98 The N.Z. Journal of Science and Technology. [Mar. 
market price to retailers or large purchasers, and in doing so I have estimated 
on a profit of 10 per cent, on the capital. This kind of business is a very 
precarious one, and I consider that 10 per cent, is a fair measure of the 
security, or rather insecurity, involved. Nevertheless it is quite possible 
that many firms would be satisfied with less for the sake of some collateral 
advantage derived from combining this business with an existing business 
for some ulterior reason, such as the possibility of using part of the output 
for making cyanamide, ammonia, ammonium nitrate, or a dozen other 
compounds. The 10 per cent, profit is equivalent to £1 4s. per ton of 
carbide, which brings the selling-price up to £18 8s. 9d. per ton. This 
does not compare favourably with a selling-price of £16 to £17 per ton 
before the war, corresponding to a declared value of £14 to £15 per ton. 
There is, of course, a possible saving, as already mentioned, of £4 13s. 4d.’ 
per ton, which would reduce the price to £13 15s. 5d. per ton, but it is 
most unlikely that all the advantages will be found concentrated in one 
spot, and in consequence the probable saving would not exceed one-half 
the possible amount. If we assume a saving of £2 per ton, the selling- 
price is reduced to £16 8s. 9d. per ton, which is not sufficiently below the 
import price to justify the enterprise. There has further to be taken into 
view a probable reduction in price after the war, due to the necessity of 
finding a market for the huge chemical-factories established for war pur¬ 
poses, and the general rule that the price for a local commodity has to be 
much lower than that of an imported article in order to compete, as the 
latter often forms part of a large order, which enables the importer to handle 
it economically. 
The next step is to try the effect of a larger production upon the price— 
though anything larger than 1,000 tons per annum is hardly justifiable 
except for shipment, in which case the saving upon empty returns could 
not very well be reckoned on. However, it seemed to be worth attempting, 
and in Table 5 is set out corresponding figures for an output of 1,500 tons 
per annum. This is calculated on the same basis as the 1,000-ton pro¬ 
duction except that an allowance has been made for increased labour, and 
there is no necessity to discuss the several items. The cost of production 
is estimated at £16 0s. 4d. per ton, and the selling-price at £17 Is. 8d. per 
ton after allowing 10 per cent, profit, with a possible saving up to £4 13s. 4d. 
per ton ; and, assuming a probable saving of £2 per ton as before, we obtain 
a selling-price of £15 Is. 8d. per ton, which compares favourably with the 
output price before the war. But whether the margin is sufficient is a 
matter for the enterprising manufacturer and business man. The main 
object of this paper is to present the facts and figures, some of which are 
not well known, in such a way as to enable them to be adjusted by those 
in a position to make use of them. 
It is instructive to compare the estimate submitted with the cost of 
producing carbide on a large scale in a European factory where cheap 
water-power is available, as given by Mr. Bingham. The location is not 
specified, but it is obvious that it is adjacent to a source of water-power 
which can be cheaply developed, and that it is quite remote from an 
industrial centre, judging by the cost of coke and lime, which are much 
higher than the ruling prices in Great Britain. All the items are lower 
than those in Tables 4 and 5, due to larger output, lower labour cost, and 
proximity to the industrial centres. The item for management and general 
is higher, due to the higher cost of carrying on an export business. 
