The Birmingham age-herald., 1923-03-04
COOPE ERAT|VE PLAN
 IF BUYING GIVEN . BOARD'S APPROVAL.
Federal Trade Commission : Tells Senate Supply Is Be- ing Concentrated in the
 Hands of Few

\ AN1 otNs o' AA4 crcasing control of the mixed fer tilizer business of the United States by few large companies, with the retail price fixed through virtually uniform contracts placing retailers Tn the position of agencies, was re- ported to the Senate today by the federal trade commission.
 The report, which was submitted in compliance with resolution by Senator Norris, republican, Ne braska, also said control of three essential materials entering into the manufacture of commercial fertili- gers was highly concentrated-ni- trate of soda by Chilean interests, potash by German and French in- terests and sulphate of ammonia by the American Coal Products com pany.
 Praises Cooperation.
 The ommssion described the CO., operative buying of fertilizer as the most important factor in lowering the price, with the bulk of sales in the New England and middle west ern sections being made through farmers purchasing organizations. The larger companies have been forced to recognize cooperative buying, the report declared, while some have inaugurated direct selling to farm organizations despite oppo- sition from dealers whose business has decreased as a result. The pres ident of one of the largest fertilizer companies was quoted estimating that in 1921 cooperative buying in middle western sections saved farm SD ono 000 and iSS c ; added that the scheme must now be regarded IS permanent factor" in the fertilizer industry.
 Although census bureau figures for 1921 showed 5SS establishments engaged in the manufacture of fer stlizer in the United States, the re- Ilort declared, the American Agricul- taral Chemical company dominates the industry in the north and the Virginia Carolina Chemical company In the south. Their combined output was placed at approximately third of the nations production, and the Commission added that the Agricul- tnral Chemical company F. S. Roys ter Guano company, Armour Ferttl- izer works, Swift & Co.,, and the Baugh companies and their subsid Aries produced and sold about 65 per Gent of the fertilizer used in the United States in 1921, as compared Niln JS per cent Tn lS1b.
 Huge Group.
 The large companies, the report continued. dispose of the bulk of their product through retailers by means of the consignment form of contract. The seven companies in 1921 produced and sold 33733o4 of fhe 5,ooo,ooo tons of mixed fertilizer manufactured in that year, and omit ting the Swift business. which the Commission said appeared to be only n division of Swift & Co.,, packers, ther combined capitalization was 1nore than s2Oo,oo0, 900, with 1s7 sub Eidiaries under their control.
 The report emphasized that the tenant farmer of the south, where more fertilizer is used than in any pther section and the majority of farms are operated by tenants with Tenancy increasing, needs legislation to extend his credit facilities for the purchase of fertilizers.
 . The commission went exhaustively into the credit situation as an im- ipprtant factor in the industry during the period it investigated.
 ,i,The collapse In the price of farm ftoducts in the fall of 1920 made 1t necessary for the fertilizer manufacA turers to carry over many of theif credit customers until the next year, and this. with general financial con- dftions, curtailed the usual exten- sion of credit facilities to the fertili- ger users in both 1921 and 1922. Tn l922 it is estimated that GO per cent of the business done in the south was on a cash basis as compared With less than 25 per cent under normal conditions. The farmer, being upable to buy on a credit basis as usual, was forced to do without fer t5iizers, consuming only 5,25o,ooo tons th 1921, as compared with about T500,000 in 1920.
 Want Cash Business.
 ,iiThe commissions report went into detail on price competition and credit conditions. revealing that 1920 was t1le banner year for the fertilizer in- dpstry but that the eagerness of Manufacturers for cash business in tie two subsequent years was an inn tiortant factor in forcing prices downward. At the opening of the Edason of 1921. it said. the manufac- turers with large quantities of raw materials on hand submitted indivi- dual prices lists to the department of agriculture as required by exist ins time legislation. These prices in the opinion of the govern trent were excessive and a reduction Mas suggested. The companies re- Msed to heed this suggestion and in NIarch 1921 the legislation was re- p&aled and the high price lists re- rnained in effect.
 ii,The purchasing power of the farmer however, had been reduced by, a little less than one half because of reduction in the price of farm Urpducts, and sales of fertilizer did not meet the manufacturers oxpecta- t}Pns so, to move their products. ltttce reductions were effected through the spring and fall of 1921. Qpening price lists of the large com panies for the spring season of 1922 bsiowed that the manufacturers had tfverted to their 1921 base prices. bdt. as in 1921, with no material t36nges in market conditions. they Were again forced to reduce their list iiiices to move their product. A 1Aiger price cut, the report added, was necessary in 1922 than in 1921. rnduction ill many cases being as High as 33 3 per cent and even gfeater for cash business.
 ll'rHWARTTNC