NITRATES INDUSTRY.

New Zealand Herald, Volume LXVII, Issue 20598, 24 June 1930, Page 5

NITRATES INDUSTRY.

PRODUCTION IN CHILE, PROPOSED BIG COMPANY. For the last 10 years tho Chilean nitrato industry has been unhappily situated because of competition from synthetic fertilisers. Stocks of the Chilean producers have outweighed production and generally supplies of world nitrates have been excessive. Negotiations have been in progress with a view to rationalising the whole of the industry. The proposal is that the new company would absorb all the producing organisations in every country and it would bo of Chilean nationality. The capital named is 3,000,000,000 pesos, or about £75,000,000, and the Chilean Government is to be given shares to the amount of half the capital. In exchange the Government would hand over to the company all the undeveloped nitrato grounds in the country, which are estimated at about 60,000,000 tons capacity. Further, the Government would undertake to withdraw the export duty on all nitrate shipped from Chile by tho new company. Tho Financial Times states that it is intended to allot tho remaining half of the capital to existing producers in exchange for their properties. The proposals include a large debenture issue by the company, the proceeds of which would be applied partly to make certain payments to the Chilean Government in tho next three years to cover the loss in the export duty. Debentures would also bo issued in exchange for tho existing prior charges of all the nitrate companies. Should tho project be established it is considered that it would bo possible to reduce tho selling price of nitrate next year by £1 a ton. It is calculated that profits would bo sufficient to provide for amortisation and interest on the debentures and 10 per cent, on the share capital held by the various producers. Tho Chilean Government would not participate in dividends on its proportion of capital for tho next three years. NEW SOUTH WALES WHEAT CROP AVERAGE OF 8.7 BUSHELS. The final returns of tho New South Wales wheat harvest for the season 1929-30 havo been completed. The figures wero compiled from returns made after the crops had been harvested and furnished by each of tho 15,733 wheatgrowers of the State. The area sown for grain was 3,902,000 acres, including 463,000 acres which failed entirely, and the grain harvested amounted to 11,316,000 bags, equivalent to 33,948,000 bushels, or an average of 8.7 bushels per aero. ( The area sown for hay was 375,100 acres, including 25,200 acres which failed, and the production of hay was 305,710 tons, or an average of 0.81 tons per acre. The area fed-off profitably—that is, with a green food value of 15s or more per acre—was 57,700 acres. The area fedoff with a green food value of less than 15s per acre has been included with the area which failed entirely. The total area sown with wheat was 4,335,000 acres. SYDNEY CIVIC FINANCES. NEW CITY COUNCIL'S TASK.

The Sydney civic authorities are short of money. It is believed that the new City Council, says the Sydney correspondent of the Melbourne Argus, will have to face a cold and critical world . without a penny in the treasury. Mention of the matter in business circles evokes only remarks indicative of callous indifference to any worries that may be resultant. The financial stress has arisen from what Pitt Street calls " absolute greed " in making "assessments. Properties had fallen in values, yet they were assessed at much higher .levels. There was only one thing to do, and that was to endeavour to obtain redress. Prompt action was necessary, and it was taken. Owners appealed in thousands, and these appeals have choked tho tribunal which has to coosider them. Rates cannot be paid until it is known definitely what the amounts are, and so the whole revenuecollecting machine is at a standstill. The Civic Commissioners say they regret the situation, but they are helpless., All that they can do is to issue a " hurry up " order to the city assessor's department to dispose of appeals as early as' possible, thus clearing tho way for the new City Council., The nature of the impasse may be realised when it is mentioned that the commissioners have. had to rescind the resolution carried by them in the first week in May, naming and levying rates for tho year. The council must pass it. BROKEN HILL MINES. FALL IN METAL PRICES. Unless London prices of lead and spelter improve quickly, or there is a considerable reduction in working costs, the Broken Hill Proprietary, the Block 14, and the British mines at the Barrier will be closed shortly, says an Australian newspaper. About 1300 men are employed in the three mines. The Junction North mine has been closed for some time. Ore reserves in these mines are of less than the average value for Broken Hill, and a substantial reduction in working cost 3 would be necessary to'allow work to continue at a profit. The North, South, Zinc Corporation, and Sulphido Corporation mines will remain open, because they can still yield a profit, but their managements, too, would welcome a decrease in costs to compensate in some measure for the fall in metal prices.