The New York herald., 1921-08-29
PINCHOT CRITICISES
FORD NITRATE OFFER
Proposal to Operate Muscle
Shoals Plant Too One
sided, He Declares.
VAST WATER POWER FREE
100 Year Lease Is Opposed as
Against Roosevelt Policy
Must Consider Public.

New York Herald Bureau.
Washington, ID. O., Aug. ~.
81 should be glad to see Mr.. Ford
make money. and plenty OF money. by
taking over the property of the people
as he proposes to do. But not such per-
petual and gigantic profits as his offer
would assure"
The foregoing CONVEYS in few words
the opinion Clifford Pinchot holds OF
the offer made last July by Henry Ford
to take over the Governments nitrate
plant at Muscle Shoals, Ala. and oper
ate It for 100 years, under q lease by
which he would make substantial profits
for himself and maintain the plant as 9
reserve property for the Government II
the event Of war at any time during the
lease. His own profits would be made
by the sale of fertilizer.
Mr.. Pinchot, who is president or the
National Conservation Association, in
discussing the project to-day. insisted
that the Ford proposal Is not clear in
what 1t offers to the farmer, but very
clear In what Il offers to Mr.. Ford, who
would receive "seven parts water power
In return for his one part fertilizer.
For the Ford offer. as Mr.. Pinchot sees
Il, provides indefinite possession by Mr..
Ford, with many hundred thousand
horsepower for nothing.
1.-THE first part of the offer" he said.
"is to lease the Wilson dam and dam
No. for 100 years, with indefinite re-
newals, provided the Government will
complete them and install machinery to
produce $4,000 horse power. Mr. Ford
offers to pay per cent. on the s2S,00O,-
600 which he estimates will be necessary
to complete this work. or 4-10 per cent
on s4S, ZOO. 900. afr. Fo-d's own estimate
Of the whole Government investment in
da ms. locks and power houses. Even IL
we add all other annual payments 9Th
so-called amortization payments AM
payments for the repair. maintenance
and operation Of dams gates and locks)
the total would be equivalent to interes
at the rate OF only clio per cent. Mr..
Ford offers also TO give the Government
500 horse power to operate the locks
please note that for the water power
Itself A,r. Ford would pay nothing and
that lie would be free from al taxes on
the property. The Ford offer Is like Of
fering a man Clio per cent. on the cost
OF his factory as rent. and then asking
"
fuel for the engines for nothing.
"There is no allowance for depreci-
alton and the Government would beyond
question have to pay the cost OF injury
TO the dams or locks from floods or other
causes.
"The second part OF the Ford offer Is
70 buy nitrate plant No. I. which cost
the Government In round numbers s13.
100000: nitrate plant No >, which cost
the Government in round numbers SI0,-
0oH 900. and other property. which brings
the toto, cost to $4,000. 900, and 70 pay
s5,00ocO1 for II al. The pronnrty FOR
which this offer is r1ado includes steam
ma cilinery TO produce 10000 horse
power, which alone is worth far more
than Mr. Ford's offer for the whole. In
addition, the Government Is to buy from,
the Alabama Power Company the land
upon which certain of the foregoing
structures were built and to turn tina
over to Mr.. Ford also.
"In return for the lease. FOR the pur-
chased property. and for the water
power without charge, Mr.. Ford offers.
IN addition to the payments mentioned
above, 70 DO three principal things !:
First. to maintain nitrate plant no.
ready to ba operated in time OF
anl I'll the event OF war TO turn It over
70 tie Government for that purpose.
Second. to operate nitrate plant No, :
10 approximate present capacity in tie
production Of nitrogen and other fe"tll-
izer compounds end in this business to
limit his net profit from the insaufac-
ture and sale OF fertilizer products to
per cent Third. the offer as written
suggests producing, but contains no
d irect proposal to produce fertilizer FOR
the benefit OF American farmers That
could, of course, be corrected in the final
contract, for ] have no doubt Mr.. Fori
desires 70 make fertilizer at tota!
ne. profit or S per cent. Nitrate plant
No. ?. however Is not adapted to MAX
ing fertilizer. but only cyanimid, one
or the several materials used for the
prod uction OF fertilizer. and not one OF
the best al that.
"rhe fact is that the Ford offer Is
not mainly fertilizer proposition II
IL seven parts water power TO ono part
fertilizer, even If the fertilizer part
should work out. This is the heart OF
the whole matter As q water power
proposition the Ford offer is In every
Roosevelt water power policy. which
after fifteen years OF struggle was
linally enacted into law last year.
"I do not believe that Mr.. Ford :
Offer should be summariiy rejected. !
a . believe that II should be changed ;
First, 70 make IL Mt the Roosevelt.
water power conservation policy. now
the law Of the land; second. 20 make 4
pay for the property OF the people some
thing approaching what that property Is
really worth. and. third. TO make what
It offers 70 tho farmers clear beyond
doubt.
II should be glad to SEQ Mr.. Forl
make money, and plenty Of money. out
or taking over the property OF the peo-
ple as he proposed to do. but not such
perpetual and gigantic profits IS his
offer would assure. 1t Is fair 10 con-
slider the public also. and TO remember
that all the annual payments Mr.. Ford
offers 70 make would amount 10 oniY
one-third OF the yearly taxation ncces-
sary to meet the interest charge Cat
the Liberty loan rate OF Al per cent?
an the Governments net investment In
the property he proposed 10 take over.
and that he would get the water power
for nothing"
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