The morning news. [volume] (Savannah, Ga.) 1887-1900, 1891-09-24
The Florida Phosphate Industry.

The Florida Phosphate Industry.
The MORNING NEWS has published a
number of articles relative to the existing
depression in the Florida phosphate indus
try. and the causes of the depression. each
one being from different source, and as
they differed very little it is fair to presume
that the statements contained in them were
about correct. Ii is admitted that many of
the companies engaged in mining phosphate
and others owning phosphate lands
are not in a prosperous condition.
The reason for this condition of affairs is
| that the companies cannot mine phosphate
rock aud prepare it properly for
market as cheaply as they thought they
| could, and now that there is decline 10
the price Of their product and an increase
in transportation rates not only have their
profits disappeared, but they are threatened
with the loss of their capital. Some of the
companies paid prices for the land they
hold altogether out of proportion to their
real value, and then capitalized them at a
sum many times greater than that which
they paid for them. In order to pay divi-
dends they must do a large and profitable
business. That they cannot do unless there
is very considerable increase in the price
Of phosphate rock and a large decrease in
the rates charged for transporting the rock
to foreign markets.
The companies which are threatened with
trouble are those engaged in mining land
rock. Those who are mining pebble phos-
phate in the rivers are finding no trouble
in disposing of their product at remunera-
tivs prices.
1t is admitted, however, that the land
phosphate is of a higher grade than that
mined in the rivers, and if it were freed
from certain impurities it ought to COM
mand better price. And as a matter Of
fact there is good demand for it when it
is prepared for market as it should be.
There is a manufacturing establishment in
this city which treats the rock IN q way that
leaves it a highly desirable product for
which there is a steady demand.
But the vast quantity of rock thrown upon
the market almost in thu condition it was
when taken out Of the mines has not only
| caused a decline in the price of rock of
this character, but also Of that which
has been freed from extraneous matter
and impurities. OF course, rock which is
made merchantable will eventually COM
mand price in which there Is a profit.
because it is wanted. but recently the offer
ings Of rock have been so great that buyers
have held off believing they could obtain all
they want at their own price, They will
find out their mistake and then there will be
profitable market for properly prepared
rock
But it IS evident that there will
have to bs an entire revolu.
ton in the phosphate industry
before success in it is achieved. The small
companies. which have not the means to
prepare the rock as it should be, will have
to yield the field to the large and rich ones,
which will not only furnish what the mar
keu will take, but will control the GU tput
1t will take time to accomplish this, but
that it will be accomplished there is no
reason to doubt. And before it is accom-
plished there will be talk about monopolies.
the tyranny Of capital and all that sort of
thing; but hard business sense will
eventually prevail. and then the Florida
phosphate industry will be upon solid and
paying basis.