The times dispatch. [volume] (Richmond, Va.) 1903-1914, 1910-12-18

W ss1SEh NJ Sss VII
AND FERTILIZERS
CONTINUED From First Page)
priving Americans of the benefits OF
their low price contracts, the German
Reichstng, on May TO- 1910, passed a
law which fixes the amount of potash
all mines may produce. irrespective OF
prior contracts; provides that about
half of this fixed production shall be
sold in Germany, and that on any ex-
cess over the limited production, there
snail be paid tax amounting to ABOUT
100 Per cent Of the price at which the
potash had been sold to Americans.
The amount of this tax on excess
production Is more than the entire cost
at the mines to consumers under their
low price contracts, and makes the
price on deliveries In the United States
much greater than the old syndicate
prices.
This law was passed With the full
knowledge that the tonnage necessary
to fulfil the American contracts was
equal to the total capacity of the non
syndicate mines, making 1t impossible
for such mines to take advantage OF
the free quota theoretically provided
for inc tho law, /. e., non-syndicat
mines would have no potash to sell
for German consumption and under the
law forfeit their free foreign quota
because they cannot furnish the Ger
man free quota.
1t is imp tailt to note that the
American acts were made long
before the law was passed, and that
1t was enacted with the deliberate In
tention to destroy existing contracts,
to coerce all potash mines into the
syndicate, and SO 90 bring about re-
turn to high prices and take away the
market made in America by low price
products.
Consumer Pays the Tax.
The tax falls upon the American
consumer OF fertilizers because It is
provided in the contracts that ANY
export or import duties or other gov
ernmental charges which may here
after becoming effective within the life
OF the contract shall also De paid by
the buyer"
Notwithstanding this provision, every
effort was made and many sacrifices
offered by the nom syndicate producers
to arrive at a compromise which would
save their American customers from
the consequences of such legislation
as the law of May 10. These efforts
failed.
Protest was made by the United
States ambassador against the tax law
before It was passed and after 1t was
enacted and modified by the Bundles
rath.. These protests We're unavailing.
Contentious of Americans.
American holders Of the low price
potash contracts now contend:
/. That such action should be taken
by the United States government as
will lead to a suspension of the tax
law in so far as it affects pre-. existing
contracts with United States con-
sumers.
Q That the action OF the German
government in enforcing the tax law
would justify the placing OF all Ger
man exports to the United States under
the maximum instead of the mini mum
tariff rates which Germany now en-
Joys.
8. That tho organization and policy
OF the German Potash Syndicate are
such as TO make It Liable through ies
United States representatives to prose-
! cuton under the antitrust laws.
1t Is not believed that the actual
execution OF extreme measures would
DO necessary II the administration con-
tinues to take such stand as will
show Its determination to protect. by
any measures that may be necessary,
American users of fertilizers (wno are,
OF course, mainly farmers) agains. the
imposition of an enormous discount (.
natory tax, levied. confessedly, In the
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