Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1920-12-14
UNCLE SAM WARNS
FERTILIZER MAKERS
ABOUT HIGH PRICES
Department of Agriculture
Issues Notice of Prosecu-
tons Unless 1921 Prices
Are Reduced :
The Atlanta Journal News Bureau
623 Riggs Building.
BY THEODORE TILLER

| By THEODORE TILLER
WASHINGTON, Dec. 12.-Insist-
ing that at this time the farmer is
entitled to the benefit of every price
concession, and protesting against
the proposed 1921 prices of fertiliz-
ers. the federal department of agri-
culture has made public a state
ment it is sending to all fertilizer
manufacturers.
This statement asserts that the
prices for 1921 as announced by the
larger fertilizer manufacturers are
too high and do not properly take
into account the lower prices Of raw
materials. Manufacturers are in eff
feet warned that they are subject to
prosecution for profteering if the
farmer is gouged by these manufac-
turers. Prices quoted, they say, will
discourage rather than encourage
production. and the average farmer
can ill afford to pay them.
1.-THE Lever food control act" says<
the department, docs not authorize
the fixing of prices Of fertilizers, but
manufacturers who exact an unjust
or unreasonable profit will be subject
to prosecution"
The department Of agriculture says
information has reached it that not
only Is the cost of raw materials
lower but also that the cost Of manu-
featuring fertilizer is decreasing.
1t is revealed that more than
month ago the department sent a
Jo@k It
protesting against the proposed 1921
price scale. Yet the statement today
indicates there has been as yet no
revision of the scale, so the depart
ment now is sending out a compre-
hensive statement of it's policy and a
review of the entire fertilizer stu
alton.
Subject to Prosecution
After warning that makers Of I'M
reasonable profits are subject to
prosecution, the virtual ultimatum
to the manufacturers continues:
notwithstanding the fact that
some Of the raw materials used in
the manufacture of fertilizer were
purchased at prices higher than those
now prevailing, the department feels
that, in view of existing market con-
ditions, the prices of mixed fertii-
tzers quoted by manufacturers for the
spring trade Of 1921 are too high
The consuming public is vitality con-
cerned in this matter for the reason
that the maintenance of high prices
| for fertilizers, at time when the
prices of farm products have greatly
declined, may result in a curtaii-
ment of the use-of fertilizers and
reduction in acreage and in yleld
per acre of crops planted. The OPP
nortunity is presented for greater
range in fertilizer prices Tor the
spring of 1921 than is usual under
normal conditions
If the prices the manufacturers
are now putting forth, which are
based upon the unit costs OF sep
TENDER rs, prevail during the entire
season, it will be necessary Tor the
individual farmer who uses fertll1z-
ers to exercise unusual care In snap
ing his operations so as to AVOID
undue risk of financial loss in his
effort to maintain normal produc-
ton of essential crops.
| In its analysis of it's fertilizer SIT
uation, the department observers, IN
a nut shell, that prices of raw ma
terials entering fertilizer manufact-
uring, while not entirely stabilized,
| have come down and the manufac-
turer should take this into account.
That the department has insisted
that this downward trend of prices
be recognized in making up the 1921
- ut .Ind
That the farmer should have ev-
| cry price reduction possible at this
| time That although the department
complains in October about the price
scale proposed for 1921, there has
been no later. action taking into &C
count reduced costs of production.
Letter Addressed +
In part, the communication OF Hhe
department to the fertilizer manu-
facturerS says:
"In executing it's duties under the
Lever food control law and the presi-
dents proclamation regarding fertil-
izers, a letter was addressed to all
fertilizer manufacturers under Ii
censes requesting them to submit in
formation regarding their prices for
mixed fertilizers for the spring sea-
son of 1921"
This was shortly after the prices
of raw fertilizer materials had begun
to decline At that time, the esti-
mated average purchase price of
ammonia was around $500 per unit
of 20 pounds which was dollar a
unit less than for the fall of 1920;
acid phosphate 81 unit, which was
the same as for the fall; and potash
$2.25 per unit which was SO cents
a unit below the fall price.
The prices of raw materials, to-
gether with manufacturing costs, al
lowances for shrinkage, and for
profits, form the basis upon which
the fertilizer manufacturers estab-
lish selling prices.
The prices quoted by the larger
manufacturers for the spring of 1921,
according to statements submitted by
him, were based upon a unit cost,
Of ammonia of $525. pdho2ssphoric acid
When these prices were received
early in October, the following COM
munication was sent to some of the
principal manufacturers:
With the break in general COM
modify prices there has coca q. re.
cent break in the prices of many OF
the fertilizer materials. This price
adjustment has not yet been accom-
plished.
"The indications now are that we
are on a continually falling market
with certain of the materials. There
fore the department is strongly of
the opinion that prices fixed for the
entire spring trade to July /, 1921,
on the basis Of present values are
not justified
Lower Prices Urged
Your prices for spring delivery
should be lowered now to the fullest
extent having in mind the reductions,
which recently have taken place in
many Of the fertilizer materials and
also, the probable future prices of
-hese materials, and they should be
still further lowered later If condi-
ions, in the fertilizer material mar
Set justify.
"In your letter, you propose
price of $5.25 per unit for ammonia.
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