The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1911-02-08
GERMAN ANSWER ON POTASH
TAX.
The Government Defends the Action
OF the Syndicate

Washington, Feb. 1.-The action Of
the German government in imposing a
penalty tax on the production Of pot
ash, may be said to have passed into
the realm Of diplomacy with the pre-
sentation by Count Bernstorff, the
German ambassador to Secretary
Knox of the answer Of his government
to the Secretary's inquiry as to the
reason of the action complained Of
The German answer defends the ac-
ton Of the German government in i'm
posing the penalty tax as a measure
necessary 10 conserve the valuable
potash deposits Of the empire and
protect them from speedy exporta-
ton, which would cause a reduction
in the price Of potash.
Because Of the importance of the
matter Secretary Knox is conducting
the negotiations himself and there are
indications that they will not lag.
In view Of the length Of the German
answer to his inquiry the Secretary
was not able TO read it in detail before
he was called to the regular cabinet
meeting, but from the ambassadors
action, he was able to secure an out
line Of the German contention. This
is believed to he based on the theory
that the imposing Of the tax on pot
ash production is regarded as a pure
ly internal affair and that as a matter
Of fact it is not an export tax.
1t is also asserted that the tax is
not chargeable against the American
purchaser but should be paid by the
German mine owners. Finally it is
charged that the sO-called "indepen-
dent" potash producers, who made the
contracts with the Americans for the
delivery of potash in 1909 did so with
full knowledge that the German gov
ernment had for some time been
known to be contemplating this tax on
the production Of potash in order to
conserve the limited supply in the
mines.
Some Of these contentious are in di-
rect conflict with those made to the
State Department by the American
contractors who claim to have been
Wronged by the action of the German
government hence it is necessary for
the department to make a careful in
vestigation of the matter before de-
termining upon a line of oction.
Some idea Of the bitterness of the
feeling that has been aroused by the
action Of the German government in
levying this potash tax may be gath
cred from the fact that some Of the
American contractors who were in
conference in this city last wcc',. have
q 2nc need their intention Of request
nE .he Department Of Justice TO 1e-
a.r action TO punish he Ameri,.r
.'n"eroo.s Of the German potash
trust or syndicate under the criminal
sections of the tariff act in 1894.
ihNS uSStIl llldl SecClOn rs or this
act is still in force. Notwithstanding
subsequent tariff legislation. This Sec
ton was designed to prevent the i'm
portation into the United States of
commodities produced by foreign
trusts and provides for fine Of from
500 to 200 and imprisonment from
three to twelve months on any per-
sons engaged in importing any article
as the result Of a combination agree
ment or trust intended to operate in
restraint of lawful trade or to increase
the market price in the United States
Of any article of import
Not much Importance is attached to
this threat by the German Kali Syndi-
cate as represented in the United
states, as it is felt that the jurisdic-
ton Of the United States does not run
beyond the seas and there is no evil
dence Of potash trust in this coun-
try.
pRESVDENT I,JNVIvV gDu-Hu-c