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aid of the German Government, will be compelled to buy their potash at prices equivalent to those that prevailed previous to the breaking up of the syndicate over two years ago. The only advantage that has been secured in one of a slight increase in the discount allowed certain large buyers on long-time contracts. The cost of the litigation involved in the controversy will amount to a large sum, as very prominent attorneys were identified with the matter from time to time. * * * The aid of the State Department was evoked last year in an endeavor to have the syndicate recognize the independent mine contracts, and at the time of the last tariff revision threats were made that as American commerce was being discriminated against, retaliation against Germany in the form of a maximum tariff should be put in force. The matter was eventually dropped by Washington.

File No. 611.627/458.

BUREAU OF TRADE RELATIONS,
DEPARTMENT OF STATE,

November 4, 1911. Referring to my memorandum of November 3, wherein I sought to show the amount of saving effected for the American buyers of potash through the settlement recently made with the German Syndicate and the independent German mines, I now desire to call attention to a statement made by Mr. Robert S. Bradley in a letter just received from him.

Mr. Bradley had evidently noted the published statements as they appeared in the Boston News Bureau and the Financial Bulletin of Philadelphia. He takes exceptions to the conclusions drawn with respect to the actual savings of the Americans through the terms of the recent settlement. He cites the case of the American Agricultural Chemical Co., which he says had paid out in penalty or supercontingent taxes $710,371 of the $3,500,000 so paid by the entire American interests. The A. A. C. company obtains a refund from the German Government to the amount of $568,157. From this refund a payment must be made to the Aschersleben (independent) mine for the cancellation of the A. A. C. company contract with it, and this payment, together with the expenses incident to the “fight " made by the A. A. C. company amounts in all to $340,000. Thus, so far as the A. A. C. company is concerned, it has left $228,157 as the net refund of the taxes. Having paid penalty taxes to the amount of $710,371 and obtained a refund, net, of only $228,157, Mr. Bradley reckons that the balance, being the sum of $482,214, represents the net amount of money that his company has had to pay out in consequence of the German potash law, and of course he is right in this calculation. This sum, $182,214, equals $12.54 per ton on the potash received by the A. A. C. company under its contract with the independent mine, which, added to the original contract price of $20 per ton, makes the potash for the period of one year subsequent to the passage of the law cost the A. A. C. company, net, $32.54 per ton, muriate basis. From the published statements above referred to and which apparently had been authorized by parties familiar with the settlement, I had reached the conclusion that $28.34 per ton represented the actual settlement price, muriate basis, for invoices since May 28, 1910. The Department has had no official statement and in preparing my memorandum I have had to depend upon the published statements that hare appeared, presumably emanating from reliable sources. According to Mr. Bradler's figures thee published statements have not been reliable. Instead of the independent mines receiving their settlement money from the supercontingent fund paid in by the Americans, 40 per cent of this fund was first deducted for the uses of the German Government and the German Syndicate, and out of the other 60 per cent refunded to the Americans the latter have had to pay the independent mines their price for the cancellation of the 1909 contracts.

The German Government or the German Syndicate seems to have worked along Bismarck's lines of “real politics" in putting through this settlement, if they have retained as their share of the rake-off 40 per cent of the $3,500,000 supercontingent tax paid in by the Americans. This 40 per cent amounts to $1,400,000, while the Americans get back $2,100,000. They are obliged to pay out again the greater part of this sum in order to obtain release from the mines with whom they made the low-priced contracts which the German potash law rendered untenable.

M. H. Davis.

PRESENTATION OF A STATUE OF GEN. VON STEUBEN TO THE GERMAN EMPEROR AND THE GERMAN PEOPLE BY THE UNITED STATES.

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The Secretary of State to the American Ambassador. No. 493.]

DEPARTMENT OF STATE,

Washington, November 23, 1910. SIR: I inclose a copy of an act of Congress, approved June 23, 1910, authorizing the execution, under direction of the Secretary of State and the Joint Committee on the Library, of a bronze replica of the statue of Gen. von Steuben (the erection of which in Washington had been previously authorized by Congress), for presentation to His Majesty the German Emperor and the German Nation, in recognition of the gift of the statue of Frederick the Great presented by the Emperor to the people of the United States.

Previous to the passage of this act the Department had been informally advised by the Imperial German ambassador at this capital that the passage of the act would be very agreeable to His Majesty the German Emperor provided only that the measure passed both Houses without giving rise to any criticism or disagreement. The act was so passed.

The Department is now about to contract with the artist of the von Steuben statue, Mr. Albert Jægers, for the execution of a replica in accordance with the provisions of the act of Congress. The act appropriates the sum of $5,000 for this purpose but does not provide any sum for the execution of a pedestal to support the statue. It appears evident to the Department that the sum is insufficient for that purpose and, in view of the fact that the statue of Frederick the Great, presented to the people of the United States by the German Emperor, was erected upon a pedestal provided by this Government out of the appropriation made by the sundry civil act approved Apr. 28, 1904, for the erection and dedication of the above-mentioned statue of Frederick the Great, it is presumed that the German Government would be willing to provide for the execution of the pedestal.

The Department will be gratified if you will ascertain the views of His Majesty the German Emperor on this point. You will also inquire where the German Government wishes the statue delivered, and as to the place it proposes for the erection of the replica.

The Department will at a later date furnish you with information as to the dimensions of the statue, which will enable the German Government to determine on the proper form of pedestal. . I am, etc.,'

For the Secretary.

ALVEY A. ADEE.

[Inclosure.) An Act for the erection of a replica of the statue of General Von Steuben.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the expenditure of the sum of five thousand dollars, or so much thereof as may be necessary, be, and the same is hereby, authorized to be made under the direction of the Secretary of State and the Joint Committee on the Library for the erection of a bronze replica of the statue of General Von Steuben authorized to be erected in Washington; said replica to be presented to His Majesty the German Emperor and the German Nation in recognition of the gift of the statue of Frederick the Great, presented by the Emperor to the people of the United States,

Approved, June 23, 1910.

File No. 862.413St4/22.

The Secretary of State to the American Ambassador.

[Telegram-Paraphrase.)

DEPARTMENT OF STATE,

Washington, May 6, 1911. Instructs him to ascertain whether the appointment of the Hon. Richard Bartholdt as the President's representative to present the Steuben statue to the Emperor and the German Nation is acceptable to the German Emperor.

ΚΝΟΣ. File No. 862.4138t4/24. The American Ambassador to the Secretary of State. [Telegram—Paraphrase.]

AMERICAN EMBASSY,

Berlin, May 30, 1911. The German Emperor is agreeable to the appointment of Hon. Richard Bartholdt as the special representative of the President to present the statue of Gen. Von Steuben.

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The Acting Secretary of State to the American Ambassador.

[Telegram-Paraphrase.]

DEPARTMENT OF STATE,

Washington, May 31, 1911. Ascertain whether the appointment of C. P. Wolfram in addition to Bartholdt as the President's representative is agreeable to the German Emperor.

HALE.

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The American Ambassador to the Secretary of State. No. 974.]

AMERICAN EMBASSY,

Berlin, June 13, 1911. Sir: With reference to my cable of May 30 and to previous correspondence, I have the honor to inform you that I have received to-day a note from the imperial acting secretary of state for foreign affairs in which he informs me that His Majesty the Emperor has now decided definitely upon the square in front of the City Palace at Potsdam as the place where the statue shall be erected. The acting secretary of state then requests me to inform him in due season of the date of the arrival of the bronze replica in Germany and of its transportation to Potsdam. I have, etc.,

David J. HILL File No. 862.413St4/32.

the imponor to i of May

(Telegram-Paraphrase.)

Berlin, June 20, 1911. Reports that September 2 is proposed by the Emperor as the date for the presentation of the statue of Gen. von Steuben; also that the appointment of C. P, Wolfram as special representative of the President is agreeable to the German Emperor.

HILL

File No. 862.413St4/59.

The German Emperor to the President.

(Telegram.]

Potsdam, September 2, 1911. The replica of the Steuben statue has just been unveiled. For my. self and on behalf of the German people I thank you most heartily for this beautiful present manifesting so happily the friendship between the German and the American nations.

WILLIAM, Imperator, Rex.

File No. 862.4135t4/59.
The President to the German Emperor.

(Telegram.]

THE WHITE HOUSE,

Washington, September 2, 1911. I cordially appreciate your courteous telegram of to-day's date announcing the unveiling of the replica of the Steuben statue and conveying your thanks and those of the German people for this present transmitted in virtue of the joint resolution of the Congress of the United States.

I shall take great satisfaction in communicating Your Majesty's telegram to the Congress of the United States at the opening of its next session in December next, as an evidence of the cordial relations which have ever subsisted between the United States and the German Empire.

WILLIAM H. TAFT.

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