Evening star., 1923-10-13
The Muscle Shoals Case.

Secretary Weeks, in his statement
respecting Henry Ford's accusation of
improper motives in the recent sale
of the Gorgas power plant at Muscle
Shoals to the Alabama Power Com
pany, exercises conmendable restraint.
He characterizes the motor makers
assertions as reckless" when they
might we'll have been given a harsher
term. He proceeds to set forth the
situation regarding Muscle Shoals in
way that should leave the public
in no doubt on the subject.
This Muscle Shoals case has been
greatly confused in the peoples mind,
partly because of the technicalities in
volved and partly because of the length
of time during which it has been in
controversy. Briefly stated, it stands
as follows: During the war the gov
ernment developed a great power
plant at Muscle Shoals, in Alabama,
at cost of about S102, 200, 900. for the
purpose of making war munitions.
When the war ended it had no further
bidders appeared in the field notably
Henry Ford. One of the bidders for
part Of the plant was the Alabama
Power Company, on whose original
property steam plant had been erect
ed by the United States, under a con-
tract which required that if the gov
ernment did not itself take over the
plant permanently the company could
buy it at a fair valuation. It offered
S3,500,000 for this "comparat lively
as Secretary Weeks states in his re-
joinder to Mr.. Ford's letter. Henry
Ford charges that the sale of this
steam plant greatly lessened the value
of the Muscle Shoals project. Secre-
tary Weeks states that it does not,
and points out that at the time of the
sale. which was required under the
terms of the original contract unless
the government wished to proceed
with ownership, the administration
stated to Mr.. Ford that the $500, 900
could be credited on his original offer
if he wished. He did not accept the
suggestion.
Henry Ford has stated. or allowed it
to be understood, that if he could get
possession of Muscle Shoals he would
turn the plant to the making of
nitrates for fertilizing purposes. to
benefit the farmers of this country.
Experts have declared that it would
be impossible to produce sufficient
nitrates at the plant, in fullest develop
ment, to supply a single large agri-
cultural county, or to affect the cost
of the nitrates in the open market in
any appreciable degree. But it listens
well' in the ears of the farmers Of the
country for Mr.. Ford to say that he
could, if given the Muscle Shoals
plant-and it would be virtually a gift
if he were to buy it for $5, ,000, 900
cut the nitrate cost to the farmers by
making fertilizer from the air. And
just now anything that appeals to the
farmers has decided political value.
Henry Ford failed to persuade Con-
gress-tO which the matter of the sale
of the plant had to be referred under
the law-that he should be allowed to
buy it for the figure he named. Mean
while the government. through the ap-
propriate executive officer, has dis
posed of a small feature of the plant
to the original owner of the property,
under a contract which admits of no
other action. Mr.. Ford says that cor
rupt motives induced this sale, and
that the part that has been sold rem
ders the remainder .valueless, and that
the government has been mulcted.
Secretary Weeks says that the trans
action has been clean and proper. that
the part sold has not lessened the
value of that which Mr.. Ford wants to
buy, and that the government has not
suffered financially.
So there is an issue of judgment and
of fact. Mr.. Ford's motive in making
his reckless assertions is perfectly
plain.