The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1910-12-25

1 ne extensive use OF pVtaSh, either as
muriate or high-grade sulphate, in COM
mercial fertilizer and for manufactur-
ing purposes in the United States, and
the degree TO which this country has
hitherto been dependent for its supply
upon Germany, makes the potash dispute
matter of great trade Importance to
American industries.
The specialists who have been engaged
in the attempts 10 adjust matters or to
advise the President how to proceed IN
ease an adjustment OF the dispute Is
not possible have left Washington for
the holiday season, and the matter is
now In suspense. No definite plan of
action has yet been reached and il is
not probable that a course viii be de-
cided upon for some weeks yet.
Reduced 10 its simplest form, the mat
ter now stands as follows
VIII requirements for potash in the
United States be filled by independent
German mines, whose entire output in
recent years has been coming 10 this
country. or viii the business of supplv-
ing those requirements be turned over
10 the German syndicate. operating I'M
der the potash Law. enacted last MAY?
The independent mines are willing 10 fur
nish potash at the equal of about so per
ton for mIriate delivered at American
ports. The German syndicate seeks TO
establish price of about $35.75 per ton
ar the same ports.
S1O,OOO,OOO Involved.
American importers had provided for
the requirements OF the United States.
amounting TO about 100000 worth of
potash annually through contracts exc
cuted in 1906 and 1893. and at the prices
therein stipulated on the basis of $50
Ter ton muriate. there would have been
Effected "A general saving OF the differ
ence between the prices of the indie
pendent mines and those OF the syndi-
cate This, on the period of the con-
tracts and for the amount involved.
amounts TO about So, 600 600 on a basis of
present requirements. The use OF. this
material in the United States is on the
Increase, and under normal conditions
the requirements OF the United States
viii probably be twice as great in five
years as now
The German syndicate's influence was
sufficiently strong with the German gov
eminent In May last to obtain the pas
sage OF the potash law, which law
makes II impossible for the independent
mines 20 fulfill their contracts with
penalty tax equal 10 the difference be- /
tween the contract price and the Ger
man syndicate price As a matter of
fact. this tax is greater than this differ !
enee IN the contract price by about 50 /
per ton.
The German BundeSrath has ruled that
a reduction may be made 10 a point /
where the price between syndicate and
American, contract prices may be made /
equal This. Of course, renders valueless
the contracts for 100000 worth OF po-
fash, which would have been supplied |
under them and this is absorbed By the
German government itself, as the amount
of the tax is 10 be turned into the i'm
perial German treasury. There is now on /
deposit in Berlin on the business Of the
past six months. more than Sc, so. 900 Of
this penalty tax which has, Of course, !
been paid by Americans.
RetaIintOry Measures Provided.
The point is raised of whether the
German government, in providing
scheme by which American contracts
only win be taxed. has not Disseminated
between the contracts made by the in /
dependents and those made by the SYM
dictate. For all practical purposes. the |
penalty tax is an export tax applying !
only TO American contracts, as all other /
contracts have been taken over ana are /
being filled by the syndicate without |
the payment OF the tax.
Section Of the Payne-Aldrich tariff 1
act of August 8, 1903 is held generally 4
10 be the means for correcting Just such 4
discriminatory action on the part of a /
foreign country as is constituted in this /
German potash matter. Moreover. il Is 4
stated that the German government. prior !
10 the issuance, by the President of the /
United States of the proclamation giving
her the Dement'S Of the American mini /
mum. gave certain assurances that
American potash contracts would not be
invalidated by any potash law which
might be passed.
Discrimination Evident.
The attitude Of the importing and ex-
porting interests generally throughout
the country is believed to be in favor
Of the application OF the retanatory meas
ures provided for in section . of the
Payne Aldrich tariff law. notwithstand-
ing the fact that such measure on the
part Of the President will or NAV re-
suit in temporarily suspending existing
advantageous trade relations between the
two countries. The opinion OF such gen
eral exporting and importing interests,
1t is believed. comes from a feeling that
If such determinations as the one I'm
question are allowed 10 go unchaIlenged, /
there would be practically no assurance
that any contract Of whatever kind would
be held inviolate by any foreign govern
ment in its legislation affecting tariffs
There is also a widespread feeling that
this German situation in respect Of pot
ash furnishes just such occasion as is
mel n Hnf mr. No - Z
of the present tariff law is to be re-
garded both at home and abroad, as
working measure, or IS to be disregarded
as entirely ineffective
AYernrr Crnn Rntnrns Per Acre.