Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1910-11-07
LLRaANS GELPPOIASHRAIE
American Proposal to Split Difference
Under Dispute Rejected
LAW TAXES AMERICAN INTERESTS
Commercial Adviser from United
states Decides to Leave Merlin
Measure Destroys values OF
Big Contracts.

BERLIN, Nov 6.-Germany has rejected
the American proposal in connection with
the potash exports from that country con-
tracted for by American interests. This
proposal sought to halve the difference
urder dispute, caused by the enactment
OF the potash bill by Germany last May.
The American contractors would thus have
accepted a loss OF S14OOO,OO0. that is. $780,
900 annually for seven years, which consti-
tuted the life of their contracts. The new
law limits the production TO a certain
amount at each of the mines and levies a
tax OF 16 marks per hundredweight on all
production in excess Of the stated amount.
Germany's refusal TO accept the Ameri-
can proposal is on the ground that Il does
not accord with the principle OF the new
potash law, and II is announced that the
government cannot consider any proposals
not in harmony with that act. II the
Americans have proposals to make in con-
sonance with that law, it will consider
them. Various conditions are mentioned
in the reply framed by the German gov
eminent. all Of which are Of an uncom-
promising character.
Decides to Leave Berlin.
NJ. II. Davis, the commercial adviser OF
the American Department Of state, who
has been here for several weeks investi-
eating the potash situation. and representa-
tives Of the American companies concerned
held melting tonight and decided in view
of the wholly unsatisfactory reply to leave
Berlin Immediately. Mr.. Davis points out
that some OF the contracts in question were
made as far back as 1907, while others were
between June 80 and October 1 In 1909. He
says the United States government made
representations to the German govern
ment five months before the recent law
was enacted, protesting that such law
would destroy the value of the contracts
previously made with American buyers OF
potash salts and that It might operate to
embarrass the negotiations which were
then in progress between the two govern
ments for the granting OF minimum duty
| rates on the exports and imports of al
articles OF commerce between the United
States and Germany.
| When it was explained to the United
States government in January last that
there would be no export duty on potash
as had been previously supposed, there
appeared to be no reason for fearing action
on the part Of the German government thai
would impair the American potash con.
tracts
All other questions which related to tn;
commerce between the two countries hay
ing been satisfactorily adjusted, the com.
mercisl agreement between Germany and
the United States was drawn up and signeC
by the respective representatives Of bott
countries, by which each country granted
its minimum customs rates to the other.
Soon after the agreement was signed, tn,
potash bill again came before the Reichs
tag, somewhat changed in form, but pro
viding for a tax on production in such man
ner that the mines having contracts with
Americans, or owned largely by American
capitalists would be unable to operat,
without having to pay a tax on their out
put very much in excess of the value o.
the potash.