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.