Capital journal. (Salem, Or.) 1919-1980, 1922-01-28
Muscle Shoals


Muscle Shoals is a power site on the Tennessee river
within easy distance of the coal and iron belts OF
Kentucky and Alabama. During the war the government
spent many millions in the construction of dams Tor the
development of power manufacture ntraes from the a
for explosives Work ceased with the armistlce
Henry Ford has made the government an offer TO take
over and complete the plant which will develop tota OIL
100000 horsepower He offers to pay $5000OOO outright
nav interest on 900 the property and to have the
debt amortized in hundred He offers on completion
of the DAMS to lease the power plants thus developed Tor
hundred years. and to operate them chiefly IN the
ture of fertilizers at profit not to exceed per cent 10
self any profit above to go to the reduction of fertilizer
prices and to the benefit of farmers.
The cost of completing the project estimated by Ford to
be $42000000 Army engineers estimate it at $53OOOOOO
Ford proposes that the plant be financed with currency issued
by the government not against god but against the plant
ITSELF which is worth every dollar The government would
it's currency with Muscle Shoals and the country back
of it. 1t would interest for borrowed money and Ford
would pay the percent the money puts n
and that would cost the government nothing.
The ordinary method of financing such deals for the
to borrow the money at five percent interest,"
which would cost the taxpayers $2500,000 year The
which issues it's money with gold back of it,
borrows it's money at high interest-just it did
during the Fod proposal has aroused Wall Street and
banking interests against such wildcat" finance that elm
mates interest and gold security.
Acceptance of Ford's proposition will salvage the
investment and the cheap fertilizer manufactured will
revoutonze farming in the south and west The surplus
power would be available for the surrounding territory at
cost Of fifty percent of power available Moreover it
would create vast industrial development giving work to
many thousands of people in industries In time of
the plant would be used for the manufacture of explosives
upon supendous SCALE the greatest munon plant earth
ready for instant in itself constituting the best kind of
insurance.
AS Thomas A. Edison who has inspected and examined
the project says Ford is great manufacturer with great
conceptions, who rapidly to their realization He is
the logical man to do this thing The whole country
abiding faith that Ford will operate it to get every
dollar possible out of it for himself He will make it an
American institution doing the greatest good for the great
est possible number"
Lnedup against Ford and the Muscle Shoals proposal are
the special interests always represented at Washington the
National Fertilizer association the electric power interests
the Wall Street groups banking houses and merchants
cations the American Cyanide corporation and it's allied
concern the Air Nrates corporaon the BProducs Coke
Oven association the Aluminium interests and the theoretical
conservationists led by Clifford Pichot
Supporting the Ford proposal the farmers bloc" in
congress- the American farm bureau federation the national
organizations and civic and business associations
throughout the country
The Ford proposal likely be accepted in some FORM
because OF the strength of the agricultural bloc and for the
reason that there is alternative offered for salvage of the
millions already invested 1t promises cheap power cheau
fertilizer cheap chemicals, to lower living and production
COSTS besides creating employment for many 1t will prob
ably be another victory for the farm bloc reactonat