300 REPORT ON COOPERATION IN AMERICAN EXPORT TRADE.

with no control over production or price, American owners of phosphate
 mines are handing their product to the rest of the world at a
bare profit on the operation of mining, when, according to those
qualified to judge the relations between the old established price and
the increase of supply, the world would pay 100 per cent more for all
the United States now sells. A combination, it is thought, could
stabilize prices at a point where there would be a fair margin of profit
over the cost of production, including amortization in case of rock
owned and royalties where mines are leased. The quotation of one
producer against another and the resultant price cutting could be
prevented by such price cooperation among the member producers.
Other advantages named for an export combination are:
(1) Reduction of selling expenses by selling through one organization,

{2) Ability to obtain more favorable terms—all cash against documents
 instead of three-fourths as at present; payments in dollars
rather than pounds; American weighing analysis as the basis of
settlement instead of European.
(3) Conservation of high-grade phosphate rock which could be
accomplished by so grading the price that rock containing from 68
to 72 per cent of bone phosphate of lime will be as much in demand
as the 75 per cent or higher grades. The known deposits of pebble
rock containing 75 per cent or more are very small compared with the
lower grade deposits.

SECTION 7. PORTLAND CEMENT.
INTRODUCTION.

Portland cement is one of the commodities of peculiar interest in
foreign trade, because it furnishes bulk cargo. It is of special interest
to the United States in connection with the development of South
American business because bulk cargo southward must be available
if more favorable shipping rates on general cargo are to be obtained.
The Latin American countries are heavy importers of cement and
coal, and to these commodities the United States must look for the
major part of any southbound heavy low-grade ocean freight.
Many conditions favor the American Portland cement mills in such
business. The United States is the greatest producer in the world.
In 1912 its output was more than 82,000,000 barrels, as compared
with less than 40,000,000 barrels in Germany.! As long ago as 1907
the output of the United Kingdom was about 17,000,000? barrels.
Moreover, it is probable that the cost of production in the United
States is no higher than in Germany and Great Britain and may
“lus. Geological Survey: Mineral Resotirces of the United States, 1914, p. 227, and Stat. Jahrbuch f. d.
Deutsche Reich, 1914, p. 116.
2 Census of Production of the United Kingdom, 1907, p. 775.