The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1922-07-22
NORRIS REPORT
ON F0RD'S BID
BEFORE. SENATE

IL o. ~ VI y i lOOOOOOl
Government Owned
Corporation to Ope-
rate Muscle Shoals
: Washington. July; 20.-In a. com.
prehensive report: submitted to the
senate today by Chairman Norris
of: the senate agricultural com
5mittee, Henry ,Ford's- offer for the
purchase and lease Of the govern.
ment's war-initiated projects al
Muscle Shoals, Alabama, is con.
demned IN unusually strong Ian
guage, while the Nebraska SEN
ator's bill, proposing development
Of the properties under a govern
ment owned and controlled corpor-
alton, is described as "the most
wonderful plan" that has ever been
proposed in the history of the
country.
). On the question of the Ford bid,
the report says, Senator'S Page,
McNary, Keyes, Gooding, Nerboek,
Harreld, and Mckinley, Repub1i-
cans. and Kendrick, Democrat,-con-
cur with the chairman. With ref
erence to the government owner
ship proposal, the report gives the
names of five senator's, Norris.
McNary, Gooding. Norbecks and
Mckinley. who favorits passage by
the. senate for the solution of the
Muscle Shoals problem.
Because of this lineup of the
Committeeman the report is
characterized as minority opinion
insofar, as it expresses approval of
the sgovernment-o ownership bill but
is. presented as majority opinion
insofar as it deals with. the re-
lection by the committee of all
proposals for. Muscle Shoals de-
velopment Z
The Ford offer is dealt with in
unsparing terms. It's adoption, the
report says would put "the govern
ment OF the. United States into
business with a vengeance, +" add
ing that 'ttfose who ask congress
to accept the Ford offer ask us. in
effect, to lease, this property to this
corporation without any real con-
sideration, and then in addition
thereto, guarantee to repair and
keep and maintain it in good condi-
ton for a period of one. hundred
years
..It is difficult to harmonic 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
misrepresentation as to just what
he does offer to do. The country
has been given to understand that
Mr.. 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 has been given to under
stand that he pays the. govern
n1ent four per cent interest on It's
investment in. the two dams. He
does nothing Of the kind. He has
not made any such offer and no
such proposition is included in his
bid. Giving his corporation cred
it for every dollar that it pays, ne
will be paying to the taxpayers less
than three 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. it requires even the
stretch of the Imagination to uEl-
derstand the enormous profit that
this corporation secures in this
one item alone,
Assuming that a. fair interest
rate in the commercial world is
six per cent interest, this would
give his corporation during hun
dred year period. a total gift Of
cold cash of s236, ESQ, 600 and if
this money. were compounded as
Mr.. Ford asks the government to
compound what he pays, the profit
to the corporation at the end Of the
one hundred year period would be
s14,500,o00, 200. This is more
than half our total cost of the
world war.
.'The country has been given to
understand that the Ford offer
provides for the repayment to-. the
government within the one hundred
year period, the entire investment
that the. government has made.
His offer does nothing Of the kind.
On the other hand, the total pay
ments included in the offer OF
both interest and amortization,
amount to less. than5 three per
cent. on the. investment and he
never pays one dollar Of the prin-
cipal. .aThe people 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 en-
tirelv and exclusively to the use
of the great corporation which
Mr.. Ford will organize.
''N hen we bring together the re-
suits that must follow from these
two divisions of the Ford offer. the
mind is dazed at-the unreasonable
ness of the proposition. at the
o,,o,,,;t of +ba off With tho OK