Introduction and Background

SEMI-ANNUAL REPORT OF SCHIMMEL & Co. (FRITZSCHE BROTHERS) MILTITZ NEAR LEIPZIG LONDON-« NEW YORK. APRIL 1907. Contents. Introductory remarks . Commercial notes and scientific information on 2 essential oils ‘New essential oils . Dutch Pharmacopoeia British Pharmacopeea . Commercial notes and scientific information on chemical preparations and drugs Notes on recent research work concerning terpenes and terpene derivatives List of abbreviations. d= specific gravity. doo = specific gravity at 20°, compared with water at 15°. ae = specific gravity at 20°, compared with water at 4°. 4, 490 = Optical rotation at 20°, in a 100 mm, tube. [a], = specific rotation. Dy s90 = index of refraction at 20% Sol. p. = solidifying point. M. p. = melting point. B. p. = boiling point. jormal. Page 105 107 107 109 113 Acid no. = acid number; ester no. = ester number; sap. no. = saponification number. g = gram; cc. = cubic centimeter; mm. = millimeter. Temperatures are uniformly given in degrees Centigrade. ‘The strength of alcohol, if not otherwise indicated, is given in per cent. by volume. Miltitz near Leipzig, April 1, 1907. With feelings of satisfaction we are able to place on record that the year 1906, from a commercial point of view, has run an eminently favourable course, and that the hopes to which we gave expression in our last Report, have been realised in every respect. It was granted to the German industry to enjoy a continuation of the blessings of peace among civilised peoples, and in the peaceful contest of the nations on the World’s market not only to maintain its position, but also to advance a mighty step on the road of economic progress. The fears entertained in many quarters with regard to the new German Commercial Treaties and Tariffs which came into force on March 1, 1906, have fortunately not come true, and our branch of industry in particular has every reason to rejoice in the renewed strength which has thereby been given to commercial intercourse. The sales have reached figures which have put the results of the most favourable years of commerce in the shade, and although the profits have been im- paired to a not inconsiderable extent by the constantly growing ex- penses, the results can nevertheless be characterised as magnificent. The strained financial situation has no doubt on occasion acted as an impediment, but on the other hand it has also imposed a check on the speculative elements from which the healthy development of com- merce has benefitted. Thanks to the quiet political situation which has been greatly consolidated by the new German Reichstag, and to the splendid employment of all branches of industry, the future prospect appears to be no less promising, in spite of the still strained condition of the money market, and the growing output of the first quarter points to the fact that the favourable state of affairs has by no means reached its zenith. The imports of chemical raw material and manu- factured products from abroad amounted in 1906 to 430,8 million marks, against 377,6 million in the previous year; it therefore shows an in- crease of 14,1°/o, against 79/, in 1905. The exports rose from 473,5 to 542,3 million marks, and consequently advanced by 14,5°/o, whilst in 1905 the exports had only advanced 5°/, over those of 1904, although at that time the situation was also by no means unfavour- able. These figures speak for themselves so plainly that they require no further comment. —~6— Our Bodenbach branch has been exceptionally well employed, and for the present not a trace of any unfavourable influence of the tension between Austria and Hungary on the commercial situation in our industrial branch can be discovered. Our trade with both countries has increased considerably. There are bitter complaints from the Austrian manufacturers of essential oils and essences about the price- cutting, a consequence of the habit of underquoting each other, and attempts are made to bring about a combination of the interested parties for the purpose of agreeing upon price-limits for our articles. We, naturally, stand entirely outside this movement, as we have always, in spite of the ridicule which has from time to time been heaped upon us, kept ourselves away from such unhealthy competition. We have preferred, by unceasing efforts, and by shirking no sacrifice what- ever, to strive after this, that our customers of their own free will Pay us correspondingly higher prices for our superior goods. We are pleased to say that the results confirm the correctness of the attitude we have taken up. The gratifying strengthening of the commercial relations with France has made further progress, and the growing intercourse with this valuable market is a satisfactory guarantee that the ill-humour to which we had still to refer last year, has, on the part of our neigh- bours, now finally disappeared. The general state of the trade in the United Kingdom can be called very favourable, for the figures of imports and exports show considerable increases for every month. Our products also have during the last few months constantly found a good sale, but the advancing prices, combined with the unfavourable and in part even unhealthy conditions from which the soap industry has suffered now for some considerable time, do not show the future in a particularly rosy light. Trade with the British Colonies has been regular, and gives no occasion for any special remarks. The improvement in the economic condition of Russia which became clearly manifest already in the latter half of 1906, was naturally bound to exert a favourable influence on the commercial situation, and our increasing trade proves that there is a legitimate expectation of an early return to normal conditions. Thanks to the energetic attitude of the Government, and partly no doubt also owing to the establishment of a representative institution in the form of the Duma, it was possible in the course of last autumn to master the forces of the revolution, and since that time the improvement in the economic life of Russia has made distinct progress. Following the example of Switzerland, the Dutch Government published some 18 months ago a draft Patent law, which, however, has dropped into oblivion owing to a change of Ministry at the time. a Recently, the Association for the Protection of Industrial Property, supported by the Association for the Protection of the Interests of the German chemical industry, has taken steps to bring the proposal again before the Dutch Parliament, either in the original or in an amended form. We need not assure our readers, that especially our industry, at least in so far as it occupies itself with the manufacture of artificial perfumes, has the greatest interest in bringing to an end the con- dition existing up to the present in Holland, by which all intellectual property which has been acquired outside that country’s frontiers occasionally at the heaviest sacrifice, is placed at the mercy of the general public. The Dutch Indies are beginning to occupy a more and more important place among the markets of the Far East. The longed-for reform of the notorious Alcohol Act in Spain is still in abeyance, for the liberal party has last year made an absolute fiasco, in accomplishing the feat of letting five individual Cabinets follow one another in one and the same year. Since two months the Conservatives are now again at the helm, and it would appear that * the country is putting up with this clerical cabinet. It is a matter of regret that this ministry also includes the author of this eventful Alcohol Act, as the hope of obtaining the reform of this Act for which every effort has been made during the last two years by continued agitation, has now been frustated for an indefinite time. For this reason the trade in the branches affected by this Act, that is to say in the circles of our clients, continues to be in a state of depression, and for the immediate future an improvement can hardly be hoped for. It was likewise impossible, in spite of all efforts made by the respective Powers, to come to a definite conclusion with regard to the Commercial Treaties with Germany, France and other nations, as the continuous political quarrels and the frequent changes of Government, occupied the whole of the valuable time, The drought which has now prevailed for months without a prospect of rain, adds to the commercial despondency from which the country suffers, and gives rise to fears of a very severe economic crisis. There is even some talk of an imminent famine in case an abundant rainfall does not change the extremely critical situation. Business in the United States has been extremely satisfactory. The largely increased sales of our New York branch prove sufficiently that its efforts, continued now for 35 years, to advance our principles in this greatly sought-after and much consuming market, may be characterised as very successful. If the results of the past year may be called brilliant, the same applies to the prospects for the near future, the more so, as there is every hope that, when the provisional arrangement lapses on June 30 of this year, a new treaty between =s = Germany and the United States will come into being, built up on the basis of mutual good-will. We welcome with satisfaction the enactment of the Food and Drugs Act which came into force in the United States on January 1, 1907. This Act applies in the first place to the inter-state and foreign trade in food-stuffs and drugs containing injurious or deterior- ated substances, or which have been inadmissibly weighted, or contain an excess of taste-, flavour- or preserving admixtures; but it is chiefly directed against incorrect or incomplete labelling of the goods. Very strict directions have been issued; for example, for mixtures, a word indicating this circumstance must be added on the label, and certain con- stituents such as preserving agents, substances affecting the odour or taste, alkaloids, alcohol and its preparations, as well as the quantities, in which they are employed, must be specified. Drugs without any further description must agree with the United States Pharmacopceia or the “National Formulary”. Products imported from abroad must not be subject to commercial restrictions in the country of production, and according to Consular certificate must satisfy all requirements of the Act. The manufacturer or importer can protect himself against seizure or possible legal proceedings, if he submits samples, and gives a written guarantee to the Board of Agriculture which is the Authority entrusted with the carrying out of the Act. Although the exact observance of the new regulations may cause a good deal of apparently paltry extra work to the German exporter, we welcome in this Act a measure which is directed against the dishonest elements of our branch. The latter have always devoted special attention to the United States, and their retirement from the competition can only be an advantage both to the consumers and to our branch of industry. Of the remaining countries of the New World, the Argentine Republic stands unquestionably in the front rank; that country, owing to its natural economic relations with the German Empire, justifies the highest hopes as to an important future for the sale of manufactures of Germany, which country occupies the first place among all the customers of the Argentine. But it should not be overlooked that the state of the trade in that country depends in every respect upon the result of the harvest, and that the increase in the exports to the Argentine Republic can only be regarded as a consequence of the favourable results of the harvests of the last four years. A failure of the harvest may therefore only too readily bring about a crisis. The export to Brazil also moves slowly but surely in an upward direction. Unfortunately it is still very often necessary to complain that certain officials, in carrying out the inspection of foods, are apt to proceed in a totally unbusiness-like manner, and thereby cause many —-9— needless formalities, wasting much time and expense, even to firms who make a point of only supplying unobjectionable goods. It is to be hoped that in this respect a definite improvement may soon be effected. Chile is gradually recovering from the heavy blows from which it suffered last year. In many cases Europe showed an accommodating spirit by allowing prolongations, thus offering to most firms a possibility of overcoming the disaster. The relations with Central America call for no comment. In our last Report we gave expression to certain fears that the increase in the duties would tend to restrict trade with Japan, but we are now able to state with satisfaction that also during the past months an exceptionally brisk export of our manufactures to this important market has taken place. Moreover, the Japanese importers have, in the interest of the growing soap industry, energetically opposed the increase in the duties on our articles which amounted to 1o—209/), and they have obtained the concession from the Government, that the duties on all oils and perfumes employed in the above-mentioned branch of industry are now considerably reduced. The stimulating effect of this measure on the trade already makes itself distinctly felt. The turn of the Japanese for strong perfumes is, for the rest, of great advantage to the sale of essential oils and artifical perfumes. A disagreeable surprise has been sprung upon the exporters of pharmaceutical products, by the fact that the Japanese Home Office has issued an order anticipating the date up to which pharmaceutical preparations which answer the requirements of the old (II) Japanese Pharmacopeeia are admitted for testing by the Government Laboratory, and has fixed it, contrary to what had previously been determined, at June 30, 1907. This curtailment of the period (originally extended to December 31, 1907) touches the European manufacturers all the more heavily, as the publication of the translation of the new (III) Pharma- copceia is unfortunately delayed, and may now probably not be expected before May. Although an appeal against this ministerial decision has been lodged by the German Consulate-General at Yokohama on behalf of a number of German firms interested in the chemical trade, it can now hardly be expected that the decision will be altered in good time. With regard to the soap industry of Japan, the Minister of the Swiss Republic has recently reported) that about 50 factories, mostly in Osaka, have gradually been established, which produce monthly about 15 million tablets, and which not only cover the largest home demand, but also export already considerable quantities. The 4) Chem. Ztg. 81 (1907), 14. — 10 — exports to China, Korea, British India, the Philippines and Asiatic Russia were: in 1905 1459678 doz, value 596059 yen » 1904 808477, , 316889 , » 1903 554265 » » 194184 » Although these figures make it already sufficiently clear that the Japanese soap export acquires a growing importance, the quantity reached in the months from January to June of last year is quite striking: the exports from January 1 to June 30, 1906, were already 1013310 doz. value 459096 yen. Before entering into the usual discussion of the individual articles of our branch, we wish to mention still that the past commercial year has with few exceptions brought upward movements in the prices, which have stimulated to a not inconsiderable extent the interest of purchasers. Commercial notes and scientific information on essential oils. Almond oil, bitter. The demand for both sorts of essential oil of bitter almonds continued to be very brisk, so that our own production was insufficient to meet the requirements. As a makeshift we distilled several truck-loads of Italian press-cakes, which, however, also could be obtained only with difficulty. Almond oil, pressed, from apricot-kernels. The tone of the Syrian market of apricot-kernels, has, unfortunately, bitterly disappointed all hopes, as the speculators succeeded, in spite of the favourable results of the harvest, in keeping the prices above 70 marks per 100 kilos, so that pressed oil could not be supplied below 190 marks per roo kilos. As already reported by us, the result of this year’s harvest could be characterised as a very rich one, for whereas with a good average yield about 6000 to 7000 bales are usually put on the market in Damascus, there were this time optimists who talked of a crop of 20000 bales, which, however, in the opinion of our informants, must be considered as a somewhat exaggerated estimate. As, moreover, the reports from the country behind Mersina and from Aleppo announced an exceptionally rich crop, it was all the more necessary to reckon on a fall in the prices, as according to previous experience the consumers were not capable of absorbing such quantities. On the other hand, the failure of the harvest in California had not been allowed for sufficiently, and as, in consequence of the high prices — FF of almonds, many manufacturers (such as Liibeck and Kinigsberg manufacturers of “marzipan” who otherwise use bitter almonds), now turned their attention to apricot-kernels, only a slight impetus on the part of the Hamburg speculators was needed to drive the prices up. Large parcels were secured in this place for forward delivery, something like 8000 bales, for shipment from July onwards, whilst as a rule in that month nothing is yet placed on the market. The price paid at first was 54 marks, but subsequently it advanced to 63, 64, and 67 marks for forward delivery, and it was finally driven up to 74 marks, owing o the fact that the various parcels changed hands three to four times, even before they were shipped. The exceptionally early and briskly starting demand led in Damascus, as early as July, to a real hunt for kernels, and the purchase-price advanced by short leaps up to 75.50 marks, so that the exporters who had foolishly entered into heavy engagements for early delivery, lost a good deal of money. It is impossible to say exactly how much has been exported during last season, as no official record of it is kept, and one has consequently to rely upon personal observations. Our friends estimate the shipments