Evening Republican, Volume 15, Number 24, Rensselaer, Jasper County, 28 January 1911 — AMERICAN FARMERS USED AS CATSPAWS [ARTICLE]

AMERICAN FARMERS USED AS CATSPAWS

Shrewd Plan of German Potash; trust to Pull Its Chestnuts Out of the Fire.

How American Farming Interests Are Affected In the Contro- , versy Between Washington and Berlin.

Washington, Jan. 28. Foreign attempts to influence American legislation have often been alleged, but never proved beyond reasonable doubt until now. During the past week copies of circular letters to farmers of the United States have been reeeived In Washington and called to the attention of congress. These seemed to show the existence of a concerted plan on the part of German potash interests to influence our legislators against the American companies that complain of discrimination against them by the new German potash law, alined directly at them. These letters are frankly signed by the German Kali works and are addressed to farmers generally in the United States asking them to write to their congressmen and urge upon them to Bupport the German contentions against the Americans. Lest the farmer should make a mistake and support the contentions of his own country a copy of the letter that he should send to his congressman is Inclosed, typewritten 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 to attempt to bring Germany to terms by applying the maximum tariff as provided by the Payne-Aldrich bill for such a contingency. Trust Caught Napping.

The simple facts in the case are that in July, 1909, a number of American fertilizer manufacturers purchased n very large tonrmee of potash salts or use in American fertilizers from independent potash mines in Germany. These contracts are made at prices considerably under those which had ruled up to that date under the domination of the German potash syndicate. The saving to Americans amounted in the aggregate to about, $4,000,000 per year.

No sooner had it become known that the German trust had been caught napping 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 so government action was threatened that would more than offset the advantages gained by the Americans. .These threats were carried into effect by a law introduced into the bundesrath in December, 1909. This was used by the German syndicate as a weapon In an attempt to coerce the American buyers into a settlement whereby the syndicate prices could not only be re-established hut'advanced In the United States. At the protest of the United States department of state this law* was withdrawn by Germany, and immediately thereafter the commercial treaty between the two countries was consummated, whereby Germany was granted the minimum American tariff. Quick Reprisal 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 a penalty tax for such overproduction equivalent to $22 per ton on muriate of potash. The price of this article stated in the American contracts is but 315 per ton at the mines. When this law was p« s sed the German government had the American contracts in its possession and knew that this penalty tax would 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 contracts the law was aimed specifically and exclusively at American interests and in consequence constitutes a clear discrimination against the United States. An effort has been made to undersell 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 a oat re fusal on the part of the Americais)contract holders to be undersold In their own market, and they have consequently 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 sls per ton at the mines plus $5 per ton transportation to the United States and the arbitrarily assessed tax of 322 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 336 per ton, or about 36 per ton less than it actually costs the American buyers. This Btand of the American buyers makes it impossible ao long as they maintain their position, for the German syndicate to create a monopoly in this country aul thus to fix any price that it desires.

"I have been somewhat costive, but Doan’s Regulets gave Just the results desired. They act mildly and regulate the bowels perfectly/'—George B. Krause, 306 Walnut Are., Altoona, Fa.

Prompt service In furnishing sa’e bills, at The Republican offloe.