The Hattiesburg news. (Hattiesburg, Miss.) 1908-1917, 1911-01-28
Shrewd Plan OF German Potash
Trust to Pull Its Chestnuts
Out of the Fire.
How American Farming Interests
Are Affected In the Contro-
versy BeWeen WASH
ington and Berlin.

now. During the past week copies of
circular letters to farmers of the Unit
ed States have been received in Wash
ington and called to the attention of
congress These seemed to show the
existence of concerted plan on the
part of German potash interests to in
fuence our Legislators against the
American companies that complain Of
discrimination against them by the
| new German potash law, aimed direct
ly at them.
These letters are frankly signed by
the German Kali works and are ad-
dressed to farmers generally in the
United States asking them to write to
their congressman and urge upon them
to support the German contentious
against the Americans. Lest the farm
er should make a mistake and support
the contentious of his own country
copy of the letter that he should send
to his congressman is inclosed, type
written and ready for his signature.
The letter so to be signed closes with
an urgent appeal to the congressman
addressed not to allow President Taft
" dttNhpt W VI lhe 1Ci " tCl lis
by applying the maximum tariff as
provided by the Payne-Aldrich bill for
such a contingency.
Trust Caught Mapping.
The simple facts in the case are that
in July, 1909, a number Of American
fertilizer manufacturers purchased a
very large tonnage of potash salts for
use i'm American fertilizers from In
dependent potash mines in Germany.
These contracts are made at prices
considerably under those which had
ruled up to that date under the dom
nation of the German potash syndicate.
The saving to Americans amounted in
the aggregate to about 100000 per
year.
No sooner had it become known that
the German trust had been caught
mapping than tremendous pressure was
brought to bear by the German trust
magnates to compel these buyers to
give up their contracts and buy from
the syndicate. Upon refusal to do 80
government action was threatened that
would more than Offset the advan-
tages gained by the Americans.
These threats were carried into ef-
feet by a law introduced into the
bundesrath in December, 1909 This
was used by the German syndicate as
weapon In an attempt to coerce the
American buyers into a settlement
whereby the syndicate prices could not
only be re-established but advanced in
tho TTuifad tha %
the United States department of state
this law was withdrawn by Germany,
and Immediately thereafter the COM
mercial treaty between the two coun-
tries was consummated, whereby Ger
manv was granted the minimum
American tariff.
Quick Reprisai Made.
Three months later the German
reichstag passed the present potash
law whereby all the mines which
exceed their allotments.. distributed
under this law by the government
are obliged to pay penalty tax
for such overproduction equivalent to
500 per ton on muriate of potash.
The price of this article stated in
the American contracts is but SIS
per ton at the mines. When this
law was passed the German govern
ment had the American contracts in
its possession and knew that this pen
atty tax wonld fall only upon the
mines holding the American contracts,
as these mines had sold their entire
output to the Americans. As citizens
Of no other country held these con-
tracts the law was aimed specifically
and exclusively at American interests
and in consequence constitutes clear
discrimination against the United
States.
An effort has been made to un-
dersell the Americans in their own
market with all the advantages on the
side of the Germans because of this
law. This has been met by fiat re-
fusal on the part of the American con-
tract holders to be undersold in their
own market, and they have conse-
quently met the lowest price made by
the German agents even though at a
loss. The cost of potash to the Ameri.
can buyers has been SIS per ton at
the mines plus So per ton transpor.
tation to the United States and the
arbitrarily assessed tax of 500 per ton
to be paid to the German government.
The Germans do not have to pay such
a tax and are offering potash in this
country at $36 per ton, or about SO
per ton less than it actually costs the
American buyers. This stand Of the
American buyers makes 1t impossible,
so long as they maintain their posi-.
don, for the German syndicate to ere
ate monopoly in this country ant
,hus to fix any price that it desires.
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1t is meritorious remedy for al the