Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1910-12-23
THE FARMER AND THE
POTASH CONTROVERSY

they fail to set forth many facts which
are of Importance to the real consumers
Of potash salts; that is, to the American
farmer.
In the contracts the American fertilizer
manufacturers agreed to assume all
taxes imposed by the German govern
ment. They knew that some regulation
of the production had been under con-
sideration for some years. and that such
/ regulation was Imperative in order TO
Econserve the potash supplies and to pre-
ivent such results as have already been
brought about by the INSCRIPTIONS ex-
ploitation of the phosphate. coal and
f, lumber resources of this country
] They also knew that the German
courts had awarded heavy damages
| against mine owners for making con-
| tracts IN the might in the manner that
nMr. Bradley states his were secured.
4 The first law that was proposed was
withdrawn because 1t seemed to discrim-
mate against the Americans, and the
! new law was very carefully framed 70
/; avoid all discrimination. 1t applies to
all potash mined without regard 10
/ whether it is used in Germany or is ex-
ported-alI contracts, French as wen as
/ American were treated alike.
| The real tax is trifling, being from 10
] to 60 cents per ton, which is less than
the usual state taxes on the same money
value in fertilizers in the United States.
! 1t is the tax on overproduction that is
worrying those who, in their rush 70 se.
a low price, bound themselves TO pay
any governmental charges.
| The law provides for government.
| commission that estimates the annual
requirements and apportions this on an
| equitable basis among the bS mines.
| Should the estimate be found too low, II
can be increased sat once, the purpose
not being to limit production, put rather
to increase it. In fact, consioeraDie
part of the tax is expended IN worh
| Intended to increase the use OF potash IN
agriculture. "
| since Germany uses as much potash as
ALI the rest of the world, each mine is re-
ouired to sell half its lawful productioh
lin Germany and the remainder may De
exported. mine may exceed its LAWFUL
quota by 10 per cent without any 'turther
penalty than having the excess deducleo
from it's quota of the following year
/ Should a mine go beyond this IN eAceeu-
ing its fair and lawful quota, 1t must pay
a tax on its over production which Is SO
/ high as to be Improbable. This is far
more effective in enforcing the law tnan
any system Of fines, and does not requlre
the action of any court.
Perhaps if the holders of the American
contracts had made no objection to the
/ first law as proposed, they would mo
themselves in a better position now; put
their noisy protestations put the Ger
mans on their guard, and in framing the
new law they took particular pains to
avoid everything that MIST appear 10 De
a discrimination against anyone Indeed
they went even further, and inserted
clause providing that the proper authorl-
ties might make concessions in the over
production tax for two years to such an
extent that the holders of these contracts
would pay no more for their potash than
before but this Provision did not apply to
the Speculative options which extended
for some years more. s..
/ Some years ago many American fertil-
izer companies signed potash contracts
in which no price was named, the con-
| tracts simply stating that they were to
pay the same price as the American Agri-
cultural Chemical Co. This latter COM
pany by it's action in signing contract
assuming all governmental charges seems
to have put these other companies in a
| bad position.
/ The German law does not require the
formation of any syndicate. Every mime
is at liberty to sell it's quotas as 1t sees
fit The mines find it more economical to
sell through one agency, and most OF
them sell in this way. These syndicates
or selling agencies are quite different
from the so-called. fertilizer trusts in
America, since they are formed for only
five years, with merely a nominal capital.
The government exercises a rigid control
over them and uses them to market the
products of the state mines This control
is exercised in the interest of the real
consumer, the farmer.
The law provides potash shall not be
exported for less price than that paid
by German farmers, principle that
might well be applied to American
Iphosphates.
Anyone who is familiar with the
methods of the so-called American fer
tilizer trusts cannot fail to be impressed
with their solicitude lest here be a
rupture of commercial relations between
the two countries, nor with their mag
unanimous offer to surrender the paltry
sum of $4,000, 900 in order to avoid
this calamity. such patriotism is unique.
Possibly the fact that the great pack
ing houses are owners of extensive fer.
ltilizer factories may have something to
do with it. To the innocent bystander
it appears that the American buyers
must feel that they have very weak
case il they are willing to offer $4,000
900 as the price of a compromise.
From Mr.. Bradley's interview one
might be led to think that all pota sh
sent from Germany after the law was
passed was taxed $2z per ton ThlS is
not true. Only the overproduction of
each mine bears this tax. There is
plenty of potash to be obtained from
! any of the other mines at the usual
prices. In fact, the American farmer
/ is today buying potash at 10 to 15 per
tcent less than ever before. This is due
Ito the fact that the German mine own
fers have changed their methods of SELL
ing in America. Formerly they had a
few exclusive agents who sold only to
! the fertilizer manufacturers. These
manufacturers did not sell the potash
salts to the farmer, but used them in
mixtures, the so-called standard one
containing only per cent potash, and
many of them even less Thus the
farmer to secure a little potash was
obliged to take a great quantity Of 9TH
err MARTIAL, no small amount Of which
consisted of filler having no fertilizing
value.
! In the south some kainit was sold as
such to cotton growers, but it was used
as leader to secure orders for mix
ed goods, and statesmen were expected
to sell no more kainit than was neces-
saTy in securing tn mixed goods order.
! Many small mixing plants have been
started in the south in connection with
the crushing of cotton seed. These plants