Atlanta tri-weekly journal. [volume] (Atlanta, Ga.) 1920-19??, 1922-05-13
NEW OFFER MADE
FOR MUSCLE SHOALS

WASHINGTON, May 11.-(By the
Associated Press).-A new proposal
for the lease and operation of the
governments nitrate and power
projects at Muscle Shoals, Ala, sub
mitted by L. Stern, consulting en-
gineer and manufacturer Of Balti-
more, Md, was made public today
by Chairman Norris, of the senate
agricultural committee, which is in
vestigating the various offers al
ready filed.
Mr.. Stern offered to take over the
properties for operation for "a term
Of rs or so years or such other time
as may be agreeable" to complete
the plants at government cost, and
to repay all expenditures already
made at Muscle Shoals at the rate
of two per cent annually. Power
developed at the shoals would be
used to manufacture fertilizers to
such extent as may be feasible"
and other products.
A letter to the committee trans
hitting the proposal, said Mr.. Stern
had communicated with the secre-
tary of war regarding the Muscle
Shoals project and that Mr.. Weeks
had advised sending the proposal
direct to the senate committee, las
the preliminary negotiations have
passed out Of the hands of the war
department.
The proposal submitted by Mr..
Stern follows:
eve herewith propose to lease
from the government the Muscle
Shoals power project for term of
rs or SO years or such other time
as may be agreeable on the follow
ing conditions:
81. The plants to be completed
under our supervision at govern
me cost; four per cent interest an
nually to be allowed the government
on amount necessary for compile
ton.
"2. A valuation to be placed on
the work already done based on
what would have been the average
cost during the period from 1904 to
1914, and this sum to be repaid the
government at the rate of two per-
cent per annum besides $4,000 an
nually for maintenance Of naviga-
BILE locks.
$50. The power obtained to be used
in the manufacture of fertilizers to
such an extent as may be feasible
and in the manufacture Of electro
metallurgical products; 100000, tons
fertilizers, to be sold at the cost
Of production; in case of war the
plants to be Immediately converted
for manufacturing war materials
which shall be sold to the govern
ment at the prevailing prices; any
surplus power to be sold direct to
users or to power distributing COM
panies.
~. In addition to the above named
payments, sixty per cent Of all net
profits derived from the operation
of the plants to be paid to the gov
eminent, and 40 per cent to u.s."
Benjamin G. Marsh, managing d.
rector Of the Farmers National
council, declared that the offer sub.
mitted by Henry Ford, "does not, as
he himself says, give any assurance
whatever of cheaper fertilizers.
cit is doubtful" the witness con-
LlAuSO, WASLIlSI Il6 1dI1iSIS Will
save over $1O,O00,0O0 to $15,000,OOO
a year through this proposal. The
price therefore is altogether too
great, for while Mr.. Ford is an hon
est and good business man, this pro-
posal opens the door for the financial
interests of the nation to practically
grab all the natural resources on a
100-year lease, which would cost the
farmers at least twenty, and pos
sibly fifty, times as much as any
probable advantage they would get
out of cheap fertilizers.
"The financial interests could well
afford to pay a farm organization
$1.000,000 a year for defeating, by
precedent, the only intelligent con.
servation policy, which is govern
ment ownership and develop of ma
tional resources or short-time leases
not to exceed twenty to maximum.
Of fifty years. and that under abso-
lutte control.
'It is not surprising that the
American Farm Bureau federation,
which Endorsed the Cummins-Esch
law, which enable the railroads to
steal 100000 a year from the
farmers, which opposed the farm
products export corporation, and
which has just Endorsed the ship
subsidy steal, should be working
overtime for establishing the prin-
ciple of 100-year lease without gov
eminent control for natural re
sources"