The New York herald., 1920-01-10
s62,000,000 OUTLAY
BY j. s. IN NITRATE
PLANT IS DEFENDED
F. S. Washburn Tells OF Doing
SS9,OOO,OOO of Work With
out Any Thought of Profit.

Frank Sherman Washburn, of Rye, A.,
T., president of the American Cyanamid
Company, testifying yesterday before
the Congressional Subcommittee on War
Expenditures in its inquiry into the
necessity for constructing the nitrogen
plant No. 2 at Muscle Shoals, Ala, at a
cost of $4,000, 600. said his company had
done $50, 900 600 worth of construction and
operation of explosives plants for the
government without any thought of
profit. He told William J. Graham, chair
man, at the hearing in the Custom
House. that he originally had Offered to
operate the plant for no compensation
during the war. The government, he
added, would not contract on that basis,
but made an agreement which called 1or
the payment of fee of S1,5o0,00o lie
added that he had received no part y.
that money and that when PAID ne wouio
have to return approximately elsHly-iNe
per cent of it as surtaX a..
'I did not undertake to operate tne
plant in question: said Mr.. Washpurn'
with any expectancy of getting money
ont of IL and l want to state furtner tid'
in my opinion no private corPor a'ion
could afford to operate that plant az
anywhere near it's full capacity Win Any
hope of doing it profitably. ,..a
He said he knew the plant ioca.no 80.
made it sbyor OF BENG q spve 90 th.t i'm.
for a speciM corporation, but IL that il'i'
preston was gained it was entlrely er'
roneous."
Submits Employees LIST
Mr.. Graham, after reading severa
; names of officers and employees OF the An
Nitrates Corporation, subsidiary OF ,n'
(,yanamid Company, who had been iiieil
bers of Mayor Mitcheps administrator
and whose employment causeu eel .aii
criticisms that the men had no eHpei
ability. said, "and the wonder OF IL
how thew were taken into a business
where all were supposed to be experts.
He read the names of John T. Fetherston
formerly Street Cleaning Commlsslohei
and Joseph Hamitt, formerly Director OF
the Bureau of Fire Prevention.
Mr.. Washburn said the corporation nae
been exceedingly fortunate IN optaihihe
those men, who had had consideraoie eA
ner;ence in.cornmunity work and the like.
"Didn't YOU know" asked Mr.. Graham
chat these men were former city EN-
ploves. and that it was at all times
question as to just what their capabihtie:
were?'
: Certainly we did," replied Mr.. Wash
burn. "These men, Will staate again. I'D.
r,-oved their efficiency time and time
again in building up and directing th'
phases of the activities of the Musse
Shoals Community and they contributed
largely to its success.
M Washburn added that he had no
known Mayor Mitchell. and that the em
i ployment of the men therefore was no
"a political matter.
Denies Getting Power Dividends.
Z In answer to a question whether he hae
anv interest in the Alabama Power Com
xnI
initial operation of plant NO. 20 Mr.
Washburn said he never had received
anv dividends He said the power contrac
with the Alabama company hao peer
made by the government. Mr.. Washburr
also said the plant could not be continued
in operation by the government withou
doing great injury to the whole fertilizer
industrv and the whole byproduct coke
oven industry, inasmuch as the pian
would would put on the market n ire
-nendous quantity of nitrogen withou
having to pay any taxes, interest on III
vestnnent or charges that private cor
roration must consider in fixing the cos
of its product
He gave the committee a mass OF infor
,.,. tion regarding the different processes
n.ed bv the Allies and Germany for pro-
1,,cipr nitrates for high explosive
sheIls He said the Mussell Shoaais pian
vas perhaps 1.-The most intricate ana uii
4icult war construction task nnuertahei
in this or any other country. to build IT, we
creaated an organization of 5000 persons
and assembled a war town on the Iennes'
sec River that had the fourth larsesl
,,onulation of the cities of Alabama we
started in the midst of the severest WIN
,or the section of the country mas ever
,,novn. In eight months and eisnt uay
r,,cr the first sod was turned we had tn'
,,I,nt in continuous operation. More thar
one-oiEhth of the high explosive sheiis ioi
,ho oxpected drive of 1919 we're TO DC lllleo
,,ith the product of this plant.
The pant is not operating at present.
Colonel jay T.. 1Ioffer. retired, formerl:
-, The Ordnance Department. testiiied az
80 the great shortage of nitrates wner
,,o I-nited states entered the war and tina,
,here was fear that the submarines ano
c;crman propaganda in Chile would seri'
,,,ejy interfere with the remaining supply
nc said il the war had continued unit
se,a this country would have been shor'
:, coo 600 hounds of high explosives 9
.,ontb. In order to meet the shortage \
ne necessary to double the capacity o.
.,ant 30. 2. and two plants were planned
80 AZ cincinnati, Ohio. and one al Ioieoo