The morning news. [volume] (Savannah, Ga.) 1887-1900, 1892-08-16
NOTMAKING MUCH MONEY
PHOSPHATE ROCK MINERS OPER-
ATING AT SMALL PROFIT.

Low Prices are Due 20 Overproduc-
tion--f Combination of Florida and
Carolina Companies Gould be Eff
fected a Different State OF Affairs
Gould be Brought About and Main
tanned.
The phosphate rock business in Florida
continues in an unsatisfactory condition
and with no prospect of speedy better
ment in prices
The intense competition between the
Carolina and the Florida rock resulting
from overproduction is the cause OF the ex-
isting depressed state Of the mining indus
try. Unless combination OF some kind Is
effected and production Voluntarily de-
creased by all interested. 1t is not believed
that prices will reach position for several
years where there will be the profit in
mining that there should be. While the
consumption is increasing the demand has
rot kept pace with the increase in the sup
ply OF late. Whether 1t Is possible for the
mining companies to come together and
make arrangements that will be- sat-
isfactory to all and TO maintain
combination long enough to secure the
benefits attached to 1t, Is unknown. The
chief obstacle Is the fear that fairly re-
munerative prices would lead to an influx of
now companies and that in the end the con-
dition Of the industry would be worse than
at present.
The mining Of this rock in Florida began
in June, 1890 The first year companies
were organizing and getting their plants
ready for operation aud the results were
not as good as the second year, or from
June, 1891, TO June, 1892. In these twelve
months the industry doomed and predictions
as to tue future were very bright
Last spring, in particular, the out
look, specifically considered, was
extremely roseate. The demand
was temporarily in excess Of the supply for
May aud June shipments and the price
went up to 50 80 per ton for the high grade.
1t came down almost as quickly and the
price is now 50 50, or about so
cents per ton above the lowest
point reached for rock of this character.
Some companies, whose mines are we'll
situated and which have extensive surface
deposits, can make money at this price, but
others, which labor under disedv antages,
either run without profit or at q loss. Some
have closed down and others have limited
their output to hardly half of their capacity.
In all there are now about twenty
companies actually mining in Florida
Many of these are small concerns.
Inc total shipments Oh FlOTlQd TUCK lTOtn
all ports since the first company began
operations amount to about 10000 tons.
| or this amount but small quantity, a.,
900 tons, has been exported from Savan-
nah. The absence of exports Of late from
! this port is attributed to the fact that saw
eral mines reached by the Savannah,
| Florida and Western and branches are
| closed down, while the Others are shipping
| to Brunswick.
The freight rates to that port and the ter
minal charges there purport to be the same
| as Savannah has, but some inducement II
| is thought, must be offered to shippers.
| Tho total amount of rock sent to Bruins
wick, though, is comparatively little, that
! port having probably not received any
more than Savannah, If, indeed, as much of
the rock has found an outlet there as here.
Fernendina has received, and continues
| to receive, the greater part OF the rock for
export. 1t has keen rival in Tampa, and
as the Plant system has just completed a
| branch to Dunnellon, tapping the finest
| phosphate section Of the state, Tampa will
| doubtless succeed in diverting to itself much
| of the rock that now COOS to Fernandina.
| The quality Of the Florida rock has been
| up to the expectations that were formed
| when it was discovered, but the quantity Is
| evidently much less than was at first be-
leved. The DInnellJn and one or two other
companies have each as much phosphate
| property as nearly all the smaller concerns
| put together. They can run for many years
without trouble but the others must work
| out comparatively soon. 1t may be that
new aud extensive discoveries will be made
| in the wild parts Of the state. but the i'm
| preston prevails that the best territory is
| already being mined