There are six domestic makers of phthalic anhydride, with producing units

at Bridgeville, Pa., Buffalo, N. Y., Philadelphia, Pa., Deepwater Point,

N. J., Saint Louis, Mo., and Detroit, Mich. Five of these firms have been

producing in commercial quantities continuously for a number of years and

it is therefore believed that these companies may continue to produce

without the payment of royalties. New producers using this process,

however, might be at a disadvantage unless licensed to operate without

the payment of royalties by the owner of the patent.

The production of phthalic anhydride has increased remarkably since the

discovery of the vapor phase catalytic process of manufacture. Until 1922

the only large outlet was the coal-tar dye industry. The development of

new uses for phthalic esters, principally dibutyl phthalate, increased

the demand during the period 1922-28. With the drop in price of phthalic

anhydride, resins made from it and glycerin became of commercial interest

and about 1929 their production began to increase sharply. Most of the

increased output since that year is accounted for by its use in alkyd

resins. As previously stated, surface coatings made from these resins

are now applied to practically all “indoor” surfaces, both wood and

metal, and to “outdoor” use on metal. Largely as a result of the growing

popularity of surface coatings of the alkyd type the domestic production

of phthalic anhydride exceeded 45 million pounds in 1937 and may reach

50 million pounds in 1938. This estimate is based on the present trend

of consumption of alkyd resins and current use therein of phthalic

anhydride. Should other polybasic acids be used in greater proportion the

estimate would have to be revised. Considerable research work is being

done on certain polybasic acids, with very promising results in some

instances. Maleic anhydride is being used commercially, as are adipic

acid, malic acid, and succinic acid. Other possibilities include such

acids as citric, tartaric, sebacic, fumaric, and oxalic.

Production in other countries.

Phthalic anhydride is manufactured in Germany, England, France, Italy,

and Japan, but no statistics of foreign production or of international

trade are available. The output in Germany is known to be increasing

rapidly and is believed to be the principal reason for the German embargo

on exports of naphthalene.

In England there are two makers: Imperial Chemical Industries, Ltd., and

Monsanto Chemicals, Ltd. The latter is a branch of the American firm of

the same name.

In Italy, production was started in 1928 by the A. C. N. A. at Cengio.

Capacity is given as 600,000 pounds annually, and the process is

essentially the same as in this country.

Japanese production is estimated at 6 million pounds a year. Nihon

Seuryo’s plant is the principal one, and the Nishijima mill, at Osaka,

the next in importance.

United States foreign trade.

Imports of phthalic anhydride are dutiable under paragraph 27 at 7 cents

per pound and 40 percent ad valorem based on American selling price.

There were practically no imports since the World War until 1937, when

223,431 pounds were imported from England to relieve a temporary shortage.

Exports, if any, are not shown separately in official statistics.

Competitive conditions.

Phthalic anhydride is the cheapest polybasic organic acid and therefore

the most widely used in the production of alkyd resins. The rapid

rise in consumption of surface coatings and finishes made from these

resins presages greater demand for phthalic anhydride (and glycerin)

in the future, particularly if this type of outdoor finish for wood is

successful.

The world-wide shortage of naphthalene, with attendant sharp increases

in price, raises the question of whether there may not be partial or

complete replacement of phthalic anhydride by other polybasic acids

in certain types of alkyd resins. The probability of such replacement

seems remote unless the use of other polybasic acids, at present much

higher priced, so improves the properties of the resins as to give a

superior product. Approximately 100 pounds of naphthalene are required

to produce 109 pounds of phthalic anhydride. Naphthalene at 3 cents per

pound gives phthalic anhydride a raw material cost of 2.75 cents per

pound as compared with 1.45 cents per pound when naphthalene was 1.55

cents per pound. In other words, the increase of 1.5 cents per pound in

naphthalene, meant an increase of only about 1⅓ cents per pound in the

raw material cost of phthalic anhydride, and only approximately ¼ cent

per pound in the raw material cost of an alkyd resin surface coating

containing about 20-percent phthalic anhydride.

POLYBASIC ACIDS OTHER THAN PHTHALIC ANHYDRIDE

Maleic acid and anhydride.

Maleic anhydride is obtained as a byproduct in the manufacture of

phthalic anhydride and as a major product by the vapor phase catalytic

oxidation of benzene. Domestic production, still small compared with

phthalic anhydride, has increased many fold during the past two or three

years. In 1937 there were three producers of maleic anhydride, with an

output totaling 2,114,176 pounds. The uses of maleic acid derivatives

other than in making resins are minor.

Malic acid and malomalic acid.

Malic acid is widely distributed in the vegetable kingdom, occurring

especially in unripe apples. Commercially it is obtained by synthesis.

Domestic production was reported for the first time in 1935. Malomalic

acid is formed by heating malic acid. United States Patent No. 1,091,627

covers a resin made from malic acid and glycerin which will increase

the toughness of phthalate resins. United States Patent No. 1,667,198

suggests the use of malomalic acid to form resins of glass-like

appearance.

Adipic acid.

Adipic acid is made by oxidation of cyclohexanol. When condensed with

glycerin it yields an alkyd resin which is soft and rubbery and which

does not harden when heated. Numerous patents have been granted on the

preparation of adipic acid and its resins. Commercial production of

adipic acid was first reported in 1935, and the output increased in 1936

and in 1937.

Succinic acid and anhydride.

Succinic acid is a white crystalline powder melting at 185° C. and

boiling at 234° C., with decomposition to succinic anhydride. It may be

obtained by the reduction of maleic acid. Condensation with glycerin

gives a resin tougher and more flexible than is obtained with phthalic

anhydride.

In 1937 there were two commercial producers of succinic acid. It is

believed that small quantities are used in combination with phthalic

anhydride in alkyd resins.

Fumaric acid.

Fumaric acid is a white crystalline powder obtained by the prolonged

heating of or by the action of mineral acids on maleic acid. Fumaric acid

and maleic acid are structurally identical and the former decomposes at

about 280° C., forming the latter. In 1937 there was one domestic maker

of fumaric acid.

GLYCERIN

Description and uses.

Glycerin (glycerol) is a clear, colorless or almost colorless, odorless,

syrupy, hygroscopic liquid. It is obtained as a byproduct of the soap and

fatty acid (oleic acid or red oil and stearic acid) industries. Other

sources are insignificant; glycerin can be produced by the fermentation

of carbohydrates such as molasses, but when glycerin prices are low this

process is not profitable. The chief commercial grades of crude glycerin

are “soap lye” glycerin, a byproduct of the soap industry, containing

about 80 percent glycerin, and “saponification” grade, a byproduct of the

fatty acid industry, containing about 88 percent glycerin. Chemically

pure grades contain about 95 percent and dynamite grades about 98.5

percent glycerin. Other grades include “30° yellow distilled” containing

about 96 percent glycerin.

The uses of glycerin are extremely varied, the most important being in

the manufacture of alkyd resins and ester gums; in the manufacture of

nitroglycerin and dynamite; as a moistening, antiseptic, and sweetening

agent in tobacco; in pharmaceutical and medicinal preparations; and in

certain soft drinks, soaps, and inks.

United States production.

The output of both the crude and the refined has increased in recent

years, reaching new highs in 1937. Chemically pure glycerin constitutes

about 60 percent of the total refined output and dynamite and other

grades about 40 percent. In the production statistics shown in table 48,

grades such as yellow distilled are included with the dynamite grade.

Since large soap makers refine their own crude glycerin, the sale of

crude is only a small part of the total output.

Table 48 shows domestic production of glycerin by grades and table 49

production for sale.

TABLE 48.—_Glycerin: United States production by grades, in specified

years, 1919-37_

[In thousands of pounds]

-------------+---------------+--------------------------------

| | Refined

Census year | Crude 80 +------------+----------+--------

| percent basis | Chemically | Dynamite |

| | pure grade | grade | Total

-------------+---------------+------------+----------+--------

1919 | 61,793 | 36,693 | 25,655 | 62,348

1920 | 54,688 | 32,860 | 31,571 | 64,431

1923 | 99,579 | 47,992 | 52,369 | 100,361

1924 | 95,154 | 53,243 | 37,368 | 90,611

1925 | 103,407 | 55,448 | 52,658 | 108,106

1926 | 116,369 | 64,460 | 49,579 | 114,039

1927 | 128,209 | 59,126 | 49,266 | 108,392

1928 | 130,499 | 66,419 | 46,622 | 113,041

1929 | 140,080 | 66,791 | 58,981 | 125,772

1930 | 138,675 | 69,654 | 50,974 | 120,628

1931 | 140,002 | 70,528 | 43,366 | 113,894

1932 | 133,919 | 63,624 | 41,539 | 105,163

1933 | 119,812 | 58,585 | 45,534 | 104,119

1934 | 153,115 | 80,359 | 48,553 | 128,912

1935 | 141,185 | 74,705 | 48,685 | 123,390

1936 | 154,096 | 85,386 | 47,535 | 132,921

1937 | 167,882 | 92,889 | 51,794 | 144,683

-------------+---------------+------------+----------+--------

Source: Bureau of the Census, U. S. Department of Commerce.

TABLE 49.—_Glycerin: United States production for sale, in specified

years, 1919-35_

--------+-------------------------------+--------------------------------

| Crude[1] | Refined

+----------+------------+-------+----------+-------------+-------

Year | | | Value | | | Value

| Quantity | Value | per | Quantity | Value | per

| | | pound | | | pound

--------+----------+------------+-------+----------+-------------+-------

| _1,000 | | | _1,000 | |

| pounds_ | |_Cents_| pounds_ | |_Cents_

1919 | 18,228 | $2,482,779 | 13.6 | 47,377 | $11,461,213 | 24.2

1923 | 27,444 | 3,124,470 | 11.4 | 74,105 | 12,214,012 | 16.5

1925 | 30,735 | 4,258,351 | 13.9 | 94,303 | 16,991,213 | 18.0

1927 | 27,000 | 3,942,991 | 14.6 | 89,585 | 19,184,806 | 21.4

1929 | 28,790 | 2,358,031 | 8.2 | 113,140 | 12,715,641 | 11.2

1931 | 27,530 | 1,673,733 | 6.1 | 102,510 | 10,316,347 | 10.1

1931[2]| 25,964 | 1,551,573 | 6.0 | 101,615 | 10,222,850 | 10.1

1933 | 22,161 | 1,191,000 | 5.4 | 107,853 | 7,915,000 | 7.3

1935 | 24,042 | 2,366,481 | 9.8 | 121,262 | 12,984,684 | 10.7

[1] By chemical and soap manufacturing plants only.

[2] Adjusted for comparison with 1933.

Source: Bureau of the Census, U. S. Department of Commerce.

Crude glycerin is produced by about 200 soap makers and by about 12

producers of fatty acids. Soap factories are located in more than half

the States, the principal ones being in Ohio, New York, Massachusetts,

New Jersey, Illinois, California, and Pennsylvania; the fatty acid plants

are located in five or six States, Ohio being of chief importance. Most

of the smaller producers sell their output of crude glycerin. Refiners of

glycerin are few in number compared to the producers of crude. The larger

soap plants refine their own crude glycerin and in addition purchase

crude from other plants for refining.

The process of recovering glycerin consists of chemically treating weak

glycerin solutions separated from the soap or fatty acids, and then

concentrating and distilling under reduced pressures. The average yield

is less than 10 percent but varies from about 9 to 12 percent, depending

upon the kinds of oils and fats used. When prices are high every effort

is made to recover the maximum yield of glycerin; when prices are low,

cost of chemical treatment and distillation makes it advisable to allow

more glycerin to remain in the soap or to discard the weak solutions.

Production in other countries.

As in the United States, glycerin is produced in foreign countries, as

a byproduct of the soap and fatty acid industries. The United Kingdom,

Germany, and France, and recently the Soviet Union, are the leading

producers. The output in each of these countries is estimated to be less

than a third of the output in the United States. The British Census of

1930 reports the production of crude glycerin in the United Kingdom at

44 million pounds. Authentic statistics on production in other leading

countries are not available, but most estimates show lower figures than

for the United Kingdom. In some European countries the normal production

of soap results in more glycerin than can be utilized.

International trade.

France is the principal net exporter of crude glycerin and the United

Kingdom of refined glycerin. The Netherlands, Germany, and France are

also net exporters of refined glycerin. The international trade of

certain of the more important producing countries in crude and refined

glycerin is shown in table 50.

TABLE 50.—_Glycerin: Imports and exports of principal countries, 1931 and

1933-37_

[In thousands of pounds]

--------------------+---------------+---------------+---------------

| 1931 | 1933 | 1934

+-------+-------+-------+-------+-------+-------

|Imports|Exports|Imports|Exports|Imports|Exports

--------------------+-------+-------+-------+-------+-------+-------

Crude: | | | | | |

UNITED STATES[1]| 8,782| ([2]) | 4,988| ([3]) | 13,722| ([3])

United Kingdom | 1,702| 2,662| 4,778| 2,951| 472| 2,825

Germany | 4,120| 2,313| 5,232| 2,939| 4,746| 1,599

France | 1,269| 7,962| 426| 3,488| | ([2])

Netherlands | 5,133| 859| 3,027| 2,300| 2,605| 3,796

Refined: | | | | | |

UNITED STATES | 1,966| 328| 2,776| ([3]) | 2,214| ([3])

United Kingdom | 2,519| 9,926| 822| 19,834| 230| 19,134

Germany | 102| 10,092| 57| 3,562| 224| 3,818

France | 178| 3,989| 109| 1,246| 51| 12,249

Netherlands | 618| 8,337| 1,144| 6,620| 1,008| 5,955

Belgium | 534| 758| 1,193| 429| 1,206| 2,360

+-------+-------+-------+-------+-------+-------

| 1935 | 1936 | 1937[4]

+-------+-------+-------+-------+-------+-------

|Imports|Exports|Imports|Exports|Imports|Exports

+-------+-------+-------+-------+-------+-------

Crude: | | | | | |

UNITED STATES[1]| 4,092| ([2]) | 8,686| ([2]) | 10,171| ([2])

United Kingdom | 1,119| 2,365| 2,322| 3,070| ([2]) | ([3])

Germany | 4,091| 326| 8,247| 122| 13,567| 578

France | 862| ([2]) | 1,176| ([2]) | 164| ([2])

Netherlands | 5,441| 4,912| 7,185| 5,644| 9,127| 6,865

Refined: | | | | | |

UNITED STATES | 69| 3,354| 3,448| 1,146| 7,535| 1,375

United Kingdom | 2| 15,032| | 12,991| ([3]) | 16,029

Germany | 108| 1,571| 30| 1,155| 71| 100

France | 4| 12,118| 10| 9,269| 9| 17,750

Netherlands | 694| 5,516| 739| 8,885| 500| 10,961

Belgium | 998| 1,945| 188| 1,981| 651| 1,858

--------------------+-------+-------+-------+-------+-------+-------

[1] Imports from Cuba and the Philippines not included in the

United States statistics. These imports, consisting of crude

glycerin, averaged about 2,200,000 pounds annually for the period

1931-37.

[2] Included, if any, with refined.

[3] Not separately reported.

[4] Preliminary.

Source: Official statistics of each country.

United States imports.

Under the Tariff Act of 1922, paragraph 43, imports of crude glycerin

were dutiable at 1 cent per pound and refined glycerin at 2 cents per

pound. The Tariff Act of 1930, paragraph 42, carries the same rates.

Imports of crude glycerin from Cuba enjoy a preferential rate; they were

dutiable at 0.8 cent per pound up to September 3, 1934, and at 0.4 cent

per pound thereafter. Under the trade agreement with the Netherlands,

effective February 1, 1936, the rate on refined glycerin was reduced from

2 cents to 1⅔ cents per pound (⅔ cent plus regular rate on crude, but not

more than 1⅔ cents). Under the trade agreement with France, effective

June 15, 1936, the rate on crude glycerin was reduced from 1 cent to 0.8

cent, which automatically further reduced the rate on refined glycerin

to 1¹⁴⁄₃₀ (approximately 1.47) cents per pound. The rates under these

last two trade agreements are generalized to all countries which do not

discriminate against our commerce.

The amount of glycerin supplied by imports has greatly declined. Prior

to the World War, imports of crude glycerin ranged from 30 million to

40 million pounds annually. After the war imports were less and after

1929 declined to comparatively small quantities, except in 1934. Imports

of refined glycerin were relatively unimportant until 1924, except in

1920. They amounted to almost 11 million pounds in 1926, but declined

thereafter. Some of the imports are reexported with benefit of drawback.

In 1930, 1,006,164 pounds of imported crude glycerin and 396,792 pounds

of imported refined were thus reexported, chiefly in the refined grades.

Corresponding figures in 1932 and 1933 were 197,331 and 111,753 pounds of

crude, and 40,011 and 10,056 pounds of refined.

Statistics of imports other than from Cuba and the Philippines are given

in table 51. Table 52 shows imports of crude from Cuba and table 53

imports of crude from the Philippines.

TABLE 51.—_Glycerin: United States imports[1] for consumption 1919-20 and

1923-37_

-------------+-------------+---------+---------+----------+-------------

| |Quantity,| | | Computed

Calendar year| Rate of | 1,000 | Value |Unit value| ad valorem

| duty | pounds | | |rate, percent

-------------+-------------+---------+---------+----------+-------------

| Crude

+-------------+---------+---------+----------+-------------

1919 | 1 cent per | 3,564| $417,774| $0.117| 8.5

| pound | | | |

1920 | do | 22,272|2,912,430| .131| 7.7

1923 | do | 14,120|1,382,249| .098| 10.2

1924 | do | 13,659|1,413,593| .103| 9.7

1925 | do | 18,624|2,161,413| .116| 8.6

1926 | do | 26,729|3,849,222| .144| 6.9

1927 | do | 13,666|2,026,175| .148| 6.7

1928 | do | 3,889| 282,615| .073| 13.8

1929 | do | 13,681| 786,598| .058| 17.4

1930 | do | 10,022| 577,406| .058| 17.4

1931 | do | 8,782| 446,897| .051| 19.7

1932 | do | 3,952| 145,329| .037| 27.2

1933 | do | 4,988| 176,080| .035| 28.3

1934 | do | 13,722| 932,389| .068| 14.7

1935 | do | 4,092| 353,925| .086| 11.4

1936 | Various[2] | 8,686| 936,312| .108| 7.7

1937[3] | do | 10,171|1,716,351| .169| 4.8

+-------------+---------+---------+----------+-------------

| Refined

+-------------+---------+---------+----------+-------------

1919 | 2 cents per | 39| 4,471| .114| 17.5

| pound | | | |

1920 | do | 5,382|1,170,030| .217| 9.2

1923 | do | 586| 76,994| .131| 15.2

1924 | do | 1,501| 229,897| .153| 13.1

1925 | do | 2,044| 305,796| .150| 13.4

1926 | do | 10,839|2,328,936| .215| 9.3

1927 | do | 8,289|1,697,330| .205| 9.8

1928 | do | 4,218| 450,247| .107| 18.7

1929 | do | 5,358| 489,575| .091| 21.9

1930 | do | 3,137| 265,093| .085| 23.7

1931 | do | 1,966| 140,975| .072| 27.9

1932 | do | 2,348| 142,359| .061| 33.0

1933 | do | 2,776| 166,991| .060| 33.2

1934 | do | 2,214| 208,989| .094| 21.2

1935 | do | 69| 8,277| .121| 16.6

1936 |Various[2] | 3,447| 594,036| .172| 8.5

1937[3] | do | 7,535|1,827,189| .242| 6.2

-------------+-------------+---------+---------+----------+-------------

[1] Does not include products of Cuba (duty less 20 percent) and

the Philippine Islands (free).

[2] For changes in rates, see p. 105.

[3] Preliminary.

Source: Foreign Commerce and Navigation of the United States.

TABLE 52.—_Crude glycerin: United States imports (for consumption) from

Cuba, in specified years, 1919-37_

-------------+-------------------+--------+-------+----------+----------

| | | | | Computed

Calendar year| Rate of duty |Quantity| Value |Unit value|ad valorem

| | | | | rate

-------------+-------------------+--------+-------+----------+----------

| | _1,000 | | |

| | pounds_| | |_Percent_

1919 |⁸⁄₁₀ cent per pound| 249|$27,023| $0.108| 7.4

1920 | do | 139| 21,941| .158| 5.1

1923 | do | 429| 47,438| .111| 7.2

1924 | do | 768| 85,971| .112| 7.2

1925 | do | 624| 73,538| .118| 6.8

1926 | do | 835|134,893| .162| 5.0

1927 | do | 1,119|170,723| .153| 5.2

1928 | do | 690| 48,963| .071| 11.3

1929 | do | 921| 60,158| .065| 12.2

1930 | do | 843| 53,905| .064|

1931 | do | 1,171| 67,709| .058| 13.8

1932 | do | 1,232| 50,147| .041| 19.7

1933 | do | 1,216| 56,737| .047| 17.2

1934 |Various[1] | 1,178| 92,692| .079|

1935 |⁴⁄₁₀ cent per pound| 2,551|228,011| .089| 4.5

1936 | do | 2,160|230,340| .107| 3.8

1937[2] | do | 2,477|381,683| .154|

-------------+-------------------+--------+-------+----------+----------

[1] Trade agreement of ⁴⁄₁₀ cent per pound, effective Sept. 3,

1934.

[2] Preliminary.

Source: Foreign Commerce and Navigation of the United States.

TABLE 53.—_Crude glycerin: United States imports (for consumption) from

Philippine Islands 1925-37_

-------------+-------------+--------------+-------+----------

Calendar year| Rate of duty| Quantity | Value |Unit value

-------------+-------------+--------------+-------+----------

| |_1,000 pounds_| |

1925 |Free | 16| $1,418| $0.089

1926 | do | 95| 12,115| .128

1927 | do | 159| 18,261| .115

1928 | do | 337| 24,327| .072

1929 | do | 250| 16,796| .067

1930 | do | 279| 18,805| .067

1931 | do | 180| 10,993| .061

1932 | do | 198| 9,150| .046

1933 | do | 268| 14,078| .052

1934 | do | 181| 14,984| .083

1935 | do | 1,579| 74,798| .047

1936 | do | 304| 32,708| .108

1937[1] | do | 793|145,348| .183

-------------+-------------+--------------+-------+----------

[1] Preliminary.

Source: Foreign Commerce and Navigation of the United States.

France has usually been the principal source of imports of crude

glycerin, but since 1935 Cuba has ranked first. Cuban imports enter at a

preferential rate of duty (0.8 cent per pound on crude until September 3,

1934, when it was reduced to 0.4 cent). Receipts from the Philippines are

duty-free. Imports by countries for recent years are given in table 98,

page 151.

The Netherlands has generally been the chief source of imports of refined

glycerin, although the United Kingdom was first in 1934 and 1935 and

France first in 1937. Imports by countries for recent years are given in

table 99, page 152.

United States exports.

Exports of glycerin are insignificant compared with production and are

small compared with imports. They go chiefly to Mexico and Canada,

and, at times, also to Cuba, the Philippines, and Chile. Geographic

propinquity is probably the principal factor accounting for these

exports, although it is possible that some exports are destined to

foreign branch factories of an American company for making dynamite.

Crude and refined grades were not separately distinguished in export

statistics, but it is known that exports consist principally, if not

entirely, of the refined. In 1933 and 1934 glycerin exports were not

reported. Statistics of exports are given in table 54.

TABLE 54.—_Glycerin: United States exports, in specified years, 1919-37_

Synthetic resins and their raw materials A survey of the types and uses of synthetic resins, the organization of the industry, and the trade in resins and raw materials, with particular references to factors essential to tariff consideration. Under the general provisions of section 332, title III, part II, Tariff act of 1930. · 第 14 / 22 段