Evening star., 1922-08-04
FORD SHOALS BID
URGED ON SENATE
Minority Committee Mem
bers Oppose Government )
Ownership Plan.
WOULD AID FUEL SUPPLY
Development of Power Seen by
Senators as Provision Against
Coal Shortage.
WOULD AID FUEL SUPPLY
By the Associa ted Press.


urged by republican and democratic
senators comprising minority Of the
Senate agriculture committee in a
report submitted today to the Senate.
Strong protest was entered by the
senators against the acceptance Of
the government ownership and opera
tion plan proposed by Senator Norris
Of Nebraska, the committees chair
man.
The report was presented by Sena-
tor Ladd. republican. North Dakota,
and was signed by Senators Capper.
Mississippi; Caraway. Arkansas:
Ransdell. Louisiana: Smith. South
Carolina. and Heflin, Alabama. demo-
ment had lost 100000 at Muscle
Shoals since the arInistice by failure
to develop and operate the project,
and declared the quickest way to stop
these losses is TO accept Henry
Ford's offer for the purchase and
lease Of the governments Muscle
Shoals properties"
Certain objections to the Ford Of
fer seem apparent" the report said.
but we insist without fear of sue
cessful contradiction that none OF
the objections to the Ford offer can
ownership and operation-by the
government goine into the power
business or entering the uncharted
and hazardous field of operating
nitrate plants at Muscle Shoals in the
production of nitrogenous and other
chemical processes. the commercial
success Of which Is yet controver-
sial.
Relief for Industry.
For Congress to adopt such pol
icy when Henry Fords offer makes it
unnecessary for the government to do
so." it continued. would subject Con-
gress to the just condemnation and
reproach of all sober-minded people.
The belief was expressed that every
member of the Senate would agree
with the committee minority with
reference to the acceptance OF MIR
Ford's proposal when they consider
emergencies" in the light OF develop
ment of such great hydro-electric
power as is found at Muscle Shoals.
adding that it lis the only certain and
permanent relief in the future from
the present paralysis of American in
dustry."
The report called attention to
charges that acceptance of Mr.. Ford's
tender would give him government
subsidy in the development OF power
and the manufacture of fertilizer, and
said:
Tt has been claimed that the Ford
offer constitutes a subsidy to MIR.
Ford, If 1t is subsidy. it is not such
a subsidy as is proposed ny the ad.
ministration in the ship subsidy blli.
The report then cited a comparison
between the Ladd bill and that pro-
posing federal relief for the merchant
marine, showing that the former
called for an expenditure OF $4,000
900, while the latter required an ex-
penditure Of $125.000.000.
It was also argued that the Ladd
bill would cost the government ap-
proximately nothing year. while
the "ship subsidy bill" would necessi-
tate an annual expenditure of SAL
100000.
III the Ford proposal sauIs. is not d, to oube be
sidy." the report asked. how can
the American people support such
subsidy to ship operators as is mere
proposed?" .,,,,
Referring to the relationship
claimed between Muscle shoals ae-
nortation emergencies, the report
mo electrified railway and no in
dustry served by water power can
suffer suspension on account OF
fuel supply. because adWr+ien nyaroerecsr,S snd
distribution, is practically free Of all
lahor troubles. Fuel and trans
portation are the big national prob
lens which now distress our people.
Muscle Shoals. with the Fora oner
accepted, may furnish an opportunity
Tor the senate to discover how such
fuel and transportation emergencies
can be, at least, in part, avoided IN
The report stated that from the
present fertilizer industry me talmer anne
might expect but Httie III INC reoue
ton of prices.
..These interests even declined the
opnortunity to use the governments
nitrate plants free OF cost TO them,
and to be allowed without paying the
them To earn per cent on their in
vested operating capital before pay,
ING the government anything. and
after 9 per cent was earned. aodi-
tional profits were to be equally df-
yided between these interests and the
these interests justly COMPLAIN
against the acceptance by Congress
of the Ford offer when he proposes
to pay $5.0o0.o00 for the same nj
trate plants that these interests de-
clined to run free of any purchase
~ rental cost, Mr.. Ford agreeing to
sell fertilizer at no more than per
cent profit"
10O-Year Lease Urged.
"Nfr E,crd's offer will result in a de-
velorment whose national value can
only be compared with the accom-
niishment at Niagara Falls" the re-
bort continued. THE applications OF
sleotroshemistryd m ssds ahe fhe Niasara Hase Fails
hvdroeiectric developments success
Al and in the same way it will take
the skill Of the chemist and the
metalurgist, together with tnat OF tne
nsnital to develop the full possibilities
at Muscle shoals where, due to the
nuctuatinr flow of the stream, the
nrobiems are greater than those en-
countered at Niagara Fails:
u,,i1ieeness Ine senst to agree with Mr. Ford's
request that the lease on the power
nroicts be for 100 years rather than
for fifty years. as prescribed oy the
federal water power act Tney as,
serted that the operations prGp6ovtt pwit6out
parallel and call for an expenditure
BY him Of 0.oo0.o 900:
Tho report concluded with an ex-
preston of opinion on the question t
at Gorras in the Muscle shoals prop
critics be disposed of as requested by
with reference to the contention n
about nl the o GSrsas bas advised sdeam oar COM
mittee that II my revised offer for
Gorgas is rejected, then I must un-
derstand that the acceptance OF my
offer for Muscle Shoals as whole and
not in part is refused.
"There fore, believing. as we do. that
the United States has every right IN
, the world to accept Mr. Fords offer
for Gorgas, and since Mr.. Ford's offer
win stand rejected unless his pro-
: ~ q