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The Nichols. Already aged, in 1920 Dr. William Henry Nichols, a skilled chemist with an eye for business, helped form Allied and was its chairman until his death last year. In 1921 his son, Charles Walter Nichols, was made president of Nichols Copper Co. (long rumored about to merge with Phelps-Dodge Corp.). Previous to that, the son had worked in many of his father's chemical plants, added to the knowledge of chemistry he acquired in Cornell (1898- 1902). In 1928 the son was made a director of Allied. Last week it was announced that, during Mr. Weber's absence, Mr. Nichols will serve as chairman of the executive committee. Acting Chairman Nichols is tall, handsome, congenial, likes to talk of the 1,800 purebred Leghorns and 20 Jerseys on his West Orange, N. J. farm. If it were known how much stock the Nichols family controls, what its relation with other big stockholders has been, the mystery of what went on behind the cloud might be solved. Another executive change occurred last week when Clinton Stephen Lutkins, who left Allied to join the New York Stock Exchange firm of R. W. Pressprich & Co., was recalled to become an Allied director and executive vice president.
The Company. Allied is a holding company whose operations may be divided into five groups: The Solvay Process Division produces soda ash and caustic soda, in both of which products there was unexpected price-cutting during December when 1931 contracts were being made. Earnings from this division are thought to be running 40% below last year. Its big competitor is Mathieson Alkali Works, Inc. When it was absorbed by Allied, the Solvays of Belgium, one of Europe's richest families, acquired much Allied stock. They also have a big interest in Imperial Chemistry Industries of Britain.
The General Chemical Division makes sulphuric acid, nitric acid, hydrochloric acid, acetic acid and related products. The business of this division is steady, does not promise great expansion, must be considered a valuable backlog.
The Barrett Division is primarily in the coal tar business. Coal tar is used for dyestuffs, drugs, synthetic plastics, wood preservatives. The residue goes into roads and roofs. This division makes Tarvia, one of the few Allied products known to the public.
The National Aniline & Chemical Division makes dyestuffs. It is thought to contribute little to Allied's net. Its big competitor is E. I. du Pont de Nemours.
The Atmospheric Nitrogen Division. A justification of all of Allied's policies is the success it has had in the production of synthetic nitrogen. The War found the world dependent upon Chile's natural nitrate. Germany met the problem by developing synthetic nitrogen, and Allied's accomplishments in the same direction have made the U. S. independent of other countries for this chemical valuable in peace, invaluable during war.