing and business circles. One of the moving spirits in the Swiss investigations (says "The Times") states that Germany guarded the processes more closely than any English trade secret, with the possible exception of Sheffield steel. Lest tho Swi63 plan should fail, inquirers, aided by the Government, carried on several investigations elsowhero simultaneously. Conclusive tests havo been made by Mr. Rowe, of tho Manchester School of Technology, who is an eminent dyo chemist, and formerly worked in tho Badische works. The discoveries include a secret "apple green," one of the most valuable known dyes. The holders of the secrets have resisted tempting offers to form a monopoly, and intend to offer tho formulae to the. Government for immediate use in tho existing factories. Various dyes now selling at from £2000 to £2400 a ton cost beforo the war from £50 to £70.

Mr. Rowe, interviewed, said that the tests of the apple-green served as the basis of the Swiss purchases of other formulae. English dyemakers were previously familiar with some of the German processes, but the now recipes contained guaranteed descriptions of the very dyestuffs produced largely in the Continental works. It would be a mistake to expect large and immediate result 1 ' from the discoveries, except for war work," as manufacturers will he unable at present to mako the fullest use of them owing to the scarcity of chemical experts and skilled workmen. A Teprosentativo ,of British Dyes, Limited, states that the company previously possessed a thousand alleged German recipes. Ho admits that they represent camouflage, at which Germans are adepts. Fighting the German' Combine. With a capital of £11,000,000 and cash deposits in New York of £10,000,000, the seven leading German aniline dyo factories organised in 1016 a gigantic trust with the object of regaining German supremacy in the world markets after the war (says the Berne correspondent of "The World"). Their plans, long and carefuly prepared, included the gaining of eventual control of the Swiss and Dutch chemical industries, which would give Germany nearly 90 per cent, of the total output of the world.

Three of the manufactories invthe new trust have a capital each of £2,700,000. namely, the Baden Aniline and Soda Works (the secret formulae of which are now in the hands of Britain), the Elberfeld Colour Work 6, and the Hoechst Colour Works. The other four members are: —Leopold Cassella, capital £1,500,000; the Anlino Manufacturing Co., £1,000,000; Welerter Meer, £400,000; and ICaile and Co., £300,000. The Baden works reported net profits for 1915 of nearly £1,000,000, and tho Hoechst Co. of just under £800,000. Each paid a dividend of 20 per cent., besides adding very large sums to their reserves.

Tho endeavours of the Allies' Governments (especially Engand) and the chemical industries of neutral lands (particularly Switzerland) to capture German foreign markets have aroused considerable apprehension in Germany. All Germany's highly organised and comprehensive experimental and research work in synthetical combinations, carried out by hundreds of chemists and experts, has stopped. On the other hand, the neutrals -ind Allies have been developing their new industries, and have not only sought to discover new combinations, but have also succeeded in modifying international fashions to meet their temporarily restricted capacity of production. Keenly alive to these dangers, the. German manufacturers had long been preparing the organisation of the combine, which included some new features. It had been arranged that full details of every specialty hitherto made only in individual factories should be communicated_ to all the rest, and the same applied to each new discovery as soon as it was made. Then, too, every dye-stuff would be produced simultaneously in at least two works.

Protected by very high tariffs, German manufacturers would have been able to charge such prices at home as would offset their losses in dumping goods abroad, by which they hoped to stifle the new competition. At present Germany's most serious competitor is the Swiss chemical industry, a highly developed organisation, doing 30 per cent, of the world's trade. Germany has been endeavouring to cripple her Swiss rivals by holding back coal, and has also been planning to get control of the much smaller Dutch chemical industry.

AVhen war broke out German dye manufacturers owned immense stocks of goods abroad, especially in America and China. These were sold at fantastically high prices, and, according to Swiss estimates, £10,000,000 wero realised. This immense capital, it was intended, should bo put to buying tiio chemical raw materials which Germany must have immediately after tho war.

The trust anticipated opposition, and it was fully awaro of tho high tariff projects and all tho other schemcs by which the Allies and neutrals proposed to offset tho threatened dumping ot German goods in their territories.