The sun. [volume] (New York [N.Y.]) 1833-1916, 1910-12-27
ROW WITH GERMANY
PRESIDENT RGED TO NET tLft-
TORI TARIFF !wElN RES.
Amsrscans insrvessed 80, rhsi tsairarts
Thry snapped Z p when the Syndicate
Zen Gut were Nullineti by thr Law
the Syndicate Promptly Got Passed.

On misniSh, Of June ~. isoo a Bo~tonian
named Robert \ Bradley had talk with
come astute German business men in a
Berlin hotel and signed certain papers
that have caused tn. diplomatic repre-
sentatives OF two great nations much
labor and no small anxiety ever since
Those papers had 10 do with the sale at
potash. Potash has been appearing in
the papers n great deal 81 late and most
persons dimly associate IL With some
involved tariT dispute with Germany
But according n William y Shaw. vice
president OF the International Agricultural
Corporation oI this city. owners OF the
Sollsted. Germany. potash mine. one OF
the two mines owned by those not in the
potash syndicate. there are bigger things
bound up in this potash situation.
Mr. Shaw. who has just returned from
Washington. said yesterday that our
Government appreciates the gravity OF
the situation and that the nsxt session Of
Congress will have sonnet hing Ia say to
Germany about potash.
sK this potash bill tina, 80 passed bv
the German R-ichstsg on MAy 10. 1910 had
been In effect last January II IL pretty safe
To saw that Germany would not have been
put on tn. minimum list OF the Payne
Aldrich tariff bill.- said Mr. Shaw. This
German bill hs continued. was drawn
with only the American situation in mind
and il was drawn at the instigaiion ii the
present head of the potash syndicate to
the best of NV belief and the belief OF the
American business men Interested in the
situation The law fixes tho amount Of
potash all German mines can produce
irrespective Of prior contr acts and pro-
ides that about half Of The fixed pro
dIction shall he sold i'm Germany On
any excess over the limited production
the Law requires . tax OF about 100 per
cent. Of h. price at which potash had been
sold to Americans. Now the American
contracts were made bv Mr. Bradley
long before the law was PASSED believe
that II was promoted with the deliberate
intention II DESTROY existing contracts.
for the tonnage necessary 10 MI the Ameri-
can contracts vas equal II the total
capacity Of the two non-syndicate mines.
which therefore would have under this
Law no potash 10 sell for German con-
sumption and must forfeit their free
foreign quota because they cannot furnish
the free German quota. In other words.
Il was the desire NJ those back OF this bill
!. The Rsichsias to force ali potash mines
into the syndicate and - bring about
a return to high prices and take away me
market matfe in Ameri ca by low price
producers. The tax which the American
dealers in potash paw will eventually be
paid nv the consumer Of the fertilizer
IL IN expressly writtsn in the contract that
any export or import duty or other
Governmental charges which NAV here
after become effective within the life Of
the contract shall also be paid by the
buyer
commercial disputes with the United
States and are playing waiting game.
delaying and putting of coming TO an
issue until they find out how we act in
this matter. All Europe has suffered
from the high handed acts Of the Ger
the sufferers abroad are watching this
matter very closely. Our War Depart
ment II vitality interested because potash
is an essential Ingredient Of smokeless
powder and the amount on hand at pres
ent IL practically none.
The history of the potash row Mr. |
Shaw gives briefly m follows:
In the spring Of 1919 the German
syndicate that has control Of the potash |
business had falling out Jun. ~ |
1874. was tho last day for reor -.anization |
Of that syndicate under the custom
that syndicates shall he formed for five |
years. and tn" members OF IL could not !
come together within the agreed time /,
Mr.. Bradley. chairman Of the board Of !
directors Of the American Agricultural |
Chemical Company. was IN Berlin a, the
time and he Immediately snapped ND !
contracts in rhe open market thus formed /
These contracts ran two years. together Z
with an option tn run one year on a future (
contract for five years The contracts
were IS per cent below the prices then /
ruling. This Of course scared the syndi- |
cate members and they came together /
~ o'clock the next morning and formed /
a new syndicate, closing IN" opportunity /
10 buy potash al less than the old !
syndicate prices. 4 bill was introduced /
in the Reichstag in November. 1909
which was subsequently withdrawn The ,
Americans sent representatives to Berlin
who made temporary agreement with
the syndicate people But in January.
1910. this agreement was broken on
BEFORE President Taft put Germany
m the minimum list Of the Payns-Aldrch
tariH bill We had recrived positive assur-
ance from Germany that there would be
no legislation in the Reichstag that would
impair the existing American contracts
I his assurance was made 20 Ambassador
Hill. ! believe. by the German Minister
n State. Within one month after the
Presidents protocol had been issued
/, citation for potash legislation was begun
IN the Reichstag. The Conserv alive
md Clerical parties would not touch the
matter until they were assured that the
proposed bill was acceptabieto the Ameri-
AN Government and such assurance was
yiven them by Minister Sydow Of the
German Foreign Office On May 10 this
,ill was passed and il was PROMULGATED
IN Nav 90 Pending the prepa rat Of
his bill tho Minister Of Commerce de-
handed the originals 81 all contracts
rith Americans and he had them in his
when the bill was drawn
Now the attitude Of the German Gov
'rnmens In regard 20 this matter IL re-
fectsd In the fact that the collection Of
he tax prov ided In the bill has been put
N from day TO day although the money
% pay the tax has been deposited in
iermaB banks.
The situation at present In N follows:
Knox has had the bureau Of
rade relations studying tho situation
inc- January. 1910. Mack II. Davis Of
he bureau spent August and September
n Berlin and the Department prepared
full report. which was discussed at a
,rotracted meeting ~ the Cabinet on
II and again on December 20
md % Az least ten Senators and MANY |