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AGRICULTURAL CHEMICALS
Sales of potash were slightly higher than in 1970, due entirely to higher selling
prices. These in turn resulted from the restrictions on production and price im-
posed on Canadian potash producers by the provincial government of Saskatche-
wan in 1970. These restrictions held production at the Allan mine to about 50%
of capacity, a level which even at present prices does not yield a satisfactory return
on investment. However, there is no doubt that the intervention of the Saskatche-
wan government has had a beneficial effect on an industry plagued by massive
excess capacity.
Development and test marketing continued on COBEX, a new selective herbi-
cide developed and patented by the Company primarily for use on cotton and
soybeans. While COBEX is still in the early stages of development, its effective-
ness at low application rates and also its high degree of safety in use indicate
considerable promise for the future.
RESEARCH & EXPLORATION
A continuing supply of new products is vital for U.S. Borax's future prosperity.
The U.S. Borax Research Corporation, in addition to its activity on selective herbi-
cides, continued its investigation of new product opportunities for both the indus-
trial and consumer markets. Meanwhile, in an intensified exploration effort, USB
geologists carried out a wide-ranging program aimed at a variety of metallic and
non-metallic minerals.
THE ENVIRONMENT
During 1971 the Company continued to devote a great deal of time and substan-
tial expenditures to ensure that its plants comply with the increasingly strict
requirements of state and local pollution control authorities.
MANAGEMENT
Mr. Ray J. Coleman retired from his position as Vice President and General Coun-
sel after 41 years' association with the Company's legal affairs. Mr. Robert L.
Starkey was elected to replace him.

....

CARL L. RANDOLPH
President

NORMAN J. TRAVIS
Chairman

April 3, 1972