The Birmingham age-herald., 1924-12-28
HARRlSON'CTTES
 FERTILIZER NEED
fContinued From Page One. ]

Muscle Shoals for the farmer were heartened and encouraged by the re markable proposal of, Henry Ford, or fering as he did to operate the great government properties at Muscle Shoals at full capacity in the production or fertilizers for 100 years with profits limited to 8 per cent. Three years and eight months had passed and the great est offer that an individual ever made to his government had been attacked and maligned until finally in disgust It had been withdrawn. Eight days later this dispatch appeared in the "Wah Street Journal:
 Santiago, Chile-Henry Fords with drawal of his offer. to take over the Muscle, Shoals project has resulted ln a considerable boom in the Chilean nitrate industry. Chile is the greatest nitrate producer in the world; and the United States is her principal customer. With Ford in control of Muscle Shoals on an announced program Of making vast quant;ties of nitrate from the ar. Chilean producers saw ruin ahead or them. Nitrate shares in London rose from two to three points as soon as news of the withdrawal of the Ford offer was received"
 Chile Foresaw Result
 "No one knew better than the Chilean Nitrate Producers association what Henry Ford, with his uncounted mil lions, could do for the farmer at Mu- scle Shoals, but the man who brought the automobile to the American peo- ple. the man who has done more for the welfare of the humble farmer and who has been the greatest single influence in improving the highways of the United States in general tion, could not secure the acceptance of his offer. To- day the question is presented to the United States as to whether the Presl- dent will be authorized to lease the Muscle Shoals properties upon terms which are intended to secure, if pos sible. a part at least of the benefits which we all expected would come from the acceptance of the Ford offer or whether the work shall be carried on through government operation.
 ''The Underwood bill seeks to provide private operation under public -regula- tion and rigid restrictions. The con ditions are many, yet reasonable and gives the secretary of war, with the approval of the President, every oppor- tunity to protect the public interest to whatever extent, in addition to those directed in he legislation, they con slider necessary and if no private con cern is willing to undertake these op- erations and guarantee the operation of Nitrate Plant, No. 2, at full capac- ity, then the proposal provides for the operation of the plant by government corporation with $50,00O,0OO of capital under terms which will return to the government $30,000,0OO more than would have been paid even under the Ford proposal.
 Cites Gouge Charge
 Ut has been charged that under the Underwood proposal the Alabama Power company or some other power trust might obtain the lease and then gouge the power consumers by charging extortionate rates. But those who make this charge deliberately ignore the fact that the Underwood plan IS silent as to whom might make the lease, but expressly provides that who- ever obtains the lease and uses or sells the power not required for fertilizer must submit to regulations of the State Public Utility commission in whatever state he does business: If the power rates are too high, then the fault IS not with the Underwood plan, but with l the public service commission Ow the states.
 "The public interest is safeguarded
 under the Underwood plan and
 adequate opportunity is offered to
 private interests to lease the prOpot-
 
 take the risk and comply with the
 conditions that may be imposed and
 the provisions of the law.
 Personally, the governments oper- ation of these plants at Muscle Shoals holds no honorors for me. l have felt all along that the Ford proposal was the best that, had been made, and it would have been the wisest course to rursue to have accepted it, but that proposal is not now before us. and as reasonable and certain with all of its resultant benefits to the farmers and to the southland that would have come from the operation under the Ford bid any lessee under the leasing provisions of the Underwood proposal who com plies with the conditions will give to the south and to the nation just as great benefits and the government over 3C millions more in consideration.
 Little Surplus Power
 "The Underwood proposal, limits as it is to Dam No. 2, will supply little surplus power for sale. The Ford pro pOsal, and with but one exception, every other proposal for the lease or operation of Muscle Shoals, has included Dams No. 2 and No. 3. Experts say that il the two million tons of mixed fertil izers are manufactured at Muscle Shoals, it will require 257 ,OOO primary horsepower for 12 months in the year If the steam plant at Dam No. 2, to gether with the natural power de- veloped at both Dams No. and No. 8 are employed to their highest efficiency it will only amount to approximately 100000 primary horsepower. Without Dam No. 5, 1t will amount to 16O,O0( primary horsepower. Of course, thert will be some months in the year, say four months, when approximately 400, GOO additional secondary power can bt used. But secondary power is not valu able for subsequently, for industrial or lighting purposes, for the very gooC reason that it is not available for eight months in the year.
 T sympathize with those interests that desire to obtain from the develop ments on the Tennessee river hydro electric power, either to supply thu wants of their municipalities with cheaI power, or the use of it in industria developments. l want to see in tim, every available site on the Tennesset utilized for power development Whe1 that Is done, and the day will assuredly come, every market can be supplied ant an industrial awakening in the soutl will have come to pass.
 Outcome DebatabIe
 At this time it is difficult to pro phesY the outcome of nrnnosod lonisln