The Birmingham age-herald., 1922-08-05
MINOR
MINOR
 AShs 1O.. WgE
 0F FORD PROPOSAL ?
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 Ford's propoa when lhey onsider the present 9ei and traHsHortatlon emergencies" hl drht Of 'dc- velopment of sH1H ey 5 dfl elec- tric power as fqblt Muscle Shoals" adding tEt lis th6 nly certain and perm fsI.ef h. he future from the D selt aafglysis of American industry.
 The report called attention ts charges that aceeptance 1l Ar. Eord's render would give hi0 a. eseera7l at subsidy in the deeloLnen1 of power and the manufacture of fertilizer and said: Tt has been claimed that the Ford offer constitutes a subsidy to MT. Ford. If 1t is a subsidy, it is not such a subsidy as is proposed by the administration in the ship subsidy bill"
 The report then cited a comparison between the Ladd bill and that pro- posing federal relief for the mer- chant marine, showing that the form CT called for an expenditure of $42.- 0O0,000 while the latter required an expenditure of s125, 10000 600
 In that connection. it was con- tended, one measure would tale the government out of the shipping busi-
 
 out of the fertilizer and power business. It was also argued in that connection that the Ladd bill would cost the government approximately nothing" a, year, while the ship subsidy hill" would necess.tate an annual expenditure of $41. 100000.
 Ship Subsidy
 "If the Ford proposal is not to be supported on the grounds of sub sidy," the report asked. how can the American people support ruch a subsidy to ship operators as is here proposed?"
 Referring to the relationship claimed between Muscle Shoals de- velopment and the fuel and .rans- portation emergencies, the report said:
 NO electrified railway .and no industry served by water power can suffer suspension on account of a fuel supply, because hydroelectric power, both in it's production and distribution, is practically free of all labor troubles. Fuel and trans portation are the big national prob lems which now distress our people Muscle Shoals, with the Ford offer accepted may furnish an oppor- luDlty TOT lflt S1cnAlt to Qlg cover how such fuel and transportation emergencies can be. at least in part. avoided in the future.'
 The report compared in detail the Ladd and Norris bills pending in the Senate. The Ford offer as rep resented by the Ladd bill, the port said, takes the government ut of the fertilizer and power business" While the Nebraska members bill "set the government up in the fer tllizer and power business"
 The Norris proposal requires di- rect appropriation by Congress of s64,O0O,00O. 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." 1t was said. On the other hand, the report argued Muscle Shoals could be developed by Mr. Ford. under the Ladd bill. by government bond is- sue, if desired, "as the interest and sinking fund payments made by Mir. Ford will meet interest on such bonds and retire them at the end of lease period, excepts during the short construction and power oad- ing period"
 ENen those or 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 gravest danger of heavy losses if the gov ernment undertakes to work out the fertilizer problem there. No advo- cate of government ownership and operation can discount the fact that the Muscle Shoals case Is not q good one to select In testing out the policy of government ownership operation. The dangers and t'e diff ffculties, many of them specialized and technical. involving problems in the field of Commercial chem istryd warn us to be conservative and prudent with the peoples money at Muscle Shoals"
 An agricultural benefit to the country by development of the shoals properties by Mir Ford, the report asserted. will include large scale production of fertilizers pro- duced under the most favorable manufacturing conditions. main talned abreast of progress in an art that is developing rapidly, and which will reduce the cost of fer tilizer."
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