Registry No. 1218-8-03

NATIONAL RECOVERY ADMINISTRATION

PROPOSED CODE OF FAIR COMPETITION

FOR THE

POTASH AND BORAX

INDUSTRY

AS SUBMITTED ON AUGUST 31, 1933

MEMBER

R

U.S.

WE D0 OUR PART

The Code for the Potash and Borax Industry

in its present form merely reflects the proposal of the above-mentioned

industry, and none of the provisions contained therein are

to be regarded as having received the approval of

the National Recovery Administration

as applying to this industry

UNITED STATES

GOVERNMENT PRINTING OFFICE

WASHINGTON: 1933

For sale by the Superintendent of Documents, Washington, D.C. - - - - - - - - - Price 5 cents
SUBMITTED BY

NATIONAL POTASh PROiUI CLRS ASsOCIATJON AND NATIONAL

BORAX PRODUCRS ASSOCIATION
PROPOSED CODE OF FAIR COMPETITION FOR THE

POTASH AND BORAX INDUSTRIES

To effectuate the policy of Title I of the National IndiustriAl

Recovery Act, to reduce and relieve unemployment, to maintain

adequate scales of wages and hours of labor consistent with American

standards of living, to eliminate unfair competitive practices, to

promote the fullest possible utilization of the present productive

capacity of the industries, to encourage increased domestic production

and consumption, to conserve natural resources, and in other respects

to rehabilitate and to protect the Potash and Borax industries; the

following provisions are established as a code of fair competition for

the Potash and Borax industries:

I

This code is filed by the National Potash Producers Association, a

voluntary association representing practically one hundred percent

of the miners and/or manufacturers of Potash in the United States,

and by the National Borax Producers Association, a voluntary association representing miners and/or manufacturers producinig 95%

of the borax in the United States. These associations impose no

inequitable restrictions on atInussion to membership in their organizations and are truly representative of the Potash and Borax industries respectively.

This code is not designed to promote monopolies or to eliminate or

oppress small enterprises and will not operate to discriminate against

them and otherwise observes Sec. 3 (a) of the National Industrial

Recovery Act.

IL DEFINITIONS

The term "Potash Industry" as used herein is defined to mean the

mining or manufacturing of potassium or potash salts from natural

deposits containing potash salts; the term "Borax Industry " as use I

herein is defined to mean the mining or manufacturing of borax or

boron compounds from natural deposits or raw materials containing

borates; the term "Employees" as used herein shall include all

persons employed in the conduct of such operations, except the staff

officials; the term "Effective Date" as used herein is defined to be a

date two weeks after the code has been approved by the President.

I

On and after the effective date, the minimum wage that shall be

paid by employers in the potash and borax industries to any of their

employees shall be at the rate of $17 per week for 44 hours of labor,

except certain , types of transient common labor employed intermittently in New Mexico, where it is the practice to adopt prevailing

wages paid by the Agricultural Industry.

9936-33 (1)
2

IV

On and after the effective date, employers in the potash and borax

industries shall not operate on a schedule of hours of labor for their

employees, in excess of 44 hours per week, provided that during

temporary periods of peak production or during emergencies resulting

from sickness, epidemic, or plant break down or during periods when

unusual maintenance is required, the maximum hours per week may

be exceeded.

V

Office employees are included in the benefits of this code. Th e

existing amounts by which wages in the higher paid classes exceed

wages in the lower paid classes shall be maintained; employers in the

potash and borax industries shall not employ any minor under the

age of sixteen years.

VI

Employers in the potash and borax industries shall comply with

the requirements Sec. 7 (a) of Title I of the National Industrial

Recovery Act as follows: "(1) That employees shall have the right

to organize and bargain collectively through representatives of their

own choosing, and shall be free from the interference, restraint, or

coercion of employers of labor, or their agents, in the designation of

of such representatives or in self-organization or in other concerted

activities for the purpose of collective bargaining or other mutual

aid or protection; (2) that no employee and no one seeking employment shall be required as a condition of employment to join any

company union or to refrain from joining, organizing, or assisting a

labor organization of his own choosing; and (3) that employers shall

comply with the maximum hours of labor, minimum rates of pay, and other conditions of employment, approved or prescribed by the

President."

VII

In order to keel) the President fully informed as to the observance

or nonobservance by the potash and borax industries of this Code of

Fair Competition, each person engaged in the potash and borax industries will furnish reports in substance as follows and in such form as

may be hereafter provided:

(a) Waqe8 awd hours of labor.-Monthly returns showing actual

hours worked by groups of employees and minimum weekly rates of

wages.

(b) Reports of production.-Monthly returns showing production

of each commodity and for each grade of product in terms of the

conimonly used unit.

VIII

To firther effectuate the policies of the Act, the National Potash

Producers Association and Nationial Borax Producers Association are

organized to ( cooperate with the Administrator as planning and fair

practice agenwics a1d may from tine to tiine present to the Administrator recomn Ielidations tending to effecetiate the operations of the

prvisiOns of tiIs Code imd the pol i c y of the National Industrial

Recovery Act, anld in particularly along the following lines:
3

1. Recommendations as to such further action by the Administrator

as may be required to secure the proper observance of the Code and

promote the proper balancing of productionl and consulmpt iol aind the

stabilization of their industries and employmient.

2. Recommendations for the making of requireillets by the

Administrator as to practices concerning metho(s and conditions of

trailing in the potash and borax industries, and the naming and reporting of prices which may be appropriate to promote stabilization of such

industries and to prevent and eliminate unfair and destructive coMpetition. 3. Investigating and informing the Admiinistrator on behalf of the

potash and borax industries as to the iiml)ortation of competitiVe

articles into the United States in substantial quantities or increasing

ratio to domestic production on such terms or under such conditions

as to render ineffective or seriously to endanger the main tenance of

this Code.

4. Recommendations for dealing with any inequalities, practices,

or methods of doing business that may otherwise arise to endanger

the stabilization of such industries and of production and elJployient.

5. Cooperate with the Administrator in making investigations as

to the functioning and observance of any of the provisions of this

Code and to report the same to the Administrator.

Such reconunendations, when approved by the Administrator, shall

have the same force and effect as any other provisions of this Code.

Ix

This Code and all the provisions thereof are expressly miade subject

to the right of the Presiden t, in accordance with the provisions of

Clause 10 (b) of the National Industrial Recovery Act, from time to

time to cancel or modify any order, approval, license, rule, or regulation, issued under Title I of said Act, and specifically to the right of

the President to cancel or modify his approval of this Code or any

conditions imposed by him upon his approval thereof.

X

Such of the provisions of this Code as are not required to be included

therein by the National Industrial Recovery Act may, with the

approval of the President, be modified or eliminated as changes in

circumstances or experience may indicate. It is contemplated that

from time to time supplementary provisions to this Code or additional

codes will be submitted for the approval of the President to prevent

unfair competition in price and other unfair and destructive competitive practices and to effectuate the other purposes and policies of

title I of the National Industrial Recovery Act consistent with the

provisions hereof.
APPENDIX A

PRODUCERS OF POTASH

1. American Potash and Chemical Corporation (Searles Lake, Calif.).

2. United States Potash Company (near Carlsbad, New Mexico).

3. United States Industrial Chemical Company (by-product from molasses

as an incident in the manufacture of alcohol-Baltimore, Maryland).

Production of potash in the United States

[Quantities in tons of 2,000 lbs. of pure potash (K 2 0)]

A P. & C U.S. Indus- A. & C P US. Pot- trial

Year Corpora- ash Co. Chem. Co. Total

tion and others

1928... ..--------------------------------------------- 55, 214 None 5,166 60,380

1929 ..--.--------------------------------------------- 56,054 None 5,536 61,590

1930 ------------------------------------------------ 57,730 None 3,540 61,270

1931-------.----------------------------------- 49,563 19,027 23,500 63,880

1932 .--------------------------------------------- 34, 187 1 24, 303 2 3,500 61,990

I By difference.

2 Estimated.

(4)
APPENDIx B

PRODUCERS OF BORAX OR BORON COMPOUNDS

1. Pacific Coast Borax Company (Mine at Kramer; refinery at Wilmington,

Cal.).

2. American Potash and Chemical Corporation (plant: Trona, California).

3. West End Chemical Company (plant: West End, California).

4. Stauffer Chemical Company (plant: San Francisco, Calif.).

5. Borax Union, Inc. (plant: San Francisco, Calif.).

6. Pacific Alkali Company (plant: Bartlett, California).

7. Sterling Borax Company (plant: New Brighton, Pa.).

8. Chas. Pfizer & Company (plant: Brooklyn, New York).

(5)
SCHEDULE 1

EXPLANATORY MEMORANDUM ON POTASH

At the end of this memorandum there is a short summary of the world potash

industry which we respectfully ask the Administrator and his associates to supplement, if time permits, by reading readily accessible government publications

dealing with the potash industry.

THE AMERIeAN POTASH INDUSTRY IN RELATION TO UNEMPLOYMENT

The following statement in reference to the American Potash industry explains

employment in the potash mines and plants and it is believed that it justifies

a relaxation of the requirements as to maximum hours as compared with the

number of hours which may be prescribed as maximum in other western localities.

Potash is now pro(uced in the United States from natural deposits of potassium

salts by the American Potash and Chemical Corporation, in the Searles Lake

region of California, about 185 miles northeast of Los Angeles, and by the United

States Potash Company in the neighborhood of Carlsbad, New Mexico, about 180

miles northeast of El Paso. As the natural potash deposits and the plants of the

producing companies lie in desert regions, considerable distances from centers of

population, it is not easy to secure men for emergencies or peak production, and

the opportunities for regular employees to pass their leisure time in beneficial,

wholesome, and worthwhile recreation and diversion are limited. Employees

have been perfectly content to work six days a week, in fact prefer the six-day

working week.

The potash producing enterprise operating at Searles Lake (Trona) in California has engaged in its operation since 1916 and normally employs over 400 men.

It has housing facilities for its employees and can even provide for a reasonable

number of additional employees.

The Carlsbad operators have been operating their property since 1931.

They have become employers of labor inl the depression period. Over 400 are now

employed and another property now being opened will be in operation within a few

months and will employ a considerable number of men. The operation already established at Carlsbad has now progressed to a point where it can and will employ

a reasonable number of additional men and bring the working week to a maximum of 44 hours, but this change can only be made at considerable cost at a time

when the company's finances are required for development of its mine and refinery.

It cannot provide housing facilities for all of its employees. Because of lack of

potable water, most of its emiplovees must reside in Carlsbad, New Mexico, nearly

20 miles from the scene of their employment. The development of potash I properties near the town at a time when capital has not beer available for housing

facilities has resulted in an acute shortage of residences and rooms for both married

and single employees. This condition cannot be quickly remedied.

In Californiia, at Tromia, the nornial work is performed by a force of regular cmllployees. During i peak periods of shipping, maintenance, and office work, the normal force is iairitaired at a point below Ih i force which would be required to take

care of peak demIars ider normal wrkin rg limrs to avoid laying ofl men when

work is slack. This results in the company policy of permitting the normal force

for working overt ime to take care of peak requirements until productiri operations

have hemcomie itormal.

Both Carlsblad and Trona operation of mines a(1 refineries bring inany emrergenicies aid tlie weirn a 1(1tear on the plants is coisideraid1e. This statenienit is

particularly true tis regans retiniing machiinery whi ici quickly corrodes and is

olierwise iripaired y the natural ninterial which it handles in its processes of

reliremerit'. It is necessary to operate the plants 24 hours a day. They cannot he opera ted otherwise for the reason i that too much tinne is lost in starting

and stopping the nacliinery. TIe solutions imiust be heated and while hot are

saturated witlh potash. Il cooling off during the shut-down period the potash

(6)
7

crystallizes out aII( blocks up pipe lines and apjparatu . Therefoire, w whenever

a shutdowii is anticipated the pant is run several hours without pJrJi(inchi all"

potash. On the other hand. iti resuminig operatioiis this process must be reversed

and the plant cannot produce the refined product until all solutioiis are hot.

Also, both product in process and finished product tend to cake upoi standiiig.

The materials must be kept in motioii to prevent blocking up the apparatus.

In potash producing localities the plant and iniiie operations employ all labor

normally belonging to the industry and at Carlsbad is provided a iew field of

employment not available to labor before the depressioii.

Use of leisare tine.-As already stated the sources of labor at Trona and at

Carlsbad are respectively Los Angeles and El Paso. In each case these sources

of labor are almost 200 miles away from the potash operations. The potash producing communities are in desert areas. The eniployneiit of idle time iii these

communities presents perplexing problems. The Trona company furnishes

reasonable recreation facilities for its employees, such as, swimming pool, golf

course, tennis court, lighted for night playing, baseball field, lighted for i Jdoor

Jaseball, dance floor, rifle range, motion picture theater, and pool hall. At

Carlsbad th re are similar opportunities for recreatiJ, aiid in addition a lake

available for swimming and boating. Under the existing schedule of working

hours per week enipl Jyees are reasonhablv satisfied with the forms Jof diversion at

their command and do not frequently take long trips awav from ]ione. If two

(lays per wvek sliould become the employees' all Jtimient f leisure time it is expected that tley would go to El Paso ando over iiito Juarez, Old Mexico, from

Carlsbad, aJd to Los Angeles from Trona, seeking these larger places of entertainnient am( recreatii. In the case of the Carlsbad employees much of their

money would be spent in a foreign country. Many employees g going away for

two (lays viuld doubtless find it impossible for Jie reason or another to get back

for the resumption of their work at the close of the new rest, period. It is almost

certain that both the potash producer and employees would suffer loss and inconvenience in these isolated communities through having more leisure time than

the employees can properly enjoy.

Maxcinmn Hours (if Em ployme nt.-In view of the labor conditions as just set

forth, the potash ii(ustry recommends in its cole a 14-hour basis (of work for its

employees. Generally speaking, this would be a five and a half day week of

eight hours a day for five (lays aid four hours the sixth (lay. At Tronma, ill California, employees are nMiw substantially on a 48-hour basis in the production and

maintenance departments. li certain other departments, such as the office, the

normal basis is 44 hours per week. In the New Mexico operations the mining

and refining departments are operating Jn substaiitiallv a 56-hiour basis per week,

in other departments the hours are suibstamitially less but average at least .50

hours per week.

It is believed that under all the unusual conditions under which the iidu4strv

is now operating the 44-hour-per-week basis is the one that should be adopted.

Even this should subject to the qualification that during unusual comlitimis such

as emergencies, epidemics, temporarl peak periods, the maximum may be

exceeded temnporarily.

Effect on Emploiment. -The Trona (California) operation employ'vs a force of

about 410 men. A 44-hour basis will increase the munber employed at this plant

by about 40 men. The increase at the Carlsbad mine and plant (J)I the proposed

basis will be about 70 meii, over 400 nov being employed. Iii the Carlsbad section

another development is being made but it is not ready for productioJ.

Miimumn Wages.-The potash industry has maintained throughout the depression a relatively high scale of wages. Wages have not been at the depressioii

level as in many other iiidustries, only one reductioni of ten per cent having hbell

made at the Trona plant. The minimum wage scale paid at the Tronia plaiit is

$17.28 per week for common Mexicani Labor an(d the lowest rate paid to iuniskilled

white labor S21.60. The skilled labor wage rate is far in excess of these two

mininia. The same observations apply to wage scales maintained at CarlsbJad

with the exception that transient common Mexican labor is employed intermittentlv at the rate of 15- per hour. This x\age rate is already in excess of wages

paid similar labor in that general locality in New Mexico by the agricultural

industry, and ami increase in this wage rate would uiindoubtedly work to the disadvantage of time agricultural industry, hence no change is proposed here with

respect to the ages of this type of transient labor. The industry, however,

stands ready to advance wages for this class of labor, keeping it in line at all

times with other industries emlploying the same labor.
8

The code provides a minimum wage, with the exception noted, of $17.00 per

week. As stated, however, this minimum is not important for the great majority

of the employees already receive far in excess of that amount. It should be borne

in mind, too, that at Trona and to a small extent at Carlsbad living quarters are

furnished at slightly below cost. There are other special facilities and services

furnished particularly at Trona. At Carlsbad improvements in living conditions

can be expected as capital is available for further housing development.

Effect on production costs.-The code of the industry does not propose to change

the total weekly compensation paid to the employees, even though the maximum

working hours are substantially decreased. This will represent in fact a substantial increase in the hourly wage rates at the plants for all the producing

companies. Consequently, the industry will be compelled to bear the increased

production cost, which it can ill afford to do under present circumstances unless

it is protected from foreign competition. The total increased production cost

annually on the suggested basis for the Trona plant will approximate $70,000;

whereas the total increased production cost for the United States Potash Company will be approximately one hundred thousand dollars per year.

BRIEF HISTORY OF POTASH PRODUCTION

In this country potash production is essentially an infant industry. The

following is a brief account of the history of the industry:

Introduction.-For fifty years prior to the world war Germany had a monopoly

of the potash trade of the world.1 In 1857 the Prussian Government sank a

shaft to mine potash. From this time on and even up to the present time, the

German Government has dominated the potash industry under the supervision

of the Prussian Minister of Commerce and Industry (later under the Minister of

Economy).

Prior to 1915 all of the postash salts consumed in the United States were

imported from Germany. Early in 1915 an embargo against the export of

potash from Germany eliminated the supply of potash, which was essential to

industry and indispensable to agriculture, until the end of the world war.

Sales of German potash in the United States.-For many years sales of German

potash have been controlled by the German Potash Syndicates. In 1908 the

Schmidtmann mines entered into a contract to sell potash to American purchasers at a lower price than the syndicate price. This caused the German

Government to introduce a bill in the Bundesrath to invalidate the American

contracts. This question was later settled through diplomatic channels, but

the Americans had to pay a higher price for potash than the contract they had

made with Schmidtmann.

In 1910 the Imperial German Government enacted a new potash law which

invalidated the favorable American contracts in spite of potests of the United

States Government and also gave the Imperial Government direct control of

the potash inidustry. This all resulted in the Americans not only losing the

profits on the contracts above referred to, but they had to pay an additional

surtax of several million dollars to the German Government to obtain potash,

which sharply emphasized the danger of their complete dependence upon

German potash.

Search for potash in the United States.-The Congress of the United States,

in 1911, was moved by this controversy to appropriate funds to conduct a search

for potash within the borders of this country. This search was instituted jointly

by the Geological Survey and the Bureau of Soils. Studies were made of:

(1) Salizies in the arid West.

(2) Aluiuite Deposits.

(3) Insoluble potash bearing silicates.

(4) Cement and blast-furnace dusts.

(5) Kelp and other vegetable materials.

(6) Salt deposits in the Permian Basin in Western Texas and Southeastern

Ncw Mexico.

This search was interrupted by the attempts during the war to produce potash

from various sources.

In 1912 Dr. J. A. Udden, of the University of Texas, discovered potassium

chloride in the brine from a deep well in the so-called Permiian Basin in West

lexas. Following this discovery, potash was recognized in the cuttings or drill

I The worldl potisli indtv ry is well described in the Department of Coiierce, Trzade Promotion

series #33, Poa'i Sinificince of Freigiht control and Eecomioime neI of Domilestic Development, by

IL M. H oar, 1926.
9

waters from a number of oil wells in this basin, culminating with the discmvery of

sylvite in cuttings from a well near Carlsbad, New Mexico, in 1925.

In 1926 an Act of Congress authorized the expenditure for potash exploration

by the Geological Survey and the Bureau of Mines, of S100,000 per year for

five years. A total of 24 core-drill tests were made and the existence of potash

salts over a large area of the Permian Basin was confirmed.

Coincident with the exploration of the governmental agencies, a series of coredrill tests near Carlsbad, New Mexico, were conducted by interests which later

formed the United States Potash Company. These tests outlined a large coinmercial body of potash salts, which body has been confirmed by underground

mining. Later the Potash Company of America conducted core tests which, in

1932, developed a commercial body near that of the United States Potash

Company.

Development of potash supplies during the World lWar.-During the war the

scarcity of potash was felt both in agriculture and industry, and the American

production of potash began during this period. A feverish building of plants to

manufacture potash salts followed the German embargo on the exportation of

potash. By 1918, 128 plants were producing only one fifth of the pre-war potash

requirements of the United States. The principal production came from the

saline lakes of California and Nebraska with some production from kelp, cement

dusts, silicate rocks, and distillery and sugar refinery wastes.

Effect of close of World War on potash production in the United States.-Following the close of the World War the markets of the United States were again open

to the foreign producers. Potash was offered at prices lower than cost of American production. Most of the American plants which could only live on war

prices, closed at or shortly after the end of the war, and by 1921 only two plants,

producing in substantial quantities, remained. One of these, the American

Potash and Chemical Corporation, used the brine of Searles Lake, California, for

raw material, and the other, the United States Industrial Chemical Company,

made its potash from the waste of a distillery. Pre-war prices were resumed

and have been maintained since 1921. There is no tariff protection.

After the war the French Government sequestered the Alsatian potash mines.

In 1924 the French Government purchased the German interest in the sequestered mines for a large sum of money to be liquidated in 20 years. The mines

will ultimately be turned over to the management of an exclusively French

organization but in the meantime they are operated under the Minister of Public

Works.

After the World War, the German syndicate sold in America through the

Potash Importing Company of America, and the French through their own office.

Later the German syndicate canceled the contracts of the Potash Importing Company and announced, with the French, that the German and French were opening a

joint office to sell Potash in America. This led to a suit with the United States

Government. The French defense was that the French Government owned the

mines; therefore, a sovereign government could not be sued. This resulted in a

new company being formed by the French and Germans in Holland, the N. V.

Potash Export, My., which was to handle all American Potash sales, and a consent

decree with the United States Government was taken. This company is operating

at the present time.

About 1920 an effort was made to rehabilitate the Polish Potash mines. These

mines are producing now in a small way but have some potentialities, and very

recently the German syndicate has concluded an arrangement with the Polish

mines.

In 1917 Potash deposits were found in Russia. These are being developed and

show great promise.

Recently, Potash development in Spain has proceeded at a fast rate, and one

Spanish mine has probably the highest grade ore in the world. Due to the

extremely low wages paid (about $6.00 per week) and the low scale of living, the

Spanish Potash industry offers and is giving serious competition to the United

States producers. The Spanish producers and to a lesser extent the other foreign

producers have a decided advantage due to low water and rail rates. The nominal

par of a peseta is 19>oo and the value today is 11.8 , which gives them a tremendous advantage in the exchange.

Production of the remaining two plants in the United States increased steadily

from 1921 until 1929, particularly that of American Potash and Chemical Corporation at Searles Lake, which at this time initiated a further increase in its

productive capacity, which has never been utilized to full capacity becauselof

decreased consumption by agriculture.
10

The core drill tests of the United States Potash Company iin New Mexico disclosed commercial deposits of potash salts and in 1931 shipments of potash salts

from this source began. A refinery for production of high grade muriate of potash

commenced shipments late in 1932.

The explorations of the Potash Company of America in New Mexico have

resulted ill the commencement of sinking of a shaft. Potash salts for the fertilizer trade will probably be available from this shaft when completed. Experiinents on the recovery of cement dust are being conducted by several of the cement

plants and the United States Geological Survey reports that the cement plants

are likely to become an important factor in the future.

Over 50'( of the potash is now supplied by foreign producers. During 1932,

for example, the Trona plant and the Carlsbad plant each supplied about 20%

of the American market whereas the German and French producers supplied

about 54 ". The remaining tonnage was supplied by the United States Industrial Chemical Company as a byproduct and more recently by Spanish producers.

The domestic production in 1932 was sharply curtailed. The Spanish importations during that year had the effect of limiting American production.

There are appended hereto tables shwiiig the following facts:

(1) Productioi of Potash in the United States from 1915 to 1932, inclusive.

(2) Import. of Potash into the United States from 1928-1933, inclusive.

(3) Consumption of Potash in the United States from 1928-1932, inclusive.

Principal problem of the industry.-At the present time the chief problem

facing the itidustrv is the control of importations from foreign countries, particularly Spain. In foreign countries, where living conditions are entirely different

from those in effect in this country, potash can be produced cheaper, and with

water, transportation can be an exceedingly effective competitor with American

industry. At this time it is particularly important that foreign potash producers he not permitted to ship into the country and sell at prices and in such

volume that will injure the American industry, tus destroying the industry

and detrimentally affecting labor. The National Potash Producers Association

assumes that the Administrator will, under the provisions of the National Industrial Recovery Act, take steps to keep foreign competitors from controlling the

industry as soon as the American industry presents information to him showing

that foreign importations into the United States are injuring the American

industry, preventing its normal growth and development, threatening employment, and portendinig other dangers.

As a means of making shortly a recommendation to carry out the above,

the code provides that the Potash Association shall make inquiries and investigations and present to the Administrator reports with recommendations for his

cotsideration.
11

EXHiBiT 1

Potash salts produced in United States, in tons of 2,nOO lbs.

[Figures are from U.S. \Iineral Resources

Production i Produet ion

Number Number

of plants Potash Pure pot- Year of plants Pota h Pure potsalts ash K 2 0 jslts ish KJ)

1915 -----.-------. 5 4,374 1,090 1924 ----------------- 12 43,734 22,903

1916----------------- 70 35,739 9.720 1925----------------- 9 f1,5 25, 448

1917 ----------------- 95 126,961 32, 573 1926----.--------7 46, 324 23, 366

1918 ---------------- 128 207,686 54, 803 1927----------------- - 9 76, s19 43,510

1919 -.----------- . 102 116, 634 32, 474 1928-------------_---9 104 129 60, 30

1920 ---.------- 66 166,834 48,077 1929 ---------------- 5 107, 820 61, 590

1921 ---------------- -- 20 25, 485 10, 171 1930 5 105,810 61,270 1922 ----.------- 12 25, 176 11, 714 1931 ----------------- 133 920 63,880 1923 ---------------- 12 39,029 20,215 1932 ----------------- 6 143 120 61,990

NOTEs.-From 1922 to 1930, inclusive, all but a maximum of 5,000 tons annually of pure potash (K 20)

were produced at Searles Lake. Production from New Mlexico potash field began in 1931.

EXHIBIT 2

Imports of potassium salts into the United States and possessions

Used in chemical and Used chiefly in

fertilizer industries fertilizer industry

Short tons Short tons Short tons Short tons

(salts) (K20) (salts) (K2 0)

1928------------------------------------------------ 975,66 1 330,493 931, 616 310,000

1929 ------------------------------------------------- 929,470 324, 638 870, 502 297, 000

1930------------------------------------------------- 979, 006 342, 654 933,324 322. 000

1931------------------------------------------------- 577, 195 214, 785 528, 764 194, 100

19321- ------------------------------------------ 3:30, 964 113,505 2S7, 53S 95. 980

1933 2..----------------------------------------------------. ........----------- 115,210 39,919

I 1932-Potash Salts used chiefly in chemical industry-information not available % of K2O may not

agree with government's final figures. 2 1933-First 5 months.

Source of information:

1928-31-U.S. Bureau of Mines annual bulletin.

1932-33-U.S. Dept. of Connerce-Statements 2815, 2862.

April 4, 1933-U.S. Bureau of Mines M.M. Report No. MMS-186.

EXHIBIT 3

Consumption of potash in the United States

[Short tons pure potash (K 20)]

Sales from Tolal conUStio Imports suipmtion

in U. S.

Sales + imnports less

export 1928 --. _------------------------------------------------------------ 45,216 330,493 375,709

1929 ------------------------------------------------------------ 47,364 324,638 372,002

1930-------------------------------------------------- -------- 46, 716 342, 071 388, 7S7

1931--------------------------------------------------- ---------- 48,237 215,524 263, 761

1932 .___-------------------------------------------------- ---------- 54,185 113, 505 167, 690
SCHEDULE 2

EXPLANATORY MEMORANDUM ON BORAX

There are seven companies producing borax and boron compounds, but' the

great proportion of the borax is produced by two companies: American Potash

and Chemical Corporation, Trona, California, and the Pacific Coast Borax

Company, with mines at Kramer and refinery at Wilmington, California. Substantially all of the primary production of borax in the world is produced in the

United States.

The labor situation of the American Potash alnl( Chemical Corporation has

already been explained in the memorandum dealing with Potash and it is, therefore, unnecesary to refer further to that plant. So that some knowledge of operating conditions of the other large company producing borax may be known, the

following statements are made portraying labor conditions of the Pacific Coast

Borax Company. This menorandum will be supplemented later, giving similar

information for the other companies producing borax and generally explaining

the problems of tle in dust ry.

Laor.-All of fie horate (,re mined and the production of borax from brines

occurs in desert regions of California. This makes for a scarcity of available

labor on short notice which may be required by the fact that the Borax or ore

produced in the t.nited States not only covers the domestic but the major por- tiin of tle world s reqi rent s as Well. Fior this reason it is dilicuit to gage

at all tins the rwcessary prductioi to meet such Huetuating demands. The

inability to obtain labor at short notice has resulted in the necessity of the regular

labir fWrce having to w, rk overtiine as oceasioii rcipiires. It is reqluested that

eonsioeration he given to this feature in prescrihing the weekly hours of labor

as well as the, fact that labor i such remote regions does not have the facilities

or al vatages for the enjomivent of leisure tine to he had in mnire IOpulous seetiois. Too much leisure is likely to make fir discomitent.

We believe it desirable to also point out that most id the companies also have

to prmvi' hIiousing and b(arding accomodations. Any enlareeient of labor

beyond the point already provided for would require a capital invest meat for

these alditional facilities with lditional allowance to cover the peak periods of

employment when extra lalor might he necessary.

We further ree nest that exceptions to the maximum hours of Iabor per week

he allowed to cover emergency operations due to delays in obtaining additional

an i Ieipornary labor. Operate iols at some places are in a continuous cyele of 24

lhin per day, making it necessary at times to have repair and maintenance men

work overtime to keep Ihe shut-doin period to a minimum.

3aim";u liour of Em1ploymcn/ -The mine and c(wcentrating plant at Kramer

is operating on a 5-hour-pcr-week basis. The force has been contented with

such hviurs f laior and in fact have expressed some cocern at shorter hours

eiing adopted. As before stated opp)-ortimitics for varied leisure are not to be

had and ie men cinploye I have always been accust med to such conditions.

The refinery at Wilniigt on, California, is now operate ing on an average of about

47 hours per week It is propi sed to reduce hours (f labor to a 44-hour-per-week

schedule rci equeing the rivi lge of temporary- exceee(linent weii emergencies

arise and extra labor cannot he obtained.

1/utitmium Wl'os. .Lveni thigh lic working hours per week are sharlily

reduced inler the Iri'ent prioi-al, i0 is not Iprop ed to reduce the minimum

weekly w age. The mininium xx age in the codi' is et at I7.00 per "eek but this

is considerably loer IHan iha at reTeini being iaid to a large majority of file

eiplo yee. (moioidc ral ion should al o be given i lie w age seale to I he fact that

imost com mnie, furnidh a ommiaion, eals, and supplies at or under coe-t.

Eijut 'ot /omliewto ('osts. The fact that lie horax producing companies do

not intend t" reidoe < el.ly eipienat ion xxile derea-iig t he mwinun i number

f Ior, rncans thali 11 ie will be a resultant suhAantial increase in production ees tfor Wages. To iN, increae shoil be ailded the inreed cost of other

(12)
13

items required in the production and packing of borax products which it is impossible to determine at present.

The attention of the Administrator and his associates is respectfully directed

to a publication issued by the Department of Commerce, giving further information respecting borax and boron compounds. This publication is identified as

I.C. 6499, dated September 1931, and issued by the United States Bureau of

Mines, Department of Commerce.

0
UNIVERSITY OF FLORIDA

3 1262 08582 8795