The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1924-05-03
BIDS ARE COMPARED
Shoals Never Intended To Be Junked,
Williams Declares

WASHINGTON. May Mai Gen.
G. C. Williams, chief of army ordnance,
today offered comparison of the bids
before the committee. He said Muscle
Shoals should be compared from three
standpoints-military preparedness, fl
nancial return to. the government and
fertilizer manufacture.
The Importance of the nitrate plants
for use in war is becoming less each
each year, he said, because three nj
trate plants have been started since
Muscle Shoals was constructed. He
said all of the bids seemed to amply
protect the government for military
preparedness.
Helm. democrat, Alabama, the general
said, Muscle Shoals never was intended
to be abandoned as junk"
mo effort was made to sell the
property until the chief of engineers
ordered the property taken up and ad-
vertised," he added. Until that time
Ford's bid probably was the best one
offered" =,
/, General Williams then said he did
not recommend any of the proposals.
'The commercial development of
nitrogen is increasing to such an ex-
tent that believe it will not be nec-
essary for the government to make
expenditures to produce it in time of
war;" he said.
Purely War Measure
He said Muscle Shoals was con-
strueted purely as war measure to
produce ammonium nitrate, and under
the act of 1920 it was proposed to
convert the plant to produce ammonium
sulphate, an ingredient of fertilizers.
He said in recent years the United
States had changed from importer to
exporter of ammonium sulphate, due to
increased production. ,..
The witness saw no necessity for in
creasing the production of ammonium
sulphate except that it might decrease
the price.
Senator Heflin pointed out that Ford
agreed to cut the price in half
Replying TO Senator Harrison. demo-
crat, Mississippi; the witness said
IL you changed Muscle Shoals to
produce something for. which it was
not constructed, it would necessitate
a large expenditure. estimated various
~ Under the Hooker plan. the gov
eminent pays everything. Under the
Utdily II uOIC Along
this line, the Ford company pays for
it," 5
~ COMPARES Four Bids
General Williams presented a. table
comparing four of the bids, first out
lining the method of comparison used.
The period covered has been limited
to so years following completion of
Dame No 2.
mo interest. simple or compound on
payment to the United States has been
computed.
The fertilizer agreements of the va
riOus offers are not compared because
there is no definite basis upon which
a comparison may be made. 1t should
be noted that in the case of the Hooker
plan and in the case of the Union
Carbide cempany's offer, should ferti-
lizer be made at loss, the loss will
fall upon the government and that
therefore the figures shown in the at
tached table will be reduced by that loss,
if any.
In dealing with Mr.. Ford's figures
there is deducted from the $5,000,0 900
that he would pay for the nitrate plants
the sum of $3.472, 4SS, since this sum
would be expended by the government
in building a new steam plant on the
Warrior river.
Plan Is DiSregarded
In establishing figures for Mr..
Hooker's offer, nothing is included for