Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1910-12-13
The Potash Controversy.


tIrera are protesting against the ac-
ton of the German government in
placing an export duty on potash,
and the State Department at Wash
ington is backing them in their claims.
1t is a matter Of much Importance to
the farmers Of this country whether
or not they may be able to buy fer
tilizer at present rates or have the
price increased by the heavy tax the
German government proposes. Pot
ash is an essential clement of all COM
nlercial fertilizers and is found in
workable deposits only in Germany.
About 100000 tons Of actual potash are
annually produced and of this amount
the United States consumes about
one-fifth.
Up to July l, 1909, the production
Of potash for 20 years had been abso-
lutcly controlled, as to quantity and
price, by syndicate. regulated by
law, in which the German governmn-
participated as an owner Of the mines.
On that date. the syndicate was brok-
en- by internal discussions, and one
important producer made 4 contract
on bae!s very favorable to American
Consumers for their supply Of potash
for seven years.
It is asserted that the recent tax
law was passed at the instance of the
German potash trust for the purpose
Of deprivins Americans of the bene-
fits of their low prices. This would
cate. and SO bring about q return to
high prices and take away the mar
ket made in America by low priced
producers. The tax falls upon the
American consumer OF fertilizers. be-
cause it is provided in the contract
that all import and export duties. 0:
other governmental charges, shall be
paid by the buyer.
The hope is expressed that President
Taft and Secretary Knox, in whose
bands tho whole matter now stands.
will be able to secure some relief for
American farmers. A representative
of the State Department who has been
in Berlin endeavoring to bring about
favorable settlement. has just re-
turned to tho United States, and the
action of the administration following
the filing OF his report is anXiously
awaited by agricultural interests.
Ii is true that the Germans are en-
tircly within their right in imposing
an export duty on any article, but
when it is levied for the obvious pur-
pose of depriving the manufacturers
of a friendly country Of the advanta-
ges OF Il contract previously entered
into, in no essential respect does such
a step differ from a refusal to pay Il
Just government debt. That the affair
is OF great Importance may be judged
by the fact that the contracts call for
payment of %25000,000. The matter is
vested with additional interest by the
circumstance that Germany Is the
only important potash producer in the
world, so that inability to secure our
supply from that country would be q
serious blow to American Industries,
which employ millions OF capital and
would be matter Of considerable
concern to farmers all over the coun-
try.
| 1t is not believed that the actual ex-
ecution OF extreme measures will be
necessary- il the administration con-
tinues TO take such q stand as will
show its determination to protect Am
erican users Of fertilizers against the
imposition % an enormous, discrimi-
natory tax, levied in the interests of q
| syndicate of mine owners.