White Island Products

Sun (Auckland), Volume I, Issue 188, 29 October 1927, Page 5

White Island Products

DO THEY FERTILISE? Government Report Says “No!” READERS of THE SUN may remember that two special articles published in April last gave an outline of the financial history of White Island, the “treasure island” of the Bay of Plenty. THE SUN was able to show that the enterprising manipulators of this isle had converted £lO6 into 120,000 fully-paid £1 shares.

JT was recently reported that “de

velopment will require the expenditure of considerable capital, which the directors consider the prospects seem to justify. Negotiations have been practically completed in England for the sale of 40,000 of the company’s unissued shares at par.” Mention was made of an option over a further 65,000 shares, also at par. This makes the fourth or fifth attempt at capitalising the volcano, and so far nobody seems to have benefited but the promoters. It is surprising that the English investors have not offered a premium for these shares, in view of the brilliant attractions of the company’s prospectus. The double reference to “par” values seems unnecessary modesty. Meanwhile, THE SUN has been supplied with a copy of the New Zealand “Journal of Agriculture,” dated September 20, 1927, and issued under the authority of the Minister of Agriculture. This contains a description of the inquiry into the merits of White Island “mineral deposit,” and an exposure of its remarkable absence' of effect upon crops. The inquiry was conducted by the Instructor in Agriculture and his assistant in Auckland, and it is fitting that since THE SUN was the only newspaper to relate the unique features of White Island finance it should also be the first to publish the authentic story of the department’s inquiries. A GLOWING PROSPECTUS Before quoting these, it will still further interest' the public if memory is refreshed by referring to the glowing claims of the prospectus in regard to this mineral deposit. “White Island has a vast store of products essential to the Dominion’s requirements and progress, which can be won, treated, and commercially marketed at a good margin of profit.” “White Island fertiliser is a natural product containing nearly 50 per cent, of elemental sulphur, a large percentage of soluble sulphates, free sulphuric acid, and a base of gypsum. The deposits of material on the island suitable for crushing and marketing as fertiliser are immense.” “The vendor company has proved the agricultural value of this fertiliser. The value of the fertiliser has become so apparent to farmers and others that a demand has arisen for the same with which the vendor company cannot without additional plant possibly cope. The fertiliser can be produced and supplied at considerably less than other fertilisers now on the market, and this at a margin of profit which should give a good dividend to shareholders.”

“These deposits, however, fade into insignificance when one begins to investigate the numerous deposits of high-grade sulphur ore, which run from 50 to 85 per cent, and 90 per cent, pure sulphur.” The irresistible attractions of these claims led to about 25,000 shares being subscribed by the public, and although the first year’s operations showed a debit of .£6,841 9s 4d, the directors are reported to state that “shareholders have no reason to doubt the future success of the company.”

THE GOVERNMENT STEPS IN After the appearance of the previous articles in THE SUN, doubts were expressed to its representatives as to the merits of this unique fertiliser, but accurate information was not then obtainable, although sufficient tests had already been made, and are those now referred to as published in September. Now, however, from the unimpeachable source of the Department of Agri-

culture, full details are afforded, under the unpromising heading of “mineral deposit.” The verdict of the Government specialists is quoted: “As there is no appreciable quantity of either phosphate, nitrogen, or potash contained in this substance, it could not be registered as a fertiliser under the Fertilisers Act. By reason of its sulphur and gypsum content, however, it may possess fertilising qualities.” The experts also state that there is a guano of comparatively low-grade quality on the island. THE CHEMICAL ANALYSIS The full analysis of the sample, which was described as “water free,” is as follows: Free sulphur 26.4 Gypsum 9.9 Silica 53.7 Nitrogen 02 Phosphoric acid .. .. A trace Potash A trace This appears to have struck the instructor in agriculture as a very unusual kind of fertiliser, judging by his comment given above, and THE SUN may be permitted to hope • that the sample analysed" was not entirely representative of the products of the company. The investigator goes on to refer to the amount of sulphur in the sample, and says “it lias been claimed that the sulphur content of superphosphate is partly responsible for its undisputed success; But this has never been definitely proved—in fact, application of pure sulphur to crops in New Zealand has never met with any noticeable success. TESTS BY THE DEPARTMENT The report continues that since this mixture of gypsum and sulphur, it was suggested, might prove useful to crops in one or more ways, it was therefore decided to test this White Island product. The experiments are described in some detail, having covered 13 areas each half a chain by eight chains, and the crops were cut and compared on January 8, 1927. The results are given in a table, and the report concludes with the statement: “It will be seen that superphosphate gave weight increases over both no manure and over White Island products, while the latter, when directly compared with no manure, caused a depression in yield. The trial will be carried a further stage during the season of 1927-28.” - THE HAPPY RESULT Put in the simplest language that THE SUN can find, the above result just means that the crops given no manure at all did better than those given White Island Fertiliser. The results of the succeeding experiments to be conducted by the Department will be followed with keen interest by THE SUN and its readers. THESE PRELIMINARIES The report mentioning the annual meeting was aptly headed “preliminary organisation.” It does not seem out of place for THE SUN to inquire how much longer this preliminary organisation is going to take. It has already extended over several years, through four flotations, and into four countries. So far, Australia and South Africa are the only English-speaking countries not touched by the organisation. Recently the directors “have drilled eight bores in Crater Flat, liquid sulphur having been found in six of them at depths varying from 49 feet to 295 feet, indicating that the deposits are extensive.” Interesting technical information supplied by the Department of Agriculture might be included in the next prospectus.