New-York tribune., 1910-12-28
DETAILS OF POTASH ROW
e.a,ement Charges Germany
with Discrimination.
GAYS 4 WAS DELIBERATE
~, Minimum Tariff Rate by
assurances That Contracts
Would Not Be Disturbed.

--.,seraar schmidtmann, president of the
-.u..sst. the largest producing potash mine
-.-nsnv. is in this country trying to
about important developments in the
,,,.a potash complication. which as
the aspect OF a discrimination against
..-.-;,an interests by Germany.
~ sehnnidtmann's presence in Washing
.-,s said 70 have been requested by Presi-
A.. Taft He has just returned from that
...- efter e long conference with Secretary
v-ox Nr. Scf-aidtmann is the president
:. the International Agricultural Corpora
80, which manufactures fertilizers and is
.-oo-no-ated in this country. with a capital
a. S5eaeea
From an outside source il is known that
-,s washington conference developed that
-bs-e was not so much concern felt as TO
the magnitude CT the business involved as
-bere was that all Americans were v1tally
.rrerssted in the principle at issue. What
g said 10 Re an authoritative statement of
ne exact situation was prepared yesterday.
ne summary is as follows:
obtained
,xclusiveiy from German mines Prior to
Iuiy !, lsS, the production OF all of the
german mines was sold by a potash trust
called the holisyndicate- This selling trust
gr syndicate. dissolved on July ! 1903 on
sccount CT internal dissensions among the
rotzsh miners comprising the syndicate
After the selling syndicate had been dis
saiveo representatives of practically all
fhe fertilizer concerns Of America made in
perfect good faith, purchase contracts for
their entire requirements with three re-
sponsiale German mines. The contracts
we're made with the mines direct and were
for periods ranging from one to seven
years
These contracts were the beginning of the
present compllcauon, for as soon as they
were made the remaining potash mines
which had obtained nc contracts during the
suspension Of the syndicate selling agree
re-t. a. once forgot their differences and
organized new so-called fighting syndi-
ezte" for the widely heralded purpose of
sEh1ias the mines that had made the
American contracts; in other words. TO de
r-Ive the entire American fertilizer indus
TT of potash unless contracts were made
with this new syndicate upon its terms.
N accordance with IFS outlined policy. the
so-calleG fighting syndicate at cnce began
G. cslnila Gn OF threats and efforts at IN
--ni6arion- II order 70 force the Americans
and the Independent German mines to give
u their contracts. but after six months Of
such Ineffective efforts representatives of
.he syndicate were finally sent officially 10
America with an offer TO compromise with
RE American buyers Before they left Ger
-sny. however. they had prepared and in
rroduced IL the German Reichstag a bill
which. # passed. would BY its terms destroy
the contracts made by the Americans
These syndicate representatives upon
their arrival in the United States Informed
she Americans that this bill destroying
their contracts would surely become a law
II Germany unless the Americans accepted
the compromise they offered. Then repre-
sentatives Of the American buyers presented
the entire matter 70 the State Department
ard, acting upon assurances obtained from
The Secretary Of State. refused TO be CO.
erced into accepting a compromise which
required them to give I'd about three
seur1hs OF the advantages they mad secured
a-5er their contracts made with the three
mines mentioned
Then the syndicate brought all Of its
large influence TO hear upon the Reichstag
to secure the passage OF the law annuliinE
re contracts The United States govern
-neu- at this iuucture notified Germany ti1sf
+ could not he given the minimum tariff
Under the Pavne-Al6rich bill II this dis
c-ir1inzrorY law destroying the value OF
held tv American citizens should
be enacted by the Reichstag.
L response 70 this American note the
German GOV e-nment assured the American
government that nothing in the proposed
potash law would he permitted 70 ir1rair
rre-exisring contracts and President Ia1t,
11non receiving this assurance issued his
J-oci iauation granting 10 Germany the
-aini1lUm tariff rate
i Is fact that. Notwithstanding thls
assurance or the German government. Ihae
government did finally yield 10 the pressure
If the KoisynCicate. and on May IL, 1910,
,ssses 2 law the effect Of which aoso-
i-telv deprived the American BUYERS OF ali
ef he advantages they had obtained
through their contracts. and ertlrely can
.sned the contracts themselves for the last
Eva rears Of their seven-year terms
It's expected that as a result OF the
Washington conference important action
VII Re rsken hv the STATE Department to
cal 70 C-ermanvs attention the fact that
& was upon assurances Of friendIiness for
Cur Industries and peopfe and their acts
that this government was induced TO accord
re her the minimum tariff rate.