The Republican journal., 1911-01-26
THE POTASH QUESTION.


The action of Germany in placing an
export duty of $22 per ton on potash, to
which we have before called attention.
is matter of serious import to the farm
ers of this country, as they will have to
pay the necessarily increased cost of this
fertilizer. The past year the manufac-
turers stood this heavy potash tax out o.
their own pockets, but if our government
does not effect some relief raise in price
is sure to come and the American farm
ers, of necessity, will suffer. The Ger
man government has done what no other
government has ever done, prevented
the carrying out of contracts entered
into by citizens of the two countries. and
which both were DESTROYS of carrying
out, to give monopoly to a potash syn
dictate or trust, known in this country as
the German Kali Works. The old Ger
man potash syndicate expired June 81,
1909, and before the formation of new
syndicate contract was made with one
of the largest German potash mines to
supply large American fertilizer manu-
facturer at low prices, with an option to
extend the contract for a longer time.
Shortly after this about IS other Ameri-
can manufacturers secured similar con-
tracts. When the new potash trust was
formed it was seen that if these Ameri-
can contracts were allowed to stand it
would mean an enormous loss in their
profits; and law was passed placing
tax of $22 per ton on murlate and sui
phate of potash coming to this country
for the American fertilizer manufactur-
ers holding contracts with two large pot
ash mines. This law is so arranged that
each mine is allowed to ship certain
limited amount without the heavy pro-
duction tax, and all potash produced in
excess of this quota must bear the tax.
Further, for production in excess OF the
allotment, or quota, there is a pro rata re-
duction in the quota itself. The object of
this is plainly seen. While the two large
potash mines could easily supply the
American manufacturers they would IN so
doing greatly exceed their quota, so much
so that their allotment, or quota, would be
reduced to nothing and all their potash
would bear this heavy tax. On the other
thand the German potash syndicate, or
trust, is combination of a great many
different mines and taken together they
can produce and ship an enormous
amount of potash without any one mine
exceeding its quota, or mourning the
heavy production tax. This enables the
German potash trust, or German Kali
Works, to quote price on potash salts
from S2.5 to $3.50 per ton less than the
American fertilizer manufacturers who
pay the tax Of S22 per ton, and at the
same time make an enormous profit. Al
though the German Kali Works are GO
ing to some pains to explain to the pub
lie that they are the only ones who are,
or have been in the past, willing to sell
to farmers direct, it is we'll known that
heretofore they have positively refused
to sell to farmers direct and have for
hidden American fertilizer manufacture
ers to resell potash purchased from
them below certain figures that the Ger
man Kali Works themselves fixed. Any
manufacturer who did so would have his
supply cut off.
The American manufacturers sent
representative to Berlin, but could get no
satisfaction from the German officials,
and delegation has visited Washington
and interviewed President Taft and
members Of Congress. Under the pres
ent tariff the maximum tariff may be
i'm posed upon imports from Germany in
retaliation for their unjust discrimination
against American manufacturers, and all
interested should write to their Senators
and Representatives in Congress, and to
the President, giving their views on the
question. What affects the farmers
practically effects everybody in this
country, and there should be general
protest against this heavy tax imposed
upon them for the benefit of trust.
The are forty millions fewer sheep in
the world than fifteen years ago, with
ninety million moro neonle usinp wool