Evening star. [volume] (Washington, D.C.) 1854-1972, 1940-08-26
Virginia-CaroIina
Chemical Reveals
Larger Profit
S6l5,45e Net Compares
With S513,798 for
Preceding Year
By the Associated Press.

BY the Associated Press
RICHMOND, Va, Aug. 26.-The
Virginia Carolina Chemical Corp,
which operates plants in Is States,
reported today a consolidated net in
come for the year ended June 80 of
s615, 459.67, compared with 1913, 1893 %
the previous year.
The corporation said total taxes,
including income and Social security
taxes. were approximately $464, 900,
an amount equal to SIT on each
share Of outstanding preferred stock.
Selling, administrative and general
expenses were up about per cent,
but the ratio of these expenses to
sales was lower than in 1889, it
said, Net sales of the corporation
and wholly owned subsidiaries
totaled S19.253, 27694. compared with
1938-9s $16,803 ,36271.
Consumption Climbs.
The report on the past years
operations, mailed to stockholders
by Secretary P. Darlington Smith,
said that consumption of fertilizers
in the United States was estimated
to have increased about 3 per cent
over the previous fiscal year, but
declared competition generally was
'very keen, and in some important
areas it was so severe that obtain
able prices were very unsatisfactory"
1T is too early to venture eStl-
mates concerning fertilizer opera
tons for the current fiscal year."
the report continued SURPRISES of
agricultural products, particularly
cotton and tobacco, the major crops
grown in the area in which the
greater part of our business is done,
continue to accumulate While
various crop production controls and
the loss of export markets for the
major agricultural products may
lead to further reduction in acreage
planted to such crops, these adverse
effects on tonnage are being meas
urably Offset by both the heavier
applications of fertilizers to the re-
duced acreage and the broadening
use of fertilizers under other crops"
The farmers dollar, the corpora
ton reported. buys as much fer
tilizer today as it did 80 years ago.
and according to recent surveys by
the National Fertilizer Association,
the average value of crop increase
for each dollar spent for fertilizers
in 10 Southern States was S401. and
for the United States as a whole,
$3.50.
Probe Costs Cited.
"In contrast with the excellent
returns to the farmer obtained in
the purchase and use of fertilizers
under his crops" continued the
report, ''the earnings record of the
fertilizer industry is a most unfa-
vorable one. In the 10-year period
from 1923 through 1887, the fer
tilizer companies which filed Fed
eral income tax returns showed ag-
gregate net profits, after deducting
losses, amounting to only 126 per
cent of sales. or profit of only
about ia cents on each dollar re-
ceived from the sale of fertilizers.
Notwithstanding this condition
In the industry, the Federal Gov
eminent, through the Antitrust
Division of the Department of JUS
tice, launched an investigation of
the fertilizer industry in February,
1899 This investigation continues
to drag on, with Federal grand jury
Investigations first in New York
City and currently in Winston Sa-
lem, N. C. BY order of court, books,
records and files of correspondence
of your corporation for the last 10
years have been examined by the
agents of the Federal Bureau Of
Investigation and by attorneys of
the Department of Justice. Your
management, though convinced
that your corporation has not vio-
lated any of the antitrust laws, has
been under the necessity of devoting
q great deal of time and mourning
large expenses in connection with
the investigation"