The Washington herald., 1921-08-17
GOVERNMENT MAY
TAKE OVER WHOLE
BUSINESS, REPORT
Four Factors Figure in
Situation as 1t Now
Stands.
STOCKS ARE HEAVY
Piled Up On Coast, While
European Owners Hold
Big Amount.
STOCKS ARE HEAVY


,arties to the present situation IN
.hilcan nitrate. The consumers,
represented by the agriculturists
nd manufacturers of. the United
state, and Europe who use nitrate
u soda; the holders Of the present
,tocks in Europe, now known as
he pool, because OF their having
,omhined stocks and centred sales
,nder one direction; the Association
u Nitrate Producers In Chile, con-
rolling % per cent of the prodnc-
dons, and the Chilean government.
represented in the directory board
. tho association and interested
frectly in the welfare Of the in
lusrry through the revenue which
: derived from the export tax.
Up to- this time the pool has fol-
owed the policy of distributing its
took as best it could in small
Quantities. says Commercial Attache
EcQueen in Il report on the situa-
isns The pool has maintained that
he Cessation of demand was due to
.auses other than price. and that
20 greater quantities could be sold
~ prcsent even il drastic price re-
Iuctions were made. On the other
iCnd, the sentiment in Chile has
,eaned toward the belief that II
,rices were reduced materially 1t
would be possible to clear away
stocKs in another agricultural sea-
sou land pave the way for a re-
IuIIption Of manufacture.
Naturalization Proposed.
Negotiations have been under way
or Several months between the
government. the association. and
he pool and various proposals have
been made to relieve the situation.
resident Alessandri presented to
.onEress on May 10 a proposal that
egisfatiOn be enacted providing
practically for the naturalization
u the industry. His recommended
ions were that the state be given
he power 10 acquire all nitrate
iow on hand or that manufactured
n the future, the producers to be
saId THE actual cost OF production
u their output in gold bonds OF
he state paying per cent. totally
iTgortiZable. with the product OF
rales. The nitrate would then be
'old by the state in the different
world markets at prices adjusted
Q those Of its competitors. the
'rofifs to be shared equally be-
r"een the state and the producers
10 definite action was taken on
his project.
The stocks IN Europe held by the
,"Ol are said to amount a present
" something slightly in excess of
'0e.ee0 tons. with over 100000 tons
transit. In the United States
hcre is a supply for which no re-
mt figures are available in Chile.
1T which is said to be sufficient
or years ordinary consumption.
t the coast in Chile, ready for
'Hipment. there were in April about
10000 tons. with the prospect Of
100000 tons by September. The
lrtrate in Europe and the United
STAKES was bought from the asso-
'iadan at prices Averaging nearly
30 shippings per Spanish quintal
1914 pounds).
', Associations Plan.
This project of the association,
Iah TO have met with official ap-
sr9Sal. is embodied in proposal
nSde to the pool that the latter
.uER over to the association its Eu-
-Obean stock at Els per ton and
oefmit the association to conduct
is sale. accepting whatever loss
might be incurred thereby, receiv-
tnsI however. an indemnity Of is
IA. ,per Spanish quintal from the
Issbcfation. In addition, the pool
wd4ld be expected to purchase
rom the association an additional
Iuantity equal to it's present stock
Ittithe price of los per quintal
Il6hgside ship on the Chilean
cast: this concession in price to
PARTLY offset the loss on the bal
snce-in short, to average down
ths' cost of the combined stock.
" was not expected that the ad-
iGonal quantity of around 9o0.-
.93 tons would actually be shipped
atI once, but the interests Of the
EoTernment were considered by the
insertion Of a provision to the eff
'ett that whether shipped or not.
EXPORT duties would be paid at the
rate Of 10000 tons per. month be-
sipping with September. In re-
:uBn for this, the government was
-eauested to waive the collection
of the export tax at the rate for
gold. permitting payment at the
ate of IS I'D per quintaI in Brit
sR-hxchance without considering
The depreciation of sterling with
-espect to the intrinsic value of
mo gold peso.
Since the advancement of this
proposal on May - the 'negotia-
!ionsI have continued, with no def
nIte result.