The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-09-20
MINES CLOSING DOWN.
THE FLORIDA PHOSPHATE INDUS
TRY TOrTBRING.

Cause for the state OF AnairS-hu-
ropsan Buyers Holding of and the
Rock Pilirg Up at the Mines With
out a lIsrket-Miners Largely Re-
sponsibIe for the Situation What
Phosphate Men Say.
A paralysis Of the Florida phosphate in
dustry is threatened. Communications re-
ceived by the business men in Savannah in
terested In the industry reveal bad state
Of affairs.
A Savannah phosphate man who has just
returned from Florida, and who is well
posted on the situation, said yesterday that
it is a very serious one for those interested
In the mines.
The smaller operators, he said, are
in despair, and several Of the large
mining companies have announced
their intention of either shutting down
down altogether or largely ourtailing their
output. The only satisfied parties are those
who sold phosphate lands while the boom
was on. There were q great many, too, who
are sore because they did not sell when they
could
The boom whioh caused a general infa-
"ASAA Va OfCh hLAh5 SCAACCeON "AAA VIZ
phosphate industry is now of and reaction
has set in.
THE LOW PRICES THE TROUBLE.
The chief trouble at present, aud about
the only cause OF the depression, is the low
prevailing prices for phosphate. They have
been brought about by number OF causes,
chiefly the readiness with which the Euro
pean dealers and manufacturers seized upon
the unsettled condition of the new industry
to reduce prices to the lowest possible
limit. In this they have been very sue.
cessful, 50 successful in fact
that they cannot believe that
the phosphate rock has yet reached bottom
prices, and they are now holding out in an
effort to reduce the price still lower. A
very natural and business like proceeding
for them, but death to the phosphate
miners.
THE MINERS HELPED IT on.
In their efforts to reduces prices the Eu-
ropean BUYERS have been greatly aided by
the phosphate miners themselves by their
uubusi0ess-like methods. When the sur
prising discoveries of the Florida phosphate
beds were first realized and the remarkable
development began many people with no
knowledge whatever of phosphate mining
and very little business experience generally
rushed into mining phosphate upon their
own lands or entering into companies to
carry on the business. In the majority of
cases the parties or companies had only
small capital to operate upon.
PILED UP BIG STOCKS.
Surprising that there would be a heavy
demand for all the phosphate they could
mine many of the miners accumulated large
stocks of rocks before attempting to market
any of it. The result was that when the re-
cent decline in prices began those miners
20 koA RI all fhai,
In their anxiety to dispose Of it they were
not satisfied to place their stocks in the
hands Of any one broker, but commissioned
brokers at different places to sell the
same stock, besides Offering it to the fer
tilizer manufacturing companies and even
writing to the other side. The result was
that the actual supply was greatly increased,
and buyers on the other side, thinking the
supply was greater than the demand and
that the price was likely to go much lower.
held off.
In their eagerness to sell. the miners
shipped several cargoes to the other side
consigned, unsold These were forced on
the market for what they could get, causing
a still further reduction in price.
The brokers say the European manufact-
urers chiefly buy their stocks In the spring,
purchasing very carefully in the summer
and the effort of the miners to dispose of
their product at this season was very I'M
wise.
IMPURE ROCK SHIPPED.
It is true also, those who are in a posi-
ton to know say that in the first rush of
the business large quantity of the rock
has been shipped in an unmerchanta ble
condition, owing to an excess OF impurities,
which created a prejudice against the Flor
ida rock. The enemies Of the Florida phos-
phate industry, those interested in mining
mi In ha We haratOfOro baA
monopoly OF the business, have endeavored
In every way to prejudice the consumers
against the Florida product. The European
buyers have made good use of this preju-
dice, in connection with the unsettled con-
ditions Of the business already ramed, to
hammer down the price OF the rock. The
result ia that they have forced the Florida
rock down TO q price OF "a pence per unit
less than the river phosphate in the face of
the fact that the land rock contains much
higher per cent. of bono phosphate.
A MANUFACTURERS VIEW OF IT.
One Of the most experienced and most
successful handlers and manufacturers of
Florida land mock said yesterday to a MORN
ING NEWS reporter:
From every side we hear of disappoinit:
ment in the result Of the miaing of the
Florida phosphate rock, outside of the
streams. There are several causes to which
IL uu6 bno AhCI Uud5 ulluluB hnu SulpplnR TO
Europe is in most instances being done at
loss The hard land phosphate of Florida
is usually Of very high grade, and natur-
ally these outside of the state engaged in
the mining OF muoh lower grade
of phosphate rock see danger ahead
in the competition that sooner or later
must arise in meeting this superior article
in the markets of the world, and to stave
off the to them) evil day as long as posi-
BILE, they have exerted themselves to their
utmost to prejudice all buyers against it,
making it appear that the excessive i'm
purites of the bard land phosphate of
Florida renders its use impracticable.
MINERS TO BLAME FOR THE POOR ROCK.
"Again the miners owe it themselves, to
a very considerable degree, that the preju.
dices created by others has not been coun-
teracted by the actual tests made with the
rock they have shipped abroad. The fact
Is that no small amount of tlis rock has
been shipped in bad condition, and while it
has not given satisfaction, still, by adding
to the volume, it helps TO depre-
ciate the price Of all that class
Of rock, even that which has no excess of
impurities. That very superior article
can, and is. being shipped to Europe, having
the smallest possible percentage Of im~
purities, is proved by the fact that Florida
phosphate running over so Der cent bone
phosphate and less than per cent. iron and
slumina, is being shipped through tins port
LITTLE HIGH GRADE PHOSPHATE SHIPPED.
lowing to the unjust prejudics against
this product the values have been 50 much
reduced below its intrinsic value, that its
mining and preparation must stop or be
largely curtalled until it meets with favor