The Washington times., 1924-05-12
CARBIDE SHOALS.
OFFER BEST,
He SAYS
Union company's Engineer
Gives Figures to Senators
on New Proposal

BY xnternatl6nal News Service.
Operation OF Muscle Shoals BY thu
Union Carbide Company win ptel0
the Government 966 5000, 900 more
revenue than any other offer, Leon
ard II. Davis, the company's engi.
neer, today told the Senate Agrl
culture Committee.
/ It viii be observed also that the
property owned by the Government
ct the end Of the lease period O1
fifty years. taken ct its cost to the
Government without the construc-
ton profit, will. In the case Of the
Carbide proposal, be- nearly $780,.
100000, figure $2,0O0,0 900 greater
than the corresponding value under
the Hooker proposal $500, 900
greater than the corresponding
value under the Alabama Power
and Associated Power Companies
proposal. and nearly 5000. 900
greater than the corresponding
value under the Ford proposal
Davis said.
''In fact. In the first six years
Of the lease period the Government,
under the Carbide company's pro.
posal. would, without parting with
title to any Of its property. receive
more money in rentals than II
would receive from the Ford pro
posal In the same period, and un-
der the Ford proposal the Govern.
ment would have surrendered title
to all Of it's nitrate properties
which have cost it nearly $685..
900 O00."
Davis also said his company
would make cheaper fertilizer than
any other bidder.
II desire to direct attention also
to the fact that under the proposal
OF the Union Carbide Company Tho
amount Of profit on the manufac
ture Of fertilizer which the farmer
will pay, per cent, compares with
3 per cent profit under all Of the
other proposals, SO that under ouI
proposal the farmer will be saved
three-eighths of the profit demand
ed by other bidders on all fertilizer
manufactured at Muscle Shoals. =
Davis said.
Furthermore, It should be re
membered that one-haR' Of all the
fertilizer profit which the Carbide
company may make on such ferti'
lizer production Is returned to the
Government for research to i'm,
prove the processes. Of fertilizer
production, and to create an amorti
zation fund for the amortization Of
the investment Of the Government
in the initiate plants, or for such
other purposes as the Government
may determine"
Would Lease Part.
II the Government does not de
sire to lease all Of the Muscls
| Shoals projects, Davis said his
company was prepared to submit
bids upon any basis, or upon any
portion Of Muscle Shoals that thu
Government desired.
Without regard to other competi
tive prices, Davis told Senator
Raiston Dem.) Of Indian, that his
company would set the price for
fertilizers to farmers at the actual
cost to manufacture plus per
cent profit.
But suppose the price was higher
than, others?" asked Senator Nor.
| ris Rep) Of Nebraska, chairman.
Then we'd have to abandon the
manufacture of fertilizer." Davis
/
THAT is the big trouble with
your offer and Ford's Offer" In
terposed Norris.
Davis explained that Of the {
per cent profit, 2h per cent would
be set aside for experimental worl,
| In fertilizer processes.
Frederick NJ. Beckett, expert chem
igt for the carbide company, de,
scribed the manufacture Of Urea, 9
new fertilizer, which the company
has offered to make In large guam
titles at Muscle Shoals.
= "Of paramount importance Is thu
high nitrogen content OF Urea, which
easily reaches ~ per cent in thu
commercial form, and IL therefore
the most highly concentrated nitro
genous plant food known" Becket
said.
"At q time when lower freight
rates seem remote and agricultural
economists are pointing to the large
freight savings possible through the
shipment Of concentrated fertilizers
or mixtures Of high analysis, Urea
containing AZ per cent of available
nitrogen, cannot fail to command
serious attention.
Cites Chile Expenses.
"The present price of Chile nitrate
Is 500 per ton, or $40 per ton or
the basis of 20 per cent nitrogen
content. We estimate that Urea
can be produced at $44 per tor
OF 20 per cent nitrogen fertilizer
and would therefore cost the
American farmer only two;thirds o.
what he now pays for Chilean nj
trate and in addition would save
nve-eighths Of the freight now paid
II shipped in the concentrated form
containing over AZ per cent nitro
gen." Beckett declared.
Beckett promised also that the
company would manufacture syn
thetic ammonia at Muscle Shoals,
AT a price for power to be
reasonably expected at Muscle
Shoals, Urea can be produced and
sold to the farmer in competition
with Chile nitrate and ammonium
sulphate at prices lower than those
At which nifhar re kAna~ RasAttt... -