The Birmingham age-herald., 1921-08-29

purchased property and for the water power without charge, Mir Ford of fers in addition to the payments mentioned above to do three princi- pal things:
 First Ito maintain nitrate plant No. ? ready to be operated in time of war for the production of explo- sives,' and in the event of war to turn it over to the government for that purpose.
 Second. "t6 operate nitrate plant No. to approximate present capcc-
 ty in the production of nitrogen and ether fertilizer compounds,7 and in this business to limit his net profit from the manufacture and sale of fertilizer products to- 8 per cent
 Third, the offer as written suggests production. but contains no direct proposal to produce fertilizer for the benefit of American farmers. That could, of course. be corrected in the final contract, for I have no doubt that MT. Ford desires to make fertil izer at total net profit of per cent. Nitrate plant No. 2. however, is not adapted to making fertilizer, but only cyanimd, one of several materials used for the production or IeTllllZtT, anu Hol OuC OL lhO ptoN at that
 The fact Is that the Ford offer is not mainly fertilizer proposition. It is seven parts water power to one part fertilizer, even if the fertilizer part should work out. For, if nitrate plant No. 2 were to be permanently employed in the manufacture of fer tilizer it would consume but l00,0 ,000 horse power out of the S50,000 install lation. This is the heart of the whole matter.
 As a water power proposition, the Ford offer is in every important point directly contrary to the Roose- welt water power policy. which after 15 years of struggle was finally en- acted into law last year
 The Roosevelt policy provides that all water power leases shall be lm- ited to 50 years. The Ford offer asks for 100 years with indefinite re- newals.
 The Roosevelt policy provides for return of the government works at the end of 50 years. The Ford offer provides for indefinite private pos session of the government works.
 The Roosevelt policy provides for regulation of the price to the power consumer. The Ford offer, so far as the United States is concerned, pro- vides no check on what the power consumer must pay.
 The Roosevelt policy provides that public water power taken for profit shall make a return to the public. The Ford offer asks for many hum dred thousand horse power for noth- ing.
 The amount of power MT. Ford could develop, under his offer, is greater by half than all that is now being developed at Niagara Falls. If MT. Ford were to pay for it at the rates charged by the government to other companies that build their own works, as MT. Ford would not, it would cost him about S150, 0,00O year
 Beyond question, nitrate plant No. 2 ought to be maintained in condi- ton for producing explosives in case of war. Most certainly it ought to be used for making fertilizer for American farmers The wisdom of developing the water power on the Tennessee and it's tributaries Is be- can be done with fairness to the pub lie.
 I do not believe that MT. Ford's offer should be summarily rejected. I do believe that it should be changed--
 First to. make it fit the Roosevelt conservation policy, now the law of the land.
 Second, to make it pay for the property of the people something ap- preaching what that property is really worth.
 Third. to make what it offers to the farmers clear beyond doubt.
 It is said that certain Wall street magnates who hate MT. Ford are anxious that his offer should be re- jected. What these men think about MT. Ford and his offer Is surely no reason for giving his public prop erty of enormous value for consid- eration wholly inadequate and on terms utterly unfair to the public.
 I should be glad to see MT. Ford make money, and plenty of money. out of taking over the property of the people as he proposed to do, but not such perpetual and gigantic profits as his offer would assure. It is fair to consider the public also. and to remember that all the annual payments MT. Ford offers to make would amount to only one-third of the yearly taxation necessary to meet tke interest charge Cat the Liberty Loan rate of A per cent) on the governments net investment in the property he proposed to take over, and that he would get the water power for nothing. Sincerely yours, A CLIFFORD PINCHOT. \r1t. Ia ,7 o1,,l,;o Do AnouSt