Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-08-29
Editors Letter Box
Pinchot on Ford's Offer for U. S,
Property, Muscle Shoals

! Philadelphia. Pa. Aug 25. 1921.
Editor of kennebec Journal:
! The recent offer of Henry Ford
to take over Government property at
Muscle Shoals on the Tennessee river
i is so important that ! take the liberty
of laying certain essential facts be-
fore you.
: The first part Of the Ford offer is to
lease the Wilson Dam and Dam Num-
Der for 100 years. with indefinite re-
newals. provided the Government will
complete them and install machinery
to produce $4,000 horsepower. Mr..
Ford offers to pay 6 per cent on the
S2S,000.00o which he estimates will be
necessary to complete this work or
+! 3 40 per cent on s4s,000.000. Mr..
Ford's own estimate of the whole
Government investment in dams,
locks and power houses. Even if we
add all other annual payments (the
so-called amortization payments. and
payments for the repair. maintenance,
and operation of dams, gates and
locks). the total would be equivalent
TO interest at the rate of only 6-10
percent. Mr.. Ford offers also to
give the Government 900 horsepower
to operate the locks.
Please note that for the water
power itself Mr.. Ford would pay moth
ing, and that he would be free from
all: taxes on the property Other
lessees of water power rights from
the Government not only bear the to-
tai cost of building their own dams
and power houses and pay taxes on
them. but they also pay for the water
power in addition. The Ford offer
is like offering a man 6-10 per cent
on the cost of his factory as rent, and
, then asking him to throw in a coal
mine to supply fuel for the engines
for nothing.
There is no allowance for deprecia-
| ton, and the Government would be-
yond question have to pay the cost of
injury to the dams or locks from
foods or other causes. Moreover
there is nothing in the offer to indi.
cate that the Government, in order to
protect it's own property. would not
have to bear the expense Of replacing
enormously costly machinery when il
had been worn out in Mr.. Fords ser
vice.
The second part of the Ford offer is
to buy Nitrate Plant Number /, which
cost the Government in round num-
bers 1900 600. Nitrate Plant Num-
Der 2, which cost the Government in
round numbers $4,000, 900. and other
property which brings the total cost
to SS5,000,000. and to pay 5000, 600 for
it all. The property for which this
offer is made includes steam machin-
cry to produce 10000 horsepower,
which alone is worth far more than
aMr. Ford's offer for the whole. In ad-
dition, the Government is to buy from
the Alabama Power Company the land
upon which certain of the foregoing
structures were built and to turn that
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 men,
toned above. to do three principal
things.
First, ito maintain Nitrate Plant
Number ready to be operated in
time of war for the production of ex-
plosives." and in the event of war to
turn it over to the Government for
that purpose.
Second. ito operate Nitrate Plant
Number 2 to approximate present
capacity in the production of nitrogen
and other fertilizer compounds" and
in this business to limit his net proat