Bisbee daily review., 1911-04-28
POTASH SYNDICATE
 MAY GO ID PIECES
IRoston News nnraan.l


 In the United States the govern ment seeks to crush combines that restrain trade: in Germany the i'm Perial power not only recognizes bus at times actively aids such ef- forts at artificial restraint. It may be in coal. or steel. or salt: it is now notoriousls SO in potash. as made sensational by over a year of international argument. involving chancellories as well as corpora tions. German and American. Pro duction. prices. markets. are arbl- trarily fixed even the saeredness of a contract with a foreigner is not allowed % stand in the way.
 The controversy over the Ameri- can contract, with two concerns outside the potash syndicate. whose output is hence taxed heavily as constituting technical overproduc- ton under the new syndicate law. has by now become well known chapter in diplomatic and conner cial history The Americans bar sained for S25.O00.00O saving over a sevenycar period; instead, they are made 10 pay S42 a ton. while the syndicate itself sells potash at S36.
 But events are beginning to indi- cate that such weapons may prove boomeraugs, that such a policy of tampering with industrial laws may infiict direct economic damage far outweighing any passing profit. The new potash syndicate law. not yet eight months old. has not achieved its two-fold purpose of disrupting the American contract and fortify- l ing the potash industry in a hectic prosperity. The Americans are hold ing to the contract, and paying ex- | cess taxes under protest. The Ger man potash industry has become the prey of a dangerous fever of | speculation and promotion. German productive capacity is already thrice | the worlds consumptive demand. but instead of bringing supply and 1 demand nearer. the new law has | videned tho gulf. by abnormallv stimulating capacity and lookup Of capital
 This effect results from the com petition induced among syndicate members to increase or hold their quota of output. This allotment de uends on their number of working 1 shafts on Jan. 1 next; new mines thereafter must wait f-vc years be fore they can produce. Hence the scramble for shafts. Tn the first i potash syndicate's five-year term, ended in 1910, there was one wave of undue expansion; now another | succeeds it.
 Between 1906 and 1911 the nun Der of potash works rose from 35 to 6S, or 10G per cent, while sales ! increased but 26 per cent, so that the average quota had to shrink 8 l per cent. Since enactment of the new law, 46 new undertakings have been launched, in addition to which older works have sub-divided theiI properties and increased theiI shafts. Under the most liberal al lowance for growth in consumption it is likely that by 1914 the average quota will have fallen of another onsthird, or even nearer one-half.
 There are already in sight a to tai of 197 companies. Sober exper opinion is that at least 90 will b, unable to justify their existence under the threatened conditions O over production and lessened indi vidual profit In the carnival of con solidations and flotations, over $75, 00O,000 new capital has been in jected into an industry already cap talked for $3J0,0OO,O00.
 It is figured that the average com pany, now earning s45O.000 net would under conditions promise five years Eence. have at disposa barely s250.oOG The potash pie vii by then have been cut into to' many pieces
 Germany has in fact an embal rassment of riches in it's potasl monopoly German policy has dc tended the syndicates in the nam of conservation: instead there seem to be danger of profitless explol ation and sn imperilment of million Of capital.