The Brattleboro daily reformer. (Brattleboro, Vt.) 1913-1955, 1922-07-20
CONDEMNS FORD'S
OFFER FOR SHOALS
Senate Agricultural Com
+. mittee Calls 1t Great Gift
to an Individual
PUBLIC FOOLED BY
MISREPRESENTATION

No Guarantees of Cheaper Fertilizer or
Electricity Would BE Gift Of Bill
lions of Cash Government Opera
ton Facored by Five Members.
WASHINGTON, July 20.-In COM
prehensive report submitted to the sem
ate today by Chairman Norris of the
senate agricultural committee, Henry
Ford's offer for the purchase and lease
of the governments war-initiated pro-
jects at Muscle Shoals, Alabama, is con-
demned in unusually strong language,
while the Nebraska senator's bill, pro
posing development of the properties
under a government owned and con-
trolled corporation, 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, Senators Page, McNary
Reyes, Gooding, Norbeck, Harreld, and
Mckinley, Republicans and kendricB
Democrat, concur with the chairman.
With reference to the government owner
ship proposal, the report gives the names
of five senators, Norris, McNary, Good
ing, Norbeck and Mckinley. who favor
its passage by the senate for the solu-
ton OF the Muscle Shoals problem
Because OF this lineup of the COM
mItteemen, the report is characterized
as minority opinion insofar as it ex-
presses approval of the government
ownership bill, but is presented as a
minority opinion insofar as it deals
with the rejection by the committee of
all proposals for Muscle Shoals develop
ment.
The Ford offer is dealt with in I'M
sparing terms. Its adoption, the report
says, would put 'the government Of the
United States into business with a
vengeance" adding that those 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 main
tain it in good condition for period of
leo years"
Can't Understand Ford
at is difficult to harmonic our idea
of Mr.. Ford's fairness" the report con-
tinues, with his silence on this subject.
when his name Is so often used IN eN-
aggeration and misrepresentation as to
Just what he does offer to do. The
country has been given to understand
that Mir. Ford has guaranteed to reduce
the cost of fertilizer by one-hslf. He
has done nothing Of the kind. He has
fnadn 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 govern
ment four per cent interest on its in
yestment in the two dams. He does
nothing Of the kind. He has not made
any such offer and no such proposition
is included i'm his bid Giving his cor
poration credit for every dollar that it
pays, he viii be paying to the taxpayers
less than three per cent on the money
which he uses ont of the treasury of
the United States. and when we consider
that this loan runs for leo years, it re-
quires even the stretch of the magma
ton 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 six per cent in
tcrest, this would give his corporation
during 100 year period. total gift OF
cold cash of 1896 ,2j0.000 and if this
money were compounded as Mr.. Ford
asks the government to compound what
he pays the proft to the corporation AT
the end of the 100 wear period Woul-
be $4,000. 900, 600 This is more thar
half our total cost of the world war.
Never Repays Principal.
"The country has been given to under
stand that the Ford offer provides FOL
the repayment to the government within
the 100 year period the entire invest
ment that the government has made
| His offer does nothing of the kind. Or
/ the other. hand, the total payment in
| Guided in the offer of both interest an,
| amortization, amount TO less than thre
/ per cent on the investment and h
never pays one dollar of the principal
/ The people of the country have been lea
to believe that the Ford offer means
| reduced price for electricity to the con
! sumer 1t means nothing of the kline
| He has not agreed to furnish singl
i kiloWatt to any home or to any MANI
featuring concern except his own. Ih
| mighty power at Muscle Shoals will b
devoted entirely and exclusively to TIA
use Of the great corporation which Nj
| Ford viii organize.
''Whcn we bring together the result
that must follow from these two d
/ visions of the Ford offer, the mind
| dazed at the unreasonableness of tn
proposition at the enormity.. 2
/ the gift. With the eXpendltur
| turned over TO corporation property c
fhe value Of more than Sl000000 600 an
the right and privilege to extort unjus
profits from the citizens of this countr
without limit.
THE Government Scheme.
/ Regarding Senator Norris's bin pr,
posing government development an
operation for the Muscle Shoals pr,
ieets. the report contains a reference I
the attitude Of senators who, it say
are seemingly determined to turn tn
property over to Mr.. Ford or absolutel
prevent its development by anyone
Seven members of the agricultural cor
mittee who voted for the favorable r
port Of the Ford offer and opposed
favorable report on the Norris bin al
mentioned in this connection
with them" the report says, 6
seems to be Ford or nothing. When "
take into consideration the wonderfu
development that it provided in s. 312
. lThe Norris bin. narticnlarlv for III