For the production of toluol by cracking crude oils or petroleum distillates, three processes of the many submitted were officially approved and contracts awarded for operation. The first and most important of these was that of the General Petroleum Co. of Los Angeles, Calif. Under their scheme a yield of 6 per cent toluol was obtained from a petroleum distillate, of which there was a large quantity available, by treatment under temperature and pressure. To facilitate production of toluol by this means, two large plants, one at Los Angeles and the other at San Francisco, were erected at a cost of approximately $5,000,000. These plants have a monthly capacity of 3,000,000 pounds of toluol and their construction destroyed all possibility of a shortage in this vital raw material. Another process was that known as the Rittman process, evolved by a scientist of the Bureau of Mines. This scheme, which called for producing toluol from solvent naphtha or light oils by cracking under high pressure and temperature, was finally demonstrated to be capable of operation under war conditions, and production had just started at a plant on Neville Island, Pittsburgh, Pa., at the time of the signing of the armistice. A third process was that known as the Hall process, by which toluol was also obtained by cracking solvent naphtha under high pressure and temperature by another, different, mechanical system. This scheme was in operation on a small scale during 1918 at the Standard Oil Plant, Bayonne, N. J. Phenol, one of the essentials in the manufacture of picric acid, was another raw material, the production of which was greatly augmented. At the time of our entry into the war the monthly production amounted to 670,000 pounds, while in October, 1918, it had been increased to 13,000,000 pounds. In December, 1917, the price of phenol as fixed by the War Industries Board was 46 cents a pound, while Government contracts in force a year later had reduced this figure to 31 cents a pound. The price of sulphuric acid jumped from $14 a ton to $60 a ton early in the war, while nitric acid advanced from 5¼ cents a pound to 10 cents. The shortage of sulphuric acid was met by the erection of both chamber and contact plants in all high-explosives factories built for or under direction of the Ordnance Department. Both pyrites and sulphur were used at the beginning of the war, but the submarine warfare stopped the importation of the pyrites from Spain, and therefore sulphur deposits in Texas and Louisiana were depended upon. A destructive storm in the early part of 1918 temporarily curtailed the production from Louisiana deposits, but repairs were made in time to prevent its effect being felt by the acid manufacturers.