Evening star., 1925-03-23
PROTEST IS LIKELY
ON POTASH MERGER.
America Not Apt to Permit
Farmers to Be Squeezed
by European Alliance.
BY FREDERIC WILLIAM VILE.

Diplomatic remonStranceS 10 france
and Germany by the United States are
forShadowed as the result OF the
formation of the F'ranco-German pot
a sh trust America is overwhelming
ly the largest purchaser of European
potash, now in monopolistic control OF
the new combine. In 1910, when
Philander c. Knox was Secretary or
State in the Taft administration,
America threatened Germany with
tariff war because of the grasplng
tactics of her potash syndicate. Today
the United States is faced by pre-
cisely the same dangers against which
we protested 15 years ago.
The only difference Is that in 1910
II was a purely German combine that
"bled" American potash importers, and
now it is d. Franco German alliance
that is in position to dictate terms.
In 1920 the United States bought $685.
600 tons OF Franco German potash,
worth S34.000.000. 1t is one of our
essential imports. Until some Muscle
Shoals plant is turning out cheap
fertilizer for the American farmer he
will continue to pay tribute to Franco
German potash. 1t is to avert the
danger of his paying through the
nose that our diplomatic machinery
may be put in motion.
Mines Go to France.
The chief German potash mines be-
fore the war were in Alsace-Lorraine
They are now within French territory,
but France has found it practicable
to form an alliance with the German
potash interests for the joint control
of a product which was a world
monopoly in the old days. Just as in
prewar times, arrangements are under
way for limiting output, fixing prices
German "kali-Syndikat' was the most
powerful and best orga nized of Ger
man industrial combinations. The
Prussian state owned some of the
most valuable potash salt mines and
dominated the proceedings of the
syndicate. The combine, possessing
an absolute world monopoly, eX-
plotted it ruthlessly. Americans
were completely at the syndicate's
mercy. Our agricultural industry was
far and away its best customer
Tried to Buy Interest.
In 1910 the American fertilizing
industry, headed by the Virginia and
Carolina Chemical Co. attempted to
break the German potash syndicate's
stanglehold. 1t entered into nego-
tiations with owners of certain Ger
man mines for a purchase of con-
trolling interest, which would have
carried with IL membership, and
therefore a voice in the affairs of the
potash syndicate. Our AMBASSADOR a
Berlin was DIR, David Jayne Hill.
Under Secretary KnoXs direction, DR..
Hill made a determined stand for the
rights of American capital to invest
in foreign industries without suffer
ing discriminatory treatment.
The German government, scenting
danger to its monopoly if the Amer
lean scheme was carried out, pro-
ceeded to Illustrate it. 1t had to pass
laws which prohib bited foreigners
from mining and exporting German
potash. Secretary Knox lodged a Wig
orous diplomatic protest. American
public opinion was deeply stirred by
Germany's high handed action, and
tariff reprisals on German goods en-
tering this country.
Used Popular watchwords.
Count Bernstorff, German Ambassa-
dor at Washington, was then at the
zenith of his glory here. He con-
vinced the Taft administration and
Secretary Knox that Germany's action
was nothing but conservation of nat
Hral resources" That was a popular
theme in America, and Bernstorff sue
cessfully exploited it on the potash
issue. Frank s. Kellogg, now Secre-
tary of State. was trust busting"
about that time, too, so Count Bern
sterh utilized the argument that Ger
many was bent upon curbing cor
porate activities. The Germans. Bern
storff showed, had to- keep their pot
ash trust alderman, lest their
wealthy malcfactors' get out of
hand.
America eventually abandoned the
strong position she had taken. There
was no tariff war and the Germans