New-York tribune., 1910-12-24
NO TARIFF WAR WITH
GERMANY OVER POTASH
Settlement of Dispute Without
Recourse to Retaliatory
Measures Expected.
THE TROUBLE EXPLAINED
German Contention Based on
Rirht to Conserve Resources
Administration Seeking
Fair Play for U. S.
From The Tribune Bureau. ]

II. c
mt be rnisled concerning the trade rela-
,,ons existing between the United States
end Germany and the probable effect OF
cermany's action in connection with the
exnortation of potash should take with
numerous grains of salt the predictions
of The imposition by this country OF the
maximum tariff on imports from the
German Empire, Of a tariff war, ana
similar sensational forecasts.
Making all due allowance for the fact
shat when TWO nations experience a dis
agreement which seriously affects the
trade of one or the other all things are
,-ossifle. il is we'll 10 bear constantly in
mind the further fact that the Depart
rlent of State is preserving absolute 81
l.pce on this subject, and that such in
formation as is the basis for most or the
dipstches which find their way into the
press emanates from those whose poe
textbook nerves have suffered intensely
from the action of the Bundesrath and
who would welcome reprsals of any
.,harscter no matter how disproportion-
ate they might be TO the injury inflicted
~ the regulations Germany has put In
force to control the expectation Of pot
ash.
Germany is the largest customer this
country has This country is the best
customer Germany has. The trade OF
the two nations amounts to s4o0,0O0.oo0
annually. The potash trade amounts to
ss0oO.o00 annually.
How the Dispute Arose.
le ind i-
next in order TO examine the action of
Germany which has led TO the existing
difficulty There was a potash trust in
Germany That country believes in
trusts, merely reserving the right to fix
q maximum selling price for the prod
ucts of such combinations. This trust
expired by limitation on June 80. 1919,
and the next day Robert s Bradley, of
Boston, made contracts with certain of
the smaller German producers for potash
at approximately $50 a ton, delivered in
New York. except that under the terms
Of his contract he agreed TO pay any
expert duty which might be imposed
This price was S13 a ton less than the
syndicate had been charging. Other
American importers already had con-
tracts at the higher price, but each con-
iained the provision that the price to
them should at all times be low as
that made TO any other American i'm
porter.
Subsequently the Bundesrath passed
law providing for the imposition of an
export tax on potash on these terms
Each producer of potash was authorized
10 export free an amount of potash
equivalent to the amount ne sold for
domestic use, but on all exported by any
producer in excess OF the amount he sold
for domestic use an export tax should
he imposed, which in effect would in
crease the cost to the American i'm
porter 10 approximately $50 A ton In
view of the fact that the companies
with which Mr.. Bradley had contracted
had no domestic trade the price to him
would despite his contract, be S36 a
Ion. The only hardship inflicted on
American importers other than Mr..
Bradley was the actual increase of price
by IS ton and an increase in price of
kl6 a ton over the price they had hoped
10 secure by virtue of the Bradley con-
which guaranteed them price low
rs that made 70 any other American
producer.
Germany Cites Taft on Conservation.
The action of Germany is ba sed on the
contention that every nation has the
right TO conserve its own natural re-
sources. that potash is a highly impor-
fsnt factor in preserving the fertility OF
tie soil; that with constantly increas-
Ing population 1t is matter Of the high
est wisdom for Germany to take every
precaution 10 prevent an undue export
Of such an important factor, and. finally, |
that the United States contemplates sim |
lar legislation in connection with its |
store OF phosphate. In support of this |
hnal contention the German government /
cites President Taft's speech, delivered |
a. the Conservation Congress at st. !
Paul. in which he advocated the leasing !
as opposed to the sale of phosphate /
'snds saying: /
Of course under the Constitution. the |
government could not tax and could not /
prohibit the expectation of phosphate, /
'ut as proprietor and owner OF the landS +
"a "fl'n tne phosphate 10 iepoSftcu IL /
could impose conditions upon the kind of !
sales whether foreign or domestic, which |
he iessees might make OF the phosphate |
mined
All who believe in the policy OF con- /
sefvation are therefore, committed TO
the policy of imposing such limitations
on the expectation of phosphate AS may
he deemed necessary to protect domestic
interests and as are possible under the
Constitution so that ii is difficult for the
administration 10 oppose i'm principle the
action of Germany
Denies Discrimination in Principle
In reply TO the suggestion that the law
imposing an export tax is unjust dis
elimination against the United States,
q Germany submits that there is no dis
elimination in principle, that the law ap-
Plies 10 all nations alike; that had the
citizens of other nations entered into
contracts similar TO that effected by Mr..
Bradley such contracts would be affected
IN precisely the same way is his, and
mat the Bundesrsth could not be con-
'rolled by the existence OF contract
Nlth private citizen even if il were
tho, c,,cf -onfr2rf aSiSfed