Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1923-06-09
TRUST IN SANTIAGO
CONTROLS SUPPLIES
OF CHILEAN IODINE
BY CLAUDE O. PIKE

| Especial Cable to The Atlanta Journal and
| Chicago Daily News-COpyright, 1928
SANTIAGO Chile, June 9.-One
of the unique monopolies of modern
times is the iodine trust" The
production of iodine originates in
Chile, but the manipulations of the
trust are to be found in Chile, the
United States, England and the
homes of the various companies
that operate in Chile's extensive
nitrate fields.
1t is claimed that practically all
the iodine used in the world comes
from Chile, the drug being a by
product in the elaboration of nitrate
of soda. 1t is understood that the
| principal nitrate producers have an
agreement to market iodine only
once in five years, the companies
combining themselves to certain
/ amounts. thereby limiting the supply
and maintaining fictitious prices.
| The companies in the combination
are said never to. exceed the quotas
worked out for them according to
the capacity of their plants.
Aside from the resentment against
! this method of creating artificial
prices for drug of such value to
! the welfare of the human race, there
is strong criticism of the practice
by industrial engineers, who claim
that it means an enormous waste
now Of iodine that later generations
will require.
Capital From Many Countries
There are about 1870 companies en-
|
Chile and it is estimated that about
$200,000,000 is invested. Half of the
production is by Chilean capital.
British companies are responsible for
81 per cent and the balance is dis
tributed between United States, Ger
man, Spanish, Peruvian and Jugo-
Slav companies. The North Ameri-
can companies operating in the
Chilean nitrate field are the DuPoS
Nitrate company and Grace & Co.
The nitrate industry is the chief
source of revenue for the Chilean
government. During the World war
the shipments were enormous, the
nitrate being used in the manufac-
ture of explosives for the allies. The
slump after the war hit the industry
hard and the revenue from it fell
so low that the government has
been in hard straits for ready cash.
With the world turning slowly to
disarmament, the nitrate companies
are giving their attention to de
veloping markets for their products
in the great agricultural centers of
the world.
Seek to Revive Whaling
Efforts are being made to revive
the whaling industry of the south
Pacific to the lucrative basis en-
joyed by Chilean fishermen before
the great war drove whaling vessels
to the safety of home ports or into
the coastWise trade, transporting
Chilean products needed by the war
ring nations.
In the last seven or eight years,
it is claimed, whaling has nearly dis
appeared from this part of the globe.
In the early months of the World
war the south Pacific was closely
watched by British and German
cruisers that made it dangerous for
even whalers to be afloat. Besides,
the big dividends earned in other
lines attracted tn eowners of whal-
ing vessels so that this oldest Of
shipping industries has declined to
unheard Of low productions.
Now with a slump in shipping In
this part of the world attention is
turning again to the possible profits
in whaling. Sperm oil has advanced
in price and fishermen report an
abundance of whales in the last few
years. Chilean interest has been in
tensified by the recent return of
whaling vessel with $4,000 gallons of
sperm oil which the market snapped
up at once at IS gallon The
owner Of the ship madeaprofitof
$21S,000 on the venture.
ChiIeans are organizing co-opera-
tive companies for the purpose of
establishing a whaling fleet of
both steam and sailing vessels, and
hope to restore the whaling indus
try to its pre-war proportions.