474 



The Nitrate of Soda Deposits. [nov., 



a period from ist April, 1901, to 31st March, 1906, and this has 

 since been renewed for a further three years. 



According to Dr. Krische,* the Syndicate does not aim 

 primarily at raising the price of the product, nor does it pre- 

 scribe any definite price to wholesale or retail dealers ; it is rather 

 a combination of nitrate producers, who agree to limit themselves 

 to a fixed annual quantity for the purpose of avoiding over-pro- 

 duction. A committee ascertains the full producing capabilities 

 of each factory, and the whole of the factories agree to keep 

 their production at an agreed percentage below their maximum 

 output. In carrying out their business, and especially in fixing 

 prices, each of the separate factories enjoys practical freedom, 

 and they compete with one another for business without 

 restriction. 



In 1904-5 sixty-two firms were included in the Syndicate, 

 the majority of them being English, though three, including 

 two of the largest, were German. The share capital is nearly 

 twenty millions sterling. 



The new agreement made in April last was based on an 

 estimated producing capacity of 2,750,000 tons for all the 

 manufacturing plants, each of which agrees to submit to a 

 pro rata reduction in its producing capacity to conform to 

 the consumption of the previous year. The production of the 

 current year is fixed at about 1,960,000 tons, as compared with 

 i)755>ooo tons in 1905-6. In this connection, the Economist 

 (Oct. 20th, 1906) observes that "there is some reason to think 

 that there will not be a sufficient expansion in the productive 

 power of Chili to enable full advantage to be taken of this 

 increase. Difficulties in connection with the supply of labour 

 appear to constitute a formidable obstacle to the development 

 of the industry, and it is instructive to note that of the authorized 

 quota of 39,000,000 quintals (1,755,000 tons) for 1905-6 only 

 36,250.000 quintals were shipped." 



During the past ten years there has been an increase of 

 about 50 per cent, in the production and consumption of nitrate 

 of soda. According to the estimates published by Messrs. 

 Henry Bath & Son, the consumption was 1,066,220 tons in 1896, 

 i>338,890 tons in 1900, and 1,543,120 tons in 1905. During the 



* Fiihlings Land, Zeit, 15th Aug. 1 906. 



