Evening star., 1924-03-30
SENATOR'S ARE DIVIDED
ON MUSCLE SHOALS FATE
Disposal of Great Plant to Henry
Ford Sure to Meet Siren
uous Opposition.

s15,000.000; under the Ford bill the
United States deeds to the company
the following property-nitrate plant.
No. l. which cost the government
ls12,SSS,00o: nitrate plant No. .. in
cluding 10000 horse power steam
plant. which cost $S6.252.o00: Waco
Quarry. which cost S1.S0S,000, and a
new steam plant to cost s347e,Oo0.
while under the companies bill the
United States deeds to the company
nothing. In return for all this prop
erty, costing total of $50. 3.915,0oo,
Henry Ford proposes TO pay the gov
eminent $5,000,000.
Comparison Of Promises.
The power companies agree to do
,, all that Ford agrees to do. and more.
=, in development and service, and
would leave the title to all these
$50. 900 worth of property in the
hands of the government.
! The rental which Henry Ford pro-
poses to pay to the government for
years is s1O3.S66.S54. or to pay to-
! tai Of s219.964954 for 100 years. The
rental offered by the power companies
lis s13S.0S4.40 for fifty years. or s2S5.-
624.400 for 100 years. The loss to the
| the Ford offer instead Of the power
companies offer would be $34,21I,I46
in fifty years, or s75.65s,446 in 100
Iyears.
The power companies agree to
make $4,000 tons of nitrogen a year,
/ while Ford agrees to make 10000
! tons; they agree to have 10000 tons
! of nitrogen available for use in time
] of war. while Ford agrees to have
| 10000 tons
F., lease of the water poWer at MuS,!e
Shoals, with a preferred right TO
| lease for another 100 years. Inc
| companies offer provides for hrty-
year lease. with right of the govern
| ment to recapture all property at the
/ expiration Of that period. The power
companfes would be regulated by
/ rublic authority as to rates. service
! and security issues. The Ford com
pany would not be 50 regulated by
! public authority.
The companies offer provides for
/ a s4,500000 cash payment TOR the
! 10000 horsepower steam plant al
/ Muscle Shoals If the government de-
: sires to sell. the government 10 re
! tain title to the balance of properties
! Plants Cost Vast Sum.
, The plants to which Ford proposes
to take title have cost the govern
ment tremendous sums Of money. For
| example. nitrate plant, No. l, repre-
s12.000.O00. 1t includes 1900 acres
of .land. Besides the nitrate plant.
there are large buildings for various
manufacturing purposes. Ia perma
nent residences. macadam roaIS'
: sewerage. four miles TO rai!roaas;
cars, locomotives. naved streets ana
water works. Nitrate plant, No;
rcpresenting an investment OF set.-
600. 900. includes $500 acres OF land,
with 1876 permanent residences. greao
nitrate works. a hotel containing lo9
,.ooms roads. sewerage. railroad
tracks, etc.
Confidence in Ford.
The sale of these vast, properties
for SIS, 900, 900 to Henry Ford, as pro-
posed. it has been charged in some
quarters, would be little short OF
gift. and such sale, If made secretly
would be hailed as another govern
ment scandal. But there is feeling
on the part of many other persons
that the government should get de-
yelopment of the nitrogen desired for
the national defense and for the
American farmers through Ford in
preference to government operation
and in preference to the oner or the
power companies. 1t mas peen estl-
ment s59,000,000 more than the sl25,-
600. 600 already expended to carry on
this enterprise.
The House military affairs commit
tee majority. reporting the Ford bill,
declared that II had greater faith In
Ford's responsibility" when 1t comes
to carrying out all the terms of the
contract than in any other.
Government development and op-
Grafton of the nitrate plants at Mus
Gle Shoals, however, is strongly de-
Tended by Senator Norris in the re-
port which he submitted to the Sem
ate last Congress. He declared that
lit is not putting the government
into business in the ordinary sense
of that term" He pointed out that
the government has built nitrate
plant No for the same purpose that
it builds a battleship. for national
defense. 4 battleship, he said, has
no peacetime occupation. but the nj
trate plant has-the manufacture of
nitrogen for use in fertilizers for the
farmers, and in keeping II in condi-
tion for war purposes it can be used
for producing fertilizer. and, he add
ed. I'VE ought to use twice as much
fertilizer in the United States as we
do USE"