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United States Department of State / Papers relating to the foreign relations of the United States, 1926
(1926)

Germany,   pp. 156-213 PDF (21.1 MB)


Page 208

FOREIGN RELATIONS, 1926, VOLUME II
I notice in the prospectus particulars that there occur the follow-
ing expressions:
"The Potash Syndicate was organized as a 'legal entity' under a
law of the Reich."
"The members of the Syndicate, producers and manufacturers, are
obliged to place all their products at the disposal of the Syndicate
for sale. The law also requires that all imports of potash and
potash products must be handled by the Potash Syndicate."
"The German Potash Syndicate has made an agreement with the
French or anization for the Alsatian potash mines, which agree-
ment has been signed by the French State. This agreement re-
serves for the German Potash Syndicate the exclusive supplying
of the German market, and as far as Alsace is concerned, the ex-
clusive supplying of the French market, and provides for the division
of the whole world into sales districts."
"Besides the Potash Syndicate, the Reich Potash Council has certain
powers in the management of the potash industry."
"'The Reich Potash Council is a legally constituted body of offi-
cials. . . . It determines the price of potash in Germany. . . . The
resolutions of the Reich Potash Council can, of course, be repealed
by the Ministry of Labour for the Reich, should there be a danger
that they would imperil the prosperity of the country."
From all the above it is obvious that this is a governmental
monopoly of the most vicious order, and that the German Govern-
ment takes the precaution to maintain public-control of the prices
at which it may sell its products in Germany and apparently gives it
full liberty to milk the rest of the world.
Yours faithfully,
HERBERT HoovER
862.51 D 481/1
The Secretary of State to Lee, Higginson & Company
WASHINGTON, November 30, 1925.
SIRS: I beg to refer to your letters of November 5 and November
25, 1925,41 concerning your interest in a proposed loan to the German
Potash Syndicate, of which it is proposed to issue $26,000,000 at the
present time in the United States and additional amounts, up to a
total of $40,000,000 and 22,000,000, in Great Britain, Holland, Sweden
and Switzerland.
The Department notes the following statements in the draft pros-
pectus which accompanied your letter of November 5, 1925:
"The Potash Syndicate was organized as a 'legal entity' under a
law of the Reich..
"The members of the Syndicate (producers and manufacturers)
are obliged to place all their products at the disposal of the Syndi-
cate for sale. . .
'Neither printed.
208


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