Chapter VIII: Part 8

There are four domestic producers of cresylic acid with recovery and refining units at Pittsburgh, Pa., Philadelphia, Pa., Indianapolis, Ind., and Follansbee, W. Va. The last three mentioned are refining plants operated in conjunction with a number of tar distillation units widely scattered throughout the country. These units usually recover crude tar-acid fractions in the distillation of tar and ship them to these refining plants for separation and refining. All in this group are purchasers of coal tar. The fourth producer operates a byproduct recovery unit in connection with the company’s coke-oven operations. Part of the coal tar produced is distilled to recover the several products, including creosote oil, tar acids, and naphthalene, and the residual pitch is mixed with the remaining undistilled tar and used for fuel. The shortage of tar acids and naphthalene in 1936 caused this producer to begin the topping of tar.

Foreign production.

The cresols are produced in the United Kingdom, Germany, France, the Netherlands, Belgium, and other European countries. Coal tar recovered in the United Kingdom is principally gas tar, which is much richer in tar acids than coke-oven tar, the principal source in the United States. This is true because low temperature carbonization of coal yields greater quantities of tar acids than are obtained in the tar from byproduct coke ovens. Exports to the United States are chiefly mixtures which can enter as crude cresylic acid.

Production of cresol in Germany in recent years is shown in table 69.

TABLE 69.—_Cresol: German production, in specified years_

-------+------------
Year |1,000 pounds
-------+------------
1929 | 23,814
1931[1]| 15,435
1933 | 11,780
1934 | 10,476
-------+------------

[1] Includes 2,866,000 pounds of separated ortho, meta, and para
cresols.

Source: Consular reports.

German imports and exports of cresol, in recent years, are shown in table 70.

TABLE 70.—_Cresol: German imports and exports, in specified years_

----+--------+--------
Year|Imports |Exports
----+--------+--------
|_1,000 |_1,000
| pounds_| pounds_
1929| 2,037 | 8,494
1930| 1,277 | 6,712
1931| 1,874 | 7,980
1932| 1,541 | 3,669
1933| 1,832 | 4,970
1934| 1,960 | 6,345
1935| 2,117 | 8,528
1936| 3,737 | 4,531
1937| 1,787 | 4,423
----+--------+--------

Source: Consular reports (1929-33) and official German statistics
(1934-37).

The output of cresols in Czechoslovakia in recent years is shown in table 71.

TABLE 71.—_Cresol: Production in Czechoslovakia, in specified years_

-----+----------
Year | Quantity
-----+----------
| _1,000
| pounds_
1928 | 1,984
1931 | 1,477
1932 | 1,102
1933 | 1,599
1934 | 1,918
-----+----------

Source: Consular reports.

Cresylic acid is recovered in all the countries of Europe, Great Britain and Germany being the leading producers and the principal exporters. Increasing demand in these countries for synthetic resins made from cresylic acid has greatly reduced the quantities available for export in recent years.

Great Britain is probably the world’s largest producer of cresylic acid, and for many years has been the principal exporter to the United States. This position is due to the large available supply of gas-house tar, and to an ample market for all the products of tar distillation. In 1935 the tar distilled in England, Wales, and Scotland totaled 360 million gallons, of which 55 percent was gas-house tar.

British production of all grades of cresylic acid averages between 35 million and 42 million pounds annually, of which from 12 million to 20 million pounds are exported. Many British producers market their tar products through pools and associations. There is a cresylic acid pool, a phenol pool, and at least two creosote oil export associations, a pitch marketing association, and a benzol association. One of the principal grades of cresylic acid produced in Great Britain is “American duty-free specification.”

Table 72 shows British exports of cresylic acid, by countries, in recent years.

TABLE 72.—_Cresylic acid: British exports, by countries, 1933-37_

-------------------+------+------+------+------+------
Destination | 1933 | 1934 | 1935 | 1936 | 1937
-------------------+------+------+------+------+------
| Quantity (in thousands of pounds)
+------+------+------+------+------
UNITED STATES | 3,616| 5,783| 6,116|11,296|([1])
Chile | 1,381| 2,958| 2,814| 662|([1])
France | 358| 87| 214| 189|([1])
Japan | 632| 203| 685| 2,002|([1])
All other countries| 5,464| 6,965| 7,333| 9,250|([1])
+------+------+------+------+------
Total |11,451|15,997|17,162|23,399|26,697
+------+------+------+-------------
| Value (in thousands of dollars)
+------+------+------+------+------
UNITED STATES | 147| 277| 255| 620|([1])
Chile | 28| 89| 87| 31|([1])
France | 21| 5| 20| 14|([1])
Japan | 38| 20| 43| 118|([1])
All other countries| 189| 307| 330| 537|([1])
+------+------+------+------+------
Total | 422| 698| 734| 1,321| 2,262
-------------------+------+------+------+------+------

[1] Not available.

Source: Official British statistics.

Imports into the United States.

_Rates of duty._—Prior to September 8, 1916, the cresols were imported free of duty. Since that date they have been subject to the tariff treatment shown in table 73.

TABLE 73.—_The cresols: Rates of duty upon United States imports, 1916-37_

------------------+------------------------------------+-----------------
| Rate of duty |
Period +----------+-------------+-----------+ Authority
|Less than | 75 to 90 | 90 percent|
|75 percent| percent | or more |
| pure | pure | pure |
------------------+----------+-------------+-----------+-----------------
To Sept. 8, 1916. |Free |Free |Free |Free under par.
| | | | 452, Tariff Act
| | | | of 1913, and
| | | | under previous
| | | | acts.
| | | |
Sept. 9, 1916, to | do | do |15 percent |Revenue Act of
Sept. 8, 1921. | | | ad | 1916.
| | | valorem |
| | | and 2½ |
| | | cents per|
| | | pound. |
| | | |
Sept. 9, 1921, to | do | do |15 percent |Emergency Tariff
Sept. 21, 1922. | | | ad | Act of 1921.
| | | valorem | From May 28,
| | | and 2 | 1921, to Sept.
| | | cents per| 21, 1922,
| | | pound. | imports
| | | | prohibited
| | | | except when
| | | | not obtainable
| | | | in sufficient
| | | | quantities or
| | | | on reasonable
| | | | terms as to
| | | | quality, price,
| | | | and terms of
| | | | delivery.
| | | |
Sept. 22, 1922, to| do |55 percent ad|55 percent |Free under par.
Sept. 21, 1924. | | valorem and| ad | 1549 and
| | 7 cents per| valorem | dutiable under
| | pound.[1] | and 7 | par. 27 of
| | | cents per| Tariff Act of
| | | pound.[1]| 1922.
| | | |
Sept. 22, 1924, to| do |40 percent ad|40 percent |Same; ad valorem
June 17, 1930. | | valorem and| ad | reduced to 40
| | 7 cents per| valorem | percent under
| | pound.[1] | and 7 | provisions of
| | | cents per| the Tariff Act
| | | pound.[1]| of 1922.
| | | |
June 18, 1930, to | do | do |20 percent |Free under par.
date. | | | and 3½ | 1651 and
| | | cents per| dutiable under
| | | pound.[1]| par. 27 of the
| | | | Tariff Act of
| | | | 1930.
------------------+----------+-------------+-----------+-----------------

[1] Ad valorem based on American selling price or United States
value.

Under the Tariff Act of 1930 metacresol, orthocresol, and paracresol as such or in mixture, if less than 75 percent pure, would be imported free under paragraph 1651.[23] If from 75 to 90 percent, they are dutiable under paragraph 27 at 7 cents a pound and 40 percent based upon American selling price.[24] And if 90 percent pure or more, they are dutiable under paragraph 27 at 3½ cents per pound and 20 percent, based upon American selling price.[25]

The duties on cresylic acid in recent years are shown in table 74. Under the Tariff Act of 1930, cresylic acid less than 75 percent pure is free under paragraph 1651.[23] If more than 75 percent pure it is dutiable under paragraph 27 (b) at 3½ cents per pound and 20 percent, based on American selling price.[26]

TABLE 74.—_Cresylic acid: Rates of duty upon United States imports, 1916-37_

------------------+----------------------------+------------------------
| Rate of duty |
+----------+-----------------+
Period | Less than| | Authority
|75 percent| 75 percent pure |
| pure | or more |
------------------+----------+-----------------+------------------------
To Sept. 8, 1916. |Free |Free |Free under par. 452 of
| | | Tariff Act of 1913
| | | and previous acts.
| | |
Sept. 9, 1916, to | do |15 percent ad |Revenue Act of 1916.
Sept. 8, 1921. | | valorem and |
| | 2½ cents per |
| | pound. |
| | |
Sept. 9, 1921, to | do |15 percent ad |Emergency Tariff Act of
Sept. 21, 1922. | | valorem and | 1921. From May 28,
| | 2 cents per | 1921, to Sept. 21,
| | pound. | 1922, imports
| | | prohibited except
| | | when not obtainable
| | | in sufficient
| | | quantities or on
| | | reasonable terms as
| | | to quality, price,
| | | and terms of delivery.
| | |
Sept. 22, 1922, to| do |55 percent ad |Free under par. 1549
Sept. 21, 1924. | | valorem and | and dutiable under
| | 7 cents per | par. 27 of the Tariff
| | pound.[1] | Act of 1922.
| | |
Sept. 22, 1924, to| do |40 percent ad |Same; ad valorem
Aug. 18, 1927. | | valorem and | reduced to 40 percent
| | 7 cents per | under provisions of
| | pound.[1] | the Tariff Act of
| | | 1922.
| | |
Aug. 19, 1927, to| do |20 percent ad |Duty reduced by
June 17, 1930. | | valorem and | Presidential
| | 3½ cents per | proclamation.
| | pound.[1] |
| | |
June 18, 1930, to | do |20 percent ad |Free under par. 1651 and
date. | | valorem and | dutiable under par. 27
| | 3½ cents per | of the Tariff Act of
| | pound.[1] | 1930.
------------------+----------+-----------------+------------------------

[1] Ad valorem based on American selling price or United States
value.

_Import statistics._—Imports of the separated and mixed cresols are combined in official statistics. Table 75 shows imports of the cresols “90 percent pure or more.” There have been no recorded imports of less pure grades.

Tables 76, 77, and 78 show, by principal sources, imports of metacresol, orthocresol, and paracresol, as obtained from invoice analyses by the United States Tariff Commission. The sum of the three tabulations does not equal the total shown for all cresols in table 75. The difference in 1934 of 38,744 pounds valued at $12,906 is accounted for by mixed cresols. Undoubtedly the differences in other years may be similarly accounted for.

TABLE 75.—_Metacresol, orthocresol, and paracresol, 90 percent pure or more: United States imports for consumption, 1920, and 1923-37_

-----------------+-------------------+--------+------+------+----------
| | | | Unit | Computed
Calendar year | Rate of duty[1] |Quantity| Value| value|ad valorem
| | | | | rate
-----------------+-------------------+--------+------+------+----------
| |_Pounds_| | | _Percent_
| | | | |
1920 |2½ cents per pound | 2,444|$2,230|$0.912| 17.7
| + 15 percent | | | |
1923 |7 cents per pound | 8,754| 5,410| .618| 66.3
| + 55 percent | | | |
1924 |} do | 15,326| 1,995| .130| 108.8
|}7 cents per pound | 1,000| 663| .663| 50.6
| + 40 percent | | | |
1925 | do | 34,874| 5,741| .165| 82.5
1926 | do | 105,238|15,040| .143| 89.0
1927 | do | 174,094|35,054| .201| 74.8
1928 | do | 207,897|33,638| .162| 83.3
1929 | do | 227,974|32,098| .141| 89.8
1930: | | | | |
Jan. 1-June 17 | do | 131,134|14,973| .114| 101.3
June 18-Dec. 31|3½ cents per pound | 71,183|11,762| .165| 41.2
| + 20 percent | | | |
| +--------+------+------+----------
Total, 1930 | | 202,317|26,735| .132| 74.9
1931 | do | 151,571|26,901| .177| 39.7
1932 | do | 83,848|18,530| .221| 35.8
1933 | do | 48,511|16,205| .334| 30.5
1934 | do | 124,598|34,361| .276| 32.7
1935 | do | 65,468|18,290| .279| 32.5
1936 | do | 83,273|27,686| .332| 30.5
1937[2] | do | 167,278|36,227| .217| 36.2
-----------------+-------------------+--------+------+------+----------

[1] Ad valorem rate based on American selling price or United
States value under the Tariff Acts of 1922 and 1930.

[2] Preliminary.

Source: Foreign Commerce and Navigation of the United States.

TABLE 76.—_Metacresol: United States imports for consumption by principal sources, in specified years_

----------------------------+-----+------+------+------+------+---------
Imported from | 1929 | 1931| 1933 | 1934 | 1935 | 1936 | 1937[1]
-------------------+--------+-----+------+------+------+------+---------
| Quantity (pounds)
+--------+-----+------+------+------+------+---------
United Kingdom | 113,057| 916|15,769|21,054| 6,500| 6,800| 40,878
Germany | 3,235| | 4,432| | | |
All other countries|[2]1,106| | | | | |[3]11,025
+--------+-----+------+------+------+------+---------
Total | 117,398| 916|20,201|21,054| 6,500| 6,800| 51,903
+--------+-----+------+------+------+------+---------
| Invoice value
+--------+-----+------+------+------+------+---------
United Kingdom | ([4]) |([4])|$5,264|$8,400|$2,645|$2,589| $6,951
Germany | ([4]) |([4])| 1,548| | | |
All other countries| ([4]) |([4])| | | | | [3]4,200
+--------+-----+------+------+------+------+---------
Total | | | 6,812| 8,400| 2,645| 2,589| 11,151
+--------+-----+------+------+------+------+---------
| Invoice unit value
+--------+-----+------+------+------+------+---------
United Kingdom | ([4]) |([4])|$0.334|$0.399|$0.407|$0.380| $0.170
Germany | ([4]) |([4])| .349| | | |
All other countries| ([4]) |([4])| | | | | .381
+--------+-----+------+------+------+------+---------
Average | | | .337| .399| .407| .380| .215
+--------+-----+------+------+------+------+---------
| Percent of total quantity
+--------+-----+------+------+------+------+---------
United Kingdom | 96.30|100.0| 78.06| 100.0| 100.0| 100.0| 78.76
Germany | 2.76| | 21.94| | | |
All other countries| 2.94| | | | | | [3]21.24
+--------+-----+------+------+------+------+---------
Total | 100.00|100.0|100.00| 100.0| 100.0| 100.0| 100.00
-------------------+--------+-----+------+------+------+------+---------

[1] Preliminary.

[2] Netherlands.

[3] Switzerland.

[4] Not available.

Source: Invoice analyses, compiled by U. S. Tariff Commission.

TABLE 77.—_Orthocresol: United States imports for consumption, by principal sources, in specified years_

-------------------+-------+------+------+------+------+------+-------
Imported from— | 1929 | 1931 | 1933 | 1934 | 1935 | 1936 |1937[1]
-------------------+-------+------+------+------+------+------+-------
| Quantity (pounds)
+-------+------+------+------+------+------+-------
United Kingdom |105,790|79,198|19,548|25,855|29,120|33,816|112,108
Germany | 82,859| 5,914| | 10| 10| |
France | | | | | | 4,480|
All other countries| 30,600| | | | | |
+-------+------+------+------+------+------+-------
Total |219,249|85,112|19,548|25,865|29,130|38,296|112,108
+-------+------+------+------+------+------+-------
| Invoice value
+-------+------+------+------+------+------+-------
United Kingdom |([2]) |([2]) |$1,591|$2,707|$2,529|$3,178|$14,940
Germany |([2]) |([2]) | | 4| 4| |
France | | | | | | 336|
+-------+------+------+------+------+------+-------
Total | | | 1,591| 2,711| 2,533| 3,514| 14,940
+-------+------+------+------+------+------+-------
| Invoice unit value
+-------+------+------+------+------+------+-------
United Kingdom |([2]) |([2]) |$0.081|$0.105|$0.087|$0.094| $0.133
Germany |([2]) |([2]) | | .400| .400| |
France | | | | | | .075|
+-------+------+------+------+------+------+-------
Average | | | .081| .105| .087| .092| .133
+-------+------+------+------+------+------+-------
| Percent of total quantity
+-------+------+------+------+------+------+-------
United Kingdom | 48.25| 93.05| 100.0| 99.96| 99.97| 88.30| 100.00
Germany | 37.79| 6.95| | .04| .03| |
France | | | | | | 11.70|
All other countries| 13.96| | | | | |
+-------+------+------+------+------+------+-------
Total | 100.00|100.00| 100.0|100.00|100.00|100.00| 100.00
-------------------+-------+------+------+------+------+------+-------

[1] Preliminary.

[2] Not available.

Source: Invoice analyses, compiled by U. S. Tariff Commission.

TABLE 78.—_Paracresol: United States imports for consumption, by principal sources, in specified years_

---------------+-----+------+------+------+------+-------+-------
Imported from— | 1929| 1931 | 1933 | 1934 | 1935 | 1936 |1937[1]
---------------+-----+------+------+------+------+-------+-------
| Quantity (pounds)
+-----+------+------+------+------+-------+-------
United Kingdom |2,587| 458| 6,972|16,889|16,625| 32,666| 14,338
Netherlands | |11,243| | | | |
Germany | | | | 8,818|11,023| 6,076|
France | | | |13,228| 5| 6| 4
+-----+------+------+------+------+-------+-------
Total |2,587|11,701| 6,972|38,935|27,653| 38,748| 14,342
+-----+------+------+------+------+-------+-------
| Invoice value
+-----+------+------+------+------+-------+-------
United Kingdom |([2])|([2]) |$2,652|$4,797|$4,485|$10,739| $5,415
Netherlands |([2])|([2]) | | | | |
Germany |([2])|([2]) | | 1,921| 3,090| 3,079|
France |([2])|([2]) | | 3,626| 7| 7| 3
+-----+------+------+------+------+-------+-------
Total | | | 2,652|10,344| 7,582| 13,825| 5,418
+-----+------+------+------+------+-------+-------
| Invoice unit value
+-----+------+------+------+------+-------+-------
United Kingdom |([2])|([2]) |$0.380|$0.284|$0.270| $0.329| $0.378
Netherlands |([2])|([2]) | | | | |
Germany |([2])|([2]) | | .218| .280| .506|
France |([2])|([2]) | | .274| 1.400| 1.167| .750
+-----+------+------+------+------+-------+-------
Average | | | .380| .266| .274| .357| .378
+-----+------+------+------+------+-------+-------
| Percent of total quantity
+-----+------+------+------+------+-------+-------
United Kingdom |100.0| 3.92| 100.0| 43.38| 60.12| 84.30| 99.97
Netherlands | | 96.08| | | | |
Germany | | | | 22.65| 39.86| 15.68|
France | | | | 33.97| .02| .02| .03
+-----+------+------+------+------+-------+-------
Total |100.0|100.00| 100.0|100.00|100.00| 100.00| 100.00
---------------+-----+------+------+------+------+-------+-------

[1] Preliminary.

[2] Not available.

Source: Invoice analyses, compiled by U. S. Tariff Commission.

The processes for recovery of the cresols (fractional distillation) usually yield products more than 75 percent pure and most of the consumers of mixed or prepared cresols require products of high purity. This explains why there are no imports less than 75 percent pure, notwithstanding that they are duty-free under paragraph 1651.

Under the act of 1930 cresols of 90 percent or greater purity are assessed for duty at 20 percent ad valorem and 3½ cents per pound while cresols 75.1 to 89.9 percent pure are assessed for duty at 40 percent ad valorem and 7 cents per pound. Naturally, since the duty on imports below 90 percent pure is double that on imports over 90 percent pure there are no imports of the former.

Imports of crude cresylic acid are shown in table 79 and those of refined cresylic acid in table 80. Imports by principal sources are shown in tables 81 and 82, for crude and refined, respectively.

TABLE 79.—_Crude cresylic acid: United States imports for consumption, 1924-37_

-------+-----------+---------+-------
Year |Quantity[1]| Value | Unit
| | | value
-------+-----------+---------+-------
| _Pounds_ | |
1924 | 2,327,528| $157,643|$0.068
1925 | 2,163,557| 122,742| .057
1926 | 5,702,740| 331,550| .058
1927 | 9,136,516| 567,802| .062
1928 | 10,687,109| 678,177| .063
1929 | 17,856,765| 952,110| .053
1930 | 9,009,674| 501,418| .056
1931 | 4,937,078| 244,631| .050
1932 | 4,077,700| 164,379| .040
1933 | 5,523,733| 178,824| .032
1934 | 7,163,511| 284,051| .040
1935 | 6,849,113| 265,485| .039
1936 | 13,476,427| 722,575| .054
1937[2]| 16,360,213|1,219,268| .075
-------+-----------+---------+-------

[1] Conversion factor—8.5 pounds to gallon.

[2] Preliminary.

Source: Foreign Commerce and Navigation of the United States.

TABLE 80.—_Refined cresylic acid: United States imports for consumption, in specified years, 1919-37_

------------------+---------------+------------+-------+------+----------
| | | | Unit | Computed
Calendar year | Rate of duty | Quantity | Value | value|ad valorem
| | | | | rate
------------------+---------------+------------+-------+------+----------
| | _Pounds_ | | | _Percent_
1919 |2½ cents per | 2,061| $264|$0.128| 34.5
| pound plus | | | |
| 15 percent. | | | |
1920 | do. | 1,040| 244| .235| 25.7
1923 |7 cents per | 2,815| 257| .091| 131.7
| pound plus | | | |
| 55 percent.[1]| | | |
1924: | +============+=======+======+==========
Jan. 1-Sept. 21 | do.[1] | 62,869| 15,169| .241| 84.0
Sept. 22-Dec. 31|7 cents per | 378,777| 29,066| .077| 131.2
| pound plus | | | |
| 40 percent.[1]| | | |
| +------------+-------+------+----------
Total | | 441,646| 44,235| |
1925 | do.[1] | 98,672| 23,618| .239| 69.2
1926 | do.[1] | 25,932| 4,748| .183| 78.2
1927: | +============+=======+======+==========
Jan. 1-Aug. 18 | do.[1] | 1,322| 978| .740| 49.5
Aug. 19-Dec. 31 |3½ cents per | 610,488| 37,896| .062| 76.4
| pound plus | | | |
| 20 percent.[1]| | | |
| +------------+-------+------+----------
Total | | 611,810| 38,874| |
1928 | do.[1] | 976,180| 70,513| .072| 68.5
1929 | do.[1] |[2]2,343,529|183,324| .078| 64.7
1930 |3½ cents per | 1,275,872| 96,047| .075| 66.5
| pound plus | | | |
| 20 percent.[1]| | | |
1931 | do.[1] | [3]707,105| 42,156| .060| 78.7
1932 | do.[1] | [4]641,899| 37,326| .058| 80.2
1933 | do.[1] | 121,634| 9,164| .075| 66.5
1934 | do.[1] | 23,964| 1,497| .062| 76.0
1935 | do.[1] | 16,602| 1,128| .068| 71.5
1936 | do.[1] | 512| 40| .078| 64.8
1937[5] | do.[1] | 46,479| 5,122| .110| 51.8
------------------+---------------+------------+-------+------+----------

[1] Based on American selling price or United States value.

[2] Drawback paid on 44 percent.

[3] Drawback paid on 80 percent.

[4] Drawback paid on 105,285 pounds.

[5] Preliminary.

Source: Foreign Commerce and Navigation of the United States.

TABLE 81.—_Crude cresylic acid: United States imports for consumption, from principal sources, in specified years, 1929-37_

-------------------+----------+---------+---------+---------
Imported from— | 1929 | 1931 | 1933 | 1934
-------------------+----------+---------+---------+---------
| Quantity (pounds)
+----------+---------+---------+---------
United Kingdom |13,981,259|3,809,293|5,060,925|6,927,865
Germany | 3,874,400|1,073,491| 357,034| 217,965
Netherlands | 1,106| 54,294| 22,066|
All other countries| | |[2]83,708| 17,681
+----------+---------+---------+---------
Total |17,856,765|4,937,078|5,523,733|7,163,511
+----------+---------+---------+---------
| Value
+----------+---------+---------+---------
United Kingdom | $739,385| $190,333| $165,986| $276,989
Germany | 212,652| 51,643| 8,666| 6,263
Netherlands | 73| 2,655| 551|
All other countries| | | [2]3,621| 799
+----------+---------+---------+---------
Total | 952,110| 244,631| 178,824| 284,051
+----------+---------+---------+---------
| Unit value
+----------+---------+---------+---------
United Kingdom | $0.0529| $0.0500| $0.0328| $0.0400
Germany | .0549| .0481| .0243| .0287
Netherlands | .0660| .0489| .0250|
All other countries| | | .0432| .0452
+----------+---------+---------+---------
Average | .0533| .0495| .0324| .0396
+----------+---------+---------+---------
| Percent of total quantity
+----------+---------+---------+---------
United Kingdom | 78.3| 77.2| 91.6| 96.7
Germany | 21.7| 21.7| 6.5| 3.0
Netherlands | | 1.1| .4|
All other countries| | | 1.5| .3
+----------+---------+---------+---------
Total | 100.0| 100.0| 100.0| 100.0
-------------------+----------+---------+---------+---------

-------------------+---------+----------+----------
Imported from— | 1935 | 1936 | 1937[1]
-------------------+---------+----------+----------
| Quantity (pounds)
+---------+----------+----------
United Kingdom |6,753,003|12,344,924|12,704,108
Germany | 95,727| 626,833| 2,499,391
Netherlands | | 17,468|
All other countries| 383|[3]487,202| 1,156,714
+---------+----------+----------
Total |6,849,113|13,476,427|16,360,213
+---------+----------+----------
| Value
+---------+----------+----------
United Kingdom | $262,137| $661,781| $954,953
Germany | 3,325| 33,068| 184,887
Netherlands | | 1,190|
All other countries| 23| [3]26,536| 79,428
+---------+----------+----------
Total | 265,485| 722,575| 1,219,268
+---------+----------+----------
| Unit value
+---------+----------+----------
United Kingdom | $0.0388| $0.0536| $0.0752
Germany | .0347| .0528| .0740
Netherlands | | .0681|
All other countries| .0602| .0545| .0687
+---------+----------+----------
Average | .0388| .0536| .0745
+---------+----------+----------
| Percent of total quantity
+---------+----------+----------
United Kingdom | 98.6| 91.60| 77.65
Germany | 1.4| 4.65| 15.28
Netherlands | | .13|
All other countries| ([4]) | 3.62| 7.07
+---------+----------+----------
Total | 100.0| 100.00| 100.00
-------------------+---------+----------+----------

[1] Preliminary.

[2] Canada.

[3] Canada and France.

[4] Less than one-tenth of 1 percent.

Source: Compiled from official statistics of the United States
Department of Commerce.

TABLE 82.—_Refined cresylic acid: United States imports for consumption, from principal sources, in specified years, 1929-37_

-------------------+---------+-------+-------+-------
Imported from— | 1929 | 1931 | 1932 | 1933
-------------------+---------+-------+-------+-------
| Quantity (pounds)
+---------+-------+-------+-------
Great Britain |1,855,844|604,404|456,783|121,634
Germany | 212,918|102,701|185,028|
All other countries| 274,767| | 88| 500
+---------+-------+-------+-------
Total |2,343,529|707,105|641,899|121,634
+---------+-------+-------+-------
| Value
+---------+-------+-------+-------
Great Britain | $144,630|$35,041|$24,607| $9,164
Germany | 14,699| 7,115| 12,714|
All other countries| 23,995| | 5|
+---------+-------+-------+-------
Total | 183,324| 42,156| 37,326| 9,164
+---------+-------+-------+-------
| Unit value
+---------+-------+-------+-------
Great Britain | $0.078| $0.058| $0.054| $0.075
Germany | .069| .069| .069|
All other countries| .087| | .057|
+---------+-------+-------+-------
Average | 0.78| .060| .058| .075
-------------------+---------+-------+-------+-------

-------------------+------+------+------+-------
Imported from— | 1934 | 1935 | 1936 |1937[1]
-------------------+------+------+------+-------
| Quantity (pounds)
+------+------+------+-------
Great Britain |23,464|16,602| | 46,379
Germany | | | 512|
All other countries| | | | 100
+------+------+------+-------
Total |23,964|16,602| 512| 46,479
+------+------+------+-------
| Value
+------+------+------+-------
Great Britain |$1,412|$1,128| | $5,101
Germany | | | $40|
All other countries| 85| | | 21
+------+------+------+-------
Total | 1,497| 1,128| 40| 5,122
+------+------+------+-------
| Unit value
+------+------+------+-------
Great Britain |$0.060|$0.068| | $0.110
Germany | | |$0.078|
All other countries| .170| | | .210
+------+------+------+-------
Average | .062| .068| .078| .110
-------------------+------+------+------+-------

[1] Preliminary.

Source: Foreign Commerce and Navigation of the United States.

In 1931 practically all imports of refined cresylic acid were from the United Kingdom and consigned to one importer in New York. In 1932 about 73 percent of the total dutiable imports were consigned to the same firm. From these data and from a conference with representatives of the importer it would appear that the imports were not cresylic acid in its original meaning (a mixture of cresols in their natural proportions), nor in the broadened commercial meaning (including with the cresols, xylenols and higher boiling tar acids), but were chiefly a product consisting largely of a single cresol separated from its two isomers. Treasury Decision 46146, effective March 11, 1933, closed the classification of refined cresylic acid to products of this type and imports thereafter under this head have been much smaller. After 1927 substantial amounts of the imports were reexported with benefit of drawback.

The imports of crude cresylic acid are also not of the type which the domestic producer would sell by that name. Far from being a straight run mixture of the cresol and higher boiling tar acids, they are usually a mixture of fractions which have been separated, and then chosen and combined so that they will meet both the tariff requirement (i. e., less than 75 percent of the total product will distill over at 215° C.) and the specifications of the purchasers. Customer’s specifications are so drawn that the product will fill his special needs or can easily be broken down by fractional distillation in this country into elements, one or more of which will be so usable. Thus although imported crude cresylic acid must keep within the limitations set by the tariff it approaches as nearly as possible the type of cresylic acid which, if produced in this country, would be termed refined, since it was produced to meet the specifications of the consumer.

United States exports.

Exports of the cresols and of cresylic acid are not shown in official statistics and exports of these products as such are probably negligible, but there are appreciable exports of antiseptics, insecticides, and disinfectants in which they are incorporated, as well as of products or parts of products molded of resins made from cresylic acid.

Competitive conditions.

British coal tar is principally of gas-house origin and contains a higher percentage of tar acids (cresylic acid and phenol) than coke-oven tar, the principal kind recovered in the United States. The recovery of these tar acids from either kind of tar is usually not practicable, unless the distiller can dispose of the major products, creosote oil and pitch. British distillers have in the past ordinarily had a market for all their products; exporting large quantities of creosote oil to the United States, pitch to continental Europe, and tar acids and naphthalene to the United States, Germany, and other countries. Domestic distillers have sold cresylic acid, creosote oil, naphthalene, etc., in local markets in competition with duty-free imports from the United Kingdom, the Netherlands, Belgium, and Germany, but have found it difficult to dispose of pitch. The domestic production of coal tar ordinarily exceeded 600 million gallons, approximately one-half of which has been burned as fuel. Since the profit in distilling depends upon the markets for all of the joint products of the distillation, the large amount remaining undistilled can be understood.

The domestic production of cresylic acid may be expected to increase substantially, for several reasons: (1) The principal foreign producing countries have decreased exports because of increased demand for some of the coal-tar distillation products at home; (2) increased world prices; and (3) the development of topping, which allows the production of tar acids and naphthalene from coal tar without complete distillation.

Imports of refined cresylic acid are unimportant because the duty on the refined is high relative to the duty-free condition of the crude. Most of the imports of refined are either reexported or used in the manufacture of one proprietary antiseptic. The principal domestic market for cresylic acid is as a raw material for synthetic resins, and most of the domestic refined and most of the duty-free imported crude is now consumed by this industry. It may therefore be said that practically all imports of cresylic acid are duty-free and that, while they are sometimes refined by the consumer, they compete directly with domestic production of refined grades.

Phenol, already discussed, is closely related to cresylic acid—in chemical composition, in production by distillation from coal tar, and in use as a raw material for synthetic resins. To a considerable extent the proportions of phenol and cresylic acid used in the manufacture of tar-acid resins can be altered to take advantage of the changing price differential between the two.

All of the separated or mixed cresols are produced in commercial quantities in this country. Consumption in the United States, especially of types and grades used in synthetic resins, has increased appreciably in recent years, and is supplied chiefly by domestic production. A comparison of the quantity and value of domestic production and of imports in 1934 is shown in table 83.

TABLE 83.—_The cresols: Comparison of production and imports, 1934_

---------------+------------------------------+--------------------------
| Production | Imports
Product +----------+--------+----------+--------+------+----------
| Quantity | Value |Unit value|Quantity| Value|Unit value
---------------+----------+--------+----------+--------+------+----------
| _Pounds_ | | |_Pounds_| |
Metacresol | ([1]) | ([1]) | | 21,054|$8,400| $0.399
Paracresol | ([2]) | ([2]) | $0.350| 38,935|10,344| .266
Metaparacresol | 2,033,424|$122,005| .060| ([1]) | ([1])|
Orthocresol | 835,016| 66,801| .080| 25,865| 2,711| .105
Orthometapara | | | | | |
cresol | 8,929,836| 625,088| .070| 38,744|12,906| .333
+----------+--------+----------+--------+------+----------
Total |11,798,276| 813,894| | 124,598|34,361|
---------------+----------+--------+----------+--------+------+----------

[1] None, production reported for first time in 1935.

[2] Not publishable.

Sources: Production, Dyes and Other Synthetic Organic Chemicals
in the United States; imports, invoice analyses, U. S. Tariff
Commission.

SYNTHETIC TAR ACIDS OTHER THAN PHENOL

Certain synthetic tar acids other than synthetic phenol are used commercially in the manufacture of synthetic resins in the United States. Among these are para tertiary amyl phenol, para tertiary butyl phenol, ortho phenyl phenol, para phenyl phenol, and resorcinal.

Para tertiary amyl phenol.

Para tertiary amyl phenol is made by reacting amylene with phenol in the presence of sulphuric acid as a catalyst. At ordinary temperatures it is a solid, melting at about 88° C. and boiling between 250°-265° C. Its use is of increasing importance as a component in tar-acid resins, especially in oil-soluble varnish resins. Owing to its phenol coefficient of approximately 60, it is also used as a germicide, fumigant, and insecticide. Commercial production was reported for the first time in 1933. Since then the output has increased appreciably each year, accompanied by material reductions in sales prices.

According to United States Patent No. 1,800,295, dated April 14, 1931, a resin fast to light and soluble in oils is obtained by heating 82 parts of p-tertiary amyl phenol with 90 parts of formaldehyde, in the presence of sodium hydroxide. This substituted phenol resin passes slowly into the infusible state, thus permitting better control of the reaction.

Para tertiary butyl phenol.

Para tertiary butyl phenol is a white solid with an aromatic odor, melting at approximately 100° C. It is a new commercial product and is used in resins for paints and varnishes. It is the most important resin material in this group.

Phenyl phenols.

Both ortho and para phenyl phenol are commercially produced and are used to some extent in resins to replace phenol. The ortho isomer is a white solid boiling at 284° C. and melting at about 56° C. It is used chiefly as a germicide, though small quantities are used in resins.

Para phenyl phenol is a white solid melting at about 165° C. and boiling at 322° C. Commercial production was reported for the first time in 1933. The output has increased each year since and the selling price has gradually declined.

Resorcinol.

Resorcinol, usually obtained by fusing meta benzene disulphonic acid with caustic soda, is a colorless, crystalline substance with a peculiar odor. It melts at 119° C. and boils at 276° C. It is used in medicine, in the manufacture of intermediates and dyes, and to some extent in synthetic resins. Resorcinol condenses with formaldehyde at such a rapid rate that some means must be applied to slow up the reaction. It is used to increase the rate of condensation of tar-acid resins and to reduce the danger of sticking or undercure.

Domestic production of resorcinol has decreased in recent years. Its relatively high cost is probably an important factor in limiting its use in synthetic resins.

FORMALDEHYDE

Description and uses.

At ordinary temperature and pressure formaldehyde is a gas. It enters commerce as formalin, an aqueous solution containing 40 percent formaldehyde by volume (37 percent by weight) and from 6 to 14 percent methyl alcohol. It is generally made by the oxidation of methyl alcohol. Commercial formalin contains polymers which tend to precipitate in water solution; these are kept in solution by allowing from 6 to 14 percent methyl alcohol to remain in the solution.

The principal use of formaldehyde is in the manufacture of synthetic resins. Other uses are (in the order of their importance): In the manufacture of synthetic indigo; in the manufacture of hydrosulphite; as a disinfectant, deodorant, and preservative; as a fungicide; in embalming fluids; in tanning leather; and in the manufacture of coated paper and wallpaper.

United States production.

The domestic output of formaldehyde has increased with the increased demand by resin makers. Production and sales in 1937 were more than double those in 1930. There are three domestic makers, two of which produce methyl alcohol, the raw material. Their plants are located in New Jersey and Oklahoma.

Statistics of production and sales are shown in table 84.

TABLE 84.—_Formaldehyde: United States production and sales, in specified years_

-------+----------+----------------------------
|Production| Sales
Year +----------+--------+----------+--------
| Quantity |Quantity| Value | Value
| | | |per lb.
-------+----------+--------+----------+--------
| _1,000 |_1,000 | |
| pounds_ |pounds_ | |
1914 | ([1]) | 8,426| $655,174| $0.078
1919 | 25,007| 19,664| 3,928,322| .200
1921 | 9,657| 6,056| 651,681| .108
1922 | 23,958| 16,140| 1,676,401| .104
1923 | 24,081| 18,855| 2,474,506| .131
1924 | 26,155| 20,542| 1,971,053| .096
1925 | 31,456| 23,392| 1,895,913| .081
1926 | 31,953| 22,552| 2,050,967| .091
1927 | 29,920| 24,597| 2,256,534| .092
1928 | 38,718| 27,934| 2,491,615| .089
1929 | 51,786| ([2]) | ([2]) |
1930 | 40,763| ([2]) | ([2]) |
1931 | ([1]) | ([1]) | ([1]) |
1932 | ([1]) | ([1]) | ([1]) |
1933 | 52,236| 46,424| 2,122,925| .046
1934-37| ([2]) | ([2]) | ([2]) |
-------+----------+--------+----------+--------

[1] Not available.

[2] Not publishable; figures would disclose operations of
individual firms.

Source: Compiled from annual reports of the Tariff Commission on
dyes and other synthetic organic chemicals in the United States.

Production in other countries.

Formaldehyde is produced in England, Germany, France, Czechoslovakia, Italy, Sweden, the Soviet Union, Japan, and Canada. Production data are not available but Germany and England are probably the leading foreign producers. Estimated productive capacity in the Soviet Union is given as 10 million pounds annually; in Japan 6.5 million pounds; in France 4 million pounds; and in Italy 3 million pounds.

United States imports and exports.

Imports of formaldehyde have been negligible since 1920 when 428,444 pounds, valued at $210,191, were imported. There were no imports from 1928 until 1935, when 375 pounds valued at $72 were imported from Canada. In 1936 imports amounted to 20 pounds, valued at $14, from Switzerland.

The United States exports about 5 percent of its production of formaldehyde. Canada is the principal destination of exports, and prior to 1934 Japan was an important market. Table 85 shows exports of formaldehyde to principal markets, in recent years.

TABLE 85.—_Formaldehyde: United States exports to principal markets, in specified years, 1929-37_

-------------------+---------+---------+---------+---------
Exported to— | 1929 | 1931 | 1933 | 1934
-------------------+---------+---------+---------+---------
| Quantity (pounds)
+---------+---------+---------+---------
Canada | 19,321| 716,132|1,095,847|1,236,103
Japan |1,464,763| 622,407| 729,875| 11,250
Netherlands Indies | 626,689| 650,875| | 344,725
United Kingdom | 303| 345,896| 305|
China | 29,030| 229,760| 215,050| 572,700
All other countries| 448,063| 339,777| 332,101| 433,068
+---------+---------+---------+---------
Total |2,588,169|2,904,847|2,373,178|2,597,846
+---------+---------+---------+---------
| Value
+---------+---------+---------+---------
Canada | $4,405| $36,471| $46,611| $58,348
Japan | 124,411| 33,395| 43,254| 562
Netherlands Indies | 42,807| 38,462| | 15,536
United Kingdom | 510| 18,629| 192|
China | 3,354| 13,019| 11,998| 27,407
All other countries| 49,742| 22,709| 18,966| 23,444
+---------+---------+---------+---------
Total | 225,229| 162,685| 121,021| 125,297
+---------+---------+---------+---------
| Unit value
+---------+---------+---------+---------
Canada | $0.228| $0.051| $0.043| $0.047
Japan | .085| .054| .059| .050
Netherlands Indies | .068| .059| | .045
United Kingdom | 1.683| .054| .630|
China | .116| .057| .056| .048
All other countries| .111| .067| .057| .054
+---------+---------+---------+---------
Average | .087| .056| .051| .048
+---------+---------+---------+---------
| Percent of total quantity
+---------+---------+---------+---------
Canada | 0.8| 24.7| 46.2| 47.6
Japan | 56.6| 21.4| 30.7| .4
Netherlands Indies | 24.2| 22.4| | 13.3
United Kingdom | | 11.9| |
China | 1.1| 7.9| 9.1| 22.0
All other countries| 17.3| 11.7| 14.0| 16.7
+---------+---------+---------+---------
Total | 100.0| 100.0| 100.0| 100.0
-------------------+---------+---------+---------+---------

-------------------+---------+---------+---------
Exported to— | 1935 | 1936 | 1937[1]
-------------------+---------+---------+---------
| Quantity (pounds)
+---------+---------+---------
Canada |1,493,993|1,105,277|1,187,661
Japan | | |
Netherlands Indies | 71,375| 200| 335,275
United Kingdom | | 2|
China | 598,342| 459,490| 938,700
All other countries| 334,100| 279,289| 403,236
+---------+---------+---------
Total |2,497,810|1,844,258|2,864,872
+---------+---------+---------
| Value
+---------+---------+---------
Canada | $83,805| $53,062| $50,780
Japan | | |
Netherlands Indies | 2,866| 13| 13,411
United Kingdom | | 1|
China | 28,239| 19,258| 34,274
All other countries| 18,676| 16,520| 20,498
+---------+---------+---------
Total | 133,586| 88,854| 118,963
+---------+---------+---------
| Unit value
+---------+---------+---------
Canada | $0.056| $0.048| $0.043
Japan | | |
Netherlands Indies | .040| .065| .040
United Kingdom | | .500|
China | .047| .042| .037
All other countries| .056| .059| .051
+---------+---------+---------
Average | .053| .048| .042
+---------+---------+---------
| Percent of total quantity
+---------+---------+---------
Canada | 59.8| 59.9| 41.4
Japan | | |
Netherlands Indies | 2.8| | 11.7
United Kingdom | | |
China | 24.0| 24.9| 32.8
All other countries| 13.4| 15.2| 14.1
+---------+---------+---------
Total | 100.0| 100.0| 100.0
-------------------+---------+---------+---------

[1] Preliminary.

Source: Foreign Commerce and Navigation of the United States.

Competitive conditions.

The competitive situation with respect to formaldehyde is determined largely by the output and price of the raw material, methanol. The United States produces large quantities of synthetic and natural methanol and is a net exporter of that product. Both methanol and formaldehyde are produced in many foreign countries, and foreign production is expanding. Although methanol is now the main, if not the sole, raw material utilized in making formaldehyde, plants for making the latter direct from natural gas, or from petroleum gas hydrocarbons are contemplated or actually under construction. Should such processes develop to an appreciable extent, the competitive situation of the United States may change, but in such case it is unlikely that this country would be so affected as to change its position as a moderate exporter.

HEXAMETHYLENETETRAMINE

Description and uses.

Hexamethylenetetramine is a white crystalline powder made by the interaction of formaldehyde and ammonia. It is used in tar-acid resins to replace formaldehyde, though its higher cost has limited its use to small proportions as a finishing or hardening agent. Other uses are as an internal antiseptic in medicine (marketed under trade names such as Urotropin, Cystogen, Aminoform, Urisol, and Cystamin), as an accelerator in the vulcanization of rubber (a declining use), and in artificial cork. During the World War it was used in gas masks as an absorbent for phosgene.

United States production.

The domestic production of hexamethylenetetramine declined during the depression, but has been increasing in the last few years. Production in 1937, however, was still below that of 1929. Statistics of production are shown in table 86.

TABLE 86.—_Hexamethylenetetramine: United States production and sales, 1923, and 1925-37_

-------+----------+-----------------------------
|Production| Sales
Year |(quantity)+---------+--------+----------
| | Quantity| Value |Unit value
-------+----------+---------+--------+----------
| _Pounds_ | _Pounds_| |
1923 | 1,381,073|1,155,083|$974,877| $0.84
1925 | 1,657,993|1,506,286| 994,458| .66
1926 | 1,495,220| ([1]) | ([1]) |
1927 | 1,315,213| ([1]) | ([1]) |
1928 | 1,661,645| ([1]) | ([1]) |
1929 | 2,368,020| ([1]) | ([1]) |
1930 | 1,871,690| ([1]) | ([1]) |
1931 | ([2]) | | ([2]) |
1932 | ([2]) | | ([2]) |
1933-37| ([1]) | | ([1]) |
-------+----------+---------+--------+----------

[1] Not publishable; figures would disclose operations of
individual firms.

[2] Not available.

Source: Compiled from annual reports of the Tariff Commission on
dyes and other synthetic organic chemicals in the United States.

Hexamethylenetetramine is made by two firms in New Jersey and by one in West Virginia. The raw materials utilized are formaldehyde and liquid or anhydrous ammonia. One company makes its own requirements of both, and another makes its own formaldehyde. Most of the production of hexamethylenetetramine is sold, marketed in barrels, drums, kegs, and cans.

Production in other countries.

Hexamethylenetetramine is made in a number of foreign countries, with Germany probably the leading foreign producer. Exports from Germany declined from 445,000 pounds in 1931 to 182,000 pounds in 1934, the decline being due chiefly to the expansion of production in countries previously large importers, particularly the United Kingdom, Japan, Czechoslovakia, and France.

United States imports and exports.

Imports of hexamethylenetetramine to the United States are shown in table 87.

TABLE 87.—_Hexamethylenetetramine: United States imports for consumption, 1923-37_

-----------------+--------------+--------+-------+----------+----------
| | | | | Computed
Calendar year | Rate of duty |Quantity| Value |Unit value|ad valorem
| | | | | rate
-----------------+--------------+--------+-------+----------+----------
| |_Pounds_| | | _Percent_
1923 |25 percent | 47,373|$24,722| $0.522|
1924 | do | 3,826| 3,998| 1.045|
1925 | do | 20,771| 10,453| .503|
1926 | do | 23,481| 10,237| .436|
1927 | do | 3,417| 1,715| .502|
1928 | do | 5,898| 1,643| .279|
1929 | do | 5,562| 1,857| .334|
1930: | | | | |
Jan. 1-June 17 | do | | | |
June 18-Dec. 31| 11 cents | | | |
| per pound | | | |
1931 | do | | | |
1932 | do | 1,103| 336| .305| 36.1
1933 | do | 1,103| 293| .266| 41.4
1934 | do | 612| 273| .446| 24.7
1935 | do | | | |
1936 | do | 7,496| 1,510| .201| 54.6
1937[1] | do | 10,895| 8,197| .200| 54.9
-----------------+--------------+--------+-------+----------+----------

[1] Preliminary.

Source: Foreign Commerce and Navigation of the United States.

Imports of hexamethylenetetramine in 1928 came principally from the United Kingdom, the remainder from Germany. In 1929 they came wholly from Germany; in 1932 and 1933 from Belgium; and in 1934 principally from Canada, with the rest from the United Kingdom. In 1936 Belgium supplied 7,166 pounds valued at $1,368 and Germany 330 pounds valued at $142.

Exports of hexamethylenetetramine are not shown in official statistics. It is known, however, that some has been exported, and that in 1933, at least, exports exceeded imports.

Competitive conditions.

Hexamethylenetetramine is made from formaldehyde and ammonia, of which there are ample supplies in the United States. The market for hexamethylenetetramine is limited, and imports are small. It is made in numerous foreign countries, Germany being probably the principal potential competitor.

FURFURAL

Furfural is an aldehyde found in oat hulls, rice hulls, corn cobs, bran, and other farm waste products. Commercially it is obtained in the United States from oat hulls and in the Soviet Union from the husks of sunflower seeds. It is a colorless liquid, boiling at 158° to 162° C. and freezing at minus 38° C. Its principal use is in synthetic resins, of which tar acid-furfural is probably the most important. These resins are used in molding, for impregnating, and in coatings. Furfural is also used as a solvent for cellulose ethers and esters, natural gums and resins, and in the manufacture of derivatives useful as rubber chemicals.

Domestic production is entirely by one firm, located in Iowa. Production and sales statistics are not publishable, but the maker has stated that consumption is in “terms of millions of pounds per year.”

18. RAW MATERIALS FOR UREA RESINS

The principal raw materials entering into the manufacture of urea resins are urea and formaldehyde. Formaldehyde has already been discussed (see pp. 133-135) and urea and thiourea are discussed below.

UREA

Urea is a white crystalline material, made by condensing carbon dioxide and ammonia under heat and pressure. It is an excellent fertilizer because of its high nitrogen content (46.6 percent) but this use is limited by its relatively high cost. Urea is an important synthetic resin material, being a constituent of urea-formaldehyde resins, known commercially under the trade names Beetleware and Plaskon.

Production of urea in the United States was started in 1916, when the German supply was cut off. In 1920 the domestic output was estimated at more than 200,000 pounds of fertilizer grade. Production ceased in 1922. Urea in ammonia solution for use in the manufacture of mixed fertilizer was first produced in 1933.

Crystal urea production in the United States was begun in 1935 and was largely made possible by the larger volume of urea in ammonia solution manufactured for fertilizer use. Prior to that time our requirements of crystal urea were imported, principally from Germany. Consumers of resin grade urea report that the domestic product is as good or better than the imported from Europe. The domestic output of crystal urea in 1936 showed an appreciable increase over that in 1935.

Statistics of imports of urea are given in table 88, showing imports of all grades combined. Up to 1931, and again in 1936, the imports were probably all for fertilizer use. From 1931 through 1935 some portion of the imports went into the manufacture of resins, but even in this period most of the imports were probably used in fertilizer.

TABLE 88.—_Urea: United States imports for consumption, 1919-20 and 1923-37_

-------------------+------------+----------+-------+----------
Year |Rate of duty| Quantity | Value |Unit value
-------------------+------------+----------+-------+----------
| | _Pounds_ | |
1919 |25 percent | 14,290| $9,741| $0.682
1920 | do | 23,693| 14,085| .594
1923 |35 percent | 45,711| 5,892| .129
1924 | do | 94,307| 12,891| .137
1925 | do | 146,438| 15,886| .108
1926 | do | 377,729| 30,346| .080
1927 | do | 813,120| 51,799| .064
1928 | do | 1,788,927|101,900| .057
1929 | do | 4,588,313|228,401| .050
1930: | | | |
Jan. 1-June 17 | do | 2,459,140|120,263| .049
June 18-Dec. 31|Free |17,843,840|719,982| .040
1931 | do |11,695,040|445,674| .038
1932 | do | 7,291,200|267,787| .037
1933 | do |12,918,080|483,238| .037
1934 | do |10,850,560|423,675| .039
1935 | do | 8,189,440|379,427| .046
1936 | do | 6,095,040|272,679| .045
1937[1] | do | 5,297,600|266,166| .050
-------------------+------------+----------+-------+----------

[1] Preliminary.

Source: Foreign Commerce and Navigation of the United States.

Table 89 shows the sources of imports of urea in recent years. Germany has supplied from 90 to 100 percent of the total quantity, and Canada and the Netherlands the greater part of the remainder. There have been occasional shipments from Belgium, France, and Japan.

TABLE 89.—_Urea: United States imports for consumption by countries, 1931 and 1933-37_

-------------------+----------+----------+----------
Imported from— | 1931 | 1933 | 1934
-------------------+----------+----------+----------
| Quantity (pounds)
+----------+----------+----------
Germany |10,496,640|12,649,280|10,660,160
Netherlands | 922,880| 147,840| 20,160
Canada | 185,920| 120,960| 168,000
All other countries| 89,600| | 2,240
+----------+----------+----------
Total |11,695,040|12,918,080|10,850,560
+----------+----------+----------
| Value
+----------+----------+----------
Germany | $401,976| $473,703| $415,777
Netherlands | 31,523| 5,034| 666
Canada | 9,107| 4,501| 7,032
All other countries| 3,068| | 200
+----------+----------+----------
Total | 445,674| 483,238| 423,675
+----------+----------+----------
| Unit value
+----------+----------+----------
Germany | $0.038| $0.037| $0.039
Netherlands | .034| .034| .033
Canada | .049| .037| .042
All other countries| .034| | .089
+----------+----------+----------
Average | .038| .037| .039
-------------------+----------+----------+----------

-------------------+---------+---------+---------
Imported from— | 1935 | 1936 | 1937[1]
-------------------+---------+---------+---------
| Quantity (pounds)
+---------+---------+---------
Germany |7,869,120|6,095,040|5,297,600
Netherlands | | |
Canada | 320,320| |
All other countries| | |
+---------+---------+---------
Total |8,189,440|6,095,040|5,297,600
+---------+---------+---------
| Value
+---------+---------+---------
Germany | $366,371| $272,679| $266,166
Netherlands | | |
Canada | 13,056| |
All other countries| | |
+---------+---------+---------
Total | 379,427| 272,679| 266,166
+---------+---------+---------
| Unit value
+---------+---------+---------
Germany | $0.047| $0.045| $0.050
Netherlands | | |
Canada | .041| |
All other countries| | |
+---------+---------+---------
Average | .046| .045| .050
+---------+---------+---------

[1] Preliminary.

Source: Foreign Commerce and Navigation of the United States.

Imports of urea enter the United States free of duty under paragraph 1793 of the Tariff Act of 1930. In spite of that fact a substantial production in the United States has been achieved. This is due, at least to a considerable extent, to the production of crude urea in ammonia solution, which is used in ammoniating superphosphates for fertilizer use. It is shipped by tank car but would be difficult to transport by ship. The volume market for this form of the product has aided in the production of crystal urea for both resin and fertilizer use.

THIOUREA

Thiourea (thiocarbamide) is a white crystalline solid, melting at 180° C. It is made commercially by treating a solution of calcium cyanamide with sulphur and ammonium sulphide or with hydrogen sulphide and ammonia. The principal uses of thiourea are in making intermediates and pharmaceuticals, as a photographic developer, as an insecticide, and in medicine. Because of the water resistance it imparts it was for some time widely used in urea resins. During the past few years, however, its use in resins has declined sharply owing to its deleterious action on ordinary molds and its slow rate of cure. In molding compounds, thiourea requires about 10 minutes curing time as compared with 3 minutes or less for urea resins and tar-acid resins. Since ways have been found to fabricate water-resistant urea resins without using thiourea, the consumption of thiourea in this use has declined.

There is no known commercial domestic production of thiourea.

Imports through the New York Customs District, according to invoice analyses made by the Tariff Commission, are shown in table 90. Thiourea is dutiable at 25 percent under paragraph 5 of the act of 1930.

TABLE 90.—_Thiourea: United States imports through the New York Customs District, 1931-37_

----+--------+-------+----------+------------------------
Year|Quantity| Value |Unit value| Source
|(pounds)| | |
----+--------+-------+----------+------------------------
1931| 81,560|$24,254| $0.297|Germany and Switzerland.
1932| 19,347| 4,760| .246|Germany.
1933| | | |
1934| 15,738| 5,982| .380| Do.
1935| 29,480| 10,500| .356| Do.
1936| 81,031| 19,782| .244| Do.
1937| ([1]) | | |
----+--------+-------+----------+------------------------

[1] Not available.

Source: Invoice analyses of paragraph 5, of Tariff Act of 1930.
Compiled by U. S. Tariff Commission.

19. RAW MATERIALS FOR VINYL RESINS

Vinyl resins are made chiefly from vinyl acetate and vinyl chloride.

Description and uses.

Vinyl acetate is an unsaturated ester of the hypothetical vinyl alcohol. It is made from acetylene and acetic acid, and is a colorless liquid with a pleasant sweetish odor, boiling at 73° C. On account of its tendency to polymerize to polyvinyl acetate, a trace of copper salt is added for shipment. To render the vinyl acetate chemically active again, the copper salt is removed by distillation. At present the sole use of vinyl acetate is for the manufacture of synthetic resins. (See pp. 43-50.)

Vinyl chloride, a salt of vinyl alcohol, is obtained commercially from acetylene. It is a gas (boiling at about minus 14° C.) used in the manufacture of synthetic resins. Vinyl chloride mixed with vinyl acetate is polymerized to a synthetic resin.

United States production.

Until 1938 the one domestic maker of vinyl acetate produced only experimental lots, the bulk of our requirements being imported from Canada. In that year large units to manufacture vinyl acetate were built at Niagara Falls, N. Y., and at Belle, W. Va. The remarkable properties of safety glass made from vinyl resin sheets, together with several other new and important applications of these resins, indicate a demand for vinyl acetate sufficient to warrant these large manufacturing units. The United States patents covering the processes of manufacture of vinyl acetate are owned by the Canadian producer, who has licensed the domestic makers.

Domestic production of vinyl chloride has increased from experimental quantities in 1927 to large-scale commercial output, increasing substantially each year since 1933.

United States imports.

There has been no import of vinyl chloride. Imports of vinyl acetate (unpolymerized), entirely from Canada, are shown in table 91.

TABLE 91.—_Vinyl acetate, unpolymerized: United States imports for consumption, 1931-37_

-------+--------+--------+------
Year |Quantity| Value | Unit
|(pounds)| | value
-------+--------+--------+------
1931 | 77,269| $11,489|$0.149
1932 | 104,129| 14,053| .135
1933 | 159,757| 21,134| .132
1934 | 217,182| 39,462| .182
1935 | 776,426| 149,876| 0.193
1936[1]| 449,905| 58,499| .130
1937[2]| 297,496| 39,074| .131
-------+--------+--------+------

[1] Duty reduced from 30 percent ad valorem and 6 cents per pound
to 15 percent ad valorem and 3 cents per pound under Canadian
trade agreement, effective Jan. 1, 1936.

[2] Preliminary.

Source: Foreign Commerce and Navigation of the United States.

Competitive conditions.

Domestic consumption of vinyl acetate and vinyl chloride has increased in recent years from experimental to commercial quantities. Many years of intensive research looking toward large outlets for the resins made from these compounds has apparently been successful. The largest single application indicated at this time is for safety glass sheets.

The large increase in domestic consumption expected in the immediate future will probably be supplied chiefly from expanding domestic production and imports from Canada will probably decline even under the reduced trade-agreement duty except to fill possible temporary shortages.

APPENDIXES

A. Statistical tables on foreign trade in raw materials for synthetic resins.

B. Trade names for synthetic resins made in the United States.

C. Trade names for synthetic resins made in Great Britain.

D. Trade names for synthetic resins made in Germany.

E. List of United States manufacturers of raw materials for synthetic resins.

F. Glossary.

APPENDIX A

STATISTICAL TABLES ON FOREIGN TRADE IN RAW MATERIALS FOR SYNTHETIC RESINS

TABLE 92.—_Naphthalene: German imports and exports, by countries, 1929 and 1932-37_