The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1922-08-04
His Offer by Far the Best for
Control of Shoals, 1t Says.
He Would Combat the En-
N
croachment of Other Trusts.
HERALDS GIGANTIC TRADE WAR
Government Operation of Plant
4 Not Desired, Minority Says.
Ladd Makes Public Minority
: Opinion of Ag. Committee.


= Washington, Aug. 4.-Heralding a
gigantic trade war between Henry
fFord and the industrial trusts of
America. seven members of the senate
agriculture committee today recon-
.lnended absolute acceptance by the
senate of his. offer for development
of the governments 20O.000.000 nj
itrate and water power project at Mus
Gle Shoals. Ala. The report was the
second submitted by members of the
committee. a previous one having
urged government ownership
Il limiting frequently that word would
launch a trade war If he obtained
lease to the governments great water
power project. the report at one place
openly linked him in a battle for in
dustrial elimination with the Alumni
cnum company of America. 1t express
ly declared Ford would compete in
the manufacture of electric-furnace
products with such concerns as the
aluminium company of America"
RI Avoids Paralysis of Industry.
The report declared FOrd's develop
nent of the project might bring a
means to avoid future paralysis OF
american industry thru breakdown In
gthe fuel and transportation systems.
1t specifically declared such great
shydro-electric power such as Is FOUND
at Muscle Shoals is the only certain
from the present paralysis of Ameri-
can industry"
j. The report. written by Senator Ed
win L. Ladd, Republican, of North
Dakota, was signed by Ladd, Senator
Capper. Republican, Kansas. and
chairman of the senate agriculture
"bloc," and five Democrats; Senators
Smith of South Carolina; Ransden of
Louisiana; Harrison of Mississippi;
Heflin of Alabama, and Caraway of
Z Arkansas
Are Certain Objections.
Certain objections to the Ford Of
fer Seem apparent" the report said,
but we insist without fear of success
full contradiction that none of the OBJ
jections to the Ford offer can be rem
edied or solved by government owner
ship and Operation-by the govern
Snent going into the power business or
entering the uncharted and hazardous
Held of operating nitrate plants at
Muscle Shoals in the production of
heterogeneous and other commercial
fertilizers using electro chemical
processes. the commercial success OF
(which is yet controversial.
For congress to adopt such a poA-
icy when Henry Ford's offer makes it
unnecessary for the government to do
So it continued. would subject con-
gress TO the just condemnation and
ireproach of all sober-mfnded people"
a The belief was expressed that every
rmember OF the senate would agree
with the committee minority with ref
erence to the acceptance of Mr..
Ford's proposal when they consider
the present iuei and transportation
emergencies" in the light of develop
ament of such great fIydro-electric
power as is found at Muscle Shoals"
adding that it lis the only certain and
permanent relief in the future from
the present paralysis of American in
dustry."
Not Like Ship Subsidy.
Tho report called attention to
charges that acceptance of Mr.. Ford S
tender would give him a government
subsidy in the development of power
said:
TT has been claimed that the Ford
offer constitutes subsidy to Mr.t
Ford. If it is a subsidy. it is ontsuch
a subsidy as is proposed by the admin |
tstratiOn in the ship subsidy bill"
Il The report then cited a comparison !
Between the Ladd bill and that pro- !
posing federal relief for the metchant
marine, showing that the former
called for an expenditure of $4,000 |
600 while the latter required an ex-
,penditure of 100000.
r. In that connection, il was contend |
ed, one measure would take the gov
'ernment out of the shipping business |
5while~the other would take it out OF
the fertilizer and power business. 1t |
was also argued in that connection |
that the Ladd bill would cost the gov
-ernment approximately nothing" a
year, while the ship subsidy bill' |
would necessitate an annual expendi- |
ture of S41. 100000.
IF the Ford proposal is not to DO |
supported on the grounds of subsidy" |
the report asked. how can the Amer1-
can people support such subsidy 20 |
ship operators as is here proposed?" |
s Referring to the relationship |
Claimed between Muscle Shoals de-
yelopment and the fuel and Transport
tation emergencies. the report said:
mo electrified railway and no in
dustry served by water power can suf- |
fer suspension on account of a fuel |
supply, because hydro-electri power, |
both in its production and distribu- |
ton. is practically free of all labor |
troubles. Fuel and transportation are |
the big national problems which now
distress our people. Muscle Shoals, |
with the Ford offer accepted, may |
furnish an opportunity for the senate |
to discover how such fuel and trans |
pOrtation emergencies can be. at least |
in part. avoided in the future"