The Birmingham age-herald., 1924-05-10
(Washin9ton Bureau)

WASHINGTON, D. O., May B. The Muscle Shoals hearing before the Senate committee on agriculture ap- parently became a travesty today when one witness occupied two hours in re- beating what was related yesterday, and lsonly two members of the committee could be persuaded to endure the or deal to its end.
 Leonard H. Davis of New York was the witness. He essayed further ex- planation of the two proposals of the Union Carbide company. While at the beginning, six Senators sat about the table, at the end, there were only two. Chairman Norris sat in his place at the head, while atithe bottom of the board sat Senator Ralston.
 From appearances, one would judge that the proceedings would die of their own impotence. Chairman Norris, how ever, is determined, it is indicated, to give an opportunity to everyone who desires to testify, although it is gem orally believed by half the spectators and fair percentage of the member ship, that some of the witnesses are animated solely by the hope of destroy ing the offer of Henry Ford through premediated policy of delay.
 Mir. Davis, the witness today. is gen, eFal manager of the Michigan Northern Power company and vice president of several of the. subsidiaries of that cor poration. His appearance was the first indication to the committee that the Union Carbide company had associted itself with waterpower companies in it's attempt to defeat the Ford offer.
 That waterpower companies of north ern states are apparently as deter mined to prevent Ford, with Muscle Shoals power, from competing against them, as is the Alabama Power com pany and it's southern associates, was somewhat revelation to the commit tee, 1t was observed. Inasmnch, how eveF, as there is admitted to be no real chance for the Union Carbide company to obtain Muscle Shoals, the indica- tions become each day more signifi- gigantic corporations to prevent com petition by Ford in northern Ala bama. H. H. Hooker, who has an offer. de- clared while a witness, that he was in no wise connected with the Alabama Power company. At the same time, it is pointed out, Hooker, the Union Car bide company and others, are engaged in the same identical strategy and for an identical purpose. Each of them, without hope of obtaining Muscle Shoals for himself, is determined that Ford be deprived of his opportunity to ob- tain Muscle Shoals. <
 The significant feature of the pre- sentatiop of the Union Carbide com pany's case today was the presumption of the witness that from fertilizer sales he would secure at 5 per cent profit sufficient to engage in extensive re- search, and to amortize the investment of the government in the nitrate estab- lishments
 Yesterday, s. Crosby Morrison, speak ing for the Union Carbide company, very frankly contended q that there would be very little if any profit from the manufacture of fertilizer, and added statement of his conviction that Mus. cle Shoals fertilizer, when thrown on the market, would exert comparatively little if any effect.
 Mir. Davis, however, today, was anxious, it seemed, to make an i'm pression on the commission by his con- tention that fertilizer would prove a money-maker.
 If one-half of the profits to be set aside to amortize the government in- vestment for the last forty-seyen years of the lease," he said, should be $200,000 per year, and compounded at per cent interest annually, the in- vestment which could be amortized at the end of the lease period would be nearly $25,00O.O00."
 This testimony was in sharp con. flict- with that of previous witnesses bent on defeating the Ford offer. It has always been their contention that
 Ford could not make profit on fer tilizer production and that the govern
 ment could not compel him to produce at A lOgs