for sodium carbonate against a price of soda ash in Tennessee of over $20 per ton. In round figures, when considering shipment of 31,500 tons tetrasodium pyrophosphate annually to Chicago as an average consuming point, this advantage in the cost of sodium carbonate, after allowing for the absorption of freight differential against Green River, would bestow a net advantage upon Green River of about $345,000 annually or something over $10 per ton of the product. The equipment for making phosphoric acid by the wet method is standard, likewise the equipment for effecting combination of the phosphoric acid with the trona and calcining the basic salt. This combination of plants would cost something less than $1,000,000. In addition to this I understand that American Smelting & Refining Co. would have to invest about $1,000,000 in addition to their sulfuric acid plant at Garfield to produce the necessary acid and the phosphate rock producer would have to invest approximately $500,000 additional to provide the necessary phosphate rock. Potassium carbonate and caustic potash.-The production of potassium carbonate and caustic potash would enjoy natural and inherent advantages at Green River for reasons which have already been briefly explained. These reasons arise from the advantage of the base-exchange process using leucite as the source of potash and crude trona as the source of soda for base exchange. So great an advantage does this process give in relation to cost of manufacture that potassium carbonate and caustic potash can be shipped to Pittsburgh and other eastern consuming centers at a lower cost for production than these compounds can be delivered to these same centers by the eastern electrolytic plants. These plants must buy potassium chloride from western producers, must ship it to the eastern electrolytic plant and there convert it to caustic potash and potassium carbonate by a relatively expensive process. Considerable electric energy has to be consumed at these eastern electrolytic plants for making caustic potash but it would not be true to say that this energy would be saved by transferring production to Green River because the electrolytic cells thus released would have to be put to producing caustic soda because the chlorine which they produce is needed and could not be spared by chemical industry. The principal reason from the standpoint of defense for producing caustic potash and potassium carbonate at Green River arises from the general shortage of potash in the United States, and just as in the case of phosphates, the reason for transferring the industry to Green River is greatly enhanced by the fact that the transferred industry could continue to operate profitably after the passing of the emergency. Some information is obtained on the production of caustic potash and potassium carbonate from the following quotation from an authoritative source: "Referring to your valued request of February 13 re deliveries of chemical grades of potash sales, we are pleased to advise you that deliveries during the entire calendar year 1940 amounted to 61,335 tons of KCl equivalent to 38,028 tons of K.O. This is the raw material for the production of other potash compounds used in the chemical industry. There is no accurate data available relative to the proportions of these compounds produced or to the industries to which they should be allocated. Department of Census data which has been incomplete in the past is of not much value at the present time, since the war has exerted such a profound influence on the potash chemical industry in the United States." As most of the potassium chloride used in chemical industry is for making caustic potash and potassium carbonate, the actual potash, K2O, used in this industry is estimated at about 35,000 tons annually. The production of 10,000 tons of actual potash annually at Green River would correspond therefore to about 29 percent of the total estimated present production. This seems to be justified in view of the favorable cost position which would be enjoyed by the proposed industry at Green River and by the growth in demand for caustic potash and potassium carbonate. The Green River industry would be in a position to considerably stimulate the use of potassium carbonate by materially reducing its selling price throughout the United States, which it could do, at the same time maintaining a satisfactory margin of profit. The production of 10,000 tons of actual potash, K.O, annually as potassium carbonate and caustic potash would consume the following principal raw material: Wyomingite (leucite rock). Trona___ Tons 139,000 59,000 It would produce as a byproduct 24,000 tons of a pure grade of soda ash. The equipment required is simple and it should be possible to get into production within 1 year. CONCLUSION In view of the facts which I have presented pertaining to the proposed development of chemical industry at Green River, I respectfully present for the consideration of the committee the conclusion that the following investments are justified both from the standpoint of defense needs and also the establishment of industries which can continue in profitable operation after the passing of the emergency: Total estimated investment in plant not including sulfuric Working capital_ Total_____ 500, 000 500,000 1,500,000 4,300,000 1,800,000 6, 100, 000 The estimated value of the annual production f. o. b. cars plant is as follows: Crude soda ash, 200,000 tons, at $6__ Refined soda ash, 114,000 tons, at $10_ Potassium carbonate calcined, 14,800 tons, at $96. Tetrasodium pyrophosphate, 15,750 tons, at $81--- Total $1,200,000 1, 140, 000 1, 420, 000 1,275,000 1, 485, 000 6, 520, 000 In arriving at the estimated f. o. b. plant values liberal discounts ranging from 10 to 30 percent have been taken from currently quoted prices. AMMONIA AT GREEN RIVER Natural gas is the best source of hydrogen for making ammonia. There are large reserves in the Baxter Basin near Green River which will yield cheap natural gas and as there is ample water for processing available from the Green River, Green River is one of the best locations in the United States for the manufacture of ammonia. Ammonia may be shipped in tank cars and is the source of nitric acid used for making sodium nitrate for fertilizer and for manufacture of explosives. I am indebted to Col. Frederick Pope of Chemical Construction Co., New York City, for authoritative data on the investment required in an ammonia plant and the cost of producing anhydrous ammonia. The figures follow for plants capable of producing 100 and 200 tons daily anhydrous ammonia, or 36,500 and 73,000 tons annually, respectively. The estimates include cost of preparation of site, all facilities, and engineers' and contractors' fees. The development of chemical industry at Green River along the lines which I have proposed will add to the national wealth by producing some essential chemical products at lower cost than available from present sources of supply and from raw materials which are now almost untouched. STATEMENT OF C. K. LEITH, REPRESENTING THE OFFICE OF PRODUCTION MANAGEMENT, WASHINGTON, D. C. Mr. LEITH. As I understand it, Senator, you would like, first, to get from us the facts as to shortage, the need of the development of such quantities as there are in the West? Senator O'MAHONEY. That is right. For the record state what you have been doing and what your previous position was. Mr. LEITH. I am mineral consultant for O. P. M. Before that, for the Advisory Commission to the Council of National Defense. Do you want any further qualifications? Senator O'MAHONEY. It is not a matter of qualifications. It was just to identify you. SHORTAGE OF MINERALS Mr. LEITH. This question of shortage of minerals in the United States has been given study for a long while. It was brought to us |