File No. 165.102/13
Memorandum for the President, by Representative Herman A. Mete, forwarded to the Department of State, August 20, 1914
Practically 75 per cent of the dyestuffs, outside of dyewoods, that are consumed in the entire world are manufactured in Germany in five or six plants located chiefly along the Rhine and Main. Countries like Russia, France, and England, and even the United States to a small extent, have established plants for manufacturing colors, and are now depending entirely upon Germany for their own material from which they carry on the further operations. Every cotton, woolen and silk mill, as well as every, leather manufacturer, paper mill, printer’s ink and paint manufacturer, is dependent upon the products of these German concerns, whether he makes white goods or colored goods, because chemicals are used for sizing and finishing as well as for dyeing. There is not over a sixty days’ supply of textile chemicals and dyes in the United States, carried in stock by the various importers or agents of German concerns. These stocks have been apportioned in such a way that practically every mill will get its pro rata share, based upon its [Page 407] average monthly consumption, to carry it along from four to eight weeks and so far as I know none of these holders of dyestuffs have raised their prices in the least to their old customers. The chemical men, on the other hand, have advanced prices from 30 to 100 per cent upon oxalic acid, chrome, tannin, and other products used in dyeing, printing and finishing in these industries.
Unless the mills can get supplies to keep them going after the present ones are exhausted, it means that unless help is obtained, the cotton, woolen and silk mills, and the industries which use their products, that is the clothing trade, garment works, etc., will be shut down, with the consequent non-employment of hundreds of men and women now in these industries. All theorizing as to making these products here is simply ridiculous. It would take years to establish plants and after they were established, they would be in competition again with the German manufacturers unless the tariff was raised to allow them to work against foreign competition.
The wood dyes have been displaced within the last twenty years by coal tar colors which not only are much faster but easier to manipulate and leave the goods in better condition. We could go back to wood dyes by increasing the output of plants still in existence but if they were increased at all, they couldn’t begin to take care of a fraction of the products now dyed with colors which have replaced the woods. It is like arguing about going back to the hand loom as against the power loom, to talk of going back to dyewoods. Every mill in the United States is vitally interested and any talk of taking export trade from foreigners is out of the question so long as we couldn’t get supplies to satisfy our own market. The chemical works in Germany, even assuming that they have [not?] stopped working, [are crippled?], and I know that plants in which I am interested in Höchst-on-Main, in which seven or eight thousand are employed, are crippled by having probably five thousand called to the colors. This undoubtedly holds good in every other plant in Germany but these factories have enough stock on hand to supply the wants of the world from two to three months, while all those manufacturing countries which include England, Germany, France, Belgium, and Russia are of necessity deprived of these supplies. The only remaining manufacturing countries who are large consumers are the United States, Japan, and China. These goods could be shipped to China and Japan, and to the United States through Holland, and would keep our mills going for at least a year if not another pound were produced in Germany. It is suggested that we get in touch, through our consuls, with these plants which are situated at Höchst-on-the-Main, and Mainkur-on-the-Main, both in the Frankfort district, Ludwigshaven, and Leverkusen on the Rhine in the Cologne district. There is one large plant in Berlin and two in Switzerland but these are not of necessity cut off by water transportation to Rotterdam and dependent upon the railroads. It seems logical, therefore, that if transportation down the Rhine through a neutral country like Holland is possible, we ought to be able to get these goods and keep our mills running. There are certainly men enough left at the works to load the vessels if nothing else. Individual communication with plants is impossible. I haven’t been able to get a word from the works since August 4.