The New York herald., 1922-06-18

FOES OF FORD READY
FOR SHOALS LINEUP
Opponents of Mckenzie Bill
Say Terms Are UnsOund
Financially.
UNFAIR TO GOVERNMENT
Declare L. S. Would Lose Vast
Sums as Well as Valuable
Rights.
UNFAIR TO GOVERNMENT
pecial Dispatch to THE New YORK HERALD.

New York Herald Bureau.
! Washington, ID. C., June II.
Henry Fords scheme for taking over
the Governments s106,o0o.000 war time
nitrate and water power projects at
/ Muscle Shoals Ala, will be fought des-
perately by its opponents in the House.
who already are lining up their forces
against the bill introduced by Repre-
sentative Mckenzie Ull). acting chair
man of the Military Affairs Committee.
The opponents of the bill declare the
program proposed by Mr.. Ford is un-
sound financially and the Government
would be losing vast sums of money, as
well as valuable rights, If the Detroit
automobile manufacturer should be\ al
lowed to go ahead on the basis he out
lined For the most part the opposition
to date is from nine Republican MEM
bers of the Military Affairs Committee,
who submitted a minority report in OPP
position to the bill brought in by Mr..
I Mckenzie -
The vote in committee stood IL to 9.
six Republicans favoring the measure,
with six Democrats and nine Republic
cans opposing 1t. The vote of the COM
mittee. according to reliable estimates,
reflects sentiment in general in the
| House, and it has served to spur on the
| opponents OF the bill.
Gorgas Plant at Issue.
In a general way the opposition of the
| bill centers around a set of minority
I views submitted by two members Of the
Military Affairs Committee. Representa-
| tives Parker On j. and rockingham
! (Mass.). They are making a strong
! point of the fact that the bill brought
! in by Representative Mckenzie. accept
! ing the Ford offer with notifications,
will not meet Mr.. Fords approval be-
cause it denies to him the Government s
interest in the Gorgas steam plant on
the Warrior River. which he declares he
must have to make operation successful.
In arguing against the acceptance OF
the Ford offer. Mr.. Parker and Mr.
Frothingham declare they cannot
! agree that over 800, 900 be given to
! Henry Ford and his company, with the
! control of the greatest source of power
in the East, without proper restrictions
as to the distribution of that power
u to the public, with Inadequate returns
to the Government and without proper
security that this return will be made y
Many flaws are picked with the pro-
posal that two dams be built or COM
pleted at Government expense and
leased to the Ford company for 100
/ wears and that the two nitrate plants
should go along with them.
would Lease Dams.
The opponents of the bill declare the
dams should be leased under the water
power act. whereby the lessee pays for
their construction, and obtains lease
for fifty years. at the same time being
bound by provisions to use the power
for the benefit of the community.
Each of the two dams according to
the opposition. will cost the Govern
ment s25, 100000. The Wilson Dam,
known as No. 2. already has cost &c.
600 900. and probably will cost s25,0Oo0O9
more. Interest alone. at ner cent. on
the Wilson Dam will be s7500,Oo0 before
, Mr.. Ford pays any interest. the oppo-
nents declare. The Government then,
when the interest payments from Mr..
, Ford begin. six years after the COM
pletion of the dam, will be receiving
100000 a year. 1t is figured. then, that
i'm the end the Government viii. be pay
ing oat for the benefit of Mr.. Ford.
: which is not returned, a total of $6.300,-
, 000
Considerable objection is raised to the
fact the Government is to assume re-
: sponsbility of maintaing the dam for
100 years. and if it is washed out the
Government must restore 1t at its own
expense The whole proposition is held
to be departure from the policy OF
the American water power legislation.
! by which the lessee is to build and
maintain the developments.
Sum Called Inadeauate.
"The sum of $4,000. 900, which he
pays for this property In five annual
instalments, is grossly Inadequate" Mr..
| % Mr. ErnthinQbar m daC1nr
"The cost was $50, 200, 900 and the prop
erty Is now worth $4,000, 900 10 S11 ,000,.
600 to scrap, and the ground is essential
to the use of the dams by the United
States when the leases come to an end.
If sold the consideration should be a.
least $25.00O,00O, of which the steam
plant is worth probably s10.000,000.
THE fertilizer agreement Is n good
and proper thing. But whether the
company can make fertilizer at half
price or make 1t at all at a profit (Mr.
Ford's representatives state distinctly
that the company will not make II
! unless they can do so at a profiD this
fertilizer question is the bargain counter
in this proposal. but very small part
of it. which should not prevent our as
suring TO the Government proper terms
and proper full security"
. In making objection to the Mckenzie
bill its opponents declared:
: 1--WE are of the opinion that this bill
should not pass in its present form or
: without notifications. as stated, and
: that il Mr.. Ford will not accept those
notifications the Secretary OF War
shoull be authorized to lease the dams
and nitrate plants. including the quarry,
separately or together, on such terms as
will secure the completion of the dams
the preservation of the nitrate plants
and their availability to the Govern
ment IN case OF emergency. and that the
Secretary should likewise be authorized
to settle the fair value of the Gorgas
plant and convey the same to the Ala
3 bama Power Company. and that said
! value may be settled by arbitration AS
provided in their contract or in sup
Elementary contract to be executed by
the Secretary of War"
HOLLAND COLLECTING
cTnCK nE TORpEDOEC