Catoctin clarion. [volume] (Mechanicstown, Md.) 1871-1940, 1921-04-14
j. S. 0BJECTSTO
fertilizer COST
Department OF Agriculture De-
cIares Prices Are High.
CITES COST OF MATERIALS

Manufacturers Are Warned That They
Must Recognize the Downward
Trend Of Priees-DeeIares Rates
Fixed for Entire Spring Trade Of
1921 Are Not Justifed-subJeet Is
Of Vital Interest T. Farmers Of
Country.
Notwithstanding the fact that some
Of the raw materials used in HE manu-
facture of fertilizer were bought at
prices higher than those now prevail
ing, the Department Of Agriculture.
In q statement to the manufacturers
setting forth Its stand on the fertilizer
question, says that 1t feels that. in
view Of existing market conditions, the
prices Of mixed fertilizers quoted for
the spring trade are too high, and
warns the manufacturers that while
the Lever food control act does not
authorize the fixing of prices for fer
tilizers, those who exact an unjust or
unreasonable profit will be subject to
prosecution.
The statement continues that the
consuming public is vitally concerned
I'm this matter for the reason that the
maintenance of high prices for ferti"
lizers, at a time when the price OF farm
products have greatly declined, may
result in a curtailment Of the use OF
fertilizers and reduction in acreage
and in yield per acre of crops planted.
II the prices the manufacturers are
now quoting, which are based upon
the unit costs of September rs, 1t con-
tinues, prevail during the entire sea-
son, 1t will be necessary for the In
dividual farmer who uses fertilizers
to exercise unusual care In shaping
his operations so as to avoid undue
risk of financial loss in his effort to
maintain normal production Of essen
tial crops.
Ask for Information.
I'm executing Its duties under the
Lever food control law and the Presi-
dents proclamation regarding fertiliz-
ers," says~the statement, "a letter was
addressed, on September 20. to all fer
tilizer manufacturers under license re-
Questing them to submit information
regarding their prices for mixed fer
tilizers for the spring season OF 1871.
This was shortly after the prices OF
raw fertilizer materials had begun to
decline. At that time the estimated
average purchase price Of ammonia
was around IS per unit OF twenty.
pounds. which was dollar a unit
less than for the fall Of 1920; acid
phosphate 81 a unit, which was the
same as for the fall; and potash $2.2o
per unit, which was 30 cents unit
below the fall price. The prices OF
raw materials, together with manu-
featuring costs, allowances for shrink
age and for profits, form the basis
upon which the fertilizer manufac-
turers established selling prices.
"The prices quoted by the larger
manufacturers for the spring OF 1871,
according to statements submitted Dy
them, were based upon a unit cost
of ammonia Of $5.25, phosphoric acid
so cents and potash $3.50. When these
prices were received early In Octo-
ber. a communication was sent to some
of the principal manufacturers which
said:
"'With the break in general COM
modify prices there has been recent
break in the prices Of many Of tho
fertilizer materials. This price ADJUST
ment has not yet been accomplished.
The indications are now that we are
on a continually falling market with
certain of the materials. Therefore
the department is strongly Of the opin-
ion that prices fixed for the entire
spring trade to July 1, 1921, on the
basis Of present values, are not 1usti-
fed. 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
these materials. and they should be
still further lowered later II condi-
tions In the fertilizer material mar
ket justify
Downward Trend Of Prices.
"The department has repeatedly
urged the fertilizer trade In determin-
ing their prices for the spring season
of 1921, to recognize to the fullest
extent the downward trend Of prices
of raw materials and to give their
customers, the farmers Of the United
States, every possible price concession.
Their attention has ben called to their
insistence during the war years up
on the application Of the replacement
principle in determining their price
quotations during the period of rising
prices and to their abandonment OF
this theory under changed conditions
of a falling market.
"The larger manufacturers allege
that. in order to provide their enor-
nous tonnage, it Is necessary for them
to contract for considerable part OF
their raw materials several months
before their prices are set. At this
particular time they claim to have pur-
chased or contracted for large part
of the materials for the spring trade
OF 1921 before the beginning of the
break in prices Of fertilizer materials.
The smaller manufacturers, of whom
there are around 750. make no such
claims but, on the contrary, many Of
them have stated that they were un-
able TO quote prices because they had