The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1923-01-27

velop at Muscle Shoals a new source
of nitrogen. This would exclude any
bids or offers that did not carry an
obligation to produce and develop
commercially nitrogen process.
This can be done in the following
ways:
81. BY government development.
Except as last resort, am opposed
1 to this on account of its inherent dis
advantage. 4l nj +,
20. By combination of industry
either with government cooperation
or independently.
20. BY the Ford development This
apparently is the only offer that has
come forward SO far from private
source promising development along
commercial lines. If no more adj
vantageous offer should be made. the
| arguments against awarding the con-
tract to Henry Ford would not be
convincing.
Without commenting upon the
terms of the contract, or considering
\ the adequacy of the price, there are
| certain notifications or clarified
\ tions that should be made. Among
| these is the one made on the bottom
| page in the letter from the Secre-
tary of War, document No. ICY, where
the secretary draws attention to the
| fact that the language contained
therein is susceptible of construc-
ton to the effect that Mr.. Ford IS
| personally bound to only see that his
company enters into the contracts re-
| quired to carry out the terms of the
| proposal. All doubt in regard to Mr..
| Ford's personal liability should be
removed.
The most important thing that
ought to be clarified is the follow
ing; That Mr.. Ford undertakes to
make 10000 tons of fixed nitrogen
per year, and if he does not make it
the property is to revert to the gov
eminent. After all. it is the fixing
of the nitrogen that is the crux of
the whole contract l am quite sure
that the contract means to cover this
point. but it should be made clear.
Pecuniary Rewards
However great the pecuniary re-
wards might be to Mr.. Ford or to
any one else, who will undertake it.
there will be added a contribution o.
almost inestimable value to the flu
ture of American agriculture and the
safety of America in time of war;"
Along with Mr.. Baruch's letter
there was made public the engineer
ing report which guided his conclu-
sions. Best utilization of the govern
ments vast investment at Muscle
Shoals, Mr.. Summers said, would
come from requirement Of the plant
by a group of Industries able to de-
velop an industrial center which
would absorb the power and convert
the raw materials to best advantage
of the country in war time.
Mr. Ford can make complete fer
tilizers at Muscle Shoals at a price
that will be effective" the engineers
i 1.
sibilities lie in the electrometeallur-
gical field for which this plant is so
advantageously located. The war
preparedness feature of the installa-
ton can best be preserved by the
disposition of the plant to one who
could guarantee the production Ct
minimum quantity of fixed nitrogen.
The Ford Offer ridiculous as it is
as price paid for this valuable as
set. promises the greatest financial
return 10 the government and the
most efficient war measure of any
available plan.
"Whosoever may be handed Muscle
Shoals will receive from the govern
ment vast potent;ai possibility. a
tool which may effect the economic
Encouragement of the particular in
dustry TO which it is applied"
Five Methods Considered
Five possible methods of dealing
with the governments vast invest
ment at Muscle Shoals We're consid-
cred in the engineering analysis, the
first being that Of maintaining the
enterprise in its present shape, in
readiness for completion in case of
war. This was declared impracticable.
considering the likelihood of progress
in methods of manufacturing chemf-
calls with electrical power The Sec
ond dealt with the proposals for its
&C completion by the government at a
cost of $50 600, 900 and later operation
| under public supervision"
This would be difficult to realize
under government opera ton, for the
government cannot embark IN COM
petition with private industries" the
report said en- this point after point
ing out that great stores of raw ma