The Birmingham age-herald., 1924-12-29
FERTILIZER HEAD BITTERLY PLAYS UNDERWOOD BILL Shoals Measure Would Ruin Nitrate Industry
 Says Ober PREDICTS PRICES
 WILL BE BOOSTED Government Plants Could Not Supply Whole
 Market, He Ayers
lBy Associated Press.l

WASHINGTON, Dec. 28. - The bill for the disposal of he government properties at Muscle Shoals, Ala, was assalled III sCSte- ment by Gustavus Ober, Jr., or Bal, timore, president of the Natlonal Fertilizer association, as threatening demoralization of the fertilizer ln- dustry. -
 Regarding Senator Underwoods crlti- cism of the association. the statement continued: "In connection with ms reading in the senate on December It of the association bulletin reporting to it's members the status of his Muscle Shoals bill ignores certain fundamental principles of justice and equity.
 sIn the first place the industry IS asking nothing of the government; at most it is engaged in an open effort to protect it's lawful interests against com petition which Mir. Underwood frankly ayows he would make possible, md continuously maintain, by a grant Of government property and what amounts to a bonus of government funds. The senator's purpose to diviert public assets to the use of private ownership that it may work grave injury to the property of other private citizens could be no more clearly stated than in his own words"
 The senator admits, the statement added, that the waterpower development could be leased for a rental of D per cent on the cost of the dam or approxl- mately $2,500,0O0 a year. Thus he pro yides what amounts to an outright cash bonus of $500,000 year to the pros- pectiye lessee, but this is not all any means.
 Cites Value Of Shoals -'- -----y
 'The Underwood bill would turn over a leasehold title for 50 years to physi- cal and personal property which cost the taxpayers $90,0O0,0OO, which mas a realizable value of more than $l0,OOO 900, and a replacement value of several times that amount. This property con sists of nitrate plants One and Two, with steam power plant at number two of S0,000 horsepower capacity. In ad- dition there are 48 miles of standard guage railroad track; 13 locomotive engines. large number of cars and railroad equipment; 312 permanent resi- dences equipped with every modern con venience including electric light, heating plants, running water, bath rooms, etc i; two large water filtration systems with storage reservoirs.
 "All of these assets become the abse lute property of the lessee as firmly as though he had fee title. For posses sion of such property during a period of 90 years, the life of the lease is the measure of it's natural use and exist ence. All of this property belongs to the government in which all citizens have an equal stake. Yet Senator Underwood calmly purposes to turn these assets over to favorable lessee together with the annual rental bonus of $500,000.
 Industry Nrenaced
 "1n return for these governmental gifts Senator Underwood's bill would require the lessee to produce annually 10000 tons of nitrogen which, he says, would be converted into 100000 tons of complete fertilizer. The annual pro- duction of fertilizer in this country is about 100000 tons. Thus the fertilizer industry is confronted with the possibi- lity of government subsidized competi- tion amounting to 30 per cent of the normal demand"
 Production of 100000 tons of fer tilizer year, Mir. Ober declared, as is proposed by Senator Underwood, "would not be enough to supply the entire de- mand, but would seriously disrupt the market" This fertilizer, he added, would have to be sold. and for any price it would bring, and it would dis place tonnage for which there is now more than adequate manufacturing equipment, causing demoralization in the industry"
 Such a condition, he continued, would be reflected in the aggravated credit and financing difficulties of fer tilizer manufacturers. The fertilizer industry represents an investment of more than $300,000,000 and any gov ernment action that impairs this invest ment is bound to have far reaching ef- fects that will cause curtailed produc- tion and enhance prices to consumers beyond the shipping radius of Muscle Shoals"
 The fertilizer industry, the statement said, is one of the few "whose prices to consumers are now at about pre-war levels" and the association feels enact ment of the bill would be an injustice to private citizens"
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