The New York herald., 1922-06-19
Farm Bloc Leader Says Plan
Means Nothing to Ameri-
can Public.
TRADING UPON A NAME
Contract Would Not Be Justs
fled if Made by Anyone
Else.
Special Dispatch to THE NEW YORK HnRALp.
New York Herald Bureau,
Washington, d. c., June 10.

New York Herald Bureau
Washington. D. C.. june IS.
Henry Fords proposal to take over
the Government power project at Muscle
Shoals is regarded as having been killed
by the attack made upon 1t in the Sem
ate by Senator Norris Neb). Hope to
Kenzie House bill or in any other form
at the present session has been aban.
doned definitely as result of Senator
Norris's opposition NN.
The chief support of the Ford project
has come from the farm organizations
and the farm bloc in Congress. Senator
Norris IL charter member of the farm
bloc, and declares that the organiza-
tions which are indulging in propaganda
for the Ford project do not know what
they are talking about" He added that
II the name of John d. Rockefeller or ot
the International Harvester Trust were
attached to the Ford offer the outcry
against it would be irresistible.
Senator Norris's attack upon the Ford
offer has thrown out Of gear the prof.
ects which the House farm group, OF
which Representative Campbell of Kan.
sas, chairman of the House Rules Com
mittee, is member. had to rush tina
Ford Muscle Shoals project through in
the closing hours of the session. This
plan of this group was to use the tariff
measure and the Ship Subsidy bill az
trading stock. which would allow them
to pass favorably on the Muscle Shoals
offer.
Hearings Not Finished.
The hearings on the Muscle Shoals
project are not yet completed by the,
Senate Agricultural Committee, but Sem
ator Norris. its chairman. has indicated
where he stands. He will oppose any
consideration of the Ford project at this
session. and will later attempt to obtain
adoption of the measure he has intro
duced.
The Norris bill provides for the estab-
lishment OLA Government corporation
to complete the project. the money to
be obtained either by direct appropria-
ton or by the sale OF power generated.
This is opposed to the policy enunciated
by Secretary of War Weeks. who is OPP
posed to Government ownership or oper-
alton Of this or any other project. but
who is not favorable to the Ford offer.
Senator Norris. assisted by Senator
McNary (Ore), yesterday succeeded in
making an analysis of the Ford offer.
which has had startling effect upon
Senators who lad not studied 1t pre-
viously
Specifically saying he did not blame
Mr.. Ford. who is acting as a business
man. he insisted the Ford offer meant
nothing to the American public as a
whole, meant nothing to the Mississippi
Valley as a section. nor would 1t neces-
sarily mean cheaper commercial fertilizer
for the farmer, a result in which the
consumer is as vitality interested as the
producer
AS anaiyzed by these Senators. the
Ford offer proposes to take over the
project as it now stands without the pay
ment of cent and after, the dams and
power plants are completed to pay the
Government 4 per cent on the money to
be advanced for the completion of the
project, but not for the one hundred
million dollars already expended.
Contrasts Figures.
Senator Norris estimated that the
terms Of the contract. when reduced to
their actual meaning. provide that Ford
shall pay only 21a per cent. He esti-
mates also that at the end of a
hundred years the money which the
Ford corporation would pay back to the
United States would be something like
$4,000. 900 less than the Government
advanced.
Those who are supporting the Ford
PROJECT, senator MOTIFS insists, are
merely trading on the popularity of the
name of Ford and are urging Congress
to make a contract which would never
be justified IL made with any one else
Senator Norris proposes that under
the terms OF his bill the power generated
at Muscle Shoals be transmitted to other
States and that greater proportion
Of the power generated be devoted to
the manufacture of fertilizer than Is
provided under the Ford offer Senator
McNary said the Ford offer proposes
to devote only one-seventh OF the power
developed to manufacturing fertilizer.
The postponement of Muscle Shoals
legislation for the present session.
which now Is assured. means that the
next session will witness n spirited
struggle over the establishment of a
permanent policy relative to the project.
Members of the House and Senate al
ready arc dividing on the issue of Gov
crnment ownership of the project or Tvs
sale or lease to private parties. TlS
principle of Government ownership VIA