PETROLEUM, 
67 
Encouragement of multiple-product 1 (by-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 wall 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 may be done in a broad, general way . 2 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 
bj^-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 
J The term “ multiple product” is used to convey the idea of unlimited range of growth, 
a conception inadequately expressed by the word “ by-product.” 
2 This matter is exceedingly involved and complicated and can be presented here in 
broad outline only. A more detailed study of the r61e of by-products in the mineral 
industries is in course of preparation for publication later in this series. 
