Evening star., 1925-03-22
NEW POTASH TRUST
FORMED IN EUROPE
France and Germany Unite
to Control Trade-U. S.
Is Chief Buyer.

OficlaI information has rea achsf
Washington indicating that French
and German potash interests have en-
tered into an agreement as to both
| markets and price levels.
While details have not been dis
closed, it was learned yesterday that.
in effect, the former exclusively Ger
| man business has become a joint
French-German enterprise through
this commercial alliance. The official
reports are understood to draw a.
clear picture of the arrangement be-
| tween the French and German syndi-
| Gates. now sharing possession OF
practically all of the worlds potash
beds, although 1t is doubtful that the
Washington Government has as vet
come into possession Of the text or
even paraphrase of the understand
| ing.
There is no question that officials
abroad who have looked into the mat
ter are convinced that the pact has
been signed and that the two syudi-
, Gates are preparing to share the pro-
ceeds OF maintained price levels and
non conflicting markets.
Hoover Is silent.
The potash trade has been under
survey by the Department OF Conn
merce for many months as one Of sew
eral studies undertaken under the $500
600 special fund voted Secretary Hoover
by Congress 10 examine the status OF
various industries which produce es-
sential raw cOmodities, and where
discrimination against American users
either in price or marketing arrange
ments might exist MIR. Hoover re-
ferred to the rumored potash agree
ment before congressional committees.
Pending completion of its study, how
ever. no statement will be made at
the Commerce Department as 10 the
contents Of its latest advices from
Europe in that connection.
The old German potash operators,
known as the Kali Sindikat, was
sore point with American customers
before the war. Efforts to ohta .H
price abatements occupied both pr
vate commercial envoys in Berlin and
the American EN- bassy, which re-
peatedIy sought 10 exert diplomat"
influence to that end. Detention ut
ships already loaded in German har-
bors when war was declared and fnr
which American buyers had already
made payment precipitated Ions
diplomatic correspondence with both
Germany and the allied nations hefoI-
the United States entered the strugG tr.
United States Large Buyer.
In 1914 the United States took 90
900 tons of potash in its various forms
from Germany at d valuation of $40
100000. The 1924 figures We're 63S.-
900 tons at S10,440,Ooo, which Illus
trates rising prices. During the war
years the flow fell off to a low point
of 469 tons in 1918, but bounded up
again in 1920 to a new high level
The figures that year were S29 0bn
| tons at s34 .04S,000, illustrating the
high price conditions that prevailed
for some time after the war.
The French syndicate entered the
field when a portion of the great
potash beds went to France with the
reacQuisition of Alsace-Lorraine. It
was uncertain for time after the
war whether the result would be
competitive industry with French
producers pitted against the German,
with a possible price reduction 70
American and other potash con
sumers. The agreement between the
two syndicates now. however. Is be
lieved by officials 10 preclude that
| outcome.
Helps Europe; Hurts L. 9.
Aside from its direct comm Arcial
| significa nee, the potash situation is
| regarded by some Washington Off
| cials as indicating an increa sing de-
! gree OF cooperation between French
and German industrial interests
| There have been suggestions of other
| commercial or industrial combina-
| tions between the two recently, pos
| sibly indicati of the efforts of bust
ness groups in both countries TO heal
| the breach left by the war through
the agency of remunerative trade ar
rangements. Strong advocates of that
policy exist in both French and Ger
| man industrial circles. although they
have encountered obstacles whenever
| matters involved were thrown into
| political debate that revived and
| stimulated war hatreds
To what extent the tendency toward
commercial and industrial rapproche-
ment between the chief antagonists in
| the war has already worked toward
success of the Dawes plan for eco
nomic restoration in Europe is a $ yet
| a matter of conjecture 1t is regarded
| as hopeful sign, however. although
| the trade understanding involved
may, it is said, prove troublesome in
future to American commercial en-
| terprises.
Another aspect of the potash agree
ment lies in the fact that American
payments for German potash have
been under discussion abroad as a
possible source of exchange in set
tlement of American claims against
| Germany without involving with
drawal of gold marks from that
country.
There have been no recent develop
| ments in that discussion, so far as
| known, but the idea has been ad-
vanced that the Washington Gov
ernment might charge off payments
due from Germany against shipments
of potash to American consumers, re-
| ceiving in return direct payments
| from the American buyers with which
| to settle with American claimants
| against Germany. The German gov
| ernmen under the plan, would max .
J its own settlem ents with German pot
ash interests, thus avoiding an actual
I transfer of gold aCroSs the Atlantir