Fertilizer Move

In U.S. corporate history few changes have been so abrupt, so disheartening as the performance of American Agricultural Chemical Corp. In 1920 American Agricultural was a market-leader earning $11.21 a share. In 1921 it lost $38.60 a share. Since then, prey to fluctuating fertilizer prices, it has sometimes shown small profits, usually reported losses. Last week, however, it girded itself for an attempt to come back.

Guiding American Agricultural for the past year has been President Horace Bowker, 52, previously executive vice president. He is the chemical-minded son of a chemical-minded father. Father Bowker was one of the earliest commercial makers of fertilizers, formed Bowker Fertilizer Co., now American Agricultural most prosperous subsidiary. Son Bowker went to Harvard, is unostentatious, but no farmer.

For the year ended June 30, American Agricultural reported earnings of $1,507,000 against $703,000 the preceding year and a loss of $1,924,000 two years before that. Cheerful as this was, directors gathered over a statistical chart, figured that in the due course of business it would take 160 years before the great $39,000,000 deficit could be washed away and dividends actually be paid on the common. Last week the mechanics of a reorganization scheme were started. American Agricultural Chemical Co. (of Connecticut), largely a holding company, will be dissolved, its assets transferred to the deficitless American Agricultural Chemical Co. (of Delaware), an operating company. Thus, capital no longer impaired, dividends can be paid as earned.

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