The Lakeland evening telegram. (Lakeland, Fla.) 1911-1922, 1922-08-04
Report Says None Of the
Objections To Ford's
Proposals Can Be Rem
edied By Government
Ownership Of Muscle
Shoals

:. X =
Shoals
Washington, Aug. 4.-(By The AS
ziated Press. s.)-Acceptance of Hen
IN F'ord's offer for purchase and lease
sg0f the governments vast nitrate and
4 water power projects at Muscle Shoals
! Alabama, was urged by Republican
and Democratic senators comprising
"a minority of the Senate Agricultural
Committee in a report submitted to-
day to the Senate. Strong protest
!, was entered by the senators against
the acceptance Of the government
ownership and operation plan propos-
ed, by Senator Norris, of Nebraska, the
committees chairman.
The report was presented by sSena-
tor Ladd, Republican. North Dakota,
and was signed by Senators Capper,
Republican, of Kansas, Harrison, OF
Mississippi. Caraway of Arkansas, Ran
dell. of Louisiana Smith of South
Carolina and Heflin, of Alabama,
Democrat, In behalf of the Ford pro-
ponents on the committee whose sig
natures were attached. It estimated
that the government had lost $4,000, !
900 at Muscle Shoals, since the Arm
istice, by failure to develop and oper-
cate 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 govern
ment's 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 be
femedfed or solved by government
ownership and operation-by the gov.
.ernmept going into the power bpsj-
ness or entering the uncharted and
hazardous field of operating nitrate
plants at Muscle Shoals in the pro-
! ductiori Of nitrogenous and other COM
mercial Fertilizers using electro chem
ical processes, the commercial success
of which .is<yet controversial.
"For Congress- to adopt SUCH poll
cy when Henry Ford's offer makes
it unnecessary for the government to
do so,"Ni continued would subject
Congress to the just condemnation
of all sober-iminded people"
The belief was expressed that ev-
cry member OF the senate would agree
with the committee minority with re-
ference to the acceptance of Mr..
Ford's proposal when they consider
the present fuel and transportation
emergencies" in the light Of "devel'
opment of such great hydro-ele
power as is found at Muscle Shoals,
adding "that it is the only certain and
permanent relief in the future from
the present paralysis Of American in
sdustry." 90
The report called attention to
charges that acceptance of Mr.. Ford
tender would give him government
Subsidy in the development of power
knd the manufacture of fertilizer and
ksaid:
ut has been claimed that the Ford
offer constitutes a subsidy to Mr.
Ford. If 1t is subsidy, 1t Is not, such
subsidy as is proposed by the ad
ADMINISTRATION in the Ship Subsidy
kiil."
Fffe report then cited comparison
seen the Ladd bill and that pro
s g federal relief for the merchant
l-..fre, showing that the former call
led for an expenditure OF $42.000,00t
y while the latter required an expendi
tufe Of SIPS, 100000.
In that connection, 1t was contend
ed, one measure would take the gov
ernment out OF the shipping business
while the other would take 1t ou
of thA fertilizer business. 1t was
also, argued lin that connection tina
the Ladd bill would cost the govern
ment approximately nothing |
year while the ship subsidy bill
would necessitate an annual expendi
ture of $41 100000.
''If the Ford proposal is not to b.
supported on the grounds Of subsidy,
the report asked, "how can the Am
erican people support such a subsid.
to ship operators as Is here propos
! ed?"
Referring to the relationship claim
ed between Muscle Shoals develop
ment and the field and transportation
S emergencies. the report said;
'No electrified railway and no II
.dustry served by water power ca
suffer suspension on account Of Q fue
supply because hydrp-electric power
both in it's production and distribl
! Z tion, Is practically free OF Az labo
troubles. FueL and transpOftatio
are the big national probieulA whic
now distress our people, Mu6cl
Shoals, with Ford offer accepted ma
fnrnIsh an opportunity for the senat
to discover how snch fuel and tram
bortation efnerfbncies cah be. at ieas
in part. avoided, An the future
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