The Washington times., 1924-06-03
Of
FORD'SB|D
URGED
Minority Report of Senate
Committee Sees Relief
for Farmers
By Internatlohal News servica.


Definite action upon Henry
Ford's offer for the Government
huge nitrate project at Muscle
Shoals before the adjournment of
Congress doomed today when five
members Of the Senate Agriculture
committee filed a minority report
urging immediate acceptance of
Ford's bid.
Inc report praised Ford's offer az
certain to relieve agriculture dis.
tress by slashing fertilizer costs in
half. --'
1t was signed by Senator's I,add
lHepD OF North Dakota, Smith of
south Carolina, Caraway of
Arkansas, Harrison of Mississinni
ana HELM OF Alabama, Democrats.
Basis Of Acceptance
The minority report proposed &C.
ceptance Of Fords bid on a ion.
year lease basis with a g1ara ntes
Tor the production Of fertilizer al
a maximum profit of eight per cent
Practically the entire horse-nowey
developed at Muscle Shoals, II was
stated, would be used for this pur.
pose II Ford obtained the project.
The report bitterly condemned the
action of the committees majority
IN endorsing the Government opere.
ton plan, proposed by Senator Nor.
r1s (RepD Of Nebraska. committes
chairman. The Norris plan, accord.
ing to the minority, had the sun.
port of Wall Street because i,
would not interfere with onera.
tons of the fertilizer trust"
Ford's insistence upon a 10O.year
tease, the subject OF much conten.
tention, was defended by the minor.
ity.
THE taxpayer would lose more in
rifty years of Government opera.
ton, said the minority, than thew
could gain by refusing to consent to
Ford's 100-year lease"
They also commended that Ford
would be submitted to greater regu.
!ations under his own bid than If
ne was subjected to government
regulations under the Federal Water
Power Act. The Water Power Act.
the minority said, would not compel
Ford to limit his profits to Der
cent nor limit his power rates.
which was provided for in his bid.
Pledge of Congress.
Congress has made a pledge to
the farmers that Muscle Shoals
should be operated primarily for the
production of cheaper and better fer,
tiiizer," the report continued. "AIl
the experts appearing before OUT
committee agree that under a bust
ness'like management, such as il
to be had under the Ford plan, the
cost of fertilizers to the farmer can
be reduced one-half.
Mr.. Ford's minimum obligations
to produce fertilizer are limited as
to the kind to be produced and the
maximum amount to ID produced
only by the demand. H4g fertilizer
obligations will require more power
than the entire supply of the de.
pendable power available at Muscle
Shoals with both steam power plants
in operation and they will require
the improvement Of some Of the ir.
regular and unreliable power in order
to carry them out. This means he
will further expand the water-power
possibilities of Muscle Shoals in
order to furnish greater supplies OF
cheap fertilizer.
Under the FOrQ proposal now
policy in the utilization Of a great
natural resource would be adopted
a policy Of consumer-regulation in
the manufacture and sale of fertili'
ger only by Mr.. Ford. 1t is a policy
which the special interests are fight
ing with every resource at their
command and it is accomplished in
the Ford offer by limiting the profit
Of fertilizer to a maximum of 8 per
cent upon the fair actual cost OF
production.
1.-THE fair cost Of production would
be determined by a board Of farmer
representatives and since it is left
to these farmers to say what is
fair the entire scheme Of manu-.
facture is placed in the hands OF
the consumers.