Evening star., 1922-07-20
FORD PLAN RAPED
IN NORRIS REPORT
Senate Agricultural Commit
tee Urges Nebraskan's
Proposal.
STRONG LANGUAGE USED
Offer of Motor Builder Declared
Unreasonable in Asking Much
and Promising Nothing.
STRONG LANGUAGE USED

man Norris Of the Senate agricultural
committee Henrys Ford's offer for
the purchase and lease cf the govern
ment's war-initiated p ects at Mus
Gle Shoals, Ala, is condemned in un-
usually strong language. while the
Nebraska senator's bill. proposing de-
velopment of the properties under
government owned and controlled
corporation, is described as "the most
wonderful plan that has ever been
proposed in the history of the coun-
try.
On the question of the Ford bid. the
report says. Senators Page, McNarY.
Keyes. Gooding. Norbeck. Hdrreld ana
Mckinley, republicans, and kendrick,
/ democrat. concurred with the cnalr-
man. With reference to the govern.
ment ownership proposal. the report
gives the names of five senators. Nor
ris, McNary. Gooding, Norbeck and
Mckinley. as favoring its passage 6y
the Senate for the solution OF the
Muscle Shoals problem.
| Because of this lineup of the com.
mitteemen, the report is characterizeo
as minority opinion insofar as II
expresses approval of the government
ownership bill. but is presented as
a majority opinion insofar as 1t deals
with the rejection by the committee
Of all proposals for Muscle Shoals de-
velopment.
The Ford offer is dealt with in un-
sparing terms. Its adoption. the re-
port says. would put "the government
j of the United States into business
with a vengeance" adding that tnose
who ask Congress to accept the Foro
offer ask US. In effect. to tease .n,s
property to this corporation without
any real consideration. and then In
| addition thereto guarantee to repair
and keep and maintain it In good con-
dition for period of one hundred
years.
Hold Bid Nisinterpreted.
| 1T is difficult to harmonize our
| idea of Mr.. Ford's fairness. the re-
port continues. with his silence on
this subject. when his name Is SO
often used in exaggeration and mis-
| representation as to Just what ne
does offer to do. The country has
been given to understand mat MT.
| Ford has guaranteed to reduce the
cost Of fertilizer by one-half. He
| has done nothing of the kind. He
has made no guarantee Of any kind
! in the way of the reduction OF the
cost Of fertilizer The country mas
| been given to understand that he
! pays the government per cent In
terest on it's investment in the two
dams. He does nothing Of the kind:
He has not made any such oner. ana
no such proposition is included in his
| bid. Giving his corporation credit
| for every dollar that it pays. he Will
| be paying to the taxpayers less than
| 3 per cent on the money which he
uses out of the Treasury Of the
United States. and when we consider
| that this loan runs for one hundred
years, IL requires even the stretch
of the ina gination to understand the
enormous profit that this corporation
secures in this one item alone.
Assuming that a fair interest rate
in the commercial world is per cent
! interest. this would give his corpo.
ration during hundred-year period
total gift of cold cash Of $236,250,-
| 600, and If this money were COM
pounded. as Mr.. Ford asks the gov
! ernment to compound what he pays.
| the profit to the corporation at the
| end Of the one hundred-year period
! would be s14, 100000. This is
, more than half our total cost of the
! world war
The country has been given to un-
derstand that the Ford offer provides
| for the repayment to the government
\ within the one-hundred-year period
the entire investment that the gov
! ernment has made. His offer does
nothing of the kind. On the other
hand. the total payments included in
the offer of both interest and amorti-
! zation amount to less than 3 per cent
! on the investment. and he never pays
one dollar of the principal. The peo-
i pie of the country have been led to
| believe that the Ford offer means
reduced price for electricity to the
consumer 1t means nothing of the
kind He has not agreed to furnish
| a single kilowatt to any home or to
any manufacturing concern except his
own. The mighty power at Muscle
| Shoals will be devoted entirely and
exclusively to the use Of the great
| corporation which Mr.. Ford will or
ganize.
Dazed at Unreasonableness.
when we bring together the re-
| suits that must follow from these
two divisions of the Ford offer, the
mind is dazed at the unreasonableness
of the propositions at the enormity of
| the gift. With the expenditure of no
money there is to be turned over to a
corporation property of the value of
more than $100.0O0.0 900 and the right
and privilege to extort unjust profits
from the citizens of this country with
| out limit
; There is nothing in the history of
:the world with which this can be COM
pared. Civilization is without a prec-
! edent If the Ford offer is accepted
| then the fight for conservation that
FOUND,