The Mankato free press. [volume] (Mankato, Blue Earth County, Minn.) 1879-1924, 1922-07-21
FEDERAL OPERATION
OF: MUSCLE SHOALS
PLAN SUBMITTED BY SEN
AToR NORRIS TODAY
SCORE FORD PROPOSAL
Most Wonderful Plan" Claim
ed For Nebraska Senator's
Bill; the Report
ASSOCIATED Press Dispatch

ASSOCIATED Press Dispatch.l
Washington, D. G., July 20.-ln
comprehensive report submitted to
the senate today by Chairman Nor
ris OF the senate agricultural com
mlttee, Henry ForaS olter Tor the
pun chase ana lease OF the govern
ment's war initiated projects al
Muscle Shoals, Alabama, Is con-
uemned IN unusually strong lang
uage, while the Nebraska senator
bill, proposing the development oil
The properties under a government
owned and controlled corporation, is
described as The most wonderful
plan that has ever been proposed
IN the history oil the country.
On the question OF the Ford BID
the report says, senators rage
McNary, Reyes, Gooding, Norbeck
harreld, ana Mckinney, Republicans
and hendrick Democrat, concur
with the Chairman. With refer
ence to the government ownership
III opeSal, the report gives the names
of Iive senators, Norrls, McNary
Goouing, Norbeck and Mckinley
who favor its passage by the sen
ate for the solution OF the Muscle
Shoals problem.
Because OF this lineup OF the
committeeman, the report is char
acterized as a minority opinion in
solar as it expresses approval OF
the government ownership bill but
Is presented as a majority opinion
insofar as it deals with the rejec-
ton by the committee OF all pro-
posals for Muscle Shoals develop
ment.
The Ford offer is dealt with in
unsparing terms. Its adoption, the
report says, would put the govern
ment OF the United States into
business with a vengeance" adding
that those who ask congress u
accept the Ford offer ask US, III, Ell
Iert, to lease this property to this
corporation without any real con-
sideration, ana then in addition
thereto, guarantee to repair and
keep and maintain 1t in good condl.
ton ror a period OF one hundred
years"
1T 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 mis-
representation as to Just what he
does offer to do. The country has
been gwen to understand that Mr..
FORD mas guaranteed to reduce The
csot 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 understand that he
pays the government four per cent
interest on its investment In the
two dams. He does nothing Of the
kind. He has not made any such
offer and no such proposition is in
cluded in his bid. Giving his cor
poration credit for every dollar that
it pays, he 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, II
requires even the stretch of the i'm
aglnation to understand the enor-
nous profit that this corporation Sc
cures in this one item alone.
Big Gift of Cold Cash
Assuming that a fair interest
rate in the commercial world is six
per cent interest, this would give
his corporation during hundred
year period, a total gift of cold cash
of 1926, $50, 900 and If this money
were compounded as Mr.. Ford asks
the government to compound what
he pays, the profit to- the corpora
ton at the end of the one hundred
year period would be $14,500, e0e, 900.
Phis is more than half our total
cost of the world war.
|, The country has been given to
understand that the Ford offer pro-
vides for the repayment to the gov
eminent 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 payments
included in the offer of both inter
est and naturalization, amount to
less than three per cent on the in
vestment and he never pays one
dollar of the principal. The people
of the country have been lead to
believe that the Ford offer means
a reduced price for electricity to
the consumer. 1t means nothing of
the kind. He has not agreed to fur
nish single kilowatt to any home
or to any manufacturing concern
except his own. The mighty power
at Muscle Shoals will be devoted
entirely an Exclusively to the use
Of the great corporation which Mr..
Ford will organize.
when 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 ellor-
nifty Of the gift. With the expendi-
ture Of no money there is to be
turned over to a corporation proper
ty OF the value of more than 800.
100000 and the right and privilege
to extort unjust profits from the
citizens Of this country without lin
1t.
There is nothing in the history
Of the world with which this can be
compared. Civilization is without a
precedent If the Ford offer is &C
cepted, then the fight for conserva-
walton that has been waged by pub
lie spirited and patriotic men and
women all over the country is not
only lost and given away but those
who are unwillingly compelled to
make the gift are to be taxed one
profitable. 1t is, the greatest gift
ever bestowed upon mortal man
since salvation was made free to
the human race
Attacked Other Features Offer
Other features Of the Ford pro-
posal are vigorously attacked. That
proposing the hundred year lease of
the water power projects, the re-
port asserts, would make the FEEDER
al Water power Act. in effect. "a
scrap Of paper"
There is very little, If any, diff
ference, the document declares,
"betWeen giving a deed outright to