The Riddle of the Rhine:
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Victor LeFebure >> The Riddle of the Rhine:
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Drugs and Medicinal Products;--The German Monopoly;--National Health
Insurance Commission.--The question of drugs assumed critical
importance at the outbreak of war. Germany had been asserting
her monopoly for years in the field of medicinal chemicals.
Cessation of supplies at the outbreak of war caused grave
apprehension of a serious shortage in these products,
so important for the adequate treatment of disease.
In some cases we possessed neither the raw materials nor
the technical knowledge to undertake rapid home production.
But in the important group of the synthetic drugs derived from
coal-tar products, the raw materials were produced in quantity in
the United, Kingdom, only to be exported to Germany, thus contributing
to her monopoly. British manufacturers, on the other hand,
held their own in the production of certain kinds of drugs,
such as the alkaloids, gaseous anaesthetics, and some inorganic
salts of bismuth and mercury. In a summary of certain war
activities of the National Health Insurance Commission, we read:
"It was chiefly in the making of the coal-tar synthetic remedies
that Germany was pre-eminent, and that position was due not to any
lack of skill or invention on the part of the British chemists,
but to the high degree of organisation attained by the German
chemical industry, which made it possible to convert the by-products
of the aniline factories into medicaments of high therapeutic
and commercial value."
The Royal Society;--Novocain.--So serious was the situation
that for some time we existed on feeble stocks. But during this
period the utmost efforts were made to develop our own production.
The Royal Society promptly came forward with a scheme to link
up would-be producers with appropriate centres of research.
The latter not only assisted production but actually produced sufficient
quantities of important drugs to tide us over the difficult period.
Thus, for example, for the production of novocain the assistance
of about forty university laboratories throughout the country
was invoked, and they proceeded to produce the intermediates,
diethylamine and ethylene-monochlor-hydrin. These substances
were converted into diethyl-amino-ethanol, and the final step,
the production of novocain, was undertaken by manufacturers,
including a prominent dye firm. We have referred to one of these
substances in connection with the German production of mustard gas,
and need only say that in England, in a time of national emergency,
the Government had to depend on the improvised assistance
of forty teaching and research institutions for the production
of small quantities of drug intermediates. Further, this work,
although to the permanent credit of those who undertook it,
did not enable us later to produce rapidly war quantities of
mustard gas, itself dependent on the same important intermediate,
ethylene-monochlor-hydrin. Germany settled the drug and mustard
gas question by a simple demand to the I.G., because the latter,
holding the indigo monopoly, possessed actual large-scale
ethylene-chlor-hydrin production.
Other cases, although equally creditable to those actually engaged
in the work, also reflect our national unpreparedness and neglect
of chemical industry.
Beta-Eucaine.--Beta-eucaine is a very important local anaesthetic.
Before the war we obtained it almost exclusively from Germany. When urgently
needed in 1915 for the War Office and Admiralty, the Government discovered
that it could not obtain this substance from commercial sources.
Seventeen laboratories co-operated to produce two hundred and sixteen
pounds of the material. Such examples would be ludicrous did they
not possess such a serious national aspect. Our position was almost
as desperate regarding chloral-hydrate, the important hypnotic,
and the rare carbo-hydrates required for bacteriological purposes.
Sir William Pope's comprehensive statement[1] supplies further examples.
[1] _Science and the Nation_, A. C, Seward. F.R.S. Cambridge
University Press, 1917.
Photographic Chemicals.--Our dependence upon German monopoly,
so drastically revealed at the outbreak of war, was not limited
to dyes and drugs, Photographic chemicals were of special importance
for war purposes, yet, when the development of aviation increased our
demands for photographic chemicals, we had no normal sufficient source
to which to turn. We needed not only the essential bulk chemicals,
such as amidol, metol, para-amidophenol, and glycine, but also
certain rarer substances, such as the photographic sensitisers,
which were so essential for the Air Force. By calling upon chemical
industry and research institutions both needs were satisfactorily met,
but the contrast with Germany leads perforce to the same conclusion,
their case and speed of production as compared with ours.
This examination shows the fine texture of the tenacious web by which Germany
had entangled and stifled the organic chemical industries of other countries.
Although at the outbreak of war the Allies were slow to realise the war
significance of the dye industry, yet they were quick to determine that
the resumption of peace would not find them in such an ignominious position.
Steps were taken to establish dye industries in England, France,
and America. Not only did plants spring up to meet the immediate
needs of the textile industries of the world outside Germany,
but the question received considerable Government attention.
Promises were made and steps taken to encourage the growing industries.
But these cannot be examined in detail here, and the main facts are
common knowledge. Two points emerge, however, which are of prime
importance from the point of view of our discussion. In the first place,
the acute needs of the armies prevented the maximum use of the war
opportunity for developing Allied dye industries on a sound basis.
No sooner was producing capacity installed, than it was taken over for
the production of urgently needed organic chemicals for explosives.
Dye enthusiasts would have regarded the war as a supreme opportunity
for a period of concentrated organic chemical research to make up
the leeway which existed, owing to forty years of German development.
But the research energies of the country were occupied on more
pressing problems. In Germany, the war chemical activities of the dye
factories all contributed to their future post-war strength.
In England and France it was otherwise. Our equivalent energies were
concentrated on developing improvised processes and plant, absolutely
necessary to counter the German attacks, but almost without exception
of no direct ultimate value to our peace organic chemical industries.
This is a point which merits careful consideration. These industries
voluntarily threw aside what was, logically, a great opportunity for them
to push their research investigations so necessary for eventual success.
The state-aided Huddersfield factory represented national vision, whose fruits
were stolen by our ceaseless need to improvise counters to German aggression.
But we owe to our dye industry the national recognition of these facts.
Stress of war gave us true vision, but prevented its logical outcome.
War needs are now removed, and everything should be done to place at
the disposal of the dye industries those facilities which they necessarily,
but gladly, sacrificed in time of emergency.
The brief survey of the preceding pages reveals the existence of a German
chemical policy pursued vigorously for many years before the war.
It also shows how this policy developed in America, the chief neutral country,
during the war period, for two years before her entry.
The Americans have also established beyond doubt the active
co-operation between the German Government and the I.G. But,
if the policy of the German Government and of the organic
chemical industry had many points in common before the war,
they became one before hostilities were many months old.
The part played by the I.G. in munitions production, in which it
was virtually a tool of the Government, has already been seen.
It must be remembered that, after the first Battle of the Marne,
the German Government turned to the I.G. for a large part of
its explosives and practically all its poison gas, and, as has
been stated on many occasions, and with reason, Germany would
not have been able to continue the war after the summer of 1915
but for the commercial development of the Haber process
by the I.G. The story is too well known to repeat at length.
The basic element of explosives is nitrogen, which is introduced
by nitric acid. This was produced from imported Chili saltpetre,
but the blockade cut short these imports, and but for the Haber
method, the vital step in producing nitric acid from the air,
Germany would have been compelled to abandon the struggle.
There is striking coincidence between the commencement of
the Great War and the successful completion of certain vital
German chemical developments. As late as 1912 Germany still
depended on other countries, chiefly England, for her phenol,
the basic raw material for picric acid as well as a dye necessity.
Soon after that date the development of the Bayer plant made
her independent in that product, and gave her, in fact,
an exportable surplus.
War Activities of the I.G.--Reviewing all these activities and realising
how they all emanate from this one organisation, we are overwhelmed by its
formidable nature as an offensive and defensive weapon in time of war.
Here we have an organisation, the I.G., whose sinister pre-war
ramifications dominated the world by their hold on the supply of organic
chemicals vital for peace and war. This organisation functioned,
in a sense, as the life blood of German offensive warfare.
German sources tell us very little of the war activities and future
significance of the I.G. A veil of secrecy seems to be cast
over the whole matter, but behind this veil must exist an acute
realisation of the value of the I.G. as a trump card for the future.
Krupp is uncovered, the whole world was alarmed at its meaning for war,
but heard with a comfortable sense of security how Krupp was
exchanging the sword for the plough. But the gigantic I.G. controls
in its great hand a sword or plough for war or peace at will.
This is no far-fetched metaphor.
The Rhine Factories and the Armistice,--It therefore becomes important
to inquire into the attitude and activities of the I.G. since
the Armistice, and to examine its position in world reconstruction.
For one brief period, the few weeks following the Armistice, the German dye
industries appear to have been without policy, its leaders in confusion.
But with the confidence inspired by the Allied Rhineland occupation,
with the assistance provided by the Allied controlling organisations,
with regard to labour, fuel, and commercial transactions, the industrial
morale speedily recovered.
The tide of revolution which accompanied the German debacle in
the autumn of 1918 swept over the Rhineland chemical factories.
Colonel Norris, writing on his visit in February, 1919, tells us
that after peace was restored by the Allied forces:[1]--
"the managers of several factories agreed that the occupation
of the territory was the best thing that could have happened.
On the other side of the Rhine, labour refused to work,
and demanded unheard-of pay--everything was topsy-turvy. In fact,
before the Allied armies arrived, revolutionary notions were
growing rapidly along the Rhine. One director of a well-known
chemical plant is said to have escaped by night with his life
by way of the river, when his employees were especially menacing.
When the British Army came he returned, and is now at his old post."
Thus, although the I.G. was model in its institutions for
the welfare of employees, at least one of its most prominent
directors was compelled to take refuge from infuriated labour.
What with danger from the latter, and the uncertainty of action
by the oncoming Allied troops, the future of the factories
appeared very gloomy. In fact, there are fairly credible
rumours that the German directors were willing to dispose
of their assets to the Allies while they remained intact.
But the same Allied troops, whose advent was feared, rolled back
the tide of revolution from the banks of the Rhine, and restored
industrial security. It is doubtful whether the investing
armies realised the full war significance of these factories,
except the French. The latter instituted a fairly thorough
control almost at once. But, judging from reports of
different missions to these factories, we were even backward
in organising inspection of the purely munitions plants.
Thus the Hartley Mission did not materialise until three
months had elapsed.
[1] _Journal of Industrial and Engineering Chemistry_, Vol. XI., 1919,
Page 817.
War Mentality of the I.G.--We watch a vivid impression of the war
mentality of the I.G. in a few phrases from Colonel Norris's account:
"Around the walls of the director's room was a beautifully painted
and artistic frieze which pictured the various plants of the
Bayer Company and their activities. Dr. Duisberg, the director,
pointed out proudly to the Americans the view of the company's plant
on the Hudson River. We were not surprised to see it, although pre-war
advertisements had assured us at home that Bayer aspirin had been made
on the Hudson for years by an American company. During the war an
ante-room had been decorated in a similar way, with pictures illustrating
the activity of the plant in the preparation of war-gas materials.
One saw how gas was made, shells were filled, and gas masks assembled.
The work was done by an artist, and has a permanent value.
The fact that the thing was conceived and executed during the stress
of war throws an interesting sidelight on German character."
Incidentally, it also throws a further sidelight upon the part played
by Leverkusen in the chemical warfare campaign.
German Attitude towards Inspection.--As was quite to be expected,
the German factories did not receive our missions with open arms,
and they were particularly jealous of any inspection at Oppau,
the site of the wonderful Haber synthetic ammonia plant.
Lieut. McConnel, of the U.S. Navy, tells us:[1] "Upon arrival
at the plant the Germans displayed a polite but sullen attitude.
They seemed willing to afford the opportunity of a cursory
inspection, but strongly objected to a detailed examination.
On the third day of the visit the writer was informed that his
presence had become a source of serious objection and that if his
examination were prolonged a formal complaint would be submitted
to the Peace Conference." The Allies had only themselves to blame.
Their facile yielding to the argument that this great arsenal
was principally of peace significance, owing to the fertilisers
which it would eventually make, and the feeble backing provided
for inspecting missions, were reflected in the semi-resistant
attitude of the I.G. personnel.
[1] _Journal of Industrial and Engineering Chemistry_, Vol. XI., 1919,
page 837.
The Rhine and Chaulny Contrast.--It was a curious contrast, however,
to pass through Chaulny on the way to the Rhine. At Chaulny,
the oldest chemical works in France, quoting again from
Colonel Norris, "where Gay-Lussac did his famous work on the
manufacture of sulphuric acid, where Courtois discovered iodine,
and where plate glass was first made, had grown with the times,
and was amongst the largest factories in France. Around it
was a thriving town of about 13,000 inhabitants, with some
excellent public modern buildings. When the Germans in their
first retreat were forced to leave the place, they dismantled
the factory and carried away everything that was portable.
The fortunes of war brought them back, and before they left
a second time a regiment of soldiers was put to work to destroy
systematically the factory and the entire town. For, a month
they kept at work, and when they withdrew but a few bricks were
left standing. Every boiler had been blown up with dynamite,
and every tank too heavy to be carted away rendered useless.
About half an acre was covered with chemical stoneware of
all kinds; each piece had been broken with a sledgehammer.
Nothing was too small or too large to escape destruction.
And to make sure of a good job, everything that would burn was
set on fire." Yet within twenty-four hours one met Germans,
in-directly or directly responsible for this policy of destruction,
resenting peaceful Allied inquiries on the munition activities
of their own plants. We hardly know whether to attribute such
effects of Allied policy to our own integrity in respecting
the peace activities of these arsenals or to official ignorance
of their war-like nature.
German Revolution and the Industrial Leaders.--It is curious how
the leadership of the captains of German industry was left untouched
by the revolutionary disturbances of the post-Armistice period.
Evidence is to be found in the composition of the main German delegation
to Paris for the settlement of the Versailles Treaty. Many of the
members were big industrial magnates, several had direct connection
with chemical industry, and at least one was a prominent director
of the I.G.
The German Peace Delegation.--Commenting on the composition of the main
German delegation in the spring of 1919, we find the German press
deploring the omission of any "visible representative" of Army
or Navy. Does this imply the presence of invisible representation?
Whether intended or not, there is truth in the implication.
The list contains the name of one of the leading representatives of
the big dye combine. Others of the delegates have chemical interests.
This is significant. It more than implies the German official
acknowledgment of the importance of the dye industry in general
for the future of Germany, and of its prime importance for war.
Recent Signs of Government Interest.--Recent developments
have merely strengthened the dye combine and provided
further evidence of Government interest in its welfare.
The chief signs of reviving. German Government interest in the I.G.
are to be found in the loan for the nitrogen enterprise and in
the privileges which it enjoys with regard to Government taxes.
An American source,[1] a witness before a Senate Committee,
reveals that the dye plants "have to pay no direct Government taxes.
According to an understanding with the present Government,
all organic chemical productions, the companies themselves,
as well as all dependencies, without exception,
for the next ten years, are freed from all direct State tax.
In so far as community taxes come into consideration,
I believe we will obtain a remission for our profession."
The latest sign of Government support is to be found in
the preferential treatment obtained by the German dye industry
in coal deliveries. Coal is a critical factor in the German
attempt to regain their monopoly.
Nitrogen Fixation.--The industrial fixation of nitrogen by Germany to form
ammonia has great importance from the point of view of our discussion.
Statements by various prominent Germans, such as Dr. Max Sering,
of the University of Berlin, and Dr. Hugo Schweitzer, already referred to,
leave no doubt. The former, writing in 1915, tells us:
"The complete cutting off of the supply of Chili saltpetre during
the war has been made good by our now taking nitrogen directly
out of the air in large factories built during and before the war.
With extraordinary rapidity the question has been solved how the
enormous quantities of the needed ammunition were to be produced,
a question which in England still meets with difficulties, in spite
of the help from America."
[1] Hearings before Committee on Finance, U. S. Senate, 1920, page 195.
The German Nitrogen Syndicate.--The two great Haber plants at Oppau
and Merseburg are both constituent parts of the I.G., and they
introduce a new element of Government interest into the I.G. policy.
Giving evidence before the Committee on Agriculture and Forestry
of the United States Senate, Colonel Joyce develops this question
of Government interest in detail. He tells us how war nitrogen supply
was energetically and specifically fostered by the German Government
through an Imperial Commissioner under the War Department. One of
the three advisers of this campaign was Doctor Bueb,
representing the Badische Anilin- und Soda-Fabrik. Colonel Joyce tells us:
"That was a strictly war control organisation, but even before
the war closed, Germany, with her usual foresight, was giving
consideration to the future commercial aspects of her nitrogen works,
and in August, 1919, there was definitely formed an association
of the producers which was called the Stickstoff Syndikat G.m.b.H.
or Nitrogen Syndicate. This designation is a commercial one,
and the organisation is along commercial lines, but it is,
reliably stated that the establishment of this syndicate was
largely due to governmental influence. This will be more easily
understood if it be realised that the German Government had given
financial assistance to many of the new plants and plant increases
which the war had necessitated."
Haber Process Prominent.--The Badische Co. holds a large part of the capital
stock of this syndicate, whose Board contains a Government nominee.
in addition the Board of Managers will have a Government chairman.
Through such arrangements, Government interest in the I.G. nitrogen
enterprise is clearly revealed. In conclusion, Colonel Joyce informs us,
"This information, which comes from most reliable sources and is
not to be disputed, shows that, beyond question, any one outside
of Germany producing or desiring to purchase nitrogenous fertilisers
or similar compounds, will have to deal with a single organisation,
essentially a branch of the German Government, which will have
an absolute monopolistic control of all such products produced in
Germany or whatever surplus there may be for export (Hearing before
the Committee on Agriculture and Forestry, U.S. Senate, S. 3390,
Mar. 22nd, 1920, p. 52)." It is reported that the preliminary allotment
of production to the Badische Co. in the Syndicate is three hundred thousand
tons per annum, which should leave a considerable exportable surplus.
This would constitute a formidable weapon in any price-cutting campaigns
entered upon by the I.G. in order to preserve her various monopolies.
We learn from the _Colour Trade Journal_ of August, 1920, that the
German Government has advanced something over ten million pounds
for the construction and operation of the Haber plant.
The New German Dye Combine.--Internal changes have accompanied
the development of these external relationships. The interchange
of capital and directors between the different branches,
the use of all assets for a common purpose, and the pooling of
all profits effected in 1919, has brought about a closer union.
From the relatively loose pre-war combination held together by common
price interests, the organisation has passed through the cartel
to what is now practically a form of trust. The German dye industry
is now a closely woven, almost homogeneous institution. It has added
economic cohesion to technical efficiency, and is to-day the largest
technically efficient potential instrument of war in the world.
We have thus revealed the existence, and indicated the nature,
of the resultant activities of the chemical policy guiding
the pre-war German combination of organic chemical or dye producers.
Further, it is seen how the war stimulated and sealed closer relationships
between the constituent firms, and between the resultant organisation,
the I.G., and the German Government. Continuing, we find the above
tendencies intensified since the Armistice, from unmistakable signs
briefly referred to above.
Aggressive Nationalistic Policy.--Both in peace and war,
the combination of interests, known as the I.G., has successfully
pursued an intensely nationalistic and aggressive chemical policy.
We might ignore what some have regarded as the sinister side
of the I.G. activities, considering the whole as a wonderful
monument to German science, thoroughness and patriotism,
which it undoubtedly is in many respects. But the significance
to the Allies and associated countries remains the same.
Even without any thought or intention on the part of present day
Germany to use this thing for war, it remains a serious menace.
But the direct evidence which we possess does not actually
support such a peaceful view. Her press confidently prophesies
the resumption of the pre-war German monopoly, reassuring its
readers by careful analysis of the causes of the eventful failure
to establish organic chemical industries in Allied countries.
Are we to yield in this field of economic war? If so, then one
of the chief lessons of the Great War will remain unheeded,
and the future cannot fall to prove this to the hilt,
to our cost.
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