Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1910-11-18
Misesltansuus 8radina.
THE POTASH WAR.
Mr.. B. r. Taylor. Explains Whole
Situation.
Columbia Record.

Columbia Record.
The potash war in Germany. If 1t
lean be so called. is of intense interest
to the fertilizer industry of the United
States and therefore to the south
particularly. Potash is a large ingre-
ldient of manufactured fertilizers used
upon the cotton, grain and tobacco
fields of the United States. Germany
is the chief source of supply, and the
fertilizer concerns Of the United
States are the purchasers Of about
half that supply. We import some
$S,000,000 worth Of potash annually
from that country, according to the
ISpringfield Republican. The potash
mines of Germany have been operated
under a syndicate of ownership. but
a year ago last June the syndicate
was dissolved through inability Of the
members to agree upon the terms Of
a continuance. Thereupon leading
American buyers of potash took ad-
vantage of the situation and made
contracts extending over some years
for the delivery Of potash to them at
s20.4O ton.
Specially Protected.
Thereafter. or late in 1909, the Ger
man potash syndicate was recon-
structed and bill was introduced in
the reichstag giving special legal
sanction to the syndicate and appor-
tioning the output of the mines among
the members on the basis Of specific
allotments and taxing the excess Of
output above those allotments. The
effect of this measure would have
been to tax heavily the American con-
tracts. Then came the diplomatic
negotiations between Germany and
the United States over the maximum
and minimum clause Of the Payne
Aldrich tariff law, and the said bill
was withdrawn. It's tendency would
hurt the German chances of escaping
the 25 per cent additional tariff to be
Imposed on imports into the United
States from countries unduly discrim-
mating against this country in their
tariff or trade arrangements. Ger
many was finally admitted to the
minimum tariff schedule; whereupon,
or in May of this year. the reicnstag
took up and enacted the bill referred
to, with the result that the potash
syndicate refuses to recognize or ex-
ecute the American contracts at the
$20.40 price. The price named by the
syndicate is s34. While the German
bundesrath or Federal council has the
power to compel observance of the
contracts, and while the German gov
ernment mas been appealed to on be-
half of the American interests, moth
/ ing has been done, and the matter Will
now be taken up actively by the
American state department.
Retaliation.
If the German government contin-
ues to refuse to interfere, the Wash
| ington administration will no doubt
consider itself forced to adopt retalia-
tory measures. 1t will likely use its
power to apply the maximum tariff
schedules to all imports from Ger
many That would infiict a hard blow
| on German trade in this direction,
| and measures in extended retaliation
would doubtless be adopted by Ger
many against the United States. Pot
ash seems to be a small matter over
which to start an international trade
war but the American interests seem
to have a real grievance, and failure
on the part Of the German govern
ment to correct matters will justly
provoke retaliatory measures at
Washington.
| AS It Affects Us.
Mr.. B. F. Taylor of the Taylor Man
| ufacturing company, who while not
manufacturer Of mixed fertilizer and
therefore not purchaser Of potash
salts, is unusually well posted on for
eign trade conditions, was asked by
The Daily Record to give statement
of the situation as it affects local con-
ditions. Mr.. Taylor stated that while
not personally interested in the pot
ash situation, he is informed that all
of the fertilizer people are much
stirred up over the potash situation.
"As far as 1 know" said Mr.. Tay-
lor, there are no potash mines any
where in the world Of any consequence
except in Germany, and nearly every
complete fertilizer or balanced ferti-
| liZer contains certain amount OF
|potaSh.
II do not know how much truth
there is in it, but / understand that
a large fertilizer concern in this sec
ton two or three years ago purchased
some potash mines in Germany, so as
| to insure to that company regular
Isupply. This report may have been
mistake. and this company may have
Ibeen one of those who took advantage
of the disagreement between the syn
dicate members to make contracts eX-
tending over several years for the de-
livery of potash to them. | have been
told that the emperor Of Germany is
la large stOckhOlder in one or more of
the mines, and that it was largely due
to his Vaccinations that the syndi-
lcate was established, and it is due
to his influence over the German gov
Iernment itself that the government
| has taken q hand in the matter of
limiting the output so as to increase
the price. 1t also appears that on ac-
count Of this governmental action
contracts made with American buyers
have practically been cancelled with
out consultation with the American
ht,H- nd tn
them for the breach. OF course, we
Iall understand that the government
has q right to limit the output from
its mines. but it has no right to can
Gel contracts without entertaining the
Ijust claims of the buyers. This is the
status of the case now. Germany re-
fuses to entertain our claims. and yet
IrefuseS to allow our buyers to get
their goods at the contract price. The
lfact that the emperor of Germany is
"a part Of the government of Germany
land q stockholder in these mines
ImakeS the protest of the United States
Il very just one, and justifes retalia-
ltion on the part of our government
by applying the maximum tariff
lclause. should they find it expedient
to do so. The advance of practically
$14 per ton on the price of potash
lSaltS will mean practically 81 advance
IN the price o! mlXe0 tertlllZerS IN tnlS
Estate. or course. it will vary with the
lamOunt of potash used. but I think
that 81 will about cover the average
IadVancc.
The Government Monopoly.
Il think it is an OppOrtune moment
ITO call attention to the great advan-
Itage to Germany Of its system of COM
Imercial advancement. Every manu-
facturer or dealer in Germany is re-
lquired to belong to a body correspond
ing to Chamber of Commerce. and
the government itself enfOrceS the
payment of dues from all members.
lThis money is used for finding out
new processes of manufacture and for
finding markets for German products.
and it is all operated under the direct
supervision of the German govern
ment. The advantage to Germany in
Il case like this potash syndicate is
very clearly seen. and so long as it is
under governmental supervision such
Il monopoly is greatly to the advan-
tage of the German people and to the