The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-12-18
POTASH SITUATION
AND FERTILIZERS
Peculiar Condition That
Southern FarlnersAre
Much Interested In.
TW o GOVERNMENT
ARE UP AGAINST IL
Germany and Uncle Sam Have
Matter Under Consideration.
Diplomacy and Tariff Regu-
lations Cut Figurc-Vir-
ginia and Carolina
Farmers Interested.
BY FRANK g. woODsoN,
Industrial Editor.

Two weeks ago, at the request OF
number OF farmers n Virginia and
North Carolina, who are large buyers
of commercial fertilizers, ] undertook
10 get at the bottom of the potash Sit
uation," as developed by recent action
of the German government, which ac-
ton, II not headed Oft in some way.
viii inevitably result in increascd
prices for fertilizers, which the South
ern farmers must pay. In my re-
searches on the subject ran across an
interview in the New York sun with
H. S. Bradley, of Boston, chairman of
the board OF directors OF the American
Agricultural Chemical Company. \ In
comments on Mr.. Bradleys talk with
the newspaper man some injustice was
perhaps done that gentleman. My
attention having been called TO that
fact. have sought further light on the
subject.
More Light.
From reliable semi official sources
learn that renewed attention is being
directed to the rred!cament in which
American farmers in general, and
southern farmers particular, have
been placed by the action OF the Ger
man government In imposing a heavy
tax on exports ut potash to the United
States. Since then several Congress-
men and Senator's from the southern
States have called on the President and
the Secretary of State In Washington
and urged action BY this government
FOR the protection OF Southern farmers.
for. as before stated, the potash stu
alton" has become a question OF diplo-
macy and q matter OF treaty between
the two governments. BE it under
stood in the beginning that potash.
which is produced only in Germany, is
mn essential in tine manufacture OF ell
cmmereial fertilizers and muat antct
The Inv, and Why
" is asserted. and has not been con-
tradicted. that the tax law recently
passed by the German authorities be-
came q law at the instance OF the
German potash trust "and for the eX-
pressed purpose OF depriving Ameri.
cans OF the benefits of their low-price
contracts with non-syndicate potash
mines
Situation Summed Up.
Tne statement / have goes on 10 say:
The amount OF this tax Is more than
the entire cost at the mines to con-
sumers under their low-price contracts
and makes tho price on deliveries in
the United States much greater than
tho old syndicate prices. The Amcri-
can contracts were made long before
Hcted with the deliberate intention TO
destroy existing contracts. to cocree
all mines into the syndicate and so TO
bring about return TO high prices
and take away the market made in
America by low-price producers"
Notwithstanding this, every effort
has been made TO save American con-
sumers from the consequences of the
tax law, the effects of which arc likely
sn hn .raI. rav, rl,- H. a..
pressed that President Taft and Sec
retary Knox, IN whose hands the
whole matter now rests. will be able
70 secure American farmers some relief.
"A representative of the state Depart
ment. who has been in Berlin endeav-
oring to bring about favorable set
tlement, has Just returned TO the
United states, and the action OF the
administration following the fling OF
his report Is anAiously awaited by ag-
rlcultural interests.
Hearing From the People.
And this Is why the Georgia, South
Carolina. North Carolina and Virginia
Congressman and Senator'S are besieg
ing the Department of State and try
lug to have Secretary Knox and Presi-
dent Taft sit up and take notice. These
Congressman have heard from their
suffering constituents, ahd through
ing from the same constituency.
That the potash situation may be
made entirely clear. and that any err.
rors l may have made two weeks age
IN treating the subject may be correct
ed, ! quote largely from the data re-
ceived and above referred to. which
data goes more explicitly into details
than ! did two weeks ago or that
have been able to do in the above.
From this circular learn that about
100000 tons Of actual potash are an
nually produced, of this amount the
United States consumes about one
fifth.
Up to July l. 1909. the production OF
potash for twenty years had been alb.
solutely controlled as to quantity anc
price by syndicate, regulated by law
In which the German government par.
tlclpated as an owner Of potash mines
On the date stated, the syndicate
was broken up by internal dissensions
and one important produced made con.
tracts on basis very favorable te
American consumers for their supply
of potash for the following sever
years.
Prior contracts made In 1906 with In
dependent fertilizer manufacturers II
the United States provided that thu
price paid by them should be as low
RS that paid by any American consum
cr
When. therefore contract wal
made on July !, 1909, by a non-syndi
cate producer for potash to be deliver
ed to the United States at price abou
80 per cent. less than the old synd
cate prices, practically all American
potash consumers We're placed upol
this favorable basis and the contro
Of the American market passed to tn
non syndicate mines,
Retaliation for Low rrice Making.
Upon the demand of the syndicate
pnd for the expressed purpose Of de
.Al (ContInued OH Second paHe.l