1918.] The N.Z. Journal of Science and Technology. 97 
be produced at this figure from any source of power of the magnitude 
required. Nevertheless, if electricity were more generally distributed 
and used so as to enable production to be very much increased, or 
the manufacture of carbide combined with some other industry requir¬ 
ing a large amount of power, the quotation could be reduced to £2 10s. 
per horse-power year instead of £4 per horse-power year, a saving of 
£1 10s. per horse-power year, equivalent to £1 7s. 4d. per ton of packed 
carbide. 
Labour. —The next item on the estimate of Table 4 is labour. The 
number of men required is as stated in the work already referred to, but 
the wages are adapted to New Zealand conditions and fairly represent 
the prevailing rate of pay for the different classes of work under peace 
conditions. No saving can be expected on this item, as the tendency is 
always in the other direction. 
Renewal of Electrodes. —This estimate is based upon 4d. per pound. 
The price of carbon for electrodes varies from lfd. to 2d. per pound on the 
Continent of Europe, so that there is a possible saving on this item of, say, 
one-half, or the equivalent of 11s. 8d. per ton. 
Maintenance of Furnaces and Renewal of Plant. —The figure entered is 
deemed to be ample for the purpose, but I do not think that it would be 
prudent to reckon on any saving on this item. 
Packing. —The figure quoted by Mr. Bingham* is £1 10s. per ton, based 
upon Is. 6d. per drum containing 1 cwt. This figure cannot be approached 
under New Zealand conditions, and a figure of £2 10s. per ton is allowed. 
At the same time, there is a possibility of making a saving by using returns, 
which are not available to the exporter, and thereby reducing the cost by, 
say, £1 per ton. 
Management and General. —A sum of £1,500 per annum is allowed for * 
this item, and includes an allowance for sales or for commission if the 
carbide be sold to agents. There is a possibility that this item may be 
reduced if the industry is conducted in conjunction with some existing 
industry which already possesses an expert staff and a sales organiza¬ 
tion, the expense of which as well as the management would be shared. 
Possibly, if the manufacture were combined with a limestone-crushing 
and lime industry, or some other industry, the manufacturers would be 
disposed to reduce this by at least 10s. per ton. 
Depreciation. —An allowance of 8 per cent, on the whole capital if invested 
would be sufficient to redeem the capital in about ten years. This is, of 
course, a high rate of depreciation, but as two-thirds of the capital is sunk 
in machinery, some of which is of a rapidly depreciatory character—viz., 
furnaces and crushers-—it would not be prudent to reduce this item. 
Cost of Production.- —The cost of production, on the assumptions made, 
amounts to £17 4s. 9d. per ton of carbide per annum, with a possibility 
of a reduction of £4 13s. 4d. per ton if all the possible savings on the 
different items be realized, which, however, is improbable. Those interested 
can judge for themselves the probability and extent of possible savings, 
and if this paper has presented the facts in such a way as to enable those 
in a position to judge to make the right use of them its main object will 
have been achieved. 
Selling-price. —Having now determined the cost of production, inclusive 
of commission on sales, we have now to add on a profit in order to find the 
* The Manufacture of Carbide of Calcium, p. 115. 
7—Science. 
