The Birmingham age-herald., 1921-09-02
LOCAL COMP PAN|ES
 ARE REPRESENTED
 IN FIGHT ON FORD
BetWeen-the Line Argument Involves Alleged Injustice Government Competition
 Against Private Capital
ny HUGH W. RoBERTs Washington Bureau The AEe-Herald
 ROO na vidsnu RuiIbiuN

Washington Bureau The AEe-Herald 300 Davidson Building Washington, September 1.-(Spe- cial. "A brief prepared by some of the very large industrial com panies of the United States, con taining an argument against the operation of Muscle Shoals plants by the government, has just been put into the hands of the Secretary of War.
 The argument. its promoters hoI1 applies with equal force against the ] effort Of Henry Ford to acquire the Muscle Shoals properties under what | IS alleged to constitute govern ment subsidy. For Mir. Ford under the terms of his offer, would utilize the power of properties worth s1co.- | oe9,C00 entirely exempt of taxation. I federal and state. | The companies Issuing the brief 1 arc the Alabama By-Products | corporation, Birmingham, Cam 1 den Coke company. Newark; Cit-
 fzens' Gas company. Indianapolis;
 
 company, Aurora, Chattanooga { Coke and Gas company, Chatta- | nooRn, Donner Union Coke cor 1 poratfon. Buffalo; Domestic Coke
 corporation. FairmOnt; Gulf | states Steel company, Birming- | ham, Indiana Coke and Gas com 1 pany, Terre Hautc; Inland Steel
 company. Chicago; Lackawanna ! Steel company, Buffalo, La Belle ! sota By-PrOducts Coke company. 1 St. Paul, New England Fuel and | Transportation company. Boston; 1 Seabonrd By-Products Coke c0m- pany, Jersey City; St. Louis Coke and Chemical company, Chicago; | Hanna Furnace company, Cieve- land; koppers' company. Pitts burg; Milwaukee Coke and Gas company. Milwaukee; Toledo
 Furnace company, Toledo, Brier Hill Steel company. YounEstoyvn;
 Youngstown Sheet and Tube l company. .younEstossn, Wood l ward Iron company, Woodward, ! Aia.s and Zenith Furnace conl- pany. Duluth.
 | The "between the line" argument i of these companies involves the all | leged injustice of competition of the | government or of government sub
 
 plea, in other words, for contin- uation of competition without gov | ernment subvention. Strongest Argument 1 Of all the arguments that have been filed with the Secretary of War since he took under advsement the offer of Henry Ford. that of the Electrical World, heretofore referred | to in this correspondence, is said l p hau bod osf of af- feet.
 | As a summary of it's presentation, | the periodical prints figures which 1 indicate that the government, if it accepts the Ford offer. will, in leo years haze expended as a total loss s1,203.3 .3745S6. To reach such to- l tai, the Electrical World includes l interest charges on the money which 1 the government will invest.
 It's tabulation follows:
 Addition outlay for com | pleting dam No. and
 constructing dam No. 5s,0oo, ,oU6 Interest at 4 per cent for | 100 years ............. 295,boo,ooo 1 Total ....-....,,.1,....s2 s29l 500, ,O0o Less interest payments by | MT. Ford .............. lo9,alo,fie \ Net outlay in excess of l Ford Payments .,..... .s1221S4,5s2 Ford fails each year to meet governments in- terest requirements, i which deficit, com pounded at 4 per cent, 1 in 100 years equals s11o3,o27,e ,ess | Mir. Ford proposes to compound certain in- | terest payments which in 100 years will equal 4s,ooo,0oo Total net loss com pounded over 100
 years ..........,..s1 ,1o5, OPT ST: l To which should be added s104, 4,346,s97. cost
 to .g government for
 property turned over
 to Ford Cncluding
 s17,o0o.0o0 already spent on dam No. p l less s5,000,000 to be ] paid by Ford ....r.,, 9s,So4,e3i Total cost of Ford prop osition ..........s s1 .203,374,9S
 Weeks Invites Argument
 There has never been question but that the big industrial companies of the country would attempt to check mate the Ford offer. It is regarded las only natural that they should be concerned by such prospective com petition. Secretary Weeks does not hold in contempt the argument ot private capital On the other hand, he invites such argument and de- oh nnq