PETROLEUM. 95 



Encouragement of nvulti'ple-produGt^ {hy -product) development. — 

 Even with better-rounded integration in production under way 

 and the role of steam-raising fuel oil shifted to a tapering use, addi- 

 tional gain will result from a constructive shaping of the demands 

 for petroleum by-products so as to create a balanced outlet for the 

 full values contained in the raw material. This accomplishment will 

 depend upon a clear appreciation of the fundamental importance and 

 tremendous significance of multiple production in general, together 

 with a true perception of the peculiar nature of the problem that 

 this matter presents. Since by-products represent a field of com- 

 paratively recent growth, very immature as yet, and since, moreover, 

 the term tends to connote products of incidental importance, it may 

 be well to visualize the role of by-products in industrial growth, so 

 far as this maybe done in a broad, general way.^ In this preliminary 

 measure of the field we will confine ourselves to those industries en- 

 gaged in the breaking down of raw materials into products, as the 

 by-product principles are most outstanding and conspicuous there, 

 though they are less obviously applicable to a greater reach of in- 

 dustrial activities. 



Industries, such as the mineral industries, engaged in the extrac- 

 tion of values from raw materials, have developed under the in- 

 fluence of demands for one or more products and only under ideal 

 conditions, not easily attained, do those demands become balanced 

 so as to cause full value extraction, that is to say, full utilization. 

 Such industries, then, under simple and (industrially) primitive 

 conditions produce one or more main products and waste products. 

 The waste is produced arbitrarily and necessarily, and is discarded 

 in lack of a demand calling for its use. As such industries develop, 

 products of value come to be made from the so-called " waste " ; the 

 industry then turning out one or more by-products, in addition to 

 the main product or products, and less waste. But the development 

 of by-products is a slow and lagging growth, so much so that, by and 

 large, an imposing loss of potential value accrues by this default. A 

 fully developed industrial activity produces main products, balanced 

 according to demand ; by-products fully developed to current needs ; 

 no waste products. There are few activities in the United States 

 that have attained this measure of effectiveness ; perhaps the modern 

 packing house is the most conspicuous example we can adduce. 



In the course of industrial growth, the production of main prod- 

 ucts is under the control of a natural law whereby supply and 

 demand seek mutually and automatically to effect a balance against 



1 The term " multiple product " Is used to convey the Idea of unlimited range of growth, 

 a conception Inadequately expressed by the word " by-product." 



* This matter is exceedingly Involved and complicated and can be presented here In 

 broad outline only. A more detailed study of the rOle of by-products in the mineral 

 industries is In course of preparation for publication later in this series. 



