The Washington herald. [volume] (Washington, D.C.) 1906-1939, 1921-10-16
MUSCLE SHOALS AND CHEAP NTRATES
By Extending $3OOOO0O Be Repaid With Ires. Our Government
Can Make Itself Independent of Imported Fertilizer

for $,sooooo and the government lost all rights to
the plant. Whereas under the Ford offer, shouldwar
occur the government would be placed in possession
of completely equipped and operating plant for
turning out explosives. which would eliminate the
large purchase OF that commodity.
One has only to consider the extremely small
realized from the sales Of camp sites and other
stores appreciate that $5oooooo is about the
going rate for property such as this.
- On the other hand, with only 100000 tied up
the capital charge against the plant proper, the
cost of producing nitrate is lower than IL would be
il greater sum had to be safeguarded. Since Ford
offers to sell nitrates at per cent above production
costs this means that the farmer would have the
opportunity to buy fertilizer more cheaply OF course
the nitrates from the plant stands viii not
be more than a drop in the bucket for It can pro-
duce something like 10000 tons per year, and the
State OF Georgia alone over 100000 tons But
the plants could be enlarged the power was de-
veloped
In addition the Ford offer contemplates paying
the entire costs Of Dams and 3, with interest at
per cent on the money. so that whether Dam NO.
costs 100000 not, the entire cost would DC re-
paid to the government with interest
In all over a period of years, Ford would
pay the government $2I4s4oooo At the end OF 100
wears there would be going development OF $4,000
horsepower and the navigation in the river Tor so
miles would be improved at once, Tree OF eos' 10 inc
Country There would also be charge OF $4,000 OF
so per wear cut out which is now PAID Tor the opera
ton of canal locks The number of canal locks would
he cut from nine to two, making shipments much
faster In addition Mr.. Ford agrees to pay $4,000
each year for repairs and maintenance on the two
dams. E,4as
T%HE question of the Iooyear lease seems TO as
i turb many people who otherwise approve the
plan heartily But years IS not too long TO anow
the amortization Of the cost Of the dams the power
is going to waste now and ii would take many years to
build up an industrial community large enough TO- use
the entire amount ~
That means that milions more will have TO be
spent in additional factories, and people who invest
would want to be sure that they could spread their
amortization charges enough time to make ohat
amount relatively small in computing the overhead.
Also they wish to be sure Of their power.
As matters are now the government could sell
the plant for salvage which would bring little, any.
more than offered for it it stands In its present
FORM ii is useful As salvage torn apart. and dis
niantied $zsoosooo worth of work is thrown away.
Operation Of the plant by the government was re-
ected by the last Congress The maintenance Of the
plant in Standby" condition is expensive and inn
practical Machinery rusts, despite care Improve
ments in process will be made, through operation,
which will lower the and make the present equip
nlent in time obsolete This viii only occur through
discoveries which will be made when the plant is
operating. ~. A
The plant could be leased sold to other private
interests Every effort has been made to interest fer
tizer electric and other private interests in taking
over the development but they have been unsuccessful
Ford alone stands ready to operate
-Four highly beneficial results would be obtained
by accepting the Ford offer and getting the plant into
operation These are that the Tennessee River would
be made navigabie that abundance of cheap power
for manufacturing would soon be available, that
cheap supply Of fertilizer compounds would be sup
piled and that the government would have instantly
available, in time Of modern nitrate plant located
far enough inland to be reasonably safe from attack