New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1921-09-04
i. Y. Merchants
DenounceFord
Nitrate Offer
proposal to Acquire Muscle
Shoals Plant Is Said to
Entail a Government
Loss of $I64,OOO 900
Held Subsidy in Effect


Tae Tribnne's Washington Bareaa
v4sHINGTON, Sept. 3.--An exhaust
:. .nslvsis of the offer of Henry Ford
..ks over the Muscle Shoals nitrate
,,srer.y from the government and
s;sayousiy protesting against the ac-
enhance Of the Detroit msgnate's pro-
...al was laid before Secretary of War
ussks to-day by F. B. Deberard and A.
Travis, representing the Merchants
,.saeiation OF New York City. The pro-
.n.t Mr.. Weeks said, would be given
consideration By the War Department.
following the presentation soon to
s.eretarv Weeks of some figures now
ss;ne prepared by Major General Lam
s;rg Beach, chief of engineers of the
amy. on the Muscle Shoals plant, an
aviation is expected to be sent to Mr..
vord 20 come to Washington for a con-
fsvence on his proposal. The data being
rrspared by General Beach is under
s.ood to be a counter proposal which
rijl he made to Mr.. Ford. whose origi-
nal Offer, Secretary Weeks has said.
wouid have TO be materially modified
c,ined to accept it
The protest of the New York Mer-
.bants' Association asserts that accept
s5es Of Ford's offer would entail upon
the government loss Of 10000, 900
ii 100 years.
Ford7s Offer Dissected
II points cut that Mr. Ford offers to
,urehase for So, 100000 the government
citrate plant. which has been completed
at an outlay of SS7,365,135, and de-
flares the Detroit manufacturer pro-
poses to lease the partly completed
bydro-eiectric power plant for 100
YEARS at rental of S1,S00,000 year
snd sinking fund payments to amortize
$4,000. 900 at the end of the century.
aThs government has already ex-
pended $1,000, geo on the hydro-elec-
tr;c ulant.n the Merchants Association's
ANALYSIS said, land Mr.. Ford estimates
that IN additional outlay of $4,000, 900
will be required to complete it. His
annual rental is per cent upon this
s2S0Oo,o90. His sinking fund payment
is based upon the same estimate, his
total Of $4,000, 900 to be amortized
being arrived at by adding the ST.
100000 already spent to the $4,000, 900
additional expenditure which he says
will be necessary.
sThe analysis to Secretary Wells
shows that an additional outlay of
s66,0oo,oo0, instead of s25 900, 900, will
be required, making the total expendi-
ture s77,000.0o0 instead of $45,000,00O
Mr.. Ford's offer for the hydro
electric plant, therefore, would entail
upon the government an outright cap
ital loss Of $50, 900 900.
Moreover, during the life of the
contract the government would have to
pay s3oo00a,0o0 in interest, Of which
M NJ Ford would assume. only $685.
Predicts Losses Will Be Doubled
M. Ford's proposal provides for the
mobilization of but $45, 100000 as
against the 100000 new investment
vqaired and the 100000 invest
nsnt already made, thus leaving the
gererEnent to stand an ultimate loss
Of sl5.000,000 of the new capital re-
quirsd, in addition to the loss Of the
$1,000, 900 already invested, or a tota
capital loss of S32,000,000 The new in.
vestment will not recoup past losses
but will nearly double them
1T is the firm conviction of thi!
association, reached after long and in
innate study Of the subject" the pro
test continues, shat under no cir
eumstances is the government JUST
ned in invading the industrial field
either directly or by means of sub
sdy to single interest, under con