Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1920-12-14
UNCLE SAM WARNS
FERTILIZER MAKERS
ABOUT HIGH PRICES
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The department feels that this is a
very generous price for materials
that you have already purchased. 1t
believes that it is too high price
for the market today, and too high
price for you to carry as fixed
price per unit for ammonia up to
July 1, 1921.
1.-THE department expects you to
lower this. price at the OUTSET, a,,
1.-THE price you argue for potash
$3.50 per unit, is believed to be much
above what is necessary for you TO
charge to secure your Is per cent
gross profit The department Will
expect you to revise and lower this
figure" .,,.o
1.-THE larger manufa cturers allege
that, in order to provide their enor-
nous tonnage, it is necessary t0r
them to contract for a conslderaple
part of their raw materials several
months before their prices are set.
At this particular time, they claim
to have purchased or contracted TOR
q large part of the materials Tor
the spring trade of 1921 before the
beginning of the break in prices OF
fertilizer materials: eoo+,,ror Of
The smaller manufac199rrer, % %
whom there are around 100, make
no such claim, but. on the contrary,
many of them have stated that tney
were unable to quote prices oeca;uS5 Sc
and did not know what they would
"As the figures submitted to the
department by larger manufacturers
themselves, show that the actual
potash already purchased, and the
probable cost of the additional ma
terial, they expected to purchase was
not above the average prices pre-
oh
ferced to, they. after conference with
tie department. decided to lower &C
cordingly the unit cost of potash
and of ammonia in determining the
prices of their mixed fertilizers. In
the meantime: however, the prices
decline, as forecasted in the de-
partments letter with the result
that on November Is. the estimated
average purchase price of Ammonia
decline of $40 a unit since Sep
TENDER rs. Since November IS,
there have been further substantial
reductions in the prices of raw ma
terials.
"In connection with the notations.
further important situation has
developed, namely. that the larger
manufacturers: in determining. the
prices of their mixed fertilizers,
have figured acid phosphate at
lower than for the fall of 1920.
The trade journals, on the other
hand, show that the price Of So per
cent Florida pebble phosphate rock
was quoted from $685. per ton in
June and $11.5O per ton in September
and that the basis has been changed
from f. o. b Tampa to f. o. b. mines,
making an additional difference of
about $1.20 per ton. They also show
that the quoted price of bulk acid
phosphate increased from $3.50 to
$4,000 per ton. The federal trade
tilizer industry indicates that the
large fertilizer manufacturers have
practical control of the phosphate
situation through the ownership of
acid phosphate plants and of mines
and factories and through the exis-
prices, with other than their own
mines.
1.-THE department has urged the
mine-owners, the larger fertilizer
manufacturers and the producers of
acid phosphate to make some con-
cession to the smaller manufactur-
ers, by lowering the price at which
they can purchase rock and acid
phosphate.
"They reply that on account of the
strike in the Florida pebble district
in 1919, and the car shortage, the
SloCh VI Ioch anu dClu phosphate are
SO low that they have difficulty in
obtaining sufficient quantities of
these materials for their own use.
Apparently, the greater part of the
rock that is mined above the con-
tract requirements of the larger
concerns is held for export, and do
nestle buyer without a long time
contract is compelled to pay $11 to
$12 a ton as against Sc a ton, which
is about the average for domestic
contract rock.
1.-THE principal acid phosphate
manufacturers stated that their price
to contract purchasers was material
~ lower than the quotations in the
trade journals, for non-contract or
cash purchases"
They stated that practically their
entire production was sold under
longtime contracts, that they had
nothing to sell outside of these con-
tracts and that the quotations in
the trade journals were based on re-
sale lots where money was needed, ,r
storage capacities had been exceeded
1t is evident, therefore, that the
needs OF the larger manufacturers are
provided for, whereas, the source of
supply of the small manufacturers
is seriously curtailed and the prices
which the smaller manufacturers
have to pay greatly in excess of con-
tract prices.
Within the past two weeks, how
ever, the acid phosphate price has
declined from $40 a ton to S17 a
ton, on the basis of Baltimore QUO
tat1ons and the price will probably
continue to decline as the stocks on
hand are, in reality, large
Information has reached the de-
partment that not only is the cost
of material falling but that the cost
OF manufacture is also decreasi sing.