Atlanta semi-weekly journal. (Atlanta, Ga.) 1898-1920, 1910-12-20
THE FARMER AND THE
POTASH CONTROVERSY

between the United states and Germany
would follow. These have been supple
mented by an interview credited to Mr..
R. s. Bradley, chairman of the Board
of Directors of the American Agricul-
tural Chemical Co.. on his return.
These dispatches and interview give
only one side of the case, that of some
American fertilizer manufacturers, and
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 sucn
4 regulation was imperative In order 10
conserve the potash supplies and to pre-
vent such results as have already been
brought about by the INSCRIPTIONS ex-
ploitation of the phosphate, coal ana
! 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 night in the manner that
Mr.. Bradley states his were secured
The first law that was proposed was
/ withdrawn because 1t seemed to discrim-
! mate against the Americans, ana the
new law was very carefully framed 10
avoid all discrimination. 1t applies TO
; all potash mined without regard 10
/ whether ii is used in Germany or is ex-
ported-aI contracts French as we'll as
American, were treated alike.
/ The real tax is trifiing, being from 10
| to 65 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 tnat Is
worrying those who, in their rush 70 get
low price, bound themselves 10 pay
any governmental charges.
| The law provides for government
commission that estimates the annual
requirements and apportions this on an
| equitable basis among the % mines.
Should the estimate be found too low IL
! can be increased at once, the purpose
/ not being to limit production, but ratner
! to increase it. In fact, considerable
part of the tax is expended In WORK
intended to increase the use OF potash IN
| agriculture.
/ Since Germany uses as much potash as
all the rest of the world, each mine is re-
ouired to sell half its lawful production
| in Germany and the remainder may De
| exported. A mine may exceed its lawtui
quota by 10 per cent without any furtner
4 penalty than having the excess deducted
| from its quota of the following year.
Should a mine go beyond this In exceed
/ ing it's fair and lawful quota, 1t must pay
tax on it's over-production which Is SO
high as to be Improbable This is 1ar
more effective in enforcing the law than
Gny system Of fines, and does not require
! the action of any court.
| Perhaps II the holders of the American
contracts had made no objection TO the
/ first law as proposed, they would ma
themselves in better position now; but
| their noisy protestations put the Ger
mans on their guard, and in framing the
new law they took particular pains TO
avoid everything that might appear to be
discrimination against anyone. Indeed,
! they went even further, and inserted
clause providing that the proper authorf-
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.
| 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 its action in signing a 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 mine
is at liberty to sell its quotas as it 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-caled fertilizer trusts in
America, since they are formed for only
| five years, with merely 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 a less price than that paid
by German farmers, a principle that
might well be applied to American
lphosphates.
| Anyone who is familiar with the
methods of the so-called American fer
tilizer trusts cannot fail to be impressed
with their solicitude lest there be a
rupture of commercial relations between
the two countries, nor with their mag
unanimous offer to surrender the paltry
sum of s12,000,000 in order to avoid
this calamity. such patriotism is unique
Possibly the fact that the great pack
| ing houses are owners of extensive fer.
tillzer factories may have something to
do with it. To the innocent bystander
lit appears that the American buyers
must feel that they have a very weak
case If 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 potash
sent from Germany after the law was
passed was taxed $22 per ton. This 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 Is per
cent less than ever before. This is due
to the fact that the German mine own
ers 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 2 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