The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-12-21
URGED TO START TARIFF WAR
PRESIDENT TAFT TthF TIVE
TO SRI ~ POTisH.
Out and Out Payne NIdrich rAr'r Wen s~e
Principle In the Application OF
Maximum Rate. tn Grrman Imports
-t.ermAny Denies Discrtminati ton.

wAsHrNoro~ Dec ~ The situation
arising from ~" dispute between 'he
American f.rtlA4.r interests and the
German potash syndloat" IL becoming
more acute and the possibility 81 Prssi-
dent Taf, imposing the retaliatory pro-
visions Of the Payne Aldrich tariT act
upon imports from Germany IS now being
seriously suggested The question in
volvsd IN Germsny's failure 20 protect
the contracts held by Americans was
discussed for about four hours AZ a special
meeting Of the Cabinet last Saturday,
II was learned to-day that several mem
bers were Of the opinion that the situation
amounts Ia u discrimination against Amer
lean interests and consequently comes
under the provisions oi III" tarIff act
The President and Secretary Knox.
how ever wer" IN favor ~ studying tho
question further t"fnr" taking definite
action and they are now d' voting them
selves TO y
Strong pressure - being brought 10
bear upon President Taft from sources
outside the Cabinet - influence him To
tale y determined stand Apparently
he and kls advisers are not concerned
30 much about tn" contracts themselves
~ about the principle involved NJ
Us iivl~eTs. including members Of
'ui, ,rsss hAN. pointed out to him that
{ re action Of The German Government
Constitutes - discrimination against the
United states II will b." necessary for
the President ~ G"t # the me- Simum and
minimum fe. lures Of the PAYNE Aldrich
tariff ,a~ a-e - - respected and oieerN ed
bv OtNs- ~ ions
In other words soine of the PresGdenr =
advisers regard the German situation
a. the 'hosI important that has vet arisen
under thest PROVISIONS, and they believe
thar the attitude Of rhr~ Government
toward the potash CONTRACTS will hs ac-
cepted generally a. an indication Of It's
intention 20 ldher" 80 the spirit 1t the
Payne Aldrlch law
Some nj the Presidents friends are
urging him "a have IN. Vows II this
Government laid befu-" the German
Government through diplomatic chan
neil with no'l hat Il a mutually salts
factor arrangement - not reached within
a specified period th- maximum rates
of tn. tarll vii be- apru"d The InposI-
ton Of tines. duties upon German imports
would undoubtedly result IN d trade war
between Germany and the United State
ana u NplLtl' 81 'Far' f'I -s'N s'Tdl nufluT"Nl
million dollars annually would ne in
volved Imports from Germany would
be assessed al "A rate of duty - per cen,
higher han the rates imposed on similar
commodities from other countries
The potash question mas grown ou' nj
contracts held by American fertilizer
nufacturers Tor supplies from the
mines in Germany controlled ny a Ger
man syndicate. When the syndicate
was dissolved IN June. 1909. representa-
tives Of American concerns obtained con-
ira, . Tor SUI plies AZ a low p-iCs. 500 ~
a ton The syndicate was reor ganizsd
shortly after aud a law was passed i'm
posing tonnage tax on the output Of
each mine IN excess OF specific a.lot-
ment Through the operation OF the ton
mage tax the price Of potash to this country
rose from $50 20 10 $3s "A ton
The Amer an fertilizer nterasrs held
thar the potash law virtually lnvalIdated
their contra, Il and Appeared 10 tn. state
Department for diplomatic support The
representatives OF the American f.rT! Z"i'
concerns contend thar IN" German potash
law was enacted primarily for the pur-
rose of invalidarIng the contracts and
that IL Is a discrimination against Ameri-
can interests The representatives of
the German Government. however. de
fsnd the law a. measure intended solely
20 conserve the supply Of potash. which
10 now being Used up rapidly They take
the attitude that the potash law appl,es
with equal force 10 all countries and con
sequently cannot De regarded as a dis
elimination against the United States
Germany contends further that the so
called contracts OF the American fertilizer
concerns were merely preliminary agree
ments and that the formal contracts were
not signed until the intention of the Ger
man Government 10 impose tax upon
excess production was publicly known.
The American holders Of the contracts
the German advocates say. have recourse
TO the German courts for redress but
have failed TO avail themselves Of thia
privilege