The  sulphur  industry  of  Sicily  furnishes  a  notable  example  of  an
attempted  commercial  control  which  developed  into  a  governmental


454  POLITICAL  AND  COMMERCIAL  GEOLOGY

control  of  the  industry. The  recent  history  of  the  industry  falls  into
three  periods. The  first  extends  from  1875  to  1895  and  is  characterized
by  a  rapid  increase  in  production,  from  200,000  to  400,000  tons  a  year,
with  a  corresponding  decrease  in  selling  price  from  $25  a  ton  to  as  low  as
SI 2  a  ton. It  was  a  period  of  overproduction,  due  to  the  ease  with  which
shallow  mining  could  be  carried  on  and  to  the  abundant  supply  of  cheap
labor  available. These  conditions  resulted  in  the  development  of  a
great  number  of  small  mines,  whose  competition  reduced  prices. The
second  period,  from  1896  to  1906,  begins  with  the  formation  of  the  Anglo-
Sicilian  Sulphur  Co.,  financed  by  English  capital,  which  entered  into
a  five-year  agreement  with  the  principal  producers,  which  was  later
extended  for  an  additional  five  years. It  was  primarily  a  marketing
organization,  formed  by  the  union  of  Italian  and  English  interests  to
control  production,  stabilize  the  industry,  and  maintain  prices. It
eventually  controlled  from  75  to  85  per  cent,  of  the  industry. All  sul-
phur was  purchased  at  about  $16  per  ton  f.o.b. ship  and  the  selling  price
remained  practically  stable  during  the  ten-year  period,  at  an  average
of  $18  to  $19  per  ton. In  spite  of  efforts  to  restrict  production,  the
annual  output  reached  550,000  tons  during  most  of  this  period. At  the
same  time  the  higher  prices  maintained  for  sulphur  had  stimulated  the
use  of  pyrite  as  a  substitute. In  order  to  maintain  prices  under  these
conditions  the  excess  production  had  to  be  purchased  and  stored,  so  that
in  1906  a  stock  of  over  500,000  tons  of  sulphur  had  been  accumulated  in
Sicily. Toward  the  end  of  this  period  large-scale  production  began  in
the  United  States  (1904). In  1903  the  United  States  produced  less  than
10,000  tons  of  sulphur  and  was  Italy's  best  customer,  buying  over  170,000
tons  in  that  year. Within  three  years  the  United  States  was  producing
more  than  enough  to  supply  its  own  needs  and  was  accumulating  a  large
reserve  stock. 