The Birmingham age-herald. [volume] (Birmingham, Ala.) 1902-1950, 1924-05-06
WALDO REVEALS
/ POWER LIMITS
OF SHOALS PLAN
Manufacture OF Fertilizer
Held AS Most Benefit
cial Feature
WATER POWER ACT
CALLED DELUSION
Engineer Instills New
Hope In Minds OF
Ford Advocates
washington Bnreau)

washington Bnreaul
WASHINGTON, d. c., May g.
That those opposing the acceptance of
the Henry Ford offer for Muscle Shoals
were inspired either through selfishness
or ignorance of the real conditions, was
the inference drawn by the Senate com
mittee on agriculture from the testi-
mony Of w. G. Waldo, today.
The engineer in the service of the
Tennessee River Improvement associa-
ton showed that North Carolina and
South Carolina, crying for power, could
secure an abundance from the upper
stretches of the Tennessee; that Geor-
lgia, if awake TO its own possibilities,
would be Independent Of Alabama and
that if Muscle Shoals power was ulti-
mately distributed to its full capacity,
Louisiana would receive, as Its pro
rata share, a minimum and unservice-
able Quality. He declared, also, that
the Alabama Power company could
serve every consumer in its territory.
The witness predicted that with Ford
u
Edustrial city would be constructed.
Fertilizer Main Issue
But he said, sit would not be con-
Istructed as q result ~ innumerable in
dustries operated by electric power.
| 1t would be constructed with fertilizer
plants as its fundamental basis"
Mr.. Waldo repeated his former as
lsertion that Muscle Shoals would genl
lerate not $4,000 horsepower, but only
E241 800 of the dependable variety .sand
declared that after the demand for
lhigh-grade fertilizer at low cost had
! reached its limit, that power would not
suffice to eperate the Fertilizer plants.
THAT was one reason, according to
waldo, wiig Ford could not guarantee
Ito Distribute sarpIus power.
The witness made the assertion, and
bolstered it up with supreme court
opinions, that the federal water power
act was delusion if not a fraud in
that no property leased under its rules
could be recovered at the expiration Of
fifty years, and during the lease period
the government would have no regula-
tory power over rates to be charged.
Single Exception N
The single exception, according to
Waldo, was in cases where government
lands were concerned. Inasmuch as
Igoyernment lands are concerned at Mus
Gle Shoals, Ford would be amehable to
1.-THE federal water power act should he
| SO amend bis offer as to make that
act applicable, and thus such amend
ment would constitute discrimination
against Ford,
Various members of the committee,
including Senator's Norris and Rams
dell, were amazed at this contention,
and freely indicated determination, in
| the event that they are subsequently
convinced, to work for Improvement in
| the federal water power act. Much Of
the witness testimony was addressed
to Senator Randsdell. The Louisiana
democrat indicates a determination to
vote against the Ford offer because it
contains no guarantee that surplus
power would be distributed
One point made by Waldo was that
should it be proved possible to furnish
Louisiana with its quota of Muscle
shoals power, the actual saving to
residents Of Louisiana would be only
81 .OOO. 900; whereas if Louisiana's
| fertilizer bill should be cut in half. the
saving to Louisiana farmers would be
I$2,O00,000
There was sharp encounter be-
tween the witness and the chairman of
the committee as to the reasons
animating Ford in promising to dis
tribute power 200 miles in every direc-
ton from Muscle Shoals, whereas Ford
knew, from the opinion Of Waldo and
other experts, that every kil0watt Of
In 10 hn
sumed in fertilizer production.
Preliminary Surplus
the fertilizer demand reached it's height,
there would be surplus possible of dis
tribution and that he had in mind,
also, his intention of expanding $780,
600 COO in improving the upper reaches
of the river. Norris, however, inti-
mated a positive conviction that Ford
had sought to secure support from the
people Of the United States by a policy
Of premeditated deception.
Waldo has instilled new hope in the
breasts of Ford supporters. He has
created an entirely new atmosphere in
the committee chamber. He has en-
couraged those urging the acceptance Of
the Ford bid to believe that the COM
mittee cannot possibly be longer inn
pressed with the lugubrious stories Of
preceding witnesses, the selfish ambi-
ton Of the power trusts, or even the
persistent argument of ChalrmSa Nor
ris, advocating government ownership.
Waldo urged the committee to give
heed to the desire of the people in the
| immediate vicinity of Muscle Shoals
who knew the situation and their needs,
and proved from many sclenntlc ex-
amples that a contrary policy had fire.
qneptly resulted in great damage and
burdensome expense.
He win complete his statement to-
morrow.