The Tupelo journal., 1911-02-03
THE POTASH CONTROVERSY
German Claims Presented at Wash
ington Are C~ontradicted by
American Interests.

Washington, D. c., Jan.-The cotton
growing states are particularly inter
ested in the potash controversy be-
tween the State Department and Ber-
liza, since the future price of fertilizer
is directly Affected by the outcome.
German interests have just made rep
ressntation to Secretary Knox similar
in effect to those assertions made by
circular letter to the miners through
out the South claiming that the Ger
man potash law, which places a pen
atty on mines selling heavily to Amer
leans at a lower price than has for
merly ruled, is merely a part OF the
general conservation policy of Ger
many.
According to Ochsimus, a leading
German geologist, there are about
80, 900 square miles of potash in one
section of Germany, each of these
containing some $4,000, 900 tons of
pure potash. This same authority
states that the annual output from
these mines is about 100000 tons each,
and he figures that if the annual out
put should jump to 5,000,0 900 tons an
nually, it would still require 621,60
years to exhaust the supply.
Another of Germany's assertions is
that the law does not discriminate
against Americans. The brief Of the
American potash buyers. committee
submitted to congress points out that,
under the law as recently passed by
Germany, the mines of the potash
trust il that country were allowed a
proportion of output sufficient to sup
ply the world, while the independent
mines that had made contracts to sup
ply the United States at a reduced
price were limited to one-fourth Of
their actual sales already made to us.
In addition a penalty Of $22 per ton
was imposed for overproduction. Thus
the penalty falls exclusively upon
shipments to this country and indi-
rectly upon the consumer.
An effort is apparently being made
to create the impression that this con-
troversy is really a contest between
the policy Of the German government
and an American trust. The fact Is
that there is no such complete and
powerful trust in the United States
as this German potash syndicate.
This syndicate actually m~onopolizes
the entire potash supply of the world,
save for the two mines that broke
away from the trust and sold to Amer
lean buyers. In this country there
are about 70 different fertilizer manu-
facturers using potash, and Of these
about 70 per cent are independent of
any trust utilization.
Another claim made by the German
committee at the White House was to
the effect that the American buyers
knew that a law would be passed pro-
yiding for government taxes and pen
alties 10 be assessed, and that they
made these contracts with this knowl-
edge in mind. The American commit
tee states positively that this Informal
ton was brought to them after the
contracts were made, and used as q
club in an attempt to force them to
give up the contracts already entered
into, which would have reduced the
price Of fertilizer materially In this
country.
An official high in the government
here Is authority for the statement
that the cost Of this controversy must
necessarily fan upon the consumer,
and that 1t should. therefore. be set
tied quickly. While the American
companies paying q penalty have met
the nr1eS6 nada Nv fha German ff11af