The Birmingham age-herald., 1924-03-21

I ferred by him. Will the liability assumed by him in section twenty-three be wiped out | or will it follow the securities or other ass sets, or will it follow the cash received by the people who sell them? The same question arises in the event of distribution Of his estate at his death by bequest, or otherwise. Suppose Mfr. Ford continue his present policy of distributing very little of his profits in dividends, and investing the remainder in his business. Suppose the present movement for high inheritance taxes should prevail and that his heirs upon his death find themselves seriously embarrassed to raise the cash re- auired to pay the inheritance tax: This might lead to the liquidation of his business, or to its transfer to other hands. Suppose that after his death, through less Efficient management, or through the development of some motor vehicle able to drive the present Ford car out of the market, the business of the Ford Motor Company should have to be liquidated. Would any responsibilities as sumed by Mir. Ford under section twenty
 three follow and devolve upon any. of the contingencies mentioned? One hundred years is long time, and much can happen in any such period. .,ts
 Under the terms of Mir. Fords offer, the company is required to complete Dam No. 2, that is, the Wilson Dam, and also Dam No. 8, for the United States at cost !. subse- quently, it must lease these dams and pay the United States four per cent. annually on the costs. Nothing is said about how the Fcost shall be determined, nor about the method of letting the. contracts.
 Experience abundantly shows that unless Fsuch matters are carefully safeguarded be- fore hand. there is likely to be endless trouble and misunderstanding. The way is wide open for rather sharp practice within thte limit of the law. 1t is assumed, of course, that in this case Mfr Ford has no s.An nf inc n,.kxf hs,n However. such unguarded agreements have, in many cases, given rise to charges of a very scandalous nature, even where there was no foundation for such charges in the facts. .'t. 5,s '
 If, as seems probable, the process for
 which Nitrate Plant No. 2 is adapted is already obsolete, but if the scrap. value of the two nitrate plants and associate proper ties is eleven million dollars, then the con tingency might be investigated :. that by scrapping these plants and realizing the eleven million dollars, another plant adapted to more modern methods might possibly be built for much less than the eleven million dollars. The entire purchase price to be paid to the United States by the company to tbe organized by Mir. Ford might conceivably be realized from such an operation. The
 possibilities along these lines, of course, would require expert investigation.
 As matters stand, it would be possible to I so manage things in connection with the con- struction of the dams, and of a possible new nitrate plant, that the United States would have furnished the. entire capital required both for the fixed investment and for work ing capital for rate of four per cent. per annum on only part of the total cost.
 If the Ford offer is to be accepted in ac-
 cordance with the recommendation of the majority, then the law ought to require the secretary of the treasury to take the amorti- zation payments provided for and actually invest them for the purpose for which they are intended Without such amendment, it is probable that these payments would go into the general fund of the treasury, and under such circumstances, the idea that they would ultimately make the United States whole on its investment at Muscle Shoals would be mere travesty.
 The bill recommended by the majority provides for the construction of a steam power plant to take the place of the Gorgas plant but the bill as drawn seems to over look the point which Mir. Ford will no doubt regard as essential that this plant when completed is to be transferred to him along with the nitrate plants, for total sum of five million dollars The bill does not spe- officially authorize this transfer. Without this, the transfer would probably be illegal.
 Finally, even supposing that the acceptance of this offer should result in the continuous manufacture of fertilizer and its sale at less than similar material would otherwise bring in the market, the question of what Mir. Ford will do with the rest of the power is one that lies entirely within his discretion. It is easily conceivable that the public, few years hence, may be seriously and indig-
 nnantly dissatisfied with the results The possibilities along these lines are too numer- ous to be mentioned in detail here. There 1 is nothing to prevent him from selling power to the Alabama Power Company if he sees l fit to do so.
 JOHN STEPHEN sEwELL.