New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1917-08-31
Higher Prices
For Fertilizer
Are Predicted
Chemical Company Says
Readjustment Is Necessary
Larger Profits

Few branches of commercial activity
have been so disorganized by condi-
tions attending the war as the fer
tilizer industry. Normally the world
depends for its supplies Of potash
mainly upon imports of the salts from
Germany, but that source has been
completely cut off since the outbreak
of hostilities in Europe. Meanwhile
the demand for potash in this country
has increased, with the result that
prices have risen 100 per cent or more.
At the same time, nitrate of soda and
sulphuric acid command prices rang
ing from 100 to 300 per cent above nor
nal values.
These extraordinary conditions find re-
Election in the report Of the American Ag-
ricultural Chemical Company, issued
yesterday. In his remarks to stockholders
Peter B. Bradley, president of the COM
psny, says that the Reorganization has
reached point where, despite the high
levels now prevailing. radical upward
resdjustment Of prices is required to
meet increasing costs OF production.
Moreover, he states, it will be neces-
sary to make many changes in the COM
position Of mixed fertilizers, especially
as to their potash content, owing 70
the limited supply.
The market for raw material has
been extremely unstable, according to
Mr.. Bradley, and it has been difficult
and even hazardous to name prices on
manufactured products for future de-
livery.
Demand Large
"The last year" he says, has
brought no relief to these exceptional
conditions, but the enormous demand
for food crops and cotton, brought
about by the exigencies of war, has
greatly stimulated the demand for fer
tilizers, so that there was no difficulty
in selling all the manufactured fertiliz-
ers which were available last spring,
though still further rise in prices of
raw materials, freight, insurance, etc.,
found the company's selling prices tow
ard the end Of the season out of line
with the cost of production.
consequently, while the company's
tonnage for the year was y per cent
greater than that of 1916, the balance
of net profits (after deducting bonus
Of s2l0,26350 paid to employees during
the year. was sl09,534.09 less than in
1915. The profits of the last year, how
ever, resulted more largely from the
sales of manufactured fertilizers and
other regular commodities of the COM
psny than was the case in 1916, when
considerable profits were derived from
sales of products not ordinarily sold by
the company.
"The company's phosphate mines
have not been operated full capacity
during the last three years, owing to
elimination of export shipments. With
return Of peace, however, an eXtraor-
binary demand for phosphates from the
European countries seems assured. Pot
ash is being produced in very limited
quantities in this country from the pot
ash brines of the West. from kelp wood,
alunite, feldspar and other materials,
but these sources do not at present
promise an adequate normal supply of
this material. The company has not as
yet explored it's potash fields in Spain,
owing to the difficulties of doing this
kind of work during the war. Some ex-
ploration work which has been done on
nearby properties is considered very
encouraging.
Prospects for the current fiscal year
are most encouraging, and We expect
that sales will be limited only by ca
pacity of production"
Earned SILL a Share
Manufacturing profits for the year
ended June 80 were sS,459 1896, against
T,947,506 the previous year. Other
income swelled the total to s8,709,215.
The surplus, after interest charges and
preferred dividend payments, was 49,
S9l ,2S8, equal to s2l.11 a share earned
on S1S,430, 900 common stock, compared
with S2050 share earned in the 1915
fiscal year.
The company's balance sheet showed
an increase in accounts receivable from
Sl3,l38,0sl to Sl7,244,956, and in notes
receivable from sS,079,630 to s8,2l1 OILS.
Inventories jumped from ss,989,S31 in
1916 to s9,246,434 last year. On the
liability side accounts payable in
creased from sl.279,4S6 TO s2,045,44
and notes payable from s106,540 to 49,
$3.50.