Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1924-05-07
THE MUSCLE SHOALS PROBLEM

THE MUSCLE SHOALS PROBLEM
II tho Government were to put the
Muscle Shoals property in the con-
dition proposed in the Ford offer 1t
is estimated that 1t would cost the
taxpayers $216.000,000. II the Ford
offer were accepted the Government
would have invested only 1857, 000,-
900 so the Muscle Shoals project ir
either event will have cost the gov
eminent a pretty penny. Moreover
the Ford lease would run for 100
years and exceptions would have to
be made in regard to federal flaws
regulating water powers. Under
the Water Power Act it is provided
that leases for longer than fifty
years must be set aside.
As will be recalled, the Govern
ment set Nt to equip itself for the
manufacture Of the nitrates requir-
ed for explosives, and which by the
way are an important component OF
fertilizers required for our, lands.
Having this project incomplete on
it's hands when the war ended, the
question arose what to do with 1t.
No one, save possibly those looking
for 'pickings," wanted the Govern
ment to enter the business of manu-
featuring fertilizers and develop
ments in other enterprises in which
the government has had a hand
have deepened the conviction that
it' best keep out. On the other hand
the farmers felt they were being ex-
plotted for the foreign producer of
fertilizer and looked TO the Govern
ment for relief.
Here was partially completed
development of tremendous under
taking right in the heart of the
greatest power zone OF the South
and the possessor of it could control
n third of the South's undevelpped
power for the use of eighteen mil
lion people. Think of control of that
guaranteed to one man OF concern
for a period of 100 years. Yet the
South wanted Ford to have it, as
though he were likely to live for a
hundred years and his wisdom con-
troll its affairs. Every other man
WHO has risen like Henry Ford in
the accumulation and application of
capital has been thought a menace,
to put this in his hands. He had
them hypnotized. He did come for
ward with an offer when others held
back to pick up the fragments. but
he insists on the hundredyear lease.
He makes no personal promise to
Manufacture certain amount of
nitrates to sell at profit not ex-
ceeding eight per cent and the Gov
eminent is not secured. Under the
proposed lease he is not bound TO
forfeit IL he does not. nor are his
heirs .or assigns. This does not
mean that 1t is not his purpose to
du4 ALI that the conditions call for
but he cannot live for a century to
see. that this shall be done.
Comes now another bidder. the
Union Carbide Company, with an
otter of s12o.o00,o0o guarantee.
minimum. for a fifty-year lease of
the property and an agreement to
manufacture 10000 tons of fertilizer
annually. The plan is said to con-
template a manufacturing center at
Muscle Shoals and the sale OF
hydro electric power throughout the
south. In the words OF the presi-
dent OF the company. which with its
associates operates ninety-nine
factories and has 42S warehouses in
different parts Of the country, this
proposal Is to pay the Federal Gov
eminent for s0-year lease more
than the Government has invested
in the project and provide an
amortization fund so that at the end
Of the nifty years the Government
will have received return Of its in
vestment and will retain ownership
Of the Muscle Shoals properties.
There also Is provision under
which the Government may take
over the plant in war time on a I'VE
day notice.
This sounds well and the experts
should have an opportunity to look
for any flaws in 1t. As the Presi-
dent has pointed out. the Govern
nient and the people are concerned,
net so much for the money that has
been expended. as for assurance
that cheaper nitrates may be obtain
ed, for use In time Of peace In
fertilizers and in time Of war In ex-
plbsives. In his message to Con-
gress Dec. 8. 1923, he emphasized
this. It appears the process for
making nitrates has not been per-
fected SO that they may be sold In
competition with the present price
Of fertilizers. that long and costly
experimentation probably must be
had before this result may be at
tanned. Assurance that such ex-
perimentation will be carried on
should be required Of every bidder
who submits proposal. and
forfeiture follow on failure.