REPORT FROM NEW YORK

Wondering where the money went may well be the lament of the basic chemical industry today. In recent years it seems that the more money chemical makers have poured into their operations, the less they've received in return. For instance, a group of 19 major chemical producers, representing more than two thirds of total industry sales, had combined capital investments of $5.4 billion over the fouryear period 1961-64. In return, they saw their sales increase 38% and their after-tax earnings from operations gain 42% over the period. Demand. In the next four-year span, 1965-68, these same companies poured another $9.1 billion into capital investment as demand for chemicals continued to grow unabated. But you would hardly know it from the financial returns—sales posted a strong 43% gain but earnings gained a paltry 5%. This year, after investing about another $2.1 billion, these 19 companies may post about a 5 to 7% gain in sales and ...