THE NITROGEN INDUSTRY

Evening Post, Volume CIX, Issue 121, 26 May 1925, Page 7

THE NITROGEN INDUSTRY

TO THE EDITOR.

Sir,—Those who predicted that Chile nitrates would be cheaper after the war than befoi-e are finding themselves sadly at_ variance with results. The present price of the article is fully 50 per cent, above the pre-war figure. The Chile Government has recently passed an Act providing that 75 per cent, of the employees must be Chileans. The Commercial Secretary to H.M. Legation, Santiago, writes: "The restriction in freodom of action in limiting the number of foreign employees to 25 per cent, is particularly vexatious, and still moro so are the obligations to pay 75 per cent, of amoluments to Chileans, plus 20 per cent, of the profits. . . . The demands of labour generally have been excessive" Page 65.

This means that on the average the Chilean labourer has lo be given higher remuneration that the- British or American clerical staffs, including engineers and managers. In 1919 the employees on the nitrate fields numbered 52,592, of whom 11,544 were Peruvians and 9511 were Bolivians. Over 9000 Peruvians and 8000 Bolivians have since been repatriated, and owing to the onerous conditions now imposed, including a deposit of 500 pesos each, few will return. It is calculated there is now a shortage of 12,000 labourers. Page 66. The following extracts from page 23 are interesting: "In regard to recent legislation the income tax law which affects profits will make the industry less attractive in future as a source of investment. . . Certain of the clauses of this law regarding proportion of salaries payable to Chileans and those regarding dismissals are serious from the cost and-disciplinary points of view. The laws passed without discussion in September, 1924, dealing with the improvement of labour conditions, will constitute a serious charge on the industry. The net result of recent legislation will be to increase the cost of production at a time when a decrease is becoming more than ever important." The export value of Chile nitrates for 1923 was £29,448,724 (page 92). It is more than ever evident that it is high time New Zealand should lose no more time in harnessing some of its unique water power in the western sounds for the production of this essential plant food so much in demand all the world over.—l am, etc.,

J. ORCHISTON, M.I.E.E. 23rd May.