15 



The term "percentage of difference" is simply 

 Concerning another way of expressing the difference existing 

 Percentage between the average valuation and the average 

 of selling price of the individual fertilizer, or other- 



Difference, wise expressed it is the percentage excess of the 

 average retail cash price per ton over the calculated 

 or commercial value of the nitrogen, potash and phosphoric 

 acid actual!}^ contained in a ton of the goods in question. 



To illustrate: If the comparative commercial value of the 

 nitrogen, potash and phosphoric acid in a ton of fertilizer is 

 $24.00 and the dealer's cash price per ton is $36.00, the dift'er- 

 ence is $12.00 or expressed in form of percentage it is 50. 



The percentage of difference does not represent the profit 

 which the manufacturer makes on the fertilizer as some have 

 assumed; it must include the manufacturer's profit or a part 

 of the same* but it also includes the cost of grinding, mixing, 

 bagging, transportation, agents commissions, etc. 



The following table shows the average comparative commer- 

 cial values, the average cash prices and the average percentages 

 of difference of the licensed complete fertilizers analyzed during 

 the seasons of 1908 and 1909 in Massachusetts. 



A comparison of the above figures shows that the average cost 

 of a ton of average complete commercial fertilizer was $1.60 

 less than for the season of 1908; on the other hand the average 

 comparative commercial value was $3.62 less per ton. The 

 above figures would indicate that the consumer of mixed fer- 

 tilizers has not received as high a value for his money during this 

 season as for the previous year. 



It must be remembered that the above figures represent 

 averages only, and include all grades of goods; for details those 

 interested are referred to the tables themselves. It was not 

 possible to determine the influence of tonnage in calculating 

 the averages; had it been possible the figures would, in all 

 probability, have been somewhat modified although not radically. 



_ *Mr. W. H. Bowker, in a pamphlet entitled "The Utilization of Home Resources of Fer- 

 tility," stated that the profit comes in "the difference between the retail price and whole- 

 sale cost of materials." 



