The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1922-08-04

Great Danger of Losses-Thinks Gov
eminent Would Lose More by Refusal
Than by Giving 1OO-Year Lease.
WASHINGTON, Aug. 4 (Associated
Press .-Acceptanc of Henry Ford's
offer for purchase and lease of the gov
ernment's vast nitrate and water power
projects at Muscle Shoals, Ala, was
urged by Republican and Democratic
senator's comprising a majority of the
senate agricultural committee in report
submitted today to the senate. Strong
protest was entered by the senator's
against the acceptance of the government
ownership and operation plan proposed
by Senator Norris of Nebraska, the COM
mittee's chairman.
The report was presented by Senator
Ladd, Republican, North Dakota, in be-
half of the Ford proponents on the com
mittee whose signatures were attached.
1t estimated that the government had
lost S3.O00.000 at Muscle Shoals since the
armistice. by failure to develop and oper-
ate the project. and declared the quickest
way to stop these losses is to accept
Henry Ford's offer for the purchase and
properties
Certain objections to the Ford offer
seem apparent the report said, but we
insist without fear of successful contra
dictiOn that none of the objections to the
Ford offer can be remedied or solved by
government ownership and Operatlon-by
the government going into the power
business or entering the uncharted and
hazardous field of operating nitrate
plants at Muscle Shoals in the production
of heterogeneous and other commercial fer
tilizers using electro chemical processes,
the commercial success of which is yet
controversial.
For congress to adopt such policy
when Henry Ford's offer makes it unnec-
essary for the government to do so, it
continued, would subject congress to the
just condemnation and reproach of all
sober minded people
Would Help Fuel Problem.
The belief was expressed that every
member of the senate would agree with
the committe minority with reference to
the acceptance of Mr. Ford's proposal
when they consider the present fuel and
transportation emergencies" in the light
of development of such great hydro
electric power as is found at Muscle
Shoals" adding that it lis the only GER
tain and permanent relief in the future
from the present paralysis of American
Referring to the relationship claimed
between Muscle Shoals development and
the fuel and transportation emergencies,
the report said:
mo electrified railway and no indus
try served by water power can suffer
suspension on account of fuel supply.
because hydroelectric power. both in its
production and distribution, is prac-
tically free of all labor troubles. Fuel
and transportation are the big national
problems which now distress our people.
Muscle Shoals, with the Ford offer ac-
cepted, may furnish an opportunity for
the senate to discover how such fuel and
transportation emergencies can be, at
least in part, avoided in the future
Compares Two Bills.
The report compared in detail the Ladd
and Norris bills pending in the senate
The Ford offer as represented by the
Iadd bill, the report said, takes the
government out of the fertilizer and
power business while the Nebraska
members bill set the government up in
the fertilizer and power business"
The Norris proposal requires direct ap-
preparation by congress of S64, 100000
without including any estimate for the
proposed dams in the upper Tennessee
river, with no guaranteed return of
either the principal or interest on same,
it was said. On the other hand. the re-
veloped by Mr.. Ford under the Ladd bill
by q government bond issue, if desired
''as the interest and sinking fund pay
ments made by Mr.. Ford will meet inter
est on such bonds and retire them at the
end of lease period except during the
short construction and power loading
period"
Even those of us who are in favor of
government ownership and operation,
said the report, must concede that the
Muscle Shoals case is one fraught with
the grayest danger of heavy losses if the
government undertakes to work out the
fertilizer problem there No advocate of
government ownership and operation can
discount the fact that the Muscle Shoals
case is not a good one to select in test
ing out the policy of government owner
ship and operation. The dangers and the
difficulties, many of them specialized and
technical, involving problems in the field
of commercial chemistry warn lis to he