Evening star., 1924-02-09
FORD SHOALS BID.
SCORED IN REPORT
Southern Power Companies
Proposals Declared Bet
ter by Minority.

The Mckenzie bill, authorizing ac-
ceptance of Henry Ford's offer for
the governments wartime project at
Muscle Shoals, Ala. is emphaticaAy
opposed in a minority report submit
ted today by members Of the House
military committee.
Comparing the Ford offer with that
of the southern power companies. but
without specifically indorsing any of
the four proposals. which have been
made for operation Of the Muscle
Shoals plants, the report declares that
acceptance of the Detroit manufac-
turer's bid would amount "to a gift
Of enormous property and industrial
the resources of the United States"
The power companies proposal as
compared with the Ford bid. 1t says,
offers Savings to the government"
amounting to $34,21S,000 for fifty
years and SIS. 900 for 100 years.
Representative Hull republican,
Iowa, who consistently has opposed
the Ford offer. presented the minor
ity report, in which he was joine by
Representatives NORM and Ransley,
Pennsylvania: Hill, Maryland; Froth-
ingham, Massachusetts. and VAIN
wright, New York, all republicans.
Seek Chnnee to Quit.
The report criticizes the majority
for attempting Ito justify the viola
tion by the Ford offer of every safe
guard and principle OF the federal
water power act" and declares that
the Mckenzie bill gives Mr.. Ford a
"loophole" to quit" the manufacture
of fertilizer If 1t should not prove
profitable. Furthermore, it con-
tends, no one Is in a position to
know from any statement Of Mr..
Ford, or any accredited representa-
tive, whether he would accept the
properties on the terms offered him
in the pending bill"
Asserting that under the bill as
Escemme nded by osd tine ma,Gsaty ma ba res. mr.
lated as to rates. service or issuance
Of securities by the federal govern
ment or the Alabama public service
commission" the report states that
"Mr. Ford proposes to pay 5000. 200
plant No. 2. costing $66.252.s92.2
nitrate. plant No. l. costing $12.8S7,-
941.31; Waco quarry, costing $1,302,-
962 SS, and cashing from the sale OF
the Gorgas plant $3.472.4s7.25-a total
of $83,915.783.65."
Involves 100000 Horsepower.
1.-THE gift Of property is stagger-
ing" it declared, but that is not all
or nearly all. No individual and no
corporation in the United States has
the unregulated control Of 100000
horsepower, or anything remotely ap-
preaching that figure"
Any of the other proposals sub
mitted is better than the Ford oner,
the minority holds, ADDING tnat me the
government under his offer compared
with the benefits he demands has
led his supporters and apolog1sts to
strangle arithmetical gymnastics"
shown no knowledge and little inter-
est in the methods by which cheaper
fertilizers could be actually pro-
/: duced." and that "he stated to the
Secretary of War that If he could not
make fertilizer prohtably he intend
ed to quit"
COMPARING the Mckenzie BILL with
a measure introduced by Mr.. Hull
embodying the proposal OF the south
ern power companies. the report says
capital Zone company owned by
Americans," while the Mckenzie bill
authorizes $50 100000 of capital Cone
company; personal liability of Mr..
Ford limited to the formation of q
corporation with above capital, owned
py Americans"
The United States would deed moth
ing to the power companies, 1t con-
tinues, but would turn over to Mr..
Ford property costing $s3,915,o00.
Would Disregard Law.
The power companies would receive
a fifty-year lease under the water
, power act, the report asserts, while
the Ford proposal calls for deeds to
! the shoals properties and the leasing
/ for 100 years OF the waterpower
rights in disregard to the water
power act.
The proposal embodied In the Hull
measure, II says agrees to make
| 10000 tons Of fixed nitrogen annually,
to furnish 100000 horsepower for
fertilizer at cost and 10000 additional
as required, and also to maintain
nitrate plant No. at the present
nitrogen capacity of 10000 tons, and
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