The Caucasian. (Shreveport, La.) 1900-192?, 1911-01-05
POTASH TAX HITS
The FARMERS HARD
Looking to Washington For Re-
lief From German ExaCtiOns.

Efforts continue to secure relief from
the enormous tax imposed by Germany
on exports of potash to the United
States. In these efforts all agricuI-
tural interests are deeply concerned
for the reason that potash is an essen
tial element Of all commercial fertili-
gers.
Realizing the seriousness of the bur-
den so imposed, President Taft and
the state department have made vigor-
GUS protest to Germany, and the mat
ter is still pending. A representative
OF the state department who visited
Berlin in an effort to secure redress
from the German government has just
| returned to Washington, and further
action by the administration is ex-
pected without great delay.
Official efforts to bring about a IA
vorable settlement have from the start
been actively aided by the nonsyndi-
cate potash mines which made the
American low price contracts.
Did Germany Break Promises?
1t is understood that the state de-
partment had assurances from the Ger
man government when the tax law
was first talked of that nothing would
be done which would impair existing
trade arrangements. These assurances
proved to be worthless, and after Ger
many had secured the benefits of the
minimum rates Of our new tariff law
the potash tax was put into force.
| President Taft In his message to con-
gress may have had this fact in mind
when he said. referring to the success
full working out of the maximum and
| minimum provision, .'There are, how
ever, unfortunately. instances where
foreign governments deal arbitrarily
with American interests within their
jurisdiction in manner injurious and
inequitable"
It was when the German potash syn
dictate found that Independent mines
had got almost all of the American
business by making prices about 30
per cent lower than the syndicate
prices that the law now complained Of
by American consumers was demand
ed by the potash trust and enacted by
the reichstag with the ayowed pur-
pose to deprive Americans of the bene-
fits of their advantageous agreements,
running In some cases until 1916.
The amount of the tax imposed by
Germany is more than the entire cost
at the mines under the American con-
tracts with nonsyndicate producers and
makes the price on deliveries in the
United States much greater than the
old exorbitant syndicate prices. As
the American contracts provide that
the buyer shall pay all government
charges, the tax falls heaviest upon the
consumers of potash for the making
of fertilizers.
Tax Levied to Raise Prices.
The tax law was passed, it is assert
ed, with no other purpose than to de-
stroy existing contracts, to coerce all
potash mines into the syndicate and
SO to bring about return to high
prices and take away the market made
here by nonsyndicate producers
Until this controversy arose 1t was
not generally known that potash in
workable quantities was found only in
Germany. The production is and has
been for twenty years controlled by a
syndicate. which also fixes the price
that the world shall pay for this ne
cessity. In this syndicate, which is
strictly regulated by law, several Ger
man governments participate as own.
ers of potash mines. It was during a
temporary lapse in the syndicate, leav-
Ing every one free to make his own
figures. that the low prices now caus-
ing trouble were made